Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
**E & E KERNKRAUT CHARITIES LIMITED (LIMITED BY GUARANTEE)**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2024**
**Company Number: 01152518**
**Charity Number: 275636**
**COHEN ARNOLD** CHARTERED ACCOUNTANTS & STATUTORY AUDITOR LONDON NW11 0PU
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
**E & E KERNKRAUT CHARITIES LIMITED**
**INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
Page 1 Reference and Administrative Details 2 - 5 Trustees’ Report 6 - 9 Auditor’s Report 10 Consolidated Statement of Financial Activities 11 Consolidated Balance Sheet and Charitable Company Balance Sheet 12 Consolidated Statement of Cash Flows 13 - 22 Notes to the Financial Statements
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
**E & E KERNKRAUT CHARITIES LIMITED**
**REFERENCE AND ADMINISTRATIVE DETAILS**
**FOR THE YEAR ENDED 31 MARCH 2024**
|**Name:**|E & E Kernkraut Charities Limited|
|---|---|
|**Status**:|Incorporated: 19 December 1973|
||Company Number: 1152518|
||Registered Charity Number: 275636|
|**Principal Office:**|The Knoll|
||Fountayne Road|
||London N16 7EA|
|**Registered Office**:|New Burlington House|
||1075 Finchley Road|
||London NW11 0PU|
|**Charity Trustees**:|Mr Eli Kernkraut (Chairman)|
||Mrs Ester Kernkraut|
||Mr Jacob Kernkraut|
||Mr Joseph Kernkraut|
|**Secretary:**|Mrs Ester Kernkraut|
|**Auditor:**|Cohen Arnold|
||Chartered Accountants|
||& Statutory Auditor|
||New Burlington House|
||1075 Finchley Road|
||London NW11 0PU|
1
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The Trustees, who are also directors for the purposes of Company law, have pleasure in presenting their report together with the consolidated Financial Statements of the Charitable Company and its subsidiary for the year ended 31 March 2024 which are also prepared to meet the requirements for a Directors’ report for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Reference and Administrative details of the Company are shown on Page 1 of the Financial Statements which forms part of this report.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## _**Governing Document**_
E & E Kernkraut Charities Limited is a Company limited by guarantee governed by its Memorandum and Articles of Association. It is registered as a charity with the Charity Commission.
## _**Organisation**_
The Charitable Company is administered by the Trustees. Every Trustee holds office until he/she shall die or shall cease to hold office by virtue of the Articles of Association.
The day-to-day affairs of the Charitable Company are administered by the Trustees whose Chairman is Mr E Kernkraut.
All Trustees give their time voluntarily and no benefit or expenses were paid to them in the year.
## _**Appointment of Trustees**_
Where there is a requirement for new Trustees, these would be identified and appointed by the remaining Trustees.
## _**Trustee Induction and Training**_
The Chairman of the Trustees would be responsible for the induction of any new Trustee, which involves awareness of a Trustee’s responsibilities, the governing document, administrative procedures, the history and philosophical approach of the Charity. A new Trustee would receive copies of the previous year’s annual report and accounts with detailed explanation thereof.
## _**Group Structure and Relationships**_
The Charity has the following non-charitable operating subsidiary:
|**Company**
Chartquote Limited|**Company Registration**
**Number**
02725768|**Percentage**
**Shareholding**|
|---|---|---|
|||100%|
The subsidiary undertaking is administered by the Directors of the company.
## _**Related Parties**_
Details of transactions with Related Parties are disclosed in Note 19 to the Financial Statements.
## _**Risk Management**_
The Trustees have identified and reviewed the major risks to which the group is exposed, in particular those related to the operations and finance of the group, and are satisfied that systems are in place to manage those risks.
2
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The principal risks to which the group is exposed are:
- The availability of liquid funds to make grants and donations
- Liabilities arising from property investment activity
- Tenant defaults
- Damage to property from flood, fire or terrorist action
- The economic cycle generally
The group seeks to manage or mitigate such risks wherever possible through measures including insurance, tenant screening and monitoring, rigorous reviews of acquisition and investment opportunities, external expert advice, monitoring cash and regular monitoring of the economic outlook. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
## **OBJECTIVES AND ACTIVITIES FOR THE BENEFIT OF THE PUBLIC**
The Charitable Company is established to further those purposes recognised as charitable by English Law. In furtherance of these objects, the Charitable Company receives income from its subsidiary undertaking and voluntary income from companies connected with the Trustees which it utilises in the provision and distribution of grants and donations to organisations that fall within the objectives of the Charitable Company. It has concentrated its activities in promoting charitable activities of religious, educational and other charitable institutions.
The Trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the Charitable Company’s aims and objectives and in planning future activities.
## _**Grant Making Policy**_
The Trustees are approached for donations by a wide variety of charitable institutions. The Trustees consider all requests which they receive and make donations based on the level of funds available to charities whose purpose fall within the objects of the Charitable Company.
In making grants and donations, the Trustees use their personal knowledge of the relevant institutions, their representatives, operational efficiency and reputation. The Trustees monitor the application of the grants and donations by meeting with representatives of the institutions and obtaining information as to the utilisation of funds.
## **INVESTMENTS**
The movements in Investments are fully reflected in Note 12 to the Financial Statements.
The Group’s investment properties are included in the Financial Statements at fair value. The properties are valued by the Trustees.
The Charitable Company’s investment in the subsidiary undertaking is included in the Financial Statements at fair value, based on the value of its underlying assets less liabilities. The valuation of properties in the subsidiary undertaking has been carried out by the Trustees.
## **ACHIEVEMENTS AND PERFORMANCE**
During the year the Charitable Company has continued its philanthropic activities and has maintained its support of religious, educational and other charitable institutions. The reserves remain available to organisations engaging in activities compatible with the aims and objectives of the Charitable Company. The Trustees expect such demands to increase in future years.
The financial results of the Charitable Company and its Subsidiary Undertaking for the year ended 31 March 2024 are fully reflected in the attached Financial Statements together with the Notes thereon.
Grants and donations in the year totalled £772,110 (2023: £786,580).
3
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **FINANCIAL REVIEW**
## _**Financial Position**_
The financial position of the Charitable Company and its subsidiary is satisfactory. The Charitable Company’s Consolidated Statement of Financial Activities shows a net surplus of £311,054 (2023: £18,447 deficit) and total reserves of £7,376,831 (2023: £7,065,777).
## _**Reserves Policy**_
The Reserves Policy of the Trustees is to maintain unrestricted funds, which are the free reserves of the Charitable Company, at a level they consider appropriate to the Charitable Company’s needs taking into account likely future requirements. A proportion of the reserves is held in readily realisable form to cover on-going grant-making activities and contingencies arising from additional calls made upon the Charitable Company for the support of organisations in times of need. The Charitable Company’s reserves are represented by unrestricted funds arising from past operating results. The Trustees are satisfied that the present balance of distributable reserves is sufficient to support anticipated expenditure.
## _**Principal Funding Sources**_
The Charitable Company was principally funded in the year by donations received from its subsidiary undertaking and other related Companies.
## _**Investment Policy and Objectives**_
Under the Memorandum and Articles of Association, the Charitable Company has the power to make any investment which the Trustees see fit provided any moneys are not immediately required for use in connection with any of its objects. The Charitable Company’s investment policy is to maximise its income and gains so that its charitable objectives be maintained and expanded.
## **PLANS FOR FUTURE PERIODS**
The Trustees plan to continue making distributions in accordance with their grant-making policy and to ensure that the ability to generate sufficient income is maintained to achieve that end.
## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The Trustees (who are also the directors of E & E Kernkraut Charities Limited 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 Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company and the group and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Group for that period. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charitable Company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
4
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **STATEMENT OF DISCLOSURE TO AUDITORS**
In so far as the Trustees are aware at the time of approving the Trustees’ Report:
- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and
- the trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **AUDITORS**
The auditors, Cohen Arnold, are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.
## **SMALL COMPANY PROVISIONS**
This report has been prepared in accordance with the special provisions for Small Companies under Part 15 of the Companies Act 2006.
21/1/2025 Approved by the Trustees on ..........................., including in their capacity as Company Directors.
