**REGISTERED CHARITY NUMBER: 1173042**
**REPORT OF THE TRUSTEES AND**
**FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
**FOR**
**NAVNAT VANIK ASSOCIATION OF THE UK**
**NAVNAT VANIK ASSOCIATION OF THE UK**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
||**Page**|
|---|---|
|**Report of the Trustees**|1 to 12|
|**Report of the Independent Auditors**|13 to 15|
|**Statement of Financial Activities**|16|
|**Statement of Financial Position**|17|
|**Statement of Cash Flows**|18|
|**Notes to the Statement of Cash Flows**|19|
|**Notes to the Financial Statements**|20 to 36|
|**Detailed Statement of Financial Activities**|37 to 39|
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
The trustees present their report with the financial statements of Navnat Vanik Association of the UK (herein after referred to as the "Charity"), for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and 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 published in October 2019.
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## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The aim of the Charity is to promote any charitable purpose for the well-being of its members, for the advancement of education, religion and the provision of facilities in the interests of social welfare, for recreation and leisure-time occupation with the object of improving the conditions of life and health for the said members; to associate with local authorities, voluntary organisations and residents in a common effort to advance all forms of education for its membership; and to foster a community spirit for the achievement of these.
The Charity's real strength lies in the enormous amount of voluntary service it receives from its members who willingly and generously give their time at all hours. Volunteers do not receive any remuneration. The Charity's Executive is responsible for the management of the building including rental of halls and their maintenance. All other activities of the Charity are organised by the Charity or done through its affiliates comprising of Navnat Vanik Bhagini Samaj, Navnat Vadil Mandal, Navnat Bridge Club and Navnat Golf Club.
## Organisation
## Executive Committee ("EC"):
Under the terms of the constitution, the management of the Charity is vested in the Executive Committee, which is elected every two years by the members at its AGM. An AGM is held every year. The membership of the Executive Committee is set later in this report. The Executive Committee members are not remunerated for their services and they rely on substantial voluntary help from the Community members. The Executive Committee meets monthly and additionally as required. The Executive Committee members are also the Trustees of the Charity for the Purpose of the Charities Act 2011.
## Board of Advisors:
The Board of Advisors, whose names appear later in the report, are nominated by the Executive Committee. The Advisors hold office for a term of five years.
## Management of the Charity's Affairs:
The Executive Committee convenes on a regular basis to plan and discuss the Charity's activities and events. The Executive Committee has set up additional supporting sub-committees with the objectives to supervise particular activities of the Charity and/or to provide additional assistance and guidance. The sub-committees have their own terms of reference and their reports, findings and recommendations are discussed by the Executive Committee at each Board meetings. The subcommittees and their objects are:
|Buildingcommittee||To maintain and refurbish the Navnat Centre||
|---|---|---|---|
|Health and Safety
Committee||To advise EC on all H & S matters. To ensure Navnat follows all relevant
H & Sguidelines||
|IT committee||To manage the Charity's website||
|Editorial committee||To manage the Charity's newsletter and other associatedpublications||
|Grievance committee||Independent mediation body to resolve any grievances from EC
members.||
The Executive Committee may at times also appoint other persons / support groups in order to manage special events, such as Paryushan, Janmashtami, Building Projects etc.
The Charity also includes affiliates, which cater for different needs of the community:
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **- Navnat Vanik Bhagini Samaj:**
The Navnat Vanik Bhagini Samaj operates for the benefit of the welfare of the Charity and Community's ladies. It has its own Executive Committee, elected by Bhagini (ladies) members at its annual general meeting held each year.
## **- Navnat Bridge Club:**
The Navnat Bridge Club operates for the benefit of the Charity and community members to give them knowledge about Bridge as well as playing Bridge on a weekly basis. It has its own Executive Committee elected by members of Navnat Bridge Club.
## - **Navnat Vadil Mandal:**
The Navnat Vadil Mandal is for the benefit of the elderly members of the Charity and community. They meet every Friday to do Yoga, to pray, engage in cultural activities, to play cards and to enjoy food lovingly made by a wide group of kitchen volunteers. It has its own Executive Committee elected by members of Navnat Vadil Mandal.
## **- Navnat Golf Club:**
The Navnat Golf Club operates for the benefit of the Charity and community members to give them knowledge about Golf. It has its own Executive Committee elected by members of Navnat Golf Club.
In addition to the affiliates mentioned above that elect their own Executive committees while operating under the overall guidance, rules and constitution of NVA, there are also groups that operate within Navnat running regular activities like Jalsa club that meets every Tuesday and Badminton Club that plays weekday evenings from Tuesday to Thursday at Navnat Centre.
## **Public benefit**
In reviewing our aims, objectives and planning future activities, the Trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.
The Trustees always ensure that the activities undertaken are in line with the charitable objectives and aims of the Charity.
One of the Charity's principal aims, and objectives is to promote the well-being of its members and for the advancement of education, religion and the provision of facilities in the interest of social welfare and so playing an important part in building a better society.
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities Internal Control**
The Trustees have overall responsibility for ensuring that the Charity has appropriate systems of internal controls across the entire organisation. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements follow best practice.
The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. Internal control processes implemented by the Trustees include: - Production of periodic management accounts and review of financial results and performance indicators by the Trustees.
- Delegation of authority and segregation of duties.
- Identification and management of risk.
## **Risk Management**
The Trustees actively review the major risks which the Charity faces on a regular basis and believe that maintaining the free reserves at around £350,000 combined with the annual review of the controls over key financial systems will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which the Charity faces and confirm that we have established systems to mitigate the significant risks.
