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2021-03-31-accounts

ACTION VILLAGE INDIA

REPORT AND FINANCIAL STATEMENTS

31 MARCH 2021

Company Number: 06110505 Charity Number: 1118845

CONTENTS

TRUSTEES REPORT ........................................................................................................................................................... 1 TRUSTEES ............................................................................................................................................................................................. 1 STRUCTURE, GOVERNANCE AND MANAGEMENT ............................................................................................................. 2 Governing Document .................................................................................................................................................................. 2 Organisational Structure ........................................................................................................................................................... 2 Appointment and Induction of Trustees, Training and Skills Management ...................................................... 2 Risk Policy ....................................................................................................................................................................................... 2 Related Parties ............................................................................................................................................................................... 2 Public Benefit ................................................................................................................................................................................. 2 OBJECTIVES AND ACTIVITIES ...................................................................................................................................................... 3 Charitable Objectives .................................................................................................................................................................. 3 Charitable Aims ............................................................................................................................................................................. 3 Charitable Work – Projects ...................................................................................................................................................... 4 Partner - The Association for Sarva Seva Farms (ASSEFA) ...................................................................................... 4 Partner - The Centre for Rural Systems and Development (CRUSADE) .............................................................. 4 Solidarity Partner – Development Action Consortium Trust (DAC Trust) ......................................................... 5 Partner - Ekta Parishad (Unity Forum) ............................................................................................................................. 5 Ekta Europe .................................................................................................................................................................................... 5 New Partner – EquiDiversity Foundation ........................................................................................................................ 6 Solidarity Partner - Lakshmi Ashram ................................................................................................................................. 6 Partner - Nav Bharat Jagriti Kendra (NBJK) .................................................................................................................... 6 Partner - Regional Centre for Development Cooperation (RCDC) ........................................................................ 7 Project – Organic Farming, Kerala ....................................................................................................................................... 7 Partners Forum ............................................................................................................................................................................ 8 FINANCIAL REVIEW ......................................................................................................................................................................... 8 Review of Results ......................................................................................................................................................................... 8 Reserves Policy .............................................................................................................................................................................. 8 PLANS FOR FUTURE PERIODS ..................................................................................................................................................... 9 Overall aims .................................................................................................................................................................................... 9 STATEMENT OF TRUSTEES’ RESPONSIBILITIES ............................................................................................................. 11 INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ACTION VILLAGE INDIA ......................... 12 Responsibilities and Basis of Report ................................................................................................................................ 12 Independent Examiner’s Statement.................................................................................................................................. 12 STATEMENT OF FINANCIAL ACTIVITIES (incorporating INCOME AND EXPENDITURE ACCOUNT) . 13 BALANCE SHEET .............................................................................................................................................................. 14 STATEMENT OF CASH FLOWS .................................................................................................................................... 15 NOTES TO THE ACCOUNTS .......................................................................................................................................... 16 ACCOUNTING POLICIES ............................................................................................................................................................... 16 INCOME ............................................................................................................................................................................................... 19 ANALYSIS OF EXPENDITURE .................................................................................................................................................... 20 TRUSTEES AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES ................................. 21 NET INCOME/ (EXPENDITURE) ............................................................................................................................................. 21 TANGIBLE FIXED ASSETS ........................................................................................................................................................... 21 INVESTMENTS ................................................................................................................................................................................. 22 DEBTORS ............................................................................................................................................................................................ 22 CREDITORS ........................................................................................................................................................................................ 22 ANALYSIS OF NET ASSETS BETWEEN FUNDS .................................................................................................................. 23 MOVEMENT IN FUNDS ................................................................................................................................................................. 23 RELATED PARTIES ......................................................................................................................................................................... 25 PENSIONS ........................................................................................................................................................................................... 25

ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

Charity Name: Action Village India Company Number: 06110505 Charity Registration Number: 1118845 Principal & Registered Office: 5 Balls Pond Road London N1 4AX

TRUSTEES

The affairs of the company were managed during 2020/2021 by the elected or co-opted members of the Trustee Board listed below. Together they constitute the Board of Directors of the limited company and trustees of the charity. Specific matters may be delegated to particular committees of the company by resolution of the Trustee Board and in accordance with the company’s Articles.

