REGISTERED COMPANY NUMBER. 10612051 (En¢yland and Wales) REGISTERED CHARITY NUMBER.. 1172517 REPORT OF TIIE TRUSTEES AND FtNANCIAL STATEMENTS FOR TEIE YEAR ENDLD 31 ST DECEMBER ?021 FOR BRANDON HOUSE LIMITED
BRANDON HOUSE LIMtTED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER ?021 Page Report of the Tru5rees to4 Report of the Independ¢nt Auditors 5t07 Siatement of Financial ActivitTes Balan¢¢ Sheet Staten)ent of Cash Flow$ 10 Notes to the FInCIal Stat¢m¢nts 11 to 16
BRANDON HOUSE LIMITED REPORT OF THE TRUSTEES FOR THE YEARENDED 31ST DECEMBER2021 The TThteeS who ar¢ also directors of the Charity for the purposes of the Companies Act 2006. present their report with the financial stsiements of th¢ Charity for the year ended 3 1st Dec¢mb¢r 20? l. The Tnjstees have adopted the provisions of A¢¢ounting Reportints by Chariti¢s- Statement of Recommended Practice app12rable to charities preparing their accounts in ac¢ordance with the Financial R¢portino Standard applicable in the UK and Republic of Ireland (FRS 10?). OBJECTIVES AND ACTIVITIES Objectives and aims The ¢haritable companys purposes, as 5¢t out in the Objects clause contained in the Company's Mernorattdum of Association are: to advance the Akshar Purnshottam Swaminarayan dengmination of the Hindu religion based upon the teachinu5 and principles of Bhagwan Swaminarayan,. and to foster the Pfdciice an£f worship of the Akshar PuThshottam Swaminarayan denomination of th¢ Hindu religton as revealed by Bhattwan Swaminarayan; preservt and safeguard the health of all persons and in particular of young persons who are in danger of becomin addicted to or dependent upon illegal drugs of aTLy descriptio alcohol. solvents or other addictive substances. advance edueation for the public benefit,. 3. promote cotnmunity participation in healthy recreation so as to develop participat)ts' physical, mental and spiritual paciti£s,' and 4. for thos¢ purp05¢s without prejudice to the generality of the ftsregoing, to allow other charilie5 having SiEllilar objects to occupy any of its pr¢mise5 at nominal or marLei rent. Our aims fully reflect the purposes that the Charity was set up to further. The Charity seeLs to meet its aims and objectives by periodica]ly donating surplus funds to other charities which promote and deliverthe same aims and objectives such as Bochasanw&si Shri Ak'shar Purushott¢&m Swaminarayan SpAnStha (BAPS) or to its parent ¢harity, Nilkanth E$taks, who share the same aims and objectives. Achievements the yegr 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 pepperconi rent for use by BAPS for its charitable PUTposes which are 5Lmitsr to those of the Clwity. Imp#et of Covid 19 Despite the lockdow) and r¢striciions imposed on the Charity as a result of the Covid-19 pandemic, th¢ Charity, did not suffer significantly from Ioss of incoTre from its investment property despite having ¥iveD a rtnt COnCeSSlDn to the teraaTrt till 31 DeceEnb¢r ?O?I to &55isI them with disruptions kn ihesr business as a consequen¢e of the pandemic. Businesses gentrally have been ssven such temporary concessions and with the Dation Coming out of the p2nd¢mic, business is returning and full rents resumed. BAPS, w¢re prohibit¢d from holding congregations during the pandemic, however. expect to resume activities as restrictions are ed. Governance of the Charity by its Trustees w&8 not impacted. Ensurxng our work delivers our aims We reTriew our aims, objectives and activities on a yeuly basis. This revi¢w looks at what we a¢ELi¢ved and the outcomes of our work in the current period and to conrinue the review on an onuoing basi5. The review looks at the succ¢ss of ¢a¢h key artivity and the benefits they have brouJu t to those groups of people we are s¢t up to help. Th¢ r¢vi¢w also helps us ensure our aim, obj¢¢tiv¢s and adiviti¢s remain fo¢u5¢d on our stated purposes. 'We have refetTed to the guidan¢e contaEned in the Charity Commission's general guidance on public benefjt when reviewinty our aim and objectivLs and in planning our fijture activities. In particular. the Trustees consider how planned activilie5 will contribute io the gLims and objectives they have sei. Volunteers Volunteers are an important resovr¢e for tht Charity and are involved in all of our activities. The Tnwees also give their time fr¢¢ly. Page I
