REGISTERED COMPANY NUMBER: 10612051 (England and Wales) REGISTERED CHARITY NUMBER: 1172517
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020 FOR BRANDON HOUSE LIMITED
BRANDON HOUSE LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 4 |
| Report of the Independent Auditors | 5 to 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Statement of Cash Flows | 10 |
| Notes to the Financial Statements | 11 to 15 |
BRANDON HOUSE LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
The Trustees who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31st December 2020. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charitable company's purposes, as set out in the Objects clause contained in the Company's Memorandum of Association are:
-
to advance the Akshar Purushottam Swaminarayan denomination of the Hindu religion based upon the teachings and principles of Bhagwan Swaminarayan; and to foster the practice and worship of the Akshar Purushottam Swaminarayan denomination of the Hindu religion as revealed by Bhagwan Swaminarayan;
-
preserve and safeguard the health of all persons and in particular of young persons who are in danger of becoming addicted to or dependent upon illegal drugs of any description, alcohol, solvents or other addictive substances; advance education for the public benefit;
-
promote community participation in healthy recreation so as to develop participants' physical, mental and spiritual capacities; and
-
for those purposes without prejudice to the generality of the foregoing, to allow other charities having similar objects to occupy any of its premises at nominal or market rent.
Our aims fully reflect the purposes that the Charity was set up to further.
The Charity seeks to meet its aims and objectives by periodically donating surplus funds to other charities which promote and deliver the same aims and objectives such as Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS) or to its parent charity, Nilkanth Estates, who share the same aims and objectives.
Achievements in the year
During the year, the Charity continued to receive rental income from the letting of its industrial units and provided part of its buildings at a peppercorn rent for use by BAPS for its charitable purposes which are similar to those of the Charity.
Reclassification of land and buildings for mixed use
The Trustees reviewed the accounts of the Brandon House Property at the year-end. They reassessed the presentation to better describe the use of this property as a mixed-use asset used for both operational and investment purposes as set out in Charity SORP para 10.47 (see Note 7 and Note 8 below). The element which is used for charitable purposes, being 20% of the total floor space of the property, has been reclassified as a tangible fixed asset and recognised at cost, in line with the SORP. The investment part of the property has been recognised at year-end fair value. As the change in presentation occurred at the year-end, this element of the property will not begin to be depreciated until 1 January 2021.
Impact of Covid 19
Despite the lockdown and restrictions imposed on the Charity as a result of the Covid-19 pandemic, the Charity did not suffer significantly from loss of income from its investment property despite having given a rent concession to the tenant till 31 December 2021 to assist them with disruptions to their business as a consequence of the pandemic. Businesses generally have been given such temporary concessions and with the nation coming out of the pandemic, business is returning and full rents resumed.
BAPS, were prohibited from holding congregations during the pandemic, however, expect to resume activities as restrictions are eased. Governance of the Charity by its Trustees was not impacted.
Page 1
BRANDON HOUSE LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
Ensuring our work delivers our aims
We review our aims, objectives and activities on a yearly basis. This review looks at what we achieved and the outcomes of our work in the current period and to continue the review on an ongoing basis. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.
Volunteers
Volunteers are an important resource for the Charity and are involved in all of our activities. The Trustees also give their time freely.
FINANCIAL REVIEW
Financial review
The Statement of Financial Activities (SOFA) shows net incoming and outgoing resources for the year.
During the year, the Charity had a net (deficit) before gain on revaluation of investment properties of (£2,343) (2019: surplus £5,430).
As at the balance sheet date, the Charity has net funds of £3,237,690 (2019: deficit (£278,636)).
The deficit for the year arose as a result of the rent concession to tenants during the pandemic referred to above. Full rents will be received from 1 January 2022. In addition, from 1 January 2021, Nilkanth Estates, the Charity’s parent, has agreed to waive interest charges on its loan to the Charity since the premises are used for charitable purposes. The Charity is therefore expected to have surplus funds annually thereafter.
The Charity is supported by its parent, Nilkanth Estates, which has surplus unrestricted funds of £83m at 31 December 2020 and, therefore, these financial statements have been prepared on a going concern basis.
Principal funding sources
The Charity's activities are mainly financed by funds raised through rental income, voluntary donations and financial support from its parent, Nilkanth Estates.
