CHARITY NUMBER: 267037 OSHWAL ASSOCIATION OF THE UNITED KINGDOM ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB www.lubbockfine.co.uk OSHWAL ASSOCIATION OF THE UNITED KINGDOM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 CONTENTS PAGE Legal & Administrative Details Report of the Executive Committee Independent Auditors, Report 8-11 statement of Financial Activities 12 Balance Sheet Stslement of Cash Flows 14 Notes to the Financial Statements 15-25 OSHWAL ASSOCIATION OF THE UNITED KINGDOM LEGAL AND ADMINISTRATIVE DETAILS CHARITY NUMBER: 267037 EXECUTIVE COMMITfEE: Office Bearers: President Secretary Treasurer Name Nilesh Bhagwanji Shah Mala Dinesh Shah Tushar Jayantilal Shah Other Members.. Poonam Chimanlal Shah Sudhir Meghji Shah Varsha Dilip Shah Rekha Mahesh Shah (Resigned on 10 December 20211 Keval Rajnikant Shah {Resigned on 15 October 20211 Area Trustees: East Leicester Lulon Northampton North North East North West South West 'shore Lalji Haria Nikunj Prabhulal Shah Nitaben Pankaj Shah Bhikhalal Velji Bidd Shailan pren￿hand Shah Nishma Ramesh Shah Nilesh Dhanraj Shah Paresh Raishi Shah Shejal Nilesh Shah CHARITY NUMBER: 267037 PRINCIPAL OFFICE: Oshwal Centre Coopers Lane Road Northaw Herts EN6 4DG WEBSITE: www.oshwal.org AUDITORS: Lubbcd Fine LLP Chartered Accounlanls & Registered Auditors Paternoster House 65 Sl Paul's Churchyard London EC4M 8AB BANKERS: Barclays Bank plc National Westminster Bank PIC Bank of Baroda Flagstone Investment Management Limtted Nationwide Building Society OSHWAL ASSOCIATION OF THE UNITED KINGDOM REPORT OF THE EXECUTIVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 The Executnie Committee present their annual report with the audited financial statements of the Association for the year ended 31 December 2021. The financial Statements have been prepared based on the accounting policies set out in note 1 to the ffinancial statements and comply with the requ1￿mentS of the Charities Act, Consb'tulion of the Association, and Accounb'ng and Reporting by Charities.. ststemenl of Recommended Practice applicable to charitses preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 1021 leffecb've 1 January 20191. Objects of the Association The objects of the Association. as defined by the Constitulion are= the 8dv8ncement of the Jain religion relief of povety advancement of education protection of health and welfare other charitable objects as the Trustees of the A550ciation may from b.me to b.me decide. thin these objects the Association.. has constructed and is maintaining a Derasar {Jain temple), at the Oshwal Centre in Potters Bar,. maintains community halls currenuy at Potters Bar IHertfordshirel, Kingsbury (North West Londonl and Hounslow Imiddlesexl and Croydon Isuttey, in prO￿S of being refijtbishedl, which can be hired by its members and others for celebratson of births, marriages, and religious functions, etc., facilitates programmes and ceremonies to mark auspicious days as prescribed by the J8in religion., facilitates sporting functions and fitness and yoga dasses for members encompassing all age groups and social events for the elderfy., facilitates learning of the Gujarali language and C￿￿ure for younger members of the community in several areas., holds seminars, lectures, workshops etc. for advancement of health and welfare of members, providing guidance for further educab.on and career advancement. and for a deeper understanding of the Jain religion. Public Benefit The Trustees have regard to guidance published by the Charity Commission on public benefit. when reviewing their aims and objectives and in planning activities. The Trustees a￿ayS ensure that the programs undertaken by the Association ate in line with its eharit8ble objects. Oryanisational Structure The Associab'on is govemed in ac£ordance with the temis of its Constitution. al Executive Committee The names of the current members of the Executive Committee and those who held office during the financial year are set out on page 1. The members of the Executive Committee, who are the Charity Trustees for the purposes of the Charities Act 2011, conduct the operations of the Asswiation. Full-time paid employees and volunteers undertake the day to day management of the Association. Nine geographically defined branches, referred lo as Areas, report to and are responsible to the Execub"ve Committee. The Areas have their own local committees and are responsible for the various activities operated in furtherance of the Association's objects in their respecbve areas. OSHWAL ASSOCIATION OF THE UNITED KINGDOM REPORT OF THE EXECUTIVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 The Executive Committee normalty comprises of four Office Bearer5 and twelve members who are elected by the members of the ASS[￿lation for a period of two years. In addition each of the nine Area Chairpersons is also a Trustee of the Association. However at 31 December 2021 the Executive Committee comprised of three Office Bearers, three elected members (five in 20201 and nine Area Chairpersons. An election did not take place in April 2021 due to the Covid restrictions and the Charity Commission was notified of this. An election is due to take plxe in April 2022 when the Office Bearers and Members will be elected. When new Members are elected to the Executive Committee, they are given an introduction lo the work of the Association and are provided with information they need lo fulfil their roles, including information about Ihe role of Charity Truslees and Charity law. The Executive Committee meets on average On￿ a month to discuss the affairs of the Association as a whole and due to Covid the meetings are now held via Zoom. bl Sub-committees To 8SSlSt in the operation and management of the Association, sub-commtttees are formed. Each such committee