## **THE PAKHAR FOUNDATION** **TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** **REGISTERED CHARITY NO: 1091409** ## **THE PAKHAR FOUNDATION** ## **TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## **CONTENTS** ||Page| |---|---| |Reference and administration information|1| |Trustees’ report|2 – 6| |Independent examiner’s report|7| |Statement of financial activities|8| |Balance sheet|9| |Notes to the financial statements|10 – 12| **THE PAKHAR FOUNDATION REGISTERED CHARITY NO. 1091409 REFERENCE AND ADMINISTRATION INFORMATION** ## **Trustees** ## **Charity Correspondents** T T Singh S L Singh A M Singh R L Wood S J Cook R P Singh Miss S J Cook Morley House 36 Acreman Street Sherborne Dorset DT9 3NX ## **PROFESSIONAL ADVISORS** ## **Bankers** ## **Independent Examiner** Barclays Bank Plc Barclays Private Bank One Stanhope Gate London W1K 1AF R Oram BFP FCA Albert Goodman LLP Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX -1- **THE PAKHAR FOUNDATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021** The Trustees present their report and financial statements for the year ended 5 April 2021. The reference and administration information set out on page 1 forms part of this report. ## **Structure, governance and management** ## **Constitution** The Pakhar Foundation was constituted by Trust Deed on 25 February 2002 as amended 28 April 2015. It was registered with the Charity Commission on 26 March 2002, registered charity number 1091409. ## **Recruitment, appointment and training of Trustees** In selecting persons to be appointed as trustees, the Trustees take into account the benefits of appointing that person and the contribution that they can make to the Charity. There shall be at least two trustees. The statutory power of appointing new trustees shall be exercisable. Training and educational courses are identified by the Trustees and attended as appropriate. Publications with news and updates are also received and distributed. ## **Risks** During the year the Trustees undertook a thorough assessment of the major risks to which the Charity is exposed. Procedures and strategies were implemented to minimise these risks where not already in place. The key risks identified are external and relate to how the financial climate affects charitable giving and the security of the Charity’s assets. The Trustees continue to mitigate against these risks through regular meetings with their external consultants of more than 10 years, iPartner India to review the Charity’s activities and strategies. The Trustees have also utilised the consultancy services of Giving Evidence to evaluate, review and monitor the direct donations made to ARK India (Peepul), Project ECHO and Akshaya Patra during the year. The Trustees also utilise the expertise from its external investment and banking advisors in order to safeguard the Charity’s assets and consider alternative options. The Trustees have a policy of seeking external legal advice for matters of a legal nature. Controls and procedures are regularly reviewed by the Trustees and updated as necessary. This includes protecting against fraud through approval procedures for all payments and receipts and ensuring rigorous controls on bank accounts through appropriate signatory mandates. ## **Objectives and activities** ## **Objectives** The Trustees shall hold the trust fund and its income upon trust to apply them in India and elsewhere for such charitable purposes as the Trustees in their absolute discretion deem fit. The mission statement of the Charity is “To support charitable projects, largely in India, mainly focussed on health and education”. ## **Achievements and performance** The Charity received £262,500 in donations and associated Gift Aid during the year (2020: £284,969). The Charity receives donations from private sources and grants are awarded to individuals and institutions in furtherance of the Charity’s charitable objects and taking due consideration of the Charity Commission published guidance on the operation of Public Benefit requirements. This includes small and medium-sized grants to India based institutions, in the field of education and health. Potential recipients of grants are assessed on a number of criteria in key areas and a scorecard approach is used to measure them. These areas are impact, scalability, sustainability, governance and innovation. These are identified by a consultant who then presents to the Trustees who consider the level of grants to be made. During the year donations were made by The Pakhar Foundation for the benefit of these chosen recipients as detailed in this report. Regular reports were received and discussions conducted between the Trustees, consultant and recipients to monitor and assess the effectiveness of the grants. -2- **THE PAKHAR FOUNDATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021** The grants awarded have helped achieve the following: Udayan Care – The income of the Shalinis parents were severely affected by lockdown, as they are all daily wage migrants and labourers. Support from The Pakhar Foundation enabled Udayan Care to provide immediate assistance to the families of the girls. JamGhat Shelter Homes – Aman and Aanchal shelter homes provide education, nutrition, health care and vocational support for homeless girls and boys. The grant from The Pakhar Foundation has enabled the employment of an organisational development specialist who ensured that they complied with all governance and compliance factors to enable them to apply for funding from Trusts and Foundations. Pardada Pardadi Education Society (PPES) – COVID-19 has had a detrimental impact on the income of many, already very poor, families. More girls are under increased pressure to leave education and either marry or work to supplement the family income. Essential rations were provided to over 800 families in the rural district of Bulandshahr, to enable the girls to continue their education. Jamghat-Ekjut – Providing training to the mothers of street children in their Vocational Training Centre. Women are employed in the centre to stich good quality cloth