## **Review of Activities**
This has been an exceptional and unusual year for your Charity. The pandemic Covid-19 that spread throughout the world from the beginning of 2020 has impacted normal operations of the charity. In March 2020, EC closed the Navnat Centre as per Government advice and all our normal operations including activities of Vadil, Bhagini and Bridge came to a standstill. Hall hire income that contributes to our charitable activities also stopped as big public events were not allowed. The lockdowns with Covid have continued across from 2020. As a result, majority of our activities in 2021 continued over Zoom. When the Government relaxed restrictions during the year, before Delta wave and Omicron wave, your charity managed to deliver a few functions onsite quite successfully. These have been covered in detail later.
## **(i) Freehold Property:**
The Charity owns the freehold property at Navnat Centre, Printing House Lane, Hayes Middlesex, UB3 1AR. The property is available to any individual or organisation in accordance with the standard hiring agreement and scale of charges adopted for the year.
The income from hall hire during the year was £49,912 (2020: £10,183) and Car park income from the rental of the car park was £116,360 (2020: £211,511). Total costs for running and maintaining the Charity 's property amounted to £131,931 (2020: £149,620).
Your charity was fortunate that we could participate in the nation's fight against Covid. From early January 2021 to May 2021 Navnat Centre was provided to The Confederation, Hillingdon CIC to operate as a Covid Vaccination centre. With the facilities that the centre provided it was used and liked by a lot of residents. We believe that upwards of Eighty thousand vaccinations were provided at the Centre and a lot of positive feedback was provided by the NHS clinicians and residents that used the facility.
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **(ii) Core Activities and Projects:**
## **The year of online events**
Our Zoom team led by Arvindbhai Mehta has continued to successfully deliver online events for the community. The Zoom team now comprises of the following extremely dedicated eight individuals, offering their services voluntarily to the Charity:
Arvind Mehta, Nitin Savadia, Kishore Batavia, Anneka Bavishi, Bansari Rupani, Darshna Bajaria, Jagdish Sanghani and Mukesh Dadia.
Event categories delivered over Zoom cover Fitness / Yoga, Entertainment, Pravachans / religious talks, Business / general talks, Cookery / arts & crafts.
In 2021 again, the Charity conducted Paryushan virtually over Zoom. It was a unique experience for all involved. We had live Ucchavnis online of the Sapnas that were delivered by dedicated teams to their homes with a miniature Mandir to keep as a memento.
This ensured that while Navnat was closed to our community to keep everyone safe, our community members were not left feeling isolated and unsure. Our regular programs - more than what we would have delivered physically at Navnat Centre, ensured that we were in regular touch with our community members and they could also reach out to us.
## **(iii) Communication to the Members:**
The Charity's website serves to inform members of upcoming events, news of births, marriages and deaths within the community. The website also enables online booking for the hire of Navnat Centre’s facilities. Web-blasts from our web team have also become a very important and useful mode of communication to our members. The Charity also makes use of social media to interact with its members including Facebook, Twitter & YouTube.
'Navnat Darpan', its core periodic publication was published with a couple of issues during the year. We suspended publication of Darpan later during the year as all our events were being held online and all information was being communicated via web blasts.
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **FINANCIAL REVIEW**
## **Financial review**
The financial statements comply with current statutory requirements and with the requirements of the Constitution.
Governance and Support costs have been allocated by activity in the statement of financial activities, across the activities that the function supports in order to arrive at the full cost for each reported activity.
## **(i) Results:**
The results for the year are shown on page 16 of the financial statements, which the Executive Committee considers to be satisfactory considering, this has been another year of the pandemic and for nearly 10 months of the accounting year normal operations have been disrupted in a big way. Consequently, figures for this accounting year are not really comparable with the results for the previous year. Nevertheless, as per disclosure requirements and FRS guidelines a brief commentary is provided on results for the year.
Total Income and Endowments received in 2021 are higher than those received in 2020. Our hall hire income has been intermittent and one car parking contract was not renewed on account of Covid. We let our car park out when surplus to our requirements. Since activities at Navnat Centre came to a halt and activities of our affiliates also got suspended, the expenditure has also reduced. Our fulltime facilities manager and the part time staff that helps maintain the hall were furloughed for a few months of the year.
Our car park income has continued as leases/licenses are in place but at a slightly lower value with the companies asking for a rebate in the rental due to non-usage. The positive view is that these are regular contracts, and the companies want to continue with the arrangements.
Surplus for the year from normal activities has decreased this year when compared with last year primarily on account of the reduction in Car park income. Donations received to the Building Fund for the Dining room expansion project has led to a big increase in the Restricted Fund Income. This has resulted in an increase in the overall surplus figure for the Charity in 2021.
The Charity had a surplus of £379,938 (2020: £258,833) during the year. The Trustees would like to acknowledge and thank the tremendous efforts of the volunteers and the many supporters of the Charity for their kind and generous donations.
## **(ii) Total Reserve Funds - Restricted and Unrestricted:**
The Charity's total reserve funds as at 31st December 2021 stood at £5,393,301 (2020: £5,013,363).
## **(iii) Jivdaya Fund**
The fund is a restricted fund, which was set up for the purpose of improving the living condition of all living beings (human and animals). The Executive Committee have made donations from the Jiv Daya Fund to various other charities totalling £32,032 (2020: £39,696). Donations received for Jiv Daya purpose amounted to £19,547 (2020: £22,381). This includes £1,727 (2020: £675) being Gift Aid claimed on Jiv Daya donations. The Trustees have utilised part of these funds for our educational objective and build primary schools in needy areas of Gujarat. The infrastructure of identified primary schools in villages and needy areas is being uplifted by rebuilding the schools from scratch and providing facilities like computers, separate bathrooms for boys and girls and a total revamp of the infrastructure. The schools will still be run and overseen by Gujarat Government.