is chaired by a member of the Executive Committee and comprise5 of several other members of the Association as required by the Chairperson. Sub-committees in operation during the year were". Sub£ommlttee Audit Education Finance Media & Communication Personal & Professional Development Projects and Property Management Religion Youth Culture Chairpewson Nilesh Bhagwanji Shah Rekha Mahesh Shah IResigned 10 December 20211 Tushar Jayantilal Shah Sudhir Meghji Shah Mala Dinesh Shah Tushar Jayantilal Shah Varsha Dilip Shah Poonam Chimanlal Shah Vacancies created in the SutrTrCommittees by Members leaving were not filled due to very little actsvity tsking place during the year. l Board of Adviso Following a change in the Constrtution, the Board of Advisors now Comprise past Presidents, who have served the Association and do not hold any office. In addition, there a￿ six elected members. The Board of Advisors advise the Executive Committee from time to time and are involved in the grievance and disciplinary procedures. The following members seNed the Association as members of Board of Advisors during the year. Rati Devchand Shah Keshaval Vrajpar Shah Rumit Devchand Shah Nirmal Chandrakant Shah Dixil Dhirajlal Shah Nilesh Sureshchandra Shah Minesh Venichand Shah (President 1998-2000) (Elected Member 20171 (Elected Member 20171 (Elected Member 20171 (Elected Member 20181 (Elected Member 20181 IElected Member 20181 OSHWAL ASSOCIATION OF THE UNITED KINGDOM REPORT OF THE EXECUTIVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 dl Remuneration policy for key managernent personnel The Trustees consider the members of the Execub've Committee comprise the key management personnel of the charity in charge of directing, controlling. running and operating the Association on a day to day basis with the support of the administrabve staff. None of the Trustees received any remunerab'on or benefits in the year for providing their servI￿s. Flnanclal Revlew and Results forthe Year The Covid pandemic and related restrictions have adversely impacted Ihe global economy. The Association, like other charitsble organisations, has seen a significant decrease in donation income due lo the can￿lIatIOn of gatherings for religious and other events. where a large proportion of donations are usually raised. This was slightly offset by holding religious fvnctions via Zoom and YouTube which encouraged members to continue to make donations. Income in the year increased by £455,383 from £920.556 in 2020 to £1,375,939. Hall hire income increased to £749,491 compared lo £152.607 in 2020 and £923,483 in 2019 and the increase was a result of the relaxation of Covid Rules. However the hall hire income remained below pre pandemic levels. Expenditure in the year has decreased by £182.217 from £1.273,290 in 2020 to £1,091.073 in 2021 mainly due to 8 reduction in propety and religious expenditure. The increase in ineome and reduction in expenditure resulted in a net surplus in the year of £284,866 compared to a loss of £352,734 in 202012019- Surplus of £519,773). The net assets of the Association increased by £284,866 from £22,395,745 on 31 December 2020 to £22,680,611 on 31 December 2021. Activities Undertaken in the Year The usual activities of the Association have been impacted by the Covid pandemic and related restrictions in 2021 but to a lesser extent than in 2020. It is important to acknowledge that the important work that the Associats"on perfomis has been adapted in response lo the pandemic and the following activities were undertaken during the year.. The Association embarked on helping our fellow Oshwals suffering from Covid by making donations. Donations for this were given generously by our members. Auspicious days in accordance with the Jain Calendar were ￿lebrated using Zoom and other online platforms. The postponed opening of the Derasar extension and refurbishrrEnl project that was completed in March 2020 was held on 19 September 2021 and was well attended by invited donors. Derasar Dhaja Din was held on 19 September 2021 and was again very well attended. Derasar Lighting ceremony was held on 7 November 2021 and was attended by over 300 members. Fundraising schemes continued including the £120 per member per year scheme. Means of communication with members in use of electronic media continued to be enhan￿d. The website has been developed further lo allow for online lickeling and donations. In accordance with the main objective of following and propagating the Jain farth and community cohesion with members and the wider communty, all actThiities undertaken fulfilled these aims and objectives within the constraints of Covid related restn"ctions. More use of technology was made to communicate with our members. OSHWAL ASSOCIATION OF THE UNITED KINGDOM REPORT OF THE EXECUTIVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 The KPI'S are considered to be the number and frequency of acttvities taking place and involvement of individuals in such acb"vib"es. Unfortunately due to Covid restrith"ons. these KPIS were not achieved again in 2021. Community cohesion is an important aspect of the Association's work. The current facilities with the further developments being undertaken will enable the Association to address and deliver progfftmmes and events to the changing demographic of the members. Future Plans The Executive Committee has identified the following mediunFtemi objectives which will be reviewed on an annual basis within the current Covid restrictions.. Refurbishment of Oshwal House (Listed Building). Potters Bar Refurbishment of Oshwal Shanti Centre. Croydon Refurbishment of car park at Oshwal Ekta Centre. Kingsbury Extension of Oshwal Shakti Cenlre, Hounslow Continuing with the feasibility study to enhan￿ facilib.es at Oshwal Centre when "green belt" rules