**On behalf of the board of Trustees,**
……………………………
## **Mrs E Kernkraut (Trustee)**
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Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF E & E KERNKRAUT CHARITIES LIMITED (** _**Continued**_ **)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **OPINION**
We have audited the financial statements of E & E Kernkraut Charities Limited (the 'parent charitable company') 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:
- give a true and fair view of the state of the group's and the parent charitable company’s affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the parent Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
6
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF E & E KERNKRAUT CHARITIES LIMITED (** _**Continued**_ **)**
## **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:
- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
7
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF E & E KERNKRAUT CHARITIES LIMITED (** _**Continued**_ **)**
## **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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the group through discussion with the management and identified which were most significant with respect to the financial statements. We identified Companies Act 2006 (including associated regulations), Charities Act 2011, Charities SORP (FRS 102), Financial Reporting Standard 102, Taxation Laws and Regulations, The Landlord and Tenant Act and Health & Safety Regulations as being most significant to these financial statements. We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.
- We discussed with the management the policies and procedures regarding compliance with the legal and regulatory framework.
- We assessed the susceptibility of the group’s financial statements to material misstatement due to noncompliance with legal and regulatory framework, including how fraud might occur, by enquiry with the management during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low.
- Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory framework, which were part of our procedures on the related financial statement items. Our procedures included reviewing the group’s internal controls policies and procedures, reviewing the minutes of board meetings and correspondence with regulatory bodies including HM Revenue & Customs, testing transactions outside the normal course of the business and journal entries, and discussions with the management.
8
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF E & E KERNKRAUT CHARITIES LIMITED (** _**Continued**_ **)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (** _**Continued**_ **)**
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **USE OF OUR REPORT**
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Joshua Neumann (Senior Statutory Auditor)
For and on behalf of
COHEN ARNOLD Chartered Accountants & Statutory Auditor New Burlington House 1075 Finchley Road London NW11 0PU
22/1/2025
Our audit was completed on………………………………….. and our opinion was expressed at that date.
9
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**Note**
**Income and endowments from:**
Donations and legacies
**2**
Investments
**3**
**Total income**
**Expenditure on:**
Investments management costs
**4**
Charitable activities
**5**
**Total expenditure**
Gains on Investments
**9**
**Net income/(expenditure) before taxation**
Taxation
**10**
**Net movement in funds**
**11**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted Funds**
**2024**
**_2023_**
**£**
**_£_**
225,500
_142,000_
824,300
_769,832_
**______________**
**________________**
**1,049,800**
**_911,832_**
**______________**
**________________**
161,354
_125,791_
790,964
_804,488_
**______________**
**________________**
**952,318**
**_930,279_**
**______________**
**________________**
**560,510**
**_--_**
**______________**
**________________**
**657,992**
**_(18,447)_**
(346,938)
_--_
**______________**
**________________**
**311,054**
**_(18,447)_**
7,065,777
_7,084,224_
**______________**
**________________**
**7,376,831**
**_7,065,777_**|
|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
10
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## _Company No: 01152518 Charity No: 275636_
## **CONSOLIDATED BALANCE SHEET AND CHARITABLE COMPANY BALANCE SHEET AS AT 31 MARCH 2024**
|**Group**
**2024**
**Note**
**£**
**Fixed assets**
Investments
**12**
8,335,327
______________
**Total fixed assets**
8,335,327
______________
**Current assets**
Debtors
**13**
889,408
Cash at bank and in hand
202,125
______________
**Total current assets**
1,091,533
**Current liabilities**
Creditors: Amounts falling due
within one year
**14**
(860,029)
______________
**Net current (liabilities)/assets**
231,504
______________
**Total assets less current liabilities**
8,566,831
Provisions for liabilities
**15**
(1,190,000)
______________
**Net assets**
**16**
7,376,831
_________
**The funds of the Charitable**
**Company:**
Unrestricted funds
**16**
7,376,831
______________
7,376,831|_Group_
_2023_
**_£_**
_7,860,528_
________________
_7,860,528_
________________
_477,863_
_212,082_
________________
_689,945_
_(622,696)_
________________
_67,249_
________________
_7,927,777_
_(862,000)_
________________
_7,065,777_
___________
_7,065,777_
________________
_7,065,777_|**Charitable**
**Company**
**2024**
**£**
7,354,632
______________
7,354,632
______________
-
41,539
______________
41,539
(19,340)
______________
22,199
______________
7,376,831
-
______________
7,376,831
_________
7,376,831
______________
7,376,831|_Charitable_
_Company_
_2023_
_£_
_7,015,952_
________________
_7,015,952_
________________
_-_
_57,625_
________________
_57,625_
_(7,800)_
________________
_49,825_
________________
_7,065,777_
_-_
________________
_7,065,777_
___________
7,065,777
______________
7,065,777|
|---|---|---|---|
|||||
The Trustees have prepared group Financial Statements in accordance with section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These Financial Statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to the members of the company.
