Registered number: 11491073 Charlty number: 1179626 JAPAN HOUSE LONDON TRUST (A company limited by guarantee) ANNUAL TRUSTEES, REPORT (INCLUDING THE STRATEGIC REPORT) AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 JAPAN HOUSE LONDON TRUST CONTENTS Pages Trustees, report Iln¢luding th• strategic roPOrtI Independent auditorfs report 8-11 Consolidated $tatement of financlal actl¥ltles lincorporating Income and expenditure aceountl 12 onsolidated balance sheet 13 Company balance sheet 14 Consolldatgd statsment of cash flows 15 Noles lo the financial statements 16-30 JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT IINCLUOING THE STFiATEGIC REPORT FOR THE YEAR ENDED 31 IMRCH 2024 The Trustees, who are also directofs for the purposes of company law, present their report together with the audited Consolidated Financial Statements of Japan HoLJse London Trust l°JHLT' or "the Parent Company" or the Trusl or "the Charitable Company") and its subsidiary undertakings, Japan H.L. Limf(ed I'JHLL") and Japan H.L. Enterprises Limited l°JHLE"I (collectively'lhe Group") for the year ended 31 March 2024. The Trustee5 confim that the Annual Trustees, Report {including the Strategic Report) and Consolidated Financial Slatemenl$ oflhe Group and the Parent Company comply with the Charities Act 2011 and where relevant, the Chariiies Act 2022, the Companies Act 2D06. the Trust's Memorandum and Articles of Association, and A¢¢ounling and Reporting by Charities.. Slalement of Recommended Practi￿ applicable lo charsties preparing their accounts in accordanee wtth the Financial Reporting Standard applicable in the UK and Republic of I￿land IFRS 1021 l°Charilies SORP FRS 102.1 REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS Memorandum atyl Artides of Association Govemlng Instrumgnt M8mbers His Excellency Ambassador Hajime H?y?$hi Sir Alexander David Warren Ms Keshini Navaralnam Mrs Phillida A Purvis Rt Hon. Lord Christopher Francis Patlen of Bames {Resigned on 29 Juty 2024> Trustees la150 the $tstutory Diroctors of the Charitsble Company) His Excelkncy Ambassador Hajime Hayashi Ms Keshini Navaratnam Mrs Phillida A Purvis Sir Alexander David Warren Mr Satoru Yoshida Mr Yukinobu Nakano (Appointed on 24 October 20231 Mr Saloru Ichinokawa IAppoinled on 27 March 20241 Lord William Arthur Waldegrave IAppoinled on 30 July 20241 Mr Akihiko Takada (Resigned on 24 October 20231 Mr Takanori Sazaki (Resigned on 7 December 20231 Rl Hon. Lord Christopher FranGi$ Patten of Bam8s IRes*Jned on 29 July 20241 Executlve Chaimian His EXcel￿neY Ambassad¢r Hajime Hayashi Page 1 JAPAN HOUSE LONL)ON TRUST ANNUAL TRUSTEES, REPORT ICONTINVEDI {INCLUDING THE STRATEGIC REPORTI FOR TME YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS Icontinuedl Objects ofcharitsble Company The Objec15 01 the Trust are for the public benefrt-. al to advance the culture (both Iradrtional and modern), insli(Lrtions, people, hBlory, and language of Japan, and also of Japan's intellectual, artistic, Scientif￿ and economic life.. b to promote cullural relationships between people in Japan and pegple in the United Kingdom; cl to promote learning and advance all forms of education relating lo Japan., dl lo promote research in any of the above,. el lo publish the useful results of such resear¢h and D the furtherance of such other exclusively charitable thjecls as the Trustees in their absolute discretK)n may delemiine. Solicitors Fa¥rer & Co LLP 66 Lincoln's Inn Fields London WK2A 3LH Bank8rs HSBC UK 8ank Pk 94 Kensington High Street London W8 4SH Audltor Rawlinson & Hunter Autjit LLP ststulory Auditor Chartered Accountants Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ Charitable Company Address & Registered office Japan House London 101 111 Kensington High Street London W8 5SA Charity R8gistratlon Number 1179626 Company Registration Number 11491073 Page 2 JAPAN House LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI IINCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT The Charitable Company is a registered chariiy Icharily number 1179626} limited by guarantee, wht)se principal object is to support charitable purposes in whatever manner the Trustees, in their absolute discretion, think fit. The Trvslees, overriding aim is.. a) lo advance the culture {both traditional and modern), instilulKJns, Feople, history, and language of Japan, and also of J2pan'5 Intell￿tual, artistic, scient￿lC and economic life, bl lo promote ¢uf(ural relationships befyveen people in Japan and people in the United Kingdom, c} lo promote learning and advance all fomis of education relating to Japan, dl lo promote re5eaich in any of the above,. el to ptjblish the useful results of such research and D the furtheran¢e of such other exclusNely charitable objects as the Trustees in their knolute discretion may detemiine. On 17 June 202D, the subsidiary, Japan H.L. Limited I'JHLL'I, acquired a 1 OOV• shareholding in a newly incorporated company, Japan H.L. Enterprises Limited I'JHLEL'I, and on 30 September 2020, JHLEL acquired the business, assets and operations of The Shop al Japan House London from Salt and Welcome UK Lirniled Satt and Wekome UK Limited was a lenanl ol JHLL. JHLL is Ihe principal seNiee provider to the Japan House London Project on behalf ol the Japanese Ministry of Foreign Affairs I'MOFA'}. These services included, and continue to be." operating a safè and welcoming public venue,. aTrJ enhaneing the project through promotional activities and events. The provision of the Japan House London Project on behalf of MOFA was through a direct funding arrangement wrth MOFA for the operation of the Japan House London Project. In March 2024, JHLL entered into a new contract wrth MOFA for the owralion of the Project lo Mareh 2029. Oryanisation The Trustees ol the Charitable Company rneel to discuss overall strategy and to determine how best to direct Ils resources to meet it5 objectives. Japan House London Trust has an Executive Chairman who oversees the overall strategy and the ¢harf(able activities. The responsibilities of the ExeeLrtive Chairman and the Trustees have been agreed and documented. Appolntmem of Trustees The appointment of Trustees is governed by the Articles ol Association of the Charitable Company. Trustee inductlon and trainlng New Trustees meet with the Executive Chairman and are made aware of their legal Obligat￿nS under Charty Law and Company Law, the decision-making processes al the Charf(able Company, ils strategic aim5 and recent performan￿. On appointment the Trustees are asked to adopt the Code of Good Governance. Trustees are involved in specific pieces of work in Ihelr areas of expertise and undertake visrts to relevant events and activit￿S organised by the Trust. Relatsd partle$ Related parties, transactions are disclosed in the Note 22 in the Financial Stalemenls. Page 3 JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES. REPORT ICONTINUEOI (INCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCEAND MANAGEMENT Icontinuedl Pay pollcy for senior staff The Trustees