BRANDON HOUSE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 3 1ST DECEMBER ?0? I FINANCIAL REVJEW Financial review The Statement of Financial Activities (SOFA) shows nei incoming and outgoing resources for the ye3T. During the year, the Clwiry had a net income before gain on revaluation of investment properties of £226.6811?O?o'. deficit £2,)4il. As at the balance Sheet date, the Charity has net funds of £3,464,373 (90?0: £3 ?37,690)- Durinu the yearthe Charity had n¢t income. The net expenditure (before gains on r¢valu2tion ofnet assets) inthe previous year arose as a result of the rent concession to tenants during the pIdeiC ref¢ed to dbove. Full rents are received fro l January 209? The Charity is supported by its parent. Nilkanth Estates. which has surplus unrestricted funds tsf £83m at 31 December 209 l and, th¢r¢f(pre. these financial statements have been prepared on a going concem basis. Pritheip21 fundin£ sourees The Charity's activiues are mainly financed by fijnds raised through rental income. voluntary donations and financial support from its parenL Niikanth Estates. Reserves policy The Ttustees review the Reserve Policy annually. Their policy is to hold sufficient ¢a5h reserves to m¢¢t th¢ op¢ratin- costs of the Charity which are minimal and in r¢spect of premises costs of the property used by BAPS for charstable purposes. Surplus funds from donations and rental income are accumulated and used Aor the fvrtheranc¢ of the Charity's objectives. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing do¢um¢Dt Brandon l.louse Limited is a regiered Chiry (numb¢r 117?517) under the Charities Act 2011 and is a charitable organisation in¢orporated in England on 9 F¢bruary ?017 as a company limited by guarAniee under Company number 1061?051. The Charity is ¢ontrolled by its ooverning documenL Memorandum and Articles of Association. Page 2
BRANDON HOUSE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 3 1ST DECEMBER 20?1 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 10612051 (England and Wal¢s) Registered Charity number 1172517 Registered office 104 College Road Harrow HAI IBQ Tru5t¢es Mr K Bhatte5sa Mr Y M Patel Mrv H Patel Mr J M Paiel DrMRShah Hotelier Company Director Retired (stood down 14.04.20??) Coinpany Direcror Doctor There are 5 Twtees and they have responsibiliry for meeting the obligation5 of the Charity. All Trustees give their time voluntsrily 2nd receive no remuneration or benefits from the Charity. As The Trusiees ar¢ the key manatsernent ptrsonnel of the Charity and art not remunerdted, there TS no remuneration policy for key managemeni p¢rs()nn¢l. Underthe requiremcnts ofthc Articlcs of Association of the Charity, the current Trustees may appoint new and additional TNstres. {subject to a mLYimum of five Trustccs at any time) by passing of a resolLtion at a Trnstees, meeting. F.2ch wtee shall hold offi¢e for an initiaI terni of three years, renewable by re-app(Trintment for fi]rthcr ternis of threc years. Ex2Sting TnEStees may propose the appointment of new TNstees, however, any such appointment requires approval by BAPS India. Subject tts arttcle ?OA, the Trustees rnay appoinl n¢w arAd additional Trustees by a resolution of the Trusiees passed at a Trnstee meeting. These individuals work alongside existing Trustees for a period of three years before being considered for appointment. Ongoing training is received by the Trnstees through attendance ai courses and being provided with relevant infornhation from v2riolls resources. 85 r¢quired. Auditors MHA macInt Hudson Sixih Floor 2 London Wall Place London EC?Y SAU
