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2022-12-31-accounts

Charity registration number 1077622

CHINMAYA MISSION (UK)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHINMAYA MISSION (UK)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees S Swaroopananda
S Wadhwani
R Pattni
S Patel
D Budhrani
M Samani (Appointed 12 September 2022)
J Schibli (Appointed 12 September 2022)
L Shivakumar (Appointed 18 September 2023)
R Mahtani (Retired 18 September 2023)
Secretary S Wadhwanl
Charity number 1077622
Principal address 2 Egerton Gardens
Hendon
London
NW4 4BA
Auditor KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers National Westminster Bank
North Finchley (A) Branch
786 High Road
London
N12 9QT

CHINMAYA MISSION (UK)

CONTENTS

Page
Trustees report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

CHINMAYA MISSION (UK)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report and financial statements for the year ended 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”

The Chinmaya Mission (UK) - "CMUK" is a charity registered with the Charity Commission since 30 September 1999.

Objectives and activities

CMUK's objectives are to spread the wisdom of Vedanta (as propagated by His Holiness, Swami Chinmayananda) and to provide (and assist in the provision of) facilities for education and positive recreation in the interests of social welfare and in order to improve the quality of life of all, regardless of background.

To attain these objectives, CMUK organises regular seminars, study sessions for all age groups, as well as annual events such as public talks on Vedanta and cultural programmes including the celebration of festivals.

CMUK's operations are headquartered in Hendon, London (at "Chinmaya Kirti") but its activities are present in various parts of the UK.

The trustees have given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under the Charity Act 2011.

Significant events and highlights of the year are summarised below.

Regular classes and activities

2022 has been a significant year for CMUK, marked by a surge in engagement from the community with the reopening of our centre “Chinmaya Kirti” in April 2022. After two years of predominantly virtual events necessitated by the COVID-19 pandemic, an extensive renovation project to modernise and optimise Chinmaya Kirti has provided a strong foundation to engage both existing attendees and connect with new families.

The trustee vision is that Chinmaya Kirti becomes a thriving base for CMUK to continue to deeply enrich the lives of the community and future generations to come. We have seen in 2022, that through holding regular classes and activities at the centre, we have been able to consolidate the work of CMUK, renew our links with the community and open our doors to become more accessible to serve new members of the public, of all ages.

Chinmaya Kirti is a hub of activity with classes taking place daily at the centre for toddlers and parents, children, youth, adults and senior citizens every week. We have increased the aggregate number of weekly classes (around 50 in 2022) whilst ensuring we remain accessible to those around the UK who started attending our classes during the pandemic by having a “hybrid” option of attendance for some classes in-person and online.

The ‘wing’ of CMUK that has seen the most significant expansion and consolidation this year is ‘Bala Vihar’, our classes for children. Whilst online classes were held for children during 2020 and 2021, the impact felt limited for this younger age group and so returning to in-person classes at Chinmaya Kirti has been key for many families. Bala Vihar provides children an atmosphere to grow in self-confidence, with noble ideals and fulfil their potential. There are over 100 children attending classes in person each week, with classes sorted by age group supported by a multitude of enthusiastic teaching volunteers guiding the children through the Bala Vihar curriculum.

As well as regular study classes, another key offering on the annual calendar of CMUK is the celebration of festivals. With the exception of Mahashivaratri in February 2022, all festivals were celebrated in person at Chinmaya Kirti from April onwards, with an average attendance of 150 people per event.

The modernised Chinmaya Kirti now includes the ‘Shri Ram Mandir’ (temple) which has become the focus of spiritual activities including a daily arti, monthly offering of bhajans by Chinmaya Swaranjali (musical wing of CMUK), monthly Vedic chanting, pujas, religious ceremonies and celebration of festivals. The temple was consecrated on the auspicious occasion of Rama Navami on 10[th] April 2022 in the presence of Swami Swaroopananda, Global Head of Chinmaya Mission.