Reserves policy
The Trustees review the Reserve Policy annually. Their policy is to hold sufficient cash reserves to meet the operating costs of the Charity which are minimal and in respect of premises costs of the property used by BAPS for charitable purposes. Surplus funds from donations and rental income are accumulated and used for the furtherance of the Charity's objectives.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
Brandon House Limited is a registered charity (number 1172517) under the Charities Act 2011 and is a charitable organisation incorporated in England on 9 February 2017 as a company limited by guarantee under Company number 10612051.
The Charity is controlled by its governing document, Memorandum and Articles of Association.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 10612051 (England and Wales)
Registered Charity number
1172517
Registered office
104 College Road Harrow HA1 1BQ
Page 2
BRANDON HOUSE LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
Trustees
Mr K Bhattessa Hotelier Mr Y M Patel Company Director Mr V H Patel Retired (stood down 26.09.2021) Mr J M Patel Company Director Dr M R Shah Doctor
There are 5 Trustees and they have responsibility for meeting the obligations of the Charity.
All Trustees give their time voluntarily and receive no remuneration or benefits from the Charity. As the Trustees are the key management personnel of the Charity and are not remunerated, there is no remuneration policy for key management personnel.
Under the requirements of the Articles of Association of the Charity, the current Trustees may appoint new and additional Trustees, (subject to a maximum of five Trustees at any time) by passing of a resolution at a Trustees’ meeting. Each trustee shall hold office for an initial term of three years, renewable by re-appointment for further terms of three years. Existing Trustees may propose the appointment of new Trustees, however, any such appointment requires approval by BAPS India.
Subject to article 20A, the Trustees may appoint new and additional Trustees by a resolution of the Trustees passed at a Trustee meeting. These individuals work alongside existing Trustees for a period of three years before being considered for appointment. Ongoing training is received by the Trustees through attendance at courses and being provided with relevant information from various resources, as required.
Auditors
MHA MacIntyre Hudson Sixth Floor 2 London Wall Place London EC2Y 5AU
Page 3
BRANDON HOUSE LIMITED
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Trustees (who are also the directors of Brandon House Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
-
there is no relevant audit information of which the charitable company's auditors are unaware; and
-
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, MHA MacIntyre Hudson, will be proposed for re-appointment at the forthcoming Annual General Meeting following their appointment during the year..
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of Trustees on 30 September 2021 and signed on its behalf by:
............................................. Mr J M Patel - Trustee
Page 4
BRANDON HOUSE LIMITED
REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2020
Opinion
We have audited the financial statements of Brandon House Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report.
We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Trustees’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included critical reviews of expected investment income and assurances provided by the charitable company’s parent company, Nilkanth Estates, to provide financial assistance should it become required.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Page 5
We have nothing to report in this regard.
BRANDON HOUSE LIMITED
REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2020
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ report (incorporating the Directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Directors’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Directors’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Directors’ report and from the requirement to prepare a strategic report.
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement included in the Trustees’ Annual Report, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
-
Enquiry of those charged with governance concerning any instances of known or suspected instances of fraud;
-
Enquiry of those charged with governance concerning actual and potential litigation and claims;
-
Enquiry of those charged with governance concerning any instances of non-compliance with laws and regulations;
-
Reviewing the control systems in place and testing the effectiveness of the controls;
Page 6
BRANDON HOUSE LIMITED
REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2020
-
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
-
Reviewing minutes of meetings of those charged with governance;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.