The following served as trustees during 2020/2021 and to date:

Tracy Adams Dr. Mukul Agarwal Rose Elizabeth Bradbury Beatrice Crestini Elanor Jackson (Vice-chair) Eleanor Kellett (Secretary) Pallavi Modha Andrew Rutherford (Chair) David William Smith (Treasurer)

Bank: Bank of Scotland London Chief Office PO Box 54873 London SW1Y 5WX Independent Examiner: G.R. Beer MA (Cantab) FCA Chartered Accountant 4 Chilgrove House Marden Way Petersfield, Hampshire GU31 4PU

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The company, Action Village India (AVI), is a company limited by guarantee (no. 06110505). It is also a charity registered in accordance with the Charities Act 2011 (registration no. 1118845).

Organisational Structure

The day-to-day work of the charity was managed by the full time Executive Director (Esther Trienekens), supported by the part-time Communications, Fundraising and Operations Manager (Aneeta Patel). Absence cover was provided by Marcella Bruno and accounting services were provided by Meera Patel. The staff were assisted by the Founder-Advisor (Ivan Nutbrown), the trustees, three interns and other members and long-term supporters. Volunteers supported numerous AVI events including the Walk for Women and Madras Café Unlocked.

Appointment and Induction of Trustees, Training and Skills Management

The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association, the trustees have the power to appoint new trustees, who must be re-elected at the following Annual General Meeting.

The Board of Trustees seeks specific skills. Committee members are asked, upon appointment, to complete a skills audit to ensure AVI has access to a wide range of appropriate skills.

AVI provides all trustees with opportunities to learn more about the projects it supports and the issues its partners in India tackle. AVI sponsors its partners to visit the UK to increase awareness of their work. It also runs very successful visits to the partners in India (Partners’ Forums) for trustees and supporters, sends regular news updates on its projects to supporters and holds online meetings between partners and supporters.

The charity’s staff are encouraged to attend relevant training courses. Where a specific training need arises for a trustee, training is made available.

Risk Policy

The Board has undertaken a risk assessment for the charity encompassing all potential areas of risk and are satisfied that the operating systems and procedures are sufficient to meet these risks.

Related Parties

There are no transactions with related parties.

Public Benefit

The trustees have paid due regard to guidance published by the Charity Commission on public benefit.

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES

Charitable Objectives

The objects of the Company are given in its Memorandum and Articles, and can be summarised as:

The objects of the charity shall be the alleviation and relief of poverty, hardship and distress arising therefrom to those in need without distinction by:

The Company is empowered to do all proper things in pursuit of these objectives.

Charitable Aims

AVI was established (as Friends of ASSEFA) in 1988 to support the work of ASSEFA (The Association for Sarva Seva Farms) in India. In 1994 it was decided to support four other Indian organisations; CRUSADE, Kerala Gandhi Smarak Nidhi, Lakshmi Ashram and Nav Bharat Jagriti Kendra. In 1997, formally Friends of ASSEFA became Action Village India (AVI) in recognition of its new partnerships.

AVI currently has partnerships with eight partners, mainly inspired by Gandhian principles who work directly with disadvantaged communities in rural India. They promote self-organisation and non-violent change as a means of combating poverty and reducing social, economic and political powerlessness. AVI works towards an India which is just, fair and inclusive, where all people regardless of gender, ethnicity, caste or belief can benefit from the Country’s economic development and lift themselves out of poverty.

AVI operates by raising funds in the UK to support rural development projects that are devised and managed in-country by Indian non-government organisations who AVI develops partnerships with. Our partners are the experts in understanding local communities and how to address their needs and rights at the grassroot level. The goal of AVI is to best support our partners in their work towards improving the lives of India’s rural poor, whether that be through financial support, exchanges of information and dialogue or raising awareness of their work outside of India. AVI selects partners in line with its Partner Approval Policy. Once a partner is approved, new projects to be managed by that partner are presented to the Trustee Group by the Executive Director for approval and/or comment according to the AVI’s Project Approval Guidelines.

