## **M. & R. GROSS CHARITIES LIMITED** ## **(LIMITED BY GUARANTEE)** Company No: 0897558 ## **CONSOLIDATED FINANCIAL STATEMENTS** ## **FOR THE** ## **YEAR ENDED 31 MARCH 2022** ## **COHEN ARNOLD** CHARTERED ACCOUNTANTS REGISTERED AUDITORS LONDON NW11 0PU ## **M. & R. GROSS CHARITIES LIMITED** ## **(LIMITED BY GUARANTEE)** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **CONTENTS** |1|Legal and Administrative Details| |---|---| |2 - 6|Report of the Trustees| |7 - 10|Report of the Auditors| |11|Consolidated Statement of Financial Activities| |12|Charity Statement of Financial Activities| |13|Consolidated Balance Sheet| |14|Charity Balance Sheet| |15|Consolidated Statement of Cash Flows| |16 - 29|Notes to the Financial Statements| ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **LEGAL AND ADMINISTRATIVE DETAILS** ## **FOR THE YEAR ENDED 31 MARCH 2022** **Name:** M. & R. Gross Charities Limited **Status** : Incorporated Registered Charity Number: 251888 Company Number: 0897558 HM Revenue & Customs Reference: XN18913 **Principal Office and Registered Office** : New Burlington House 1075 Finchley Road London NW11 0PU **Charity Trustees** : Mrs R Gross Mrs S Padwa Mr M Saberski Mr L Lerner **Secretary:** Mrs R Gross **Auditors:** Cohen Arnold New Burlington House 1075 Finchley Road London NW11 0PU 1 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** The trustees present their Annual Report for the year ended 31 March 2022 under the Charities Act 2011 and Companies Act 2006 including a Strategic Report together with the financial statements for the year. ## **Reference and Administrative Information** Legal and Administrative information of the Company is shown on Page 1 of the Financial Statements and forms part of this report. ## **The Trustees** The Trustees who serve the charity during the year were as follows: Mrs R Gross Mrs S Padwa Mr M Saberski Mr L Lerner ## **Organisation Structure, Governance and Management** The charity is constituted as a company limited by guarantee and as such, its governing documents are its Memorandum and Articles of Association. The organisation is run by the governors/trustees who are trustees. Every governor/trustee holds office until he/she shall die or shall cease to hold office by virtue of Article 49 of the Articles of Association. None of the governors/trustees have any beneficial interest in the company. This charity was set up to support the activities of organisations promoting and advancing Orthodox Judaism and during the year distributed grants totalling £3,238,880 in aid of such activities. The main areas of charitable activity are the provision of financial support to Jewish organisations engaging in education, advancement of religion in accordance with the Jewish faith and to give philanthropic aid to the Jewish needy. 2 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 MARCH 2022** ## **Financial Review** The charity receives income from investments, the commercial activities of its subsidiaries and voluntary income from companies, some of whom are connected with the trustees. Total reserves of £54,561,638 includes restricted reserves of £7,046,467 and unrestricted reserves of £47,515,171. The charity owned indirectly 50% of the issued share capital of Saxton Estates Limited and its wholly owned subsidiaries, Riverhill Properties Limited and Mount Farm Limited. The principal activity of these companies is that of property investment companies. ## **Investment Powers and Policy** In accordance with the governing document, the trustees have the power to invest as they see fit. In order to match the long term funding requirements arising under the Jewish Educational Fund, the trustees adopted a strategy to invest in property assets with the intention that the real value of their assets be maintained and enhanced over the long term. The policy is to invest in low risk property investments with a view to maximising income with the assistance of bank borrowings. In addition, shares in property owning companies were gifted to the charity many years ago and these continue to be held as investments. ## **Reserves Policy** The reserves of the charity are represented by the unrestricted funds arising from past operating surpluses and includes a revaluation reserve arising from the unrealised increase in value of the charity’s investment in subsidiary undertakings, which provide long term funding. The Trustees have set a reserves policy which requires that reserves be maintained at a level which ensures that the charity’s grants be continued without dependence on donations received. A large proportion of reserves are invested to generate income, but as the charity wishes to continue to sponsor substantial projects, a proportion of the reserves are to be held in a readily realisable form. ## **Risk Management** The trustees have identified and reviewed the major risks to which the company is exposed, in particular those related to the operations and finance of the company, and are satisfied that systems are in place to mitigate those risks. ## _**Financial risk management and policies**_ The charity holds or issues financial instruments in order to achieve three main objectives being: a) to finance its operations b) to manage its exposure to interest and currency risks arising from operations and from its sources of finance; and c) for generating funds. 