Charity reglstratlon number 290568 Company regi5tratlon number 01835501 (England and Wales) GAMA TZEDAKA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
GAMA TZEDAKA LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Govomors MrPJay MrDJay MrlSJay Charlty numl)èr 290568 Company number 01835501 PrlnGipal address Foframe House, 2nd Floor 3547 Brent Street London NW4 2EF Registered offlcg Foframe House. 2nd Floor 3&37 Brant Str8at London NW4 2EF Audltor Lopian Gross Bamett & Co 1 st FIoDr Cldster House Riverside. New Bail&y Street Manchester M3 5FS
GAMA TZEDAKA LIMITED CONTENTS Page Gov8mors' report Statement of governtys, responsibi1itSes Independent audllorfs report ststement of financial activities Balance sheet 9-10 Statemerrt of cash )lows 11 Notes to the finanaal statements 12-19
GAMA TZEDAKA LIMITED GOVERNORS, REPORT (INCLUDING DIRECTORS. REPORT) FOR.THE YEAR ENDED 31 DECEMBER 2021 The governors present their annual report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance With the accounting policies set out in note I lo the financial statements and comply with the company's Igoverning dUMentI, the C(ympanies Act 2006 and 'Accounb"ng and Reporting by Charities: Statement of Recommended Practice applicable to charitses preparing their accounts in accordance with the Financlal Reportlng Standard appllcable in the UK and Republic of Ireland IFRS 102)" leffeclive 1 January 20191. Objectives and activities The charity's obje¢ts are lo distribute funds lo religious, educational and simtlar tharilies for the advancement of religion in accordance with the Orth¢)dox Jewish f31th and the relief of poverty and other charitable purposes for the public benefit. The gims of the charity in accordance with these objectives are lo help with the funding of charities which advance the Orthodox Jewish faith and lo help alleviate povèrty. The policies adopted In furtherance of these objects are lo identify Orthodox Jewish charities which cary out activities such as ptoviding Orthodox Jewish edu¢alion and other acllvilles which advance religion in accordance wlh the Orthodox Jewsh faith or which relieve poverty and there has been no change in these during the year. The govemors confim that they have had regard to guidance Contained in the Ch8rity Commission gènèral guidan on public benefit when reviewing the tharity's aims and objectives and in planning future activities and setting the grant making policy for the year. The charity's income is generated from investment income and the available income was distributed in the year, or otherwise paid to a similar charity to this one. The m8in Strategy for the above aims and objecb'ves is to maintain a stable fksw of donations going to worthy (xuses in the J1$h communty. The governors also aim to expand the charitls investment portfolio whenever the opportunity arises. No particular critèria or measurts are used to asse55 success in a¢hievlng these alms or obJ"ectives. The only acliwb"e5 undertaken have been monitoring the charity's investment income and making distributions to a numb8r of charities in accordance with the above objectives and policies. Achlèvèmènts #nd perfornianc8 The charity has continued lo distribute funds lo other charities during the year. All of the available incoming resources, after the charity mel ils loan payment obligations, were distributed benefitting th8 recipient organisations accordingly, or else paid lo a charity wrth the $8me govemors, obie¢ts and purpose as this one. Any remaining cash reserves available will be Put towards future investment purposes. The charity's investm8nt Properties generated net cash retums in line with expeclafjons. The charity dlslributed or otherwise paid to another similar charity the maximum available. At the year end the charity held UK properiles as investments which were valuèd at £5.900,000 and gen&ratèd gross rentsl incom8 of £434,462.