CHINMAYA MISSION (UK)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Visiting spiritual teachers

In acknowledgement of the immense benefit and value of being in the presence of a respected spiritual teacher, the trustees saw an opportunity to host the Global Head of Chinmaya Mission, Swami Swaroopananda for two visits in 2022, to have a more profound impact and connection for all wings and attendees of CMUK events.

The inauguration ceremony to reopen the newly renovated Chinmaya Kirti took place on 10th April 2022, in the presence of Swami Swaroopananda on the occasion of Rama Navami. The event was a momentous occasion, bringing together regular study class attendees, members of the public and dignitaries from partnering community organisations. The inauguration event was attended by over 300 people; there was a sense of community spirit and joyous celebration throughout the day, with many fellow spiritual students coming together in person after a long time. As part of this visit, Swami Swaroopananda conducted a series of 6 talks, on the topic of “Sundarkand”, based on key extracts from the Ramayana. Swami Swaroopananda was also present for the annual CMUK flagship festival celebration of Hanuman Jayanti with the chanting of the sacred Hanuman Chalisa mantra 51 times – a very successful event, with great feedback from all that attended.

Swami Swaroopananda returned to the UK in September 2022, for a packed schedule of events to accommodate and connect with attendees of all ages. The visit began with a family dinner including a special storytime session for children by Swami Swaroopananda. There was also a series of 2 evening talks open to all on the reflective topic “Mind And It’s Game”, a weekend residential youth retreat for 18 – 35 year olds on the topic of “Self-Mastery” followed by a 6 day residential course on “Make It Happen™”. This was the first time that Swami Swaroopananda conducted Make It Happen™ in the UK; this unique self-development programme, based on the wisdom of the scriptures and crafted by Swami Swaroopananda to cater to the modern individual was exceptionally well received by the 45 attendees ranging from government aides to successful entrepreneurs.

The role of CMUK’s resident teacher, Brahmacharini Shripriya Chaitanya (known as Shripriyaji) is now more prominent than ever before with Shripriyaji’s presence supporting every aspect of CMUK activities. Shripriyaji continues to be a source of inspiration and strength for CMUK, facilitating a significant number of adult classes on a weekly basis, leading assemblies for children attending “Bala Vihar” classes and supporting senior citizens as part of the ‘Chinmaya Vanaprastha Sansthan’ wing. Shripriyaji has also played a key role in every festival celebration in the year, expounding on the depth of meaning and significance of the occasion, renewing the enthusiasm of attendees for self-study and providing guidance and support to CMUK volunteers organising the events and leading each CMUK wing.

CHINMAYA MISSION (UK)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance

The trustees were delighted to welcome two new trustees to the CMUK Trust Board, Mita Samani and Jessica Schibli, having been nominated by Swami Swaroopananda. Both have been CMUK volunteers in a range of roles for the last two decades and have been dedicated in their contribution to CMUK and the community.

CMUK was given a prominent platform in the Diwali celebrations at 10 Downing Street in October 2022. Shripriyaji gave an introduction to the event, preceding the keynote by the newly appointed UK Prime Minister, Rishi Sunak. A small group of Bala Vihar children also played a key role in the event, chanting mantras while the Prime Minister lit the Diwali ‘diyas’ and garlanding the Prime Minister as a traditional welcome gesture.

The trustees have been very pleased to see all wings of CMUK thriving in 2022 and to see the newly renovated Chinmaya Kirti at the heart of activities and a hub for study class attendees and their families. In addition to existing classes for all ages and monthly Swaranjali bhajan sessions, other activities and initiatives have flourished with a significant uptake from the public – ranging from weekly yoga classes, monthly chanting sessions and community lunch on Sundays after Bala Vihar classes for families to feel connected to CMUK and each other. The centre is very much at the heart of the community in line with the trustee objectives for CMUK.

