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2024-03-31-accounts

M. & R. GROSS CHARITIES LIMITED

(LIMITED BY GUARANTEE)

Company No: 0897558

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE

YEAR ENDED 31 MARCH 2024

COHEN ARNOLD CHARTERED ACCOUNTANTS REGISTERED AUDITORS LONDON NW11 0PU

M. & R. GROSS CHARITIES LIMITED

(LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2024

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 2024

Name: M. & R. Gross Charities Limited
Status: Incorporated Registered Charity Number: 251888
Company Number: 0897558
HM Revenue & Customs Reference: XN18913
Principal Office: 86 Filey Avenue
London
N16 6JJ
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 2024

The trustees present their Annual Report for the year ended 31 March 2024 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 £5,244,400 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 2024

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 £48,076,364 includes restricted reserves of £7,046,467 and unrestricted reserves of £41,029,897. 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 2024

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:

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 2024

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:

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. & R. GROSS CHARITIES LIMITED LIMITED BI, GUARANTEE REPORT OF THE TRUSTEES Continued FOR THE YEAR ENDED 31 TrIARCH 2024 Auditors Cohen Arnold are deemed to be Te-app)inted under section 487(2) of the Cotnpanies Act 2006. Approved by the tr￿SteeS on 22 November 2024, including intbeir capacity &8 company directors, the Tn￿teeS Report contained therein and signed on its behalf by: Mr5 S Padwa Trustee 22 November 2024

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 MARCH 2024

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 2024 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:

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 2024

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:

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:

8

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 MARCH 2024

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:

9

i & R GRO&S c￿4R1TIFs LIMtTED TED BY GUARANfEE INDEPENDENf AUDrroRS' REPORT TO THE MEMBERS FOR THE YLIR ENDKD 31 MARCH 2024 B￿d on this undemanding, we deSI￿d our a￿lt procedures to identify non-compliance with the identified legal and regulatory fram¢worK which were part of our pro¢￿u[c$ on the related financial slatrnt items. Our proceduKs included reVie￿Ing the group'5 internal controls policies and pro¢edures, wiewing the minutes of Ix)ard meetings and wffesFondence with regulatory LxKlies including HM Revenue & Custon4 testing transactions outsi(k the norn￿1 cour6¢ of t business atMI joumal entiie& and discussions with the maDagement. Owryng to the inherent limitatiotL8 of an audiL the￿ is an unavoidable risk that we may not have detceted some material misstatements in the financial statenlents, even though we have properly planned and tKrfonn¢d our audit in accordance with auditing standards. For exampl¢, the fillther removed non- compliance with laws and regulations (]￿ularItieS) is from the events and transaGtiOn8 ￿flected in the financial statements, the l¢ss likely the inherently limited procedures required by auditing standards would identify it. In additio￿ &8 with any audit. the￿ renuined a higher risk of nOn￿eteCtIon of I￿gUlarIties, as thes¢ may involve Collusion, forgery, intentional omissions, misrepresentation4 or the override of internal controls. We are not responsible for pre￿￿ting non-¢ompliance and cannot be expected to detect non- compliance with all laws and regulations. A further description of our ￿SpOnsibl11tieS for the audit of the financial ststements is lOC￿ed on the Financial Reporting Council's website at Ww.frc.org.uk/audito￿r¢SpOnSIb1lltits. This description fomL8 of our auditor's rcp)rt. USE OF REPORT This rew>rt is M￿1¢ 501ely to th¢ Companys memlTh, as a Ix)dy, in accordance with Ghapter 3 of FQrt 16 of the Companies Act 2006. Our audit work h&s been undertaken so that we might state to the company's members those matters we are requi￿1 to state to them in auditor's re￿rt and for no other Purpose. To the fullest extent ￿nn1tted by law, we do not accept or assume resy)nsibiliry to anyone other than the compaTry and the company's memEcrs as a iKKty. for our audit worK for this repo¢ or for th¢ opinions we have fonned. Tr)v H￿Ti$ FCA (Senior Statutory Auditor) For a￿1 on lthf of COFLEN ARNOLD c1]arter￿ Accountants & Registered A￿lItorS New Burlington Howe 1075 Fin¢hley Ro&1 LONDON NWI i OPU lkn audit was comFAeted on 22 Novemlxr 2024 and our opinion Wds expr￿ at that date. io

