REGISTERED CHARITY NUMBER: 327391
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 5 April 2023
for
Dr N K Shah Trust
Nielsens Chartered Accountants The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
Dr N K Shah Trust
Contents of the Financial Statements for the Year Ended 5 April 2023
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Statement of Financial Position | 6 | ||
| Statement of Cash Flows | 7 | ||
| Notes to the Statement of Cash Flows | 8 | ||
| Notes to the Financial Statements | 9 | to | 13 |
| Detailed Statement of Financial Activities | 14 |
Dr N K Shah Trust
Report of the Trustees
for the Year Ended 5 April 2023
The trustees present their report with the financial statements of the charity for the year ended 5 April 2023. 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. During the year, the charity made grants of £2,335,510 to The Jain Network, a registered charity in the UK, to assist it in its building project of constructing a Jain temple and community centre.
Investment performance
The charity's investments are managed by professional investment advisors and an independent broker.
The Charity does not lay down a particular target total return for the investment portfolio. Considering the current , economic climate, 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 inflationary pressures.
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, Dr N K Shah, the charity has been fortunate to receive a substantial donation from his estate in the ensuing year which shall be utilised for to achieve the aims of the charity in the foreseeable future, and to convert the existing loans to gifts.
The charity is in a sound financial position at the end of the financial year and since then, has made advances of over £1.8m to a UK charity, The Jain Network, 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.
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Dr N K Shah Trust
Report of the Trustees for the Year Ended 5 April 2023
FINANCIAL REVIEW
Reserves policy
The charity's policy is to maintain minimum reserves of £10,000 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.
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
1) All donations were received from members of the board of trustees, the significant ones being from the Estate of Late Dr N K Shah, from whom a legacy was received of £487,456.
2) Grants of £2,335,510 were made to The Jain Network, a registered charity in the UK, to assist it in its building project of constructing a Jain temple and community centre.
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
327391
Principal address
20, James Close Woodlands London NW11 9QX
Trustees
S N Shah L Shah A M Shah N Shah
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Dr N K Shah Trust
Report of the Trustees for the Year Ended 5 April 2023
REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner Nielsens Chartered Accountants The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
Approved by order of the board of trustees on 22 January 2024 and signed on its behalf by:
S N Shah - Trustee
Page 3
Independent Examiner's Report to the Trustees of Dr N K Shah Trust
Independent examiner's report to the trustees of Dr N K Shah Trust
I report to the charity trustees on my examination of the accounts of Dr N K Shah Trust (the Trust) for the year ended 5 April 2023.
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
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the ERROR - relevant professional body must be completed, which is one of the listed bodies.
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.
Dipakkumar Shah FCA
Nielsens Chartered Accountants The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
22 January 2024
Page 4
Dr N K Shah Trust
Statement of Financial Activities for the Year Ended 5 April 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Raising funds 4 Charitable activities 5 Conferences and meetings Religious Other Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
5.4.23 Unrestricted fund £ 824,157 611 824,768 16,775 35,187 2,335,510 600 2,388,072 (1,563,304 ) 2,083,739 520,435 |
5.4.22 Total funds £ 10,599 195 10,794 - - 215,751 1,241 216,992 (206,198) 2,289,937 2,083,739 |
|---|---|---|
CONTINUING OPERATIONS
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 5
Dr N K Shah Trust
Statement of Financial Position
5 April 2023
| Notes FIXED ASSETS Social investments 10 CURRENT ASSETS Debtors 11 Cash at bank CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds TOTAL FUNDS |
5.4.23 Unrestricted fund £ - - 520,434 520,434 1 520,435 520,435 520,435 520,435 520,435 |
5.4.22 Total funds £ 1,825,000 2,100 256,638 |
|---|---|---|
| 258,738 1 |
||
| 258,739 | ||
| 2,083,739 | ||
| 2,083,739 | ||
| 2,083,739 | ||
| 2,083,739 |
The financial statements were approved by the Board of Trustees and authorised for issue on 22 January 2024 and were signed on its behalf by:
S N Shah - Trustee
The notes form part of these financial statements
Page 6
Dr N K Shah Trust
Statement of Cash Flows
for the Year Ended 5 April 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Sale of heritage assets Interest 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 Cash and cash equivalents at the end of the reporting period |
5.4.23 £ (1,561,815 ) (1,561,815 ) 1,825,000 - 611 1,825,611 263,796 256,638 520,434 |
5.4.22 £ (209,994) (209,994) - (275,000) 195 (274,805) (484,799) 741,437 256,638 |
|---|---|---|
The notes form part of these financial statements
Page 7
Dr N K Shah Trust
Notes to the Statement of Cash Flows
for the Year Ended 5 April 2023
1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | ||
|---|---|---|
| Net expenditure for the reporting period (as per the Statement of Financial Activities) Adjustments for: Interest received Decrease/(increase) in debtors Decrease in creditors Net cash used in operations |
5.4.23 £ (1,563,304 ) (611) 2,100 - (1,561,815 ) |
5.4.22 £ (206,198) (195) (2,100) (1,501) |
| (209,994) |
2.
