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2023-06-30-accounts

COMPANY REGISTRATION NUMBER: 01498368 CHARITY REGISTRATION NUMBER: 281297

TAGMARSH CHARITY LIMITED

COMPANY LIMITED BY GUARANTEE CONSOLIDATED FINANCIAL STATEMENTS

30 JUNE 2023

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 2023

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 2023

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 subsidiaries for the year ended 30 June 2023, 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

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 (retired 30 November 2022)
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 2023

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 principal 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 and organisations 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 poverty, religion, education and other charitable institutions and the aggregate donations were paid in the sum of £2,897,720 (2022: £2,892,792).

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Tagmarsh Charity Limited

Company Limited by Guarantee

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

Year ended 30 June 2023

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 £2,107,138 (2022: £2,375,440). The charity and its subsidiary undertaking's indirect investments via joint ventures in UK property realised a net income of £563,147 (2022: £805,960). The trustees are pleased with the rate of return achieved.

Financial review

The charity continued its activities in support of charitable organisations and during the year the charity donated over £2.8 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 trade 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 companies.

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 £22,909,261 (2022: £24,191,778) was held as unrestricted funds in the group. Included within this are fixed assets of £19,534,651 (2022: £19,906,976) and free reserves of £1,291,322 (2022: £204,511).

It is the policy of the charity to maintain free reserves, 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 2023

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:

rmance indicators used by the group are as follows:
2023 2022
£ £
Grants and donations received 50,000 149,950
Grants and donations paid 2,897,720 2,892,792

During the year, the charity donated funds to 92 (2022: 108) 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 17 April 2024 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 2023

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 2023 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

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 charity'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.

- 5 -

Tagmarsh Charity Limited

Company Limited by Guarantee

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

Year ended 30 June 2023

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 2023

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:

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Tagmarsh Charity Limited

Company Limited by Guarantee

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

(continued)

Year ended 30 June 2023

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

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Tagmarsh Charity Limited

Company Limited by Guarantee

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

(continued)

Year ended 30 June 2023

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.

Joshua Neumann 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 17 April 2024 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 2023

Unrestricted
funds Total funds Total funds
2023 2023 2022
Note £ £ £
Income and endowments
Donations and legacies 5 50,000 50,000 149,950
Investment income 6 1,092,649 1,092,649 1,279,777
Other trading activities 7 1,790,501 1,790,501 2,090,000
Other income 8 – – 9,500
───────────── ───────────── ─────────────
Total income 2,933,150 2,933,150 3,529,227
═════════════ ═════════════ ═════════════
Expenditure
Expenditure on raising funds:
Investment management costs 9 (177,332) (177,332) (124,147)
Expenditure on charitable activities 10,11 (3,051,794) (3,051,794) (3,036,983)
Other trading costs 15 (1,485,189) (1,485,189) (1,872,762)
───────────── ───────────── ─────────────
Total expenditure (4,714,315) (4,714,315) (5,033,892)
═════════════ ═════════════ ═════════════
Net gains/(losses) on investments 18 501,703 501,703 (410,162)
───────────── ───────────── ─────────────
Net expenditure before tax (1,279,462) (1,279,462) (1,914,827)
Taxation 19 (3,055) (3,055) (16,356)
───────────── ───────────── ─────────────
Net expenditure for the year and net movement in funds (1,282,517) (1,282,517) (1,931,183)
═════════════ ═════════════ ═════════════
Reconciliation of funds
Total funds brought forward 24,191,778 24,191,778 26,122,961
─────────────── ─────────────── ───────────────
Total funds carried forward 22,909,261 22,909,261 24,191,778
═══════════════ ═══════════════ ═══════════════