are relaxed. To continue to organise seminars, lectures and events in order to promote the principles of Jainism especially amongst the younger members of the community. To organise and present seminars and lectures on health and welfare matters for the benefit of the members of the Association. The Association has a vast resource of knowledge and experience which will be used positively ft)r all future plans. Going Concern The Trustees consider that there are no material uncertainties about the Associab'on's ability to continue as a going concern. Rlsk Management In the short and medium term there are no significant risks, except for a catastrophic Occurren￿ al the Association's properties. Adequate insurance provisions have been made lo mitigate such riskslpotential losses and these are reviewed annually. Regular risk assessments are undertaken for Health and Safety issues and action is taken to reduce or eliminate any risks identified. The Executive Committee is responsible for the management of the risks faced by the Association. Al significant activities undertaken are subject to risk review as part of the initial project assessment and implementation. The Execub"ve Committee reviews the major risks thal the Association faces on a regular basis and controls are established as appropriate. The key controls used by the Association indude". Fomial agendas and minutes for all Execub"ve Committee. Areas and Sulkcommittee meeting Detailed terms of reference for all Committees Detailed budgetary presentation for each activity for approval by the Executive Committee Established organisalional structure and lines of reporb.ng Formal written reports to the Executive Committee Clear authorisation and approval levels Vetting procedures as required by law for the protection of the vulnerable Engagement of extemal professional advisors as and when necessary OSHWAL ASSOCIATION OF THE UNITED KINGDOM REPORT OF THE EXECUTIVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 Through controls established for the running of the As%)ciation. the Executive Committee is satisfied that the major risks identified are adequately mitigated where necessary. It is recognised that the controls estsblished can only provide reasonable but not absolute assurance that major risks have been adequately managed. Reserves Policy A substantial proportion of the reserves shown in the balance sheet are represented by assets other than cash. Of the resetves al 31 December 2021 of £22,680,611 net current assets amounted to £4,141,934. The Executive Committee consider the "free reserves" of the Association lo be £3,964,476 being the net current assets less restricted reserves. The Executive Committee have reviewed the Association's need for free reserves and have decided to maintain these to cover the annual recurring expenditure of the Associalion which has amounted to approximately £1.4 million on average over the past 4 years. The level of free reseNes are monitored and reviewed regularty by the Executive Committee. Investment Policy The Executive Committee takes a very prudent view to the investment of surplus funds as these are being retained for furthering the objects of the Association. Accordingly, fvnds not required for expenditure in the short term are pla￿d on deposit with the Association's bankers. Freehold Properties The Associabon owns the following freehold propeth.es through its wholty owned subsidiaries.. Lashglow Limited.. Oshwal Centre in Northaw, Hertfordshire Oshwal Ekta Centre In Kingsbury, North West London Oshwal Shakti Centre in Hounslow, West London SLM Properties Limrted.. Oshwal Shanti Centre, 58-60 Wndmill Road in Croydon, South London Lashglow Limited and SLM Properties Limited are dOM￿nt companies holding the properb'es as a nominee on behalf of the Association. Accounting and Reporting Responsibilities The Execubve Committee is responsible for preparing the Report of Ihe Executive Committee and the financial statements in accordance with charib.es Act 2011 and United Kingdom Generally A¢￿pted Accounting Practice. The Charrties Act 2011 requires the Executive Committee as Charty Trustees of the Association to prepare accounts for each financial year which give a true and fair view of its financial activities during the year and of its financial position at the end of the year. In presenting those financial statements, they are required to". select suitable accounting policies and then apply them consistenUy', observe the methods and principles in the Charities SORP FRS 102., make judgements and estimates that are reasonable and prudent., follow applicable UK accounting standards and the Charities SORP FRS 102, disclosing and explaining any departures in the accounts., prepare the financial statements on a going concem basis unless it is inappropriate lo do so. 10 _**Nilesh Bhagwanji Shah President**_ _**Tushar Jayantilal Shah Treasurer**_ OSHWAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS, REPORT TO THE EXECLrnVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 OPINION We have audited the financial statements of Oshwal Assctiation of the United Kingdom (the 'Charity'l for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including 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 {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the Chanty's affairs as at 31 December 2021 and of its Incoming reSoUr￿S and applicab.on of resources 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 tequirements of the Charities Act 2011. BASIS FOR OPINION We conducted our audit in accordance with Intemational Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's resF)onsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant lo 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 eviden￿ 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 