ANALYSIS OF CHANGES IN NET FUNDS
| At 6.4.22 | Cash flow | At 5.4.23 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 256,638 | 263,796 | 520,434 |
| 256,638 | 263,796 | 520,434 | |
| Total | 256,638 | 263,796 | 520,434 |
The notes form part of these financial statements
Page 8
Dr N K Shah Trust
Notes to the Financial Statements
for the Year Ended 5 April 2023
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.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
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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Dr N K Shah Trust
Notes to the Financial Statements - continued
for the Year Ended 5 April 2023
| 2. DONATIONS AND LEGACIES Gifts Donations Legacies 3. INVESTMENT INCOME Deposit account interest 4. RAISING FUNDS Raising donations and legacies Support costs Other trading activities Support costs Aggregate amounts 5. CHARITABLE ACTIVITIES COSTS Conferences and meetings Religious |
Direct Costs £ 51,913 - 51,913 |
Grant funding of activities (see note 6) £ - 2,335,510 2,335,510 |
5.4.23 £ 336,101 600 487,456 824,157 5.4.23 £ 611 5.4.23 £ 9,800 5.4.23 £ 6,975 16,775 Support costs (see note 7) £ (16,726) - (16,726) |
5.4.22 £ 9,999 600 - 10,599 5.4.22 £ 195 5.4.22 £ - 5.4.22 £ - - Totals £ 35,187 2,335,510 |
5.4.22 £ 9,999 600 - |
5.4.22 £ 9,999 600 - |
||
|---|---|---|---|---|---|---|---|---|
| 10,599 | ||||||||
| 5.4.22 £ 195 5.4.22 £ - 5.4.22 £ - - |
||||||||
| - | ||||||||
| 2,370,697 |
continued...
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Dr N K Shah Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2023
6. GRANTS PAYABLE
| GRANTS PAYABLE | ||
|---|---|---|
| 5.4.23 | 5.4.22 | |
| £ | £ | |
| Religious | 2,335,510 | 215,751 |
7. SUPPORT COSTS
| SUPPORT COSTS | |||
|---|---|---|---|
| Governance | |||
| Finance | costs | Totals | |
| £ | £ | £ | |
| Raising donations and legacies | - | - | 9,800 |
| Other trading activities | - | - | 6,975 |
| Other resources expended | - | 600 | 600 |
| Conferences and meetings | 49 | - | (16,726) |
| 49 | 600 | 649 |
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 5 April 2023 nor for the year ended 5 April 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 5 April 2023 nor for the year ended 5 April 2022.
9. STAFF COSTS
There were no staff costs for the year ended 5 April 2023 nor for the year ended 5 April 2022.
The average monthly number of employees during the year was as follows:
5.4.23 5.4.22
No employees received emoluments in excess of £60,000.
10. SOCIAL INVESTMENTS
| MARKET VALUE At 6 April 2022 Repayments in year At 5 April 2023 NET BOOK VALUE At 5 April 2023 At 5 April 2022 |
Loans £ 1,825,000 (1,825,000 ) - - 1,825,000 |
|---|---|
continued...
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Dr N K Shah Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2023
| 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other debtors 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors 13. MOVEMENT IN FUNDS At 6.4.22 £ Unrestricted funds General fund 2,083,739 TOTAL FUNDS 2,083,739 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 824,768 TOTAL FUNDS 824,768 Comparatives for movement in funds At 6.4.21 £ Unrestricted funds General fund 2,289,937 TOTAL FUNDS 2,289,937 |
5.4.23 £ - 5.4.23 £ (1) Net movement in funds £ (1,563,304 ) (1,563,304 ) Resources expended £ (2,388,072 ) (2,388,072 ) Net movement in funds £ (206,198) (206,198) |
5.4.22 £ 2,100 5.4.22 £ (1) At 5.4.23 £ 520,435 520,435 Movement in funds £ (1,563,304 ) (1,563,304 ) At 5.4.22 £ 2,083,739 2,083,739 |
|---|---|---|
continued...
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Dr N K Shah Trust
Notes to the Financial Statements - continued for the Year Ended 5 April 2023
13. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 10,794 10,794 |
Resources Movement expended in funds £ £ (216,992) (206,198) (216,992) (206,198) |
|---|---|---|
14. 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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Dr N K Shah Trust
| INCOME AND ENDOWMENTS Donations and legacies Gifts Donations Legacies Investment income Deposit account interest Total incoming resources EXPENDITURE Charitable activities Other operating leases Travel & fund raising events Grants to institutions Support costs Management Telephone, Internet and IT Postage and stationery Finance Bank charges Governance costs Auditors' remuneration for non audit Total resources expended Net expenditure |
Detailed Statement of Financial Activities for the Year Ended 5 April 2023 work |
5.4.23 £ 336,101 600 487,456 824,157 611 824,768 4,435 47,478 2,335,510 2,387,423 - - - 49 600 2,388,072 (1,563,304 ) |
5.4.22 £ 9,999 600 - 10,599 195 10,794 - - 215,751 215,751 211 342 553 88 600 216,992 (206,198) |
|---|---|---|---|
This page does not form part of the statutory financial statements
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