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 2023

2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 22 2,961 5,924
Investments 23 19,531,690 19,901,052
──────────── ────────────
19,534,651 19,906,976
Current assets
Stocks 24 960,105 2,863,737
Debtors 25 3,420,994 3,583,438
Cash at bank and in hand 1,291,322 204,511
───────────── ─────────────
5,672,421 6,651,686
Creditors: amounts falling due within
one year 26 (319,004) (340,958)
────────── ──────────
Net current assets 5,353,417 6,310,728
──────────── ────────────
Total assets less current liabilities 24,888,068 26,217,704
Creditors: amount falling due after
more than one year 27 (1,978,807) (2,025,926)
───────────── ──────────────
Net assets 22,909,261 24,191,778
═════════════ ══════════════
Funds of the charity
Unrestricted funds 22,909,261 24,191,778
────────────── ──────────────
Total charity funds 29 22,909,261 24,191,778
══════════════ ══════════════

These financial statements were approved by the board of trustees and authorised for issue on 17 April 2024, and are signed on behalf of the board by:

Mr A Warmberg Trustee

Mr S E Berkovits Trustee

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 2023

2023 2022
Note £ £ £ £
Fixed assets
Investments 23 21,349,434 21,709,130
Current assets
Debtors 25 2,676,841 4,496,955
Cash at bank and in hand 1,242,797 193,315
───────────── ─────────────
3,919,638 4,690,270
Creditors: amounts falling due within
one year 26 (506,524) (307,216)
────────── ──────────
Net current assets 3,413,114 4,383,054
──────────── ────────────
Total assets less current liabilities 24,762,548 26,092,184
Creditors: amount falling due after
more than one year 27 (1,853,287) (1,900,406)
───────────── ──────────────
Net assets 22,909,261 24,191,778
═════════════ ══════════════
Funds of the charity
Unrestricted funds 22,909,261 24,191,778
────────────── ──────────────
Total charity funds 29 22,909,261
══════════════		 24,191,778
══════════════

These financial statements were approved by the board of trustees and authorised for issue on 17 April 2024, and are signed on behalf of the board by:

Mr A Warmberg 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 2023

Unrestricted Unrestricted
Funds Funds
2023 2022
£ £
Cash flows from operating activities
Net (expenditure)/income for the year (1,282,517) (1,931,183)
Adjustments for:
Depreciation charges 2,963 2,963
Government grants – (9,500)
Net losses/(gains) on investments (501,703) 410,162
Dividends, interest and rents from investments (1,060,997) (1,254,345)
Interest payable and similar charges 960 766
Taxation 3,055 16,356
Accrued expenses 16,140 2,960
Changes in:
Stocks 1,296,117 127,946
Trade and other debtors 237,068 (16,407)
Trade and other creditors (40,402) 198,153
───────────── ─────────────
Cash generated from operations (1,329,316) (2,452,129)
Interest paid (960) (766)
Interest received 138,239 125,555
Tax paid (16,247) –
───────────── ─────────────
Net cash used in operating activities (1,208,284) (2,327,340)
═════════════ ═════════════
Cash flows from investing activities
Dividends, interest and rents from investments 284,987 260,007
Proceeds of sale of investments 2,982,406 3,885,320
Purchase of investments (940,679) (1,687,663)
───────────── ─────────────
Net cash provided by investing activities 2,326,714 2,457,664
═════════════ ═════════════
Cash flows from financing activities
Repayments of borrowings (31,619) (63,030)
Government grants – 9,500
────────── ───────────
Net cash used in financing activities (31,619) (53,530)
══════════ ═══════════
Net increase/(decrease) in cash and cash equivalents 1,086,811 76,794
Cash and cash equivalents at beginning of year 204,511 127,717
──────────── ─────────────
Cash and cash equivalents at end of year 1,291,322 204,511
════════════ ═════════════
Analysis of cash and cash equivalents
Cash in hand 1,291,322 204,511
Overdraft facility – –
------------------------------------------- -------------------------------------------
Total cash and cash equivalents 1,291,322 204,511
=========================================== ===========================================

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 2023

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.

Tagmarsh Charity Limited meets the definition of a public benefit entity under FRS 102. 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 2023. 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 33.

- 14 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

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.