The Financial Statements were approved by the Trustees on ……………… 2025 and signed on their behalf by:
**………………………… ………………………… MR E KERNKRAUT TRUSTEES MRS E KERNKRAUT**
The related notes form part of these Financial Statements.
11
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **CONSOLIDATED STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**Note**
**Cash flows from operating activities:**
**Net cash generated from/(used in) operating activities**
**18**
**Cash flows from investing activities:**
Interest received
Net rents and commissions received
**Net cash provided by investing activities**
**Cash flows from financing activities:**
(Decrease)/Increase in other loan creditors
**Net cash (used in)/provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2024**
**£**
(589,151)
208
638,986
______________
639,194
______________
(60,000)
______________
(60,000)
______________
(9,957)
212,082
______________
202,125|**_2023_**
**_£_**
_(636,484)_
_-_
_749,267_
________________
_749,267_
________________
_(40,000)_
________________
_(40,000)_
________________
_72,783_
_139,299_
________________
_212,082_|
|---|---|---|
12
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **Basis of Preparation**
The financial statements have been prepared in accordance 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) (effective 1 January 2015) - (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 have been prepared in accordance with the accounting principles appropriate to a going concern, as the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the group and available sources of finance.
The Charitable Company meets the definition of a public benefit entity under FRS 102.
The presentational currency is UK Pound Sterling.
## **Judgements and Key Sources of Estimation Uncertainty**
In the application of the company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The valuation of 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.
## **Income**
All donations are recognised in the Statement of Financial Activities (SOFA) of the Charitable Company when the charity has unconditional entitlement to the resources. Donations represent voluntary amounts received during the year.
All other income is recognised on a receivable basis. This includes income from investments and deposits, rentals from property assets, and grants and donations received by the Charitable Company and Group.
## **Investment Management Costs**
Investment management costs include costs relating to the investment properties on an accrual basis.
## **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 and is recognised on an accrual basis.
13
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2024**
## **1. ACCOUNTING POLICIES (** _**Continued**_ **)**
## **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.
## **Liability Recognition**
Creditors are recognised as soon as there is a present obligation committing the entity to pay out resources, it is probable that a transfer of economic benefits will be required in settlement and the amount can be measured or estimated reliably.
## **Fund Accounting**
General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Restricted funds are funds subject to specific restricted conditions imposed by donors. There are no restricted funds as at the Balance Sheet date. Designated funds are funds, which have been set-aside at the discretion of the Trustees for specific purposes. There are no designated funds as at the Balance Sheet date.
## **Group Financial Statements**
These Financial Statements consolidate the results of the Charitable Company and its subsidiary on a lineby-line basis. A separate statement of financial activities or income and expenditure account dealing with the results of the Company only has not been presented in accordance with Section 408 of the Companies Act 2006.
## **Properties Held for Investment**
Properties classified as investments are included in the Balance Sheet at fair value. Any gains or losses arising from changes in the fair value are recognised in the Statement of Financial Activities.
In accordance with the FRS 102, no depreciation or amortisation is provided in respect of freehold or longleasehold investment properties.
## **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.
## **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 transaction price, 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. Debt instruments are subsequently measured at amortised cost.
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss 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.
14
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **1. ACCOUNTING POLICIES (** _**Continued**_ **)**
## **Taxation**
The Charitable Company is not liable to direct taxation on its income as it falls within the various exemptions available to registered charities. The subsidiary undertaking is subject to Corporation Tax but it is expected that its income will be gifted for charitable purposes and should be exempt from taxation.
Notwithstanding the above, deferred tax is recognised in respect of all timing differences present in the non-charitable subsidiary undertaking. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
## **2. INCOME FROM DONATIONS AND LEGACIES**
|Unrestricted donations received
No restrictions were attached to any donations received.
