Company number.. 03031674 (England and Wales) Charity number: 1048752 The Traidcraft Exchange (A Company Limited by Guarantee) Report and Flnancial Statements For the Year Ended 31 March 2024 The Traidcraft Exchange (A Company Limited by Guarantee) CONTENTS Page Trustees, Report including the Strategic Report Independent Auditors, Report 14-17 Consolidated Statement of Financial Activities 18 Consolidated Balance Sheet 19 Charitable Company Balance Sheet 20 Consolidated Cash Flow Statement 21 Notes to Ihe Financial Statements 22-46 The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also the Directors of the charity for the purposes of company law) presenl their annual report and audited financial statements of The Traidcraft Exchange for the year ended 31 March 2024. The trustees confirm that the annual report and financial statements of the company comply with the currenl statutory requirements, the requirements of the charitable company's governing document and the provisions of the statement of Recommended Practice ISORP) applicable lo charilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) The financial statements comprise the accounts of the Traidcraft Exchange and Traidcraft Services India Private Limited, a subsidiary of Traidcraft Exchange. In these accounts °charity" means Traidcraft Exchange or the charitable group comprising The Traidcraft Exchange and Traidcraft Services India Private Limited. In 2022, Traidcraft Exchange rebranded to Transform Trade to better communicate who we are and what we do. In this report however, we will continue lo use the legal name of Traidcraft Exchange. Since the group and the charity qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been omitted. OBJECTIVES AND ACTIVITIES Trade has the potential lo generate wealth, support livelihoods and create lasting solutions to poverty. However most mainstream trade relies on cheap labour and assumes unlimited natural resources. It is not fair or sustainable and urgently needs to be transformed. Traidcraft Exchange challenges injustice in trade and works with poor and vulnerable people to help them get a fair share of the rewards. With the UK government's renewed focus on trade, and the Sustainable Development Goals calling for businesses to play a role in ending poverty, there has never been a grealer opportunity lo change trade for good. Our vlslon and purpose: We support producers and their businesses which show that an alternative way to trade is possible. Within an unjust and broken trading system, we stand with the workers, farmers and social entrepreneurs who are transforming trade. We act as a resource partner. accompanier, influencer, networker and ally. We worft at local, national and international levels, focusing on Fashion, Tea and Farming. We have a vision of trade which values all people and regenerates our fragile earth. Traidcfaft Exchange was founded on Christian principles. Our deep-rooted belief in justice for the poor and the value and dignity of all human beings is grounded in the Christian failh. We work with people of all faiths and none, and our values resonate far beyond the Christian community. Traidcraft Exchange was set up over thirty-fwe years ago to work in parlnership with Traidcraft plc, demonstrating that alternatives to mainstream trade are possible. It operates for the public benefil through the charity's following purposes: 1) To support producers in vulnerable communities to grow their businesses, find markets and engage in local and international trade helping people to build the skills, knowledge and capacity to work their way out of poverty. 2) To raise public awareness of injustice and build public support for trade justice and corporate accountability through policy advocacy and campaigning. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Maln achievements of the charity This year marked a significant milestone as we navigated the first full year since our founding partner, Traidcraft plc, went into administration. The fact that we have not only remained operational but are in a secure position is a testament to our resilience. Yet. our achievements go far beyond survival, encompassing hard-won victories and valuable learning. In the wake of the closure of Traidcraft, we launched a Producer Fund to support producers who would sland to lose out in a world where ethical trade is under threat. This has been a big part of our year and we've been encouraggd by the relationships we￿e buitt and the impact this grant making and partnership work has had. We were also able to share the findings from our pilot Participatory Grant Making work in Kenya through the RINGO network. Our aim was to demonstrate practically what it can mean to shift decision-making power away from grant- making organizations and to the people and places that will benefit from the money. The project evaluation showed increases in income and produclivity as our work often does, but also nolable impacts on reported self-confidence, influence and network building. The results and learning from the pilot were documented in a learning resource which has been shared widely with others in the development space. We were delighted to share these results and learnings on a prominent stage. The achievements and learnings from both the Producer Fund and the PGM work in Kenya have helped us hone and refine our strategic direction and set a plan to take us up to 2030. We're committed to grant making to shift power to producer businesses and groups in the global south partnering with them to achieve long-term impact. The work of 23124 has been essential in laying the foundations and build a knowledge base to allow us lo move forward in this direction. Internally, we made progress in developing a more equitable and inclusive workplace. Building on last year's cultural change efforts, we continued Equity, Diversity, and Inclusion (EDI) training and coaching, enhancing staff engagement and underslanding. A comprehensive all-staff EDI survey provided valuable insights that will shape actionable and measurable plans for the future. Amidst these successes, we also faced tough decisions. The significant loss of income following the closure of Traidcraft, coupled with the global cost-of-living crisis, required difficult cost-cutting measures to secure our future. A round of redundancies in Autumn 2023 was a challenging but necessary step. With a leaner cosl base, we are now well-positioned to move forward wilh confidence and purpose. The key highlights of 23124 include.. International development programmes and pollcy This year, we made significant strides across our international programmes and policy initiatives, driving impactful change in small-scale agriculture, garments, tea, and broader policy and advocacy work. By aligning our interventions with organizational strategy, we worked with local partner organizations to support marginalized communities and tackled systemic barriers to fair trade and sustainable development. Our efforts were strengthened by Ihe dedication of our partners, whose collaboration remains ￿ntral to our mission of achieving a just and sustainable trade system. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Small Scale A ricu Iture ortfolio Asla Empowering Women's Civil Society Organisations (CSOS) to ensure Good Governance Project: This projecl is being implemented in rural areas of 5 districts in Bangladesh where poverty is high.. Faridpur, Jashore and Khulna in the south, and Panchagarh and Thakurgaon in the north. It is working with 15,000 women - building community institutions of grassroot women to ensure collective Vol￿ and developing their capacity to advocate for their rights. It is also sensitizing government officials, communily leaders and the larger community to promote gender equality and empower women. The project established sustainable business model managed by women and helped lo reduce gender-based economic disparities. Women Community Stores functioning across the project localions has impacted collective ownership. safe spaces, employment generation, leadership and successful implementation of sustainable businesses by women. Shifting the power to grassroots, communities through strengthening famier-led CSOS and improving thelr engagement In the sustainable development process (SWABOL) The project started in April 2023 through a Traidcraft Exchange led consortium of six NGOS in 33 disadvantaged upazialas {sub-districts) of 13 districts across Bangladesh. The work focuses on enhancing human and social capital and strengthening Smallholder Farmer-led Civil Society Organizations (FSFCSOS) as independent inslitulions and actors of good governance to promote inclusive and sustainable development. The project targets 46 FSFCSOS and 1,580 Local Farmer Organizations along with 50,000 parlicipants (500kn women, 7./0 elhnic minorities and 5% persons with disabilities). Regislration of these FSFCSOS is under process which will ensure legal entity and conlribute to their sustainability in the long run. Pahadiya Sammridhl {Godda, Jharkhandl: This year, the Pahadiya Samridhi project significantly improved crop production for participating households. Around 2,000 households adopted better agricultural practices like seed treatment, leading lo improved germination and pest management, which boosted yields. Additionally, 600 households established kitchen gardens, enhancing their overall nutrition.To empower farmers economically, Cluster Level Federations helped aggregate and market key crops. Over 1,000 farmers, supported by the Pahadiya women's federation. secured a 25-30°/o price increase through collective marketing and better trade negotiations. Five operational seed banks across 90 villages provided timely, affordable seed access, reducing reliance on high-interest loans. Following the successful completion of Phase I, a proposal for Phase 11, Pahadiya Swalaniban. was approved by the OAK Foundation. This $600,000 initiative will run from June 2024 to May 2027, building on the project's impact. Cllmate resilient sustainable Ilvelihoods for female small holder farmers, (Blrbhum, W8St Bengal): Funded by the Halcrow Foundation, this project supported 2,500 vulnerable families in Birbhum, West Bengal, by improving food security, diversifying livelihoods, and building resilience through social safety nets. Throughout the year, we worked with women's groups to strengthen governance, promote micro-savings, and pilot innovative agricultural practices. Partnerships with government departments secured financial and in-kind support for agricultural and waler resource development. By the project's conclusion in August 2023, it had increased household incomes, enhanced food security, and established 80 Women Livelihood Committees to sustain its impact. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Contlnued) FOR fHE YEAR ENDED 31 MARCH 2024 Africa Participatory Grant Maklng: In line with our commitment to locally led development, we adVan￿d the Participatory Grant Making {PGM) pilot, promoting community-driven decision-making and shifting power to local organizations. In partnership with the Kenya Community Development Foundation (KCDF), we supported six community-based organizations (CBOS) in Meru and Kitui, Kenya, monitoring progress, addressing challenges, and disbursing funds for project completion. By maintaining the integrity of established structures and adopting a facilitative approach that empowers CBO leadership lo make key decisions, we enhanced collaboration. building on our strong track record with local partners and made progress towards project sustainability. Promoting the Incluslon of People with Dlsabllities in Cocoa, Coffee, and Palm Oil (CCP) Value Chains: From September 2019 to December 2022, this project provided sustainable livelihood opportunities to 1,228 people with disabilities and 557 farmers and micro-enlrepreneurs across cocoa, coffee, and palm oil value chains. Building on this success, the CCP transition project was launched in 2023124, focusing on cocoa and coffee value chains in Tanzania's Rungwe and Kyela districts. By supporting 750 beneficiaries across 30 economlc groups, the project worked lo increase incomes within these communities. People, Prosperlty, Planet: Reduced poverty and climate resilience for coastal communStles in Tanzanla: (Aprll 2022 to March 2025) This project engaged 2,548 participants across 287 groups in Tanzania to adopt climale-resilient practices and markel-driven approaches in honey, sunflower, fruit trees, poultry, and vegetable value chains. Efficient cookstoves were insta Iled in 23 villages, significantly reducing firewood consumption Chole Secondary School, for instance, cul usage from 24 logs to just 4 logs per day. Households are replicating this technology, culling biomass fuel use by 50_70010. The project also introduced cage beehive technology, making beekeeping accessible to people with disabilities. Increased incomes have enabled participants to send children to school, expand fams, and improve housing, overall transforming lives across the region. Agriculture and trade policy This year, we produced a joint paper that gives an overview of the ways in which the trade system interacts with agricultural production. This established us as having expertise on the issue, strengthening our outreach with decision-makers. The paper highlighted key focus areas, including the right to seeds and the effecl of green trade measures on small-scale farmers, We collaborated with an MP to table an amendment lo the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP) Bill, aiming to exempt the 1991 Inlernational Union for the Protection of New Varieties of Plants Convention provisions (UPOV91) that include restrictions to the rights of farmers to freely use their seeds from UK agreements with member countries. Our work on intellectual propety provisions continued in the UK-India trade negotiations. Towards year-end, we initiated engagement on deforestation legislation, focusing on East Africa. We began documenting cocoa farmers, experiences to ensure their voices shape policy development. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continuedj FOR THE YEAR ENDED 31 MARCH 2024 Garments ortfolio Asla Hidden Homeworkers Project: This project supported 21,000 home-based workers across India, Nepal, and Pakislan, empowering them with skills in supply chain understanding, financial and digital literacy, occupational health and safety, and income diversification. During the COVID-19 pandemic, the project swiftly adapted to address urgent community needs, providing psychosocial counseling, awareness campaigns, sanitation supplies, PPE, and food kits. The initiative also elevated the narrative of homeworking, engaging over 80 brands, multiple multi-stakeholder initiatives (Msls), and industry associations, leading to greater recognition of home-based workers. While the project closed in 202312024, it leaves a legacy, including a toolkit lo help brands map homeworking chains, contributing to systemic change. Sadhna Relmagining woman artlsans organizatlon: bullding Iiv81ihoods, resilience and wellbelng project (January to December 2023): The partnership with Sadhna achieved key milestones in artisan empowerment. sustainabiSity, and organizational development. During this period, the program recruited 119 new artisans, successfully expanding operations to the Kumbhalgarh region. It provided social security for 171 artisans, trained 20 artisans in zero-waste production, and introduced eco-printing techniques and sustainable fabrics. The program showcased artisans, work nalionally, with 16 artisans participating in exhibitions, driving customer engagement and boosting sales. Online sales grew by 25 % through enhanced e-commerce efforts. Laylng the groundwork for future growth, the project added 100+ artisans to Sadhna's network, empowering women in their communities with skills to earn independently. and explored establishing a Kumbhalgarh work unil to empower more women wilh sustainable livelihoods. Participatory Photography project.. In early 2023, women from a garment collective in Tirupur, India, learned pholography skills from a professional photojournalist. Armed with cameras, they spent three months capturing their lives and experiences as homeworkers in the garment supply chain. Their powerful photos revealed both Ihe challenges and benefits of homeworking, shedding light on systemic issues such as denial of fundamental rights, including minimum wage, sick pay, and maternity leave-despite homeworkers. integral role in the fashion supply chain. Calllng for a Fashion Watchdog Our garments work continued to build over the year. By the end of the financial year, 10% of all MPS had pledged to support the Fashion Watchdog. We are working with the team in India on research to understand the impact on Indian suppliers of poor purchasing praclices. and are developing work with the University of Nottingham to deliver similar research on the impact on UK suppliers. All of Ihis will build the evidence base for the Fashion Watchdog. We have buill good relationships with the Director for Labour Market Enforcement, whose backing will be important to securing the Fashion Watchdog. We have also built an infomal coalition of supportive NGOS to help increase the visibilily of the campaign. Over the course of Ihe year, we have continued to engage wilh UK brands to encourage them to champion the Fashion Watchdog. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Toa ortfolio Asia Building Voices and Creating Choices for Tea worker communltles (in North Bengal and Assaml: The project's goal is to reduce socio economic vulneratmlity and to improve the livelihoods and resilience of 9,000 tea worker communities in 5 districts of North Bengal and Assam. This Oak Foundation funded project will cover 35 gardens 25 in North Bengal and 10 in Assam. During the year, some pilots were initiated for miligating climate stress in the lea sector, a study on the living income of tea workers was rolled out, partnerships with local government institutions were further strenglhened and several individual and group schemes were leveraged for the project participants. In addition, a range of on-fami and off-fami livelihood activities were initiated with the project participants to raise their overall household income. Africa Working wlth Small Tea Growers (STGS): We built on the scoping work done in the previous year. In Kenya. guided by the scoping research findings, the project has identified and supported one STG, the Nyeri Chai Farmers Association, on strengthening the organizalion and developing its capacity to influence and advocate for issues affecting its members and STGS in general. The organization has 3,532 (2,119F & 1.413 M) members working with five tea factories in Nyeri County. The activities and results included.. developing and launching a five-year strategic plan, selected training on governance and leadership, lobbying and advocacy, increased awareness about the Association and members recruitment, sensilisation on gender discrimination and sexual harassment, creation of a women forum and. strengthening the capacity of women tea farmers. The STGS have received training in agriculture-related subject areas and income generation opportunities, based on a needs assessment conducted in early 2024. During the same period, the projecl-initiated discussions with a Caucus representing STGS in Murang'a, a neighboring county in Kenya, who are looking to partner with Transform Trade to support their STGS. Criteria have been jointly developed to guide in selecting a few factories that could potentially form parl of a pilot project. In Tanzania, we partnered with Kazi Yetu an Africa-based, women-owned specially tea and botanicals social enlerprise. The company buys tea from small holder farms through their cooperative and creates jobs through local value addition by processing, blending and packaging ils products from its women-run factory. We supported them lo get equipment for storage of raw materials, renovate factory furniture to comply with food standards and train staff on health and safely. There was also capacity development of the producer groups through the cooperative, including Iraining on gender mainstreaming, governance and leadership, and sustainable organic cerlificalion. Broader Polic and Advocac work Traidcraft Exchange's policy and campaigning work seeks wider impact by tackling systemic issues that affect poor and vulnerable people in international trade, and by holding UK businesses and governments to account. As parl of UK coalitions, we supported work to secure a better governance structure for UK trade policy, including significant improvement to scrutiny and stakeholder engagement practices, and a slrategy that would include detail about how U K trade relates to other foreign policy priorities such as tackling climate change. Advocating for Climate and People-Friendly UK Trade Policies During this financial year we began to develop key areas of work under this heading. We produced a joint report on the likely impact of carbon border adjustment mechanisms for the Global South, responded to consultations on the subject and engaged with civil servants. We also engaged with NGOS and academics on green trade measures, raising the need lo avoid negative consequences for small producers in the global soulh. We will develop this work further in the com ing financial year. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Mandatory Human Rights and Environmental Due Diligence We continued to build support for a UK Business, Human Rights. Environment Act (BHREA) to tackle environmental and human rights abuses associated with business. We have been working with a Mexican communily to test the ability of the Financial Reporting Council to hold companies lo account for poor practice, in this case illegal mining of land and ignoring Mexican court orders to pay compensation and restore the polluted land. The work will add to the body of evidence on the need for the BHREA. Traidcraft Servic8s Indla Private Limited (TSIPL) The year had been challenging for TSIPL with significant staffing changes slowing progress. However, during the latter half of the year, the team realigned and gained momentum in terms of creating a healthy pipeline of proposals of £396,000. The ongoing projects that the company was working on received good feedback from the clients. Additionally, the company saw positive revenue growth with modest profit reported in the current year. During the year, the company also realigned its Annual Plan for the coming year as per the new objectives shared by Transform Trade. Our ongoing work generated important learnings for the leam and key stakeholders within the sector. For example, our work with Organic Cotton Accelerator helped enterprises and companies working on organic cotton value chain understand the nuances of decent work. It helped companies to look at their policies and their farm operations to address issues of child labor. forced labor, unequal wages and issues of occupational health and safety. Ralsing funds Publlc Fundralslng and Legacies: Overall, we raised just over £1.5m through Public Fundraising and Legacies in 23124. That's in line with our targets and represents a small amount of growth against the previous year's total of £1.4 million The 23124 year was largely about rebuilding and solidifying our fundraising performance in the first full year since our long-term partner, Traidcraft plc, closed down. With this in mind and against a backdrop of a global cost of living crisis, the small growth year on year is a big noteworthy achievement. Highllghts Central lo this positive performance was the £800K we raised through our fundraising appeals and our regular givers. These two income streams contribute to more than half of our total income and in 23124 they hit a really good level once again. Gifts in wills continued lo be a significant source of fundraising with approximately £340K coming from this channel in 23124. Gifts from Fair Trade shops and stalls almost doubled our forecast with these stalls raising more than £110K against a target of £60K. We saw something of a rallying effect after the Traidcraft closure as well as some prominent shops closing down and giving large donations as part of that process. Another highlight was the performance of a new income line, Transform Trade Christmas Cards - which also carry the Traidcraft brand, now under our care. This represents a new source of fundraising income Ihrough selling products. In our first season, we sold more than £70K worth of Christmas cards. This was a huge boost and outperformed our target of raising £55 Outside of this we also raised a significant amount of money through a strong network of mid to high level donors who provide match funding for appeals and larger one-off gifts. This network contributed over £100K lo our fundraising targets and continues to be a source of strength for us. The Traidcraft Exchange {A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Challenges In a year that met targets and outperformed our previous year, the challenge remain5 to grow our income so that we can expand our work in future. Our bigger lines like committed giving had positive years early on but they were static year on year and as such not in a position of growth. Other lines that performed well like Gifts in Wills {legacy income) and Gifts from Fair Trade Shops and Stalls are less likely to repeat their success in fulure years. To meet the challenges that lie ahead we strive to continue to pursue new opportunities for raising money and growing our support base. Grants from Institutional sources: We received £12,650 in unrestricted grants from five trusts and foundations. We received £212,874 in restricted grants from trusts and foundations although this was below our target of £317,000, this figure is higher than any other previous year. Further, we secured a £55,000 grant from one statutory funder- the Guernsey Overseas Aid & Development Commission- to support our women's economic empowerment programme in Bangladesh. Overall grants from institutional sources was below our target of £500,000 due to a limited scope to design new programmes for statutory funding. Flnancial revlew On the first full year since Traidcraft plc, our founding partner, closed down, Traidcraft Exchange has shown continued resilience posting a notable lower overall net deficit of £ 600,281 (2022123.. £ 916.095 re-stated deficit) Performance agalnst budget targets." Traidcraft Exchange's board approved a deficit budget of £.341.249 for 23124 against total restated reserves of £.1,152,777 for the year ended 31$1 March 2023. Through concerted efforts in fundraising in FY23124, we raised £.3.37M against budget of £.3.98M, falling short of our target by 150/0. Additionally, through cost cutting measures, we operated on a leaner cost base that saw us expend below our budget by 80A (£.3.98M againsl budget of £.4.32M). Performance compared to prevlous years.. Total income for the charity fell marginally from £3.45M in 22123 to £3.38M in 23124. Donations and legacies income increased from £.1.44M in 22123 to £.1.88M in 23124 whereas income from charitable activities fell from £.2.01 M in 22123 10 £.1.5 M in 23124. This net decrease in total income of £.76K was largely driven by a drop in statutory income arising from statutory grants that closed or were approaching close out during the year. Risk management The Board is responsible for Traidcraft Exchange's system of internal control and for reviewing its effectiveness. Such a system is designed to manage, but not eliminate. the risk of failure to achieve our objectives. Responsibility for managing the risks has been allocated within the executive team and, where appropriate. actions needed have been built into departmental action plans. Management, on behalf of the Board, ensures the operation and effectiveness of internal controls by the following means.. Control environment - creating an organizational structure with clearly defined responsibilities. The Traid¢raft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Operating controls - each department maintains financial controls and procedures appropriate to its own business environment. Budgetary control and financial reporting - Budgets are prepared by each department and reviewed by management and passed to the Board for approval. Financial performance against budget is monitored, with minutes and management accounts tabled at quarterly Board meetings. The key financial risks that Traidcraft Exchange faces are around our less predictable income streams, such as legacies and public appeals. The situation around Traidcracft plc had been a significant source of financial risk in 22123 and 23124, but since then, Traidcraft plc liabilities became known and there will be less risk in future in this regard. Another key risk is the challenges in finding match funding in relation to some of Traidcraft Exchange's institutional grants. This is mitigated by calculating a specific part of the minimum reserves target that needs to held in respect of any funds that are yet to be raised. The final area of risk is related to the shift in Traidcraft Exchange's strategy and finding new sources of more flexible funding to support that shift. This creates a financial risk as well as a risk that we might not fully achieve our objectives. This continues to be mitigated by management adopting more adaptive approaches lo planning and budgeling in 24125 and beyond. Resenies policy The trustees consider it prudent that Traidcraft Exchange should seek to maintain unrestricted reserves at a level sufficient to meet matched funding requirements, budgeled staff, overheads and fundraising costs. When calculaling unrestricted rese￿es, fixed assets and investments are excluded due to their illiquid nature. Whereas the organization has reported a deficit for the past years now, a more positive outlook is projected for the financial year 24125 and beyond. The trustees have approved an achievable surplus budget for the financial year 24125 and Management further projects a modest surplus budget for year 25126. Going concern The trustees have a reasonable expectalion that Traidcraft Exchange has adequate resources lo continue in operational existence for the foreseeable future. Management implemented significant cost savings, including making several staff redundanl, at Ihe end of 2023. This enabled the trustees to approve a budgel for 24125, which should generate an unrestricted surplus. In view of the deficit in 23124, the trustees have therefore taken particular care in reviewing the going concern basis. When reviewing their decision, they have taken the following factors into account.. Traidcraft Exchange prepares an annual cashflow forecast as part of its budgeting process. The cashflow forecast is monitored on a monthly basis. Further, expenditure levels are monitored against budget on a monthly basis through cost center reports Traidcraft Exchange has not encountered any difficulty in paying its creditors within agreed payment terms. I n general, most of our institutional donors provide their grants in advance of spending. Cashflow projections for the year following approval of these financial statements show that the charily will have adequate funds to meet ils liabilities as they fall due. Traidcraft Exchange has set an achievable budget for the year 24125 which should return a modest unrestricted surplus. For Ihese reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES. REPORT (Continued) FOR fHE YEAR ENDED 31 MARCH 2024 Plans for future periods We remain focused on our strategic direction, applying lessons learned as we pul producers at the centre of our work, prioritising them as key stakeholders and leaders and evolve into a participatory grant-maker, facilitator, and advocate. Despite challenges in the funding landscape, we are committed to strengthen existing relationships and build new ones with donors aligned with our values, prioritizing flexible funding to support local partner priorities. Following our acquisition of the Traidcraft brand in 2023, we've been working to honor the Fairtrade pioneer's legacy while raising vital funds for Transform Trade. This includes launching ethically produced Traidcraft Christmas Cards, lea, and toilet roll {in collaboration with Serious Tissues). Profits support our mission, and the Traidcraft brand serves as a licensing mark to promote fair trade principles in supply chains like charcoal and latex, ensuring more value reaches producers globally. On governance, we are progressing with the merger of the Foundation into Traidcraft Exchange, simplifying our structure and enhancing accountability to our primary stakeholders. Structure, governance and management Constitution Traidcraft Exchange is a company limited by guarantee governed by its Memorandum and Articles of Association lupdaled 20111. It is registered as a charity with the Charity Commission. Organisatlonal structure Historically, Traidcraft worked through three closely linked entities, sharing the same values and mission., Traidcraft plc, Traidcrafl Exchange and Traidcraft Foundation. Traidcraft PIC and Traidcraft Exchange worked in close partnership. The Foundation's mandate is to protect the Christian identity of Traidcraft. With the collapse of Traidcraft plc. we are exploring merging the Traidcraft Foundation into Traidcraft Exchange. Board structure Traidcraft Exchange's Board is responsible for approving Traidcraft Exchange's policy and strategy. It meets regularly during the year and has a schedule of matlers specifically reserved to it for decision. The management team supplies the Board with appropriate and timely information and the trustees are free to seek any further information they consider necessary. All truslees have access to advice from Ihe Company Secretary and independent professionals at the charity's expense. Training is available for new trustees and other truslees as necessary. All trustees are subject to re*lection at least every three years, except the Foundation Trustee (who is appointed by the Traidcraft Foundation for a three-year term). This year the board appointed two new trustees- France Villeneuve and Adamson Nsimba. The Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity with the assistance of the other senior management. To facilitate effective operations, the Chief Executive has delegated authority for operational matters. Trustees in office during the year are listed on page 1. During the year. two new trustees joined the board, France Villeneuve and Adamson Richard Nsimba. Subindu Garkhel was appointed as Advisor to the board during the year. The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Governance developments in the year The board continued its efforts to diversify, internationalize, and become more inclusive, aligning its governance practices with the organization's vision and values. As part of this commitment, two new trustees were appointed, bllnging valuable expertise. perspectives, and lived experiences that enhance the board's ability to guide the organization effectively. These appointments reflect a continued focus on ensuring governance structures that are representative, forward-looking, and equipped to support the organization's mission. The board remains committed to advancing these priorities into the coming year. Appointment and trainlng of Trustees Traidcraft Exchange has a Nominations Committee which identifies and proposes candidates for the Board of Traidcraft Exchange. Recruitment and selection of new Board members is by a combination of external advertisement and networking. Candidates are asked to provide written expression of interest and, if shortlisted, are inleNiewed by members of the Nominations Committee. Following recommendation by the Nominations Committee and approval by the Traidcraft Foundation. suc￿Ssful candidates are co-opled onto the Board. Board members receive letters of appointment. including a job description and statement of expectations. Induction packs are provided to new trustees and induction Meetings are arranged to cover key responsibilities, learn about the work of the organisation and meet key employees. Pay policy The Remuneration Committee, made up of three trustees. has responsibility for making recommendations to the Board on Traidcraft Exchange's general policy on CEO remuneration and determines the specific package for the CEO. It carrie5 Out these aspects of Traidcraft Exchange's remuneration policy on behalf of the Board. As well as considering conditions in Traiclcraft Exchange as a whole, it uses external data to set the context for ils deliberations and takes into account Traidcrafl Exchange's position relative to other organisations and is aware of what these are paying. The policy of the Board is lo provide remuneration packages that will attract, motivate and retain a CEO of the calibre necessary to maintain Traidcraft Exchange's position and to ensure that it meets its various objeclives. Trustees of Traidcraft Exchange receive no payment in relation to their role as Trustees of the charity. Travelling and other expenses are reimbursed. No trustees received remuneration from the charity during the year. For all other staff, including senior staff, salary setting is detemined by the Senior Management Team, following input from HR. When setting appropriate salaries for individual roles, internal relativities and external data is considered in order to make the reward as fair as possible in the Traidcraft Exchange context. Traidcraft Exchange implements a reward approach with defined salary bands and ranges. External benchmarking was conducted to inform how Traidcraft Exchange salaries compare against external market rates. Benchmarking information was then used to establish transparenl 'levels' for pay scales, and to allocate roles to these scales. Disclosure of informatlon to auditor Each of the persons who are trustees at the time when this trustees, report is approved has confirmed that.. so far as that trustee is aware, there is no relevanl audit information of which the charitable group's auditor is unaware, and that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to eslablish that the charitable group's audilor is aware of that information. Auditor As we embarked on our new slrategic plan, we have increasingly seen the need to strengthen our internal control systems and processes to build an even more agile, accountable and sustainable organization. Amongst the strategies to achieve this is to seek a fresh perspective to our internal control systems which included considerations of change of auditors. Following a tender process, the tender committee recommended the appointment of Haines Watts (now CLA Evelyn Partners) as auditors for the 2024 finaricial year. This recommendation was approved during the AGM. 11 The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAILS Charity number.. Company number: Registered office: 1048752 3031674 7-15 Pink Lane, Newcastle Upon Tyne, NE15DW Advlsors Auditors Bankers Solicitors CLA Evelyn Partners Limited 17 Queens Lane, Newcastle upon Tyne, NE1 1 RN HSBC Bank PLC 110 Grey Street, Newcastle upon Tyne, NE16JG Muckle LLP 32 Gallowgate. Newcastle upon Tyne, NE14BF Directors and Trustees The Direclors of The Traidcraft Exchange are the Trustees for the purpose of charity law. The Trustees and officers serving during the year and since the year end were as follows: Trustees.. David Pain Laurence Sewell Judith Kirton-Darling Karimi Kinoti Anita Cheria Adamson Nsimba France Villeneuve (Chair) (Appointed 24 March 2024) (Appointed 24 March 2024) Advisor to the board.. Subindu Garkhel (Appointed 24 March 2024) Key management personnel: Charlotte Timson (Resigned 30 June 2024) Alice Oyaro- Director of International Programs, Policy & Partnerships (Appointed Interim CEO 27 May 20241 Jon McNaughton - Head of Public Engagement and Communication (Appointed Deputy CEO 27 May 2024) Shahed Ferdous-counlry Director- Bangladesh (Resigned 26 September 2024) Mukesh Tiwary - Head of Programs- India (Appoinled acting Business Head 19 August 2024} Ruth Gergan- Head of Policy & Advocacy (Appointed 11 September 2023) Filbert Kavia - Africa Region Director Rakesh Supkar- Business - India (Resigned 18 August 2024) Alexander Carnwarth - Head of Policy & Advocacy (Resigned 02 June 2024) Thomas Royle- Head of Finance (Resigned 31 July 2024) Amy Wilson - Head of Patnerships and Investment {Resigned 28 June 2024} Janet Ruminju - Head of Programmes- East Africa (Resigned 01 December 2024) Revathy Rugmini - Regional Director- Asia (Appointed 20 June 2024) Zahir Bin Siddique- Head of Programmes & Operations (Appointed 07 July 20241 Doris Nelima - Head of Finance & Administration (Appointed 08 August 2024) 12 The Traidcraft Exchange (A Company Limited by Guarantee) TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also Directors of The Traidcraft Exchange for the purpose of company law) are responsible for preparing the Trustees Report {including the Strategic Report) and the financial stalements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare the financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and Ihe incoming resources and applicalion of resources, including the net income or expenditure, of the charity and the gfOUP for the year. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP 2015 (FRS 102); make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charitable company will continue in operation. The Trustees are responsible for keeping adequale accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. In so far as the Trustees are aware.. there is no relevant audit information of which the charity's auditors are unaware. and the Trustees have taken all the steps Ihal we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the auditor is aware of that information. Approved by the Trustees on . 2181 Jan 2025 and signed on their behalf by: David Pain Chair 13 The Traidcraft Exchange (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE FOR THE YEAR ENDED 31 MARCH 2024 Oplnlon We have audited the financial statements of The Traidcraft Exchange (the 'charitablo company) and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charitable Company Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and charitable company's affairs as at 31 March 2024, and of the group's incoming resources and appllcation of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and charitable company in accordance with the ethical requirements that are rel&vant to our audit of the financial statemenls in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audil evidence we have obtained is sufficienl and appropriate lo provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the trustees, annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othetwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 14 The Traidcraft Exchange (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024 In conneclion with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other info￿natIon is materially inconsistent with the financial stalements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misslatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report thal fact. We have nothing to report in this regard. Oplnions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report (Incorporating the strategic report and the directors, report) for the financial year for which the financial statements are prepared is consistent wilh the financial statements,. and the strategic report and the directors, report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us: or the parent charitable company's financial statements are not in agreement with the accounting records and returns., or certain disclosures of directors, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilitles of trustees As explained more fully in the trustees, responsibilities statement set oul on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatemenl, whether due to fraud or error. In preparing the financial statements, the trustee5 are responsible for assessing the group's and parent charitable company's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going con￿rn basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 15 The Traidcraft Exchange (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024 Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the companies Act 2006 and we report in accordance with this Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experien￿ and through discussion with Ihe directors and other management. The most significant were identified as the Charities Act 2011, Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. We considered the extent of compliance with those laws and regulations 8s part of our procedures on the related financial statements. Our audit procedures included.. confirming with the trustees and management whether they have any knowledge or suspicion of fraud., obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regu lations; assessing the risk of managemenl override including identifying and testing a sample ofjournal entries., confirmation received from the banks to verify the balance as on the last day of the accounting year; reviewing minutes of meetings of those charged wilh governance. Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAS (UK) there remains an unavoidable risk thal material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. A further description of our responsibilities for the audit of the financial statemenls is localed on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilits.es. This description forms part of our auditor's report. 