AVI supports projects in rural and remote areas of India: from Bihar in the North down to Tamil Nadu in the South. People living in these rural communities are far less likely to benefit from government programmes and more likely to be affected by poverty, lack of education and healthcare as well as experiencing multiple forms of discrimination and marginalisation. Our activities centre on securing the rights and strengthening the livelihoods of India’s rural poor. We work with local partners on projects supporting education, health, land rights, agricultural innovation and women’s rights.

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES (continued)

Charitable Work – Projects

In the year to 31 March 2021, AVI continued to support rural development work in India. Specific developments in relation to each partner and project are detailed below.

Partner - The Association for Sarva Seva Farms (ASSEFA)

AVI continued to support ASSEFA through several projects:

This project supported 35 female children aged between 10 and 15 with marginalised communities with a heifer calf. The income from the sale of milk, as well as the asset of these animals, is expected to provide economic security to the girls. Transfers to India and other costs associated with the ‘My Calf, My Life’ project totalled £2421 raised from individual donors.

Partner - The Centre for Rural Systems and Development (CRUSADE) AVI continued to support CRUSADE through several projects:

During the year AVI continued its support for the Disability Rights project, which began in January 2018. The project known as ‘From Disability to Stability’ involves the rehabilitation of 2,000 people with disability in four villages (Minjur, Sholavaram, Ellapuram and Gummidipoondi) of Tiruvallur district, Tamil Nadu. The project works to transform the lives of 2,000 people living with disability, enabling them and their families to lead a life of dignity and self-reliance. Although the project had seen delays due to the pandemic, the work picked up towards the end of August. The project continued to support people living with a disability to form part of the disability groups, support them with claiming their disability ID card and benefits, providing skills training and loans and providing physiotherapy. This year CRUSADE formed a federation of the disability groups. A separate bank account has been opened for the Trust and it is planned to start an internal insurance scheme to protect their lives and livelihoods. This project, initially planned for three years, will continue in the coming year to cover the activities which were delayed due to the pandemic. Transfers to India and other costs associated with the ‘From Disability to Stability’ project totalled £15,324 raised from individual donors, a grant from the the Souter Charitable Trust and unrestricted funding.

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES (continued)

Solidarity Partner – Development Action Consortium Trust (DAC Trust), Tamil Nadu

Development Action Consortium Trust (DAC Trust) was founded in 2002 and is based in Theni, west of Madurai. Jothiramalingam, the founder of CRUSADE, is the founder and chairperson of the Trust. The aim of the Trust is “to promote empowerment and quality of life of vulnerable groups in society, with special focus on poor women, children – particularly girls – based upon self-reliance, dignity, human rights, and nonviolence –irrespective of age, health status, gender, caste, class, race, creed, religion or region”. To these ends, the Trust aims to sustainably empower vulnerable groups, such as those affected by poverty, oppression, gender, or marginalisation, to gain access to resources and to develop themselves socially, economically, politically and environmentally. Furthermore, the Trust aims to prevent and control communicable diseases; to research and develop health and development models and to engage in advocacy and lobbying for social, economic, political and other rights of vulnerable groups. AVI has continued to provide solidarity support to DAC Trust in the past year through involvement with different partner events and meetings.

Partner - Ekta Parishad (Unity Forum)

AVI continued to support Ekta Parishad through several projects:

Jai Jagat 2020

Transfers to India and other costs associated with JaiJagat 2020 totalled £4,139 raised from the Solidarity Appeal.

Kerala Floods Relief

Ekta Europe

AVI has continued to support Ekta Europe in solidarity.

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES (continued)

New Partner – EquiDiversity Foundation

In January 2021 we took on EquiDiversity Foundation as a new partner. EquiDiversity Foundation has been active in India since 2016 and is committed to creating an environment that promotes gender equality through political, social, and financial empowerment with active informed participation of individuals, the community, and the state. Equidiversity Foundation envisions a society where there is gender equality, co-sharing of power, and freedom from gender-based violence. Hence, its initiative to encourage not only women to organise but also children as well as men, as the latter can act as change agents and give rise to a more diverse and substantive political representation. This year we started raising funds for their project ‘Women’s leadership and participation in rural local governance’ which will aim to strengthen women’s leadership and participation in rural local governance.

