Company No: 04708800
Registered Charity No. 1099386
PRATHAM UK
A COMPANY LIMITED BY GUARANTEE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
|INDEX|Page|
|---|---|
|Company information|1|
|Report of the directors|2 -8|
|Independent auditor
’s report|9-11|
|Statement of financial activities|12|
|Balance sheet|13|
|Statement of Cash flows|14|
|Notes to the financial statements|15-23|
|Company number|:||04708800||
|---|---|---|---|---|
|Charity registration number|:||1099386||
|Name of trustees|:||Sakate Khaitan|Chairman|
||||Ravi Rajgopal||
||||Alka Deol (resigned 28 October 2020)||
||||Avinash Vazirani||
||||Karthic Jayaraman||
||||Ashok Vaswani||
||||Charu Sarma||
||||Dinyar Devitre||
||||Dixit Joshi||
||||Ritu Kapoor (resigned 13 May 2020)||
||||Sam Tully||
||||Sanjeev Dhuna (resigned 22 April 2021)||
||||Saurav Chopra||
||||Suresh Kanwar||
|Company Secretary|:||Vinati Sukhdev||
|Registered office|:||Suite 21||
||||Vicarage House||
||||58-60 Kensington|Church Street|
||||London W8 4DB||
|Bankers||:|HSBC||
||||92 Kensington High Street||
||||Kensington||
||||London W8 4SH||
||||ICICI Bank UK||
||||1 Thomas More Square||
||||Thomas More Street||
||||London E1W 1YN||
|Independent auditor|:||Goldwins Chartered Accountants||
||||75 Maygrove Road||
||||West Hampstead||
||||London NW6 2 EG||
The trustees present their annual report together with the financial statements for the year ended 31 March 2021. The trustees confirm that the annual report and financial statements of the company comply with the cu rrent statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by update Bulletin 1 (effective 1 January 2015).
Details of officers and professional advisers are set out on page 1.
Pratham UK is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 24 March 2003 as amended by Special Resolution on 21 June 2019. It is registered as a charity with the Charity Commission.
The organisation is governed and overseen by its trustees who are also directors of the company.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit. The objectives of the charity as stated in its constitution, as amended by special resolution on 21 June 2019, are to advance education amongst persons living in developing countries, especially but not exclusively working with children within slum communities in India.
> Prath am is one of India’s largest NGOs providing quality education to underprivileged children in India through low cost, scalable methods and works in collaboration with the government, local communities, parents, teachers and volunteers across the country. In a year when the Coronavirus pandemic reshaped the education landscape by forcing school closures, Pratham had to adapt to the new reality and contain the impact of school closures and disrupted lives by bringing engaging activities and new learning opportunities to children and youth.
Pratham’s 2020 campaign was called “Karona Thodi Masti Thodi Padhai” . For the past year, Pratham has worked effectively to reach children, families and communities; by combining our pre-existing community structures with our digital resources. Messages were sent via phone (SMS and WhatsApp), and phone calls were made to individuals and groups for feedback and follow up. Using digital technologies old and new, over the last twelve months, we were able to build a robust network of participants and learners across more than 10,000 rural and urban communities and 600 partner organizations. Fourteen state governments used our digital content in different ways.
Pratham’s vocational training activities pivoted from in-person training models to remote and hybrid strategies, ensuring that youth continue to learn and grow even in the face of the pandemic. Through a variety of platforms and activities, Pratham reached out to youth who were just entering the workforce, as well as, to experienced workers in need of upskilling or certification. Pratham’s “Dekho ~~-S~~ eekho ~~-P~~ arkho” training model not only utilized existing communication platforms such as YouTube, WhatsApp, and Facebook Workplace to engage with the learners, but also allowed for “human contact” and practical experience, to help ease learners into this new method of skilling. Over the past twelve months, Pratham trained 35,000+ youth through virtual courses and 20,000+ through practical sessions. Of those trained, over 12,000 were placed in jobs.
Through this period, Pratham also focused on building capacity of our teams to operate in this “new normal” and have learned a lot along the way to inform the strands of response to the current crisis.
The trustees meet regularly to manage and review the activity and direction of the charity.