GAMA TZEDAKA LIMITED GOVERNORS, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Flnancial review Thè charitys funds ftsr distribution derived from property investrnent income from Its own proporty. The total of nel incoming resources was £434.462 which resulted in a surplus of £103.453 after charitable donations of £152,500 and other charitable expenses of £178,509. The charity gifted one of ils properbes lo a connected charity resulting in a loss of £2,438,575. The financial position of the charity at the end of the year is set out on page 9, wlh closing funds of £3.115,213. No significant ever)t affected the financial perforniance and financial position or the charity during th8 year. Nor have any been identified that are likely lo do so currently or in the future. Th8 governors have identified the prinapal risks and uncertainties facing the charity and have also adopted plans and strategies to fllanage these as follows= decline in values of investmant properties, managed by investing in good quality buildings with reliable tenants as confirmed by the independent valuations obtained on purchase and by own regular monrtoring f811 In Incorne.. letting only to reliable tenants as above-, maintaining informal reserves In the charfty., havlng funds availabse lo the govemoT5 to lend to the charity if Teguired. The is no formal policy to maintain a set level of reserves. The governors are continually looking for appropriate investments which will ensure that high18vel of returns can be achieved for the th8ritYs benèfit. The govemors, investment powers are governed by the charivs Articles of Association which permit the govemors to invest the Charity'5 funds as they m3y see fft. The governors are experienced property investors and have invested the oharity's funds in property in order lo generate funds for distribution. Investments are chosen on the basis of achieving a yield in exce55 of Ihat available from tash deposits while maintaining security of income. The governors have assessed the major Tisks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure lo the major risks. The governors wlll ujntinue lo purchase further investments when they believe it is in the best Interests of the charity. Stru¢tur¢, governance and management The charity is limited by guaranlèe. It was incorporated on 24 ju 1984 and rlStered as a tharity on the same date. The charity was established under a Memorandum of As50ciation whith eslablishgd the objects and powers of the charitable company and is govemed under its Articles of Asso¢iation. The governors, 0 are also the directtsrs for the purpose of company law. and who servèd during the year and up lo the d81e of slgnalLsre of the financial statements were.. MrPJay MrDJay MrlSJay Govemors are recommended and appointad by the Board of Govemors. None of the govemors has any beneficial interest in the oharity. All of the governors are members of the charity and guarantee to contribute an amount not exceeding £1 in the event DI a winding up. The board of govemors administ8rs the charity who retsin wmplete r8sponsibility for its management. Auditor In ac¢ordan¢e with the companys articles, a resolution proposing that Lopian Gross Barnett & Co be reappolnled as auditor of the rompany will be put at a General Meeting.
GAMA TZEDAKA LIMITED GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Dlsc105ure of Inforniation to audbtor Each of the gov8rnors has confirnied that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps lo identify suth relevant infornialion and to establish that the auditor is aware of such information. gov&rnor eport was approved by the Board of Govemors. Governo 032
GAMA TZEDAKA LIMITED STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The govemors, who are also the dirertors of Gama Tzedaka Limited for the purpose of company law, are responsible for preparing the Govemors, Report and the financial statements in accordance wrth applicable law 3nd United Kingdom Accounting Stsndards (United Kingdom Generally Aepted Accounting Practice). Company Law requires the govemors lo prepare flnancial statements for each financial year which give a true and fair view of the stale of affairs of the company and of the incoming resources and application of resources. including the income and expendilure, of the charitsble company for that year. In preparing these financial statements, thè govèmors are required to.. select suilabfe accounting policies and then apply them consistenlly.. - observe the methods and prineipl&s in the Charities SORP., makg judgemen15 and estimates that are reasonable and prudent.. stste whether 8pplicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements-. and prepare the financial ststements on the going concem basis unlfrss It is inappropriate to presume that the company will continue in operation. The govemors are responsible for k8eping adequate accounting records thal disclose wrth asOnable accuracy at any tirne the financial position of the company and enable them to ensure that ihe financial statements comply with the Companies Act 2006. They are also responsib18 for safeguarding the assets of the cornpany and hence for tsking reasonable steps for the pventIOn and detection ol traud and other irregularities.
GAMAfzEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF GAMA TZEDAKA LIMITED Oplnion Vve have audited the financAal ststements of Gama Tzedaka Limit8d Ithe 'sompanl} for the year ended 31 December 2021 which comprise the statement of financial actwilies, the balance sheet, the ststement of cash flows and the notes to the financial statements, including significant 8ccounting policiès. The fin8nc4al reporting framework thal has been applied in their preparation is applicable 18w and United Kingdown Accounting Standards, including FRS 102 The Finanal Reporting Standanl applicable in the UK and Republ of Ireland. In our opinion, the financAal statements.. giv& a true and fair view of th8 Stale of the Gharitable companls affairs as at 31 Dec8mber 2021 and of incoming resources and application of resoLtrces, for the year then ended,. have be8n propgrly prepared in accordancè United Klngdom Generally Accepted Accounting Practice.. and have been prepargd in accclrdance with the r9quIments of the Compani8s Act 2006. Basis for oplnlon We conducted our audit in accordance with Intemational Stsndards on Auditing (UK) IISAS IUKII and appllcable law. Our responsibilities under those stsndards are further described in the Auditor's r8sponsibility8s for the audit of thè fin8nci81 statements section of our report. We are independenl of the company in accordance with thè èthical 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 @thical r85ponsibililies in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial stslements, we have concluded that the govemors. use of the going concem basis of a¢UtIng in the preparation of the financlal statsmenls is appropriate. Based on the work w8 have performed, we have not identtfied any materi81 uncertainties relating lo events or conditions that. individually or collectively. may cast significant doubl on the company's ability to continue as a going concern for a period of at least Nvglve months from when the financial statements arg authorised for issue. Our responsibi16fjes and the responsibilities of the governors with respect to going concem are describ8d in the relevant sections of this report. Other Information The other infomiatr'on comprises the infomiatK)n inGluded in the annual report olher than the financial statements and our auditorfs report thereDn. The governors are responsible for the other infomiaton contained within the annual report. OLJr opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other informats.on and. in doing so, consider whether the other information is materially inconsistent with the flnanclal statements or our knoedge obtained in the ¢ours8 of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistena8s or apparent material misslalemènts, wp are required lo determine whether this gives rise lo a rnaterial misstslement Sn the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other infomatlon, we are required lo report that fact. We have nothing to report in this regard. Matters on whlch we are requId to rep¢rt by exception We have nothing to report in respect Df th8 following matter5 in relation lo which the Chartlies (Accounts and Reports) Regulations 2008 require us to report to you rf, in our opinion.. the infomation given in the financial statements is inconsislenl in any material respect with the govemors, report., or sufficient accounting records havg not been kept,. or the financial stat8ments are not in agreement with the aco)unting records.. or we have not received all the infomalion and explanations we require for our audit.
GAMA TZEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF GAMA TZEDAKA LIMITED ResponsibSlltlès of governors As explained more lully in the statement of governors. responslbllllles, the govemors, who are also the directors of the company for thè purpose of company law, are respDnsible for the preparation of the finanaal statements and for being satisfied that they give a true and fair view, and for such inlemal control as the governors determine is necessary to enable thè preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the govemors are responsible for assessing the company's ability lo continue as a going concem, disclosing, as applicable, matter5 related lo going concern and using the going concern basis of accounting unless the gDvemors either intend lo liquidate the charitable company or to cease operations, or have no realistic allemative but to do so. Auditor's rèsponslbllltles for the audlt of the finaneial statements We hav? been aprK>inted as auditor under section 144 of the Charitie5 Act 2011 and report in accordance with the Act and ml8vant règulations madÈ or having èffect thereunder. Our objecbves are lo obt8in reasonable assurance abokjt whether the financial statements as 8 whole are fr99 from rnalerial misslalemenl, whether due lo fraud or error, and to issue an auditorfs report that includes Dur opiniorb. Reasonablè assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance wth ISAS IUKI will always detect a material misstatement when it exists. Misstslements can arise from fraud or error and are considered rnaterial if, indiwdually or in the aggregate, they could reasonably be expected lo influen the economic