comprise the key man￿ement personnel of the Trust who are in charge of directing, controlling, running and operating the Trust The Trustees give their time freely and receNed no remuneration during the year ended 31 March 2024 nor previous period. There are no staff other than the Trusteès in the Trust. The number of staff in the Group is disclosed in Note 8. Internal Controls The Trustees have overall responsibility for ensuring that the Trust has appropriate sy$lem$ of internal controls. They ar8 also responsible lor keeping proper accounting records which disclose with reasonable accuracy al any lime the finan¢ial position of the Charrtable Company and Group. The Trustees are 81s0 responsible for safeguarding the assets of the Charitable Company and GroLtp and hence for taking reasonable steps towards the prevention and detection of fraud. The system of internal Gontrds is dosigned lo provide reasonable, bul not absolute, assurance against material misstalemenl or loss. Governance and Risk Management A risk assessment has been undertaken whiGh compris&s.' an annual review of the risks the TN$l and Group may face., the eslablishmenl of systems and procedures to mitigate those risks,. and the implemenlalion of prt)cedures designed lo minimise any potential impact on the Trust and Group should those risks malerialise. This continuing prtxess will Identify risk afeas to which the Group is vulnerable and highlight any necessary safeguards that will need to be pul in place. The Trustees are of the opinion that an adequate risk management process is in place al the Group, whereby key risks lacing the business are documented and reviewed. The Trustees, along wfth the Board of DirecloTS in JHLL, monitor the progress of the Group by referen¢e to certain financial and non-financial key performance indicators. for example, number of visitors lo Japan House London. Key risks for JHLL and hence for the Group are visitor numbers and exhibitions. The success of JHLL arsd the Group is largely dependent on visitor numbers and a strong public Programme. The Group liaises closely with MOFA regarding expectations of forth¢orning events and exhibitions The level ol visitors may also be affected by major events in London, such as security issues or disruption lo international travel. The current perfomiance environment of "high slreev, retail and other global factors which may affect JHLL and the Group are also closely monitored. In addition, the Trustees h8ve taken due consideration of Good Governan¢e- A Code for the Vclufilary and Community Sector, ensuring that the six main principle5 of this Code arè adhered lo. These are., Organisalional purpose., Leadership., Inlegriiy., Decision-m8king, risk and control., Board eff￿liveneSs., Equality, diversity and inclUs￿n,. and Openness and a¢counlability. The Trustees Tecogntse that good governance plays an essential part in securing the future of the Trust and confirm that the said main principles of this Code are lollowèLI by them in leading, directing and managing the Trust and Group. Page 4 JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI (INCLUDING THE STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (contlnuedl Ongolng geopolitical conflicts and economk ImpaGts The ongoing geopolitical conflicts and economic impacts thereof have undoubtedly had an effect on UK companies in a wide ranging manner, potentially affeding theiT operational capability, liquidily and financi81 posrtion. The Twstees have considered the implications and have pui in place business continuity plans that shoulty allow the Charrtable Company and the Group to continue in operation. Financial key perfom)an¢e indicators The results ofthe Group showtotal net income f￿the year of £913,610 (2023.. £457,663) and total funds carried forward 01 £4,361,458 (2023.- £3,447, 848) Fundralslng The Trustees have referred lo the Code of Fundraising Practice l.the Code.) wh￿h was developed ty the fundrasing community throu9h the work of the Institute of Fundraising and Public Fundraising Association, and the Guidance on Charities and Fundraising issued by the Chartty Commission I'CC20°1 and the Charities IProtection and Soci81 Investment) Act 2C>16 I'lhe Acl°l. They confirm that the Code, CC20 and the Act have no impact on the Charitable Company as it does not engage in any public fundraising activities. Policy on Reserves The Trustees have established a reserves policy lo ensure the financial stability of the Trust and ils trading subsKliaries, recognising the Trust's reliance on I￿ome generated by the subsidiaries. The policy sets a largel to hokl reserves equivalent lo nine lo twelve months, consolidated operating expenses. The balance held as unrestricted funds as at 31 March 2024 ofthe Group was £4,361'45812023. £3,447,848). The nel assets of the Trust are regarded as Un￿strICted and the available funds al 31 March 2024 will be spent in future per￿d$ in accordance with the Trust's charitable 0￿.8¢ts. This level of reserve5 provides a finoneial buffer against unforeseen risks, ineome fluclualions, and operational nee(Is, ensuring the suslainabilily of our charitablè activities. The reserves policy is reviewed annualty to refflect changes in financial risks, income sources, 8nd future plans. STRATEGIC REPORT OBJECTIVES. ACTIVITIES. FINANCIAL REVIEW AND FUTURE PLANS The objectives of the Trust are such exclusively charitable purposes as the Trustees may in their absolute discrelpJn determine but not limited to advancing the cullure of Japan for the publ￿ benefit by making grants lo organisalions and charitablè projects. The Trustees may use the income and the capital of the Charitable Company in promoting the objectives of the Trust. During the year, JHLL presented exhibitions, demonstrations, talks and events in Japan House and online shtrucasing aspects of Japanese cukure on beh81f of the Trust. The Trust made grants to eight organisalions lo promote further educalion in Japanese language and culture during the year. The Trustees have continued lo develop and refine their strategies, policies and procedures lo further the objedives of the T"rusl and keep these under constant review. The results of the Group activities for the year are detailed on page 12. Page 5 JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI (INCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES, ACTIVITIES. FINANCIAL REVIEW AND FUTURE PLANS {contlnuedl Plans for Future Periods The Trustees do not propose lo deviate from the current objectThies and activities of the Trust. The Trustees are actively considering proposals for funding of projects which will supplement and ex1end the work done by JHLL, identifying aetivilies to fostei relal¥)nships wf(h appropriate orginisalions and give weight lo future work beyond the Japan House London building. STATEMENT OF PUBLIC BENEFIT The Trustees are aware of the Charty Commission guidance on Public Benefrt and confirm that they have eomplied wrth the duty In Section 4 of the Charities Act 201110 have due regard lo (t. They