BRANDON HOUSE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ST DECEMBER ?021 STATEMENT OF TRUSTEES RESPONSIBILITIES The Tnjstees (who are also the dir¢ctor5 of Brandon Hous¢ Limited for the pury)oses of company law) are respon5ibl¢ for preparing ihe Report of the Trustees and the finan¢ial statements in a¢cordanc¢ with applicabl¢ law and Unit¢d Kintsdom Accounting Standards Iuniied Kintsdom Gen¢rally Ao¢¢pt¢d Accountinu Prartic¢l. Company law requires the Trustees to prepare financial statements for each financial year which tsive a true and fair view of the state of affairs of the ¢haritable company and of th¢ in¢oming r¢sources and application of resources, includin(T the incom¢ and ¢xp¢nditure, of the ¢haritabl¢ company for that p¢riod. In preparinu thos¢ finan¢ial statements. the Trustees are required to.. select suitsble accountin policies and then apply them consi5t¢ntly' observe the method5 and principle5 in the Charity SORP- make judgements and estimaies that are reasonable and prndent. prepare the financial staiements on ihe going con¢em basis unless it 15 inappropriat¢ to presume that th¢ charitable colnpany will continue in business. The Trust¢¢s are r¢5pon5ibl¢ for k¢¢ping ad¢quate accounting r¢¢ords which di5¢105e with rea50nable accurdcy at any time the fIn¢saI position of the charitable company and to enable them to ensure that the financial statemenis comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable sieps for (he prevention and detection of fraud and other irregularities. In $0 far as the Trustees are aware= there is no relevant audit inforniation of which the charitable company's auditors are unaware- and th¢ Trustees have tak¢n all steps that they ouuht to have taken to make themselves aware of any r¢levant audit inforniation and to establish that the auditors are aware of that inforniation. AUDITORS The auditors, MHA MacTntyre Hudson, will be proposed for re-appointment at the forth¢oming Annual Generdl 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 t(Tr Stnall companies. Approved by order of the board of Trustees on and Sied on its behalf by- Patel- Tnree Page 4
BIi4NDON HOUSE LIMITED REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER ?O?I Opinion We have audited the f]nancial statements of Brandon House Limited (the 'eharitable company,) for the year ended 31 December 20?1 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 sionificant accounting policies. The f]nan¢i&l reporting framework that has been applied in their preparation is applicable law and United Kin(rdom Accountino Standards, in¢ludinw Finamcial Reptrrting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generdlly Accepted Aecounting Practice). In ow opinion the financial statements: give a true and fair view of the stste of the charitable company's affairs as at 31 Dectber 2021, arjd of its incoTning resources and application of resources. includino its incom¢ and expenditure, for the )'ear then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted A¢¢ounting Pradi¢¢' and have been prepared in accordante with th¢ r¢quirements of the Companits Act 2006. BaSLS for opinion We conducted our audit in accord3ncc with International Stsndards on Auditing (UK) (ISA5 IUK)) and applicable law. Our responsibilities under those standards ar¢ fih¢r described in the Auditor's Responsibilities for the audit of the financial sra(ements section of our report. W¢ are independeni of the charirable company in accordance with th¢ ethiral requireI¢ntS that are rel¢vant to audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fvlfilled our other ethical responsibilities in accordance thith these requirements. W¢ beli¢ve that the audit evidence we have obtained is sufficient and appropriate to provide a bES for our opinion. Conclusions relating to goinz tonetrn In avditiniy the financial statements. we have concluded that the Trustees, use of the troino concern basis of accollntin(T in the preparation of the financial statements is appropriat¢. Our evaluation of the Trustees, $t$Sment of the entity's abiliry to Gontinu¢ to adopt the going conc basis of ac¢ounting included Critical reviews of expected investment noome and assuran¢es provided by the charitable company's parent Company, Nilkanth Estates, to provide financial &ssistan¢¢ should it be¢om¢ required. Based on th¢ work w¢ have perfornied, we have not idenrified any mat¢rial uncertainties relating to events or ¢ondÈrions that, individually or eollectively, may cast sittllificant doubt on the charitable CLimpany's ability lo continue as a