decisions of users taken on the basls of these finantial stslements. IgularitieS. including fraud. are instances of non-compliance with laws and regiJl8tions. We design procedures In line with our responsibilities. outlined above, to detect material misststements in respect of irregularities, including fraud. The extent to which our procedures are capab18 of dètecbng irregularities. including fraud, is detsiled below. We Dbtained an understanding of laws and regulats'ons that affect the entity. focusing on those ihat had a direct effect on the finanaal statements or that had a fundamental effect on operations. Where considered necessary we enquired of thos8 charg8d with gov8mance, reviewed correspondence and reviewed meeting minutes for evidenee of non-compliance with relevant laws and regulations. We gained an understanding of the controls environment which includes the controls in place to prevent and detect fraud. We enquired of those ¢harged with goveTnance about any incidence5 of fraud that had taken place during the accounbng period. The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned 8n(J performed to add5$ these rSsks. We revlewed finandal slalements disclosures to assess compliance with relevant laws and regulations. We enqulred of those charged with govemance about actual and potential litigation and claims. We perfornied analybcal procedures lo identify any unusual or unexpected relationships th81 might in¢Jicate rtsks of material misstatement due to fraud. In addressing the rfsk of fraud due to management overridg of internal controls we tested the approprialgness of journal entries and assessed whether the judgemenls made in rnaking accounting estimates were indicative of a potèntial bias. Due to the inhèr8nt limit8tions of an audit, there is an unavoidable risk that we may nol hav& delected som8 material misstatemfrnts in the fin3nGial statements, even though we have properly planned and perfomied our audit in accordance with auditin9 stsndards. For example. as with any audit, there remained a higher risk of non4etection of irregularities, as these may involve ¢ollusion, forgery, intentional omissions. misrepr8sentètions. or the ov8rride of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
GAMA TZEDAKA LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF GAMA TZEDAKA LIMITED A lurther description of our responsibilities is available on the Finanaal Reporting Council's website at- https'.11 Www.frc.org.uaUd7toTsresPDnsibIlltie5. This description fL)rms part of our auditor'5 report. Uso of our report Thls report is rnade solely to the charity's trustees, as a body. in accordance wth part 4 of th8 Charities (Accounts and Reports) Regulations 2008. OUT audit work has been undertaken so that we rnight state to the charitys Irustees those matters we are required lo state lo them in an auditorfs report and for no other purpose. To the fullest extent pembtted by law, we do not accept or assume responsibility to anyone other than Ihe tharity and the charity's Irusl8es as a body, for our audit work, ft)r this report. or for the opinions we have fomed. Jonathan Brodi• FCA158nior Statutory Auditor) for and on b•half of Loplan Gross Barnett & Co 1410912022 Chartered Accountants statutory Audltor 1st Floor Cloister House Riverside. New Bailey stet Mand)ester M3 5FS Lopian Gross Barnett & Co is eligible for apwintment as auditor of the company by virtue of Its eligibility for apw)intmenl as audttor of a TpanY und8r section 1212 of the Companies Act 2006.
GAMA TZEDAKA LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Notes Incomè from= Investments 434,462 511,222 Ex onditur# on: Charitable ath"vits"es 2,591,075 236,454 Other 178,509 235,492 Total resources expended 2.769.584 471,946 Net {outgoingVincomlng rgsourcos {2.335,1221 39,276 other recognised gains and losses Revaluation of property investments 1,200,000 940.WO N?t movement in funds 11,135,122 979.276 Fund balances at 1 January 2021 4.250.335 3.271,059 Fund balances at 31 D•cèmbèr 2021 3.115.213 4.25D,335 Th8 Statemènt of financial activ((ies include5 all gains and losses recognised in the year. All incom8 and gxpenditure derive from continuing actiwties. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
GAMA TZEDAKA LIMITED BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notes Flxed assets Investment properties Investments 5,900,000 7,640,000 ID 5,900,001 7,640,001 Current a55ets Debtors Cash at bank and in hand 11 89.991 62,873 84,918 109,885 152.864 194.803 Creditors.. amounts falling du• within one year 13 1660,7841 11.172,3461 Net wrrgnt liabilities 1507,920) 1977,5431 Total ass•ts $S currènt Ilabllitl 5.392,081 6.662.458 Cr•dltors: amounts falllng du• •fter mDrn than or78 yèar 14 12,276,868) 12,412,123} Net assets 3,115.213 4.250.335 Incomè funds Unrestricted funds General unrestriGted fund5 Revaluation reserye 1.391,063 1,724,150 1,881,185 2.369,150 3,115.213 4,250,33S 3.115.213 4.250.335