**3.**
**INVESTMENT INCOME**
Rents receivable from investment properties
Interest receivable
**4.**
**INVESTMENT MANAGEMENT COSTS**
Property outgoings|**2024**
**£**
225,500
_________
**2024**
**£**
824,092
208
**______________**
824,300
_________
**2024**
**£**
161,354
**______________**
161,354|**_2023_**
**_£_**
_142,000_
___________
**_2023_**
**_£_**
_769,832_
_-_
**________________**
_769,832_
___________
**_2023_**
**_£_**
_125,791_
**________________**
_125,791_|
|---|---|---|
15
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **5. EXPENDITURE ON CHARITABLE ACTIVITIES**
|Grant funding activities (note 6)
Support and governance costs (note 7)
**6.**
**ANALYSIS OF GRANTS**
**Recipients of Institutional Grants**
Rookwood Foundation Ltd
Mosdos Hatorah Pnei Menachem Ltd
Beis Ruchel D'satmar London Ltd
Cong. Vyoel Moshe D’Satmer
Ohr Emes
Vyoel Moshe Charitable Trust
Talmud Torah Education Ltd
A T.I.M.E. Ltd
Friends of Yeshiva Luzern
UTA
Heichalei Hakodesh
Mesifta Talmudical College
Ezer Viznitz Foundation
Bnos Zion D’bobov Ltd
ZAI Synagogue
Chevras Machzikei Mesivta
Wlodowa Charity & Rehabilitation Trust
Beis Ruchel School Ltd
Friends of Wiznitz
Grovepalm Ltd
Machzikei Lomdei Torah
Satmar Kolel
The Egerton Road Trust
Yad Vochessed
Bnois Jerusalem Schools
KYL Central Shul Trust
Live And Learn
Yetev Lev London Jerusalem Trust
Yeshiva Gedola Seminary
Fundd
Other grants (£5,000 or less)
Total grants|**2024**
**£**
772,110
18,854
**______________**
790,964
_________|**_2023_**
**_£_**
_786,580_
_17,908_
**________________**
_804,488_
___________
**£**
86,000
70,000
68,500
66,000
48,500
40,000
35,000
23,000
23,000
23,000
20,000
20,000
16,000
15,000
15,000
12,000
12,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
8,000
7,500
7,500
6,500
6,250
6,000
67,360
-------------------------------------
772,110
====================================|
|---|---|---|
All grants were paid to charitable institutions whose objects are in line with the objects of the charity which include the relief of poverty, the advancement of education and the furtherance of religion. All grants were paid from unrestricted funds.
16
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **7. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS**
|Auditor’s remuneration
Accountancy fees
General expenses
Bank charges|**2024**
**£**
8,880
8,940
546
488
**______________**
18,854|**_2023_**
**_£_**
_8,028_
_9,096_
_414_
_370_
**________________**
_17,908_|
|---|---|---|
## **8. STAFF COSTS AND EMOLUMENTS**
No salaries or wages have been paid to any employee or Trustee by the Charitable Company or any subsidiary undertaking. No Trustee expenses have been incurred.
## **9. GAINS ON INVESTMENTS**
|Gains on disposal
(Deficits)/Gains on revaluation of investments|**2024**
**£**
85,635
474,875
**______________**
560,510|**_________**|**_2023_**
**_£_**
-
_-_
**_________**
_-_|
|---|---|---|---|
## **10. TAXATION**
No current tax was payable in respect of the Charitable Company. Current tax payable in respect of the non-charitable subsidiary undertakings was £18,938 (2023: £Nil).The movement in the income and expenditure account includes a provision for deferred tax (see Note 15).
## **11. NET MOVEMENT IN FUNDS**
Of the Net Movements of Funds of the Group £311,054 surplus (2023: £18,447 deficit) has been dealt within the Statement of Financial Activities of the Charitable Company itself.
17
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **12. INVESTMENTS**
|**Group**
**Investment**
**Properties**
**at fair value**
**£**
At 1 April 2023
7,860,225
Revaluation
474,875
**______________**
At 31 March 2024
8,335,100
_______ __
Depreciation
At 1 April 2023
-
Charge in year
-
**______________**
At 31 March 2024
-
_______ __
Net book value at 31 March 2023
7,860,225
_________
Net book value at 31 March 2024
8,335,100|**Fixtures and**
**Fittings**
**at cost**
**£**
6,714
-
**______________**
6,714
_______ __
6,411
76
**______________**
6,487
_______ __
303
_________
227|**Fixtures and**
**Fittings**
**at cost**
**£**
6,714
-
**______________**
6,714
_______ __
6,411
76
**______________**
6,487
_______ __
303
_________
227|**Total**
**£**
**7,866,939**
**474,875**
**______________**
**8,341,814**
|**Total**|
|---|---|---|---|---|
|||**__**
|||
|||__
**__**
|**_______ __**
**6,411**
**76**
**______________**
**6,487**
||
|||__|**_______ __**
**7,860,528**||
|||_|_________
**8,335,327**||
The historical cost of investment properties at 31 March 2024 is £2,211,922 (2023: £2,211,922).
