Company registration number. 05347277 Charity registration number.. 1111306 The Lotus Children's Foundation (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 January 2025 The Lotus Children's Foundation Contents Trustees, Report 1103 Reference and Administrattve Details Statement of Trustees, Responsibilities Independent Examinerfs Report statement of Financial Activities Balance Sheet Notes to the Financial Statements 8t012 The Lotus Children's Foundation Trustees, Report The Trustees. who also serve a5 Directors for the purposes of company law, are pleased to present their Annual Report. together with the financial statements of the charity, for the year ending 31 January 2025. Structure, governance and management The charity is a company limited by guarantee. incorporaled on 31 January 2005. Obje¢tives and activities Charitable Objectives-. The objectives of The Lotus Children's Foundation are to benefit the public by.. (11 Promoting and protecting Ihe physical and mental well-being of orphaned children in Sri Lanka,. 121 Advancing their education by providing and supporting educational facilities and equipment., and 131 Undertaking any other charitable activities that the trustees. at their discretion, deem appropriate. The charity was founded in response to the devastating Tsunami of 26 December 2004, which left many children orphaned and homeless. particularly in Sri Lanka. Achievements and perfonnance The Lotus Children's Foundation partners with three well-established charities in Sri Lanka and one in Colombia to support rts mission of improving the lives of children. 1. The Velummawlum Foundation - Based in the Northem Province of Sri Lanka, this charity focuses on assisting families and children in the Point Pedro and Vadamarachchi areas. It aims to transform lives by providing essential supporl in health. social welfare. and education, offering children the chance for a brighter future. 2. The Ladani Institute A government-established charity. set up in March 2004, Ladani operates orphanages across Sri Lanka, providing safe havens and care for vulnerable children. 3. Patikiri Kubalathara Foundation Located in the Southem Province of Sri Lanka, this foundalion works wilh families and children in the Omatta region. Its programs mirror those of the Velummayilum Foundation. offering high standards of health, social welfare, and education. striving to improve the opportunities available to these children. 4. Fundacion Frailejones Operating in Pijao, Colombia. this foundation supports rural schools through orchard programs and infrastructure improvements. Additionally, il helps university students with accommodation, living expenses, and other suppori to pursue their education. The Lotus Children's Foundation is currently responsible for the care of hundreds of children. Many are supported within their communities, with all expenses fully funded by the charity. Social workers, foster families, and schools work Closely with the children to address their everyday needs. ensuring that each child receives the care and support they require. However, many more children are awaiting assistance. and it is our long-tem goal to gradually expand the reach of our services and care to meet this growing need_ The trustees regularly visit Sri Lanka to monitor the worf( and progress of the Velummayilum Foundation. Ladani Institute. and Patikiri Kubalathara Foundation. These visits are personally funded by the trustees to ensure that charitable resources remain focused on the children. Page 1 The Lotus Children's Foundation Trustees, Report Financial Teview £55,422 to the Velummayilum Foundation. £29,087 to the Ladani Institute. £55,222 to the Patikiri Kubalalhara Foundation. £32,950 to Fundacion Frailejones. In addition. £13,604 was spent on other charitable activrties detemiined by the trustees. As of 31 January 2025. the charity held cash reserves of £17.106. Plans for future periods Activities planned to achieve aims The trustees remain committed to increasing the charitls income to ensure we can continue to support our current beneficiaries. Given the long-temi nature of their needs. the charity will rely heavily on voluntary donations and funding for many years lo come. Our aim is to expand our capacity to care for more children. while maintaining the high stsndards of care and support we currently provide. Public benefit The Charity actively promotes awareness of the hardship faced by the children in Sri Lanka, and generates funds lo try and improve their situation. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefft guidance published by the Charity Commission for England and Wales. Trustees and officers The trustees and officers seNing during the year and since the year end were as follows- Trustees- Mr V Thayanandarajah Mrs S Thayanandarajah Mr l Ja￿lS Mr E Thayan Mr C Thayan MrGToy Mrs R Thayan {appointed 14 September 20251 Mr S Dissanayake {appointed 14 October 20251 Secretary. Mr V Thayanandaraiah Page 2 The Lotus Children's Foundation Trustees, Report Reference and Administrative Details Reference and administrative details Principal Office Kingsley House Clapham Road South Lowestoft Suffolk NR32 1QS The Charity is incorporated in England & Wales. Company Registration Number 05347277 Independent Examiner Francis Clark LLP Melville Building East Unit 18. 