The charity ’s main resources are currently directed at fundraising within the United Kingdom and using partner organisations to fulfil its charitable objectives as this makes efficient use of the partner organisati on’s local knowledge.
During the period under review, the trustees of Pratham UK cemented the position of preeminence the charity enjoys amongst the Indian community and extended awareness to other communities within the UK.
Continuing initiatives included:
- Database expansion and donor engagement through a series of virtual salons: we hosted Indian cricket coach Ravi Shastri, Hindustan Unilever Chairman and Managing Director Sanjiv Mehta, Bollywood Star Ranbir Kapoor and ace equity investor Rakesh Jhunjhunwala.
- Fundraising continued through applications to foundations and trusts as well as virtual engagement with HNWIs
- New partnership forged with University of Southampton India Centre. Partnership continued with London Business School and Indian Professionals Forum -their member base was invited to sign up for our salons.
- Cooperation with Pratham USA continued through shared hosting of virtual events, collaboration on the technical aspects of the new Pratham UK website and sharing of resources to achieve economies of scale
- Social media ads and boosted posts were used to engage younger donors; a young professional's group with over 300 members was created on Linked In
Trustees of Pratham UK are elected by a majority vote by the existing body of trustees after being nominated by an existing trustee or any volunteer of Pratham UK and (if required) after conducting informal or formal meetings with candidates to assess their interest and suitability. Upon induction, new trustees are given a standard pack on Pratham UK which includes: -
- Articles of Association;
- Latest audited accounts including the trustees’ report which has outline plans for next year; Pratham UK brochure and other information
New trustees are familiarised with the various functions performed by the Pratham UK Board and are then assigned specific roles and responsibilities.
For the year ending 31 March 2021 Pratham UK had a gross income of £372,166 (2020£568,498). These funds, both solicited and unsolicited, arose from a broad set of donors including Individuals, Trusts and Corporations. Activities included virtual events held during the year. The major categories of donations are shown below;
|Donations and Legacies|Donations and Legacies|Donations and Legacies|Donations and Legacies||136,862|
|---|---|---|---|---|---|
|Charitable activities|||||63,950|
|Other trading activities|||||49,038|
|Other income|||||18,092|
|Total|Total Donation|Received ~~— ~~Unrestricted
267,942||||
|Donation Received ~~-~~Restricted||||||
|Second Chance and other programmes||Second Chance and other programmes
104,224||||
The net deficit for year ended 31 March 2021 after charitable donations was £380,616 (2020 surplus of £107,076).
- The charity has contributed £567,799 (2020 £163,410) to Pratham led Trusts to deliver child education.
|Restricted Funds|£|
|---|---|
|Pratham Education Foundation India|239,799|
|Unrestricted Funds||
|Pratham Education Foundation India|328,000|
Pratham agreed that its free reserves should cover twelve months of support costs. In respect of the current year this would mean there should be set aside reserves of around £150,000. At the year-end Pratham UK held reserves of £177,094 2019- £557,710). Of these reserves £177,094 (2020- £425,710) are available as general reserves and Nil (2020 - £132,000) were restricted reserves as at the year end.
Apart from this, it is the current view of the trustees that reserves at the end of the year are adequate to cover deposits and outlay for the following y ear’s expenses as well as incidental expenses for at least a twelve-month period. It is the view of the trustees that in the context along with proposals for 2021/22, a reserve fund of £150,000 will be adequate to meet the
Despite a difficult environment with the pandemic, Pratham UK continued to steadily adapt and pivot to the new reality.