consider the infomiation in this annual report, abolrt the Trust's aims, activities and achievements in the areas of interesl that the Trust supwrts, deny)nstrates the benefit to ils beneficiaries and through them lo the public, which arise from those aclivilies. TRUSTEES, RESPONSIBILITIES STATEMENT The Trusteès {who are also directors of Japan House London Trust for the purpose$ ol company lawl are responsible for preparing the Annual Trustees, Report (including the Strategic Reportl and the financial stslemenls in accordance with applicabte law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Practice). Company law requiwes the Trustees lo prepare financial statements for each financial year. Under company law, the Trustees musl not approve the financial slalements unless they are satisfied that they give a true and fair view of the slate of affairs of the Charitable Company and the Group and of the incoming resources and application of resources. including the income and expendi(ure, of the Group forthal peri¢)d. In preparing these financBI statements, the Trustees are required to.. select suitable accountin9 policies and then apply them consislenlly,. observe the melttods and principles in the Charities SORP 2019 {FRS 1021., make judgements and estimates that are reasonable and prudent., slate whether applicable UK accounting standards have been lolloweij, subject to any material departures disc105ed 8nd explained in the financial slalemenls., and prepare the financpl statements on the goiro concern basis unless it is inappropriate to pre$urn8 that the Charitable Company and Ihe Group will continue in opèration. The Trustees are responsible for keeping ad￿U?18 accounting records that disclose with reasonable accuracy al any lime the financial position of the Charitable Company and the Group and enable them lo ensure that the financial stslements comply wbth the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and the Group and hence for taking reasonable steps for the prevention and detection ol fraud and other irregularities. In so far as the Trustees are awafe.. there is no relevant al￿11 Infomial￿n ol wh￿h the Charitable Company's and the Group's auditor is unaware,. and the Trustees have taken all steps that they ought lo have taken lo make Ihemsefves aware of any relevant audit Infomialion and to establish that the a(￿ltor is aware of that information. The Trustees are responsible for the maintenance and inlegrSly of the wrporate and financial infomiatv)n included in the Charitable Company's websrfce. Legislation in the United Kingdom gov8rnin9 the preparation and dissemination of financial ststerllenls moy differ from legisLglion in other jurisdictions. Page 6 JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI IINCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2024 Approved by the Twstees and signed on their behalf by Satoru Yoshi'.la i Dec 18, 7014 14."07 GMT) Mr S*oru Yoshida Trustee Date.. 18 DEC 2024 Page 7 JAPAN HOUSE LONDON TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAPAN HOUSE LONDON TRUST OPINION We have audi(ed the financial statements of Japan House London Trust I'the Charitable Company l and subsidiaries {'Ihe Group'l for the year enLled 31 March 2024 which comprise the Consolidated Statement of Financial Activities {incorporaling Income and Expenditure Accounll, the Consolidated and Charitable Company B81ance Sheets, the Consolidated Statement of Cash Fbws and notes to the financial stalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applieable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the slate of the Group's and the Charitable Company's affairs as al 31 March 2024 and of the Group's incoming resources and application of resources, including ils inc¢Jne and expenditure for the year then ended., have been property prepared in a￿rdance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in aecordance with the requirements of the Companies Act 2(Kl6. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing IUKI IISAS (UKII and applicable law. Our responsibil((ie5 under those stsndards are furthèr described in the Audrtor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Charitable Company in accordance with the ethical requirements that are relevant to our audrt of the financia5 statements in the United Kingdom, includir the Financial Reporting Council's Ethical Standard, and we have fuwilled our other ethical responsibil(ties in accordance with these requirements. We belwe that the audit evidence we have obtained is Slrfficienl and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial slatements, we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial Statements is appiopriate. Based on the work we have perfomied, we have not identified any material uneertainlies relating to events or conditions Ihal, individually or colleclwely, may cast signrficant doubl on the Group and charitab￿ Company's ability lo continue as a going concern lor a period of al least twefve months from when the financial statements are authorised for issue. Our responsibilrties and the respon5ibililie$ of the Trustees with respect to going concem are described in the relevant se¢tions of this report. OTHER INFORMATION The other inform81ion comprises the information included in the Annual Trustees, Report (including the Strategic Report} and the Consolidated Financial Stslements, other than the Consolidated Financial Slalemenls and our Auditor's report Ihereon. The Trustees are responsible for the other infomalion. Our opinion on the financial slalements does not cover the other information and we do not express any form of assurance conGlusion Ihereon. In cgnneclion with our audk of the financral statements, our responsibilty is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financkql statements or our knowledge obtainetj in the course of the audr( or otherwise appears lo be materi81ty misslaled. If we idenlfy such material inconsistencies or apparent material misstslemenls, we are requireil to determine whdher this giv8s ris8 lo 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 infomation, we are required to report that fact. We have nothing to report in this regard. Page 8 JAPAN HOUSE LONDON TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OFJAPAN HOUSE LONDON TRUST ICONTINUEDI OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Annual Tru51ees' Report (incorporating the Strategic Report and the Directors, Report prepared for the purposes of company lawl for the financial year for which the financial slalements are prepared is consistent wrth the financial statements. the Annual Trustees, Report {ineorporating the Strategic R8POrt and the Diredors. Reportl hav& been prepared in accordance with applicable le9al requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the Group and the Charitable Company and ils environment obtained in the course of the audit, we have not identified material misslalemenls in the Annual TTuslees' Report lincorporaling the Strategic Report and the Directors. Report). We have nothing lo report in respect of the following matters in relation lo whi¢h the Companies Act 2006 requires us lo report lo you rf, in our opinion_. the Charitable Company has not kept adequate accounting records, or retums adequate for our audr( have not been received from branches not visited by us", or the Charf(able Company financial slalements are not in agreement with the accounting records and returns., or certain disclosures of Trustees. remuneration specified by law are not made,, or we have not re¢gived all the Information and explanation$ we require for ouraudil. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees, Responsibilities Statement on page 6, the Trustees (who are also the directors of the Charitable Company for the purposes of company lawl are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial slalemenls that are free from m*erk?I misstatement, whether due to fiaud or errtx. In preparing the financial statements, the Trustees are responsible for assessing the Group's and the Charitable Company's ability lo continue as a going concem, disclosing, as applicable, matters related lo going toneern and using the going concern basis of accounting unless the Trustees either intené lo IiquKlate the Group or the Charitabl8 Company or lo Cease operations, or have no realist￿ alternative bul lo do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are lo obtain re8s0nable assurance about whether the fi'nancial statements as a whole are ffee from material misslalemenl, whether due lo fraud or error, and lo issue an Audilorf$ Report that includes our opinion Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are COllSKJered material rf, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, Including fraud, are ins13nces of non Page11 JAPAN HOUSE LONDON TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Funds Total Funds Total Funds (AII unreslriGted) 2Q23 2024 2024 Note INCOME FROM: Other trading aclivities 11,132.992 11.132,992 9.959,991 TOTAL INCOME 11,132,992 11,132,992 9,959,991 EXPENDITURE ON: Cost of other trading activities Charitable activities TOTAL EXPENDITURE 9,849,549 119,283 9,964.832 9,845,549 119,283 9.964,832 9,422,444 40,350 9.462, 794 Net Incomé before Taxation 1.168.160 1,168,160 497,197 TAX CHARGE 254.S50 254,550 39,534 NET INCOME BEFORE OTHER RECOGNISED GAINS AND LOSSES 913 610 913,610 457.663 NET MOVEMENT IN FUNDS 913,610 913.610 457,663 RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD 3,447,848 4,361 458 2,990, 185 3 447.848 4 361 458 The Consolidated Statement of Financial Activities include all gains and losses recognized in the period. All income and expenditure derived from cor¢linuing acllvllies. The notes on pages 16 to 30 form part ofthese financial statements. Page 12 JAPAN HOUSE LONDON TRUST CONSOLIDATED BALANCE SHEET AT 31 MARCH 2024 Registor•d number'.11491073 Charity number:1179626 31 March 2024 31 Marth 2023 Noto FIXED ASSETS Intangible assets Tangibl8 assets 10,11 12 44,378 215.261 151, 181 200, 727 259,639 351,908 CURRENT ASSETS Stock Debtors Cash at bank and in hand 13 14 15 274,015 2.828,362 6,914,616 10,016,993 206,676 2,531, 456 7 874 464 10,612,596 CREDITORS: amounts falling due within one year NET CURRENT ASSETS 16 3,761.550 5 018 058 6.255 443 5,594,538 TOTAL ASSETS LESS CURRENT LIABILITIES 6,515.082 5,946,446 CREDITORS: amounts falllng due after more than one year 17 {1,301,410} (1,550,000) PROVISIONS FOR LIABILITIES Other provisions 19 852 214 48,598 NET ASSETS 4.361,458 3 447,848 CHARITY FUNDS Unrestricted funds SHAREHOLDERS. AND CHARITY'S FUNDS 4361.458 3,447,848 361458 3 447 848 The financial statements were approved by the Trustees and aulhorised for issue and signed on their behaff by.. Satoru Yosh'.d,i (Dec 18. 2024 14..07 GMT) Mr Saloru Yoshida TrLJslee Date.. 18 DEC 2024 The notes on pa995 16 to 30 form part of these finantyal statements. Page 13 JAPAN HOUSE LONDON TRUST CHARITABLE COMPANY BALANCE SHEET AT 31 MARCH 2024 Roglstered number.. 11491073 Charity nI￿nber.4179s26 31 March 2024 31 March 2023 FIXED ASSETS Investments 23 CURRENT ASSETS Debtors Cash al bank and in hand 14 15 7.921 851,167 859,088 7,921 831,363 839,284 CURRENT LIA81LITIES Creditors - amounts falling due wrthin one year 16 11,820 CURRENT ASSETS 808,183 827,464 TOTAL ASSETS LESS CURRENT LIABILITIES 808,184 827.465 TOTAL NET ASSETS 808.184 827,465 THE FUNDS OF THE CHARITABLE COMPANY Unrestricted income fund 808,184 827.465 TOTAL CHARITABLE COMPANY FUNDS 808,184 827.465 The Charitable Company has taken advantage of the exemption allowed under section 408 of the CompanÈs Acl 2006 and has not presented ils own Slalement of Financial Activities in these financial slalements. The financial statements We￿ approv8d by the Trustees and aulhorised for issue and signed on Iheir behalf by: Satoru Yosliida IDec 18. ?024 14.-07 GMTI Mr Saloru Yoshhd8 Twslee 18 DEC 2024 The notes on pages 16 19 30 foTm part of these finon¢ial statements. Page 14 JAPAN HOUSE LONDON TRUST CONSOLIDATED STA TEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Nol• CASH FLOW FROM OPERATING ACTIVITIES.. Nel movement in funds ADJUSTMENT FOR: Depreciation of tangible assets Amortisalion of intangible assets Tax charge Increase in stock {Increaselldecrease in debtors {Decreasellincrease in credf(ors {DecreaselJincrease in provisions Tax paid 913.610 457,663 12 10,11 59.308 106.802 254,550 167,3391 {299,970) 11,741,367) 196,384) (15,2161 46,573 106, 802 39,534 (33,407) 66,271 1,492,004 38.598 (145,591) 13 14 16.17 20 NET CASH GENERATED FROMIIUSED INI OPERATING ACTiwfiES 886,006 2,068,447 CASH FLOW FROM INVESTING ACTIVITIES: Purchases of fixed ?ssels NET CASH USED IN INVESTING ACTIVITIES 12 3.842 73,842 19.411 19.411 CASH FLOW FROM FINANCING ACTIVITIES: Decrease in other loans NET CASH USED IN FINANCING ACTIVITIES 16 1.408 CHANGE IN CASH ANO CASH EQUIVALANTS IN THE YEAR Cash and cash equivalents brought lon￿8[ CASH AND CASH EQUIVALENT CARRIED FORWARD 1959.8481 7 874,464 1,97T, 628 5 896 836 15 6 914.616 7 874 464 The notes on pages 16 to 30 fom) part of these firt8nLial ststèments. Page15 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GENERAL INFORMATION Japan House London Trust I'the Trust. or 'lhe P3renl Company. or 'lhe Charitable Company'l is a registered charity (charity number 11796261 limited by guarantee, whose principal object is to support charitable purposes in whatever manner the Trustees, In their 8bsolule discretion, think fil. The address of the registered offi'ce is 101 111 Kensington High Street, London W8 SSA. The Trustees, overriding aim is.. al to advance the culture (both traditional and modern), inslitulions, people, history, and language of Japan, and a150 of Japan's inlelleclual, artist￿, scientific and economic life., bl lo promote cultural relationships between people in Japan and people in the United Kingdom., cl lo promote learning and advance all forms of education relating lo Japan,. dl lo promote research in any of the above," e} lo publish Ihe useful results of such research and fj