Solidarity Partner - Lakshmi Ashram

Lakshmi Ashram is a women’s ashram at Kausani in Uttarakhand in the foothills of the Himalayas. It provides education on the Gandhian basic education model to local girls from disadvantaged families. The staff and students (from age 5 to school leaving) run the ashram. The ashram also runs kindergartens and environmental projects in the surrounding hills. Lakshmi Ashram hosts volunteers who work in India and learn about the local area and the Gandhian tradition. AVI has continued to provide solidarity support to Lakshmi Ashram in the past year through involvement with different partner events and meetings.

Partner - Nav Bharat Jagriti Kendra (NBJK)

AVI continued to support NBJK through several projects:

Community Action Project, Bihar & Jharkhand

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES (continued)

Due to the COVID-19 Pandemic, schools were closed for most of the year, but the project continued to support the girls through online teaching and coaching centres which were able to open for periods throughout the year.

Transfers to India and other costs associated with the Girls Education and Coaching Centres project totalled £36,838 raised through individual donations, Philip Henman Trust, Geoff Herrington Foundation and Harris Freeman Foundation.

Partner – Regional Centre for Development Cooperation (RCDC)

AVI continued to support RCDC through several projects:

Transfers to India and other costs associated with COVID Relief support totalled £2,500 raised from the Solidarity Appeal.

Project - Organic Farming, Kerala

AVI has supported the Organic Farming Pilot project since 2017. This project extended the activity of the previous project and aimed to improve the health and economic situation of families living below the poverty line in six panchayats in the rural area of Thiruvananthapuram, Kerala by creating an organic farming producer company that enables the farmers to produce, market and certify their own produce of organic fruit and vegetables in a sustainable way. Unfortunately, the pilot project was unsuccessful, and it was decided to no longer continue the project. In 2021 remaining funds allocated to the project were

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES (continued)

transferred to support 400 women who were still active within their farm clubs with input kits which include seeds, bio pesticide and bio fertilisers and grow bags.

Transfers to India and other costs associated with the Organic Farming project totalled £2,774.

Partners Forum

In 2020-2021 there were several online discussions between all the partners, starting with a discussion about Covid-19 in July. This was the first time we met with all the partners on a zoom call. It had very positive responses from partners, and it formed the start of later discussions.

For Madras Café Unlocked, in collaboration with partners, we organised 5 discussions for the Partnership and Solidarity stage. These discussions were held on the following themes:

Following on from this, a discussion was held about the changes to the FCRA in December and the

planning for the Partners’ Forum was held. The Partners Forum,, which included 4 thematic discussions,

FINANCIAL REVIEW

Review of Results

The charity is reporting a deficit for the year of £24,656 (2020: surplus of £25,137). Reserves carried forward amount to £117,810 at 31 March 2021, £99,031 of which represents unrestricted funds and £18,779 restricted funds.

Grants receivable amounted to £94,751 (2020: £86,885). Altogether grants were received from twelve different organisations.

The charity’s supporters provided donations and subscriptions amounting to £77,244 (2020: £83,229). The charity’s wholly owned subsidiary, Sensetrade Limited, was unable to gift any profits to AVI, since the WOMAD music festival, where Madras Café would normally have raised money, was cancelled due to Covid-19. £27,475 was gifted to AVI in 2020.

The charity’s expenditure was £220,855 (2020: £181,365) during the year, which includes direct project costs of £190,522. £13,000 of unrestricted funds were utilised to fund projects for which restricted funding had not been obtained.

Further details of the charity’s activities are set out in the Statement of Financial Activities on page 13 and the financial position of the charity at 31 March 2021 is set out in the Balance Sheet on page 14.

