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2021-06-30-accounts

COMPANY REGISTRATION NUMBER: 01498368 CHARITY REGISTRATION NUMBER: 281297

TAGMARSH CHARITY LIMITED

COMPANY LIMITED BY GUARANTEE CONSOLIDATED FINANCIAL STATEMENTS

30 JUNE 2021

COHEN ARNOLD

Chartered accountant & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

Tagmarsh Charity Limited

Company Limited by Guarantee

Index to the Financial Statements

Year ended 30 June 2021

Page
Trustees' annual report (incorporating the director's report) 1
Independent auditor's report to the members 5
Consolidated statement of financial activities (including the
consolidated income and expenditure account) 10
Consolidated balance sheet 11
Company balance sheet 12
Consolidated statement of cash flow 13
Notes to the financial statements 14

Tagmarsh Charity Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 30 June 2021

The trustees, who are also the directors for the purposes of company law, have pleasure in presenting their report, including a strategic report, together with consolidated financial statements of the charity and its subsidiary for the year ended 30 June 2021 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) (effective I January 2015).

Reference and administrative details

Registered charity name Tagmarsh Charity Limited (the “charity”)
Charity registration number 281297
Company registration number 01498368
Principal office and registered New Burlington House
office 1075 Finchley Road
London
NW11 0PU
The trustees B Bard
R Berkovits
S Sinitsky
S E Berkovits
A Warmberg
Company secretary S E Berkovits
Auditor Cohen Arnold
Chartered accountant & statutory auditor
New Burlington House
1075 Finchley Road
London
NW11 0PU
Bankers Barclays Bank Plc
99 Hatton Garden
London
EC1 8DN
Solicitors Kuit Steinart Levy
3 St Mary's Parsonage
Manchester
M3 2RD

- 1 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 June 2021

Structure, governance and management

Governing documents

The charity is constituted as a company limited by guarantee and as such, its governing documents are its Memorandum and Articles of Association.

Its registered charity number is 281297 and its company registration number is 01498368.

Appointment, training, and recruitment of trustees

The trustees (as directors for company law purposes) may at any time co-opt any individual who is qualified to be appointed as a trustee to fill a vacancy in their number or as an additional trustee.

New trustees are subject to trustee induction training which includes an understanding of the content of the Memorandum and Articles of Association, their legal obligations under Charity Act and Company Law, the organisational structure of Tagmarsh Charity Limited and the recent financial performance of the charity. Trustees are encouraged to attend appropriate external training events which enhance their knowledge and skill thereby improving the performance of their role.

Group structure and relationships

The charity has the following wholly owned non-charitable subsidiaries:

Certain of the trustees of the charity are directors of these subsidiaries.

Management of the group

The trustees administer the day-to-day affairs of the charity. Trustees seek advice from their Accountants and other professionals on a regular basis to ensure regulatory compliance.

Related parties and co-operations with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee of the charity with a supplier company must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. None of the trustees have any beneficial interest in the charity. All related party transactions have been disclosed in the consolidated financial statements.

Objectives and activities

The charity is established to advance religion in accordance with the Orthodox Jewish Faith and for such purposes as are recognised by English Law as charitable and in furtherance of the aforementioned objects.

The charity's principle activity throughout the year was the provision and distribution of donations and grants to other charitable institutions and organisations. The charity aims to maximise its grants and donations on an annual basis.

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 charity’s aims and objectives and in planning future activities and setting the grant making policy for the year.

Grant making policy

Grants are made to charitable institutions, organisations and authorised individuals which accord with the objects of the charity.

Strategic report

The following sections describing the achievements and performance and separately, the financial review form the strategic report of the charity.

Achievements and performance

During the year the charity continued its philanthropic activities in support of religious, education and other charitable institutions and aggregate donations were paid in the sum of £2,025,271 (2020: £2,232,934).

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Tagmarsh Charity Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 June 2021

Achievements and performance (continued)

The benefits that these charities provide include:

The charity measures it success by the amount of grants and donations distributed to charitable institutions in accordance with its objectives.

The charity and its subsidiary undertaking's direct investments in UK property realised a gross income of £3,506,682 (2020: £1,161,415). The charity and its subsidiary undertaking's indirect investments via joint ventures in UK property realised a gross income of £1,270,999 (2020: £1,836,096).

Financial review

The charity continued its activities in support of charitable organisations and during the year the charity donated over £2 million.