1. Virtual salons replaced in-person events to engage donors with highly successful ones being organized and attended. Monetisation of these salons provided a new income stream
2. We took part in the Twopointsixchallenge organised by British Charities to engage our donors early in the lockdown and raised almost £4000
3. The Big Give Christmas Challenge successfully raised £40000 in December 2020
4. Continued engagement with corporate donors such as Nordgreen led to larger donations while a new corporate tie-up with Mailzee was secured. They will donate a percentage of their sales of clothes collections from their newly launched brand ‘This is Unfolded’ through the year
5. A series of policies to further professionalise the Charity were adopted by the board
6. We continued to tell the story of the Pratham response to Covid 19 through the newsletter and social media posts
- As the world adapts to the new normal, seek ways to engage with donors in a safe environment
- Diversify income stream through donations from Foundations and Trusts Continue to strengthen the support infrastructure in the office including website development, social media and Salesforce, communications and PR Seek new ways to expand the database within the current regulatory framework Strengthen the Young Professionals model by recruiting more donors to the Club. Reach out to partner associations such as Indian Partnership Forum to offer our members more events and networking opportunities
- Hold a fundraising Gala in October 2021 in India;
Pratham is reliant on a very large number of individuals who are committed volunteers and who are absolutely vital for the whole range of operations Pratham undertakes. The trustees wish to thank all people who have volunteered, contributed or supported Pratham UK in any way during the year.
The trustees of Pratham UK confirm that they have complied with the duty in section 17 of the
Pr atham’s m__ issi on is “Every Child in School and Learning Well’ All our charitable activities focus on a goal of erasing illiteracy and teaching basic writing and arithmetic skills to India’s 100 million underprivileged children. The activities we usually have throughout the year include social events, smaller dinners and sporting events to raise awareness and bring in much needed funds. After events-related costs and support costs incurred are deducted, all money raised at Pratham UK goes directly to the programmes in India and makes a difference to millions of children all across India. This year the in-person events were replaced by virtual events. With more than 300 million learners in India being out of school due to the pandemic lockdown it is vital to ensure continuity in education. Many of these children are first-generation students from extremely poor households; which makes them particularly vulnerable to interruptions in their education. If the current situation continues, increase in inequality and less social mobility are the predicted long-term outcomes. This makes Pratham’s digital interventions more important than ever. We are pleased to report that Pratham in India has used a variety of methods - conventional and innovative - to provide opportunities for engagement and learning. The challenges of working in a country where technology and digital literacy are not available in every household has not held Pratham back from reaching out to more than 12,000 beneficiary communities on a daily basis.
The organisation is founded on the firm belief that education is the fundamental right of every child and no child should be deprived of this basic right simply because he/she does not have access to it or does not have the resources to realise his/her dreams. Therefore, all our programmes are designed to ensure that enrolment in schools which is currently at 97% results in better learning and Pratham intervention models are replicated and scaled up to serve large numbers of children to achieve a large-scale impact.
FY 20-21 was particularly challenging because of the pandemic. Though temporary, school closures have a significant impact on students, even more so in vulnerable and underprivileged contexts. In these times, it is important to engage children in activities that bring down stress, take minds off the crisis and gradually create an environment where learning can continue...
We have partnered with state government education departments in developing technology solutions to engage children and teachers through online platforms.
Pratham digital resources provide children access to engaging learning content. Currently we have 3000+ videos, 400+ games, 200+ stories and 3 learning applications across 12 languages.
Pratham safety videos and educational content on handwashing and mask wearing has benefited 12000 communities.
- In the second wave starting April 21, Pratham has concentrated on building up the communities it serves through the following:
- Securing and delivering oxygen concentrators as well as rapid tests, vaccines, and personal protective equipment (PPE) to Indian hospitals and care centres. Exploring the conversion of Pratham vocational training centres and district offices into alternate facilities for Covid treatment.
- Coordinating field response teams to aid in the distribution of supplies and ensuring relevant and timely dissemination of accurate information.
The trustees have undertaken a risk assessment for the charity encompassing all potential areas of risk and review this periodically. In light of Brexit and the recent economic situation brought about by the pandemic the officers of the charity have re-evaluated matters and will ask the trustees to formally adopt a revised risk policy to reflect the current circumstances, matters will be kept under close review so that the charity can respond appropriately at all times. Generally, the trustees are satisfied that the operating systems and procedures are in place to mitigate our exposure to the major risks.
Each of the persons who are confirmed that:
- so far as we are aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and the trustees have 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 establish that the charity's auditor is aware of that information.
The auditor, GOLDWINS LTD has indicated its willingness to continue in office. The designated trustees will propose a motion re-appointing the auditor at a meeting of the trustees.
The funding of the charity will continue to be reviewed. The trustees expect to make further donations to their partner organisations to achieve their goals of providing quality education to underprivileged children and help make a difference through educating children.
