Round Island Ltd - Charities report - 22.2

REGISTERED COMPANY NUMBER: 08331898 (England and Wales)

REGISTERED CHARITY NUMBER: 1151474

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

ROUND ISLAND LTD

Page

Reference and Administrative Details

1

Report of the Trustees

2

Statement of Trustees' Responsibilities

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Statement of Financial Position

6

to

7

Notes to the Financial Statements

8

to

14

TRUSTEES

D Klein

I Reich

Mrs M Reich

REGISTERED OFFICE

16E Manor Road

Stamford Hill

London

N16 5SA

REGISTERED COMPANY NUMBER

08331898 (England and Wales)

REGISTERED CHARITY NUMBER

1151474

INDEPENDENT EXAMINER

Venitt and Greaves

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 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 principal activities of the charitable company in the year under review were that of the advancement of education and religious practice in accordance with the teachings of the Orthodox Jewish faith,and the relief of poverty.

The financial results of the Charitable Company's activities for the year ended 31 December 2021 are fully reflected in the attached financial statements together with the notes thereon.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aim and objectives and in planning the charity's future activities. The aims of the charitable company for the public benefit are detailed in the Objectives and Activities section of the report.

ACHIEVEMENT AND PERFORMANCE

Investment performance

The charity received rental income of £242,824 (2020 - £256,217) during the year under review.

FINANCIAL REVIEW

Principal funding sources

The charity is funded by rental income from it's investment properties.

Reserves policy

It is the policy of the charity to maintain unrestricted funds, which are free reserve of the Charity, at a level which the Trustees think appropriate considering the future commitments of the Charity and the likely administrative costs of the charity next year.

FUTURE PLANS

No change in future plan is envisaged.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, its memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

It is not currently the intention of the trustees of the charity to appoint new trustees. Should this situation change in the future, the trustees will apply suitable recruitment and training procedures.

Related parties

The transaction with related parties is disclosed in the notes to the financial statement wherever necessary.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Approved by order of the board of trustees on 29 September 2022 and signed on its behalf by:

I Reich - Trustee

The trustees (who are also the directors of Round Island Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent examiner's report to the trustees of Round Island Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

M A VENITT

A. C. A

Venitt and Greaves

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

29 September 2022

31.12.21

31.12.20

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

242,824

-

242,824

256,217

EXPENDITURE ON

Raising funds

3

67,320

-

67,320

70,096

Other

1,605

-

1,605

1,428

Total

68,925

-

68,925

71,524

NET INCOME

173,899

-

173,899

184,693

RECONCILIATION OF FUNDS

Total funds brought forward

978,551

224,460

1,203,011

1,018,318

TOTAL FUNDS CARRIED FORWARD

1,152,450

224,460

1,376,910

1,203,011

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

31.12.21

31.12.20

Notes

£

£

FIXED ASSETS

Tangible assets

8

540

635

Investments

Investments

9

9

9

Investment property

10

3,418,935

3,418,935

3,419,484

3,419,579

CURRENT ASSETS

Debtors

11

429,406

398,966

Cash at bank

194,591

45,498

623,997

444,464

CREDITORS

Amounts falling due within one year

12

(1,031,571

)

(1,026,032

)

NET CURRENT ASSETS

(407,574

)

(581,568

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,011,910

2,838,011

CREDITORS

Amounts falling due after more than one year

13

(1,635,000

)

(1,635,000

)

NET ASSETS

1,376,910

1,203,011

FUNDS

17

Unrestricted funds

1,152,450

978,551

Restricted funds

224,460

224,460

TOTAL FUNDS

1,376,910

1,203,011

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were authorized for issue and approved by the Board of Trustees and authorised for issue on 29 September 2022 and were signed on its behalf by:

I Reich - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from corporation 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.