GAMA TZEDAKA LIMITED BALANCE SHEET (CONTINUED) ASAT31 DECEMBER 2021 The company is entitled to the exemption from the audit requirement ¢ontsingd in section 477 of the Companitrs Act 2006. for the year onded 31 December 2021, although an audit has bèan carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 wfch respect to accounting records and the preparation of financial slalements. These financial statgments havè baén prepared in accordance with the provisions applIcae to companies subject to Ihe small companies regime. The financial statem8nts were approved by the Govemors on .......-................. ay vernor Company Reglstrat5on No. 01835501 10
GAMA TZEDAKA LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Notes Cash flows from operating actlvltlgs Cash generated fromllabsoTbed by) operations 18 156.5S4 {301.073) Investlng actlvltles Rental income reiVed 434,462 511.222 Mot ¢a$h gonoratod from Invgstlng activltles 434,462 511.222 Flnanclng actlvltles Rèpayment ol bank loans 1636,3801 1125.330) Not cash In flnanclng a¢tlYltl•s 1636,3801 (125,33D) Net IdecreaseJfincrea$e in cash and cash èqulval•nts 145.3641 84,819 Cash cash equivalents at beginning of year 81,073 13.7461 Cash and ca$h equivalents at end of y¢ar 35,709 81,073 Rolatlng to: Cash at bank and in hand Bank overdrafts induded in creditors payable within one year 62,873 109,885 127.1641 128,8121
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting poll¢les eharlty Information Gama Tzedaka Lin7iled Is a private company limited by gu8ranlee incorporated in England and Wales. The registered office 15 Foframe House. 2nd FlrK)r. 35-37 Brent Street, London. NW4 2EF. 1.1 Accounting convention The financial statements have been prepared in a¢¢ordance wfth the Companles Act 2006 and 'Accounts'ng and Reporting by Charities. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commenGing from 1 January 20191. The company is a Public Beneff( Entity as defined by FRS 102. The financial statements are Pfepar8d in sterling, which is the functional currency of the company. Monetary amounts in these financial 5tstemenls are rounded to the nearest £. The financial stateTnents have been prepad under the historical cost convention, Imodified to include the Tevaluation of freehold properbes and to in¢lude investmont properties and certain financial instrurnents at fair valuel. The prin¢ipal a¢counling policies adopted ara sèt out below. 1.2 Golng concern At the lime of approwng the financial statements, thg govemors havo a rea50n8b18 expectation that the company h8s adequate resourcès to witinue in operational existence for the forEseeable future. Thus the govemors continue lo adopt the gDing COnM b89is of accounts.ng in preparing the financial statements. 1.3 Charitsble funds Unrestricted ftjnds are available for use at the discrets.on of the governors in furtherance of their chafitable objectives. Funds held by the charity are all unrestricted. These being funds which can used in accordance with the charitablo objects al the discretion of the govemoTS. 1.4 Incomlng r8sourc¢s Income is recognised when thè company is legally entitled lo it aftèr any perforinanc8 conditions have been met, the amounts can be measured reliably. and il is probab that income will be received. Cash donations are recognised on rèceipt. Other donation8 are recognised once the company has been notffied of the d¢Mation, unless performance conditions require deferral of the amount. Income tax recoverable in rolatron to donations recoived under Gift Aid or deeds of covenant is regniSed at the time of the donalion. Legacies are recognised on receipt (* otherwise if the company has been notified of an impending distribubon. the amount is known, and r8C8iPt 18 expected. If the amunl is not known, the legacy is treated as contingènt asset. Investment income represen15 amounts receivable for rents and services. Inveslmenl income is recognised on the ComMenMent of and in accordance wilh a lease. adjusted for any incentives as required under FRS102. A IopertY is règarded as sold when significant risks and retums have been transferred to the buyer. For conditional exchanges. sales are recognised as the wnditions are satisfied. 12-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng pollcles IContlnu•d} 1.5 Re$our¢e$ expended Expenditure is recognised once there is a legal or conslruGb've obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classrfied by activity. The costs of each actlvity are made up of the 10181 of dired costs and shared costs, including support costs involved in undertaking èach activity. Direct costs attributable lo a 5ingl6 adivty are allocated direclly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportlDned between those activities on a basis consistent with the use of resources. Central stsff costs are allocated on th8 basis of lime spenl. and depreciation charges are allocated on the portion of the asset's use. Expenditure is recognised on an accruals basls as a Ilabilily is incurred. Charitable expendrture comprises thosè costs incurred by the charity in the dèlivery of its activities and seNices for its benef5darles. 11 includes both costs that can be allocated directly to such activities and those costs of an indire¢l nature necessary to support them. Other costs indude all costs involmng the public accountability of the charity 8nd its compliance regulation and good praCce. These include costs rdaling lo siatutory audit and professional fees. Grants payable represent donations paid to religious, educational and similar charities. and are recognised when payment is m8de by the charity. 