16 The Traidcraft Exchange (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT EXCHANGE (continued) FOR THE YEAR ENDED 31 MARCH 2024 Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Cralg Henderson (Senlor Statutory Audltor) for and on behalf of CLA Evelyn Partners Limited fvi.c statutory Auditor 17 Queens Lane Newcastle upon Tyne NE11RN 17 The Traidcraft Exchange (A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolldated income and expgnditure account) FOR THE YEAR ENDED 31 MARCH 2024 As restated Total 2023 Unrestrlcted Funds Restrictod Funds Total 2024 Note Income from: Donations and legacies Charitable activities 1,879,508 51,386 1,879,508 1.498,295 1,439,883 2,013,912 1,446,909 Total income 1,930,894 1.446,909 3,377,803 3,453,795 Expenditure on: Raising funds Voluntary income sources I nslitutional income sources Charitable activities Development programmes Policy and campaigns 776,149 114.122 776,149 114,122 726,603 215,963 689,927 584,682 1,702,932 54,348 2,392,859 639,030 2,713,755 698,009 Total expendltura 2.164,880 1,757.280 3,922,160 4,354,330 Net movement In funds before transfers (233,986) (310,371 ) (544,357) 1900,535) Transfer between funds 19 (69,546 ) 69.546 Net movement in funds after transfers (303,532) (240,825) (544,357) (900,5351 Other recognlsed gainsl(losses) Unrealised foreign exchange losses { 55,924 ) (55,924) (15,560) Net movement In funds (359,456 ) (240,825 ) (600.281 ) (916,095 ) Reconclliation of funds Total funds brought fO￿ard 653,742 499,035 1,152,777 2,068,872 Total funds carried forward 294,286 258.810 552,496 1,152,777 All income and expenditure derive from continuing activities. The Statement of Financial Activities includes all gains and losses recognised in the year. 18 The Traidcraft Exchange (A Company Limited by Guarantee) CONSOLIDATED BALANCE SHEET AS A T3q MARCH 2024 As restated 2023 2024 Notes Fixed assets I nlangible assets Tangible assets 14 13 19,800 12,045 14,743 31.845 14,743 Current assets Debtors Cash at bank and in hand 16 330,894 601,679 397,755 1,616,824 932,573 2,014,379 Creditors: amounts falling due withln one year 17 (411.922) (876,345) Net current assets 520,651 1,138,034 Net assets 522,496 1,152,777 Charity Funds Unrestricted funds Reslricted funds 294,286 258,210 653,742 499,035 Total Charity Funds 19 552,496 1,152,777 The notes on pages 22 10 46 fonn part of these financial statements. The Inancial statements were approved by the Trustees on 21st Jan 2025 and signed on their behalf by.. David Pain Chair Company Number.. 03031674 19 The Traidcraft Exchange (A Company Limited by Guarantee) CHARITABLE COMPANY BALANCE SHEET AS A T 31 MARCH 2024 As restated 2023 2024 Notes Flxed assets Intangible assets Tangible assets Investments 14 13 15 19,800 10,202 1.000 13,856 1,000 31,002 14,856 Current assets Debtors Cash at bank and in hand 16 260.274 599,843 397,222 1,612,538 860,117 2,009,760 Credltors.. amounts falllng due within one year 17 (378,715) (857,572) Net current assets 481,402 1,152,188 Net assets 512.404 1,167,044 Funds Unrestricted funds Restricted funds 254,194 258.210 668,009 499,035 19 512,404 1,167,044 The notes on pages 22 to 46 form part of these financial statements. The financial statements were approved by the Trustees on 21st!an ?lj25 and signed on their behalf by.. David Pain Chair Type text here Company Number.. 03031674 20 The Traidcraft Exchange (A Company Limited by Guarantee) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 As restated 2023 2024 Note Net cash provided by/(used in) operating activities 24 (974,079) (1,100,938) Cash flows from Investing actlvltles Purchase of tangible assets Interest received (11,159) 2,738 15,058 Net cash flow from investlng activities 15,058 (8,421 ) Not decrease in cash and cash equivaSents (959,021 ) (1,109,359 } Cash and cash equivalents at the beginning of the year Change in cash and cash equivalents due to exchange rate movements 1,616,624 (55,924) 2,741,543 (15,560) Cash and cash equlvalents at the end of the year 601,879 1,616,624 Cash and cash equivalents conslst of: Cash at bank and in hand 601,679 1,616,624 21 The Traidcraft Exchange IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies 1.1 Basis of proparation of financial statements The financial statements have been prepared in accordance with 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} issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 102), the Charities Act 2011, Ihe Companies Act 2006 and UK Generally Accepted Practice. The Traidcraft Exchange meets the definition of a public benefit entity under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note{s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consislently applied to all years presented unless otherwise stated. 1.2 Basis of consolidation The financial statements consolidate the results of The Traidcraft Exchange and its wholly owned subsidiary. A separate Statement of Financial Activities and Income and Expendilure Account for the charity has not been presented because The Traidcraft Exchange has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. 1.3 Golng concern After making enquiries, the Board of Trustees has a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. In view of the deficit in 23124. the trustees have therefore taken particular care in reviewing the going concern basis. When reviewing their decision, they have taken the following factors inlo account.. Traidcraft Exchange prepares an annual cashflow forecast as part of its budgeting process. The cashflow forecasl is monitored on a monthly basis. Further, expenditure levels are monitored against budget on a monthly basis through cost center reports. Traidcraft Exchange has not encountered any difficulty in paying its creditors within agreed payment terms. In general, most of our institutional donors provide their grants in advance of spending. Cashflow projeclions for Ihe year following approval of these financial statements show that the charity will have adequate funds to meet its liabilities as they fall due. Traidcraft Exchange has set an achievable budget for the year 24125 which should return a modest unrestricted surplus. For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. 22 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 1.4 Funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of The Traidcraft Exchange and which have not been designaled for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the noles to the financial statements. Reslricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by The Traidcraft Exchange for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 1.5 Incom8 All incoming resources becoming available to the charity during the year are recognised in the Statement of Financial Activities. Income is deferred where incoming resources are received in advance of the service being provided. No incoming resources are stated net of expenditure. Institutional grants, where related to performance and specific deliverables, are accounled for as the Charity earns the right to consideration by its performance. Where income is received in advance of performance its recognition is deferred and included in creditors. Where entitlement occurs before income is received the income is accrued and included in debtors. Government grants are recognised when the charity has entitlement lo the income, receipt is probable and the amount can be measured reliably. Listed shares donaled during the year are included in donations and valued at estimated market value. Unlisted shares donated during the year are included in donations and valued at estimated market value. Legacies are recognised as income, in the accounling period, once the Charity has been informed of the amount of a bequest and it can be measured with sufficient reliability. Investment income is recognised on a receivable basis. 1.6 Expendlture and Irrecoverable VAT Expenditure is brought into Ihe financial statements as it is incurred. Overheads (including management and administration costs) and other non-specific expenditure are allocated belween charitable activities and generating funds in proportion to the number of staff employed within each area. This is shown as "overhead allocation" in the notes and apportioned on the basis of staff headcount. Costs of generating funds are those incurred in seeking voluntary income and grants from institutional sources and do not include the cosls of disseminating information in support of the charitable activities. These costs include the salaries, direct expenditure and overhead costs of the staff who promote fundraising. 23 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Costs of charilable activities represent the salaries and overhead costs of staff directly working in International Programmes and the Policy Unit together with expenditure directly attributable to these activities. Irrecoverable VAT is charged as a cost to the Statement of Financial Activities. 1.7 Support cost allocatlon Support costs represent the costs incurred by finan￿, IT and human resources attributable to the management of the Charity's assets and organisational administration. 1.8 Tangible fixed assets Tangible fixed assets costing more than £500 are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Office equipment Computer equipment 25% straight line 10% straight line 1.9 Intangible flxed assets Intangible fixed assets are stated at cost less amortisalion. Amortisalion is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following basis.. Capitalised Sofhvare 4 years 1.10 ForeSgn currencies Transactions in foreign currencies are translaled at the exchange rale ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are retranslated at the rates of exchange ruling at the balance sheet date. The functional currency of the Group is GBP Sterling. 1.11 Investments Investments in subsidiary undertakings are held at cost less impaimient. 1.12 Stock Stock is valued at the lower of cost and net realisable value. 1.13 Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.14 Cash at bank and In hand Cash al bank and cash in hand includes cash and short term highly liquid investments with a shorl maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 24 The Traidcraft Exchange {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR fHE YEAR ENDED 31 MARCH 2024 1.15 Creditors and provSsions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement after allowing for any trade discounts due. 1.16 Pensions For the defined contribution pension scheme. the pension costs charged to the Statement of Financial Activities represent the amount of the contributions payable in respect of the accounting period. For Ihe defined benefit schemes the amount charged to the Statement of Financial Activities in respect of pension costs and other post retirement benefits is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. The interest cost and expected return on assets are included within other finance costs. Actuarial gains 8nd losses arising from new valuations and from updating valuations to the balance sheet date are recognised in the Statement of Financial Activities. Defined benefit schemes are funded, with the assets held separalely from the group in separate trustee administered funds. Full acluarial valuations, by a professionally qualified actuary, are obtained at least every three years, and updated to reflect current conditions at each balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unit method and discounted al the current rate of return on a high quality corporate bond of equivalent term and currency. A pension scheme asset is recognised on the balance sheet only lo the extent that the surplus may be recovered by reduced future contributions or to the extent that the trustees have agreed a refund from the scheme at the balance sheet date. A pension scheme liability is recognised to the extent that the group has a legal or constructive obligation to settle the liability. The administration costs of running the closed defined contribution scheme are charged to the Statement of Financial Activities. Further details are provided in the notes to the accounts. 