the furtherance of such other exclusively charitable objects as the Trustees in their absolute disCret￿n may delerming_ In the event of the Trust being wound up, the liabilrty in respect of the guarantee is limlted lo £1 per member of the Charitable Company. ACCOUNTING POLICIES 21 Basis of preparatlon of finaneialstatemènts The financial slalements have bèen prepared in accordance with Accounting and Reporting by Charities.. Slalemenl of Recommended Practi￿ applicable to ¢hari(ie5 pieparing their aceounls in accordance with the Financial Reportirig Standard appli¢able in the UK and Republic of Ireknd IFRS 1021- (Charilies SORP IFRS 102}I, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102), The Charities Act 2011 and, where relevant, the Charities Act 2022, and the Companies Act 2006. The Trust meets the definiiion of a public benefit enlrty under FRS 102. The Consolidated Statement of Financial Activities ISOFAI and the Consolidated Balance Sheet consolidate the financial 5talemenls of the Trust and ils subsidiary undertakings I'lhe Group"). The res￿￿9 of the subsidiaries, Japan H.L. Limrted l JHLL.) and Japan H.L. Enterprises Limited I'JHLE'}, are consolidated on a line by line basis. No separate SOFA has been presenled for the Trust akjne as pemilled by section 408 of the Companies Act 2006. The n81 income and expendilureforlhe year dealt within the accounts of the Parent Companywas net expendituro of £19,281 (2023.. nel income of £59, 649). The financial statements are prepared in Sterling GBP which is the functional cunEncy of the Charf(able Company & its subsidiaries. JHLL and JHLE. The preparation of financial statements in compliznce with FRS 102 requires the use ol Certain eri(ical accounlir@ estimates It also requires management lo exercise judgment in applying the Group's accounting polieies (see Note 2.22 belowl. Basls ol consolidation The consolidated financial staternents present the resuhs cf the Trust and its own subsidiaries as if they form 8 single enlrty. Intercompany transactions and balance$ between group companies are therefore eliminated in full. The consolidated financial statements incorpoiale the resums of business combinations relating lo the SLJbsidiaries using the purchase rnelhod. In the Consolidated Balance sheet, the acquiree's identifrable assets, liabilities and conlingenl liabilitie$ are ini118lly recognised at their fair values at the acquisrtion dale. The results of acquired operations are included In the Consolidated Sialemenl of Financial Activities from the dale on which control 1$ obtained. They are deconsolidaled from the date control ceases. The notes on pages 16 to 30 lomi part of these financial statements. Page 16 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 ￿RCH 2024 ACCOUNTING POLICIES Icontinuedl 2.2 Going concem At the Ba18nce Sheet date, the Group and the Parent Company had net assets of £4,361,458 {2023.' £3,447,848) and £808.18412023.' £827,465) iespeclively and cash balance of £6,914.61612023.' £7,874,464} and £851,167 {2023: £831,363) respectively. The ongoing geopolitical conflicts and economic impacts thereof have Undoubted￿ had an effect on UK companies in a wide ranging manner, potentially affecting their opetational capability, liquidity and financial position. The direelors have considefed the implications and have put in place business continuity that have allowed the CroLJP and the Parent Company to continue in operation. The directors have also reviewed the Group's and the Pareth Company's current and expected liabilities and cash ouiflows arising from ils activty over the next twelve months. Tha diTeclors Sre confident that the Group and the Psrent Company will be able to meet ils liabilities as they fsll due for a p8rvJd of at least twelve months from the date of si9nalure of the financial statements. The financial statements have been prepared on the going concern basis. 2.3 Ineome from trading actlvlties Revenue eained includes service revenue eamed by charging a margin on costs Teimbutsed from the Japanese Ministry of Foreign Affairs I'MOFA'I. In addition, JHLL has earned rent revenue rekted to concession agreements to use certain areas oflhe Japan House London premises. The Group has adopted the accounting policies below lo aceount for this rent revenue.. the area of the Japan House London premises occupied by tenants is dislinguishod into categories, principal and agency, based on a¢livilies they conducl", rent revenue derived from the area acting as principal is recognised gTOSS', and rent revenue derived from the area acting as agency is recognised net. Revenue is re¢ognised lo the exlenl that il is probable that the economic benefts will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration re¢eived or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue earned also includes income from sale of goods by JHLE. The following criteria musl also be mel before revenue 18 iecognised.. Revenue from sale of goods Revenue from the sale of 90gd$ is recognised when all of the following conditions are $ati$fied'. the Group has transferred Ihg Signrficant risks and rewards of ownership lo the buyer". the Group retains neither continuing managerial Involven￿nI lo the degree usualty ass¢xigled with ownership nor effective control over the goods sold", the amoLJnt of revenue can b8 measured reliabty., it is probable that the Group will receive the consideration due under the transaction". and the c051s incurred or lo be incurred in respect of the transaclK)n can be measured reliably The notes tsn pages 16 to 30 ftsmi part of these finanthal Statements Page 17 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Icontinuodl 2.3 Incomg fn)m trading activitles (¢ontlnued) Rendertng ofservices Revenue from a contrad lo provide services is recognised in the year in which the Servi￿ are provided in accordance wiih the stage of coMp￿10n of the contract, when all of the following condf(ions are Satisfied.. the amount of revenue can be meaSU￿d reliabty., it is probable that the Group will receive the consideration due under the conlracl., the stage of completion ol the contract at the end of the reporting year can be measured reliably., and the costs incurred and Ihe costs to complete the contract can be ffleasured reliabty. 2.4 Donation Income Income is reco9nised by the Trust onGe il has entitlement to the funds and rt is probable that the funds will b6 received by the Trust and the monetary value of incomin9 resources can be measured with sufficient reliabilrty. Donated services and facilities are included at the value lo the Trust where this can be quantif￿. Donation income in the Twsl is deferred when the donations are reeeived in advan￿ and specified by the donor as relating lo specific accounting period5,' OT alternatively which are subject to condf(ions whieh are still to be met and which are culside the control of the Trust., or when il is uncertain whether the condrtions can or will be mel. These are defeired lo the year lo which they relate and released lo in¢omin9 resources in that period. 