GBP200,000 of unrestricted funding was sen t to fund Pratham’s activities in India ~~—~~ this payment should have gone in the FY 2019-20 but was delayed because of banking difficulties at the start of the pandemic. On August 18, GBP102,000 was sent to India- being proceeds from a charity auction conducted by Cornerstone Sports Management at an event held at Lords Cricket Ground on May 21,2019 in London. The funds were received by Pratham UK on August 10, 2020. On 14[th] December, 2020 a further GBP 100,000 was sent to Pratham in India and the final payment for this financial year was made on 22/23 March 2020 totalling GBP137,799 being restricted funding for Second Chance as well as other programmes. A further INR 862,850 was directly donated in India through Pratham UK affiliated donors and $5000 through Pratham Australia. GBP 28000 which was donated by UK donors was paid through the corpus of the UBS Optimus Foundation grant.
This report was approved by the board of trustees and signed on its behalf.
Date:
We have audited the financial statements of Pratham UK for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, statement of cash flows and the related notes. 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:
- March
- 2021 and of 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.
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 ancial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to 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.
In auditing the financial statements, we have concluded that the trustees 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 charity’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 directors with respect to going concern are described in the relevant sections of this report.
The trustees are responsible for the other information. The other information comprises the report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 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 misstatement 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 that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
- financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report (incorporating the directors’ report) ha s been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
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 they 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 the Charity’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 liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
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 are set out below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to: identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: [www.frc.org.uk/auditorsresponsibilities]. This
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 charity’s members those matters we are required to state to them in an auditor’s report and for no oth er purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
## (incorporating an income and expenditure account)
**----- Start of picture text -----**
||||||||||
|---|---|---|---|---|---|---|---|---|
|2021|2020|
|Unrestricted|Restricted|Total|Total|
|funds|funds|funds|funds|
|Notes|£|£|£|£|
|Income|from:|
|Donations and legacies|3|136,862|-|136,862|148,315|
|Charitable activities|4|63,950|104,224|168,174|361,800|
|Other trading activities|5|49,038|-|49,038|56,320|
|Investment income|2,063|
|Other income|18,092|-|18,092|-|
|Total|income|267,942|104,224|372,166|568,498|
|Expenditure|on:|
|Raising funds|23,639|-|23,639|242,258|
|Charitable activities|492,919|236,224|729,143|219,164|
|Total|expenditure|7|516,558|236,224|752,782|461,422|
|Net (expenditure)|/ income|before|net|gains|/|
|(losses)|on|investments|(248,616)|(132,000)|(380,616)|107,076|
|Net gains / (losses) on investments|-|
|Net (expenditure)|/ income|for the|year|8|(248,616)|(132,000)|(380,616)|107,076|
|Transfers between funds|-|-|-|
|Net movement|in|funds|(248,616)|(132,000)|(380,616)|107,076|
|Reconciliation|of funds:|
|Total funds brought forward|425,710|132,000|557,710|450,634|
|Total|funds|carried|forward|15|177,094|-|177,094|557,710|
**----- End of picture text -----**
There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.
Pratham UK
Balance sheet
As at 31 March 2021
2021
2021
2020
2020
Note
Fixed assets:
Tangible assets
495
Current assets:
Debtors
Cash at bank and in hand
12
9,180
178,173
187,333
190,394
416,730
607,124
Liabilities:
Creditors.. amounts falling due within one year
13
110.7341
149,4141
Net current assets
176,599
557,710
Total net 8ssets
177,094
557,710
Funds
Restricted funds
Unrestricted funds
15
132,000
425,710
177,094
Total funds
177,094
557,710
The financial statements have been prepared in accordance with the special provisions for small companies
under Part15 of the Companies Act 2006.
Approved by the Iruslees on
and signed on their behalf by..
K Jayaraman
Trustee
Company registration no. 04708800
The 8tt8ched note5 form part of the financial ststements.