Reserves Policy

AVI’s reserves policy and the actual level of reserves are reviewed annually by the Board in its budget setting meeting. The policy recommends that the charity should maintain a level of free reserves which would enable it to meet its commitments in the UK and to its partners for three months. This amounts to approximately £40,000 in unrestricted funds based on the results to 31 March 2021. That timeframe would allow the charity to wind up its affairs and provide its partners with some support whilst they try to replace AVI’s contribution to their work.

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW (continued)

AVI has always given priority to meeting its commitments to its partners in India and that policy will remain . At 31 March 2021 the charity’s free reserves amounted to approximately £99,031 a level which exceeds the minimum stated above.

£20,000 of the unrestricted reserves continues to be allocated to a Designated Fund known as the Partnership Development Fund. The Partnership Development Fund is for new and pilot projects, and for building partners capacity to communicate their programmes and to diversify funding sources.

PLANS FOR FUTURE PERIODS

AVI has developed and approved a comprehensive Action Plan for 2021-22. This plan builds on the previous strategic review conducted in 2015 and resulting Business Plan and a two-year period of considerable AVI staff transition and new team establishment. From April 2019, we revised the job descriptions and responsibilities for our two staff members. From April 2020 our International Partnerships Director became our Director. With a new staff team established and new, more effective operational procedures now in place, this Action Plan looks to continue to take forward a number of the strategic objectives identified in the 2015 strategic review. These include reaching new demographics of UK supporters and improving our communications and messaging. The Action Plan also takes forward the development of potential new income-generating strategies. However, the first half of 2021-22 will necessarily be taking forward our refocused, repurposed and rebudgeted responses to the challenges in the UK and India provoked by Coronavirus-19. This includes temporarily relocating our office to enable ‘working from home’; revising our communications plan; more regular interaction with partner organisations in India; taking forward integrated plans for online activities, including webinars and discussions.

Overall aims:

During this period, we will continue to work alongside our existing eight partners (Assefa, CRUSADE, DAC Trust, Ekta Parishad, Equidiversity Foundation, Lakshmi Ashram, NBJK and RCDC) phasing out our support for some projects that have been supported for some years and developing new projects and new phases of projects. We will also look to work with new partners, who align with our partnership guidelines, on selected new projects. Whilst our work will continue in the majority of geographic areas we currently work, when developing new projects, we will tend to look to do so more in India’s poorer states such as Bihar, Jharkhand and Odisha, subject to achieving funding support.

In 2021/22 we will continue to work to consolidate our support for one or two mid-size three-year plus projects as well as continuing our support of smaller initiatives. This will continue focusing on the quality of our partnerships and less on the amounts of funds that we transfer to India.

These changes give us a range of opportunities including:

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

PLANS FOR FUTURE PERIODS (continued)

AVI is not looking to expand its core staff team during 2021-22 but will work with new interns and volunteers in the office and at events.

2021/22 will be the second full year with Esther Trienekens, who was previously our International Partnerships Director as Director. It will have a number of key aspects :-

Our main priorities are:

Our secondary priorities are:

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ACTION VILLAGE INDIA TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Action Village India for the purposes of company law) are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements the Trustees are required to: -

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities FRS102 (issued in 2015) and in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Approved by the Board of Trustees on 19[th] July 2021 and signed on its behalf by

................................................................

Chair of Trustees

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ACTION VILLAGE INDIA INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF ACTION VILLAGE INDIA

I report to the trustees on my examination of the accounts of Action Village India for the year ended 31 March 2021.

Responsibilities and Basis of Report

As the trustees you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the 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 the applicable Directions given by the Charity Commission under section 145(5)b of the 2011 Act.

Independent Examiner’s Statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with my 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 Act; or

  2. the accounts do not accord with those 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 other requirement that the accounts give a “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.