2.5 Inveslment Income Investment incom? represents interest receivable from bank deposf(s. 2.6 Cost of trading and chJpTtablé actlvldes All expenditure is accounted for on an accruals basis and has been classrfied under headings that aggregate all costs related to that category. Expenditure is recognised where Ihere is al￿al or constructive obligation lo make payments to third parties, il is probable that the seltlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT i¥ eharged as an expense against the activity for which expenditure arose. 2.7 Status of funds Unrestricted funds are funds which are available for use 01 the discretion of the Trustees in furtherance of the general objectives of the Ch8rilable Company. The notes on pages 16 to 30 fomi part ol trgse finanual statements. Page18 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Icontlnuedl 28 Current and deferred taxation The lax expense for the year comprises eurrent and deferred lax for the subsidiaries trading company. Tax is recognised in profrt or 105s except that a charge attributable lo an item of income and expense recognised as other comprehensive ineome orto an item recognised directly in equity is aL80 re￿gnised in other comprehensive income or directly in equty respectively. The current income Lgx charge is Calculated on the basis of tax r8tes and laws that have been enacted or substantively enacted by the reporting dale in the countries where the Charitable Company operates and generates income. Deferred lax balances are recognised in respect of all timing differe￿e5 that have onginated but not reversed by the Consolidated Slalemenl of Financial Position ¢Jate, except Ihal.. The recognrtion of defer￿ tsx assels is limited to the exlent that it is probable that they will be recovered against Ihe reversal of deferred tax liabilities or other future taxable profrts.. and Any deferred lax balances are rev8rsed rf and when all condrtions for retaining associated tax allowances have been met. Deferred tax balances are not reeognised in respect of pemianent differen¢es except in respect of business combinations, when defeired tax is recognised on the differences between the fair values of assets acquired and the futLJre lax deductions available for them and the differences befv4een the fair values of liabilities acquired and the amount that will be assessed for lax. Deferred tax is determined using lax rates and laws that have been enacted or substanlThi&ly enacted by the reporting dale. The Trvsl is an exempt charity within the meaning of Schedule 3 of the Charities Act 2011 and is considered lo pass the lesls set DUI in Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a Trust for UK corpoialion tsx purposes. 29 Forelgn ¢uffencles The Parent Company's and Gr¢up's functional and presentation81 currency is SleTling GBP. Mon8lary assets and liabilities denominated in foreign currencies are Iran51aled into Sterling at rates of exchange ruling al the Balance sheet date. Transactions in foreign currencies are translated into Sterling GBP ai the rate ruling on the date of the Iransaclion. Foreign exchange gains and losses resulting from the sett￿ment ol transactions and from the tranSlat￿n al period-end 8xchange rates of monetary 8ssets and liabilitie5 denominated in foreign currencies are reco9nised irb the Consolidated Slalement of Financial Aclivilies. 2.10 Pensions The Group operates a defined contribution pension scheme for ils employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate enllty. Once the conlrbutions have been paid the Group has no fvrther payment obligations. The ¢onlribulions are reeognised as an expense in the Consolidated Statement of Financial Activities when they fall dLJe. Amounts not paid are shown in accruals as a liability in the Consolidated BaLonce Sheet. The assets to the plan arè held separately from the Group in independently admirbisteied funds. The notes on pages 18 to 30 form part olthese finanoal statements. Page 19 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (continued) 211 Operating leases.. JHLL as lessee Rentals paid under operating leases are charged lo profil or loss on a slrai9hl line basis over the lease term. 8enefrts (eceived and receivabb as an incentwe lo sign an ¢Jperaling lease are recognised on a straight line basis over the lease term, unless another systematie basis is represenL*ive of the lime pattern of the lessee'$ benefit from the use of the leased asset. 2.12 Intanglble assets- webslte developmènt Directly ?ttribut8ble website development c051s incurred in the creation of the website are initially recognised al cost and amortised over its expected useful life of 5 years. After reeognilion, under the cost modd, inlangib assets are measured al cost less any accumulated amortlS81ion 8nd any aGGumulaled impaimienl losses. 2.13 Intangible assets- goodwill Goodwill represents the differenee belween amounts paid for the cost of a business combination and Ihe aoquirer's interest in the fair value of the group's share of the identrfiable assets and liabilities of the acquiree al the date of acquisrtion. Subsequent lo ini1181 recognition. goodwill is measured al cost 18ss xcurnulated amortisalion and accumulated impeirmenl losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Financial ActNilies over ils useful economic life of 5 years. 2.14 Valuatlon of InvestsFJ•nts Inveslmenls in subsidiaries are measured at cost less accumulated impaimwil in the Parent Company's accounts. 2.15 Tangible Ilxed assets and depreciation Tangible fixed assets under the cost model are Stated at historical cost less accumulated depreCIat￿n and any aecumulated impairment losses. Historical cost includes expendrture that 15 directly attributab5e lo bringing the assèt lo the location and condf(ion necessary for il lo be Gapable of operating in the manner intended by management. However, capitalisalion is delemiined by what services are provided in each lOCat￿n. Where JHLL acts in a principal aelivily, fixed assets will be capilalised. In certain instances where leasehold improvements are reimbursed ultimately by MOFA and there is no econornic benefit to JHLL and the Group. these assets are not ¢aprtalised on the Balance Sheet of JHLL and the Group. Depreciation is charged so as to albcale the cost of assets less their residual value over their estimated useful lives, using the straighl-line method. Short-lerm leasehdd improvement straight line basis over the initial term to the expected lease end dale 1 O¢A redueing balance melhoj Fixture and frtlings The 8ssets' residual values, us8lul lives and depreciation methods are reviewed, and adjusted prospeclwely appropriate, or rf there is an indication of a swnrficanl change since the la$1 reporting éale. Gains and losses on disposals are detemiined by comparing the proceeds with the carrying amount and are cognised in profil or loss. The notes on pages 16 10 30 fom) part of Ihesg finan￿al stslements. Page 20 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Icontlnuedl 216 Stock Stocks are slated al the lower of cost and net realisable value, being the estimated selling price less Costs to completè and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. Al each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced lo its selling price less eosls to complete and sell. The impairmenl loss is r￿ognIsed immediately in pror or10sS. 2.17 Debtor Trade and olher debtors are recognised at the settlement amount after any trade discounl offered. Prepayments are valued at Ihe arnount prepaKI net of any trade discounts due. 2.18 Cash and cash equlvolent Cash represents cash al bank and in hand includes cash and short term highly liquid investments with a short m*urily of three months or less from the date of acquisrtion or opening of the deposit or similar account. 