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

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 profit/(loss) 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
 2024
2023
Unrestricted
Total
Total
Funds
Funds
Funds
£
£
£
140,000
140,000
277,000
3,348,413 3,348,4132,981,580
1,195,066
1,195,066
862,157
_
_
_
4,683,479
4,683,479
4,120,737
_
_
_
2,220,517
2,220,517
2,231,740
861,792
861,792
715,081
167,685
167,685
104,350
5,285,093
5,285,093
4,480,704
_
_
_
8,535,087
8,535,087
7,531,875
_
_
_
28,784
28,784
176,297
-
-
-
2,212,788
2,212,788(1,640,397)
_
_
_____
(1,610,036) (1,610,036)(4,875,238)
_
_
_
(1,610,036) (1,610,036)(4,875,238)
42,639,933 48,076,36454,561,638
___
_
__
41,029,897 48,076,36449,686,400
_ _

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 2024

2024
Restricted
Unrestricted
Total
Funds
Funds
Funds
£
£
£
Incoming Resources
Donations
-
140,000
140,000
Subsidiaries’ Donations
-
2,494,238
2,494,238
Investment Income
-
198,073
198,073
Rental Income
-
372,574
372,574
_
_
_
Total Income
-
3,204,885
3,204,885
_
_
_
Expenditure
Cost of generating funds:
Property Outgoings
-
167,685
167,685
Investment Management Costs
Loan Interest Payable
-
177,803
177,803
Cost of Finance
-
13,423
13,423
Charitable activities:
Expenditure on charitable activities
-
5,030,093
5,030,093
_
_
_________
Total Expenditure
-
(5,389,004)
(5,389,004)
_
__
___
Net loss before
Gains on Investments
-
(2,184,119)
(2,184,119)
_Net gain /(losses) on investments:
Loss on Revaluation of property
-
(50,000)
(50,000)
Profit on disposal of investment property- - -
Gain/(loss) on revaluation of investment
-
624,083
624,083
_
_
_
Net loss for the year
-
(1,610,036)
(1,610,036)
_
_
_
Net Movement in Funds
-
(1,610,036)
(1,610,036)
Reconciliation of Funds:
Funds Brought Forward
7,046,467
42,639,933
49,686,400
_
_
_
Total Funds Carried Forward 7,046,467
41,029,897
48,076,364


 2023
Total
Funds
£
277,000
1,503,302
189,251
437,669
_
2,407,222
_
104,350
140,398
13,423
4,480,704
_
(4,738,875)
_
(2,331,653)
(333,333)
111,880
(2,322,132)
_
(4,875,238)
__
(4,875,238)
54,561,638
___
49,686,400

The notes on pages 16 to 29 form part of these Financial Statements.

12

M. & IL GROSS CHARITIE.S LIMITED LIMITED BY GLIARANTEE CONSOLIDATED BALANCF, SHEET AS A T 31 MARCH 2024 2024 2023 FIXED ASSETS Tangible Assets Investment in Associate Notes io Ila 65,883,152 2,088,990 65,820,364 2.060208 67,972,142 67,880.572 CURRENT ASSETS Stock Debtors Investments C&sh at Bank 12 13 176,662 3,865082 776 691,929 176,662 6,264,443 776 433,073 4,734,949 6,874,954 CREDITORS: Amounts falling due within one year 14 (730,625) (1,864,737) NET CURRENT ASSETSI (LIABILITIES) 4,004 J24 5,010,217 TOTAL ASSETS IISS CURRENT LIABILITIES 71,976,466 72.890,789 CREDITORS . Amounts falling due after more than one year 15 {12264,102) (13.(K)5,389) Provisions (11,636,000) (10.199,(KiO) NET ASSETS 48,076J64 49,686,400 Unrestricted Funds Restricted Funds 17 16&17 41,029897 7,046,467 42.639.933 7.046.467 TOTAL FUNDS 48,076J64 49,686,400 These Financial Statements have been Prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The Financial Statements were approved by th¢ Board of Trustees on 22 November 2024 and signed on its behalf by MRS R PADWA - TRUSTEE Company No: 0897558 The notes on pages 16 to 29 fonn part of these Financial Sthtements. 13