G R Beer MA(Cantab) FCA Chartered Accountant 4 Chilgrove House, Marden Way Petersfield, Hampshire GU31 4PU

19[th] July 2021

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ACTION VILLAGE INDIA STATEMENT OF FINANCIAL ACTIVITIES (incorporating INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Income from:
Donations
Charitable activities:
Support for rural communities
in India
Other trading activities:
Fundraising events
Investments:
Interest receivable
Total incoming resources
Expenditure on:
Raising funds
Charitable activities:
Support for rural communities
in India
Total expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Note
2
2
3
3
11
11		 Year to
Unrestricted
Funds
£
48,622
0
19,125
31		 Year to
Unrestricted
Funds
£
48,622
0
19,125
31		 Year to 31 March 2021
Restricted
Funds
Total
£
£
33,917
82,539
89,456
89,456
5,048
24,173
0
31		 Year to
Unrestricted
Funds
£
105,742
0
8,751
161		 Year to 31 March 2020
Restricted
Funds
Total
£
£
30,550
136,291
61,299
61,299
0
8,751
0
161
67,778 128,421
196,199		 114,653 91,848
206,502
30,333
38,469		 0
30,333
152,053
190,522		 18,935
36,218		 0
18,935
126,212
162,430
68,802 152,053
220,855		 55,153 126,212
181,365
-1,024
-13,000		 -23,632
-24,656
13,000
0		 59,500
-30,000		 -34,363
25,137
30,000
0
-14,024 -10,632
-24,656		 29,500 -4,363
25,137
113,055 29,411
142,466		 83,555 33,774
117,329
£99,031 £18,779
£117,810		 £113,055 £29,411
£142,466

The notes on pages 16 to 25 form part of these accounts.

There were no recognised gains or losses for the year other than shown above.

All incoming resources and resources expended derive from continuing activities.

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ACTION VILLAGE INDIA BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed Assets
Tangible assets
6
Investments
7
Current Assets
Debtors
8
Cash at Bank
Creditors - amounts due within one year
9
Net Current Assets
Net Assets
Charity Funds
10-11
Restricted
Unrestricted:
General
Designated
Total Charity Funds		 31 March 2021
-
150
£150
16,426
104,018
£120,445
(2,785)
£117,660
£117,810
18,779
79,031
20,000
£99,031
£117,810		 31 March 2020
-
150
£150
21,811
121,824
£143,635
(1,319)
£142,316
£142,466
29,411
93,055
20,000
£113,055
£142,466

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the provisions applicable to companies, subject to the small company’s regime under Part 15 of the Companies Act 2006 (effective January 2016).

These financial statements were approved and authorised for issue by the Trustees on 19 July 2021 and are signed on their behalf by:

…………………………………

Andy Rutherford, Chair

The notes on pages 16 to 25 form part of these accounts.

Company Registration Number 6110505

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ACTION VILLAGE INDIA STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flow from operating activities
Cash flow from investing activities:
Interest received
Net cash flow from investing activities
Net increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash equivalents at the end of the year
Cash and cash equivalents consists of:
Cash at bank and in hand
Reconciliation of net income to net cash flow from operating
activities
Net movement in funds
Interest receivable
(Increase)/ Decrease in debtors
(Decrease)/ Increase in creditors
Net cash flow from operating activities		 2021
£
(17,837)
31
£31
(17,806)
121,824
£104,018
£104,018
(24,656)
(31)
5,385
1,465
£(17,837)		 2020
£
15,593
161
£161
15,754
106,070
£121,824
£121,824
25,137
(161)
(5,620)
(3,763)
£15,593

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

a) Basis of Accounting

The company, Action Village India (AVI), is a company limited by guarantee (no 06110505). It is also a charity registered in accordance with the Charities Act 2011 (registration no 1118845) in the United Kingdom. The address of its principal office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are given on page 3 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS 102. 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2016.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

These financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.