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **(iv) The Building Reserve Fund**
The Building Project Fund balance as at 31 December 2021 stood at £3,653,494 (2020: £3,330,011). During the year, total donations including Gift Aid £53,429 (2020: £12,775) received amounted to £378,943 (2020: £154,679).
Depreciation charged to the Building Fund for 2021 was £55,460 (2020: £55,460).
(v) The Trustees ensure the use of the Centre between its affiliates’' bodies and the printing & distribution of Darpan so as to continually promote the activities and Objects of the Charity.
## **(vi) Fixed Assets Investments**
The Fixed asset investments comprise funds held in treasury deposits, and these have reduced from £1,487,834 to £396,950 as funds have been used to pay for the expansion works at Navnat Centre.
## **Investment policy and objectives**
The Charity receives income on an annual basis through donations from its members and general public, membership subscriptions, income from hall hire and other sources. It plans activities over a twelve-month time horizon and budgets to expend anticipated income in furtherance of the Charity's objective, except for retaining a prudent amount in reserves.
At present, the Board of Advisors does not consider that it is prudent to invest in riskier assets (such as listed shares and other similar securities) for the longer term. Its policy for investment is therefore to retain funds as cash and place them on bank/treasury deposit at the best interest rate obtainable.
## **Reserves policy**
The Trustees conduct an annual review of the level of unrestricted reserves in the general fund by considering risks associated with the various income streams, expenditure plans and balance sheet items. This enables an estimate to be made of the level of reserves that are sufficient:
- to allow time for re-organisation in the event of a downturn in income or asset values.
- to protect ongoing work programmes; and
- to allow the Charity to meet its objectives.
Risks and issues considered by the Board of Advisors in making this judgement on the level of unrestricted reserves include:
- likelihood of a downturn in income streams.
- period of time required to re-establish income streams.
- period of time required to downsize the Charity operations.
- whether there is adequate control over budgets.
- potential decrease in the value of the investment portfolio; and
- requirements for a reasonable level of working capital.
The Trustees consider that the Charity should have free reserves of approximately £350,000 to cover its core activities for 15 to 18 months. Actual free reserves (including short term investments in money market instruments) as at 31st December 2021 were £373,300 (2020: £1,346,934).
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **FINANCIAL REVIEW**
## **STATUS OF DEVELOPMENT PROJECTS**
The Trustees wish to maintain the continued success achieved by the Charity in terms of increased attendance at major functions and events. The Executive Committee aims to continuously improve the facilities offered by the Charity to its members.
## **Dressing Rooms above stage**
We had two rooms on the first floor either side of the stage, which were unusable, as they were inaccessible. We have put in a staircase leading to each room and decorated them as male and female changing rooms, which we believe will be extremely useful once the Centre reopens and we again are able to host music parties, performances and weddings.
## **Blinds**
We have now installed remote control blinds in the upper windows of the main hall. This is to reduce the light streaming through the windows which were affecting the visibility on the projector screens and playing of sports in the hall as well as performances being conducted on stage during our long summer days.
## **Dining Hall Extension**
Building work commenced in March 2021. The community has donated generously towards this project and accordingly, the Trustees were able to add to the scope of the project. A single storey side extension has been added in front of the existing library. We have converted the existing library and IT room into a small kitchen, added a disabled toilet and cloakroom.
The IT room and library have been moved to the new side extension in front of the current Library room and two new storage rooms have been added. We have expanded the kitchen slightly along with the Dining Hall, by using the current space used for storage by Kitchen committee. The new storage rooms will thus be used to store our furniture and Bridge tables when not in use.
We have been fortunate that we contracted for this extension at 2020 prices and commenced work in early 2021. This helped us on so many angles. It reduced disruptions to our membership as Centre would have had to stay closed anyway on account of Covid; while the Suez Canal blockage and subsequent disruptions delayed completion it did not impact our costs. Our contractors estimate that the same extension would have cost us between 200 to 300 thousand pounds more at today's prices.
The cost of the overall project (DHE, side extension and existing kitchen refurbishment) was £1,663,459, of which, building fund contribution (including gift aid) was around £533,622 million as at 31st December 2021. We continue to receive Building fund donations into 2022 and would anticipate fund raising events this year to bolster it further. Till 30[th] June 2022, we have further received £58,303 towards building fund.
Completion certificate for the extension works was received on 25[th] February 2022.
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **FUTURE PLANS**
## **Car Park Restructuring**
We are awaiting Hillingdon Council to complete the root treatment on the trees lining our boundary fence, subsequent to which we will be commencing the resurfacing of our car park for the benefit of our users.
## **Sports Facilities**
On a medium-term basis your association's vision is to expand our sports activities by building an allweather sports complex over the present disused tennis court. From 2021, we have started free cricket training sessions for young kids All Stars cricket (5-8 yrs) and Dynamos cricket (8-11yrs) both boys and girls under the auspices of English Cricket Board (ECB). All equipment is provided to the kids, and we have had Navnat gents and Bhagini ladies trained as activators to provide training to the kids.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Charity is Charitable Incorporated Organisation and is governed by its Governing document, a constitution and related rules.