conduded that the trustees, use of the going COn￿M basis of accounting in the preparation of the financial statements is appropriate_ Based on the WOTk we have performed. we have not identtfied any material uncertainties relating to events or conditions that. individualty or collectively. may cast signfficant doubt on the Charity's ability to continue as a going concem for a peri(xl of at least hvelve Months from when the financial Statements are aulhorised for issue. Our responsibilities and the resKX)nsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, ex￿pt to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibilty is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OSHWAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS, REPORT TO THE EXECLrnVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 Icontlnuedl MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing lo report in respect of the following matters in relabon lo which the charib.es (Accounts and Reports) Regulations 2008 require us to report to you if. in our opinion.. the information given in the trustees. report is inconsistent in any material respect with the financial statements, or sufficient accounb'ng records have not been kep(" or the financial statements are not in agreernent with the accounting records", or we have not received all the infotmation and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Iruslees, responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being sats'sfied that they give a true and fair view, and for such internal control as the Iruslees determine is ne￿Ssary lo enable the preparation of rinancial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity's ability lo continue as a going COn￿rn, disclosing, as applicable, matters related to going COn￿M and using the going concem basis of accounting unless the Iruslees either inlend lo liquidate Ihe Charity or lo cease operations, or have no realistic altemalive but lo do so. AUDITORS. RESPONS181LITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effecl thereunder. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misslaternent. 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 15 not a guarantee that an audit conducted in accordan￿ with ISAS IUKI will a￿VayS 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 responsibilrties, outlined above. to detsct material misstatements in respect of irregularities, including fraud. In identifying and assessing risk of material misststement in respect of irregularities, including fraud and non-complian￿ with laws and regulations, we considered the following.. The nature of the sector and the impact of Covid 19 on financial and operating performan￿ and policies., Enquiries of management, including obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to. identifying, evaluats.ng and complying with laws and regulations and whether they were aware of any Instances of non-compliance delecling and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud., and the intemal controls established to mibgate risks related to fraud or non-compliance of laws and regulations", and Discussions among the engagement team regarding how and where fraud might occur in the financial ststemenls and any potential indicators of fraud. The engagement team includes audit partners and staff who have extensive experien￿ of working with charities in similar sectors and this experience was relevant to the discussion about where fraud risks might arise. OSHWAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS, REPORT TO THE EXECLrnVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 Icontlnuedl We also obtained an understsnding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK charib.es Act, Charities SORP and FRS 102_ In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which May be fundamental lo the charity's ability lo operate or to avoid a material penalty. These include compliance with the Charity's Constitution. the Charities Act 2011, the Charity's operating leases. heatth and safety regulakn"ons. envi￿n￿ents1 regulations etc. As a result of these procedures. we consKlered the particular areas that were susceptible to misststemenl due lo irregularities, including fraud were in respect of cash donations and recording and utilisation of reslricled funds. In common with all audits under ISAS IUKI, we are also required lo perform specific procedures to respond to the risk of management override. Our procedures to respond to risks identifi'ed included the following.. Our procedures lo respond lo risks identified induded the following.. Reviewing the financial statement disclosures and testing to supporting documentab'on to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial stalemenls., Enquiring of management conceming actual and potentsal litigation and claims., Performing analytical procedures to idenb.fy any unusual or unexpected relationships th8t may indicate risks of material misstatement due to fraud". Reading minutes of meetings of those charged with governan￿", Performing year on year analytical procedures on cash donation collections and testing on a sample basis the procedures in Pla￿ in respect of collecting. counting and recording cash donations", Reviewing validity of expenditure on a sample basis and in particular reasonableness of all(Kalion of expenditure against restricted funds". Verifying income lo receipts and other supporting documentab.on on a sample basis to confirm classification between restn.cted and unrestricted funds". In addressing the risk of fraud through management override of controls, testing the appropriateness of joumal entn.es and other adjustments." assessing whether the judgements made in making accounting estimates are indicabve of a potential bias." and evaluating the rationale of any significant transactions that ate unusual or outside the notmal course of the Charity's operations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial ststements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentstion. A further description of our responsibilits.es for the audrt of the financial statements is located on the Financial Reporting Council's website at." vhvw_frc.org.uklauditorsresponsibilib.es_ This description forms part of our Auditors, Report. 