The CMUK bookshop has been reopened in person in 2022 and also continues to run online also. The trustees were very pleased to see a continued increase in 2022 in the reach and sales of Chinmaya Mission publications.

Financial review

CMUK maintains unrestricted funds which have not been designated for a specific use at a level equivalent to between three and six months’ expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue CMUK’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Total reserves including Restricted and Unrestricted funds stand at £3,966,950 at 31 December 2022 (2021: £3,450,381).

Risk management

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

The major risks, to which the charity is exposed, as identified by the Executive Committee, have been reviewed and systems have been established to mitigate these risks.

Outlook for the year ahead

The trustees plan for CMUK to continue to build on its offer of activities for the public in 2023 and continue to encourage each CMUK wing to flourish and thrive in order to “give maximum happiness to the maximum people for the maximum time” in line with the Chinmaya Mission motto. The trustees anticipate 2023 to be a year of consolidation and growth for CMUK, especially looking at opportunities to engage with youth through the CMUK “CHYK” wing for 18 – 35 year olds, expanding the education wing under the Chinmaya Academy label, as well as enhancing offering of the Bala Vihar classes for children.

The trustees will support CMUK wings to unite with innovation and creativity in spreading the teachings of Pujya Swami Chinmayananda for the betterment of society's wellbeing, mental health, and inner transformation. From 8[th] May 2023 to 8[th] May 2024, CMUK will be participating in the global Chinmaya Mission endeavour to celebrate the 108[th] birth anniversary of Pujya Swami Chinmayananda.

The trustees look forward to welcoming Swami Swaroopananda in 2023 as well as other visiting spiritual teachers.

Structure, governance and management

CMUK is an unincorporated charity which is governed and operated within the requirement set out in its constitution.

CHINMAYA MISSION (UK)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees and who served during the year were: S Swaroopananda S Wadhwani R Pattni R Mahtani (Retired 18 September 2023) S Patel D Budhrani N Sachdev (Resigned 10 June 2022) M Samani (Appointed 12 September 2022) J Schibli (Appointed 12 September 2022) L Shivakumar (Appointed 18 September 2023)

There is no formal membership for CMUK, which is open to all interested in furthering the objects of CMUK, within the requirements of CMUK's Constitution.

The President of CMUK is also the Head of the Central Chinmaya Mission Trust of Mumbai, India the central body of the Chinmaya Mission Worldwide.

The day to day management of CMUK in the UK has been delegated by the Trustees to the Executive Committee which during 2022 constituted S Wadhwani, R Pattni, R Mahtani, M Samani, J Schibli and S Patel. The Executive Committee is assisted in day to day operational matters by a working committee of volunteers.

CHINMAYA MISSION (UK)

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of Trustees responsibilities

The Trustees are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of CMUK and of the incoming resources and application of resources of CMUK for that year.

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of CMUK and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of CMUK and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

In relation to the financial statements set out on pages 9 to 23:

· The Trustees confirm that they have made available to KLSA LLP, all CMUK's accounting records and provided all the information necessary for the compilation of the financial statements.

S Wadhwani Trustee

4 October 2023

CHINMAYA MISSION (UK)

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CHINMAYA MISSION (UK)

Opinion

We have audited the financial statements of Chinmaya Mission (UK) (‘CMUK’) for the year ended 31 December 2019 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) 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 CMUK in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions 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 CMUK’s ability to continue as a going concern for a period of at least twelve 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

CHINMAYA MISSION (UK)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHINMAYA MISSION (UK)

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees 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 misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing CMUK’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through trustee’s bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the charity.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and Regulations. Our procedures involved: making enquiries of trustees, those responsible for legal and compliance procedures and reviewing other correspondence.