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1173042
## **Principal address**
Navnat Centre Printing House Lane Hayes Middlesex UB3 1AR
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**NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Trustees**
D Mithani K Adani J R Doshi B C Mehta R Shah P P D Mehta Mrs H Doshi K Batavia N K Mehta P P B Mehta (resigned 13/2/22) Mrs S Bavisha D Holden D Shah (resigned 13/2/22) N M Mehta N G Udani (Ex-Officio) M Kothary (Ex-Officio) B Shah co-opted 10th October 2019 (resigned 13/2/22) D M Kamdar (Ex-Officio) (appointed 8/3/21) S D Sanghrajka (appointed 13/2/22) K C Vora (appointed 13/2/22) H Shangavi (appointed 13/2/22) Mrs S Varia (Ex-Officio) (appointed 27/11/21)
## **Auditors**
P.S.J. Alexander & Co Statutory Auditors 1 Doughty Street London WC1N 2PH
## **Honorary Solicitor**
Vyman Solicitors Mrs Mamta Parekh Vyman House, 104 College Rd, Harrow HA1 1BQ
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## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS Advisors**
## **Executive Committee**
President: Vice-President: General Secretary: Joint Secretary: Membership Secretary: Treasurer: Assistant Treasurer: Hall Secretary:
Mr Dilip Mithani Mr Ketan Adani Mr Jaswantrai Doshi Mr Shamir Sanghrajka Mr Kirit Batavia Mr Ramesh Shah Mr Paresh PD Mehta Mrs Hasmita Doshi
## **Committee Members comprise:**
Mr Nemish Mehta Mrs Sangeeta Bavisha Mr Haresh Shanghavi Mr Kishorechandra Chhotalal Vora
Mr Nitin Mehta Mr David Holden Mr Bachoolal Mehta
## **Board of Advisors**
Mr Amit Lathia Mr Mehool Sanghrajka Mrs Bina Sanghvi
Mr Sunil Sangani Mr Koolesh Shah
## **Bankers**
National Westminster Bank Plc PO Box 39952 2/12 Devonshire Square London EC2M 4XJ
Close Brothers 4th Floor 10 Crown Place London EC2A 4FT
Bank of Baroda Indian Khetwadi Branch Mumbai 213, Khetwadi Main Road Mumbai Maharashtra - Pin 400004, India
Metro Bank One Southampton Row London
State Bank of India, King Street, London EC2V 8EA
Virgin Money, Jubilee House, Gosforth, Newcastle-upon-Tyne NE3 4PL
HSBC 28 The Broadway Southall Middlesex UB1 1PU
Bank of Baroda 213 Kenton Road Harrow HA3 0HD
Barclays Bank Plc P O Box 299 Birmingham B1 3PF
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## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity 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;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
..................................................... D Mithani - Trustee
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## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NAVNAT VANIK ASSOCIATION OF THE UK**
## **Opinion**
We have audited the financial statements of Navnat Vanik Association of the UK (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
- In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.
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 charity'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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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. We have nothing to report in this regard.
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**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NAVNAT VANIK ASSOCIATION OF THE UK**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 a Report of the Independent Auditors 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• we reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations that have a direct effect on the financial statements;
• we enquired with the management team concerning actual and potential litigations and claims;
- we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- we read minutes of meetings of those charged with governance;
• we obtained an understanding of any provisions and held discussions with management to understand the basis of recognition or non-recognition of such provisions; and
• we addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of Charity.
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**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NAVNAT VANIK ASSOCIATION OF THE UK**
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
P.S.J. Alexander & Co Statutory Auditors 1 Doughty Street London WC1N 2PH
Date: .............................................
Page 15
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|2021
Unrestricted
Restricted
Total
funds
funds
funds
Notes
£
£
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
40,059
406,065
446,124
**Charitable activities**
5
Income of NVA affiliates
-
37,101
37,101
Religious functions
20,705
-
20,705
Social and cultural functions
3,239
-
3,239
Darpan and other charitable activities
3,138
-
3,138
Other trading activities
3
166,272
-
166,272
Investment income
4
6,362
-
6,362
Other income
12,172
-
12,172
**Total**
251,947
443,166
695,113
**EXPENDITURE ON**
Raising funds
6
30,106
-
30,106
**Charitable activities**
7
Religious functions
113,232
32,032
145,264
Social and cultural functions
22,078
-
22,078
Expenditure by NVA affiliates
-
37,055
37,055
Other Expenses
7,081
18,131
25,212
Building
-
55,460
55,460
**Total**
172,497
142,678
315,175
**NET INCOME**
79,450
300,488
379,938
**Transfers between funds**
18
1,001
(1,001)
-
**Net movement in funds**
80,451
299,487
379,938
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
1,422,004
3,591,359
5,013,363
**TOTAL FUNDS CARRIED FORWARD**
1,502,455
3,890,846
5,393,301|2020
Total
funds
£
247,731
69,238
28,058
10,600
2,512
221,694
11,064
-
590,897
51,959
165,506
19,126
31,642
8,370
55,461
332,064
258,833
-
258,833
4,754,530
5,013,363|
|---|---|
The notes form part of these financial statements
Page 16
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2021**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investments
14
**CURRENT ASSETS**
Debtors
15
Cash at bank
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
18
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|2021
£
4,853,017
396,950
5,249,967
20,313
407,441
427,754
(284,420)
143,334
5,393,301
5,393,301
1,502,455
3,890,846
5,393,301|2020
£
3,246,052
1,487,834
4,733,886
112,592
219,849
332,441
(52,964)
279,477
5,013,363
5,013,363
1,422,004
3,591,359
5,013,363|
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. D Mithani - Trustee
............................................. R Shah - Trustee
The notes form part of these financial statements
Page 17
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash used in investing 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**|2021
£
766,369
766,369
(1,676,023)
(159,901)
1,250,784
6,362
(578,777)
187,592
219,849
407,441|2020
£
247,392
247,392
(18,366)
(533,271)
27,425
11,064
(513,148)
(265,756)
485,605
219,849|
|---|---|---|
The notes form part of these financial statements
Page 18
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash provided by operations**|2021
£
379,938
69,058
(6,362)
92,279
231,456
766,369|2020
£
258,833
69,200
(11,064)
(24,017)
(45,560)
247,392|
|---|---|---|
## 2. **ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**
Cash at bank
**Total**|At 1/1/21
£
219,849
219,849
219,849|Cash flow
At 31/12/21
£
£
187,592
407,441
187,592
407,441
187,592
407,441|
|---|---|---|
The notes form part of these financial statements
Page 19
**NAVNAT VANIK ASSOCIATION OF THE UK**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, 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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The financial statements incorporate the accounts of Navnat Vanik Bhagini Samaj, Navnat Bridge Club, Navnat Vadil Mandal and Navnat Golf Society.