10 OSHWAL ASSOCIATION OF THE UNITED KINGDOM INDEPENDENT AUDITORS, REPORT TO THE EXECLrnVE cOMMI￿EE FOR THE YEAR ENDED 31 DECEMBER 2021 Icontlnuedl USE OF OUR REPORT This report is made solely lo the Charty's trustees. as a body. in accordance wrth Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's trustees those matters we are required to state to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law. we do not a￿pt or assume responsibility to anyone other than the charity and the Charity'5 trustees as a body. for our audit work. for this report. or for the opinions we have fomied. Davld Chandra (Senior Statutory Auditor) For and on behalf of Lubbock Fine LLP Chartered Accountants & Registered Auditors Palernosler House 65 St Paul's Churchyard London EC4M BAB Dale". 11 February 2022 Lubbock Fine LLP is eligible for appointment as auditor of the chartty by virtue of its eligibility for appointment as auditor of a company under 5eth.on 1212 of the Companies Act 2006. OSHWAL ASSOCIATION OF THE UNITED KINGtKIM STATEMENT OF FINANCIAL ACTivrnES FOR THE YEAR ENDED 31 DECEMBER 2021 Unrèstrictèd Funds R•strict•d Fund¥ Total Funds 2021 Total Funds 2020 Note INCOME Donation Income.. Donations Subsuiptions Activities to generate funds.. Property income Fundraising aCb'v￿.eS Publications and sundry Bank interest Other interest Charltable Actlvltles Govemrnent Grants 2{al 93,85KI 460,524 5.499 505,218 7.389 5.499 749,491 40.588 4,011 11:8CM)I 18.056 48,525 51.045 749,491 40.588 4,011 11,8001 18.056 48,525 51,045 152,607 60.961 14,214 28,059 21.267 58,036 72,805 21bl 21cl 21el 21dl 1282.049 1 375 939 920 556 EXPENDMJRE For Generated Funds Subscriptions Social and fundr815ing athitses Publications Properties For Charitable Activiti Religious Educats"on Youth activrties Donations 6,954 29,186 30.263 848,160 6,954 29,186 30.263 848,160 8,415 43,159 53.989 907,747 3{al 31bl 31n 31cl 31dl 2.123 96,569 27,865 10.040 42,036 147.135 33,191 12.482 67,172 27,865 10.040 31el 41,446 1.047.504 43.￿9 1.091.073 1.273.290 NET INCOME IDEFicrr) 234.545 50.321 284.866 1352.7341 Transfer between Funds 42,261 142,2611 Net movement In Funds In the Year 276,8( 284,866 1352,7341 Total Funds brought forvrard 22.226.347 169.398 22,395.745 22.748.479 TOTAL FUNDS CARRIED FORWARD 22 503 153 22680611 22 395 745 Unless stated in the notes, all comparative amounts relate to unrestricted fijnds. OSHWAL ASSOCIATION OF THE UNITED KINGDOM BALANCE SHEET AS AT 31 DECEMBER 2021 2021 2020 FIXED ASs￿s Tangible assets Investments 41a} 18,538,674 18,992,563 18,$38,677 18,992,566 CURRENT ASSETS Debtors Cash at bank & in hand 142,227 4,230,￿2 1%,839 3,483,378 4,373,129 3,680,217 CREDITORS.. Amounts falllng du• within onè yèar Net current assets 1231,1951 1277,0381 4,141,934 22.680.611 3,403,179 22.395.745 NET ASSETS FUNDS Restricted Unrestricted 10 10 177.458 22.503.153 169.398 22.226.347 22.680.611 22.395,745 These financial statements were approved by the Executive Committee on 10 Febnjary 2022 and were signed on their behalf by Nilesh Bhagwanji Shah Pr•sid￿t Tushar Jayantilal Shah Tr•asuror OSHWAL ASSOCIATION OF THE UNITED KINGDOM STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2021 2021 2020 Cash flows from operating activities- Nel income Ideficitl for the reporting pgri1)d Adjustment for.. Depreciation Interest income Decrease in debtors Decrease in credf(ors 284,866 {352.7341 465,213 116,2561 54,612 145,8431 464,407 149,3261 22,757 116,6391 Net cash provided by operating activities 742,592 68,465 Cash flows from investing activities: Interest income Purchase of propety, plant and equipment 16.256 111,3241 49.326 {651,6861 Net cash provided by (used inl investing activities 4.932 602.360 Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 747.524 3,483,378 {533,8951 4,017,273 Cash and cash equlvalents at the end of the reporting perfod 4 230 902 3 483 378 14 OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 1. ACCOUNTING POLICIES The principal aecounting policies adopted, judgements and key sources of esb'mation uncertainty in the preparation of the financial statements are as follows. Basis of preparation and assessmenl of going concem The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise slated in the relevant notelsl to these accounts. The financial statements have been prepared in accordan￿ with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191 and the Financial Reporting Stsndard applicable in the United Kingdom and Republic of Ireland IFRS 102} and the Charities Act 2011. The Association constitutes a public benefit enbty as defined by FRS 102. The Trustees consider that there are no material uncertainties about the Association's ability to continue as a going concern. The principle accounting policies, which have been applied consistently, are set out below. Consolidation The financial statements represents the results of the Oshwal Association of the United Kingdom I'the Association l. The results of Lashglow Limited and SLM Properties Limited have not been consolidated since these subsidiary companies are dormant and simply act as nominees for holding the Association's properties. Judgements in apptying accounting policies and key sources of estimation uncertainty There are no significant areas of judgement or key source5 of esbmation uncertainty arising from the preparation