**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.
Page 1
**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
Page 2
**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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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
Page 3
**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
Page 7
**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...
Page 8
**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...
Page 9
**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...
Page 10
**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.
Page 11
**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
Page 12