REGISTERED CHARITY NUMBER: 327291
Report of the Trustees and
Financial Statements for the Year Ended 5 April 2021
for
The Dr N K Shah Trust
Nielsens The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
The Dr N K Shah Trust
Contents of the Financial Statements for the Year Ended 5 April 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Statement of Financial Position | 5 | ||
| Statement of Cash Flows | 6 | ||
| Notes to the Statement of Cash Flows | 7 | ||
| Notes to the Financial Statements | 8 | to | 11 |
| Detailed Statement of Financial Activities | 12 |
The Dr N K Shah Trust
Report of the Trustees
for the Year Ended 5 April 2021
The trustees present their report with the financial statements of the charity for the year ended 5 April 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's aims are to provide for advancement of education and religion; and the relief of poverty, having been established by a trust deed on 6 September 1986.
Public benefit
Activities undertaken to further public benefit.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The charity continues to provide human resources, funding and guidance to charities with similar objectives.
Investment performance
The charity's investments are managed by professional investment advisors and an independent broker, Tilney.
The Charity does not lay down a particular target total return for the investment portfolio. Considering the current healthcare crisis, the trustees are satisfied with the investment performance and hope for a recovery to previous levels.
Internal and external factors
It is not expected that the charity will be significantly impacted by any factors other than the economical downturn due to the current pandemic.
FINANCIAL REVIEW
Financial position and chairman's report
The trust continues to promote its aims with the co-operation of UK charities such as The Jain Network, Jain Samaj Europe, Jain Sangha of Europe, Ahimsa for Quality of Life, Jain Academy, World Council of Jain Academies and interfaith organisations. The trustees have attended relevant national and international conferences/meetings and have made donations for the relief of poverty, religious education and to places of worship.
Following the demise of a trustee during the year, Mrs B N Shah, the charity has been fortunate to receive a substantial donation from her estate of £1.3m which shall be utilised for to achieve the aims of the charity in the foreseeable future.
The charity is in a sound financial position at the end of the financial year and since then, has made advances of over £1m to a UK charity to assist it in developing a landmark community and religious building in North London.
Principal funding sources
The charity relies on funding from its trust board to meet the objectives of the charity.
Investment policy and objectives
In accordance with the charity's trust deed, trustees have the power to invest in such investments, and securities as they seem fit, but only after taking expert advice.
Reserves policy
The charity's policy is to maintain minimum reserves of £25,000 to maintain the charity 's annual running costs and to enable regular grant funding. It is not the Trustees' policy to maintain significant reserves of income. Grants are made to utilise the income from investments received in the year. There has been no material change in the Trustees' policy since last year.
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The Dr N K Shah Trust
Report of the Trustees for the Year Ended 5 April 2021
FUTURE PLANS
The trust's future plan is to work in the most efficient and effective way towards achieving its objectives mainly through its grant-making policy.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Recruitment and appointment of new trustees
The trustees have the right to nominate new trustees. Additional trustees may be appointed at any time, but the total number shall not be less than three or more than seven.
Induction and training of new trustees
On appointment, each trustee is given, in the view of the board, sufficient training and has sufficient knowledge of their specific field to understand the nature of the charity and is fully compliant with the charity's current view of its progression and given a copy of the UK Charity Commission's publication 'The Essential Trustee: what you need to know and what you need to do' and is expected to follow the guidelines as updated.
Related parties
All donations were received from members of the board of trustees, the significant ones being from the Estate of Mrs B N Shah, and from Dr N K Shah.