1.17 Financlal Instruments The Traidcraft Exchange only has financial assets and financial liabilities of a kind that qualify as basic rinancial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlemenl value with the exception of bank loans which are subsequently measured at amortised cost using the effective inleresl method. 1.18 Judgements and key sources of estimation uncertalnty In the application of the charitable company's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Aclual results may differ from these estimates. 25 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 1.19 Judgements and key sources of ostimation uncertainty (continued) Key estimates included within these financial statements include assumptions regarding discount rates and mortalily in calculating the value of retirement benefits. Trustees keep these assumptions under review and employ the seNices of qualified actuaries to cakulate the resulting expected asset or liability to the charity in respect of retirement benefits. None of the other estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In preparing these financial statements, no significant judgements were required in the process of applying the company's accounting policies. 2. Legal status The Traidcraft Exchange is a company limited by guarantee, registered in England and Wales, (number 03031674) and not having a share capital. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. 26 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Statement of financSal activities from the prior year as restated Unrestricted Funds Restricted Funds Total 2023 Note Incom8 from: Donations and legacies Charitable activities 1,439,883 101,820 1,439,883 2,013,912 1,912,092 Total Incom8 1,541,703 1,912,092 3,453,795 Expenditure on: Raising funds Voluntary income sources I nstitulional income sources Charitable activities Development programmes Policy snd campaigns 726,603 215,963 726,603 215,963 946,455 676,970 1,767,300 21,039 2,713,755 698,009 Total expenditure 2,565,991 1,788,339 4,354,330 Net movement In funds before transfers (1,024,288 ) 123,753 (900,535) Transfer between funds 21 (22,401 ) 22,401 Net movement in funds after transfers { 1,046,689 ) 146,154 (900,535 ) other recognlsed gainsl{losses) Unrealised (losses) (15,560) (15,560) Net movement in funds (1,062,249 ) 146,154 (916,095) Reconciliation of funds Total funds brought forward 1,715,991 352,881 2,068,872 Total funds carried forward 653,742 499,035 1,152,777 27 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Income from donations and legacies 2024 2023 Donations Legacies Other donations 1.534,665 328,693 16,150 1,267,691 147,920 24,272 1,879,508 1,439,883 Charltabla activities Unrestricted Funds Restrlcted Funds 2024 2023 Grants from institutional sources Consultancy and other income 1.446,909 1,446,909 51,386 1,912,092 101,820 51,386 51,386 1,446,909 1,498,295 2,013,912 Costs of generating funds Voluntary income 2024 2023 Travel and accommodation Direct costs Support costs Direct salaries 348 297,581 167,379 310,841 544 241,814 167,400 316,845 776,149 726,603 Institutional sources 2024 2023 Support costs Direct salaries 114,122 145,530 70,433 114,122 215,963 28 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Analysis of oxpenditure on charitable activities Unrestricted funds Restricted funds Total 2024 Total 2023 Development Programmes Direct salaries Travel and accommodation Direct programme costs Support costs {Note 8) 453,310 15,261 220,445 912 289,410 55,628 1,265,225 92,668 742,720 70,889 1,485,670 93,580 782,643 111,082 1,655,821 164,209 689,928 1,702,931 2,392,859 2,713,755 Policy Unlt and Campaigning Direct salaries Travel and accommodation Direct programme costs Support costs (Note 8) 313,259 2,685 3.975 264,763 42,072 1,525 10,752 355,331 4,210 14,727 264,763 406,277 752 22,275 164,209 584,682 54.348 639,030 698,009 1.274,610 1,757,279 3,031,889 3,411,764 Support costs Voluntary Income Institutlonal Sources Development Programmes Policy & Campaignlng Management and admin salaries Governance Office services Office machinery and consumables Financial services 114,622 20,061 20,248 1,665 10,783 78,152 13,678 13,805 1,135 7,352 64,084 11,216 11,320 931 6,029 181,312 31,733 32,028 2,634 17,057 167,379 114,122 93,580 264,763 2024 2023 Management and admin salaries Governance Office services Office machinery and consumables Financial services 438,170 76,687 77,401 6,365 41.220 462,308 89,765 129,726 15,632 48,414 639,843 745,845 29 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Support costs have been apportioned based on the number of full-time staff equivalents in each department. Management and administration salaries include the salaries of staff working in Finance, HR, Public Relations and Communications and general management. It also includes recruitment, relocation, training and other staff costs. Office services include rent, insurance and general office running expenses. Office machinery and consumables include depreciation and non-capital office furniture. fittings and equipment. Financial services include bank charges, irrecoverable VAT and membership fees and subscriptions. PR & Comms is the cost of preparing communications for the charily and includes the cost of trips to visit projects to provide reports to our supporters. Net expendlture for the year Net income is stated after charging., 2024 2023 Amortisation Depreciation Operating lease costs Unrealised exchange rate losses Auditors remuneration 2,200 11,172 57,004 55,924 25,000 12,709 53,890 15,560 15,500 10. Auditors r8muneration The auditors remuneration amounts to an audit fee of £25,000 (2023 - £15,500). 11. Financial performance of the charitable company The Consolidated Statement of Financial Activities includes the results of the wholly owned subsidiaries. The summary financial performance of the charity alone is; 2024 Income Expenditure Unrealised losses 3,244,781 { 3,755,154 ) (55,9241 Net (deficit) I surplus { 566,297 ) 30 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 12. Analysls of staff costs, Trustee remuneration and expenses, and the cost of key management personnel The total staff costs and employees benefits were as follows= 2024 2023 Wages and salaries Social security costs Other pension costs Overseas salaries and staff costs 1,053,790 86,714 105,743 793,273 1,015,691 70,011 105,206 801,044 2,039,520 1,991,952 The average number of employees during the year was as follows: 2024 Group 2023 Group Development programmes and Policy Unit Fu ndraising Management and administration 49 13 39 12 71 57 The number of employees who received total employee benefits {excluding employer pension costs) of more than £60,000 is as follows: Number 2024 Number 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £90,001 £100,000 31 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR fHE YEAR ENDED 31 MARCH 2024 12. Analysls of staff costs, Trustee remuneration and expenses, and the cost of key management personnel expenses (continuedj The Trustees were not paid or received any other benefits from employment in the year (2023 £nil). No Trustee received payment for professional or other services supplied to the charity (2023 - £nil). The key management personnel of the charity are identified on page 12. The lotal employee benefits of the key management personnel of the charity were £526.934 (2023 - £640,990). 13. Tangible fixed assets Consolidated Flxtures, flttlngs and equipment Total Cost At 1 April 2023 Additions Disposals 142,990 6,596 (8,134 ) 142,990 6,596 (8,134) At 31 March 2024 141,452 141,452 Depreclatlon and impalrment At 1 April 2023 Charge for the year Disposals 128,247 6,781 { 5,621 ) 128,247 6,781 (5,621 ) At 31 March 2024 129,407 129,407 Net book value At 31 March 2024 12,045 12,045 At 31 March 2023 14,743 14,743 32 The Traid¢raft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 13. Tangib18 fixed assets (continued) Charitable company Fixtures, f ittings and equipment Total Cost At 1 April 2023 Additions Disposals 135,777 3,748 (8,134) 135,777 3,748 (8,134) At 31 March 2024 131,391 131,391 Depreciatlon and impairment At 1 April 2023 Charge for the year Disposals 121,921 4,889 (5,621 } 121,921 4,889 (5,621 ) At 31 March 2024 121,189 121,189 Net book value Al 31 March 2024 10,202 10,202 At 31 March 2023 13,856 13,856 33 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 14. Intangible assets Consolidated & Company IT systems Total Cost At 1 April 2023 Additions Disposals 33,245 22,000 (13,7761 33,245 22,000 (13,776 ) At 31 March 2024 41,469 41,469 Amortlsatlon At 1 April 2023 Charge for the year Eliminated on disposal 33,245 2,200 (13,776 1 33,245 2,200 (13,776) At 31 March 2024 21,669 21,669 Net book value At 31 March 2024 19,800 19,800 Al 31 March 2023 15. Investments Consolidated 2023 Charltable Company 2024 2023 2024 Shares in subsidiary undertakings 1,000 1,000 1,000 1,000 Traidcraft Services India Private Limited is incorporated in India and is limited by shares. The Corporate Identity Number is U74140DL2015PTC286042. Traidcraft Exchange holds 99% of the shares. The investments include shares in Traidcraft plc which are not listed on any stock exchange and which were donated to Traidcraft Exchange by supporters. At 31 March 2024, the Traidcraft plc shares were nol being traded so the trustees valued the shares at nil. Due to the illiquid nature of these shares the trustees believed it was appropriate to classify them as a fixed asset investment. 34 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Percentage Shareholding Company Traidcraft Services I ndia Private Lim iled Country Description India 100% Ordinary The resulls and summary of assets and liabilities of the company are as follows: 2024 Turnover Cosl of sales Administrative expenses 133,022 (167,006) (24,608) Loss for the year (58,592) 2024 Total assets Total liabililies 43,170 (18,563) Shareholders, funds 24,607 16. Debtors Group 2024 Group 2023 Charitable Company 2024 2023 Trade debtors Amounts owed to subsidiary undertakings Prepayments and accrued income Other debtors 11,851 19,168 11,851 19,168 30,316 335,179 12,559 233,683 85.360 336,914 41,673 231,103 17,320 330,894 397.755 260,274 397,222 35 The Traid¢raft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 17. Creditors: amounts falling due within one year Group 2024 Group 2023 Charitable 2024 Company 2023 Trade creditors Social Security and taxes Accruals and deferred income Other creditors 44,573 24,050 339,579 3.720 57,937 34,326 743,807 40,275 44,573 7,169 340,579 { 13,606 ) 57,937 16,465 744,807 38,363 411,922 876,345 378,715 857,572 Deferred Income Group 2024 Group 2023 Charitable 2024 Company 2023 Deferred income at 01 April 2023 Deferred during the year Amounts released 815,674 135,283 (815,674) 852,708 601,531 { 852.708) 815,674 135,283 (815,674 ) 852,708 601,531 (852,7081 Deferred income at 31 March 2024 135,283 601,531 135,283 601,531 Deferred income relates to funds received from Institutional donors that have not been spent at the year end. It will be spent on planned future project activities. The majority will be spent in 24125. Income will be recognised as the monies are utilised, in line with the funding agreements. 