M. & R. GROSS CHARITIES LIMITED LIMITED BY CUARANTF.F BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 FIXED ASSETS iYot¢s Tangible Assets Investm¢nts io 11 4,733J64 44293,975 4.783,364 43.669,892 49,027J39 48,453,256 CURRENf ASSETS Debtors Cash at Bank 13 2251,735 234,236 4,041.419 290,008 2,485,971 4331,427 CREDITORS: Amounts falling due within one year 14 (1,422375) (703,947) NET CURRENT ASSETS 1,063596 3,627,480 Totsl Assets less current liabilities 50,090,935 52.080,736 CREDITORS.. Amounts falling due after one year 15 (2,014,571) (2,394,336) 48,076J67 49,686,400 CAPITAL FUNDS Unrestricted Funds Restricted Funds 41,029,897 7,046h67 42,639,933 7,046,467 Total Funds 16 48,076J64 49,686,400 Th¢se Financial Statements hav¢ b¢¢n prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The Financial Ststements wete approved by the Board of Trustees on 22 November 2024 and signed on its behalf by MRS S PADWA TRUSTEE Comp8JLy No: 0897558 The notes on pages 16 to 29 fonn part of these Financial Statements. 14

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

CASH FLOWS FROM OPERATING 2024 2023
ACTIVITIES: Notes £ £
Net cash used by operating activities 21 (4,831,630) (3,699,334)
----------------------------------------------- -----------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Income from investments 3,720,897 3,419,249
Interest received 202,974 272,336
Purchase of fixed assets (31,249) (91,564)
Proceeds from sale of investments 3,653,974 1,270,000
----------------------------------------------- -----------------------------------------------
Net Cash provided by investing activities 7,546,596 4,870,021
----------------------------------------------- -----------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowing (741,287) (2,116,646)
Interest Paid (861,792) (715,081)
----------------------------------------------- -------------------------------------
Net cash used in financing activities (1,603,079) (2,831,727)
----------------------------------------------- -----------------------------------------------
CHANGE IN CASH AND CASH
EQUIVALENTS IN THE YEAR 1,111,887 (1,661,050)
Cash and cash equivalents at 1 April 2023 (585,958) 1,075,092
----------------------------------------------- -----------------------------------------------
CASH AND CASH EQUIVALENTS AT 31
MARCH 2024 21 525,929 (585,958)
=============================================== ===============================================

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 2024

1. ACCOUNTING POLICIES

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 2024

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.

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 2024

trustees. Investments in Related Undertakings below 20% are shown at cost.

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 2024

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:

2024 2023
£ £
Gross rental income a 3,348,413 2,981,580
Property outgoings b (719,970) (963,925)
__ _
Net Rental Income 2,628,443 2,017,655
Administrative expenses b (63,631) (61,648)
Donations paid (2,749,238) (1,503,302)
Net gains on revaluation of investment property (2,262,788) (1,307,064)
__ _
Operating loss (2,477,214) (854,359)
Profit on disposal of fixed assets 621,673 38,250
Income from fixed assets investment (2,155) 2,022
Interest receivable 4,901 83,085
Other operating income - -
Interest payable and similar charges (670,566) (561,260)
__ _
Retained loss for the financial year (2,493,361) (1,292,262)
Taxation b (1,436,916)
__		 (1,206,167)
_
(3,930,277) (2,498,429)
Incoming Resources:
Activities for generating funds:
Commercial trading operations a 3,348,413 2,981,580
__ __
Resources Expended
Cost of generating funds
Trading costs b 2,220,517 2,231,740
__ __

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 2024

3. INVESTMENT INCOME

3. INVESTMENT INCOME
2024 2023
£ £
Bank and Loan Interest Receivable 202,974 272,336
Rental Income 372,574 437,669
(Loss)/Profit from other fixed asset investments (2,155) 2,022
Profit on sale of investment property 621,673 150,130
_ ______
1,195,066
 862,157
_ ______
4. INVESTMENT MANAGEMENT COSTS
2024 2023
£ £
Bank Loan Interest 813,269 528,635
Cost of Finance 48,523 35,710
_ _
861,792
 564,345
_ ______
5. COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE
Restricted Unrestricted 2024 2023
Funds Funds Total Total
£ £ £ £
Charitable Donations - 5,244,400 5,244,400 4,442,510
Governance Costs - 40,693 40,693 58,194
______ __ __ __
-
_		 5,285,093
__		 5,285,093
_		 4,480,704
_

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 (£1,513,500), Asser Bishvil Foundation (£330,000), Keren Habinyan Limited (£200,000), British Friends of Rabbi Meir Baal Haness Charity (Kollel Shomrei Hachomos) (£120,000) and Mifal Hachesed Vehatzdokoh (£119,000), Beis Aharon TT Activity Centre (£118,500) and to Myrdle Charities (£106,000).