bags, made from unused/waste cloth from companies that manufacture garments. Post lockdown the women returned to make face masks, but Jamghat have struggled to market them. Basic food rations were provided to the women who were employed at the centre, to ensure that they and their families did not starve during their lockdown period. CECOEDECON (Rakshan) – Emergency food rations were provided to families across the 27 villages that Rakshan operates in. Despite the challenges of the pandemic, the project has continued to support secondary education for secondary school dropouts and scholarships for adolescents. Azad Foundation – Due to the lockdown, hundreds of drivers who were the sole earners for their families, lost their livelihood overnight. The drivers started delivering rations to migrants and delivering pharmaceuticals. The grant from The Pakhar Foundation assisted in providing emergency food rations and contributed towards the cost of making the vehicles COVID compliant. Prerana (providing a safe night shelter for children of sex workers) – Within a week of the lockdown the sex workers were seriously indebted to their pimps and had no means to pay rent or buy basic rations. The law mandated that the night shelters closed. The grant from The Pakhar Foundation helped to provide basic food rations to the families of the children enrolled in the night shelters. The grant also helped Prerana to set up micro enterprises (such as small shops selling vegetables and street food) to enable the sex workers to earn a living. -3- **PAKHAR FOUNDATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021** Material Grants to Institutions: |Material Grants to Institutions:||| |---|---|---| |Donations under iPartner
Udayan Care
JamGhat
PPES
Educate Girls
Jamghat-Ekjut
CECOEDECON
Azad Foundation
Prerana
Rakshan
Pakhar Foundation – Direct Donations
ARK India (Peepul)
Project ECHO
Goonj
Akshaya Patra
Other institutions
Total|**2021**
£65,407
£37,156
£58,183
£3,246
£36,530
£54,836
£57,638
£29,178
£15,000
£50,000
£25,000
£50,000
£115,000
£23,730
£620,904
£597,174|**2020**
£33,430
£18,961
£38,251
£16,606
£20,574
£18,788
£24,976
£15,369
£Nil
£50,000
£25,000
£Nil
£Nil| |||£261,955| |||£2,623| |||£264,578| The grants awarded were to help the beneficiaries achieve the following: _Udayan Care_ To provide scholarships to talented Indian girls. _JamGhat_ To provide shelter and protection for street children of Delhi. _PPES_ To provide educational and vocational training to girls in the rural district of Bulandshahr. - _Educate Girls_ To tackle issues at the root cause of gender inequality in India’s education system. Support for this project ended during the year. - _CECOEDECON_ To provide safe space for children in Malpura Block in Rajasthan’s Tonk District, where it is commonplace for tribes to sell young girls into prostitution as soon as they reach puberty. A holistic approach is used to increase educational levels and improve health conditions for girls and boys while also providing rural youth, women and men with alternative livelihood opportunities. _Jamghat Ekjut_ To provide training to the mothers of street children to give them the potential to earn money rather than begging on the streets. - _Azad Foundation_ The ‘Women on wheels’ programme is the first initiative of its kind in India which trains women between the ages of 18 – 35 to become professional chauffeurs and taxi drivers. These women are from the slums and other poor backgrounds in various cities. - _Prerana_ To offer the children of sex workers the opportunity of an alternative life. A life where their rights are protected, choices are created, and dignity is restored. Prerana offers shelter and a safe place to sleep for children of victims of commercial sexual exploitation. -4- **THE PAKHAR FOUNDATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021** _Rakshan_ To support secondary education for school dropouts and scholarships for adolescents across 27 villages of Rajasthan. _ARK India (Peepul)_ To transform lives through education. _Project ECHO_ To improve healthcare for rural areas in India. This grant was awarded specifically to extend work in palliative care. _Goonj_ To help provide disaster relief, humanitarian aid and community development in parts of 23 states across India. _Akshaya Patra_ To counter classroom hunger and aid in education of children in India. ## **Public benefit** The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities. ## **Plans for the future** The Trustees, with the aid of consultants, have reviewed the future grant-making strategy and beneficiaries have been identified. An appropriate system for monitoring grants has been put in place. ## **Financial review** ## **Financial results** Total net movement of funds for the year amounting to a deficit of £397,614 (2020: £20,629 deficit) have been transferred to the accumulated funds of the Charity. ## **Reserves** The reserves of the Charity at the period end that are freely available for charitable use amounted to £520,771 (2020: £918,385). It is the Trustees’ policy to apply the reserves in grants. The incidence of grants is uneven and reserves are therefore held to meet need as it arises. £139,297 in grants has been distributed from reserves after the year end. -5- **THE PAKHAR FOUNDATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021** ## **Statement of Trustees’ responsibilities** The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements 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 financial statements for each financial year that give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. 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; - make reasonable and prudent judgements and estimates; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements 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 the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. S J Cook Trustee 29 January 2022 -6- ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE PAKHAR FOUNDATION** I report to the Trustees on my examination of the accounts for The Pakhar Foundation (“the Charity”) for the year ended 5th April 2021. ## **Responsibilities and basis of report** As the charity Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the accounts do not comply with these records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a “true and fair view” which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Robert Oram BFP FCA Albert Goodman LLP Chartered Accountants Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX 31 January 2022 -7- ## **THE PAKHAR FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021** **----- Start of picture text -----**