The charity’s wholly owned trading subsidiary, Grademoon Limited continued to trade well, and concentrated its efforts on a number of new property developments which achieved strong profits in the year. Gradestar Limited and Gradelight Limited did not achieve any sales during the year.

Risk management

The trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for the group. A key element in the management of financial risk is a regular review of available liquid funds to satisfy grant requests and settle debt as they fall due to ensure sufficient working capital by the charity and its subsidiary company.

The key operations risks to the group include liabilities arising from property trading and investment activities, default of tenants and damage to investments. The group seek to manage or mitigate such risks wherever possible through measurers including insurance, tenant screening and monitoring, rigorous reviews of acquisition and investment opportunities, external expert advice and regular monitoring of the economic outlook. The trustees are satisfied that these systems and procedures mitigate any perceived risks.

Reserves policy

At the year-end £26,122,961 (2020: £25,211,867) was held as unrestricted funds in the group. Included within this are fixed assets of £21,711,798 (2020: £21,072,195) and free reserves of £127,717 (2020: £894,066).

It is the policy of the charity to maintain unrestricted funds, which are the free reserve of the charity, at a level, which the trustees think appropriate after considering the future commitments of the charity and the likely administrative costs of the charity for the next year.

Plans for future periods

The trustees, whilst being of the opinion that sufficient funds are required to be retained within the group in order to maintain and finance its investment portfolio, and thereby its financial return, however, the trustees are actively considering a policy of substantially increasing the rate and quantum of donations made by the charity in those charitable areas which would justify such an approach.

- 3 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 30 June 2021

Investment Powers, Policy and Objectives

Under the Memorandum and Articles of Association, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy. The trustees believe their experience within the UK investment property market will maximise the charity's income from its investments.

Key Performance Indicators

The trustees monitor the group's performance against the strategic objectives on a regular basis. Performance is assessed against the strategy and expectations using financial and non-financial indicators. The key financial performance indicators used by the group are as follows:

mance indicators used by the group are as follows:
2021 2020
£ £
Grants and donations received 405,000 170,000
Grants and donations paid 2,025,271 2,232,934

During the year, the charity donated funds to 100 (2020: 107) different charitable institutions.

Trustees' responsibilities statement

The charity trustees (who are also directors of Tagmarsh Charity 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditors

Each of the persons who is a trustee at the date of approval of this report confirms that:

Auditor

Cohen Arnold is deemed to have been re-appointed under section 487 of the Companies Act 2006.

The trustees' annual report and the strategic report were approved on 8 March 2022 and signed on behalf of the board of trustees by:

S E Berkovits Trustee

- 4 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Tagmarsh Charity Limited

Year ended 30 June 2021

OPINION

We have audited the financial statements of Tagmarsh Charity Limited (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 30 June 2021 which comprise the consolidated statement of financial activities (including consolidated income and expenditure account), consolidated balance sheet, the company balance sheet, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- 5 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Tagmarsh Charity Limited (continued)

Year ended 30 June 2021

OTHER INFORMATION

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual 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:

- 6 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Tagmarsh Charity Limited

(continued)

Year ended 30 June 2021

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charity'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 charity 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:

- 7 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Tagmarsh Charity Limited

(continued)

Year ended 30 June 2021

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- 8 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Independent Auditor's Report to the Members of Tagmarsh Charity Limited

(continued)

Year ended 30 June 2021

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Cohen Arnold is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

USE OF OUR REPORT

This report is made solely to the charity'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 charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel B Myers FCA (Senior Statutory Auditor)

New Burlington House 1075 Finchley Road LONDON NW11 0PU

For and on behalf of Cohen Arnold Chartered accountant & statutory auditor

Our audit was completed on 8 March 2022 and our opinion was expressed at that date.