3 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 MARCH 2022** In addition various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the charities’ operations. ## _**Credit risk**_ The charity monitors credit risk closely and considers that its current policies of credit risk checks meets its objectives of managing exposure to credit risk. The charity has no significant concentrations of credit risk. Amounts shown in the Balance Sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under the financial instruments. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed ## **Plans for Future Periods** The charity plans continuing the activities outlined above in the forthcoming years subject to satisfactory incoming resources. ## **Charity Objects, Aims, Objectives and Activities** : ## _**Charitable objects**_ The objects of the charity are: - to foster, assist and promote the charitable activities of any institution professing and teaching the principles of traditional Judaism; - to advance religion in accordance with the Jewish faith; - to undertake, accept, execute and administer, without any remuneration, any charitable trust; and - to give philanthropic aid to the Jewish needy. ## _**Aims, objectives and activities for public benefit**_ The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the year. This charity was set up to support the activities of religious Jewish organisations especially in the field of education both in the United Kingdom and abroad. The charity is also supportive of organisations which are solely committed to the relief of poverty. Such organisations assist needy Jewish families financially and also through distribution of basic needs. The income of the charity is derived from investments and donations. The trustees continued their support of those organisations deemed to promote the objects of this charity. 4 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES (Continued) FOR THE YEAR ENDED 31 MARCH 2022** ## **Grant making Policy** The charity has adopted a policy of supporting orthodox Jewish educational and religious activities through existing charitable organisations carrying out such activities. Applicants falling within this category are assessed on a regular basis and many of the smaller grants are dealt with through a grant-making agency, United Talmudical Associates Limited. ## **Land and Buildings** Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. No depreciation is provided in respect of investment property applying the fair value model. Investment property fair value is determined by an independent FRICS qualified chartered surveyor on the basis of market value. ## **Trustees' responsibilities statement** The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the applicable Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - 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 adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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. 5 M. & IL GROSS CHARITIES LIMITED LINIITED BI, GUAR.4NTEE REPORT OF THE TRUSTEES Continued FOR THE YEAR ENDED 31 MARCH 2022 Auditors Cohell Arnold att deemed to be r¢-appointed under section 487(2) of the Cotnpanies Act 2006. Approved by the trustees on 19 December 2022. including in their capacity as cornpany directors, the Tnthes Report contsined therein and sigtted on its behalf by: Mrs R Gr055 Trnstee 19 Decernber 2022 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **OPINION** We have audited the financial statements of M & R Gross Charities Limited (the 'parent charitable company') and its subsidiaries (‘the group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and the parent charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, and of the group’s cash flows for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006. ## **BASIS FOR OPINION** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group’s or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 7 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **OTHER INFORMATION** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Trustees’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements. ## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION** In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report or the Strategic Report included within the Trustees’ Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. 8 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **RESPONSIBILITIES OF TRUSTEES** As explained more fully in the Trustees’ responsibilities statement, the Trustees who are also the Directors of the parent charitable company for the purposes of company law are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the group’s and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. ## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We obtained an understanding of the legal and regulatory frameworks that are applicable to the group through discussion with the management and identified which were most significant with respect to the financial statements. We identified Companies Act 2006 (including associated regulations), Charities Act 2011, Charities SORP (FRS 102), Financial Reporting Standard 102, Taxation Laws and Regulations, The Landlord and Tenant Act