2.19 Creditors Short term creditors are measured at the transaction price. Other financial Ikqbilll￿$, including bank loans, are measured inf(ially al fair value. n&1 of transaction costs, and are measured subsequently * amortised eosl using the effedive inl&resl m8lhod. 2.20 Provislons for liabilltles Provisions are made where an event ha$ tsken place that gives the Group a legal or conslrtjctwe cbligalion that probably requires settlement by a transfer DI economic benefit. and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense lo profil or loss in the year that the Group becomes aware of the obligation, and are measured al the best estimate atlhe Consolidated Statement of Financial POSrt￿n dale of the expenditure required lo settle the obligation, taking Into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Consolidated Statement of Financial Position. 2.21 Financial Instrunlents The Group only enters into basie financial instrument transactions that result in the recogniti￿7 of financk41 assets and liabilit￿$ like tradè and other debtors and creditors, loans from banks and olheT third part*s, loans to related part*s and investments in ordinary shares. Thg notes on pages 16 10 30 fomi part ofth*& finanual ststemerbts. Page 21 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES qcontlnued) 2.21 Financial Instruments {contlnued) Debt instruments lolher than those Whol￿ repayable or receivable within one yearl, including loan5 and other accounts receivable and payable. are initially measured al present value of the future cash flows and subsequently al amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically tradè debtors and creditors, are measured, initially and subsequently, at the undiscounled amount of the cash or other consideration expected lo be paid or received. Howevei, if the arrangements of a short-term instrument conslilule a financing Iransaclion, like the payment of an out-right short- temi loan that is not at market rate. the financial asset or liabilty is measured, initially al the present value of future cash flows discounted al a market rate of interest for a similar debt instrument and subsequently at amortised cost. unless il qualifves as a loan from a director in the case of a small company, or a public benefrt entity ¢onces5ionary loan. Financial assets that are measured al cost and amortised cost are assessed al the end of each reporting year for objèctive evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Slalemenl of Financial A¢tiwties. For financial assets measured at amortised cosl, the impairment loss is measured as the drflerence bettveen an asset's carrying amount and the present value of estimated cash flows discounted al the asset's original effective interest rate. If 8 financial asset has a variable interest rate, the discount rale for measuring any impairment loss s the current effeclNe inler8st rate determined under the contract. Forfinancial assets measured at cost less impaiment, the impaimenl loss is M￿sUred as the difference between an asset's carrying amount and ￿t estimate oflhe recoverable amount, which is an approximation of the amount that the Group WOU￿ receive for the asset if it were lo be sold al the reporting dale. Financial assets ond liabiif(ies are offset and the net amount reported in the Consolidated and Parent Company Balance Sheet when there an enforceable right lo sel off the recognised amounts and there is an intention to settle on a nel basis or to realise the asset and settle the liability simukaneously. 2.22 Judgements in applylng accountlng policies and kèy sources of estimate uncertwnty The preparat￿n of the financial statements requires management lo make judgements. estimates and assumptions Ihal affect the amounts reported for assets and liabilities at the Balance Sheet dale and the amounts reported for ievenues and expenses during the year. However, the nature of eslimalion mean5 the actual outcomes Could differ from those estimates. The following judgements have the nKSSt signifunt effect on the amounts reco9ni5ed in the finan¢ial slalements.. Carryng value of Intsngible assets The Group reviews thè carrying value of ils intangible assets, which comprise goodwill and web5tie development, at each reporting dale to detemiine if there is any indication of impairment. Vvhere an Indi￿110n of impairment is identified the Group estimates the recoverable amount of the asset. This requires judgemenl by management with respect to Certain external factors, including, but not limited, lo technological and economic feasibility, and eslimaled economic lrfe. See Notes 10 & 11 for the carrying value of the Group's intangible assets. Carrying value ofstock The Group reviews the carrying value of ils stock, al each reporting date lo determine rfthere is any indication of impairment. Where an indication of impairment is identified the Group eslimales the recoverable amount of the stock. This requires judgement by management with respect lo eert8in external factors, including ¢ondits"ons of st￿k lo determine whether any impaimient provision is nKess8ry. See Note 13 for the carrying value of the Group's sloek. Th6 n(ths on pag85 16 to 30 fomi part ol these financial statements. Page 22 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 INCOME Group Income fmm tradlng activities Income from trading activities is prin¢ipally attributable lo an agreement with the Japanese Ministry of Foreign Affairs I'MOFA'}, rental income fiom concession agreements ex￿uted with restaurant and retail operators and sales in the Shop. All income arose in the United Kingdom. An analysis of turnover by class of business is as follows: 2024 2023 Rental income on concession agreements Japan House membership income Income from arrangement with MOFA (note 221 Other Income Income from sales in the Shop 124,001 256,805 8,722,052 296,917 1,733 217 11,132 992 124.001 242, 125 T,881,671 261,934 1,450,260 9,959,991 CHARITABLE ACTIVITIES Parent Company Unrestricted Funds 2024 Total Funds 2024 Total Funds 2023 Grants made Support costs- governance (Note 51 94,798 94.798 29,000 11.350 40.3 119,283 119.283 Charf(able donations were made lo the following Qharilable recipienls.. 