of the financial statements. Fund Accounting Unrestricted funds comprise accumulated surpluses on general funds and these are available for use at the discretion of the Executive Committee in the furtherance of the general charitsble objectives of the Association. Reslricled funds are those that can onty be used for restricted purposes within the objects of the Association. Reslriclions arise when specified by donors or when funds are raised for particular restricted purposes. Further explanation on the nature and purpose of each of the restricted fvnds is included in note 10 to the financial slatemenls. Incoming Resources Incoming resources represents the total income r￿1Vable during the year which is recognised on the accruals basis of accounting except for." al All donations, including gift aid in relab.on thereto, are induded in the financial statements in the year in which they are received. bl Membership subscriptions, which include life subscriptions, are credited to income in full in the year they are re￿ived, as they are not refundable. OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 ACCOUNTING POLICIES leontinuedl Education and youth activity fee income is accounted for in the period to which il relates (which corresponds to the academic year from September to July). Income received in advance is held as deferred income. Revenue grants are credited as incoming resources when they are receivable provided conditions for receipt have been complied wrth. Capital grants are recognised as income when notification is re￿ived. The income is matched with the relevant expendrture for which Ihe grant has been received. Donated assets, goods and servi￿$ are included at the value to the Association where this can be quantified and a third party is bearing the cost. No aTr￿Unts are included in the financial statements for servi￿5 donated by volunteers as these cannot be quantified. Resources Expended All expenditure is accounted for on an accruals basis. The Association is not registered for VAT 8nd its expenses are therefore inclusive of VAT which cannot be tecovered. Donations are made to individuals and organisations in order to further the objects of the Association. Donations made to relief organisations are included in the Statement of Financial Activities when approved by the Executive Committee. The value of such donations unpaid al the year*nd is accrued. Donations where the beneficiary has not been informed or has to meet certain Conditions before it is released are not accrued but noted as financial commitments. Wherever possible, expenditure is allocated specffically to the relevant activities for which it is incurred. Vvhere costs cannot be direcuy attributed they have been allocated to activities on a basis consistent with the use of the resources. Financial instruments The Association onty has financial assets and financial liabilibes of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their setuement value. Investments Investments in subsidiary undertakings are induded in the financial statements at cost less any provision for diminution in value. Tangible Fixed Assets Tangible fixed assets are stated at cost. The Executive Committee consider that Ihe functional freehold buildings are maintained in such a stale of repair that their residual values are al least equal to their nel book value. No depreciation has been charged as the lives of these buildings are considered lo be so long and their residual values so high that there is no significant annual depreciation. No depreciation is provided on freehold land or the Derasar. An annual impairment review is made, in a¢xordance wilh the requirements of the Charities SORP FRS 102, to ensure that the recoverable amounls of the assets are not lower than their current values. 16- OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 1. ACCOUNTING POLICIES {continued) Depreciation is charged on cost at the following rates so as to write off the cost of each asset over its estimated useful economic life. Freehold property improvements- 10Yo Straight line basis Other fixed assets- 200/0 Straight line basis Disposal of freehold propety is recognised in the financial statements when significant risks and rewards of ownership have been transferred to the purchaser", this is on legal completion or unconditional exchange. There has been no disposal of freehold property in 2021. Debtors Other debtors are recognised at the settlement amount due and prepayments are valued al the amount prepaid net of any trade discounts due. Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors Creditors are normally recognised at their settlernent a￿K)unt. Accruals are valued at the amount accrued nel of any trade discounts due. Deferred income is recognised where amounts received relate lo future periods. 17- OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INCOME Total 2021 Total 2020 Un￿strIcted Restrlcted lal Donations Derasar Maintenan Jivdaya- Anukampa Sew8 Don8tion Derasar Extension General Covid Funding £120 Scheme Paryushan Swarnivatsalya Swarnivatsalya for India Bhandar Religious functions Water Filter Donation Gift Aid 2,123 13,665 2.123 13.665 10.805 26.543 50.380 74.8(k% 14.285 42.261 42.261 31.205 35.841 65.244 45.457 31.205 35.841 65.244 45.457 66.365 50.926 6.847 8.452 13.651 103.133 9.568 69.457 22.770 122.354 22,770 122,354 79.604 366.634 93.890 460.524 505.218 Gift aid included in donabons was as fi￿1¢Y￿..