and Health & Safety Regulations as being most significant to these financial statements. We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations. - We discussed with the management the policies and procedures regarding compliance with the legal and regulatory framework. - We assessed the susceptibility of the group’s financial statements to material misstatement due to non-compliance with legal and regulatory framework, including how fraud might occur, by enquiry with the management during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low. 9 IIL & R. GROSS CHARrttES LIMrrED IMtTED BY GUARANTEE INDEPENDELYf AUDITORS, REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2022 Based on this understanding, we desibmed our audit procedures to identify non-compliance with the identified legal and regulatory framewo￿. which wer¢ part of our procedures on th¢ related financial statement items. Our procedures included reviewing the group's internal controls policies and procedures. reviewing the minutes of board meetings and COTr¢spondence with regulatory bodies including HM Revenu¢ & Customs, t¢sting transactions outside the nomul course of the business andjournal entrie5. attd discussions with the management. Owing to the inherent limitatioDS of an audiL th¢r¢ is an unavoidable risk that w¢ may not have detected some materlal m(sstat¢ments in the financial statements, even though we have properly planned and perforrned our audit in accordance with auditing standards. For example, the further removed non- compliance with laws and regulations (irregularities) is from the events and transactions r¢fl¢cted in thc financial statements, the less likely tbe inherently limit¢d procedures r¢quired by &uditirtg standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities. as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance with all laws and regulatioDs. A fi￿￿er description of ow responsibilities for the audit of the financial statem¢nts As located on the Financial Reporting Council's websit¢ at www.frc.org.uklauditorsresponsibilities. This description forn part of our auditor's reporL USE OF REPORT This report Is rnadc solely to the company's members, as a body, in aC￿rdanCe with chapter 3 of part 16 of the Companies Act 2006. Our audit work has be￿ undertaken so that we might stat¢ to the company's members those matters wc are r¢quired to state to them in an auditor's report and for no other purpose. To the full¢st extent perniitted by law, we do not accq)t or assume responsibility to anyone oth¢r than the ompany and the Company's members as a body, for our audit worL for this reporL or for the opinions we have fornied. Dov Harris FCA (Senior Statutory Auditor) For and on behalf of COHEN ARNOLD Chartered Accountants & Registered Auditors N¢w Burlington Hous¢ 1075 Finch1￿ Road LONDON NWI i OPU Our audit was completed on 19 December 2022 and our opinion was ¢xpressed at that date. io ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022** |**Notes**
**Incoming Resources**
Donations
_Activities for generating funds:_
Commercial trading operations
**2**
Investment Income
**3**
**Total Income**
**Expenditure**
_Cost of generating funds:_
Trading costs
**2**
Investment management costs
**4**
Property Outgoings
_Charitable activities:_
Expenditure on charitable activities
**5 - 7**
**Total Expenditure**
_Net gain/(losses) on investments:_
Share of (loss)/profit of Associate
Revaluation of Associate
Gain/(Loss) on revaluation of investment
**Net Income/(Expenditure) for the year**

**Net Movement in Funds**
**_Reconciliation of Funds:_**
Total Funds Brought Forward
**Total Funds Carried Forward**|**Restricted**
**Funds**
**£**
**-**
**-**

**-**
________
**-**
________
**-**
**-**
-
**-**
________
**-**
________
-
-
**-**
________

**-**
_________
**-**
**7,046,467**
________

**7,046,467**|**Restricted**
**Funds**
**£**
**-**
**-**

**-**
________
**-**
________
**-**
**-**
-
**-**
________
**-**
________
-
-
**-**
________

**-**
_________
**-**
**7,046,467**
________

**7,046,467**|**2022**
**2021**
**Unrestricted**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**88,129**
**88,129**
60,000
**2,997,486 2,997,486**2,887,976
**1,847,144**
**1,847,144**
1,200,868
________
_______
_______
**4,932,759**
**4,932,759**
4,148,844
________
_______
_______
**2,470,184**
**2,470,184**
865,826
**564,345**
**564,345**
650,646
**193,994**
**193,994**
196,643
**3,277,739**
**3,277,739**
2,184,227
________
_______
_______
**6,506,262**
**6,506,262**
3,897,342
________
_______
_______
**(7,206)**
**(7,206)**
108,700
**-**
**-**
-
**773,822**
**773,822**
5,955
_________
________
________
**(806,887) (806,887)**
366,157
________
________
________
**(806,887) (806,887)**
366,157
**48,322,058 55,368,058**55,002,368
_________
________
________
**47,515,171 54,561,638**55,368,058| |---|---|---|---| ||_|_|| None of the charity's activities was initiated or discontinued during the financial year nor in the previous year. The charity has no other recognised gains or losses other than those reflected in the above Statement of Financial Activities for the financial year or for the previous year. The notes on pages 16 to 29 form part of these Financial Statements. 11 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022** |**2022**
**Restricted**
**Unrestricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**Incoming Resources**
Donations