20

NOTES TO THE FINANCIAL STATEMENTS

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

FOR THE YEAR ENDED 31 MARCH 2024

6. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE

2024 2023
Grant Funding Activities
Restricted Unrestricted Total Total
£ £ £ £
Charitable Donations - 5,244,400 5,244,400 4,422,510
Governance Costs - 40,693 40,693 58,194
______ __ __ __
- 5,285,093 5,285,093 4,480,704
_ __ _ _
GOVERNANCE COSTS
2024 2023
£ £
Auditors' Remuneration 34,860 34,336
Bank Charges 299 210
General Expenses 1,228 1,648
Legal and Professional Fees 4,306 22,000
_____ _____
40,693 58,194
_____ _____

7. GOVERNANCE COSTS

8. NET INCOMING RESOURCES FOR THE YEAR

Total Funds Total Funds
2024 2023
£ £
This is stated after charging:
Auditors’ remuneration 34,860
______		 32,916
______

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 2024

10. TANGIBLE FIXED ASSETS

GROUP
Freehold & Fixtures Total
Leasehold Property Fittings &
Equipment
£ £ £
Cost/Valuation
At 1 April 2023 65,820,364 78,811 65,899,175
Additions 31,249 - 31,249
Disposals (2,181,249) - (2,181,249)
Gain on revaluation 2,212,788 - 2,212,788
___ ______ ___
At 31 March 2024 65,883,152 78,811 65,961,963
___ ______ ___
Depreciation
At 1 April 2023 - 78,811 78,811
Charge for the year - - -
___ ______ ___
At 31 March 2024 - 78,811 78,811
___ ______ ___
Net Book Value
At 31 March 2024 65,883,152 - 65,883,152
___ ______ ___
At 31 March 2023 65,883,152 - 65,883,152
___ ______ ___
CHARITY
FREEHOLD AND LEASEHOLD INVESTMENT PROPERTY
2024 2023
£ £
At 1 April 2023 4,783,364 6,266,697
Disposals - (1,150,000)
Revaluation (50,000) (333,333)
__ ______
At 31 March 2024 4,733,364
__		 4,783,364
______

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 2024

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 2024		 Nature of Business
Property Investment
Property Trading
Property Investment
Property Investment
Property Investment
Property Investment
Property Investment
Property Investment		 Company
Registration
No.
2024
2023
£
£
00844612
1,012,195
952,195
08895161
20,150
23,801
07849993
205,012
209,908
11674040
(476,300)232,100
01155157
2,983,3322,908,332
01493103
4,486,116
4,458,616
01299082
17,104,92016,392,262
01051420
13,762,79513,427,107
_
_
39,098,22038,603,921

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 £42,280,934 (2023: £41,685,635) based on the underlying value of the companies’ assets less liabilities.

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 2024 172,487 86,244
______ ______
Share of Profit 172,487 86,244
______ ______
Assets 7,710,376 3,855,188
Liabilities (4,291,043) (2,145,522)
______ ______
Capital and Reserves 3,419,333 1,709,666
Share of Net Assets at valuation 1,709,666

23

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

11a. INVESTMENT IN ASSOCIATES (Continued) INVESTMENT IN ASSOCIATES (Continued)
Riverhill Properties Limited – Property Investment 50% share
£ £
(Loss) for the year ended 31 March 2024 (105,044)
(52,522)
______ ______
Share of Loss (52,522) (52,522)
______ ______
Assets 5,124,580 2,562,290
Liabilities (4,474,842) (2,237,421)
______ ______
Capital and Reserves 649,738 324,869
Share of Net Assets at valuation 324,869
Mount Farm Limited – Property Investment 50% share
£ £
Loss for the year ended 31 March 2024 (9,877) (4,938)
______ ______
Share of Profit (9,877) (4,938)
______ ______
Assets 767,761 383,881
Liabilities (810,753) (405,377)
______ ______
Capital and Reserves (42,992) (21,496)
Share of Net Assets at valuation (21,496)
Total share of profit of Associates 28,784
Total share of net assets at valuation 2,013,039
12. STOCK
2024 2023
Group
Charity		 Group
Charity
£
£		 £ £
Stock 176,662 - 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.