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 2023

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 2023 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 2023

5. Donations and legacies
Total Funds Total Funds
2023 2022
£ £
Donations received 50,000 149,950
═════════ ═════════════
No restrictions were attached to any donations received.
6. Investment income
Total Funds Total Funds
2023 2022
£ £
Income from UK investment properties 316,637 285,440
Net income from joint ventures 563,147 805,960
Other interest receivable 212,865 188,377
---------------------------------------------- ----------------------------------------------
1,092,649 1,279,777
============================================== ==============================================
7. Other trading activities
Total Funds Total Funds
2023 2022
£ £
Sale proceeds from UK properties 1,790,501 2,090,000
============================================== ==============================================
8. Other income
Total Funds Total Funds
2023 2022
£ £
Covid-19 Government Support – 9,500
============================== ====================================
9. Investment management costs
Total Funds Total Funds
2023 2022
£ £
Investment property expenses 177,332 124,147
============================== ====================================
10. Expenditure on charitable activities by fund type
Total Funds Total Funds
2023 2022
£ £
Grants and donations 2,897,720 2,892,792
Support costs 154,074 144,191
───────────── ─────────────
3,051,794 3,036,983
═════════════ ═════════════

- 17 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

11. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2023 2022
£ £ £ £
Grants and donations 2,897,720 111,448 3,009,168 3,010,657
Governance costs – 42,626 42,626 26,326
───────────── ───────── ───────────── ─────────────
2,897,720 154,074 3,051,794 3,036,983
═════════════ ═════════ ═════════════ ═════════════

12. Analysis of grants to institutions

2023 £ Advancement of Health and Saving of Lives 214,180 Advancement of Education 800,052 Relief of Poverty 270,972 Advancement of the Jewish Religion 544,998 Grants to other Grant Making Charity 1,067,518 -----------------------------------Total grants 2,897,720 ================================================

13. Analysis of institutional grants

Analysis of institutional grants
2023
£
Berosa Charity Limited 800,000
Chasdei Aharon Limited 89,000
Friends of Beis Chinuch Lebonos Trust 98,000
Friends of Beis Soroh Schneirer 79,500
Friends of Mercaz Hatorah Belz Macnivka 127,120
Friends of Wiznitz Limited 207,000
Lehachzikom UK 75,000
Grants to other institutions (< £50,000) 549,500
Live and Learn 74,500
Mifal Hachesed Vehatzedokoh 137,500
One Heart - Lev Echod 106,600
Rise and Shine 60,000
Start Upright 64,000
Tchabe Kollel Limited 130,000
The Wineburg Foundation 300,000
-------------------------------------
Total grants 2,897,720
=====================================

- 18 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

14. Analysis of support costs

14. Analysis of support costs
Total Funds Total Funds
2023 2022
£ £
General office 111,448 117,865
Governance costs 41,666 25,560
Finance costs 960 766
---------------------------- ----------------------------
154,074 144,191
=========================== ===========================
15. Other trading costs
Total Funds Total Funds
2023 2022
£ £
Property trading cost of sales 1,485,189 1,872,762
============================================== ==============================================
The property trading activities were carried out by the subsidiary undertaking.
16. Staff costs and emoluments
The aggregate payroll costs for the group were:
2023 2022
£ £
Wages and salaries 101,666 128,614
═══════ ═══════
The average number of persons employed by the group during the year amounted to 7 (2022: 9).
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. Net gains/(losses) on investments

Net gains/(losses) on investments
Total Funds Total Funds
2023 2022
£ £
Unrealised gains/(losses) on investments 444,766 (5,383)
Gains/(losses) on investment assets 56,937 (404,779)
---------------------------------- -------------------------------
501,703 (410,162)
=============================== ===============================

- 19 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

19. Taxation

Taxation
2023 2022
£ £
Current tax
Current year 3,055 16,356
=================== =====================
Taxation 3,055 16,356
=================== =====================

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

Reconciliation of tax expense

The tax assessed on the net income for the year is higher than the standard rate of corporation tax in the UK of 19% (2022: 19%).