The charity has a wholly owned subsidiary, Sensetrade Limited. Groups accounts have not been prepared as the charity is exempt from the requirement to prepare group accounts on account of the fact that the gross income, after consolidation adjustments, of the group is no more than the threshold for a statutory charity audit.

d) Incoming resources

Income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably. The following specific policies are applied to particular categories of income: -

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

ACCOUNTING POLICIES (continued)

e) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under activities that aggregate all costs related to any particular activity. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties; it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings: -

f) Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include premises costs, office costs, governance costs, administrative and payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular activities, they have been allocated to expenditure on a basis which may be based on activity as represented by direct costs expended on that activity or based on a proportion of staff costs. The analysis of these costs is included in Note 3.

g) Fund accounting

Funds held by the charity are either: -

  1. Unrestricted general funds – these are funds without specified purpose and are available as general funds.

  2. Designated funds – these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

  3. Restricted funds – these are funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Transfers between funds are made to cover deficits on individual restricted funds and to recognise fixed assets acquired with restricted income, but with no further restrictions on use, within unrestricted funds.

h) Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Office equipment - 25% straight line basis Website - 25% straight line basis

Assets costing less than £500 are not capitalised.

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

ACCOUNTING POLICIES (continued)

j) Pension Costs

The Charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Charity. The annual contributions payable is charged to the income and expenditure account.

k) Foreign exchange

Transactions denominated in foreign currencies are initially translated into sterling at the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into sterling at the exchange rates ruling at the year end. Foreign exchange differences are dealt with in the income and expenditure account and allocated directly to the activities where appropriate to do so.

l) Debtors

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors and provisions

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.

o) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

p) Financial Instruments

The charity has only financial assets and liabilities of a kind that qualify as basic financial instruments. These basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

2. INCOME

2021
Unrestricted
funds
Restricted
funds
Total
(a) Donations comprise:
£
£
£
Donations
42,526
33,917
76,443
Donations from subsidiary
-
-
-
Grants of core funds (note 2b (ii)
below)
5,295
-
5,295
Memberships
801
-
801
£48,622
£33,917
£82,539
(b) Grants receivable comprise:
(i) Grants supporting rural communities in
India:
Crusade - Disability Rights
Christadelphian Samaritan Fund
-
-
Souter Charitable Trust
5,000
5,000
Ekta Parishad - JJ2020
Quaker S Asia
60
60
Exeter Quakers
-
-
NBJK - Girls Education
Geoff Herrington Foundation
19,500
19,500
Philip Henman Trust
-
-
Allen & Nesta Ferguson
-
-
Harris Freeman Foundation
9,993
9,993
NBJK - Community Action
Bryan Guinness Charitable Trust
-
-
J.A. Gillett Charitable Trust
-
-
RCDC Fishing Communities
States of Guernsey
44,903
44,903
Zephyr Charitable Trust
10,000
10,000
Open Gate Trust
-
-
Southall Trust
-
-
Oakdale Trust
-
-
-
£89,456
£89,456
(ii) Grants of core funds:
RVA
-
-
MA Lascelles
3,500
3,500
Plant Pot Snacks
200
200
Southern Trust
-
-
Harbinson Charitable trust
200
200
Westcroft Trust
1,100
1,100
Sundarama Trust
200
200
UK online giving foundation
95
95
£5,295
-
£5,295		 2020
Unrestricted
funds
Restricted
funds
Total
£
£
£
52,066
30,550
82,616
27,475
-
27,475
25,587
-
25,587
613
-
613
£105,741
£30,550
£136,291
800
800
4,000
4,000
-
-
247
247
-
-
10,000
10,000
16,000
16,000
9,993
9,993
3,000
3,000
1,000
1,000
-
-
10,000
10,000
2,259
2,259
3,000
3,000
1,000
1,000
-
£61,299
£61,299
13,286
13,286
1,000
1,000
-
-
10,000
10,000
200
200
1,100
1,100
-
-
-
-
£25,586
-
£25,586