- S8wa Donation Covid Funding Der35ar Extension Swarnivatsalya for India Water Fittei Donation Other 7.960 4.102 4.102 3.352 12.617 1.605 1.513 69.457 79,604 79,604 87.058 93.152 During 2020. donations Income totslled £505.218 of which £180.554 was restiicted and £324,6S4 was unrestricted. Ibl Fundraisin9 a¢tivlUes Culture & heritage programrnes Welfare proJrarnmes 32,3L 8.282 47.024 13.937 8,282 40.588 40 588 60 961 lel Publieations and Sundry Publications 4.011 4.011 14.214 4.011 4.011 14.214 Idl Charitable a¢tivitie$ Education Fees Prograrntnes 38.139 38.139 40.008 38.139 38.139 40.008 Other Charitable activitoes Marriage registration Youth activities 2.718 2.718 7.668 1.105 16.923 48.525 48.525 58.036 lel Other Interest Interest on Secure(J Debt 18.056 18056 OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 RESOURCES EXPENDED Total 2021 Total 2020 Unrestrlcted Restrlcted lal Social and fundralsing activities Welfare programmes Culture and Heritage Administration cost allwation 12,244 3,033 13,￿9 12,244 3.033 13.909 14.330 11.997 16.832 29.186 29 186 43.159 Ibl Publications anil sundry Publications Websrte Administration cost all￿atron 13.924 2.430 13.909 13.924 2.430 13.909 36,105 1,052 16,832 Icl Religiou5 and Jinalay P3ryush3n Jinalay adtninistration and tnaintenan othei ￿ligiouS functions Administrabon cost allocab.on 3.585 47.09) 15.953 27.818 3.585 49.213 15.953 27.818 2.123 100,316 13,156 33,663 2.123 .569 147 135 Idl Education Teachers allowan Class hiie Prograrntn85, books & material, etc 20.052 5.433 20.052 5.433 23.628 8.643 920 27,865 27.865 33.191 lel Donadons Jivdaya- Anukampa Basnet Gaun Schod Nepal Others Covid funding Sewa Water Filter installation (>J5t 11,121 13.330 1.008 s￿ 30.325 30,325 50,884 1,950 590 42.036 67.172 During 2020. donations made totalled £67,172 all of which was reslrided. OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 RESOURCES EXPENDED Icontlnuet11 Propertles 2021 2020 Salaries and NIC Council tax 72.999 5.914 76.436 76.499 108.446 24.153 18.500 465.213 72.626 4.917 67.951 92.573 161.694 26.511 17.068 464.407 Administration cost alloG8tion Repairs and Maintenance Insuran South London Rental Cost D8pieciatson Central and Areas 907 747 gl Management & AdmInIstra￿on 2021 2020 Printing, postage and stab'onery Bank charges Salaries and NIC General office expenses Technology and sofb*are expen5e5 Telephone line and broadband instsllation Audit fees Ar88 Meeting expens8S 2.042 6.013 97.017 141 3.267 11.999 18.0 610 3.268 6.353 104.783 808 13.905 13.149 21.000 5.051 139.089 168315 Manag8rn8nt and administrabon rA)sts have allocAted on an 8stimated basis to refl8Ct r8sourc8 expenditure as follow5".- 2021 2020 Properties Religious Soaal and fundraising aCtiv￿"e$ Publications and sundry Subscriptions 55 20 10 10 55 20 10 10 76.499 27.818 13.909 13.909 6.954 92.573 33.663 16,832 16,832 8,415 139089 168315 (h Emolum•nts 01•m￿1)yO•S Gross salaries National Insurance contributs.ons 195.450 13.035 202,070 14.161 208.485 216231 Average number of stsff employed No employ88 received remuneration of £60.000 or more in the current or prewous year. None of the members of the Exe¢uts've Committee rectNed any remuneration or benefits during the current or previous year, and there were no trustee expenses incutted durit¥J the current or prioi year. The As50a3tion conside[5 key managernent pe￿onnel to LE the Tw5tees. The total employment benefits of key management personnel were £nil12020- £nill. OSHWAL ASSOCIATION OF THE UNITED KING￿111 NOTES TO THE FINANCIAL STATEMENTS FOR THE Y&4R ENDED 31 DECEMBER 2021 TANGIBLE FIXED ASSETS Freehold Functional Land and Buildings Frpehold Pwp8rty Improve- P￿n[ Equlpment and Utensils De¥ek•p￿Trt Der￿r Costs Cornpbpx Total lal COST As at 1 January 2021 Additions 9.598.681 4.463.825 6.887 401.844 6.751.214 1.283.477 4.437 22.499.041 11,324 As at 31 December 2021 9,598.681 4.470.712 401.844 6.751,214 1.287.914 22.510.365 DEPRECIATION As at 1 January 2021 Charge for the year 2.270.964 447.071 1.235.494 18.142 3.￿￿.478 465,213 As at 31 December 2021 2.718.055 1.253.636 3.971.691 NET BOOK VALUE As at 31 D@￿mber 2021 9,598.681 1.752.657 401.844 6.751,214 34,278 18.538,674 As at 31 [k￿mber 2020 9,598.681 2.192.841 401.844 6.751.214 47,983 18.992,563 D8veloprnent cost5 of £401.844 relate to preliminary costs for the fvture devehjwent of the 05hwal Centre. Ibl The net bock values of th8 freehokl fvnctional Land znd buihyings comprise". 2021 2020 Oshwal House Assembty Halls Oshwal Ekta Centre Oshwal Shaktr Centre Oshwal Shanti Cent 1.518.440 2.612.791 2.411.375 528,625 2.527.450 9.598,681 1.518.440 2.612.791 2.411.375 528,625 2.527.450 9,59B,681 The ExecutNe Commrttee are of Ihe opinion that the market value5 of frEehokl funcbonal pr¢Jperties are not les5 than their book value at 31 De￿Mbèr 2021. Icl Analysis of net book value of freeholl property improvernents.. Balance at AddrtiDnS during 2021 Deprpciation charye in 2021 Balance at 31.12.2020 31.12.2021 Assembty Ha115 0shw31 House Oshwal Ekts Centre 719.882 664.676 808.283 2.1#2￿41 231,642 94,425 121,004 •A7,071 488,240 570,251 694,166 1,752,657 6.887 887 21 OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 5. INVESTMENT IN SUBSIDIARY UNDERTAKINGS 2021 2020 At cost The Association owns the whole of the iSs￿d or(linary Sha￿ caprtal of Lashglort Limited and SLM Properties Limited, Companies registere(l in Englan¢J aThJ Vvales with company numt£rs 01651206 and 11630794 spectively. The companies hold freehold properties as a nomifw on behalf of ihe Assouab"on. They have not traded either during the current or the previous year. The past or present office bearers of the Asswab"on are directors of Lashglow Limited and SLM Properbes Limited. The results of Lashglow Lirnited and SLM Properties Lirntted have not been cowtsolidated Sin￿ these subsidiary cornpanies were ¢Jomiant during the current and prewous year_ 6. DEBTORS 2021 2020 Other debtors Accrued in¢ome Prepayments Outstanding debt Isecured loan) 1.665 31.788 5.919 157.467 9.801 132.426 142.227 1￿839 The outstanding debt totalling £132,42612020- £157,467) relates to the unpaid consideration from the sak of the South London Mahajanwadi proterty in 2016_ The loan is Secu￿ and interest is payable at 10k per tnonth. 