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CHINMAYA MISSION (UK)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHINMAYA MISSION (UK)

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Harsheel Dodhia (Senior Statutory Auditor) for and on behalf of KLSA LLP

4 October 2023

Chartered Accountants Statutory Auditor

Kalamu House 11 Coldbath Square London EC1R 5HL

CHINMAYA MISSION (UK)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
2
360,774
442,086
Income from charitable
activities
Residential retreats and
classes
3
46,935
38,465
Bookshop
3
19,310
-
Income from
investments
5
3,601
-
Other income
6
3
119
Total income
430,623
480,670
Expenditure on:
Raising funds
7
1,600
-
Expenditure on
charitable activities
8
266,737
126,388
Total expenditure
268,337
126,388
Net incoming resources
before transfers
162,286
354,282
Gross transfers between
funds
351,648
(351,648)
Net income for the year/
Net movement in funds
513,934
2,634
Fund balances at 1 January
2022
3,438,520
11,861
Fund balances at 31
December 2022
3,952,454
14,495		 Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
802,860
308,500
571,117
85,400
45,292
3,934
19,310
22,872
-
3,601
903
-
122
1,000
414
911,293
378,567
575,465
1,600
775
-
393,125
103,934
241,521
394,725
104,709
241,521
516,568
273,858
333,944
-
334,603
(334,603)
516,568
608,461
(659)
3,450,381
2,830,059
12,520
3,966,949
3,438,520
11,861		 Total
2021
£
879,617
49,226
22,872
903
1,414
954,032
775
345,455
346,230
607,802
-
607,802
2,842,579
3,450,381

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

CHINMAYA MISSION (UK)

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
12
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Restricted funds
18
Unrestricted funds		 2022
£
£
3,996,636
66,407
716,765
783,172
(23,055)
760,117
4,756,753
(789,804)
3,966,949
14,495
3,952,454
3,966,949		 2021
£
£
2,564,951
31,736
868,708
900,444
(15,014)
885,430
3,450,381
-
3,450,381
11,861
3,438,520
3,450,381		 2021
£
£
2,564,951
31,736
868,708
900,444
(15,014)
885,430
3,450,381
-
3,450,381
11,861
3,438,520
3,450,381
3,450,381
-
3,450,381
11,861
3,438,520
3,450,381

The financial statements were approved by the Trustees on 4 October 2023

S Wadhwani S Patel Trustee Trustee

CHINMAYA MISSION (UK)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 22 626,435 656,832
Investing activities
Purchase of tangible fixed assets (1,585,234) (1,160,238)
Investment income received 3,601 903
Net cash used in investing activities (1,581,633) (1,159,335)
Financing activities
Bank loans 803,255 -
Net cash generated from/(used in)
financing activities 803,255 -
Net decrease in cash and cash equivalents (151,943) (502,503)
Cash and cash equivalents at beginning of year 868,708 1,371,211
Cash and cash equivalents at end of year 716,765 868,708

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

CMUK is a charity registered with the Charity Commission since 30 September1999.

1.1 Accounting convention

These accounts have been prepared in accordance with UK Generally Accepted Accounting Practice, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, and the Charities Act 2011 as it applies from 1 January 2015. CMUK is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of CMUK. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the Trustees have a reasonable expectation that CMUK has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of CMUK's charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in note 21 to the accounts.

1.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities when:

Cash donations are recognised on receipt. Other donations are recognised once CMUK has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

The income from activities for generating funds is recognised in the period in which the relevant activity takes place.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by CMUK; this is normally upon notification of the interest paid or payable by the bank.

1.5 Resources expended

All expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered and is recognised when;

Costs of raising funds

Costs include those incurred in attracting donations, and those incurred in trading activities which are aimed at raising funds.

Governance costs

Costs associated with CMUK's constitutional and statutory requirements.