- 9 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Consolidated Statement of Financial Activities (including the consolidated income and expenditure account)

Year ended 30 June 2021

Unrestricted
funds Total funds Total funds
2021 2021 2020
Note £ £ £
Income and endowments
Donations and legacies 5 405,000 405,000 170,000
Investment income 6 1,113,530 1,113,530 1,394,816
Other trading activities 7 3,224,500 3,224,500 917,566
Other income 8 46,500 46,500 36,017
───────────── ───────────── ─────────────
Total income 4,789,530 4,789,530 2,518,399
═════════════ ═════════════ ═════════════
Expenditure
Expenditure on raising funds:
Investment management costs 9 (127,942) (127,942) (108,844)
Expenditure on charitable activities 10,11 (2,222,671) (2,222,671) (2,433,109)
Other trading costs 15 (2,483,050) (2,483,050) (863,211)
───────────── ───────────── ─────────────
Total expenditure (4,833,663) (4,833,663) (3,405,164)
═════════════ ═════════════ ═════════════
Net gains/(losses) on investments 955,227 955,227 (3,797,702)
───────────── ───────────── ─────────────
Net income/(expenditure) before tax 911,094 911,094 (4,684,467)
Taxation 18 – – –
───────────── ───────────── ─────────────
Net income/(expenditure) for the year and net movement in
funds 911,094 911,094 (4,684,467)
═════════════ ═════════════ ═════════════
Reconciliation of funds
Total funds brought forward 25,211,867 25,211,867 29,896,334
─────────────── ─────────────── ───────────────
Total funds carried forward 26,122,961 26,122,961 25,211,867
═══════════════ ═══════════════ ═══════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities and unrestricted funds.

The notes on pages 14 to 27 form part of these financial statements.

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Tagmarsh Charity Limited

Company Limited by Guarantee

Consolidated Balance Sheet

30 June 2021

2021 2020
Note £ £ £ £
Fixed assets
Tangible assets 21 8,887 2,625
Investments 22 21,702,911 21,069,570
──────────── ────────────
21,711,798 21,072,195
Current assets
Stocks 23 2,991,683 2,475,797
Debtors 24 3,508,208 3,068,537
Cash at bank and in hand 127,717 894,066
───────────── ─────────────
6,627,608 6,438,400
Creditors: amounts falling due within
one year 25 (170,989) (182,432)
────────── ──────────
Net current assets 6,456,619 6,255,968
──────────── ────────────
Total assets less current liabilities 28,168,417 27,328,163
Creditors: amount falling due after
more than one year 26 (2,045,456) (2,116,296)
───────────── ──────────────
Net assets 26,122,961 25,211,867
═════════════ ══════════════
Funds of the charity
Unrestricted funds 26,122,961 25,211,867
────────────── ──────────────
Total charity funds 28 26,122,961 25,211,867
══════════════ ══════════════

These financial statements were approved by the board of trustees and authorised for issue on 8 March 2022, and are signed on behalf of the board by:

Mr R Berkovits Trustee

Mr S E Berkovits Trustee

Company registration number: 01498368

The notes on pages 14 to 27 form part of these financial statements.

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Tagmarsh Charity Limited

Company Limited by Guarantee

Company Balance Sheet

30 June 2021

2021 2020
Note £ £ £ £
Fixed assets
Investments 22 23,983,463 22,647,585
Current assets
Debtors 24 4,071,821 3,772,186
Cash at bank and in hand 127,617 870,403
───────────── ─────────────
4,199,438 4,642,589
Creditors: amounts falling due within
one year 25 (140,004) (87,531)
────────── ──────────
Net current assets 4,059,434 4,555,058
──────────── ────────────
Total assets less current liabilities 28,042,897 27,202,643
Creditors: amount falling due after
more than one year 26 (1,919,936) (1,990,776)
───────────── ──────────────
Net assets 26,122,961 25,211,867
═════════════ ══════════════
Funds of the charity
Unrestricted funds 26,122,961 25,211,867
────────────── ──────────────
Total charity funds 28 26,122,961
══════════════		 25,211,867
══════════════

These financial statements were approved by the board of trustees and authorised for issue on 8 March 2022, and are signed on behalf of the board by:

Mr R Berkovits Trustee

Mr S E Berkovits Trustee

Company registration number: 01498368

The notes on pages 14 to 27 form part of these financial statements.

- 12 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Consolidated Statement of Cash Flows