1.6 Tangible fixed a55ets Tangible fixed assets are initially measured al cost and subsequently measvred at cost or valu8tion, net of depreciation and any impaimient losses. Tangible fixed assets are ststed al cost less depreuation. Depreciation is provided al rates calculated to write off the cost less estimated rasidual value of each asset over its expected useful life, as follows= Fixtures, fittings & equipment 33.33°A straight line The gain or loss arising on the disposal of an asset is detem)ined as the difference belween the sale proceeds and the caryng value of the asset. and is recognised in the ststement of financial activities. 1.7 Investment propertles Investment property, which is propety held to eam ntalS andlor for capttal appreciation, is initial Tecognised al cost. which includes the purchase cost and any directly attributsble expanditure. Subsequently it is rneasured at fair value al the reporting end d81e. The surplus or deficit on revaluation is recognised in the statement of financial activities. 1.8 Fixed asset investments A subsidiary is an entity ¢onlrolled by the charity. Control is the power to govem the financial and op8ratt.ng policies of the entity so as to obtain benefits from its activithes. 1.9 Cash and cash equivalents Cash anol cash equivalents include cash in hand. deposits held at call with banks, other short-tem liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowngs in currènt liabilities. 13-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accountlng policies IContlnued} 1.10 Flnanclal Instruments The company has elected to apply the provisions of Section 11 'Basic Finanaal Instruments, and Section 12 'Other Financial Instruments Is5ue5' of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes paty to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amount5 presented in the fin8nclal statements, when there is a legally enfoable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultsneousty. Bas1¢ flnan¢lal assets Basic financial assets, which include debtors and cash and bank balances. are initially measured at transaction price including Irarisa¢tion costs and are subsequently carried at amortised cosl using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value Df the future receipts discounted at a market rate of interèst. Financial assets classified as receivable within one year are not amortiS8d. 8asl¢ flnan¢lal Ilabllltles Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constilules a financing transaction, where the debt instnjment Is measured at the present value of the future payments discounled at a market rate of interest. Financial liabilities classified as payable within on& yèar are not amDrtised. Debt instruments are subsequently carried at amorbs8d cost. using the eff9¢tive interest rale rnethod. D•rncognition of Ainancial liabilities Financial liabilities are der8cognis8d when the companls cOntracal obligations expire OT are discharged c* can¢&lled. 1.11 Group accounts The financial statements present information about the tharity as an indiviual undertaking and not about its group. The charity and its subsidiary undertangS comprise a small group. The charity ha5 therefore taken advantage of Ihe exemptions provided by seclions 399 of the Compani85 Act 2006 not to prepare group accounts. Crfllcal a¢¢ountlng estlmates and judgements In the application of the company's accounting policies, the governors are required lo make judgements. estimates and assumptions about th8 carrying amount of assets 8nd liabilities that arè not readily apparent from other sources. The estimates and assoaated assumptions are based on historical experience ar)d other factors that are considtrred lo be relevant. Actual results may differ from these estimates. The e5tlrnales and undedying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in th8 p8riod in which the estimatè is revised where th8 revision affects only that period, or in the peri of the revision and future periods where the revision affeGts both cyrrenl and future periods. 14-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Investments 2021 2020 Rentsl income 434,462 511,222 Grants payable Charltsble aetlvltiès 2021 Charitable activities 2020 Grants to insbtutions18 grants).. l)ther 2,591,075 236,454 Included in the above were tharitable donations of £152,5 made to Achisomoch Aid Co Ltd {Reg- charity no. 2783871 for religious èducation and the relief of hardship and poverty and the gfft of a property. known as Units 8 & 9 Willow Centre, to another charity wsth the same govemors as this charity. Govgmors None of the governors lor any persons connectsd with Iheml r8ceived any remuneration or expanses during the year. Employo•s The average monthly number of ernployees during the year was-. 2021 Number 2020 Number Total There were no employees whose annual remuneration was more than £60.000. Oth•r 2021 2020 Audit¢ys' remuneration Auditors. fees for non-audtt work Interest on bank loans Other expenditure 3,600 1.800 110.897 62,212 3,240 5,280 110,777 116,195 178,509 235,492