going concern for a period of ai least nv¢lve months from when Ihe finan¢ial statements are authorised for issue. Our responsibiliti¢s and the responsibilities of th¢ TN5te¢s with resp¢ct to going con¢wf¢ are described in the relevant sections of this report. Other information The Trustee5 are r¢sponsibl¢ for the other information. The other infomlation comprises the inf0mtion included in the annual report, other than th¢ finan¢i#l 5tatem¢nt5 and our auditor's r¢port thereon. Our opinion on the finon¢ial statements does not cover the oiher inforniation and. except to the extent otherwise explicitly stated in our repon. we do noi express any forni of assurance Conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomation and, i1A doino so, consider whether the other inforniation is materially inconsistent with the financial statements or our knowledcTe obtsined in the audit or otherwise appears lo be m4t¢riaIly misstated. If we idcntity such material inconsistencicb or apparent material misstatem¢nts, we are required to deterniine whether there is a maierial missraiemeni in the financial statements or 2 material niisststement of the gth¢r infomkiion. Jf. based on the work Nve have perfomled. we conclude that there is a material misstaiemenc of this other iAfornYdtion, we ar¢ qUired io repoi fhat fa¢t. We have Thothing to report in this regard. PagE 5
BRANDON HOUSE LIMITED REPORT OF THE tNDEPENDENT AUDITORS FOR THE YEAR ENDED ) l DECEMBER ?O?I Opinions on other matters prescribed by the Companies Aet 2006 In our opinion, based on the work undertaken in the course of the audii: the inforn)ation given in the Tst¢es, report (incorporating the DectorS, r¢ponl for the financial year for which the financial staiemettts are prepared is consistent with the financial statements,. and the Directors, report has been prepared in accordance with applicable leryal requirements. M2tt¢r$ on which Trve are required to report by exception In the liDht of our knowledge understanding of the charirable company and its enTrironment obtained in the Course of rhe audiL we have not identified material misstatements irj the Diredors. report. We have no(hing (o rewrt in respeei of the following matters in relation to which the iompani¢s Aa 9006 requires us to repon to you if, in our opinion.. adequaie accountintr records have not been kept. or returns adequate for our audii have not been received from branches not visiied by us. or the frnancial statem¢nts are not in agreement with the accouniintt records and returns. or certain disclosures of Directors, remuneration sp¢¢ifi¢d by law not made. or we have not received all the infomjation and ¢xplanations we require for our audit. or the TnteeS were not entitlcd io prcparc the financial statements in accordance with the sinall companies, regime and take advantatre of thc small companies, exemptions in preparing the Directors, report kmd from the requirement to prepare a strategic report. R¢sponsKbilities of Trustet5 A5 explained more fully in the Trustees, responsibilities stat¢ent included in th¢ Trust¢¢s' Annual Report, Ihe Ttustees (who are also the Directors of the clwitable company for th¢ purpos¢s of company law) are responsible for the preparation of the fuwicial statements and for being satisfied that they give a true and fair view. and for such internal CQntrol as th¢ Trust¢¢s dctermine is necessary to enable the prepardtion of financial statements that are free frojn material misststement, whether due to fraud or eor. In preparing the financial srat¢ments, the Trnsiees are responsible for assessino the charttable company's ability to Continue ¥ a goin(r wn¢¢rn, disclosin(r as applicabl¢, matt¢rs related to goi con¢¢rn and Usin th¢ OIng ¢on¢¢rn basis of a¢cOLtIng unl¢ss the Tru5teES either intend to liquidate the charitable company or to ce&se operations, or have no realistic altemaiive but to do so. Auditor's nsponsibilities for the audit of the financial ststements Our objectsves are to obtaiti reasonable assurance about whether th¢ firLincial 5tattments as a whole are frec fro aterial misstatement, whether due to fraud or error, and to issue an auditor'5 report that