Year ended 30 June 2021

Year ended 30 June 2021
Unrestricted Unrestricted
Funds Funds
2021 2020
£ £
Cash flows from operating activities
Net income/(expenditure) 911,094 (4,684,467)
Adjustments for:
Depreciation charges 2,963 875
Government grants (46,500) (11,017)
Net (gains)/losses on investments (1,613,748) 2,790,314
Dividends, interest and rents from investments (420,433) (359,517)
Interest payable and similar charges 34,712 687
Gains on disposal of tangible fixed assets (4,375) –
Accrued expenses 13,600 14,960
Changes in:
Stocks (515,886) 71,116
Trade and other debtors (410,796) (61,313)
Trade and other creditors (33,043) 64,763
───────────── ─────────────
Cash generated from operations (2,082,412) (2,173,599)
Interest paid (34,712) (687)
Interest received 143,576 213,646
───────────── ─────────────
Net cash used in operating activities (1,973,548) (1,960,640)
═════════════ ═════════════
Cash flows from investing activities
Dividends, interest and rents from investments 251,982 215,938
Proceeds of sale of investments 3,254,257 1,182,031
Purchase of investments (2,278,700) (591,350)
───────────── ─────────────
Net cash provided by investing activities 1,227,539 806,619
═════════════ ═════════════
Cash flows from financing activities
Cash inflows from new borrowings 1,600,000 708,192
Repayments of borrowings (1,666,840) (37,425)
Government grants 46,500 11,017
────────── ───────────
Net cash (used)/provided in financing activities (20,340) 681,784
══════════ ═══════════
Net decrease in cash and cash equivalents (766,349) (472,237)
Cash and cash equivalents at beginning of year 894,066 1,366,303
──────────── ─────────────
Cash and cash equivalents at end of year 127,717 894,066
════════════ ═════════════

The notes on pages 14 to 27 form part of these financial statements.

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Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 30 June 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Charities Act 2011 and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, rounded to the nearest whole pound which is the functional currency of the entity.

G roup financial statements

The financial statements consolidate the audited results of the charity and its wholly owned subsidiaries, Grademoon Limited, Gradestar Limited and Gradelight Limited on a line-by-line basis. The financial statements of the subsidiary are made up to the same date as the holding charity, 30 June 2021. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The charity has adopted the following disclosure exemption permitted by FRS 102 1.12 (b): The requirement to present a statement of cash flows.

Going concern

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 to meet its liabilities as and when they fall due for the foreseeable future, based on the net current asset position of the group and available sources of finance.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are listed in note 31.

- 14 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

3. Accounting policies (continued)

Fund accounting – unrestricted funds

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.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured.

The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any Value Added Tax which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts artistic programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 14.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Motor vehicle

Deferred tax

Deferred tax has not been recognised in respect of revaluation of investments by the parent charity on the basis that all such gains will be applied for charitable purposes.

- 15 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

3. Accounting policies (continued)

Investment in subsidiary undertaking

Shareholdings acquired are initially recorded at cost and subsequently included at trustees’ best estimate of fair value based on the net asset value. The net assets of the subsidiary undertaking reflect fair values of its underlying properties held for investment; any surplus or deficit on revaluation is recognised in the statement of financial activities.

Investment property

Investment properties are initially recognised at cost, being the fair value of consideration given, including transaction costs associated with the investment property.

After initial recognition, investment properties whose fair value can be measured reliably are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the statement of financial activities in the year that they arise.

No depreciation is provided in respect of investment properties applying the fair value model.

Investment in unincorporated joint venture syndicates

The charity has investment in a number of unincorporated property joint venture syndicates. The investments are shown at cost. Income arising from such investments are shown in the statement of financial activities. All joint venture syndicates have made up their accounts to 31 March 2021 and the results are included on this basis.

Acquisitions and disposals of properties

Acquisitions and disposals are considered to have taken place at the date of legal completion and are included in the financial statements accordingly.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of construction and other costs incurred in the course of the development of the stocks.

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 accounts.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

4. Legal status of the charity

The charity is limited by guarantee and does not have a share capital. The liability of each member in the event of winding up is limited to £1. The articles of association of the charity preclude the distribution of assets to the members of the charity and accordingly a reconciliation of shareholders' funds is inappropriate.

- 16 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

5. Donations and legacies
Total Funds Total Funds
2021 2020
£ £
Donations 405,000 170,000
═════════ ═════════════
No restrictions were attached to any donations received.
6. Investment income
Total Funds Total Funds
2021 2020
£ £
Income from UK investment properties 282,182 243,849
Net income from joint ventures 662,896 1,007,388
Other interest receivable 168,452 143,579
---------------------------------------------- ----------------------------------------------
1,113,530 1,394,816
============================================== ==============================================
7. Other trading activities
Total Funds Total Funds
2021 2020
£ £
Sale proceeds from UK properties 3,224,500 917,566
============================================== ==============================================
8. Other income
Total Funds Total Funds
2021 2020
£ £
Covid-19 Government Support 46,500 36,017
============================== ====================================
9. Investment management costs
Total Funds Total Funds
2021 2020
£ £
Investment property expenses 127,942 108,844
============================== ====================================
10. Expenditure on charitable activities by fund type
Total Funds Total Funds
2021 2020
£ £
Grants and donations 2,025,271 2,232,934
Support costs 197,400 200,175
───────────── ─────────────
2,222,671 2,433,109
═════════════ ═════════════