**-**
**88,129**
**88,129**
Subsidiaries’ Donations
**-**
**2,085,585**
**2,085,585**
Investment Income
**-**
**154,058**
**154,058**
Rental Income
**-**
**1**,**135,284**
**1,135,284**
_______
_______
_______
**Total Income**
**-**
**3,463,056**
**3,463,056**
_______
_______
_______
**Expenditure**
_Cost of generating funds:_
Property Outgoings
**-**
**193,994**
**193,994**
_Investment Management Costs_
Loan Interest Payable
**-**
**126,534**
**126,534**
Cost of Finance
-
**13,423**
**13,423**
_Charitable activities:_
Expenditure on charitable activities
**-**
**3,277,739**
**3**,**277,739**
_______
________
_________
**Total Expenditure**
**-**
**(3,611,690)**
**(3,611,640)**
_______
________
_________
**Net Income before**
**Gains on Investments**
**-**
**(148,584)**
**(148,584)**
_Net gain /(losses) on investments:_
Loss on Revaluation of property
-
**(1**,**126,437)**
**(1,126,437)**
Profit on disposal of investment property -**131,477** **131,477**
Gain on revaluation of investment
-
**336,707**
**336,707**
_______
________
________
**Net Income for the year**
-
**(806,887)**
**(806,887)**
_______
________
________
**Net Movement in Funds**
**-**
**(806,887)**
**(806,887)**
**_Reconciliation of Funds:_**
Funds Brought Forward
**7,046,467**
**48,322,058**
**55,368,525**
_______
________
________
**Total Funds Carried Forward** **7,046,467**
**47,515,171**
**54,561,638**
|**2021**
**Total**
**Funds**
**£**
60,000
1**,**952,390
165,959
579,786
_______
2,758,135
_______
196,642
135,044
12,090
2,010,227
_______
(2,354,003)
_________
(404,131)
(327,882)
**-**
289,907
_________
366,157
________
366,157
55,002,368
_________
55,368,525| |---|---| The notes on pages 16 to 29 form part of these Financial Statements. 12 M. & IL GROSS CHARITIES LIMITED LIMITED BY GUARANTEE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 FIXED A&SETS Tangible Assets Jnvestrnent ID Associate Notes io Ila 68519,197 1083,911 69,756.597 1,891,116 70,403,108 71.647.713 CUIUiENT ASSETS Stock Debtors Inveslments Cash at Bank 12 13 176.662 7.652,670 776 lJ56J20 176,662 7.964,951 776 1,455,520 9,086,428 9,597,909 CREDITORS: Amounts falling due within one year 14 (811.863) (1,8l4,814) NET CURRENf ASSETSI (LIABILITtES) 8274565 7.783.095 TOTAL ASSETS I￿Ss CURRENT LIABILITIES 78,677,673 79,430.808 CREDITORS . Amounts falling due after more than one year 15 (15,122.035) (16,464283) Provisions (804000} (7,598.000) NET ASSETS 54,561,638 55.368.525 FUNDS Unrestricted Fun&s RestTid¢d Funds 17 16&17 47515,171 7.046867 48,322,058 7,046,467 TOTAL FUNDS 54561,638 55,368,525 These Financial Stacements have been prepared in accordance with the proviSiODS applicable to companies subject to the Sm￿1 companies, regime. The Financial Statements were approved by the Board of Trustees on 19 December 2022 and signed on its bellltfby MRS R GRO S - TRUSTEE Cornpany No: 0897558 Th¢ notes on pages 16 to 29 fomi part of these Financial Statements. 13 M. & IL GROSS CHARITIES LIMITED LIMITED BY GUAILA.NTEE BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 FIXED ASSETS Note5 Tangible Assets JDvestments io li 6266,697 45,992,024 9,189.147 45.655.317 52258,721 54.854,464 CURRENT ASSETS Debtors Cash at Bank 13 4,977,179 1.01&200 5,495,264 931,385 5,995J79 6.426,649 CREDITORS: knoullts falling thie within one year 14 (201,171) (1274.047) NET CURRENT ASSETS 5,794208 5.152,602 Total knets less Cu￿ent liabilitics 5&052.929 59.997,066 CREDITORS.. Amounts falling due after one year 15 (3.491,291) (4.628.541) 54561,638 55,368,525 CAPITAL FufsDS Unrestiicted Fun(ts Restticted Fwids 47515,171 7,046,467 48J22,058 7.046,467 Totsl Funds 16 54561,638 55 J68,525 These Financial Statements have been prry)ar￿ in acrordance with the provi5ion5 applicable to companies subject to the small companies, regime. The Finaneial Statements were approved by the Board of Tn￿teeS on 19 December 2022 and signed on its behalf by MRS R GROSS TRUSTEE Company No: 0897558 The notes on pages 16 to 29 forni part of these Fitwicial Statcments. 14 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **CONSOLIDATED STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED 31 MARCH 2022** |**CASH FLOWS FROM OPERATING**||**2022**|**2021**| |---|---|---|---| |**ACTIVITIES:**|**Notes**|**£**|**£**| |Net cash (used)/ provided by operating activities|**21**|**(5,116,125)**|(2,581,196)| |||-----------------------------------------------|-----------------------------------------------| |**CASH FLOWS FROM INVESTING ACTIVITIES:**|||| |Income from investments||**4,132,770**|3,467,762| |Interest received||**249,726**|291,959| |Purchase of fixed assets||**(858,301)**|(681,295)| |Proceeds from sale of investments||**3,299,323**|605,890| |||-----------------------------------------------|-----------------------------------------------| |Net Cash provided by/(used in) investing activities||**6,823,518**|3,684,316| |||-----------------------------------------------|-----------------------------------------------| |**CASH FLOWS FROM FINANCING ACTIVITIES:**|||| |Borrowing||**(1,342,248)**|(300,508)| |Interest Paid||**(564,345)**|(650,646)| |||-----------------------------------------------|-------------------------------------| |Net cash provided by (used in) financing activities||**(1,906,593)**|(951,154)| |||-----------------------------------------------|-----------------------------------------------| |**CHANGE IN CASH AND CASH**|||| |**EQUIVALENTS IN THE YEAR**||**(199,200)**|151,966| |Cash and cash equivalents at 1 April 2021||**1,274,292**|1,122,326| |||**-----------------------------------------------**|**-----------------------------------------------**| |**CASH AND CASH EQUIVALENTS AT 31**|||| |**MARCH 2022**|**21**|**1,075,092**|1,274,292| |||===============================================|===============================================| The notes on pages 16 to 29 form part of these Financial Statements. 