Risk management
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks and to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
327291
Principal address
20, James Close Woodlands London NW11 9QX
Trustees
Dr N K Shah MBE Dr S N Shah Mrs L A Shah Dr A M Shah
Independent Examiner
Nielsens The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
Approved by order of the board of trustees on 19 January 2022 and signed on its behalf by:
Dr N K Shah MBE - Trustee
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Independent Examiner's Report to the Trustees of The Dr N K Shah Trust
Independent examiner's report to the trustees of The Dr N K Shah Trust
I report to the charity trustees on my examination of the accounts of The Dr N K Shah Trust (the Trust) for the year ended 5 April 2021.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Nielsens The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
19 January 2022
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The Dr N K Shah Trust
Statement of Financial Activities
for the Year Ended 5 April 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Charitable activities 4 Religious Other Total Net gains/(losses) on investments NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD CONTINUING OPERATIONS |
5.4.21 Unrestricted fund £ 50,649 10,498 61,147 40,000 9,428 49,428 617,184 628,903 1,661,130 2,290,033 |
5.4.20 Total funds £ 1,350,597 6,482 1,357,079 1,317 8,853 10,170 (34,016) 1,312,893 348,236 1,661,129 |
|---|---|---|
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 4
The Dr N K Shah Trust
Statement of Financial Position
5 April 2021
| Notes FIXED ASSETS Investments Investments 8 Social investments 9 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 10 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 12 Unrestricted funds TOTAL FUNDS |
5.4.21 Unrestricted fund £ - 1,550,000 1,550,000 741,437 (1,500) 739,937 2,289,937 2,289,937 2,289,937 2,289,937 |
5.4.20 Total funds £ 1,571,758 - 1,571,758 94,754 (5,383) 89,371 1,661,129 1,661,129 1,661,129 1,661,129 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 19 January 2022 and were signed on its behalf by:
N K Shah MBE - Trustee
The notes form part of these financial statements
Page 5
The Dr N K Shah Trust
Statement of Cash Flows
for the Year Ended 5 April 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of fixed asset investments Purchase of social investments Sale of fixed asset investments Interest received Dividends received Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 2 Cash and cash equivalents at the end of the reporting period 2 |
5.4.21 £ 9,614 9,614 - (1,550,000 ) 2,178,653 376 10,122 639,151 648,765 92,672 741,437 |
5.4.20 £ 1,333,439 1,333,439 (1,293,278 ) - (23,727) 465 6,017 (1,310,523 ) 22,916 69,756 92,672 |
|---|---|---|
The notes form part of these financial statements
Page 6
The Dr N K Shah Trust
Notes to the Statement of Cash Flows
for the Year Ended 5 April 2021
| 1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 5.4.21 5.4.20 £ £ Net income for the reporting period (as per the Statement of Financial Activities) 628,903 1,312,893 Adjustments for: (Gain)/losses on investments (617,184) 34,016 Interest received (376) (465) Dividends received (10,122) (6,017) Unrealised losses/investment valuation 10,194 (10,289) (Decrease)/increase in creditors (1,801) 3,301 Net cash provided by operations 9,614 1,333,439 2. ANALYSIS OF CASH AND CASH EQUIVALENTS 5.4.21 5.4.20 £ £ Notice deposits (less than 3 months) 741,437 94,754 Overdrafts included in bank loans and overdrafts falling due within one year - (2,082) Total cash and cash equivalents 741,437 92,672 3. ANALYSIS OF CHANGES IN NET FUNDS |
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 5.4.21 5.4.20 £ £ Net income for the reporting period (as per the Statement of Financial Activities) 628,903 1,312,893 Adjustments for: (Gain)/losses on investments (617,184) 34,016 Interest received (376) (465) Dividends received (10,122) (6,017) Unrealised losses/investment valuation 10,194 (10,289) (Decrease)/increase in creditors (1,801) 3,301 Net cash provided by operations 9,614 1,333,439 2. ANALYSIS OF CASH AND CASH EQUIVALENTS 5.4.21 5.4.20 £ £ Notice deposits (less than 3 months) 741,437 94,754 Overdrafts included in bank loans and overdrafts falling due within one year - (2,082) Total cash and cash equivalents 741,437 92,672 3. ANALYSIS OF CHANGES IN NET FUNDS |
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 5.4.21 5.4.20 £ £ Net income for the reporting period (as per the Statement of Financial Activities) 628,903 1,312,893 Adjustments for: (Gain)/losses on investments (617,184) 34,016 Interest received (376) (465) Dividends received (10,122) (6,017) Unrealised losses/investment valuation 10,194 (10,289) (Decrease)/increase in creditors (1,801) 3,301 Net cash provided by operations 9,614 1,333,439 2. ANALYSIS OF CASH AND CASH EQUIVALENTS 5.4.21 5.4.20 £ £ Notice deposits (less than 3 months) 741,437 94,754 Overdrafts included in bank loans and overdrafts falling due within one year - (2,082) Total cash and cash equivalents 741,437 92,672 3. ANALYSIS OF CHANGES IN NET FUNDS |
|---|---|---|
| 1,333,439 | ||
| 5.4.20 £ 94,754 (2,082) |
||
| 92,672 | ||
| At 6.4.20 | Cash flow | At 5.4.21 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 94,754 | 646,683 | 741,437 |
| Bank overdraft | (2,082) | 2,082 | - |
| 92,672 | 648,765 | 741,437 | |
| Total | 92,672 | 648,765 | 741,437 |
The notes form part of these financial statements
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The Dr N K Shah Trust
Notes to the Financial Statements
for the Year Ended 5 April 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The Accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these Accounts. The Trust meets the definition of a public benefit entity under FRS 102.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Fixed asset investments
Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the mid-market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Charity does not acquire or use put options, derivatives or other complex financial instruments.