- 17 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

11. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2021 2020
£ £ £ £
Grants and donations 2,025,271 113,007 2,138,278 2,369,508
Governance costs – 84,393 84,393 63,601
───────────── ───────── ───────────── ─────────────
2,025,271 197,400 2,222,671 2,433,109
═════════════ ═════════ ═════════════ ═════════════

12. Analysis of grants to institutions

Analysis of grants to institutions
2021
£
Advancement of Health and Saving of Lives 151,209
Advancement of Education 740,250
Relief of Poverty 376,547
Advancement of the Jewish Religion 584,326
Relief of those in need, by reason of youth, age, ill-health,
disability, financial hardship or other disadvantage 22,457
Grants to other Grant Making Charity 150,482
------------------------------------
Total grants 2,025,271
================================================

13. Analysis of institutional grants

Analysis of institutional grants
2021
£
Care All Limited 30,500
Chasdei Aharon Limited 61,000
Chasdei Sholom 35,000
CMZ Ltd 49,000
Friends Of Beis Chinuch Lebonos Trust 51,000
Friends Of Beis Soroh Schneirer 63,000
Friends Of Mercaz Hatorah Belz Macnivka 152,350
Friends of Wiznitz Limited 220,500
Grants to other institutions (< £30,000) 395,605
Keren Hatzolas Doros Alei Siach 50,000
Mifal Hachesed Vehatzedokoh 123,500
One Heart - Lev Echod 100,000
Rise and Shine 48,500
Tchabe Kollel Limited 134,180
The Wineburg Foundation 434,886
Vishnitz Girls School Limited 37,500
Yesodey Hatorah Schools 38,750
-------------------------------------
Total grants 2,025,271
=====================================

- 18 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

14. Analysis of support costs

14. Analysis of support costs
Total Funds Total Funds
2021 2020
£ £
General office 113,007 135,727
Governance costs 83,646 63,601
Finance costs 747 847
---------------------------- ----------------------------
197,400 200,175
=========================== ===========================
15. Other trading costs
Total Funds Total Funds
2021 2020
£ £
Property trading cost of sales 2,483,050 863,211
============================================== ==============================================
The property trading activities were carried out by the subsidiary undertaking.
16. Staff costs and emoluments
The aggregate payroll costs for the group were:
2021 2020
£ £
Wages and salaries 82,547 60,000
═══════ ═══════

The average number of persons employed by the group during the year amounted to 4 (2020: 2). The Trustees are considered the key management personnel.

17. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

18. Taxation

Taxation
2021 2020
£ £
Current tax
Current year – –
=================== =====================
Taxation – –
=================== =====================

All tax is recognised in the consolidated income and expenditure account.

- 19 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

18. Taxation (continued)

Reconciliation of tax expense

The tax assessed on the net income for the year is higher/(2020: lower) than the standard rate of corporation tax in the UK of 19% (2020: 19%).

tax in the UK of 19% (2020: 19%).
2021 2020
£ £
Net income/(expenditure) before tax 911,094 (4,684,467)
═══════════ ═══════════
Net income/(expenditure) by rate of tax 173,108 (890,049)
(Income)/expenditure exempt from tax (39,626) 877,946
Utilisation of losses (28,507) 12,103
Timing difference on depreciation and capital allowances (2,520) –
Timing difference on gift aid (102,455) –
---------------------------- ----------------------------
Taxation – –
=========================== ===========================

No provision for taxation has been made in respect of current year taxable profits of the group as no liability is expected to arise in view of gift aid payments made to the charitable parent undertaking.

19. Net movement in funds

This is stated after charging/(crediting):
2021 2020
£ £
Fees payable for the audit of the financial statements 18,000 18,000
═══════ ═══════

20. The results attributable to the parent charity

During the year, the gross income attributable to the parent charity was £1,495,311 (2020: £1,601,197) and the net movement in funds was £911,094 (2020: £(4,684,467)).