2024 2023 Café Olo Delfina Fcvndation Japan House London's touring sampuru studio Voltaire The Victoria and Albert Museum University of Oxford Van Gogh House London & Gallery C.l.C. sing Arts Centre Grizedale Arts Japan Society Total Grants made 3,000 17,600 20,130 12,568 2.000 7,000 15,600 16.900 11,350 The notes on pages 16 to 30 fom part ofthese financi818tstements. Page 23 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 SUPPORT COSTS Parent Company Total Funds 2024 Total Funds 2023 Bank charges Legal and professional related costs Audit fee Total (Note 4} 60 60 2,468 8,822 11,350 23,578 24.485 ANALYSIS OF EXPENt)rruRE BY EXPENDITURE TYPE Group 2024 2023 Other trading adniilies 9.422,444 9,422,444 9 845,549 Charitable Activrties {Nole 4) Total Expenditure 9 964 832 9 462 794 Other Ir8ding aCt￿rtIes relale to costs of goods sold, offKe rent & rates, deprecption and amortisation charges, staff costs, exhibition cosls & other trading and compliance costs incurred by the Group and its subsidfjries. AUDITORS. REMUNERATION 2024 2023 Fees payable lo the Charrtable Company's auditor and ils subsidiaries in respect of Audit-rdated assurance services 40,000 EMPLOYEES The average monthly number ol gmployees, including the directors, during the year was as follows.. 2024 89 2023 71 Employees including directors who have employment contracts staff Costs, including key managément personnel, were as follows.. 2024 2023 Wages and salaries Social security c05t5 Cost of defined contribution scheme {N¢le 201 3,010,456 267,759 2,567,986 247,919 70 534 2 886 349 3 377 204 Included above is the remuneration of £357,161 [2023.. £295, 819) for the Group's key management. No Trustees received any remuneration during either reporting period. The notas on pages 16 to 30 fom part ofthésè financial ststements. Page 24 JAPAN House LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 TAXATION Group Year ended 31.03.2024 Group Year ended 31.03.2023 Corporatlon tax Current tax charge on profits for the year Adjuslmenls in ￿$p￿t ol premous peri¢>Js Total Current tax 251,485 3,065 254,550 59,698 20,164 39,534 Deferred tax asset Adjustments in respect of previous periods Total deferred tax asset Tax chargo on profit on ordinary activities 254.550 39,534 Factors affecting tax charge for the year The tsx assessed for the year is lowèr than {2023.' lower than) the standard rate of corporation tsx in the UK of 25°A (2023.. 19%) as set out below: Group Ygarended 31.03.2024 Group Yearended 31.03.2023 Profft on ordinary activit￿5 before tax 1,168.160 497, 797 Profrt on ordinary adivilies multiplied by standard rate of corporation lax in the UK of 250A12023.' 19%) Effects of: Fixed asset drFferences Expenses not deductible for tax purpose5 Reversal of provision not allowed for tax Charitable donations not lax deductible Adjuslmenl lo 18x charge In respect of previous period- current lax Excess of cap.rtal allowance over depiecialion Unrelieved taxlosses carried forward 292,040 94,468 1,661 18,891 124,096} 29,915 3,065 166,926} 2.tW5 14, 718 7, 737 (20, 164) (59,894) 664 Totsl tax Charge for the year 254,550 39,534 Factors that may affe¢l fuluro tax charges Al 31 March 2024, Japan H.L. Limrted had caprtal allowanees in excess of depreciation available lo offset against future profits of £633,000 (2023.. £700,0(K)). No defer￿d lax asset has been recognised in respect of these due to the uncertainly of suitable future profits against whieh the asset would be recoverable. The Tfusl is a tax exempt chanty. The notes on page$ 16 to 30 fom part of these financial $tatements. Page 25 JAPAN HOUSE LONDON TRUST NOTES TO TrIE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10. INTANGIBLE FIXED ASSETS Group Websit8 development Cost Al 1 April 2023 Additions At 31 M8rch 2024 34.285 Amortisation Al 1 April 2023 Charge for the period Al 31 March 2024 8,572 Net Book Value 19,285 At 31 March 2024 Al 31 March 2023 11. INTANGIBLE FIXED ASSETS- GOODWILL Group During the period to 31 March 2020, the TTUSt acquired 100./ of Japan H.L. Limited resutting in goodwill of £501,869 which is amrtised on a straight line basis over rts useful economic life to June 2024. The amortisation is Charged to the Consolidated Stst8rrEnl of Financial Aclivrf(ies. Cost Al 1 April 2023 Al 31 March 2024 501,869 501,689 Amortlsation AI 1 Apfil 2023 Charge for the period Al 31 March 2023 376,402 100,374 476,776 Net Book Valua At 31 March 2024 25,093 At 31 March 2023 125,467 The notes on pages 16 to 30 fom) part of thes& finanaal slalemenls. Page 26 JAPAN Mouse LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12. TANG18LE FIXED ASSETS Group Short-tomi leasehold improvemgnts Fixture and rittlngs Total Cost or valuation Al 1 April 2023 A￿llIonS At 31 March 2024 8,739,970 289.255 9,029.225 73,842 9,103.067 8.739,970 363 097 D•pre¢iation At 1 April 2023 Charge loi the year At 31 March 2024 8,739,970 88.528 8,828,498 59,308 8,887,806 8.739.970 147 836 Net book valu* At 31 March 2024 215 261 215,261 Al 31 M6rch 2023 200.727 200 727 13. STOCK Group 2024 Paront Company 2024 2023 2023 Finished goods and gcods for r8sa 274.01S 274015 206 676 206 676 14. DEBTORS Due after more than one year.. Group 2024 Parent Company 2024 2023 2023 Rent deposit (Note 211 1,327,482 1,327,482 1,565, 179 1,565, 179 Rent deposit includes interest receivable of £26,072 (2023." £15, 179) as confimed by the kndlord al the year end Following the new MOFA contrad entered into in March 2024, the Company reviewed the posrtion of the lease with the expectation the ￿ase will be lutfilled to March 2027. Accordingly, the debtor has been dis¢ounled ID present value as at 31 March 2024. The notes on pages 16 to 30 fomi part of these finanaal sts￿ents. Page 27 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 14. DEBTORS ICONTINUEDI Due Imthin one year.. Group 2024 Parent Company 2024 2023 2023 Trade debtors Other debtors Prepayments & Accrued income Corporation lax VAT repayable 61.693 15,724 1.084.864 99,654 33.383 539,886 85.528 207,826 966,277 7,921 7.921 85,528 253,071 1,500.880 7.921 7,921 Total Debtors 2.828.362 2 531,456 7.921 7,921 15. CASH AND CASH EQUIVALENTS Group 2024 Parent Company 2024 2023 2023 Cash at bank 6,914,616 6,914,616 7,874.464 7,874.464 851,167 851 167 831,363 831,363 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2024 Parent Company 2024 2023 2023 Trade creditors Corporation t8X Other creditots Accruals Other tsxalion and so¢ial securrty Deferred Income VAT payable 86,848 261,485 2,281,348 73,628 124,222 15,216 4,519,757 80,418 3,820 50,905 66,456 953,549 48,236 3.761,550 53,369 782, 191 42,885 5,018,058 50,90S 11,820 Other creditors include £2,249,13312023.. £4,498,231) due lo MOFA. 17. CREDITORS.. AMOUNTS FALLING AFTER MORE THAN ONE YEAR Group 2024 Parent Company 2024 2023 2023 Other credttors (Note 21) 1301410 1301410 Other credf(ors relate lo amounts repayable to MOFA. The notes on pages 1fj to 30 fom part ol these financlal ststements. Page 28 JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 17. CREDITORS: AMOUNTS FALLING AFTER MORE THAN ONE YEAR