includes our opinion. Reasonable assurance is a hitsh level of suranc4 but 15 not a gUatee that an audit conducted in a¢cordance with ISA5 IUK) will always detect a rnaterial fflisstatement when it exists. Misststemenis can arise from fraud or error and are consid¢r¢d mat¢rial if, indsvidually or in the aggregate, they could reasonably be expected to influence the economic de¢is5ons of users taken on th¢ basis of these f]nancial stateentS. IrrEgularities, including fraud, are instsmces of non-compliance wilh laws and r¢gulations. We desiJ pro¢¢dure> in line with our responsibiliti¢s, outlined above, io deteth material missiatements in respect of irregularities, in¢luding fraud. The spetific procedures for this engagement and the extent (o which these are capable of dete¢iing i¢[1arltics, including fraud is detailed below.. Enquiry of those charged with govemance concerning any instances of Known or suspe¢ted instsnoes of Enquiry of rhos¢ charg¢d with governan¢¢ ¢on¢¢ming actual and potential litigation and claims,. Enquiry of those charged with uovernanc¢ conc¢rning any instances of Elon-compliance with laws and regulations; R¢viewintt the control systems in place and testing the effectiveness of th¢ ¢tsntrols- Page 6
BIL4NDON HOUSE LIMITED REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 3021 P¢rforming audit work over the risk of management ov¢rrid¢ of controls, including testing of journal entries and other adjustmenÉ8 for appropriateness. evaluating the business rationale of significant transadions oulside the nornial course of business and reviewing iccounting estimates for bia5. Reviewing minutes of mtetings of those ¢harg¢d with governance. Reviewing financial statement disclosures and testing to supporting documentation to #ssess compliance Ith 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 leadino to a Tnaterial misstatement in the fancial siatements or non-cornpliaD¢e wilh regulaiion. This risk increases lh¢ more ihat compliance with a law or regulation is removed from the events and trar.sactions r¢fle¢ied in the financial statements, ¥ w¢ will be less Iskely to become aware of instances of non4ompliance. The risk is also greater retsardints iryegularitie5 occurrÈng due to fraud rath than error. as fraud involves intentlollal cor.cealment, forgery, collusion, omission or misrcpresenlation. A fi]rth¢r description of our responsibilitie% for the audit of the ftnancial statem¢nts is located on the Financial Reporting Council's website at.. httpS:l/wwv.frc.org.u0Ur-worKAudiVAudIE-dnd-LcSUranc51StandardS-and- guidancelStandard5-and-guidance-for-auditorslAuditors-responsibilities-for-audiVDescription-of-auditors- re5ponsibilities-for-audit.a5px. This description fom)s part of our auditor's report. Use ofthis report This report j5 made solely to the charitable company's members, as a body, in a¢ctsrd&nce with Chapter 3 of Part 16 of the Cotnpanie5 Act 2006. Our audit work has been undertaken so that we might state to the charitable company's membets those Tnatters we are r¢quired to srate to them in an auditor's report and for no other putpose. To the tullest extent perniitted by law, we do not accept or assulne responsibility to anyone other than the chariiable company and the charitable company's members as a body, for our audit work, for this repory or for the opinions we have formed. Sudhir Singh FCA (Senior Statutory Auditor) For and behalf of MHA MacIntyre Hudson Statulory Auditor London, United Kittgdom Dare.. 27 September 2022 Page 7
BIi4NDON HOUSE LIMITED STATEMENT OF FtNANCIAL ACTlVtTIES (incorpornting an Incorne and Expenditure a¢¢ount) FOR THE YEAR ENDED )IST DECEMBER ?021 2021 Unrestricted runds 2020 Total Funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies Investment in¢ome 4,389 ?66 668 266 667 Total 266 667 ?71057 EXPENDITURE ON Raising ndS Provision of facilities 39.984 13 ?68 347 Total ?73 NET INCOMEI (EXPENDITURE) 226.683 {? 343) Gains on Reyaluatitsn of fixed assets 3,518.669 RECONCILIATION OF FUNDS Total funds brought forward 3 237 690 78 636 TOT AL FUNDS CARRIED FORWARD 3_ 231_ 690 The notes forn) part of these f]nancial statements Page 8