The Charity constitutes a Public Benefit entity as defined by FRS 102.
## **Going Concern**
The Trustees consider that there are no material uncertainties about the charity's ability to continue as a Going Concern. The charity has been impacted by Covid-19, but the charity has sufficient cash reserves to continue as a going concern for the twelve months following the approval of these financial statements.
## **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.
i) All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
ii) Rental and other investment income are included in the Statement of Financial Activities on accruals basis.
iii) "Donations in kind" such as property and other assets are included as income at their estimated market values. Other donations are recognised when received. Where tax has been deducted at source, income is grossed up where a claim for the tax repayment has been made. The tax recoverable is shown as a debtor at the year end.
iv) The value of voluntary services is not recognised, as the cost of estimating these exceed any benefits to the users of these financial statements.
Page 20
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Income**
v) Grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment. Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
vi) Annual membership fees are recorded on a receipt’s basis. Subscriptions received for Life Membership are credited to a separate unrestricted fund and released to the income and expenditure account on a straight-line basis over twenty years. Life membership funds are not refundable.
## **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.
## **Resources expended**
i) 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.
ii) Voluntary expenses include the Jivdaya, and other donations made by the Association and catering expenses.
iii) Expenditure by Navnat Vanik Associates includes the expenses incurred by Navnat Vanik Bhagini Samaj, Navnat Bridge Club, Navnat Vadil Mandal, and Navnat Golf Society as agreed by the Executive Committee.
iv) Religious functions comprise all expenses incurred in hosting religious events such as Paryushan, Ram-Navmi, Janmashtami, etc.
v) Social/Cultural expenses include expenses for the services provided by the Association and will comprise picnics for members, graduation ceremonies, trips, seminars, etc.
vi) Other expenses include the costs of the newsletter (Darpan) and other expenses which do not fit in the above categories.
vii) Property expenses are expenses incurred in the running and maintenance of the Navnat Centre.
viii) Governance costs include the costs of governance arrangements which relate to the general running of the charity. These activities provide the governance infrastructure which allows the charity to operate and to generate the information required for public accountability.
Page 21
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Allocation and apportionment of costs**
Support costs are allocated to Charitable expenditure of Unrestricted funds except for the depreciation on the building. The depreciation on the building is charged to the Building Fund. All the other support costs are apportioned between religious function costs and social and cultural function costs in the ratio of these two cost categories to the sum of these two; prior to the allocation of support costs.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost Fixtures and fittings - 15% on reducing balance
Assets with a cost in excess of £1,000 intended to be of ongoing use to the Association in carrying out its activities are capitalised as fixed assets.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit or similar account.
## **Creditors and provisions**
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Taxation**
The charity is exempt from tax on its charitable activities.
The Charity is a registered charity and therefore is not liable for income tax or corporation tax on income derived from charitable activities, as it falls within the various exemptions available to registered charities.
The Charity registered for Value Added Tax ("VAT") in 2016 as its rental income exceeded the HMRC thresholds; not all income is liable to VAT under the partial exemption available and hence not all VAT incurred on expenditure is claimed in full.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Page 22
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Employees of the charity are entitled to join "NEST" pension scheme. NEST was created by the government to make sure that every employer has access to an auto enrolment workplace pension scheme. The charity contribution is restricted to the contributions disclosed in note 10. The costs of the scheme are included within support and governance costs and charged to the unrestricted funds of the charity using the methodology set out in note 8.
## **Fixed assets investments**
Fixed assets investments are valued at costs less any provision for impairment in value.