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Oth•r Icontlnuedl Taxation The activities of Gama Tzedaka Limited are exempt from direct tsxation under Part 11 of the Corporation Tax Act 201D. Investment property 2021 Fair value Al 1 January 2021 Net gains or losses Ihrough fair value adjustments Other thanges 7,640,000 1.200,000 {2.940.0001 At 31 Dernber 2021 5.90Q.000 The fair value of the investment propety has been arrived at on the basis of a valuation carried out by a govèmor of the mpanY. The valuation was made on an open market value basis. Other changes f8presenl the transf8r of'units 8 & 9 Willow C8ntre' lo a connected charity 'Shirehall Tzedaka Company Limited, as a glft. The propertles are secured against the bank loans lo the charity. 10 Flxod ass•t Investment$ Unlisted Investments Cost or valuatlon At 1 January 2021 & 31 December 2021 Carrying amount At 31 December 2021 Al 31 December 2020 Flxed ass•t inYÈslments not carrl•d at market value The above investment is shown at cost. The charity owns the whole of the issued ordinary share capitsl of Southern Cross Propco 1 Limited. Southem Cross Propco 1 Limil8d owns lo0. of the issued ordinary share capital of St Oswalds House Limited. St Oswalds House Limited owns 10090 of the issued share capital Df Ashlands Limited. All the companies were dorniant throughout the year. 16
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 11 Dehtors 2021 2020 Amounts falling due wlthln on• y?ar.' Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued InMe 1.177 40.671 48,143 1.177 83.741 89,991 84,918 12 Loans and ov•rdrafts 2021 2020 Bank overdrafts Bank loans 27,164 2,412,123 28,812 3.048,503 2,439.287 3,077.315 Payable wK(hin one year Payable aftar on8 y8ar 162,419 2,276,868 665,192 2.412,123 Amounts included above which fall due after five years.. Payable by instalments Payabl@ oth8r than by instalments 221,011 1,610,000 1.831,011 The bng-tem) loans a secured on property investments. 13 Credltors: amounts falllng due wlthln one year 2021 2020 Notes Bank loans and overdrafts Amounts owed to Subsidiary undertakings Other creditors Accrua15 and deferred income 12 162,419 1.442 456.082 40.841 665.192 1,442 312,213 193.499 660,784 1,172,346 Included In other creditors is an amount of £197.723 12020 .' £59.6691 due to companies under common control with thls one, and £217.244 12020 .' £208,745) due to another charity with the same govemors, 0.0¢ts and purpose as this one. These loans are interest free and are rèpayable on demand. 17-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 14 Credltor8.' amounts falllng due after more than one year 2021 2020 Mote$ Bank loans 12 2,276,868 2,412,123 15 Covld-19 The Trustees have ck)sely monitored the Government guidance in response lo the Covid-19 Pandemlc and have implemented measures in line Governmental guidelines. The Trustees have a55essed the impact of Covid-19 on the company and conclud8 that th8r8 ar8 no ilèms r8sulting from the Covid-19 Pandemic which require disclosure at the balance sheet date. 16 Relat9d party tran$a¢tl¢)ns Transactions wlth related partieg During the year the company entered into the following transactions with related partie5'. The following amounts were oulstsnding at the reporting end date.. Amounts owèd to rolated partlas 2021 2020 Other relaled parties 456.082 268.414 Included in the above is £217.244 dufr to anothgr ¢harity with the same govemors, objects and purpose a5 this one. During the year the charity transfe*Ted a propety. known as Units 8 & 9 Willow Centre. to another charity with the same govemors as this charity. There were no other related party transactions during the year which Tequire disclosure. 17 Subsldlaries Details of the company's subsidiaries at 31 Decgmber 2021 are as follows.. Nam• of undortaklng Registered offl¢• Nature of bu5ine55 Class of shar•s h•ld % Held Dir•ct Indirect Ashlands Limited England and Wales Southern Cross Propco 1 England and Limited Wales St Oswalds House Llmrted England and Wales Dormant Ordinary 100 Dormant Ordinary 100 Dormant Ordinary 100 18-
GAMA TZEDAKA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 17 Subsldlarles (Continued) The aggregate capitsl and reserves and the result for the year of subsidiaries excluded from CDnsolidation wa5 as follows: Name of undertaking ProfiVILossl Capital and ResÈnJès Ashlands Limited Southem Cross Prop¢0 1 Limited St oswalds Hous8 Limit9d 1,002 8,986 277,100 18 Cash generated from opÈratlons 2021 2020 (Deficitysurpus for the year {2,335,1221 39.276 Adjustments for.. Investment income recognised in statement of financial activities Loss on disposal of tangible fixed assets {434,4621 2.940,000 {511,2221 Moveents in working capital-. Ilncreasel in debtors (Dacreasellincrease in creditors 15,0731 18,7891 117,057> 187,930 Cash generated fromllabsorbed by) op•ratSons 156.554 1301.073) 19 Analysis of changes In net Idebtllfunds At l January 2D21 Cash flows At 31 Doc8mber 2021 Cash at bank and in hand Bank ovèrdrafts 109,885 128,8121 147,0121 1.648 62,873 127,1641 81.073 145.3641 35,709 L08ns falling due within one year Loans falling due after more than one year 1636,3801 12,412.1231 501.125 135,255 1135,2551 {2,276.868> 12,967.4301 591.016 12,376,414 19-