|**Charitable Company**
Fair Value at 1 April 2023
Revaluations
Fair Value at 31 March 2024
Historical Cost at 31 March 2024|**Investments in**|**Investments in**|**Investments in**|**Investments in**|
|---|---|---|---|---|
|||**Subsidiary**
**Undertakings**|**Subsidiary**||
|||||**£**
7,015,952
338,680
**______________**
7,354,632|
|||||_________
2|
- a. The assets classified as investments are stated at Trustees' valuation at 31 March 2024.
- b. The group's investment properties are valued by the Trustees based on their understanding of property market conditions using a sales valuation approach, derived from recent comparable transactions and market yields, adjusted by applying discounts to reflect status of occupation and condition.
- c. The fair value at 31 March 2024 of the investments in subsidiary undertakings is based on the underlying value of assets less liabilities of the subsidiary undertaking. The valuation of properties in the subsidiary undertaking has been made by the Trustees of the Charitable Company.
18
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
The subsidiary undertaking of the Charitable Company, which is incorporated in Great Britain and registered in England and included in the consolidated financial statements, is as follows: -
|**Company**|**Company Registration Number**
**Percentage Shareholding**|**Company Registration Number**
**Percentage Shareholding**|
|---|---|---|
|Chartquote Limited||02725768
100%|
|A summary of the turnover, expenditure and net gain for the reporting period of the subsidiary undertaking|||
|is as follows:|||
|||**2024**|
|||**£**|
|Turnover||824,092|
|Expenditure||(170,984)|
|Revaluation of investments||474,875|
|Disposal and deferred tax adjustments||(261,303)|
|||**______________**|
|**Net profit**||**866,680**|
||||
|||_________|
|Charitable distributions to parent|charity|(528,000)|
|||**______________**|
|**Retained profit for the year**||**338,680**
_________|
A summary of the turnover, expenditure and net gain for the reporting period of the subsidiary undertaking is as follows:
The assets, liabilities and funds of the subsidiary undertaking at the end of the reporting period was as follows:
||follows:||
|---|---|---|
|||**2024**|
|||**£**|
||Assets|9,385,321|
||Liabilities|(2,030,689)|
|||**______________**|
||**Capital and reserves**|**7,354,632**|
||||
|||_________|
|**13.**|**DEBTORS**||
|Rent and service charges
Other debtors and prepayments|**Group**
**2024**
**£**
365,375
524,033
**______________**
889,408|**Group**|**_2023_**
**£**
_73,963_
_403,900_
**________________**
_477,863_|**____**|**Charitable**|**Charitable**|**Company**|**Company**|
|---|---|---|---|---|---|---|---|---|
||||||
**___**|
**2024**
**£**
-
-
**_______**
-|
**_________**|
**_2023_**|
|||||||||**£**
_-_
_-_
**_________**
_-_|
19
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Rent and service charges charged in advance
Other creditors and accruals
**PROVISIONS FOR LIABILITIES**
Balance at beginning of the year
Movement in the year
Balance at end of the year|**Group**
**2024**
**£**
437,252
422,777
**______________**
860,029
_________|**Group**|**Charitable**
**_2023_**
**2024**
**_£_**
**£**
_145,754_
_-_
_476,942_
19,340
**________________**
**______________**
_622,696_
19,340
___________
_________
**2024**
**£**
862,000
328,000
**______________**
1,190,000|**____**|**Charitable**|**Company**|**Company**|**Company**|
|---|---|---|---|---|---|---|---|---|
|||||||
**____**|
**_2023_**
**_£_**
_-_
_7,800_
**______________**
_7,800_|
**_2023_**|
|||||||___
**____**|__________
**_2023_**
**_£_**
_862,000_
_-_
**______________**
_862,000_||
## **15. PROVISIONS FOR LIABILITIES**
Deferred tax is recognised in respect of timing differences arising from the revaluation of assets classified as investments in the non-charitable subsidiary undertaking. Although the provision has been recognised in accordance with FRS 102, it is expected that the majority of the gains will be gifted for charitable purposes and such tax should not become payable.