UK of 19% (2022: 19%).
2023 2022
£ £
Net expenditure before tax (1,279,462) (1,914,827)
═══════════ ═══════════
Net expenditure by rate of tax (243,098) (363,817)
Non-taxable income and expenses 245,515 277,155
Timing difference on depreciation and capital allowances 563 563
Timing difference on gift aid – 102,455
Impact on change in tax rate 75 –
---------------------------- ----------------------------
Taxation 3,055 16,356
=========================== ===========================
20. Net movement in funds
This is stated after charging:
2023 2022
£ £
Fees payable for the audit of the financial statements 33,300 27,960
═══════ ═══════

21. The results attributable to the parent charity

During the year, the gross income attributable to the parent charity was £1,328,107 (2022: £1,991,355) and the net movement in funds was £-1,282,517 (2022: £-1,931,183).

- 20 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

22. Tangible assets

Group

Group
Motor vehicles Total
£ £
Cost
At 1 July 2022 11,850 11,850
Additions – –
Disposal – –
─────── ───────
At 30 June 2023 11,850 11,850
═══════ ═══════
Depreciation
At 1 July 2022 5,926 5,926
Charge for the year 2,963 2,963
Disposal – –
─────── ───────
At 30 June 2023 8,889 8,889
═══════ ═══════
Carrying amount
At 30 June 2023 2,961 2,961
═══════ ═══════
At 30 June 2022 5,924 5,924
═══════ ═══════
23. Investments
Group - UK investment property - Freehold property
2023 2022
£ £
Market value at 1 July 11,159,000 11,152,241
Additions 636,564 12,142
Disposals (2,424,000) –
Revaluation 444,766 (5,383)
---------------------------------------------- ----------------------------------------------
Market value at 30 June 9,816,330 11,159,000
=================== ===================
Historical cost at 30 June 7,373,712 7,995,744
===================== =====================
Group – Other UK investments - Joint venture syndicates
2023 2022
£ £
Cost at 1 July 8,742,052 10,550,670
Capital introduced 911,630 1,675,521
Surplus for the year 563,147 805,960
Withdrawals (502,787) (3,885,320)
Gains/(losses) on disposals 1,318 (404,779)
---------------------------------------------- ----------------------------------------------
Cost at 30 June 9,715,360 8,742,052
===================== =====================
Group- Analysis of investments at 30 June between funds
2023 2022
£ £
Other
UK investment property 9,816,330 11,159,000
Other UK investments 9,715,360 8,742,052
-------------------------–----------------------- -------------------------–-----------------------
19,531,690 19,901,052
===================== =====================

- 21 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

23. Investments (continued)

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

Group Company Group Company
2023 2023 2022 2022
No. No. No. No.
Percentage holdings
Less than 20% 1 1 2 2
20% - 50% 15 15 14 14
More than 50% – – – –
-------------------------- -------------------------- -------------------------- --------------------------
16 16 16 16
=========== =========== =========== ===========

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

Group
2023 2022
£ £
Investment properties at cost 94,182,786 88,922,459
Net current assets 5,352,734 5,209,569
Bank loans: amounts falling due after more than one year (60,311,464) (58,938,412)
------------------------––------------------- ------------------------––-------------------
Net assets 39,224,056 35,193,616
==================== ====================
Group’s share of net assets 9,715,360 8,742,052
===================== =====================
Company - UK investment property - Freehold property
2023 2022
£ £
Market value at 1 July 11,159,000 11,152,241
Additions 644,049 12,142
Disposals (2,424,000) –
Revaluation 437,281 (5,383)
---------------------------------------------- ---------------------–-------------------------
Market value at 30 June 9,816,330 11,159,000
==================== ====================
Historical cost at 30 June 7,381,197 7,995,744
==================== ====================
Company - Other UK investments - Joint venture syndicates
2023 2022
£ £
Cost at 1 July 8,742,052 10,550,670
Capital introduced 911,630 1,675,521
Surplus for the year 563,147 805,960
Withdrawals (502,787) (3,885,320)
Gains/(losses) on disposals 1,318 (404,779)
---------------------------------------------- ----------------------------------------------
Cost at 30 June 9,715,360 8,742,052
===================== =====================

Company - UK investment property - Freehold property

- 22 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

23. Investments (continued)

Company - Analysis of investments at 30 June between funds

2023 2022
£ £
Other
UK Investment property 9,816,330 11,159,000
Other UK investments 9,715,360 8,742,052
UK Group Undertaking 1,817,744 1,808,078
----------------------------––––------------- ----------------------------––––-------------
21,349,434 21,709,130
===================== =====================