- 20 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

21. Tangible assets

Group

Group
Motor vehicles Total
£ £
Cost
At 1 July 2020 3,500 3,500
Additions 11,850 11,850
Disposal (3,500) (3,500)
─────── ───────
At 30 June 2021 11,850 11,850
═══════ ═══════
Depreciation
At 1 July 2020 875 875
Charge for the year 2,963 2,963
Disposal (875) (875)
─────── ───────
At 30 June 2021 2,963 2,963
═══════ ═══════
Carrying amount
At 30 June 2021 8,887 8,887
═══════ ═══════
At 30 June 2020 2,625 2,625
═══════ ═══════
22. Investments
Group - Freehold property
2021 2020
£ £
Market value at 1 July 11,635,000 9,985,000
Additions 571,165 198,070
Disposals (2,183,253) (325,000)
Revaluation 1,129,329 1,776,930
---------------------------------------------- ----------------------------------------------
Market value at 30 June 11,152,241 11,635,000
=================== ===================
Historical cost at 30 June 7,983,602 9,307,580
===================== =====================
Group - Joint venture syndicates
2021 2020
£ £
Cost at 1 July 9,434,570 14,469,065
Capital introduced 1,695,685 389,780
Surplus for the year 662,912 1,007,388
Withdrawals (970,430) (858,483)
Losses on disposals (272,067) (5,573,180)
---------------------------------------------- ----------------------------------------------
Cost at 30 June 10,550,670 9,434,570
===================== =====================
Group- Analysis of investments at 30 June between funds
2021 2020
£ £
Other
UK investment property 11,152,241 11,635,000
Other UK unlisted investments 10,550,670 9,434,570
-------------------------–----------------------- -------------------------–-----------------------
21,702,911 21,069,570
===================== =====================

- 21 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

22. Investments (continued)

The group has investments in a number of property joint venture syndicates as follows:

Group Company Group Company
2021 2021 2020 2020
No. No. No. No.
Percentage holdings
Less than 20% 2 2 2 2
20% - 50% 11 11 12 12
More than 50% – – 1 1
-------------------------- -------------------------- -------------------------- --------------------------
13 13 15 15
=========== =========== =========== ===========

The aggregate balance sheets of the unincorporated property joint venture syndicates are as follows:

Group

2021 2020
£ £
Investment properties at cost 110,454,538 122,178,999
Net current assets 9,979,205 2,199,919
Bank loans: amounts falling due after more than one year (79,696,958) (85,421,819)
------------------------––------------------- ------------------------––-------------------
Net assets 40,736,785 38,957,099
==================== ====================
Group’s share of net assets 10,550,670 9,434,570
===================== =====================
Company - Freehold property
2021 2020
£ £
Market value at 1 July 11,635,000 9,985,000
Additions 571,165 198,070
Disposals (2,183,253) (325,000)
Revaluation 1,129,329 1,776,930
---------------------------------------------- ---------------------–-------------------------
Market value at 30 June 11,152,241 11,635,000
==================== ====================
Historical cost at 30 June 7,983,602 9,307,580
==================== ====================
Company - Joint venture syndicates
2021 2020
£ £
Cost at 1 July 9,434,570 14,469,065
Capital introduced 1,695,685 389,780
Surplus for the year 662,912 1,007,388
Withdrawals (970,430) (858,483)
Losses on disposals (272,067) (5,573,180)
---------------------------------------------- ----------------------------------------------
Cost at 30 June 10,550,670 9,434,570
===================== =====================

- 22 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

22. Investments (continued)

Company - Analysis of investments at 30 June between funds

2021 2020
£ £
Other
UK Investment property 11,152,241 11,635,000
Other UK unlisted investments 10,550,670 9,434,570
UK Group Undertaking 2,280,552 1,578,015
----------------------------––––------------- ----------------------------––––-------------
23,983,463 22,647,585
===================== =====================

No depreciation has been provided in respect of investment properties, applying the fair value model. The group carries its investment properties at fair value, with changes in fair value being recognised in statement of financial activities. The trustees revalued the group's investment properties as at 30 June 2021 using techniques detailed below together with their knowledge of the UK property market. Investment properties fair value are based on valuations by the trustees assessed from their experience in the property market and having regard to many factors including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions.