15 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **1. ACCOUNTING POLICIES** - M. & R. Gross Charities Limited is a charitable company limited by guarantee, incorporated in England and Wales (charity no.251888, company no. 0897558). Its registered address is New Burlington House, 1075 Finchley Road, London NW11 0PU. A description of the nature of the entity’s operations and its principal activities is disclosed in the Trustees’ Report accompanying the financial statements. ## 1.1 BASIS OF ACCOUNTING The financial statements have been prepared in compliance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the entity. The charity meets the definition of a public benefit entity under FRS 102. ## 1.2 GOING CONCERN There are no material uncertainties about the charity’s ability to continue. ## 1.3 INCOMING RESOURCES All donations are recognised in the Statement of Financial Activities (SOFA) of the charity when received. All other income is recognised on a receivable basis. ## 1.4 JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY Judgements made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are as follows: ## (i) Property valuation The valuation of the charity's investment properties is inherently subjective, depending on many factors, including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions. Therefore the valuations are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions. ## (ii) Trade debtors Management uses details of the age of trade debtors and status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any Sneed to impair the carrying values. 16 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## 1.5 LIABILITY RECOGNITION Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. ## 1.6 CHARITABLE ACTIVITIES Charitable activities are only recognised in the accounts when paid. The charitable donations have been detailed in Notes 5 and 6. ## 1.7 INVESTMENT MANAGEMENT COSTS Investment management costs include costs relating to the investment properties on an accrual basis. ## 1.8 GOVERNANCE COSTS Governance costs include costs of the preparation and audit of financial statements and cost of any legal advice to trustees on governance or constitutional matters. ## 1.9 FUND ACCOUNTING General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Restricted funds are funds subject to specific restricted conditions imposed by donors. There are no restricted funds as at the Balance Sheet date. Designated funds are funds, which have been set-aside at the discretion of the Trustees for specific purposes. There are no designated funds as at the Balance Sheet date. ## 1.10 PROPERTIES HELD FOR INVESTMENT Investment Properties are included in the Balance Sheet at open market value in accordance with Statement of Recommended Practice (Charity SORP). The unrealised gains and losses are shown in the Statements of Financial Activities. ## 1.11 ACQUISITIONS AND DISPOSALS OF PROPERTIES Acquisitions and Disposals of properties are considered to take place at the date of legal completion and are included in the Financial Statements accordingly. ## 1.12 INVESTMENT IN SUBSIDIARY UNDERTAKINGS Share holdings acquired in Subsidiary Undertakings are shown at market value as valued by the trustees. Investments in Related Undertakings below 20% are shown at cost. 17 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## 1.13 GROUP FINANCIAL STATEMENTS These Financial Statements consolidate the results of the charity and its wholly-owned subsidiaries and associate. A separate Statement of Financial Activities, for the charity itself is presented in accordance with the Charity SORP. ## 1.14 TAXATION The charity is not liable to direct taxation (Income Tax) on its income as it falls within the various exemptions available to registered charities. The charity is registered for Value Added Tax (VAT) but is only able to reclaim any input tax relating to its property investment. Other expenditure in the Accounts is therefore shown inclusive of VAT where appropriate. ## 1.15 FINANCIAL INSTRUMENTS A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 18 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **2. COMMERCIAL TRADING OPERATIONS** Some of the wholly owned subsidiaries have entered into a total profits covenant with the charity to pay their profits to the charity within nine months from the financial year end. Audited Accounts of the Subsidiary Undertakings included have been filed with the Registrar of Companies. A summary of the trading results of the subsidiaries is shown below: _**Summary Profit and Loss Account – Subsidiary Companies**_ |||**2022**|**2021**| |---|---|---|---| |||**£**|**£**| |Net sale