Use of this report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sudhir Singh FCA (Senior Statutory Auditor) For and behalf of
MHA MacIntyre Hudson Statutory Auditor London, United Kingdom
Date: 30 September 2021
Page 7
BRANDON HOUSE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure account) FOR THE YEAR ENDED 31ST DECEMBER 2020
| 2020 Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 4,389 Investment income 3 266,668 Total 271,057 EXPENDITURE ON Raising funds 4 5,053 Provision of facilities 13 268,347 Total 273,400 NET (EXPENDITURE)/INCOME (2,343) Gains on Revaluation of fixed assets 12 3,518,669 RECONCILIATION OF FUNDS Total funds brought forward (278,636) TOTAL FUNDS CARRIED FORWARD 3,237,690 |
2019 Total funds £ 67,151 311,484 378,635 109,923 263,282 373,205 5,430 - (284,066) |
|---|---|
(278,636) |
The notes form part of these financial statements
Page 8
BRANDON HOUSE LIMITED
Registered Company Number: 10612051
BALANCE SHEET AT 31ST DECEMBER 2020
| 2020 Unrestricted funds Notes £ FIXED ASSETS Tangible Assets 7 1,720,000 Mixed use assets/ Investment property 8 10,000,000 11,720,000 CURRENT ASSETS Debtors 9 188,028 Cash at bank 624,446 812,474 CREDITORS Amounts falling due within one year 10 (81,533) NET CURRENT ASSETS 730,941 TOTAL ASSETS LESS CURRENT LIABILITIES 12,450,941 CREDITORS Amounts falling due after more than one year 11 (9,213,251) NET LIABILITIES 3,237,690 FUNDS 12 Unrestricted funds 3,237,690 TOTAL FUNDS 3,237,690 |
|
|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees on 30 September 2021 and were signed on its behalf by:
............................................. Mr J M Patel -Trustee
............................................. Mr K Bhattessa -Trustee
Page 9
The notes form part of these financial statements
Page 10
BRANDON HOUSE LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Notes Cash flows from operating activities: Cash generated from operations 15 Net cash provided by (used in) operating activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period ANALYSIS OF CHANGES IN NET DEBT |
2020 £ 300,649 300,649 300,649 323,797 624,446 |
2019 £ 165,359 165,359 165,359 158,438 323,797 |
|---|---|---|
| Cash at bank and in hand Debt due after one year |
As at 01 January 2020 £ 323,797 (8,944,904) (8,621,107) |
Cash flows £ 300,649 (268,347) 32,302 |
As at 31 December 2020 £ 624,446 (9,213,251) |
|---|---|---|---|
| (8,588,805) |
The notes form part of these financial statements
Page 11
BRANDON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Going Concern
The Charitable Company had net funds amounting to £3,327,690 (2019: deficit £278,636) at year-end. The Directors have assessed the going concern risks to the Charitable Company and have concluded that:
-
financial projections indicate that the Charity will continue to meet its liabilities as they fall due over the next twelve months from the date of approval of these financial statements.
-
The Charity’s parent undertaking, Nilkanth Estates, has confirmed that if required, it will make available such funds as are needed by the Charitable Company for the period covered by the forecasts.
These forecasts are based on full rents resuming after the temporary concession due to the pandemic, as well as the agreed waiver of loan interest from 1 January 2022 by Nilkanth Estates on its loan to the Charity.
Although measures are being taken by the UK government to ease the lockdown restrictions, the duration and impact of the COVID-19 pandemic remains unclear at this time. Therefore it is not possible to accurately estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Charitable Company in the short or long term. However, this is not considered to constitute a material uncertainty regarding going concern.
Income
All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Rental Income
Rental income from operating leases (net of any incentives given to the lessees) is recognised on a straight-line basis over the lease term.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible Fixed assets
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Freehold buildings: 2% on cost
Freehold land is not depreciated.
Page 11
BRANDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020
1. ACCOUNTING POLICIES - continued
Mixed Use Assets
Property held for a combination of financial return and contribution to the Charity’s purposes is classified as mixed use assets.
Under FRS102, the element of the asset held for financial return requires revaluation at year-end fair value.
Taxation
The Charity is exempt from corporation tax on its charitable activities.
Accounting estimates and judgements
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period to which they relate .
Covid-19 has had no impact on any accounting estimates and judgements.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Concessionary loans
Loans which have been taken out with an interest rate below the market rate and for charitable purposes are deemed as concessionary loans.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. DONATIONS AND LEGACIES
| Donations Donated services and facilities 3. INVESTMENT INCOME Rents received |
2020 £ 4,389 - 4,389 2020 £ 266,668 |
2019 £ 64,400 2,751 67,151 2019 £ 311,484 |
|---|---|---|
Page 12
BRANDON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020
4. RAISING FUNDS
Investment management costs
5.
| Rates Gas Repairs and maintenance Insurance Bank charges Sundries Electricity Audit fees NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Auditors' remuneration |
2020 £ (10,351) 305 275 2,650 33 13 7,928 4,200 5,053 2020 £ 4,200 |
2019 £ 132,093 2,204 (40,000) 2,650 63 113 12,800 - 109,923 2019 £ 2,751 |
|---|---|---|
Net income/(expenditure) is stated after charging/(crediting):
6. ANALYSIS OF STAFF COSTS, TRUSTEES' REMUNERATION AND BENEFITS
The Charity is managed and operated by its Trustees and there are no employees.
All Trustees give their time voluntarily and receive no remuneration or benefits from the Charity.