Support costs

The administrative and overhead costs associated with running CMUK's operations.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 2% on cost (building element only) Building Improvements 10% on cost Plant and machinery 33% on cost Fixtures, fittings & equipment 10% on cost

Freehold land and assets in the course of redevelopment are not depreciated. Depreciation will be charged on the cost of the redevelopment once it is complete.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, CMUK reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.9 Financial instruments

CMUK has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when CMUK becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Prepayments include bank arrangement fees and costs and are being amortised over the term of the loan.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when CMUK’s contractual obligations expire or are discharged or cancelled.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.10 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Donations and gifts 360,774 442,086 802,860 308,500 571,117 879,617

3 Income from charitable activities

Residential
retreats and
classes
Bookshop
2022
2022
£
£
Income from charitable
activities
85,400
19,310
Analysis by fund
Unrestricted funds
46,935
19,310
Restricted funds
38,465
-
85,400
19,310		 Total
Residential
retreats and
classes
Bookshop
2022
2021
2021
£
£
£
104,710
49,226
22,872
66,245
45,292
22,872
38,465
3,934
-
104,710
49,226
22,872		 Total
2021
£
72,098
68,164
3,934
72,098

4 Critical accounting estimates and judgements

In the application of CMUK’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. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Income from investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 3,601 903

6 Other income

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Other income
-
-
Sundry incomes
3
119
3
119		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
-
1,000
-
122
-
414
122
1,000
414		 Total
2021
£
1,000
414
1,414

7 Raising funds

Fundraising and publicity
Other fundraising costs		 2022
£
1,600
1,600		 2021
£
775
775

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Expenditure on charitable activities

Retreats and classes
Bookshop
Other donations
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 December 2021
Unrestricted funds
Restricted funds		 2022
£
84,694
3,935
92,284
180,913
208,552
3,660
393,125
266,737
126,388
393,125		 2021
£
20,144
10,712
241,521
272,377
69,744
3,334
345,455
103,934
241,521
345,455

Other donations consist of donation of £Nil (2021: £240,843) to Chinmaya Mission in India, donations of £52,198 (2021: Nil) to Chinmaya Vishwavidyapeeth and donations of £500 (2021: £Nil) to charities and events for charitable purposes within UK .

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from CMUK during the year.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10
Support costs
Depreciation
Rates and water
Insurance
Light and heat
Telephone and internet
Sundries
Cleaning
Finance costs
Repairs and
maintenance
Audit fees
Legal and professional		 Support
costs
Governance
costs
£
£
153,550
-
1,291
-
8,866
-
5,279
-
4,961
-
11,735
-
4,357
-
13,323
-
5,190
-
-
3,227
-
433
208,552
3,660		 2022Support costs Governance
costs
£
£
£
153,550
45,186
-
1,291
-
-
8,866
6,496
-
5,279
3,698
-
4,961
4,337
-
11,735
4,177
-
4,357
437
-
13,323
4,892
-
5,190
522
-
3,227
-
3,167
433
-
167
212,212
69,745
3,334		 2021
£
45,186
-
6,496
3,698
4,337
4,177
437
4,892
522
3,167
167
73,079

Governance costs includes payments to the auditors of £3,227 (2021: £3,167) for audit fees.

11 Employees

CMUK had no employees during the year (2021 - none).

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Tangible fixed assets

Cost
At 1 January 2022
Additions
Transfers
At 31 December 2022
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 Land and
buildings
Building
Improvements
£
£
1,750,863
210,591
-
-
1,027,860
1,017,378
2,778,723
1,227,969
438,354
167,785
34,479
69,864
472,833
237,649
2,305,890
990,320
1,312,509
42,807		 Plant and
machinery
£
81,044
10,354
79,086
170,484
80,322
15,646
95,968
74,516
722		 Fixtures,
fittings &
equipment
Development
work in
progress
£
£
120,842
1,202,352
1,769
1,573,111
651,139
(2,775,463)
773,750
-
114,279
-
33,561
-
147,840
-
625,910
-
6,562
1,202,352		 Total
£
3,365,692
1,585,234
-
4,950,926
800,740
153,550
954,290
3,996,636
2,564,951

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Tangible fixed assets

(Continued)

Freehold land and buildings with a carrying amount of £3,296,210 (2021: £1,398,119) have been pledged to secure borrowings of the charity.