proceeds|_a_|**_-_**|_-_| |||_______|_______| |Surplus on sale of properties||**_-_**|-| |||_______|_______| |Gross rental income|_a_|**2,997,486**|2,887,976| |Property outgoings|_b_|**(1,011,712)**|(721,565)| |||________|_______| |Net Rental Income||**1,985,774**|2,166,411| |Administrative expenses|_b_|**(60,049)**|(63,261)| |Donations paid||**(2,085,585)**|(2,126,390)| |Net gains on revaluation of investment property||1,**900,258**|333,837| |||________|_______| |Operating profit||**1,740,398**|310,597| |Profit on disposal of fixed assets||**321,687**|315,564| |Income from fixed assets investment||**3,970**|(1,466)| |Interest receivable||**95,668**|126,000| |Other operating income||**5,000**|15,025| |Interest payable and similar charges||**(424,388)**|(503,512)| |||________|_______| |Retained profit/(loss) for the financial year||**1,742,335**|262,208| |Taxation|_b_|**(1,398,423)**|(81,000)| |Under/over provision of tax|_b_|**-**
________|-
_______| |||**343,423 **|181,208| |**Incoming Resources:**|||| |**_Activities for generating funds:_**|||| |**Commercial trading operations**|_a_|**2,997,486**|2,887,976| |||**________**|**________**| |**Resources Expended**|||| |**_Cost of generating funds_**|||| |**Trading costs**|_b_|**2,470,184**|865,826| |||**________**|**________**| _Details of the subsidiary’s capital and reserves and profit/(loss) for the year are given in Note 11._ 19 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **3. INVESTMENT INCOME** |**3.**|**INVESTMENT INCOME**||||||| |---|---|---|---|---|---|---|---| |||||||**2022**|**2021**| |||||||**£**|**£**| ||Bank Interest Receivable|||||**-**|-| ||Loan Interest Receivable|||||**254,726**|306,984| ||Rental Income|||||**534,034**|579,786| ||Income from dilapidations claim|||||**601,250**|**-**| ||Profit/(loss) from other fixed asset investments|||||**3,970**|(1,466)| ||Profit on sale of investment property|||||**453,164**|315,564| |||||||_______|______| |||||||**1,847,144**
|1,200,868| |||||||_______|______| |**4.**|**INVESTMENT MANAGEMENT**||**COSTS**||||| |||||||**2022**|**2021**| |||||||**£**|**£**| ||Bank Loan Interest|||||**528,635**|592,913| ||Cost of Finance|||||**35,710**|57,733| |||||||_______|_______| |||||||**564,345**
|650,646| |||||||_______|______| |**5.**|**COSTS OF CHARITABLE ACTIVITIES BY FUND**||||**TYPE**||| ||**Restricted**||**Unrestricted**|||**2022**|**2021**| ||**Funds**||**Funds**|||**Total**|**Total**| ||**£**|||**£**||**£**|**£**| ||Charitable Donations|**-**|**3,238,880**||**3,238,880**||2,150,300| ||Governance Costs|-|**38,859**|||**38,859**|33,927| ||______||________||________||________| ||**-**
_______||**3,277,739**
________||**3,277,739**
_______||2,184,227
_______| All grants were paid to institutions in support of the relief of poverty, the advancement of Jewish religion and the advancement of Jewish religious education. Included in the charitable activities are material grants made during the year to United Talmudical Associates Ltd (£643,000), Asser Bishvil Foundation (£379,000), Congregation Sharei Sholom Tchabe Limited (£143,000), Myrdle Charities (£122,500) and British Friends of Rabbi Meir Baal Haness Charity (Kollel Shomrei Hachomos) (£110,000). 20 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **6. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE** |||||**2022**|**2021**| |---|---|---|---|---|---| ||**Grant**|**Funding Activities**|||| ||**Restricted**||**Unrestricted**|**Total**|**Total**| ||**£**||**£**|**£**|**£**| ||Charitable Donations|**-**|**3,238,880**|**3,238,880**|2,150,300| ||Governance Costs|-|**38,859**|**38,859**|33,927| ||______||________|________|________| |||**-**|**3,277,739**|**3,277,739**|2,184,227| ||||||| ||_______||________|_______|_______| |**7.**|**GOVERNANCE COSTS**||||| |||||**2022**|**2021**| |||||**£**|**£**| ||Auditors' Remuneration|||**32,916**|31,975| ||Bank Charges|||**448**|297| ||General Expenses|||**3,395**|1,655| ||Legal and Professional Fees|||**2,100**|-| |||||_____|_____| |||||**38,859**|33,927| ||||||| |||||_____|_____| |**8.**|**NET INCOMING RESOURCES**||**FOR THE YEAR**||| |||||**Total Funds**|**Total Funds**| |||||**2022**|**2021**| |||||**£**|**£**| ||This is stated after charging:||||| ||Auditors’ remuneration|||**32,916**|31,975| ||Depreciation|||**-**
______|-
______| ## **9. STAFF COSTS AND EMOLUMENTS** There were no employees during the year and no salaries or wages have been paid to the trustees during the year. The charity did not meet any individual expenses incurred by the trustees for services provided to the charity. 21 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **10. TANGIBLE FIXED ASSETS** |**GROUP**
**Freehold &**
**Leasehold Property**
**Fixtures**
**Fittings &**
**Equipment**
**£**
**£**
**Cost/Valuation**
At 1 April 2021
**69,756,597**
**78,811**

Additions
**858,301**
**-**
Disposals
**(2,868,523)**
**-**
Gain on revaluation
**772,822**
-
_________
______

At 31 March 2022
**68,519,197**
**78,811**

_________
______
**Depreciation**
At 1 April 2021
**-**
**78,811**
Charge for the year -
**-**
_________
______
At 31 March 2022 -
**78,811**
_________
______
**Net Book Value**
At 31 March 2022
**68,519,197**
**-**
_________
______
At 31 March 2021
69,756,597
-
_________
______
**CHARITY**
**FREEHOLD AND LEASEHOLD INVESTMENT PROPERTY**
**2022**
**£**
At 1 April 2021
**9,189,147**
Additions