## **2. DONATIONS AND LEGACIES**
|Gifts
Donations
Gift aid
Furlough Scheme
Subscriptions
**3.**
**OTHER TRADING ACTIVITIES**
Hall hire income
Car park rental income|2021
£
-
428,659
-
13,489
3,976
446,124
2021
£
49,912
116,360
166,272|2020
£
3
209,701
1,166
29,028
7,833
247,731
2020
£
10,183
211,511
221,694|
|---|---|---|
Page 23
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**4.**
**INVESTMENT INCOME**
Interest receivable
**5.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Navnat Vadil Mandal
Income of NVA affiliates
Navnat Bhagini Samaj
Income of NVA affiliates
Navnat Bridge Club
Income of NVA affiliates
Navnat Golf Club
Income of NVA affiliates
Paryushan and Pritibhojan Religious functions
Navratri
Religious functions
Other religious functions Religious functions
Social and cultural
functions
Social and cultural functions
Darpan and other trading
activities
Darpan and other charitable activities
**6.**
**RAISING FUNDS**
**Raising donations and legacies**
Cleaning and premises expenses
Repairs and renewals
Hall hire event expenses||2021
£
6,362
2021
£
10,072
11,120
1,585
14,324
11,999
757
7,949
3,239
3,138
64,183
2021
£
6,331
23,672
103
30,106||2020
£
11,064
2020
£
51,249
3,871
10,743
3,375
24,533
2,203
1,322
10,600
2,512
110,408
2020
£
7,888
42,809
1,262
51,959|
|---|---|---|---|---|
||||||
||||||
Page 24
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. CHARITABLE ACTIVITIES COSTS**
|Religious functions
Social and cultural functions
Expenditure by NVA Sub-Committees
Other Expenses
Covid 19 Donations
Building
**8.**
**SUPPORT COSTS**
Religious functions
Social and cultural functions
Building|**Direct**
**Costs**
**Support**
**Costs(See**
**note 8)**
£
£
51,982
93,736
8,765
13,313
36,601
-
7,081
-
18,131
-
-
55,460
122,560
162,509
Management
Finance
£
£
78,307
1,186
10,731
-
55,460
-
144,498
1,186|**Total 2021**
**Total 2020**
£
£
145,718
158,956
22,078
19,126
36,601
31,642
7,081
8,730
18,131
-
55,460
55,461
285,069
273,555
Governance
costs
Totals
£
£
15,312
93,736
2,582
13,313
-
55,460
17,894
162,509|
|---|---|---|
||||
||||
The total support cost attributable to charitable activities is apportioned pro-rata to the Charitable Expenditure of Unrestricted Funds in proportion of their share of the Total Charitable Expenditure of Unrestricted Funds. The Trustees have decided to meet all Governance Cost from NVA only and not from the affiliates, so only Depreciation is charged to the Restricted Building Fund. No allocation or charge is made to Restricted Affiliates funds for any other Governance or Support related costs.
Support costs, included in the above, are as follows:
## **Management**
|Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Carried forward|Religious
functions
£
37,633
-
939
1,236
6,489
13,056
59,353|Social
and
cultural
functions
£
6,345
-
158
208
1,094
2,202
10,007|Building
£
-
-
-
-
-
-
-|2021
Total
activities
£
43,978
-
1,097
1,444
7,583
15,258
69,360|2020
Total
activities
£
61,936
678
1,410
3,141
8,061
(1,038)
74,188|
|---|---|---|---|---|---|
Page 25
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **8. SUPPORT COSTS - continued**
## **Management - continued**
|Brought forward
Telephone
Postage and stationery
Sundries
Computer expenses
Depreciation of tangible
and heritage assets|Religious
functions
£
59,353
1,219
1,877
276
915
14,667
78,307|Social
and
cultural
functions
£
10,007
206
317
47
154
-
10,731|Building
£
-
-
-
-
-
55,460
55,460|2021
Total
activities
£
69,360
1,425
2,194
323
1,069
70,127
144,498|2020
Total
activities
£
74,188
885
832
127
5,169
69,200
150,401|
|---|---|---|---|---|---|
## **Finance**
|Bank charges
Foreign exchange differences
**Governance costs**
Accountants' fees
Auditors' remuneration
Accountancy and legal fees
Annual general meeting|Religious
functions
£
7,231
5,562
825
1,694
15,312|Social
and
cultural
functions
£
1,219
938
139
286
2,582|2021
Total
functions
£
623
563
1,186
2021
Total
activities
£
8,450
6,500
964
1,980
17,894|2020
Total
activities
£
400
3,479
3,879
2020
Total
activities
£
8,068
6,500
5,806
2,659
23,033|
|---|---|---|---|---|
## **Governance costs**
Page 26
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **9. AUDITORS' REMUNERATION**
Auditors provided services on an honorary basis and have not charged any fees or expenses. An amount has been shown in the accounts to reflect value of services donated £6,500 (2020: £6,500).
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **11. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|**2021**
**£**
43,978
0
1,097
45,075|**2020**
**£**
68,163
735
1,487
70,385|
|---|---|---|
The above costs are the full staff costs for the charity. Some of these costs are for specific events, such as Navratri and Paryushan, and are included within these event costs. Staff costs not allocated to specific events are shown in note 8.
The average monthly number of employees during the year was as follows:
||2021|2020|
|---|---|---|
|Employees|4|9|
No employee received emoluments in excess of £60,000.
Page 27
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**12.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**|||
|---|---|---|---|---|
|||Unrestricted|Restricted|Total|
|||funds|funds|funds|
|||£|£|£|
||**INCOME AND ENDOWMENTS FROM**||||
||Donations and legacies|70,670|177,061|247,731|
||**Charitable activities**||||
||Income of NVA affiliates|-|69,238|69,238|
||Religious functions|28,058|-|28,058|
||Social and cultural functions|10,600|-|10,600|
||Darpan and other charitable activities|2,512|-|2,512|
||Other trading activities|221,694|-|221,694|
||Investment income|11,064|-|11,064|
||**Total**|344,598|246,299|590,897|
||**EXPENDITURE ON**||||
||Raising funds|51,959|-|51,959|
||**Charitable activities**||||
||Religious functions|118,771|46,735|165,506|
||Social and cultural functions|19,126|-|19,126|
||Expenditure by NVA affiliates|-|31,642|31,642|
||Other Expenses|8,370|-|8,370|
||Building|-|55,461|55,461|
||**Total**|198,226|133,838|332,064|
||**NET INCOME**|146,372|112,461|258,833|
||**Transfers between funds**|2,001|(2,001)|-|
||**Net movement in funds**|148,373|110,460|258,833|
||**RECONCILIATION OF FUNDS**||||
||**Total funds brought forward**|1,273,631|3,480,899|4,754,530|
||**TOTAL FUNDS CARRIED FORWARD**|1,422,004|3,591,359|5,013,363|
Page 28
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. TANGIBLE FIXED ASSETS**
|**COST**
At 1 January 2021
Additions
At 31 December 2021
**DEPRECIATION**
At 1 January 2021
Charge for year
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|Freehold
property
£
3,893,012
-
3,893,012
724,056
55,460
779,516
3,113,496
3,168,956|Assets
Assets
Under
Under
Fixtures
Construction Construction
and
(Un)
(Restricted)
fittings
£
£
£
-
-
280,351
1,054,838
608,622
12,563
1,054,838
608,622
292,914
-
-
203,255
-
-
13,598
-
-
216,853
1,054,838
608,622
76,061
-
-
77,096|
Totals
£
4,173,363
1,676,023
5,849,386
927,311
69,058
996,369
4,853,017
3,246,052|
|---|---|---|---|
Included in cost or valuation of land and buildings is freehold land of £1,120,000 (2020: £1,120,000).