There were no Trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
7. TANGIBLE FIXED ASSETS
| COST At 1st January 2020 Reclassification At 31 December 2020 |
Freehold buildings £ - 1,720,000 ------------- 1,720,000 |
|---|---|
The Trustees reviewed the classification of their Brandon House property at the year-end. They reassessed the presentation to better describe the use of this property as a mixed use asset used for both operational and investment purposes (see Note 8 below) as set out in Charity SORP para 10.47. The element which is used for operational purposes, being 20% of the total floor space of the property, has been reclassified as a tangible fixed asset and recognised at historic cost, in line with the SORP. As the change in judgment occurred at the year-end, this element of the property will not begin being depreciated until 1 January 2021.
Page 13
BRANDON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020
8. MIXED USE ASSET/ INVESTMENT PROPERTY
| FAIR VALUE At 1st January 2020 Reclassification to tangible fixed assets Revaluation At 31stDecember 2020 |
£ 8,201,331 (1,720,000) 3,518,669 10,000,000 |
|---|---|
The Trustees reviewed the classification of their Brandon House property at the year-end. They reassessed the presentation to better describe the use of this property as a mixed use asset used for both operational (see Note 7 above) and investment purposes as set out in Charity SORP para 10.47.
The Trustees also reviewed the fair value of the element of the asset which is used for investment purposes at the year-end, in line with SORP requirements. Following an informal valuation from a RICS-accredited property advisor, and trustee consideration of current market factors the fair value of the proportion of the building let commercially had increased to £10m. This gain in value has been recognised in the SOFA.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors |
2020 £ 21,727 166,301 188,028 |
2019 £ 46,825 166,301 213,126 |
|---|---|---|
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Other creditors Accrued expenses |
2020 £ 10,429 66,904 4,200 81,533 |
2019 £ - 66,845 5,141 71,986 |
|---|---|---|
11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Concessionary Loans | 2020 £ **9,213,251 ** |
2019 £ 8,944,904 |
|---|---|---|
The Charity's parent charity, Nilkanth Estates, provided a loan to the Charity of £8,201,331 in 2017 for the purchase of the Charity's Brandon House property and to further both entities' charitable objectives.
The loan: incurs interest at 3% per annum, which is considered below market rate; is secured against the property; is repayable on demand, though the parent charity has provided assurances that it will not be repayable until at least one year from 31 December 2020. Nilkanth Estates has agreed to waive interest charges on its loan to the Charity since the premises are used for charitable purposes.
Page 14
BRANDON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2020
12. MOVEMENT IN FUNDS
| Unrestricted funds At start of the year Incoming resources Resources expended Impairment provision Gain on revaluation of fixed asset investments At end of the year |
2020 £ (278,636) 271,057 (273,400) - 3,518,669 ___ 3,237,690 |
2019 £ (284,066) 378,635 (373,205) 5,430 - ___ (278,636) |
|---|---|---|
13. RELATED PARTY DISCLOSURES
Included in Creditors is a Concessionary loan received from Nilkanth Estates, a registered Charity with common Trustees/Directors and also being the sole member of this company. The total loan at 31 December 2020 is £9,213,251 and includes £8,201,331 for the purchase of the investment property held by the Charity together with rolled-up interest at 3% per annum. The loan is repayable on an indeterminate period. The Concessionary loan has been provided by the Charity as Brandon House uses part of the property for charitable purposes.
| Loan principal Interest accruals of earlier periods Interest charge for the current period Balance payable to Nilkanth Estates |
2020 £ 8,271,331 673,573 268,347 9,213,251 |
2019 £ 8,271,331 413,042 260,531 8,944,904 |
|---|---|---|
The Charity received unrestricted donations of £4,389 during the year (2019: £35,000 of rental income) from Beddington Conference Centre Limited. Mr V H Patel, a former trustee of the Charity, is also director of Beddington Conference Centre Limited.
14. ULTIMATE CONTROLLING PARTY
The company is a company limited by guarantee and the sole guarantor is Nilkanth Estates (Reg. Charity no.1148431). The latter is incorporated and registered in England & Wales.
Consolidated financial statements of Nilkanth Estates are available online at the Companies House website.
15. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Interest payable Decrease/ (Increase) in debtors Increase/(decrease) in creditors Net cash provided by operating activities |
2020 £ (2,343) 268,347 25,098 9,547 300,649 |
2019 £ 5,430 260,531 (16,378) (84,224) 165,359 |
|---|---|---|
Page 15