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 2023 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 registered 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:

as follows:
Donations paid
Gross to Parent Net Profit or
Company Name Income Expenditure Charity (loss)
£ £ £ £
Year Ended 30 June 2023
Grademoon Limited 2,649,997 (2,390,259)
(250,000)
9,738
Gradestar Limited – – – –
Gradelight Limited – (72)
–		 (72)
Year Ended 30 June 2022
Grademoon Limited 1,735,259 (1,632,306)
(600,000)
(497,047)
Gradestar Limited – (823)
–		 (823)
Gradelight Limited 595,000 (569,604)
–		 25,396

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

Capital &
Company Name Assets Liabilities Reserves
£ £ £
As at 30 June 2023
Grademoon Limited 4,046,378 (2,245,105) 1,801,273
Gradestar Limited 14,174 (600) 13,574
Gradelight Limited 4,193 (1,296) 2,897
---------------------------------------
UK Group Undertaking 1,817,744
As at 30 June 2022
Grademoon Limited 6,434,848 (4,643,313) 1,791,535
Gradestar Limited 14,774 (1,200) 13,574
Gradelight Limited 28,204 (25,235) 2,969
---------------------------------------
UK Group Undertaking 1,808,078

- 23 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

24. Stocks

24. Stocks
Group Company Group Company
2023 2023 2022 2022
£ £ £ £
UK trading properties 960,105 – 2,863,737 –
================ ================ =============================== ===============================
25. Debtors
Group Company Group Company
2023 2023 2022 2022
£ £ £ £
Trade debtors 36,585 34,973 61,394 59,319
Amounts owed by group undertakings – 2,086,868 – 4,437,636
Other debtors 3,384,409 555,000 3,522,044 –
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
3,420,994 2,676,841 3,583,438 4,496,955
================ ============= =============================== ===============================

Included in other debtors of the charity’s subsidiary undertaking is loan of £2,450,000 (2022: £2,450,000) due from Actcell Limited which is a related party by virtue of common directors. The loan is secured, and interest is charged per annum at the rate of 6.25%. Also included in other debtors of the charity’s subsidiary undertaking is £Nil (2022: £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 per annum at the rate of 7% above the Bank of England base rate. Also, included in other debtors is £589,900 (2022: £Nil) due from Berosa Charity Limited, a charity with common trustees.

26. Creditor: amounts falling due within one year

Group Company Group Company
2023 2023 2022 2022
£ £ £ £
Bank loans and overdrafts 42,000 42,000 26,500 26,500
Trade creditors 819 – 11,687 –
Amounts owed by group undertakings – 203,766 – 41,125
Corporation tax 3,164 – 16,356 –
Social security and other taxes 756 – 936 –
Other creditors 272,265 260,758 285,479 239,591
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
319,004 506,524 340,958 307,216
================ ============= ================ =============

The bank loans are secured over two investments of the charity (see note 27).

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

Group Company Group Company
2023 2023 2022 2022
£ £ £ £
Bank loans and overdrafts 1,853,287 1,853,287 1,900,406 1,900,406
Other creditors 125,520 – 125,520 –
-------------------------------------- ------------------------------- -------------------------------------- -------------------------------
1,978,807 1,853,287 2,025,926 1,900,406
================ ============= ================ =============

Included in bank loans and overdraft is a Unity Trust Bank loan of £1,258,163 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 £654,079 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 2023

28. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
Net
gains/(losses) At
At 1 July 2022 Income Expenditure
on revaluation		 30 June 2023
£ £ £ £ £
General funds 24,191,778 2,933,150 (4,717,370) 501,703 22,909,261
═══════════════ ═════════════ ═════════════ ═════════════ ═══════════════
Net gains on At
At 1 July 2021 Income Expenditure revaluation 30 June 2022
£ £ £ £ £
General funds 26,122,961 3,529,227 (5,050,248) (410,162) 24,191,778
═══════════════ ═════════════ ═════════════ ═════════════ ═══════════════
nalysis of net assets between funds
Group
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2023
£ £ £ £
Unrestricted Funds 19,534,651 5,353,417 (1,978,807) 22,909,261
=================================================== ========================================= ==================================== ===================================================
Company
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2023
£ £ £ £
Unrestricted Funds 21,349,434 3,413,114 (1,853,287) 22,909,261
=================================================== ========================================== ==================================== ===================================================
Group
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2022
£ £ £ £
Unrestricted Funds 19,906,976 6,310,728 (2,025,926) 24,191,778
=================================================== ========================================= ==================================== ===================================================
Company
Tangible
assets and Net current Long term Total Funds
Investments assets liabilities 2022
£ £ £ £
Unrestricted Funds 21,709,130 4,383,054 (1,900,406) 24,191,778
=================================================== ========================================== ==================================== ===================================================

29. Analysis of net assets between funds

- 25 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

30. Financial instruments

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

Group Company Group Company
2023 2023 2022 2022
£ £ £ £
Financial assets measured at fair value
through income and expenditure
Investment in subsidiary – 1,817,744 – 1,808,078
========= ================ ======================== ==================================
Financial assets measured at amortised
cost 4,712,316 3,919,638 3,787,949 4,690,270
================= ================= ================================== ==================================
Financial liabilities measured at
amortised cost 2,297,811 2,359,811 2,366,884 2,207,622
=============== ============= =============================== ==============================
Analysis of changes in net debt
At 1 Jul 2022 Cash flows At 30 Jun 2023
£ £ £
Cash at bank 204,511 1,086,811 1,291,322
---------------------------- ---------------------------- ----------------------------
204,511 1,086,811 1,291,322
Bank loans and mortgages (1,946,926) 34,684 (1,912,242)
---------------------------- ---------------------------- ----------------------------
Total (1,742,415) 1,121,495 (620,920)
=========================== =========================== ===========================

31. Analysis of changes in net debt

32. Related parties

During the year, the charity donated £800,000 (2022: £Nil) to Berosa Charity Limited, £300,000 (2022: £450,000) to The Wineburg Foundation, £18,250 (2022: £135,000) to Friends of Toldos Avrohom Yitzchok, £Nil (2022: £150,000) to The Ma'os Yesomim Charitable Trust and £10,500 (2022: £22,150) to S & J Charitable Trust, charities with common trustees.

During the year, the charity's subsidiary undertaking, Grademoon Limited charged interest of £153,125 (2022: £138,856) at rate of 6.25% to Actcell Limited, a company with common directors.

During the year, the charity's subsidiary undertaking, Grademoon Limited charged interest of £38,093 (2022: £44,723) at rate of 7% above the Bank of England base rate to Pride Autos (UK) Limited, the director of which is a close family member of one of the trustees of this company.

During the year, the charity's subsidiary undertaking, Grademoon Limited was charged rental of £25,000 (2022: £25,000) by Mogul Estates Limited, a company with common directors.

- 26 -

Tagmarsh Charity Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 30 June 2023

33. Accounting estimates and judgements

Investment properties

The trustees revalued the group's investment properties as at 30 June 2023 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.

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 2023 and the results are included on this basis. The syndicates’ results for the period 1 April to 30 June 2023 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 2023

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 2023

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Income and endowments
Donations and legacies 300,000 749,950
Investment income 1,028,107 1,241,405
────────── ─────────────
Total income 1,328,107 1,991,355
══════════ ═════════════
Expenditure
Expenditure on raising funds:
Investment management costs (174,365) (120,784)
Expenditure on charitable activities (2,940,143) (2,919,118)
───────────── ─────────────
Total expenditure (3,114,508) (3,039,902)
═════════════ ═════════════
Net gains/(losses) on investments 503,884 (882,636)
───────────── ─────────────
Net expenditure and net movement in funds (1,282,517) (1,931,183)
═════════════ ═════════════
Reconciliation of funds
Total funds brought forward 24,191,778 26,122,961
─────────────── ───────────────
Total funds carried forward 22,909,261 24,191,778
═══════════════ ═══════════════

- 29 -