13
|||||||||||||||||||||||||Note|Note|Note|||2021|2021||2020|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Cash flowsfrom||||||||operating||||||activities:||||||||||||||||£||£|
|Netcash provided by /(used in)|||||||||||||||||||||||||||||||||
|operating activities|||||||||||||||||||||||||a||||(237,814)|||133,789|
|Cash flowsfrom||||||||investing||||||activities:|||||||||||||||||||
|Sale/ (purchase) of fixed assets||||||||||||||||||||||||||~~_—__(743)~~|||||-
~~_—____~~||
|Cash provided|||||||by /(used in) investing||||||||||||||||activities||||||(743)|||-|
|Change in||||cash and cash equivalents in|||||||||||||||||||||||||||||
|theyear|||||||||||||||||||||||||||||(238,557)|||133,789|
|Cash and cash equivalents at the||||||Cash and cash equivalents at the|||||||||||||||||||||||||||
|beginning of the year|||||||beginning of the year||||||||||||||||||||||416,730|||282,941|
|Cash and cash|||||||equivalents attheend|||||||||||||end of|||||||||||||
|theyear|||||||||||||||||||||||||b||||178,173|||416,730|
|(expenditure)|||||to|||netcash flowfrom||||||||from|||||||||||||||||
|operating activities|||||||||||||||||||||||||||||2021|||2020|
|||||||||||||||||||||||||||||||£||£|
|Net income / (expenditure) for the reporting|||||||||||||||||||||||||||||||||
|period (as per the statement of financial|||||period (as per the statement of financial|||period (as per the statement of financial||||||period (as per the statement of financial|||||||||||||||||||
|activities)|||||||||||||||||||||||||||||(380,616)|||107,076|
|Depreciation||||||||||||||||||||||||||||||248||-|
|Decrease / (Increase) in debtors||||Decrease / (Increase) in debtors|||||||||||||||||||||||||181,234|||(7,473)|
|Increase / (decrease) in creditors|||Increase / (decrease) in creditors||||||||Increase / (decrease) in creditors||||||||||||||||||(38,680)|||34,186|
|Netcash provided by /(used in)|||||||||||||||||||||||||||||||||
|operating activities|||||||||||||||||||||||||||||(237,814)|||133,789|
|Analysis|Analysis|Analysis|ofcash|||||and cash||||||equivalents||||||||||||||||||At|
|||||||||||||||||||||||||||At 1 April|||||Other|31 March|
|||||||||||||||||||||||||||2020|||Cash flows||changes|2021|
|||||||||||||||||||||||||||£||||£|£|£|
|Cash at bank and in hand||||||||Cash at bank and in hand||||||||||||||||||416,730|416,730|416,730|(238,557)|(238,557)|~~-~~|178,173|
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 - effective 1 January 2015) - (Charities SORP FRS 102) and the Companies Act 2006.
Pratham UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
The financial statements are prepared in sterling, which is the functional currency of the charity. Transactions in foreign currency are translated into Sterling at the rate applying on the date of transaction. Balances denominated in foreign currencies are translated into Sterling at the rate of exchange running at the balance sheet date. Monetary amounts in these financial statements are rounded to the nearest £. All exchange differences are dealt with in the statements of financial activities.
The company is registered in England and Wales and address of its registered office is Suite 21, Vicarage House, 58-60 Kensington Church Street, London, W8 4DB.
The biggest challenge that charity faced towards the end of this financial year has been the COVID-19 crisis.The trustees consider due to the steps taken by charity to address the COVID-19 situation, there are no material uncertainties about the charity’s ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether grants or grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Legacies, donations and gifts are recognised when receivable or it becomes probable that they will be received and the value can be measured with sufficient reliability. Gift in kind are included in the accounts at an estimate of gross value.
Charitable expenditure comprises those costs incurred in pursuance of the charitable airm of the company. Grants payable to partner organisations for educational projects are included in the Statement of Financial Activities (SOFA) when approved by the trustee, and agreed with the other organisations. The value of such grants unpaid at the year end is accrued.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 7.
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular
Where the charity owns the asset being auctioned then proceeds from auction are shown as the amount at which the lot was sold to the buyer. When the charity runs an auction at which the asset being auctioned still belongs to the original owner, the amount shown as income is that proportion of the amount at which the lot was sold that the original owner agreed should be taken by Pratham as a donation.