**672,510**
Disposals
**(2,468,523)**
Revaluation
**(1,126,437)**
________
At 31 March 2022
**6,266,697**|**Total**
**£**
**69,835,408**
**858,301**
**(2,868,523)**
**772,722**
_________
**68,598,008**
_________
**78,811**
**-**
_________
**78,811**
_________
**68,519,197**
_________
69,756,597
_________
**2021**
**£**
9,489,147
-
**-**
(300,000)
______
9,189,147| |---|---| Freehold and Leasehold investment properties are stated at market value, as valued by an independent FRICS qualified surveyor. 22 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2022** ## **11. FIXED ASSET INVESTMENTS** |**CHARITY**
Agarbatty Limited
Newcast Estates Limited
Subterranean Limited
Trilata Limited
Tripack Limited
Tulata Limited
Wynbay Limited
Zerlan Estates Limited
Market Value at 31 March 2022|**Nature of Business**
Property Investment
Property Trading
Property Investment
Property Investment
Property Investment
Property Investment
Property Investment
Property Investment
|**Company**
**Registration**
**No.**
**2022**
**2021**
**£**
**£**
00844612
**1,049,195**
1,025,645
08895161
**17,514**
5,901
07849993
**209,957**
209,957
11674040
**296,100**215,100
01155157
**2,931,332**2,809,994
01493103
**4,511,616**
4,487,616
01299082
**16,251,576**16,875,522
01051420
**15,766,857**15,401,857
_______
_______
**41,034,147**41,031,592| |---|---|---| _______ _______ M & R Gross Charities Limited owns the whole of the issued share capital of the subsidiaries listed above. All companies are incorporated in England. In addition, the company indirectly owns the whole of the issued share capital of the following companies which are also incorporated and operated in England: Emerlkirk Properties Limited Property Investment Mademoiselle Limited Property Investment The market value of these shares is £44,184,064 (2021: £43,840,152) based on the underlying value of the companies’ assets less liabilities. 23 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **11a. INVESTMENT IN ASSOCIATES** The charity owns indirectly through one of its subsidiary companies, Wynbay Limited, 50% of the issued share capital of Saxton Estates Limited, Riverhill Properties Limited and Mount Farm Limited. The charity’s interest in the results of the associate is as follows: |**Saxton Estates Limited – Property Investment**||**50% share**| |---|---|---| ||**£**|**£**| |Profit for the year ended 31 March 2022|173,615|86,808| ||______|______| |**Share of Profit**|173,615|**86,808**| ||______|______| |Assets|7,367,957|3,683,979| |Liabilities|(4,105,200)|(2,052,600)| ||______|______| |Capital and Reserves|3,262,757|1,631,379| |**Share of Net Assets at valuation**||**1**,**631,379**| |**Riverhill Properties Limited – Property Investment**||**50% share**| ||**£**|**£**| |Loss for the year ended 31 March 2022|(152,668)|(76,334)| ||______|______| |**Share of Loss**|(152,668)|**(76,334)**| ||______|______| |Assets|4,310,779|2,155,390| |Liabilities|(3,937,415)|(1,968,709)| ||______|______| |Capital and Reserves|373,362|186,681| |**Share of Net Assets at valuation**||**186,681**| 24 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **11a. INVESTMENT IN ASSOCIATES (Continued)** |**Mount Farm Limited – Property Investment**||**50% share**| |---|---|---| ||**£**|**£**| |Loss for the year ended 31 March 2022|35,358|17,679| ||______|______| |**Share of Profit**|35,358|**17,679**| ||______|______| |Assets|728,274|364,137| |Liabilities|(748,474)|(374,237)| ||______|______| |Capital and Reserves|(20,200)|(10,100)| |**Share of Net Assets at valuation**||**(10,100)**| |**Total share of Loss of Associates**||**(7,206)**| |**Total share of net assets at valuation**||**1,807,960**| ## **12. STOCK** |
**Group**
**£**
Stock
**176,662**|**2022**
**2021**

**Charity**
**Group**
**Charity**

**£**
**£**
**£**
-
176,662
-| |---|---| Stock comprises properties held for trading purposes by a subsidiary company and is stated at the lower of cost and net realisable value. ## **13. DEBTORS** |**DEBTORS**||||| |---|---|---|---|---| |Trade Debtors
Accrued Income
Loan Investments
Other Debtors and Prepayments|**Group**
**£**
**584,766**
-
**2,847,303**
**4,220,601**
_________
**7,652,670**|**2022**
**Charity**
**£**
**159,319**
**1,503,370**
**2,847,303**
**467,187**
_________
**4,977,179**|
**Group**
**£**
786,702
-
2,999,376
4,178,773
_________
7,964,851|**2021**
**Charity**
**£**
259,081
1,716,785
2,999,376
4,178,773
_________
5,495,264| |||||| 25 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Bank Loans and Overdraft
Trade Creditors
Other Creditors and Accruals|__|**Group**
**£**
**181,228**
**218,628**
**412,007**
_______
**811,863**|**2022**
**Charity**
**£**
**-**
**124,838**
**76,233**
_________
**201,171**|_|
**Group**
**£**
181,228
263,680
1,396,906
________
1,814,814|**2021**
**Charity**
**£**
-
168,995
1,105,052
_________
1,274,047| |---|---|---|---|---|---|---| |||||||| The bank loans and overdrafts are secured on certain of the group’s investment properties and the charity’s loans are secured on the investment properties shown in Note 10. ## **15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR** |Bank loans and overdrafts|**Group**
**£**
**15,122,035**|**2022**
**Charity**
**£**
**3,491,291**|
**Group**
**£**
16,464,283|**2021**