18. Operating leases The future minimum lease payments under non-cancellable operating leases are as follows-, 2024 2023 Nol later than one year Later than one and not later than five years 17,367 15,587 24,901 15,805 32,954 40,706 36 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnuedj FOR THE YEAR ENDED 31 MARCH 2024 19. Fund reconcillation Year ended 31 March 2024 Balan¢8 at 1 April 2023 384,742 Balance at 31 March 2024 224,286 Transfers Gainsl (losses) (55,924) Unrestrlcted funds General fund Income 1,930,894 Expenditure (2.164,880) 129,454 Deslgnated fund Organisation systems strengthening work 269,000 (199,000) 70,000 653,742 1,930,894 (2,164,880) (69,5461 (55,924) 294,286 Restricted funds JRCT land grab research Project 6.463 Khamalayan project 2.754 Hidden Homeworkers project 17.944 Tanzania - Disability project Matrix Causes Fund 5,000 West Bengal Women Famers 21,961 Juicing Justice project 500 OAK Foundation project (Pahariya Jharkhand project)100,269 C&A Textiles (2,051 ) Supporting Tea Workers project ICOVID-19 Response Fund) { 3,262) Fighting forced labor- Muktee project Oak - Tea Project Laudes foundation Laudes Garment Work Empowering Women CSOS (WEE) project UKAM- PPP project Strengthing Farmers Association Muktee11.' Strengthening (Women CSOS) 17,493 Coffee, Cocoa & Palm oil (CCP) (93) Halcrow Foundation 3,739 Participatory Grant Making (PGM) Pilot 6,463 1,927 22,033 5,420 5,000 23,961 500 {827) (136.988) (16,803) 141,077 22,223 2.000 (132,009) 50 31,740 2,001 3,262 8,499 (10,272) { 181,135) 1,773 196,136 5,418 83,288 15,001 5,418 118,876 89,986 (54,398) 5,000 692,842 224.994 214,482 (666,092) (224,999 ) (209,600) 31,750 4,882 10.000 10,273 (18,268) (2,426) (24,603 ) 9,225 7,754 20,864 38,476 30,533 (78,910) 9,901 Tolal restricted funds 499,035 1.446,909 (1.757,280) 69,546 258,210 Total funds 1.152,777 3,377.803 (3,922,160 ) (55,924 ) 522,496 37 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 19. Fund reconciliation (Contlnued) Year ended 31 March 2023 as restated Balance at 1 April 2022 1,446,991 Balance at 31 March 2023 384,742 Transfers Gainsl Expenditure Ilosses) { 2,565,991 ) (22,401 ) (15,560) Unrestricted funds General fund Income 1,541,693 Deslgnated fund Portfolio work 269,000 269,000 1,715,991 1,541,693 (2.565,991 ) (22,401 ) { 15,560) 653,742 Restricted funds JRCT land grab research Project 8,678 Khamatayan project 2,754 Hidden Homeworkers project 2,944 Tanzania - Disability project 29,563 Catalyst fund 95,000 Participatory Approach Pilot of Women's Empowerment 65,512 Malrix Causes Fund 5,000 Sustainable Agriculture & Women Advancement (SAWA} { 50,875) West Bengal Women Farmers Juicing J ustice project OAK Foundation project (Pahariya Jharkhand projecl) 69,369 C&A Textiles Supporting Tea Workers project {COVID-19 Response Fund) 3,271 Fighting forced labor- Muktee project Oak - Tea Project Laudes foundation Laudes Garment Work Empowering Women CSOS (WEE) project UKAM- PPP project strengthing Farmers Association Muktee11.' Strengthening (Women CSOs} Coffee, Cocoa & Palm oil (CCP)(2.210) (2,215) 6,463 2,754 17,944 220,261 88,572 (205,261 ) (118,135) (95,000) 5.000 (70,512 ) 5,000 36,036 21.961 10,800 14,839 21,961 500 (10,300) 189,486 16,773 (158.586) (18,824) 100,269 (2,051 ) (6.533) { 3,2621 104,738 63,535 338,570 (122,446) (45,827 ) (142.434) 196,136 5,418 83,288 5,418 83,288 590,038 238,356 (585,038 ) { 238,356) (22.401 ) 5,000 22,401 (28,334) { 7,299) 45,827 17,493 (93) 9.416 38 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Halcrow Foundation Participatory Grant Making (PGM) Pilot 13,719 { 9,980) 3,739 (32,036) 70,512 38,476 Total restricted funds 352.881 1,912.092 { 1,788,339) 22,401 499,035 Total funds 2,068.872 3,453,785 { 4,354,330) (15,560 ) 1,152,777 South Asla Programm8 'MUKTEE: Fighting Forced Labour with Adivasi and Dalit Communities in South Asia,: Ref No. COOP- RSID12018) 6764770) is a four year project funded by the European Commission. 11 was planned in order to address the systemic and structural vulnerabilities of agricultural communities to forced, bonded, and child labour in districts of Northern Bangladesh and four districts of Madhya Pradesh, India. It worked on multiple fronts, namely rescuing and rehabilitating communities from bonded labour conditions; preventing future bondage through skill development and employment opportunities,. supporl enterprise through developing supply chains of agricultural commodities in the local areas; and strengthening policy interventions. 8,000 households and 20,000 children were to benefit directly from this project. The project received a no-cost extension until the end of June 2022 and currently work is being to complete the evaluation and final reporting. The total cost is É1,131,809. Hldden Homeworkers - Improving Transparency and TraceabS11ty to Improve Working Conditlons of Homeworkers in Apparel and Footwear Chains: Ref No EuropeAid11575151dhlactlMulti is a project that started in April 2019. The obtrective is to improve the working conditions of informal and home based workers in Nepal, Pakistan and India, who work in global value chains in the apparel and fO0￿ear sectors. It is expected to impact the lives of 20.000 home based workers in this country through improved working conditions, access to social entitlements and policy change at the national level. The project is progressing well, though has to undergo some changes due to the impact of covid on home workers. A no-cost extension is now proposed and the details are being worked out. The total cost is É1,308,922. Bangladesh 'Khamatayan' (Empowering smallholders to strengthen local democratic governance) is being implemented in Bangladesh in partnership with Christian Aid and Solidarites and funded by the European Commission. The objective is to strengthen the governance, accountability and sustainability of smallholder civil society organisations in Bangladesh, covering 24 district and sub district associations, and 788 village level Self help Groups {SHGs). The project planned to emtM)wer these organisations, representing 20,000 marginal famers {50°/o women, 100fi elhnic minorities, 5% disabled people) to proactively engage with Local Authorilies in the five target districts of Gaibandha, Kurigram, Mymensingh. Sherpur and Satkhira. The total cost of this 42 month project is É1,653,149. Empowering women's CSOS to ensure good governance (WEE): Ref No EuropeAid11689031DDIACTIBD is a 42 month project starting February 2021 and will impact the lives of 15,000 women in 5 districts of Bangladesh, in partnership with Ulashi Sreejony Sangha (USS) and Bikash Bangladesh. The project will build capacity of women's grassroot organisations to advance gender equality and empowerment and enable their participation in local governance. It will support women to access social and economic rights., and strengthen women's collective voice through their own organisations. The total cost is É2,592,595. 39 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Shifting the power to grassroots, communities through strengthening famier-led CSOS and Improving their engagement in the sustainable development process ISWABOL). The project slarted in April 2023 through a Traidcraft Exchange led consortium of six NGOS in 33 disadvantaged upazialas (sub-districts) of 13 districts across Bangladesh. The work focuses on enhancing human and social capital and strenglhening Smallholder Farmer-led Civil Society Organizations (FSFCSOS) as independent institutions and actors of good governance to promote inclusive and suslainable development. The project targets 46 FSFCSOS and 1,580 Local Farmer Organizations along with 50,000 participants150 % women, 70A ethnic minorities and 5% persons with disabilities). Registration of these FSFCSOS is under process which will ensure legal entity and contribute to their sustainability in the long run. India Addressing vulnerabilities among the Pahariya community through market led InteNentions: Ref No OFIL 19 003 is a 4 year project aims to 'reduce vulnerability and improve sustainable livelihoods and food sovereignty among 3000 Pahariya households, particularly women, in two blocks of Jharkhand" The 90 villages targeted are comprised of extremely vulnerable Pahariya tribal households alone. This is sought to be achieved by organising and enabling communities to adopl sustainable and productive resource {forest, land and water) management regimes, empowering communities to access their entitlements and engage with the market with a view to sustainably enhance livelihood, income base and nutritional status. The total cost of the project is £631,172 and is funded by the Oak Foundation. Addressing Socio-Economic Vulnerabililies of Tea Workers in West Bengal and Assam Building Voices and Creating Choices.. The goal of this 3-year project is to reduce socio economic vulnerability, improve livelihoods and resilience of 9,000 Tea worker communities in 5 districts of North Bengal and Assam. The work will be undertaken across 35 gardens of which 25 gardens in North Bengal and 10 gardens in Assam. The project will facilitate building of community voices and create opportunities and choices for tea worker households. The primary focus will be to improve livelihoods and safety nets through a parlicipatory process of assessing needs, resources, skills and opportunities leading to diversification and improvement in incomes. Secondly, collectivisalion of women and youth in the gardens and enhancing their knowledge, skills and sense of agency will improve their negotiation and dialogue capacities with officials within and outside the gardens enabling them lo access entitlements from the Government. The project will also establish a model of climate adaptive practices through establishing small scale innovations. The total cost of the projecl is £972,572 and is funded by the Oak Foundation. Climate resilient sustainable livelihoods for female small holder farmers. (Birbhum, West Bengal).. Ref.. HF185 is a project in India funded by the Halcrow Foundation. The project aims to organize vulnerable women farmers, improve food security and increase household incomes through livelihood diversification, enhanced water use efficiency, and building resilience through social security safely nets for 2,500 vulnerable families. The project is now in year 2. There are 80 Women Livelih¢)od Committees formed now and work is on to build capacily around governance, micro savings, and resource mapping. Linkages have been built with various government departments to access extension services for a variety of crops as well starting nurseries to benefit other families. The cost of the project is £99,948. East Africa Programme Senegal In 2016117, 'Juicing Justice project for Farmers., started in Senegal, has worked in partnership with two small Senegalese enterprises called Zena and BDS. 40 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuodj FOR THE YEAR ENDED 31 MARCH 2024 The project, funded by Comic Relief (Grant ID 1324191 total cost £625,489), has worked with 2,200 forest fruit farmers to acquire