BRANDON HOUSE LtMITED BALANCE SHEET AT 31ST DECEMBER?021 Registered Company Number.. 10612051 2021 Unrestrieted fuDds 2020 Total funds Notes FIXED ASSETS Tan<Tible Asseis Mixed use assets/ Investment property 1,695,920 10.000,000 11695920 1,720.000 10.000.000 11 720001 cURRErr ASSETS Debtors Cash at bank 182,741 378.387 188,0?3 6?4,446 561,128 CREDITORS Amounts falling due within one year 81?,474 10 (79,424) (81.533) NET CURRENT ASSETS 481.704 TOTAL ASSETS LESS CURRENT LIABILITIES 12,177,624 12,450,941 CREDITORS Amounts falling due after more than one year (8.713,251) (9,213,251) NET LLABILITIES 3.464J73 3.237.690 FUNDS Unrestricted funds 12 3,464373 3.237.690 TOTAL FUNDS 3,464.373 J.2)7.690 These financial stat¢ments have been prepar¢d in accordance the provisions applicable to charitable companies subject to the small ¢ompanies regime. The fanCIal statements were approved by th¢ Board of Trustees on behalf by.. . and were signed on its Mr J M Paiel-Trustee Pai¢l-Trusi¢e The notes form pan of these financial statements Page 9
BRANDON HOUSE LIMrrED STATEMEEff OF CASH FLOWS FOR THE YEAR ENDED 3 1ST DECEMBER ?021 2021 ?o?o Notes Cash ftows from oper2tiDg activities: C&h ttellerated from operations 240.059) 300.649 Net ea%h provided by (used in) operating activities 246,059 300.649 Change in cash aud cash equivalents in the reportlDg period (246.059) Cash and cash equivalents at tbe b¢ginnxna of the reporting ptriod 624.446 323.797 Casb and tash equivalents at the end of the reportillg period 378,387 624.446 ANALYSIS OF CHANGES IN NET DEBT Asat31 December 20?1 Asatol January 2021 Cash flows Cash at bank and in hand Debt due after one year 624,446 {9,21) ?51) (?46,059) 500,000 378,J87 (8,713251) 8.588,80 2S3,941 8,334,864} The notes form part of these finan¢ial staternents Paoe 10
B114NDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER ?O?I ACCOUNTIPIG POLICIES Basis of preparinu the financial statements The financial statements of rhe charitable company, which is a public benefit entity under FRS 10? have been prepared in accordance with the Chariiies SORP (FRS 102) 'Accounting and Reporting by Charities.. Stdtement of RecoEnmended Prnctice applicable 10 charities preparing their a¢cou]its in accordance with the Finanrial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 10?), InancIal Reportin(T SLindard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 2006. The flljancial 5tatem¢nts have be¢n prepared under ihe historic cost Convention, as modified by ihe revaluation of cgrtdln assets. Goxng Con¢ern Th¢ Charitjble Company had nei funds amounting to £).464.373 {?020= £3 ?37.690) at year-end. The Directors have assessed tlie going concern risks to th¢ Charitable Company and have coricluded that= financial projeaiorts indicate that the Ch3rity will eontinue Éo meet its liabililies as they fall due over the next twelve months from the date of approvkl of these financial Statements. The Charity's parent undertakints, Nilkanth Estates, h&$ confirnied that if required, it will make available such funds as are needed by the Charitable Company for the period covered by th¢ forecasts. These forecasts are b¢d on fvll rents resuming after the tEPOrary concession due to the pandemic, as well as the awed waiver of loan interest from l January 2023 by Nilkanth Estates on its loaj) to the Charity. In liuht of th¢ above, the Charity doe5 not believe there to be a material uncertainty regdIn& it5 tsoin ¢oncem. Income All inCQTll¢ is r¢cogni5ed in th¢ Stat¢ment of Financial Activities once the Charity has enlitlement to the funds. it is probable that th¢ incom¢ will b¢ received and the amount can be measured reliably. Rental Income Rental income from operating leas¢s (n¢t of any incentives given to th¢ lessees) is reCOlsed oll a 5traight-line basis over the lease terni. ExpedItre Liabilities are re¢ognised a5 expenditure as soon as there is a legal or constructive obligatloil CDrnmitting the Charity to ihat expenditure, it is probable that a transfer of economic b¢n¢fit5 will be required sn settlement and the amount of the obligation can be measured reliably. Expendiwr¢ is ac¢ow)ted for on an accruals basis and has been