The fixtures and fittings of £76,515 (2020: £77,096) includes £1,005 (2020: £2,024) of fixed assets on account of the Bridge Club and £567 Navnat Vadil Mandal (2020: £851).
The Board of Trustees and the Executive Committee are of the opinion that the market value of the freehold land and building exceed the net book value.
The Charity has leased out the Car Park over a short-term lease. The costs and accumulated depreciation of this asset have not been disclosed separately because the expenses that the Charity will incur in determining the historical cost and any accumulated depreciation is disproportionate to the value of this information to the users of the financial statements.
Page 29
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**14.**
**FIXED ASSET INVESTMENTS**
Other
There were no investment assets outside the UK.
Investments (neither listed nor unlisted) were as follows:
Bank deposits
Bank deposits - additions
Bank deposits - disposals
**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
Prepayments and accrued income
**16.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Sundry creditors
Accruals and deferred income|2021
£
396,950
2021
£
1,487,833
159,901
(1,250,784)
396,950
2021
£
8,822
11,491
20,313
2021
£
213,890
70,530
284,420||2020
£
1,487,834
2020
£
981,988
533,271
(27,425)
1,487,834
2020
£
18,973
93,619
112,592
2020
£
32,760
20,204
52,964|
|---|---|---|---|
|||||
|||||
|||||
Page 30
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS - continued**
## **31 December 2021**
|**Unrestricted**
**funds**
**£**
**FIXED ASSETS**
Tangible assets
1,129,155
Investments
249,215
1,378,370
**CURRENT ASSETS**
Debtors
9,462
Cash at bank
375,452
384,913
**CREDITORS**
Amounts falling due within one year
(260,829)
**Net Current Assets**
124,085
**NET ASSETS**
1,502,455
**31 December 2020**
**Unrestricted**
**funds**
**£**
**FIXED ASSETS**
Tangible assets
75,069
Investments
1,118,204
1,193,273
**CURRENT ASSETS**
Debtors
96,800
Cash at bank
182,652
279,452
**CREDITORS**
Amounts falling due within one year
(50,721)
**Net Current Assets**
228,731
**NET ASSETS**
1,422,004|**Restricted**
**2021 Total**
**funds Funds**
**£**
**£**
3,723,862
4,853,017
147,735
396,950
3,871,597
5,249,967
10,851
20,313
31,989
407,441
42,840
427,753
(23,591)
(284,420)
19,249
143,334
3,890,846
5,393,301
**Restricted**
**2020 Total**
**funds Funds**
**£**
**£**
3,170,983
3,246,052
369,630
1,487,834
3,540,613
4,733,886
15,792
112,592
37,197
219,849
52,989
332,441
(2,243)
(52,964)
50,746
279,477
3,591,359
5,013,363|
|---|---|
||
|
||
|
Page 31
continued...
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
Life membership fund
**Restricted funds**
Building fund
Jiv Daya Fund
Bhagini Samaj
Navnat Vadil Mandal
Navnat Golf Society
Navnat Bridge Club
**TOTAL FUNDS**|At 1/1/21
£
1,352,751
69,253
1,422,004
3,330,011
60,763
70,424
100,204
6,218
23,739
3,591,359
5,013,363|Net
Transfers
movement
between
in funds
funds
£
£
75,474
4,662
3,976
(3,661)
79,450
1,001
312,927
10,556
(12,485)
-
(1,775)
(5,001)
501
(6,556)
681
-
639
-
300,488
(1,001)
379,938
-|
At
31/12/21
£
1,432,887
69,568
1,502,455
3,653,494
48,278
63,648
94,149
6,899
24,378
3,890,846
5,393,301|
|---|---|---|---|
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Life membership fund
**Restricted funds**
Building fund
Jiv Daya Fund
Bhagini Samaj
Navnat Vadil Mandal
Navnat Golf Society
Navnat Bridge Club
COVID Fund
**TOTAL FUNDS**|Incoming
resources
£
247,971
3,976
251,947
368,387
19,547
11,120
10,072
14,324
1,585
18,131
443,166
695,113|Resources
expended
£
(172,497)
-
(172,497)
(55,460)
(32,032)
(12,895)
(9,571)
(13,643)
(946)
(18,131)
(142,678)
(315,175)|Movement
in funds
£
75,474
3,976
79,450
312,927
(12,485)
(1,775)
501
681
639
-
300,488
379,938|
|---|---|---|---|
Page 33
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Life membership fund
**Restricted funds**
Building fund
Jiv Daya Fund
Bhagini Samaj
Navnat Vadil Mandal
Navnat Golf Society
Navnat Bridge Club
**TOTAL FUNDS**|At 1/1/20
£
1,208,566
65,065
1,273,631
3,237,343
78,078
75,765
68,650
3,362
17,701
3,480,899
4,754,530|Net
Transfers
movement
between
in funds
funds
£
£
138,539
5,646
7,833
(3,645)
146,372
2,001
92,668
-
(17,315)
-
(4,340)
(1,001)
32,554
(1,000)
2,856
-
6,038
-
112,461
(2,001)
258,833
-|
At
31/12/20
£
1,352,751
69,253
1,422,004
3,330,011
60,763
70,424
100,204
6,218
23,739
3,591,359
5,013,363|
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Life membership fund
**Restricted funds**
Building fund
Jiv Daya Fund
Bhagini Samaj
Navnat Vadil Mandal
Navnat Golf Society
Navnat Bridge Club
**TOTAL FUNDS**|Incoming
resources
£
336,765
7,833
344,598
154,679
22,381
3,872
51,249
3,375
10,743
246,299
590,897|Resources
expended
£
(198,226)
-
(198,226)
(62,011)
(39,696)
(8,212)
(18,695)
(519)
(4,705)
(133,838)
(332,064)|Movement
in funds
£
138,539
7,833
146,372
92,668
(17,315)
(4,340)
32,554
2,856
6,038
112,461
258,833|
|---|---|---|---|
Page 34
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. MOVEMENT IN FUNDS - continued**
## **Brief description of the various funds: Unrestricted Funds:**
## **General fund**
This constitutes the total fund received and generated by the Charity. The Trustees review the activities and financial accounts of the Navnat affiliates, and any shortfall of these affiliates' accounts are made up from the general fund. The General Fund has a transfer of £1,001 from Vadil Mandal in 2021. These are contributions made by these affiliates to NVA General fund towards usage of the premises.