**Charity**
**£**
4,628,541| |---|---|---|---|---| |||||| The bank loans and overdrafts are secured on certain of the group’s investment properties the charity’s loans are secured on the investment properties shown in Note 10. ## **16. RESTRICTED FUNDS** ## EXPENDABLE ENDOWMENT FUND The Jewish Educational Fund was established to provide long-term financial support for the promotion and maintenance of institutions, organisations and individuals involved in orthodox Jewish religious education. This expendable endowment is invested to provide an annual income for these purposes and constitutes a restricted fund. The trustees are empowered to distribute the full amount of this fund, at their discretion, subject to a two-thirds majority of the trustees, should an emergency situation arise where the income from this fund is insufficient to meet demands. 26 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **17. ANALYSIS OF CHARITABLE FUNDS** |**Funds**||||| |---|---|---|---|---| |||||**At 31 March**| ||At 1 April 2021|Income|Expenditure|**2022**| ||£|£|£|**£**| |Unrestricted Funds|48,322,058|5,706,581|(6,513,468)|47,151,171| |Restricted Funds|7,046,467|-|-|7,046,467| ||───────|──────|───────|───────| ||55,368,525|5,706,581|(6,513,468)|54,561,638| ||═══════|══════|═══════|═══════| ## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS** ||Unrestricted Funds|Restricted Funds|**Total Funds 2022**| |---|---|---|---| ||£|£|**£**| |Investments|63,356,641|7,046,467|70,403,108| |Current assets|9,086,428|**-**|9,086,428| |Creditors less than 1 year|(811,863)|**-**|(811,863)| |Creditors more than 1||**-**|| |year|(15,122,035)||(15,122,035)| |Provisions|(8,994,000)|**-**|(8,944,000)| ||───────|──────|───────| |**Net assets**|47,515,171|7,046,467|54,561,638| ||═══════|══════|═══════| |**19.** **FINANCIAL INSTRUMENTS**|||| |The carrying amount for each category of financial||instrument is as follows:|| |||**2022**|2021| |||**£**|£| |**Financial assets that are debt instruments measured at amortised cost**|||| |Financial assets that are debt instruments|||| |measured at amortised cost||**7,652,670**|7,964,951| |Financial assets at fair value through the|||| |Statement of Financial Position||**1,257,096**|1,456,296| |||**══════**|══════| |**Financial liabilities measured at amortised cost**|||| |Financial liabilities measured at|amortised cost||| |||**15,933,898**|18,279,097| |||**═══════**|═══════| 27 **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **20. LIMITED BY GUARANTEE** The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. ## **21. NOTES TO THE STATEMENT OF CASH FLOW** ## **a. Reconciliation of net cash provided by operating activities:** |||**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||Net (expenditure)/income for the year|**(806,887)**|366,157| ||Adjustments for:||| ||(Gain)/ Loss on revaluation|(**772,882)**|(5,955)| ||Interest Receivable|**(249,726)**|(291,959)| ||Interest payable|**564,345**|650,646| ||Income from investments
|**(4,132,770)**|(3,467,762)| ||(Profit) / Loss on sale of fixed assets|**(453,164)**|(315,564)| ||Decrease in Debtors|**332,281**|779,919| ||(Decrease) in Creditors|**(1,002,951)**|(268,978)| ||Expenditure/(Income) from associates|**7,206**|(108,700)| ||Taxation|**1,398,423**|81,000| |||**_______**|_______| |||**(5,116,125)**|(2,947,196)| |||_______|_______| ||**Net Cash (used)/ provided by operating activities**|**(5,116,125)**|(2,581,196)| ||||| |||_______|_______| |**b.**|**Analysis of cash and cash equivalents**||| |||**2022**|**2021**| |||**£**|**£**| ||Cash at Bank|**1,256,320**|1,455,520| ||Bank overdraft|**(181,228)**|(181,228)| |||_______|________| ||**Total cash and cash equivalents**|**1,075,092**
|1,174,292| |||**_______**|**_______**| 28 ## **M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** ## **21. NOTES TO THE STATEMENT OF CASH FLOW (Continued)** **c. Analysis of changes in net funds** |Cash at Bank
**Debt:**
Due within one year
Total
Debt falling due after
more than one year
**Net Funds**||**At 31 March**
**2021**
**£**
1,256,320
(181,228)
1,075,092
(15,122,035)
(14,567,373)||**Cash flows**
**£**
199,200
-
199,200
1,342,248
(2,564,404)|**At 31 March**
**2022**
**£**
**1,455,520**
**(181,228)**
**1,274,292**
**(16,764,791)**
**(15,642,465)**| |---|---|---|---|---|---| ||||||| ||||||| ||||||| ## **22. RELATED PARTY TRANSACTIONS** - **a.** Gift Aid Donations comprise amounts receivable from connected parties and companies under common control of the trustees of this company and their families as follows: Subsidiary Undertakings £2,085,585 - **b.** Other Interest Receivable includes amounts received from connected parties and companies under common control of the trustees of this company and their families as follows: Medinapoint Investments Limited £65,959 Zambra Investments Limited £87,927 Mrs R Gross and Mrs S Padwa, trustees of this charity, are also directors of the above-mentioned company and the subsidiary undertakings. **c** . Included in debtors (note 13) are loans of £2,847,303 made to companies under the control of members of the Gross family that bear interest at rates of 5% and 6% per annum and are secured. - **d.** Included in creditors (note 14) is a loan of £24,889 owed to The Palmtree Foundation Trust Limited, a registered charity company, the trustees of which are related to the trustees of this charity. This loan is interest free and repayable on demand. 29