classified under headings that aggregate all cost related to the ¢ategory. Where ¢ost5 cannot be directly attributed to Particular headings they have been allocated to 3¢tivities on a basis consistent with the Use of re50urce5. Tngible Fixed assets Ittrns of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allo¢ated to tivities on th¢ basis of the use of the related asseis in those activitie5. Assets are reviewed for impairn¢nt if circumstances indicate iheir carrying value may exceed their net reali5able Yalue and value in use. Depreciation is provided ai rntes calculated 10 write down the c05t of each asset to irs esiimated residual value over its expected useful life. The depreciation ra1¢5 in use are as folltsws.. Freehold buildings: 2/0 on cost Freehold land is not depreciated. Page 11
BRANDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS- CONTtNUED FOR THE YEAR ENDED 3 1ST DECEMBER 20?1 ACCOUNTING POLICIES- continued Mixed Use Assets Propety held for a Combination of finan¢ial return and ¢ontribution to the Charity's purposes 1$ classifsed mixed use assets. Under FRSIO? and Charity SORP. the element of the asset held for finaneial return requires revaluation at year- end fair value. Taxation The Charity is exempt from corporation tax on its charitable activities. Accounting estimates and jUdg¢ents In the application of th¢ Chority's accounting policies, the Trustee5 ¢ required lo make judgements, ¢stimate5 and Su[ptiOnS aboth th¢ carying amount of Issets ad liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factor5 that are con5idcr¢d to be r¢l¢vant. Actual results may difftr from these estimate The e5timate5 and underlying ssumptions 3re VIew¢d on an ongoitig basis. Revisions to accounting estimates are re¢ogni5ed the period to whieh ihey relate. Covid-19 has had no impact on any accounting estimates and judgements. Mixed Use Assets A mixed-use assel is an asset held to generdte a fuiancial return and which also contributes to the Charity's puTroses. The Chariry's Brandon House propety represents a mixed-use asser. The element of the asset deemed to be held for financial rerum is aCCOLllJted for as an invesimeni and me&sured at fair value at the reporting date. the Trumees have reviewed the fair value of ihis element at the year-end, in line with SORP requirements, and do not believe it to have matcrially ehantsed since its revaluation on 31 December 2020. The element of the asset deemed to be held to contribute to the Chariry's purposes is accounted for a tangible fixed asset and measured ai ¢ost less depreciauon. The Tntee$ have used floor area as the basis for estimating the proportions of the a55et accounted for a5 an investtnent and a tanuible fixed a55et. Fund aeeountiThg Unrestricted funds caj] be used in accordance with the charitabl¢ objliveS at th¢ dIsetIOn of the Trustees. Restricted funds cart only be used for particul restricted purposes within ih¢ obj¢¢ts of th¢ Charity. Re51TlCtioi]s arise whett specified by the donor or when funds are rdised for panicular r¢stri¢ted purposes. Con¢ession2ry loans Loans which have been taken out with an interest rate below the market rat¢ and for ¢haritsble purposes are de¢med as conce5sionary loans. Further ¢xTrlanation of the nature and purpose of each lld is included in the notes to the financTal statements. DONATIONS AND LEGACIES 2021 ?0?0 Donations INVESTMENT INCOME 20?0 R¢nts received ?66 66_8. Page l?
BRANDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS - CONTtNUED FOR THE YEAR ENDED 31 ST DECEMBER 2021 RAISING FUNDS Investment manageJDent costs 2021 20?0 Rates G& Repairs and mairLtenance Insurance Bank charges Sundrie5 Electricity Depreciation Professional fees 412 621 (10,351) 305 1,900 2,650 33 13 7,9?8 13 8.601 24.080 4,314 4.200 39.985 5.053 NEY INCOMEIIEXPENDITURE) Net incomel(expenditure) ts stated after charging(cr¢ditinéT 2021 20?0 Auditors, remuneratiort 4,200 ANALYSIS OF STAFF COSTS, TRUSTEES. REMUFIERATION AND BENEFITS The Charity is managed and operated by its Trustees and there are no employees. All Truste¢s give their time volunlarily and rec¢iYe no remuneration or benefEts from the Chartry. There were Trustees, expenses paid for th¢ y¢ar ended 31st DeCeber2021 nor for th¢ year ended 3 1st December 20?0. Page 13
BRANDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS- CONTtNUED FOR THE YEAR ENDED 3 1ST DECEMBER ?021 TANGIBLE FIXED ASSETS Freehold buildings Cost At 1st January ?021 At 31 December 2021 reciatifin At stan of the year Chartse for the year 24,080 At end of tbe yur N¢t Book Values: At end of the year At Start of the year MIXED USE ASSETI INVESTMENT PROPERTY FAIR VALUE At 1st January ?O?I 10,000,000 At J I" De¢eTnber ?021 In line with financial reporting requirements, and at the year-end, Ihe Trustees have revÈ¢wed the fa value of the el¢m¢nt of rhe Charity's Brandon House propety which is used for inve5tmenr putpi)ses. They do not belicv¢ it to have materially changed in fair value since its r¢valu&tlOD on il Decembknl- ?O?O, which used an informal valuation from a RICS-accrgdited propcrty advisor, and trustee consideration of then current market factors. Paue 14
BRANDON HOUSE LIMITED NOTES TO THE FINANCIAL STATEMENTS- CONfiNUED FOR THE YEAR ENDED 3 1ST DECEMBER 2021 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 Trade debtors Other debtors 16.440 166.301 166.301 182.741 188,0?8 io. CREDITORS: AMouNfs FALLING DUE WITHJTrI ONE YEAR 2021 ?o?o Trade credito Other creditors Accrned expenses 8?13 66,911 4,200 10.429 66,904 79,424 ii. CREDITORS: AMOUNTS FALLING DUE AFTER MORE TEL4N ONE YEAR 2021 concession Loans 8,713.?51 9,?13 ?51 The Charity's par¢nt charity, Nilkanih Emates, provided a loan to the Charity of £8201,3) l in ?017 for the purchase of the Charity's Brdndcpn House property and to further both entities, charitable objectives. The loan.. ID¢urs IIiterest at 30/ty per annum. which is considered below market rate. is secured againstthe property. is repayable on demand, though the parent charity has provid¢d assurances that it will not be repayable until at least one year from 31 December ?0? l. Ni]kth Eststes has agreed io waive inlerest charges on its loan to the Charity since the premises are used for chaTitable purposes. 12. MOVEMENT IN FUNDS Unre5tri¢ted funds 2021 2020 At start of the year Incomints resources Resources expended Gain on revaluation of fixed assd investh)ent5 3,237,690 266,667 (39,984) (?78,6361 271,(157 1?73,400) 3,518.669 At end of the year Page 15
BRANDON HOUSE LtMITED NOTES TO THE FINANCIAL STATENIENTS- CONTINUED FOR THE YEAR ENDED 3 1ST DECEMBER 20?] 13. RELATED PARTY DISCLOSURES Included in Creditors is a Con¢ession8ry loan Teceived from Nilkanth Estates, a registered Charity with conuno ?O?l Is Trustee51Directors and also being the sole member of this company. The iotal loan at 31 December _ £8,713 ?51 and ineludes £8,201.33] for the purchase of the investmentproperry held by the Charity together with rtslled-up interest at 3Q/o per annum. The loan is repayable on an indeterminate period. The Concessionary loan has been provided by the Clwity as Brandon House uses part of the property for charitable purposes. 2021 Loan princspal Interest aecruals of earlier periods Interest Charge for the curent period Loan repaym¢nt 8,271.331 94J.920 8?71,3Jl 67_-.573 268,347 500.000) Balance payable w Nilkanth Estates 8,713,251 9.2 lJ.25 1 The Charity received unre5trict¢d donations of £Nil during the year (?0?0.. £4,)89) from Beddington Conference C¢ntre LiTnited. Mr V H Patel, ¥4 foTmer trustee of the Charity, is also director gf Beddington Conference Centre Limit¢d. 14. ULTIMATE CONTROLLING PARTY The Company is a ¢ompany limited by gllaraniee and the sole guarantor i) Nilkanth Estates (R¢& Charity no.11484)1). The latter is incory>orat¢d and registered in England & Wal¢$. Consolidated financial statements of Nilkanih E5tate5 are available online at tb.¢ Companies House website. 15. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2021 Net ineomel(expenditure) for the reporting period (as per the 5t2terneDt of financial activities) Adjustments for: Depreciaiion Interest payable De¢rea%l (Increase) in debtors Increasel(decreasel in credilor% 226,683 (2.343) 24,080 ?68,347 25.098 9.547 S.287 502,109) Net cash provided by operating activities 246.059) Paoe 16