## **Life membership fund**
This fund represents the life membership fees that are collected from Navnat members. The life membership fees are amortised to the Statement of Financial Activity on a 20-year period.
## **Restricted Funds:**
## **Building fund**
This fund comprises of donations and income from various functions received for the development of a new community centre and also includes bank deposit interest. Depreciation on Building is charged to the Building Fund account.
## **Bhagini Samaj**
This fund is designated for the cost of operating the Navnat Bhagini Samaj (London).
## **Jivdaya Fund**
This fund represents donations for the improvement of living and health conditions of all living beings and creatures.
## **Navnat Vadil Mandal**
This constitutes designated funds set aside and donations received for a club for the elder community members.
## **Golf Club**
This represents the designated donation income and expenses with regards to the Golf club for the Navnat community.
## **Bridge Club**
This fund represents the designated monies collected and expenses spent by the Bridge Club members.
Page 35
continued...
**NAVNAT VANIK ASSOCIATION OF THE UK**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **19. RELATED PARTY DISCLOSURES**
Our honorary solicitor has provided honorary services to the charity on various matters during 2021. The value of these is estimated by the honorary solicitor at £Nil.
## **20. POST BALANCE SHEET EVENTS**
Completion certificate for the extension works was received for end of March 2022.
Page 36
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Gifts
Donations
Gift aid
Grants
Subscriptions
**Other trading activities**
Hall hire income
Car park rental income
**Investment income**
Interest receivable
**Charitable activities**
Navnat Vadil Mandal
Navnat Bhagini Samaj
Navnat Bridge Club
Navnat Golf Club
Paryushan and Pritibhojan
Navratri
Other religious functions
Social and cultural functions
Darpan and other trading activities
**Other income**
Other Income
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Cleaning and premises expenses
Carried forward|2021
£
-
428,659
-
13,489
3,976
446,124
49,912
116,360
166,272
6,362
10,072
11,120
1,585
14,324
11,999
757
7,949
3,239
3,138
64,183
12,172
695,113
6,331
6,331|2020
£
3
209,701
1,166
29,028
7,833
247,731
10,183
211,511
221,694
11,064
51,249
3,871
10,743
3,375
24,533
2,203
1,322
10,600
2,512
110,408
-
590,897
7,888
7,888|
|---|---|---|
This page does not form part of the statutory financial statements
Page 37
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Raising donations and legacies**
Brought forward
Repairs and renewals
Hall hire event expenses
**Charitable activities**
Sundries
Navnat Vadil Mandal expenses
Navnat Bhagini Samaj expenses
Navnat Bridge Club expenses
Navnat Golf Club expenses
Paryushan and Pritibhojan
Navratri
Jivdaya donations
Other religious functions
Social and cultural functions
Darpan expenses
Covid 19 Donations
**Support costs**
**Management**
Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Computer expenses
Freehold property
Fixtures and fittings
**Finance**
Bank charges
Foreign exchange differences|2021
£
6,331
23,672
103
30,106
1,600
9,571
12,895
492
13,643
8,269
770
32,032
10,911
8,765
5,481
18,131
122,560
43,978
-
1,097
1,444
7,583
15,258
1,425
2,194
323
1,069
55,460
13,598
143,429
623
563
1,186|2020
£
7,888
42,809
1,262
51,959
1,184
18,410
8,212
4,501
519
9,962
2,654
39,696
2,985
7,483
7,186
-
102,792
61,936
678
1,410
3,141
8,061
(1,038)
885
832
127
5,169
55,461
13,739
150,401
400
3,479
3,879|
|---|---|---|
This page does not form part of the statutory financial statements
Page 38
## **NAVNAT VANIK ASSOCIATION OF THE UK**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Finance**
**Governance costs**
Accountants' fees
Auditors' remuneration
Accountancy and legal fees
Annual general meeting
Total resources expended
**Net income**|2021
£
8,450
6,500
964
1,980
17,894
315,175
379,938|2020
£
8,068
6,500
5,806
2,659
23,033
332,064
258,833|
|---|---|---|
This page does not form part of the statutory financial statements
Page 39