7. BANK AND CASH BALANCES 2021 2020 Cash at bank Cash in hand 4.230.g)2 3.483,310 68 4 230 902 3 483 378 CREDITORS= Amounts falling du¢ wilhin oneyear 2021 2020 Other credrf(015 Hall hiie deposits Acctua15 and deferred incorne 1.500 151.400 124,138 167.962 63.233 231.195 277 038 Induded wrthin ￿￿t deposits are hall hi￿ deposits ttstalling £2,00012020- £12,0￿) for events taking pla after more than one year from the balan￿ sheet date. Included wthin deferred income is rental income re￿Ved in 2021 totslling £5,51212020- £83,237), relating to hall hire for events which will take pla￿ in 2022. OSHWAL ASSOCIATION OF THE UNITED KING￿111 NOTES TO THE FINANCIAL STATEMENTS FOR THE Y&4R ENDED 31 DECEMBER 2021 RELATED PARTY TRANSACTIONS There were no related party transad%)n5 during the current or PriOT yeai. 10. FUNDS lal Anaty$is of fvnd$ Balancè at 31.12.2020 IAovernents in 2021 Outyoing Balance at 31.12.2021 Incoming Transfvr5 Restri¢ted Funds Derasar Maintenance lill Jivdaya- Anukampa Fund 2.123 13.665 12.1231 109.930 5.445 23.589 8.649 112.474 5,445 23.589 8,649 livl Jamnagar Medical Camp Iv) Macchu Bèraia School Ivil Derasar Extension Iviil Basnet Gaun School Nepal Iviiil Water Filter lixl Sw8tnivatsalya for Indra Ixl COVKJ Funding 42.261 142.2611 5.715 7.618 8.452 5,715 7,618 8,452 5,516 35.841 130,3251 169,398 22,226.347 22.395 745 93,890 1,282.049 1 375 939 143.5691 1.047.504 1.091.073 142,2611 42.261 177.458 22.503.153 22.880.811 Unrestricted Fund8 Totsl Funds lil Derasar Maintenan¢e". This comprises donations received for the specific purpose of costs relating lo the maintenance of the Derasar. lill Jivdaya - Anukampa Fund". This comprises donations r￿1ved for the specrfic purpose of improving the welfare of domesticated animals and the vulnerable in the community. liiil Relief Fund.. This comprises donations received for the specffic purpose of providing assistance lo the victims of natural calamities. This indudes funds collected for the Kenya appeal in relation to the lerrorist attack in Kenya. livl Jarnnagar Medical Camp: This comprises donab.ons received for the Jamnagar Medical Camp. Iv} Macchu Beraja School: This comprises donatsons re￿iVed for providing education facilities at Macchu Beraja School. Ivil Dera8ar Extension- This comprises donations received for the extension work lo the Potters Bar Deraser. Iviil Ba$net Gaun School: This comprises donations r￿1Ved as part of the Oshwal Everest Trek for rebuilding school in Nepal. Iviiil Water Filt•r'. This comprises funds received for installation of hot & cold drinking water equipment at the Oshwal Cenlre. lixl Swamivatsalya for Indla- This ￿mpriseS donations received for the Swamivalsalya Bhojan where 50% was agreed to be funded to provide food for the vulnerable in India. Ix} Covid Funding: This comprises funds received to help people suffering from Covid. Transferof Funds Restrictions placed on certain funds were SatiSf￿d during the year resulting in a transfer of £42,261 {2020 - £74,302) from restricted lo unrestricted funds. OSHWAL ASSOCIATION OF THE UNITED KING￿111 NOTES TO THE FINANCIAL STATEMENTS FOR THE Y&4R ENDED 31 DECEMBER 2021 10. lal Analys1$ of cOn￿n￿ed . 2020 Balance at Movèments in 2020 Outyoing Balance at 31.12.2019 Incoming Transfers 31.12.2020 Ro8trictsd Fund8 Derasar Maintenan Jivdaya- Anukampa Fund 10.805 26.543 110.8051 113.3301 96,717 5.445 23.589 8,649 109.930 S.445 23.589 8.649 livl Jamnagar Medical Carnp Macchu Beraja School Ivil Derasar Extension Iviil Ba5net Gaun Sthool Nepal 74.8C6 174.8061 6.723 11.0081 11,9501 150.8841 5.715 7.618 lixl Sewa Funding Ixl Swamivatsalya for India 504 8.4S2 8.452 141.123 22.607.356 22.748 479 180.554 740.002 177.9771 1.195.313 1 273.290 174,3021 74.302 189.398 22,226,347 22 395 745 Unrestrictsd Funds Totsl Fund$ 10. Ibl Anatysis of Fund8 by NetAssets- 2021 Fixed Netcurrent Funds Funds Assets 2021 2020 Restricted Fund$ Jivdaya- Anukampa Fund R&lief Fund Jamnagar Medic21 Camp Macchu Beraja School Water Filler Basnet Gaun School Nepal Covid Funding Swamivat5alya for India 112.474 5,445 23.589 8,649 7.618 5.715 5.516 8.452 177.458 3.964.476 4 141 934 112,474 5,445 23,589 8.649 7.618 5.715 5.516 8.452 177,458 22.503,153 22680611 109.930 5.445 23.589 8.649 7.618 5.715 8.452 169.398 22.226.347 22 395 745 Unrestricted Funds 18.538 677 18.538.671 10. Icl Anatysis of Funds by Net Assets- 2020 Total Funds 2020 Total Funds 2019 Fixed Notcurront Assets Re$tri¢ted Funds Jivdaya- Anukampa Fund R&lief Fund Jamnagar Medical Camp Macchu Beraja School Water Filter Basnet Gaun School Nepal Swamivat5alya for India 109.930 5,445 23.589 8,649 7.618 5.715 8.452 169.398 3.233.784 3403 182 109,930 5,445 23,589 8.649 7.618 5.715 8.452 169,398 22,226,347 22 395 745 96.717 5.445 23.589 8.649 6.723 141.123 22,607,3 22 748 479 Unrt$tri¢ted Funds 18,992.563 18 992.563 24 OSHWAL ASSOCIATION OF THE UNITED KINGDOM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 11. OPERATING LEASE COMhirrMENTS At 31 De￿mL￿r 2021 the Charity has commthents to make future lease payTr£nts under nOn-¢an￿lIab operatsng leases as fdlovts". 2021 2020 Not later than 1 year Later than 1 year and not later than S years 16.146 13.455 25.952 29.S90 29 601 The total lease payrn8llt5 rec(NJnis8d as an expen58 in the yearwere £25.3￿(202O- £16.1461. 12. NET DEBT At 1 January 2021 Cashfiows At 31 December 2021 Cash at bank 3.483.378 747.524 4.230,￿)2 13. FINANCIAL INSTRUMENTS 2021 2020 Financial assets rneasured at amorbsed cost 132.426 190.920 Financial 118b11￿eS measured 8t atnottis8d cost 231.195 277.038 Financial as5et5 rn8asur8d at arnortsed c05t a)[nP[￿ trade d8btot5. accru8d incorn8 and other debtors. Financial Iiabiltb8s tneasured at atnotbs8d cost comprise of accruals and 0th8r credrtors.