2.	INVESTMENT INCOME

31.12.21

31.12.20

£

£

Rents received

242,824

256,217

3.	RAISING FUNDS

Investment management costs

31.12.21

31.12.20

£

£

Management commission

6,098

6,301

Property repairs

6,724

1,819

Light and heat

386

272

Insurance

8,042

15,131

Letting fees

805

-

Legal and professional fees

5,034

924

Postage and stationery

25

-

Depreciation

95

112

Interest payable and similar charges

40,111

45,537

67,320

70,096

4.	SUPPORT COSTS

Information

Governance

Finance

technology

costs

Totals

£

£

£

£

Other resources expended

348

144

1,113

1,605

5.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.21

31.12.20

£

£

Depreciation - owned assets

95

112

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

256,217

-

256,217

EXPENDITURE ON

Raising funds

70,096

-

70,096

Other

1,428

-

1,428

Total

71,524

-

71,524

NET INCOME

184,693

-

184,693

RECONCILIATION OF FUNDS

Total funds brought forward

793,858

224,460

1,018,318

TOTAL FUNDS CARRIED FORWARD

978,551

224,460

1,203,011

8.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 January 2021 and 31 December 2021

1,086

DEPRECIATION

At 1 January 2021

451

Charge for year

95

At 31 December 2021

546

NET BOOK VALUE

At 31 December 2021

540

At 31 December 2020

635

9.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST LESS IMPAIRMENT

At 1 January 2021 and 31 December 2021

9

NET BOOK VALUE

At 31 December 2021

9

At 31 December 2020

9

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Peaktop Investments Ltd

Registered office: inside United Kingdom

Nature of business: Property trading

%

Class of share:

holding

Ordinary

45

31.7.21

31.7.20

£

£

Aggregate capital and reserves

250,901

199,335

Profit for the year

51,546

50,714

10.	INVESTMENT PROPERTY

£

COST LESS IMPAIRMENT

At 1 January 2021

and 31 December 2021

3,418,935

NET BOOK VALUE

At 31 December 2021

3,418,935

At 31 December 2020

3,418,935

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

4,885

6,745

Amounts owed by participating interests

392,221

392,221

Prepayments

32,300

-

429,406

398,966

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

VAT

14,866

9,326

Other creditors

1,006,105

1,006,106

Deposit payable

9,500

9,500

Accrued expenses

1,100

1,100

1,031,571

1,026,032

13.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans (see note 14)

1,635,000

1,635,000

14.

LOANS

An analysis of the maturity of loans is given below:

31.12.21

31.12.20

£

£

Amounts falling due between two and five years:

Bank loans - 2-5 years

1,635,000

1,635,000

15.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.21

31.12.20

£

£

Bank loans

1,635,000

1,635,000

Bank loan is secured by a first charge over charity's investment properties and bear interest at variable rates.

16.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.12.21

31.12.20

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

£

£

£

£

Fixed assets

540

-

540

635

Investments

3,194,484

224,460

3,418,944

3,418,944

Current assets

623,997

-

623,997

444,464

Current liabilities

(1,031,571

)

-

(1,031,571

)

(1,026,032

)

Long term liabilities

(1,635,000

)

-

(1,635,000

)

(1,635,000

)

1,152,450

224,460

1,376,910

1,203,011

17.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.21

in funds

31.12.21

£

£

£

Unrestricted funds

General fund

978,551

173,899

1,152,450

Restricted funds

Revaluation Reserve

224,460

-

224,460

TOTAL FUNDS

1,203,011

173,899

1,376,910

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

242,824

(68,925

)

173,899

TOTAL FUNDS

242,824

(68,925

)

173,899

Comparatives for movement in funds

Net

movement

At

At 1.1.20

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

793,858

184,693

978,551

Restricted funds

Revaluation Reserve

224,460

-

224,460

TOTAL FUNDS

1,018,318

184,693

1,203,011

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

256,217

(71,524

)

184,693

TOTAL FUNDS

256,217

(71,524

)

184,693

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.1.20

in funds

31.12.21

£

£

£

Unrestricted funds

General fund

793,858

358,592

1,152,450

Restricted funds

Revaluation Reserve

224,460

-

224,460

TOTAL FUNDS

1,018,318

358,592

1,376,910

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

499,041

(140,449

)

358,592

TOTAL FUNDS

499,041

(140,449

)

358,592

18.	RELATED PARTY DISCLOSURES

During the year under review, the charity had loan outstanding receivable of £392,221 (2020 - £392,221) from associate company, Peaktop Investments Ltd.