Deferred tax has not been recognised in respect of revaluation of investments by the parent Charitable Company on the basis that all such gains will be applied for charitable purposes.
20
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**16.**
**17.**|**UNRESTRICTED FUNDS**
**Group**
Balance at 1 April 2023
Net surplus for the year
**Balance at 31 March 2024**
**Charitable Company**
Balance at 1 April 2023
Net surplus/(deficit) for the year
Surplus on revaluation of investments
**Balance at 31 March 2024**
**FINANCIAL INSTRUMENTS**
**_Financial assets measured at fair value_**
**_through income and expenditure:_**
Unlisted investments (Note 12)
**_Financial assets measured at amortised cost:_**
Debtors (Note 13)
**_Financial liabilities measured at amortised_**
**_cost:_**
Creditors (Notes 14)|**Group**
**2024**
**£**
-
889,408
860,029|**Group**|**_2023_**
**£**
_-_
_477,863_
_622,696_|**£**
7,065,777
311,054
______________
7,376,831
_________
**£**
7,065,777
(27,626)
338,680
______________
7,376,831
_________
**Charitable Company**
**2024**
**_2023_**
**£**
**£**
7,354,632
_7,015,952_
-
_-_
19,340
_7,800_|**£**
7,065,777
311,054
______________
7,376,831
_________
**£**
7,065,777
(27,626)
338,680
______________
7,376,831
_________
**Charitable Company**|**£**
7,065,777
311,054
______________
7,376,831
_________
**£**
7,065,777
(27,626)
338,680
______________
7,376,831
_________
**Charitable Company**|**£**
7,065,777
311,054
______________
7,376,831
_________
**£**
7,065,777
(27,626)
338,680
______________
7,376,831
_________
**Charitable Company**|
|---|---|---|---|---|---|---|---|---|
||||||||
**_2023_**
**£**
_7,015,952_
_-_
_7,800_|
**_2023_**|
21
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2024**
## **18. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS**
**Reconciliation of net income to net cash flow from operating activities**
|**Net Income / (expenditure) for the year**
**Adjustments for:**
Depreciation
Interest receivable
Net rents and commissions receivable
(Gains)/Losses on Investments
Increase/(Decrease) in provision of liabilities
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
**Net cash generated from/(used in) operating activities**|**2024**
**£**
**311,054**
76
(208)
(662,738)
(474,875)
328,000
(91,000)
540
**______________**
**(589,151)**|**_2023_**
**_£_**
**_(18,447)_**
_101_
_-_
_(644,041)_
_-_
_-_
_25,425_
_478_
**________________**
**_(636,484)_**|
|---|---|---|
## **19. RELATED PARTY TRANSACTIONS**
Donations totalling £225,500 (2023: £142,000) were received from companies connected with the Trustees. Donations totalling £528,000 (2023: £710,000) were received by the parent Charitable Company from the subsidiary undertaking. No conditions were attached to any of the donations.
Other debtors and prepayments (note 13) includes amounts aggregating £263,175 (2023: £172,175) due to the subsidiary undertaking from Companies of which the Director of the subsidiary undertaking is also a Director. The loans are interest-free and repayable on demand.
Other creditors include amounts aggregating £215,000 (£2023: £286,000) due to companies and individuals connected with the Director, of which £11,00 (2023: £Nil) is related to the Charitable Company. The loans are interest-free and repayable on demand.
## **20. GENERAL INFORMATION**
The Charitable Company is incorporated in England and is limited by guarantee. The address of its principal place of business is shown at page 1.
22
Docusign Envelope ID: 2794D9B8-9348-4CE6-91B1-FB26A3A06248
## **E & E KERNKRAUT CHARITIES LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 MARCH 2024**
|**Income and endowments from:**
Donations and legacies
Investments
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
**Surpluses on revaluation of investments**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted Funds**|**Unrestricted Funds**|
|---|---|---|
|||**2024**
**£**
735,500
208
**______________**
**753,708**
**______________**
781,334
**______________**
**781,334**
**______________**
**338,680**
**______________**
**311,054**
7,065,777
**______________**
**7,376,831**
|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
23