Computer equipment acquired during the year is depreciated in the first year of purchase over three years on straight line basis and carried at cost, net of depreciation and any provision for impairment.
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.
Cash at bank and in hand is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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 normally recognised at their settlement amount after allowing for any trade discounts due.
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
The company operates a defined benefit contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
Detailed comparatives for the statement of financial activities
|mparatives for the statement of financial activities||||
|---|---|---|---|
|and legacies
activities
ng activities
income
e
ds
activities:
n investments
brought forward|2020
Unrestricted
funds
£
148,315
259,800
56,320
2,063|2020
Restricted
funds
£
-
102,000
-
-|2020
Total
funds
£
148,315
361,800
56,320
2,063|
||466,498|102,000|568,498|
||324,332
-
324332|-
137,090
137090|324,332
137,090
461422|
||,
142,166
-|,
(35,090)
-|,
107,076
-|
||142,166
283,544|(35,090)
167,090|107,076
450,634|
||425710|132000|557710|
|Incomefrom donations and legacies|Incomefrom donations and legacies|Incomefrom donations and legacies|Incomefrom donations and legacies|Incomefrom donations and legacies||||2021||2020|
|---|---|---|---|---|---|---|---|---|---|---|
|||||Unrestricted||Restricted||Total||Total|
|||||funds||funds||funds||funds|
||||||£||£|£||£|
|Donations||||136,862|||~~-~~|136,862||148,315|
|||||136,862|||~~-~~|148,315
~~136862”~~|||
|Income from charitable activities|Income from charitable activities|Income from charitable activities|Income from charitable activities|Income from charitable activities|Income from charitable activities|Income from charitable activities||2021||2020|
|---|---|---|---|---|---|---|---|---|---|---|
|||||||Unrestricted|Restricted|Total||Total|
|||||||funds|funds|funds||funds|
|||||||£|£|£||£|
|Donations- Events||||||63,950|~~-~~|63,950||259,800|
|Read India||||||~~-~~|28,687|28,687||102,000|
|Second Chance||||||~~-~~|69,424|69,424||-|
|Pratham Council for Vulnerable Children
~~-~~|||||||6,113|6,113||-|
|||||||63,950|104,224|168,174||361,800|
|Incomefrom othertrading activities|Incomefrom othertrading activities|Incomefrom othertrading activities|Incomefrom othertrading activities|Incomefrom othertrading activities|Incomefrom othertrading activities||||2021||2020|
|---|---|---|---|---|---|---|---|---|---|---|---|
||||||Unrestricted||Restricted||Total||Total|
||||||funds||funds||funds||funds|
|||||||£||£|£||£|
|Online sales and auctions|||||49,038||||49,038||56,320|
||||||49,038|49,038||~~-~~|49,038||56,320|
|Income from investments|Income from investments|Income from investments|||||2021||2020|
|---|---|---|---|---|---|---|---|---|---|
||||Unrestricted||Restricted||Total||Total|
||||funds||funds||funds||funds|
|||||£||£|£||£|
|Bank interest|||||||||2,063|
||||||||||2,063|
||||Raising|Raising|Raising|Charitable|Charitable|Charitable|Charitable|Charitable|Support|2021||2020|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||funds|||activities|||||costs|Total||Total|
||||||£||||£||£|£||£|
|Staff costs|Staff costs||12,641|||78,632|||||22,818|114,091||55,372|
|Direct costs staging events|||1,370|||||~~-~~|||~~-~~|1,370||126,981|
|Read India - Pratham India||||~~-~~||567,799|||||~~-~~|567,799||137,090|
|Pratham - 14-18 year old skilling programme||||||||||||||26,320|
|Admin costs||||~~-~~||||~~-~~|||9,783|9,783||17,390|
|Professional Fee||||~~-~~||||~~-~~|||2,000|2,000||28,570|
|Printing,Postage & Supplies||||~~-~~||||~~-~~|||426|426||1,608|