environmentally sustainable forest fruit harvesting knowledge and skills, increase their income from sales of exotic forest fruits and improve their livelihoods. It also aims to strengthen the capacity of the two small businesses to trade with the famiers in ethical Practices that ensure equitable sharing of risks and benefits as well as develop their capacity to access European markets with innovative juice brands. The project has now ended. Kenya Particlpatory Grant Making (PGM) Pllot: The PGM pilot was launched during the current financial year in partnership with the Kenya Community Development Foundation {KCDF). Through the partnership, we supported six community-based organizations (CBOS) in small scale agriculture, in Meru and Kilui counlies of Kenya across three value chains, that is, poultry farming, onion farming and bee keeping, monitored their progress, addressed challenges and disbursed funds to them. Through the pilot, the capacity of the CBOS was enhanced Ihrough training. provision of extension services in partnership with government officers and cross- learning through exchange visits to experienced farmers. We plan to continue to maintain the integrity of established structures and adopting a facilitative approach that empowers CBO leadership to make key decisions, we enhan￿d collaboration. building on our strong track record with local partners and made progress towards project sustainability. Tanzania 'Promoting the Inclusion of People with Disabilities in Cocoa, Coffee and Palm Oil Value Chains,. This project is being implemented by Traidcrafl Exchange in Tanzania. It is funded by The National Lottery Community Fund (project ID: 10328877). The project seeks to reduce household poverty and empower 1,000 people with disabilities and 500 smallholder farmers andlor micro entrepreneurs, engaged in the coffee, cocoa and sustainable palm oil in Mbeya Region of Tanzania and Dar es Salaam. The project seeks inclusion of disabled people in all aspects of the value chains through collective organisation, improved access to finance and business services, improved market aC￿sS and changes in behaviour and practice towards disabled people. The budget for this project is £682,418. Policy and Campaigning Programm8 JRCT Our policy and campaigning work on corporate accountability has been partially supported by the Joseph Rownlree Charitable Trust. In the last year, we continued to call on the government lo legislale to hold companies to account for violating human rights through a Business Human Rights and Environment Act {BHREA). A key aspect of this was a submission (written jointly with the Corporate Justice Coalition) and extensive follow-up advocacy to the Law Commission's Corporate Criminal Liability enquiry, around elements which we believe should be included in a new law. Our request that legislation should cover the failure to prevent human rights abuses was included in the Law Commission's options paper in June 2022. In addition, we launched a public campaign in favour of BHREA in De￿mber 2021 which received 24,622 signatures. Laudes Foundation Our policy and advocacy work on textiles in the EU has been supported by Laudes Foundation. In the last year, we have taken forward advocacy on Unfair Trading Practices (UTPS) in the garment sector in the EU, including-. holding regular meetings with the European Commission and Members of Ihe European Parliament around the Eu's textile strategy. commissioning research on fair and unfair trading practices, and holding parliamentary events to highlight the impact of garment retailers, purchasing practices on working conditions, job securily and pay for workers. 41 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 20. Analysis of net assets between funds Year ended 31 March 2024 Unrestricted Funds Restrlcted Funds Total 2024 Total 2023 Tangible assets Intangible assets Current assets Creditors amounts due within one year 12,045 19,800 539,079 (276.638 ) 12,045 19,800 932,572 (411.921 ) 14,743 393,493 (135,283) 2,014,379 (876,345) 294,286 258,210 552,496 1,152,777 Year en ed 31 March 2023 Unr8strlcted Funds Restricted Funds Total 2023 Total 2022 Tangible assets Intangible assets Current assets Creditors amounts due within one year 14,473 14,473 16,293 4,342 2,014,379 3,136,667 (876.345 ) (1,088,430) 913,813 { 274.814 ) 1,100,566 (601,531 ) 653,742 499,035 1,152,777 2,068,872 21. Related Party Transactions During the year the Charity had transactions with the following related parties.. The Traidcraft Foundalion - the controlling party of the company as detailed below. Traidcrafl plc- a company with several trustees in common and in which the Traidcraft Foundation controls a protective Guardian Share. Trustees- the trustees donated £nil (2023 - £nil) during the year. 2024 2023 Traidcraft plc Purchase of goods and services (e.g. rent and building costs) Sale of services 15,832 30,850 22. Controlling Party The charity is under the control of the Traidcraft Foundation (charity number 294953), a registered charity with the same place of business, being the founder member and having, in general meetings, the number of votes that exceeds by one the number of all other votes cast. 42 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 23. Pension Commitments The group operates a defined benefit pension scheme. Until 31 March 2001 Traidcraft operated a defined benefit funded pension scheme covering the pension arrangements of employees of Traidcraft plc and Traidcraft Exchange, providing a pension linked to final salary. This scheme is now closed but not wound-up and Traidcraft plc 2nd Traidcraft Exchange continued to make contributions to it, working with the scheme trustees to agree appropriate contribution levels. Traidcraft plc has been Ihe principal employer within the combined Traidcraft defined benefit pension scheme and Traidcrafl Exchange is the participating employer. In January 2023 Traidcraft plc entered into administration. The scheme actuary has split the assets and liabilities of the original scheme into a Traidcraft plc scheme and a Traidcraft Exchange scheme. Traidcraft Exchange is solely responsible for the Traidcraft Exchange part of scheme and is responsible for meeting the ongoing costs of the Traidcraft Exchange scheme. The triennial actuarial valuation prepared as at 1 September 2019 indicated that the scheme was in technical surplus. The charity expects lo contribute £nil to the defined benefit pension plan in the year to 31 March 2024. It should be noted that the surplus calculated in the triennial valuation and the surplus or deficit calculated under FRS102 differ as the two methods require different assumptions to be used. Effective January 2025 Traidcraft Exchange assumed principal employer for the defined benefit pension scheme. The insolvency of Traidcraft plc was scheduled to end by 31st Jan 2025. As at start of Jan 2025, the portion of the pension scheme relating to Traidcraft plc had not yet been transferred to the Pension Proteclion Fund (PPF). Given the Traidcraft PIC portion of the scheme was still under PPF review, it would not be wound up when the insolvency of Traidcraft PIC was finalized. However, the Traidcrafl Exchange portion of the pension scheme ran the risk of being wound up as it did not enjoy similar exemption. To avoid triggering the winding up of the scheme and consequent Section 75 debl being served on Traidcraft Exchange, the Trustees passed a resolution on 17th January 2025 for Traidcraft Exchange to cease to be participating employer and instead take on the prinicpal employer role in the pension scheme. The Financial Reporting Standard 102 Section 28 requires that the following further disclosure is made about the closed defined benefit pension scheme. The actuarial valuation has been updaled by the qualified scheme actuary to 31 March 2024. Principal actuarial assumptions at the balan￿ sheet date (expressed as weighted averages).. 43 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 At 31 March 2024 At 31 March 2023 At 31 March 2022 Discount rale Expected rate of inflalion (CPI) Rale of increase of pensions accrued post 5 April 1997 Rate of revaluation of deferred pensions 3.05 2.75 2.75 2.75 3.15 3.15 3.15 3.05 At 31 March 2024 At 31 March 2023 At 31 March 2022 Mortallty rates (in years) For a male aged 65 now At 65 for a male aged 45 now For a female aged 65 now Al 65 for a female aged 45 now 21.3 22.6 23.7 25.2 22.1 23.5 24.5 26 21.3 22.3 23.2 24.4 The group's share of Ihe assets in the scheme was: At 31 March 2024 At 31 March 2023 Equities Property Gilts Bonds Cash other 253,000 76,000 398,000 721.000 52,000 233,000 319,000 858,000 33,000 Total fair value of assets 1.500,000 1,443,000 The actual return on scheme assets was £.32.000 {2023: 202,000). The amounts recognised in the Consolidated statement of financial activities are as follows: 44 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 At 31 March 2024 At 31 March 2023 Opening defined benefit obligation Interest cost Benefits paid Acluarial gainl(losses) 1,382,000 63,000 (42,000) 60.000 1,651,000 42,000 (66,000 ) (245,000) Closing defined beneflt obllgation 1,463,000 1,382,000 Reconciliation of fair value of plan assets were as follows-. Opening fair value of scheme assets Interest income Return on plan assets excluding interest Benefils paid other incomel{expenses) 1,443,000 65,000 (33,000) { 42,000) 67,000 1,711,000 44,000 (246,000) { 66,000) 1,500,000 1,443,000 Amounts included in the balance sheet arising from the charity's obligation in respect of defined benefit plans: At 31 March 2024 At 31 March 2023 Present value of defined benefit obSigations Fair value of plan assets Restriction of scheme asset (1,463,000) { 1,382,000) 1,500,000 1,443,000 (37,000) (61,000) Deficit in the scheme In the year ended 31 March 2024 the actuarial valuation for ac counting purposed showed a surplus of assets over liabilities al that date of £37,000 (2023= £61,000). In accordan￿ with FRS102 a pension scheme asset is recognised on the balance sheet only to the exlent that the surplus may be recovered by reduced future conlribution5 or to the extent that pension scheme trustees have agreed a refund from the scheme at the balance sheet date. Neither condition was met at the balance sheet date and therefore the susplus was not recognised. Defined contribution scheme: At 31 March 2001 Traidcraft closed entry to the defined benefit scheme and closed accrual of future benefil within that scheme. On 1 April 2001 Traidcraft introduced a Group Personal Pension Scheme (a type of defined contribution scheme) which now has an employels contribulion rate of 7.5°/0 {2023-. 7.50/0). Traidcraft Exchange made contributions of £.105,743 during the past year (2023= £.70,011) and this cost, together with administration charges of £.Nil (2023: Nil) relaling to the closed scheme comprise the pension cost of £.105,743 (2023: £.70.011) shown in Note 10 to these accounts. 45 The Traidcraft Exchange (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024 24. Reconciliation of net income to net cash flow from operating activities 2024 2023 Net deficit for the year (544,357) (900,535 ) Depreciation on tangible assets Loss on disposal of fixed assels Interest received Prior year non cash adjustment Decrease in debtors (Decrease)Ilncrease in creditors 1,605 (2,707) (15,058 ) (16,000 ) 66,861 (464,424) 17,051 (2,738) (230,143 ) 13,369 2,058 Net cash flow from operating activities (974,079) (1,100,938 ) 46