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the statement of financial activities.
continued...
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The Dr N K Shah Trust
Notes to the Financial Statements - continued
for the Year Ended 5 April 2021
| 2. DONATIONS AND LEGACIES Gifts Donations Gift aid 3. INVESTMENT INCOME Other fixed asset invest - FII Deposit account interest 4. CHARITABLE ACTIVITIES COSTS Religious 5. GRANTS PAYABLE Religious 6. SUPPORT COSTS Management £ Other resources expended 9,407 7. TRUSTEES' REMUNERATION AND BENEFITS |
5.4.21 £ (1) 40,650 10,000 50,649 5.4.21 £ 10,122 376 10,498 5.4.21 £ 40,000 Finance £ 21 |
5.4.20 £ 1,300,597 40,000 10,000 |
5.4.20 £ 1,300,597 40,000 10,000 |
5.4.20 £ 1,300,597 40,000 10,000 |
|
|---|---|---|---|---|---|
| 1,350,597 | |||||
| 5.4.20 £ 6,017 465 6,482 Grant funding of activities (see note 5) £ 40,000 5.4.20 £ 1,317 Totals £ 9,428 |
5.4.20 £ 6,017 465 |
||||
| 6,482 | |||||
| 5.4.20 £ 1,317 |
|||||
| Totals £ 9,428 |
|||||
There were no trustees' remuneration or other benefits for the year ended 5 April 2021 nor for the year ended 5 April 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 5 April 2021 nor for the year ended 5 April 2020.
continued...
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The Dr N K Shah Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2021
8. FIXED ASSET INVESTMENTS
There were no investment assets outside the UK.
Losses on investments, all in unrestricted funds, include £10,289 in respect of revaluation at the balance sheet date.
Net additions, during the year were £1,303,567.
9. SOCIAL INVESTMENTS
| MARKET VALUE New in year NET BOOK VALUE At 5 April 2021 At 5 April 2020 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 11) Trade creditors Other creditors 11. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank overdrafts 12. MOVEMENT IN FUNDS At 6.4.20 £ Unrestricted funds General fund 1,661,130 TOTAL FUNDS 1,661,130 |
5.4.21 £ - - 1,500 1,500 5.4.21 £ - Net movement in funds £ 628,807 628,807 |
Loans £ 1,550,000 |
|
|---|---|---|---|
| 1,550,000 | |||
| - | |||
| 5.4.20 £ 2,082 1 3,300 5,383 5.4.20 £ 2,082 At 5.4.21 £ 2,289,937 |
|||
| 2,289,937 |
continued...
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The Dr N K Shah Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2021
12. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 61,147 61,147 |
Resources expended £ (49,524) (49,524) |
Gains and Movement losses in funds £ £ 617,184 628,807 617,184 628,807 |
Gains and Movement losses in funds £ £ 617,184 628,807 617,184 628,807 |
|---|---|---|---|---|
| 628,807 |
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS |
At 6.4.19 £ 348,236 348,236 |
Net movement in funds £ 1,312,893 1,312,893 |
At 5.4.20 £ 1,661,129 |
|---|---|---|---|
| 1,661,129 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 1,357,079 1,357,079 |
Resources expended £ (10,170) (10,170) |
Gains and losses £ (34,016) (34,016) |
Movement in funds £ 1,312,893 |
|---|---|---|---|---|
| 1,312,893 |
13. RELATED PARTY DISCLOSURES
All donations were received from members of the board of trustees, the significant ones being from the Estate of Mrs B N Shah, and from the, Dr N K Shah.
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The Dr N K Shah Trust
| Detailed Statement of Financial Activities for the Year Ended 5 April 2021 INCOME AND ENDOWMENTS Donations and legacies Gifts Donations Gift aid Investment income Other fixed asset invest - FII Deposit account interest Total incoming resources EXPENDITURE Charitable activities Grants to institutions Support costs Management Travel Light and heat Telephone, Internet and IT Postage and stationery Sundries Library and subscriptions Finance Bank charges Governance costs Auditors' remuneration Total resources expended Net income before gains and losses Realised recognised gains and losses Realised gains/(losses) on fixed asset investments Net income |
5.4.21 £ (1) 40,650 10,000 50,649 10,122 376 10,498 61,147 40,000 5,149 1,774 1,455 300 729 - 9,407 21 - 49,428 11,719 606,895 618,614 |
5.4.20 £ 1,300,597 40,000 10,000 1,350,597 6,017 465 6,482 1,357,079 1,317 1,741 1,047 2,601 685 364 312 6,750 303 1,800 10,170 1,346,909 (23,727) 1,323,182 |
|---|---|---|
This page does not form part of the statutory financial statements
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