24

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

13. DEBTORS

DEBTORS
Trade Debtors
Accrued Income
Loan Investments
Other Debtors and Prepayments		 Group
£
678,823
-
920,372
2,266,387
___
3,865,582
 2024
Charity
£
88,851
880,671
920,372
361,841
___
2,251,735
Group
£
398,226
-
2,749,986
3,116,231
___
6,264,443
 2023
Charity
£
89,613
880,172
2,749,986
321,648
___
4,041,419

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank Loans and Overdraft
Trade Creditors
Other Creditors and Accruals		 Group
£
166,000
136,142
428,483
___
730,625
 2024
Charity
£
-
94,835
1,327,540
___
1,42,375
Group
£
1,019,031
441,174
404,532
___
1,864,737
 2023
Charity
£
-
111,229
592,718
___
703,947

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
£
12,264,102
 2024
Charity
£
2,014,571
Group
£
13,005,389
 2023
Charity
£
2,394,336

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.

25

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

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.

17. ANALYSIS OF CHARITABLE FUNDS

Funds

Funds
At 31 March
At 1 April 2023 Income Expenditure 2024
£ £ £ £
Unrestricted Funds 42,639,933 6,925,051 (8,535,087) 41,029,897
Restricted Funds 7,046,467 - - 7,046,467
─────── ────── ─────── ───────
49,686,400 6,925,051 (8,535,087) 48,076,364
═══════ ══════ ═══════ ═══════

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Funds Restricted Funds Total Funds 2024
£ £ £
Investments 60,925,675 7,046,467 67,972,142
Current assets 4,734,949 - 4,734,949
Creditors less than 1 year (730,625) - (730,625)
Creditors more than 1
year (12,264,102) - (12,264,102)
Provisions (11,636,000) - (11,636,000)
─────── ────── ───────
Net assets 41,029,897 7,046,467 48,076,364
═══════ ══════ ═══════

26

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

19. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments
measured at amortised cost 3,865,582 6,264,443
Financial assets at fair value through the
Statement of Financial Position 692,705 433,849
══════ ══════
Financial liabilities measured at amortised cost
Financial liabilities measured at
amortised cost 12,994,727 14,870,126
═══════ ═══════

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.

27

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

21. NOTES TO THE STATEMENT OF CASH FLOW

a. Reconciliation of net cash provided by operating activities:

2024 2023
£ £
Net expenditure for the year (1,610,036) (4,875,238)
Adjustments for:
(Gain)/Loss on revaluation (2,212,788) 1,640,397
Interest Receivable (202,974) (272,336)
Interest payable 861,792 715,081
Income from investments (3,720,987) (3,419,249)
Profit on sale of fixed assets (621,673) (111,880)
Decrease in Debtors 2,398,861 1,388,227
(Decrease)/Increase in Creditors (1,134,112) 205,784
Income from associates (28,784) (176,297)
Taxation 1,439,071 1,206,167
_ _
(4,831,630) (3,699,344)
_ _
Net Cash (used)/ provided by operating activities (4,831,630) (3,699,344)
_ _
b. Analysis of cash and cash equivalents
2024 2023
£ £
Cash at Bank 691,929 433,073
Bank overdraft (166,000) (1,019,031)
_ __
Total cash and cash equivalents 525,929
 (585,958)
_ _

28

M. & R. GROSS CHARITIES LIMITED (LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

21. NOTES TO THE STATEMENT OF CASH FLOW (Continued)

c.
Analysis of changes in net funds
At 31 March
2023
£
Cash at Bank
433,073
Debt:
Due within one year
(1,019,031)
Total
(585,958)
Debt falling due after
more than one year
(13,005,389)
Net Funds
(13,591,347)		 Cash flows
£
258,856
853,031
1,111,887
741,287
1,853,174		 At 31 March
2024
£
691,929
(166,000)
525,929
(12,264,102)
(11,738,173)

22. RELATED PARTY TRANSACTIONS

Subsidiary Undertakings £2,494,238

Medinapoint Investments Limited £32,979

Mrs R Gross and Mrs S Padwa, trustees of this charity, are also directors of the above-mentioned company and the subsidiary undertakings.

29