The UK Group Undertaking represents 100% of the issued share capital of Grademoon Limited, Gradestar Limited and Gradelight Limited. Grademoon Limited, Gradestar Limited and Gradelight Limited are incorporated and operating in England. The register office of the subsidiaries is New Burlington House, 1075 Finchley Road, London NW11 0PU. The investment is stated at trustees best estimate of market value.

A summary of the income, expenditure and net profit or loss for the reporting period of each subsidiary is a as follows:

Donations paid
Gross to Parent Net Profit or
Company Name Income Expenditure Charity (loss)
£ £ £ £
Year Ended 30 June 2021
Grademoon Limited 3,490,818 (2,765,154)
–		 725,664
Gradestar Limited – (600)
–		 (600)
Gradelight Limited – (22,527)
–		 (22,527)
Year Ended 30 June 2020
Grademoon Limited 873,909 (952,702)
–		 (78,793)
Gradestar Limited 226,161 (211,264)
–		 14,897
Gradelight Limited – – – –

The assets, liabilities and funds of each subsidiary undertakings at the end of the reporting period were as follows:

follows:
Capital &
Company Name Assets Liabilities Reserves
£ £ £
As at 30 June 2021
Grademoon Limited 6,490,226 (4,201,644) 2,288,582
Gradestar Limited 16,257 (1,860) 14,397
Gradelight Limited 536,808 (559,235) (22,427)
---------------------------------------
UK Group Undertaking 2,280,552
As at 30 June 2020
Grademoon Limited 5,538,834 (3,975,916) 1,562,918
Gradestar Limited 16,257 (1,260) 14,997
Gradelight Limited 100 – 100
---------------------------------------
UK Group Undertaking 1,578,015

- 23 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

23. Stocks

23. Stocks
Group Company Group Company
2021 2021 2020 2020
£ £ £ £
UK trading properties 2,991,683 – 2,475,797 –
================ ================ =============================== ===============================
24. Debtors
Group Company Group Company
2021 2021 2020 2020
£ £ £ £
Trade debtors 56,236 52,381 36,581 34,319
Amounts owed by group undertakings – 4,019,440 – 3,737,867
Other debtors 3,451,972 – 3,031,956 –
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
3,508,208 4,071,821 3,068,537 3,772,186
================ ================ =============================== ===============================

Included in other debtors of the charity’s subsidiary undertaking is loan of £2,640,000 (2020: £2,250,000) due from Actcell Limited which is a related party by virtue of common directors. Interest is charged annually at the rate of 5% above the Bank of England base rate.

Also included in other debtors of the charity’s subsidiary undertaking is £604,280 (2020: £604,280) due from Pride Autos (UK) Limited, the director of which is a close family member of one of the trustees of this company. Interest is charged annually at the rate of 7% above the Bank of England base rate.

25. Creditor: amounts falling due within one year

Group Company Group Company
2021 2021 2020 2020
£ £ £ £
Bank loans and overdrafts 70,000 70,000 66,000 66,000
Trade creditors 31,291 22,102 28,787 –
Other creditors 69,698 47,902 87,645 21,531
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
170,989 140,004 182,432 87,531
================ ============= ================ =============

The bank loans are secured over two investments of the charity (see note 26).

26. Creditors: amounts falling due after more than one year

Group Company Group Company
2021 2021 2020 2020
£ £ £ £
Bank loans and overdrafts 1,919,936 1,919,936 1,990,776 1,990,776
Other creditors 125,520 – 125,520 –
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
2,045,456 1,919,936 2,116,296 1,990,776
================ ============= ================ =============

Included in bank loans and overdraft is a Unity Trust Bank loan of £1,317,711 which is repayable in July 2028 and interest is charged at 2.75% per annum above the Unity Trust Bank’s base rate. The bank loan is secured over one of the investments of the charity.

Also, included in bank loans and overdraft is an additional Unity Trust Bank loan of £695,310 which is repayable in November 2029 and interest is charged at 2.95% per annum above the base rate of the Bank of England. The bank loan is secured over one of the investments of the charity.