Unrestricted Unrestricted
and Total and Total
Notes Funds 2021 Funds 2020
£ £
Income and endowments from:
Donations and legacies 2 262,500 284,969
Total income 262,500 284,969
Expenditure on:
Charitable activities 3 660,114 305,598
Total expenditure 660,114 305,598
Net movement in funds (397,614) (20,629)
Reconciliation of funds:
Total funds brought forward 918,385 939,014
Total funds carried forward 520,771 918,385
**----- End of picture text -----**
-8- ## **THE PAKHAR FOUNDATION BALANCE SHEET AS AT 5 APRIL 2021** **----- Start of picture text -----**
Unrestricted Unrestricted
and Total and Total
Notes Funds 2021 Funds 2020
£ £
Current assets
Debtors 5 168,708 155,255
Cash at bank and in hand 397,491 765,110
566,199 920,365
Liabilities
Creditors: Amounts falling due
within one year 6 45,428 1,980
Net current assets or liabilities 520,771 918,385
Total net assets or liabilities 520,771 918,385
The funds of the charity
Unrestricted funds 520,771 918,385
520,771 918,385
**----- End of picture text -----**
Approved by the Trustees on 29 January 2022 and signed on their behalf by: S J Cook Trustee -9- **THE PAKHAR FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## **1 Accounting policies** ## **Basis of preparation** The financial statements have been prepared under the historical cost convention and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)). The Charity meets the definition of public benefit under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements have been prepared on a going concern basis as there are no material uncertainties about the Charity’s ability to continue operating. ## **Fund accounting policy** Unrestricted Funds – The funds are held so that they can be used in accordance with the Charity’s objects at the discretion of the Trustees. ## **Income** Income is recognised in the period in which the Charity is entitled to receipt and the amount can be measured with reasonable certainty. Donations and any associated income tax reclaimable from H M Revenue & Customs are recognised on a receivable basis. ## **Expenditure** Resources expended are accounted for in the period in which they are incurred. The irrecoverable element of VAT is included within the item of expense to which it relates. Where an item of expenditure falls directly within one cost category, it is attributed to that category only. Where expenditure involves more than one category it is apportioned on a reasonable and justifiable basis. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. Grants payable are payments made to individuals and institutions in furtherance of the Charity’s charitable objectives. Grant awards are subject to the recipient fulfilling performance conditions or to support them over a set period. Grants are accrued when the recipient has fulfilled the conditions or over the period of support. ## **Cash and bank in hand** Cash at bank and in hand comprise of cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Creditors** 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 party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. -10- **THE PAKHAR FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** ## **Financial instruments** The charity only holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the charity and their measurement basis are as follows: Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Cash at bank is classified as a basic financial instrument and is measured at face value. Prepayments are not financial instruments. Financial liabilities – trade creditors and accruals are financial instruments and are measured at amortised cost. Deferred income is not deemed to be a financial liability as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. ## **2 Donations and legacies** **----- Start of picture text -----**
2021 2020
£ £
Donations and legacies 210,000 229,969
Gift Aid receivable 52,500 55,000
262,500 284,969
**----- End of picture text -----**
|**3**|**Charitable activities**||| |---|---|---|---| ||**Charitable grants**
**Direct costs**
Charitable donations (Detailed in Trustees' Annual Report)
**Support costs**
Consultancy fees
Professional fees
Governance costs
Governance costs
Independent examiners remuneration - independent examination|**2021**
**£**
620,904
32,236
4,800
2,174
660,114
2,174
2,174|**2020**
**£**
264,578
36,710
1,950
2,360| ||||305,598| ||||2,360| ||||2,360| ||||| ## **4 Staff costs and Trustees’ emoluments** There were no employees throughout the year (2020: None). None of the Trustees received remuneration for their work as trustees or were reimbursed any expenses by the Charity (2020: £Nil). -11- **THE PAKHAR FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021** **----- Start of picture text -----**
5 Debtors
2021 2020
£ £
Gift Aid recoverable 148,750 96,250
Prepayments 19,958 59,005
168,708 155,255
6 Creditors – amounts due in less than one year
2021 2020
£ £
-
Accrued grants payable 43,328
Accruals 2,100 1,980
45,428 1,980
7 Financial instruments
Categorisation of financial instruments
2021 2020
£ £
Financial assets that are debt instruments measured at amortised 546,241 861,360
cost
546,241 861,360
Financial liabilities that are at amortised cost 45,428 1,980
45,428 1,980
**----- End of picture text -----**
Total interest income for financial assets not measured at fair value through the SOFA is £Nil (2020: £Nil). This is also the total income from financial assets and liabilities. There have been no expenses, gains or losses associated with financial instruments during the year (2020: £Nil). -12-