|Telephone & Internet||||||||||||||73|
|Rent and rates|Rent and rates|||~~-~~||||~~-~~|||9,028|9,028||29,593|
|Insurance||||~~-~~||||~~-~~|||1,432|1,432||1,285|
|Advertising||||~~-~~||||~~-~~|||1,697|1,697||4,478|
|Sundry||||~~-~~||||~~-~~|||246|246||1,609|
|Dues and Subscriptions||||~~-~~||||~~-~~|||1,598|1,598||939|
|Travel||||~~-~~||||~~-~~|||667|667||1,123|
|Just Giving Expense||||~~-~~||||~~-~~|||360|360||371|
|Bad debt expense||||~~-~~||||~~-~~|||28,350|28,350||5,250|
|Bank Charges||||~~-~~||||~~-~~|||3,277|3,277||2,985|
|Depreciaton||||~~-~~||||~~-~~|||248|248||-|
|Accountancy fees||||~~-~~||||~~-~~|||3,910|3,910||13,135|
|Audit fees|||||||||||6,500|6,500||7,250|
||||14,011|||646,431|||||92,341|752,782||461,422|
|Support costs|||9,629|||82,711|||||(92,341)|~~-~~|||
|Total expenditure 2021|||23,639|||729,143|||||~~-~~|752,782|||
|Total expenditure 2020|Total expenditure 2020||242,258|||219,164|||||-|461,422|||
Of the total expenditure, £516,558 was unrestricted (2020: £324,332) and £236,224 was restricted (2020: £137,090).
|d after charging / (crediting):
n||2020
£
7,250|
|---|---|---|
**----- Start of picture text -----**
Staff costs were as follows: 2020
£
Salaries and wages 51,235
Social security costs 2,880
1,257
55,372
**----- End of picture text -----**
The total employee benefits including pension contributions of the key management personnel were £62,799 (2020- £55,372).
The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).
The average number of employees during the year was as follows:
|e number of employees during the year was as follows:|||
|---|---|---|
|ctivities||2020
No
1|
|||1|
No employee received emoluments in excess of £60,000 (2020: Nil).
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
||||
|---|---|---|
|tart of the year
ns in year
end of the year
tart of the year
for the year
end of the year
tart of the year
e above assets are used for charitable purposes.|1,0
7
Comput|£
70
43
ers|
||1,8|13|
||1,0
|70
|
||2|48|
||1,3|18|
||||
|||-|
||||
**----- Start of picture text -----**
2020
£
Other debtors 79,434
Prepayments 8,960
Accured income 102,000
190,394
2020
£
Other creditors 7,471
Accruals 10,000
Taxation and social security 1,943
Deferred income 30,000
49,414
2020
£
-
Balance at the beginning of the year
-
Amount released to income in the year
Amount deferred in the year 30,000
Balance at the end of the year 30,000
**----- End of picture text -----**
Deferred income comprises funds received for the next financial year.
|i|i||||||
|---|---|---|---|---|---|---|
|xed assets
nt assets
f net assets between funds - prior year
nt assets
s at 31 March 2020
n - Read India
Council for Vulnerable Children
hance
ts in funds - prior year
funds:
n - Read India
30
Council for Vulnerable Children
ntervention - Read India
137
ricted funds
167
stricted funds
283
s
450
At 1
|||Unrestr
f
425,
425,||||
||||||||
||||||||
|||||icted
unds
Restricted
funds
£
£
710
132,000||T
fu
557,7|
|||||710
132,000||557,7|
||||||||
||||||||
||||||||
||30
137
At 1
|£
,000
-
102,0
,090
April
2019
Inco|£
-
00
-
(137,
me
Expe|£
£
-
-
-
-
090)
-
nses
Transfers||30,
102,
A
Ma
2|
||167
283|,090
102,0
,544
168,4|00
(137,
86
(26,|090)
-
320)
-||132,
425,|
||450|,634
270,4|86
(163,|410)
-||557,|
Total future minimum lease payments under non-cancellable operating leases are as follows:
|ear||2020
£
21,420|
|---|---|---|
|||21,420|
The charity is a company limited by guarantee and has no share capital. There are 11 members of the company, each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.
Mrs Vinati Sukhdev, the company secretary, who is an ex-director and ex-trustee, received a gross salary of £54,951 (2020- £51,235). Trustee donated £131,635 (2020: £107,700).