- 24 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

27. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
Net gains and At
At 1 July 2020 Income Expenditure revaluation 30 June 2021
£ £ £ £ £
General funds 25,211,867 4,789,530 (4,833,663) 955,227 26,122,961
═══════════════ ═════════════ ═════════════ ═════════════ ═══════════════
Net losses and At
At 1 July 2019 Income Expenditure revaluation 30 June 2020
£ £ £ £ £
General funds 29,896,334 2,518,399 (3,405,164) (3,797,702) 25,211,867
═══════════════ ═════════════ ═════════════ ═════════════ ═══════════════
Analysis of net assets between funds
Group
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2021
£ £ £ £
Unrestricted Funds 21,711,798 6,456,619 (2,045,456) 26,122,961
=================================================== ========================================= ==================================== ===================================================
Company
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2021
£ £ £ £
Unrestricted Funds 23,983,463 4,059,434 (1,919,936) 26,122,961
=================================================== ========================================== ==================================== ===================================================
Group
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2020
£ £ £ £
Unrestricted Funds 21,072,195 6,255,968 (2,116,296) 25,211,867
=================================================== ========================================= ==================================== ===================================================
Company
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2020
£ £ £ £
Unrestricted Funds 22,647,585 4,555,058 (1,990,776) 25,211,867
=================================================== ========================================== ==================================== ===================================================

28. Analysis of net assets between funds

- 25 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

29. Financial instruments

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

Group Company Group Company
2021 2021 2020 2020
£ £ £ £
Financial assets measured at fair value
through income and expenditure
Investment in subsidiary – 2,280,552 – 1,578,015
========= ================ ======================== ==================================
Financial assets measured at amortised
cost 3,635,925 4,199,438 3,962,603 4,642,589
================= ================= ================================== ==================================
Financial liabilities measured at
amortised cost 2,216,445
===============		 2,059,940
=============		 2,298,728
===============================		 2,078,307
==============================

30. Related parties

During the year the charity received a gift aid donation of £5,000 (2020: £10,000) from Mr R Berkovits, a trustee of the charity.

During the year, the charity received a donation of £400,000 (2020: £160,000) from Berosa Charity Limited, a charity with common trustees.

During the year, the charity donated £434,886 (2020: £200,000) to The Wineburg Foundation and £24,000 (2020: £49,000) to Friends of Toldos Avrohom Yitzchok, charities with common trustees.

During the year, the charity's subsidiary undertaking, Grademoon Limited charged interest of £125,547 (2020: £143,576) at rate of 5% above the Bank of England base rate to Actcell Limited, a company with common directors.

During the year, the charity's subsidiary undertaking, Grademoon Limited was charged rental of £25,000 by Mogul Estates Limited, a company with common directors.

31. Accounting estimates and judgements

Investment properties

The trustees revalued the group's investment properties as at 30 June 2021 using techniques detailed below together with their knowledge of the UK property market. Investment properties fair value are based on valuations by the trustees assessed from their experience in the property market and having regard to many factors including the individual nature of each property, its location and expected future net rental values, market yields and comparable market transactions.

Stock

The group carries its stock of properties at lower of cost and net realisable value. The original property costs are estimated to be lower than the net realisable value.

Loan debtors

Management uses details of the age of loan debtors and the status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any need to impair the carrying values.

- 26 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2021

31. Accounting estimates and judgements (continued)

Investment in joint venture syndicates

The charity has investments in a number of unincorporated property joint venture syndicates. Income arising from investment are shown in the statement of financial activities. The joint venture syndicates have prepared accounts for the year end 31 March 2021 and the results are included on this basis. The syndicates’ results for the period 1 April 2021 to 30 June 2021 are not available and the management has made a judgement on a cost/benefit analysis that the investments should not include a provision for such results.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.

- 27 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Management Information

Year ended 30 June 2021

The following pages do not form part of the statutory financial statements which are the subject of the independent auditor's report on pages 5 to 9.

- 28 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Statement of Financial Activities (including the income and expenditure account)

Year ended 30 June 2021

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Income and endowments
Donations and legacies 405,000 170,000
Investment income 1,090,311 1,406,197
Other income – 25,000
────────── ─────────────
Total income 1,495,311 1,601,197
══════════ ═════════════
Expenditure
Expenditure on raising funds:
Investment management costs (127,942) (108,844)
Expenditure on charitable activities (2,109,664) (2,315,222)
───────────── ─────────────
Total expenditure (2,237,606) (2,424,066)
═════════════ ═════════════
Net gains/(losses) on investments 1,653,389 (3,861,598)
───────────── ─────────────
Net income/(expenditure) and net movement in funds 911,094 (4,684,467)
═════════════ ═════════════
Reconciliation of funds
Total funds brought forward 25,211,867 29,896,334
─────────────── ───────────────
Total funds carried forward 26,122,961 25,211,867
═══════════════ ═══════════════

- 29 -