23 Royal William Yard Plymouth Devon PL13GW Charity Registration Number 1111306 Going concern At the beginning of the year, there were reserves of £17.637. The foundation ended the year with resetves of £17.106, and have raised funding post year end. The charitable company does not have any liabilities as operations largely comprise of receiving funds from other Kingsley group companies and making donations to various projects and foundations in Sri Lanka and elsewhere. Due to the simplistic nature of the chariws operations and the year end reserves balance being positive, we consider this to be sufficient evidence that adequate reserves are held and the charity is a going concern. The trustees consider that there are no material uncertainties about the charity's abilrty to continue as a going concèrn nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. The annual report was approved by the trustees of the Charity on 3aJ... Iioi&nd signed on its behalf by.. Mr l Jarvis Trustee Page 3 The Lotus Children's Foundation Statement of Trustees, Responsibilities The trustees (who are also the directors of The Lotus Children's Foundation for Ihe purposes of company lawl are responsible for preparing the trustees, report and the financial statemenls in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practice). including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charrtable company for that peiiod_ In preparing these financial statements, the trustees are required to". select suitable accounting policies and apply them consistently, observe the methods and principles in the Charities SORP., make judgements and estimates thal are reasonable and prudent- slate whether applicable accounting standards. comprising FRS 102 have been followed. subject lo any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless tt is inappropriate to presume that the charrtable company will continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charrtable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detedion of fraud and other irregularilies. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable CoMpan￿S website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by Ihe trustees of the charity on lal.ioJ.LJiS and signed on ils behalf by.. Mr l Jarvis Trustee Page 4 The Lotus Children's Foundation Independent Examiner's Report to the trustees of The Lotus Children's Foundation ('the Company'} I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2025. Responsibilities and basis of report As the charity's trustees of the Company (and also its directors for the purposes of company lawl you are responsible for Ihe preparation of the accounts in accordance with the requirements of the Companies Act 2006 {'the 2006 Act,). Having satisfied myself thal the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carried out under section 145 of the Chanties Acl 2011 ('the 2011 Act'i. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5}Ibl of the 2011 Act. Independent examiner's statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe.. 1. accounting records were not kept in respecl of The Lotus Children's Foundation as required by section 386 of the 2006 Act,. or 2. the accounts do nol accord with those records". or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a '"true and fair view, which is not a matter considered as part of an independent examination., or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities. 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_ pth P-a James Barrett FCA PKF Francis Clark Melville Building East Unit 18, 23 Royal William Yard Plymoulh Devon PL1 3GW 3011012025 Page 5 The Lotus Children's Foundation Statement of Financial Activities for the Year Ended 31 January 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Total 2025 Note Income and Endowments from: Donations and legacies 185.754 185,754 Tolal income 185,754 185,754 Expenditure on: Charitable activities (186,285) {186.2851 Total expenditure (186,285) {186.285) Net expenditure {531) 531) Net movement in funds (531) {531) Reconciliation of funds Total funds brought forward Total funds carried forward 17.637 17,637 17,106 17,106 Unrestricted funds Total 2024 Note Income and Endowments from: Donations and legacies 135,140 135,140 Total income 135.140 135,140 Expenditure on: Charitable activities {129,5551 1129,555) Total expenditure (129,5551 1129.555) Nel income 5.585 5.585 Nel movement in funds 5.585 5,585 Reconciliation of funds Total funds brought forward Total funds carried fotward 12.052 12.052 17,637 17.637 All of the charity's activities derive from continuing operations during the above Iwo periods. The fund breakdowns for both 2025 and 2024 are shown in note 9. The noles on pages 8 10 12 form an integral part of these financial statements. Page 6 The Lotus Children's Foundation (Registration number: 05347277) Balance Sheet as at 31 January 2025 2025 2024 Note Current assets Cash at bank and in hand 17,106 17,637 Funds of the charity: Unrestricted income funds Unrestricted funds 17,106 17,637 Total funds 17.106 17,637 For the financial year ending 31 January 2025 the charity was entilled to exemplion from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities.. The members have not required the charity to obtain an audit of its accounts for the year in question in accordance wilh section 476.. and The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Ad 2006. The financial statements on pages 6 to 12 were approved by the tnjstees, and aulhorised for issue on 3a.lJ.41.u'.L£and signed on Iheir behalf by.. Mr l JaNis Trustee The notes on pages 8 to 12 fomi an integral part of these financial stslements. Page 7 The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2025 1 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless othernise slated. Statement of compliance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounls 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 Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011. Basis of preparation The Lotus Children's Foundation meets the definition of a public benefit entty under FRS 102. Assels and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Going concern The nature of the charity means that expenditure is aligned with the income received with there being no fixed costs. The Iruslees consider Ihal there are no malerial uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. Exemption from preparing a cash flow statement The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore nol included a cash flow statement in these financial statements. Income and endowments All income is recognised once the charity has entitlement to the income. it is probable that the income will be received and the amount of the income receivable can be measured reliably. Donations and legacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date_ In the evenl that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds. the income is deferred and not recognised until either those conditions are fully met. or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these condilions will be fulfilled in Ihe reporting period. Page 8 The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2025 Expenditure All expendilure is recognised once there is a legal or constructive obligation to that expenditure. it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basi5 consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its adivities and services for its beneficiaries. It includes both costs thal can be allocated direclly to such activities and those costs of an indirect nature necessary to support thèm. Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Acl 2010 and therefore it meels the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Acl 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to charitable purposes. Cash and cash equivalents Cash and cash equivalenls comprise 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. Fund structure Unrestricted income funds are general funds that are available for use at the Iruslees discretion in furtherance of the objectives of the charity. Financial instruments Classification The company holds the following financial instruments: Cash and bank balances. All financial instruments are classFfied as basic. The company has chosen to apply the recognition and measurement principles in FRSI02. Page 9 The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2025 Recognition and measurement Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets. the contractual rights to cash flows from the assets expire or substanlially all the risks and rewards of ownership are transferred lo another paty, or in the case of liabilities. when the company's obligations are discharged, expire or are cancelled. Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounled amount of the cash or other consideration expected lo be paid or received, after taking account of impairment adjustments. 2 Income from donations and legacies Unrestricted funds Total 2025 Total 2024 General Donations and legacies., Donations 185,754 185.754 135,140 185,754 185.754 135,140 3 Expenditure on charitable activities Grant funding of activity Activity support costs 2025 2024 Charitable adivities 183,291 2,994 186,285 129,555 £186,285 {2024 £129.555) of the above expendrture was attributable to unreslricted funds and £Nil 12024 £Nill to restricted funds. Page 10 The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2025 4 Analysis of support costs Support costs allocated to charitable activities Other support costs Finance osts Total 2025 Total 2024 Basis of allocation Usage of activity Charitable adivities 2,910 2,944 2,925 5 Trustees remuneration and expenses No trustees, nor any persons connected with them. have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the period (2024. £Nil}. 6 Staff costs The average number of persons employed by the charity (including trustees) during the year was nil {2024 - nill. 7 Taxation The charily is a registered charity and is therefore potentially exempt from taxalion. 8 Charity status The Charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribule an amount not exceeding £10 towards the assets of the Charity in the event of liquidation. Page11 The Lotus Children's Foundation Notes to the Financial Statements for the Year Ended 31 January 2025 9 Funds Balance at 1 February 2024 Incoming resources Resources Balance at 31 expended January 2025 Unrestricted funds Unrestricted general funds 17,637 185.754 (186,285) 17,106 Balance at 1 February 2023 Incoming resources Resources Balance at 31 expended January 2024 Unrestricted funds Unrestricted general funds 12.052 135,140 {129,555} 17,637 10 Analysis of net assets between funds Unrestricted general funds Total funds Current assets 17.106 17,106 11 Related party transactions During the year the charity made the foll¢)wing related party transactions: During the year the charity received unconditional donations from various care homes within the Kingsley Care Home organisation. These care homes are under the control of Mr V Thayanandarajah, a Trustee of the charity. The total amounts of these donations were £184,643 (2024_ £134,570). The charity also utilises the care homes to facilitate international payments for charitable purposes at a cheaper rate than the charity is able to secure on a standalone basis. At the balance sheet date the amount due was £Nil (2024- £Nil}. The charity also made donations of £55.422 {2024 - £61,608) to a Sri Lankan foundation, also under control of Mr V Thayanandaraiah, for charitable purposes. Page 12