The carrying value of freehold land, included in land and buildings, is £540,863 (2021:£540,863).

Land is not considered to be a depreciable asset and no depreciation is therefore provided.

13 Taxation

CMUK is exempt from tax on income and gains to the extent that these are applied to its charitable objects.

14 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2022
£
30,029
36,384
66,413		 2021
£
18,057
13,679
31,736

Prepayments include £18,476 (2021: £Nil) in respect of bank arrangement fees and costs in relation to granting of the bank loan. These costs are being amortised over the term of the loan.

15 Creditors: amounts falling due within one year

Notes
Bank loans
17
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Bank loans
17		 2022
£
13,451
2,544
7,060
23,055
2022
£
789,804		 2021
£
-
8,388
6,627
15,015
2021
£
-

The bank loan is secured by fixed charges over CMUK's freehold property.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

17 Loans and overdrafts

Bank loans
Payable within one year
Payable after one year		 2022
£
803,255
13,451
789,804		 2021
£
-
-
-

The bank loan is secured by fixed charges over CMUK's freehold property.

18 Restricted funds

The funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at 1 Incoming Resources Balance at 31
January resources expended December
2022 2022
£ £ £ £
Chinmaya University (251) 86,523 (86,149) 123
Chinmaya Kirti Modernisation 2,859 351,726 (354,502) 83
Other Projects 9,253 44,577 (39,540) 14,290
11,861 (480,670) (480,191) 14,495

Chinmaya University

This is an initiative in India to develop campus facilities for the Chinmaya University, a de novo university run by Chinmaya Mission UK for the furtherment of Indian Knowledge Traditions. Relevant donations and surpluses from events received by CMUK are paid over to the managing body for Chinmaya University in India.

Chinmaya Kirti Modernisation

This is the project to modernise the CMUK headquarters, the building called Chinmaya Kirti in Hendon, London. The project involves the restructuring of the layout of the entirety of the ground and first floors and the addition of a new floor to the building.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Restricted funds

(Continued)

Other projects

The balance on this fund represents donations made by donors for various specific activities.

Transfers between funds

The freehold properties along with the related fixtures and fittings have been shown as unrestricted fixed assets at 31 December 2022.

Where restricted monetary donations are received for the purpose of acquisition of fixed assets, they are treated as restricted until they are utilised for the stated acquisition and improvement. While the restrictions apply to the monetary donations, the properties themselves are not restricted. Therefore, the trustees consider it appropriate for the properties to be accounted for as unrestricted assets.

19 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
3,996,636
-
Current assets/(liabilities)
745,550
14,496
Long term liabilities
(789,804)
-
3,952,382
14,496
Analysis of changes in net debt
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year		 Total
Unrestricted
funds
2022
2021
£
£
3,996,636
2,564,951
760,046
873,568
(789,804)
-
3,966,878
3,438,519
At 1 January
2022
£
868,708
-
-
868,708		 Restricted
funds
Total
2021
2021
£
£
-
2,564,951
11,861
885,429
-
-
11,861
3,450,380
Cash flows At 31 December
2022
£
£
(151,943)
716,765
(13,451)
(13,451)
(789,804)
(789,804)
(955,198)
(86,490)

20 Analysis of changes in net debt

21 Related party transactions

No trustee or key management personnel received any remuneration during the year. The trustees claimed expenses totalling £Nil during the year (2021: £519). No trustee or other person related to the charity had any interest in any contract or transaction entered into by the charity during the year or the preceding year. Other than the trustees above the charity does not consider itself to have any other key management personnel.

CHINMAYA MISSION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

22
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in Statement of Financial Activities
Depreciation of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2022
£
516,568
(3,601)
153,550
(34,671)
(5,411)
626,435		 2021
£
607,802
(903)
45,186
4,250
497
656,832