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

3. ANALYSIS OF EXPENDITURE

Basis of
allocation
Costs directly allocated to project
activities:
Staffing & Support costs for projects
Direct
Publicity
Direct
Project expenditure:
ASSEFA - Maternal Health
Direct
ASSEFA - Rural Livelihoods
Direct
Crusade - Women's Development
Direct
Crusade - Disability Rights
Direct
Ekta Parishad - JJ2020
Direct
KGSN - Organic Farming
Direct
NBJK - Girls Education
Direct
NBJK Community Action
Direct
RCDC - Land Rights and Livelihoods
Direct
COVID19 Appeal
Direct
Appeals
Direct
Support costs allocated to other
activities:
Staff costs
Staff time
Office, premises & other costs
Usage
External accountant's fees
Direct
AGM & meeting costs
Usage
Total costs excluding governance
costs
Governance cost allocation
Usage
Total costs by activity		 Raising
funds
Support for
rural
communities
in India
Governance
Total
£
£
£
£
-
7,028
-
7,028
10,837
-
10,837
-
-
4,045
-
4,045
-
2,421
-
2,421
-
2,012
-
2,012
-
15,324
-
15,324
-
4,139
-
4,139
-
2,774
-
2,774
-
36,838
-
36,838
-
10,315
-
10,315
-
48,326
-
48,326
14,350
-
14,350
4,481
-
4,481
£10,837
£152,053
-
£162,890
14,588
28,663
4,085
47,336
3,980
3,980
1,990
9,950
-
-
650
650
-
-
29
29
£18,568
£32,643
£6,754
£57,965
29,405
184,696
6,754
220,855
928
5,826
(6,754)
£30,333
£190,522
-
£220,855		 2020
£
10,623
-
-
9,734
2,029
2,729
24,230
-
-
2,525
36,030
9,425
26,278
2,608
£126,211
38,663
15,925
520
46
£55,154
181,365
£181,365

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

4. TRUSTEES AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES

No trustee received reimbursed expenses during the year (2020 £nil)

The charity considers its key management personnel to comprise the Board of Trustees and its Executive Director The total amount of employee salary and benefits including employer's pension contributions received by key management personnel were £35,014 (2020 - £31,219)

Gross salaries
Employer's National
Insurance
Pension costs		 Year to 31 March 2021
Year to 31 March 2020
£
£
42,407
47,665
-
551
916
775
£43,323
£48,991

The average number of employees during the year was two (2020: 2). No employee earned more than £60,000 (2020: nil)

5. NET INCOME/(EXPENDITURE)

Net income/expenditure is after charging -
Independent Examiner's fee		 Year to 31
March 2021
Year to 31
March 2020
£650
£520

6. TANGIBLE FIXED ASSETS

Cost
At 1 Apr 2020
Additions
Disposals
At 31 Mar 2021
Depreciation
At 1 Apr 2020
Disposals
Charge for the year
At 31 Mar 2021
Net book value
At 31 Mar 2020
At 31 Mar 2021		 Office
Equipment
£
6,401
(6,401)
-
25%
straight line
6,401
(6,401)
-
-
-
-		 Website
£
1,783
(1,783)
-
25%
straight line
1,783
(1,783)
-
-
-
-		 Total
£
8,184
-
(8,184)
-
Total
8,184
(8,184)
-
-
-
-

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

7. INVESTMENTS

The wholly owned trading subsidiary, Sensetrade Ltd, which is incorporated in England and Wales, donates all its profits to the charity.

Sensetrade Ltd runs the 'Madras Café' which sells Indian food at various events throughout the year. The charity owns 100% of the ordinary

share capital of 100 ordinary shares of £1 each at a cost of £150. A summary of the trading results is shown below.

Sensetrade Ltd's accounting reference date is 31 December.

Turnover
Cost of sales and administrative expenses
Net profit
Amount gifted to the charity
Retained in the subsidiary
The assets and liabilities of the subsidiary
Fixed assets
Current assets
Creditors: amounts due within one year
Total net assets
Capital and reserves		 12 months to
31 Dec 2020
£
1,366
(2,466)
(1,100)
£(1,100)
880
3,402
(5,051)
(769)
£(769)

8. DEBTORS

. DEBTORS
Amount due from
subsidiary
Income tax recoverable
Other debtors		 Year to 31 March 2021
Year to 31 March 2020
£
£
3,402
5,000
13,024
15,401
-
1,410
£16,426
£21,811

9. CREDITORS

9. CREDITORS
Tax and social security
Accruals		 Year to 31 March 2021
Year to 31 March 2020
£
£
1,917
159
868
1,160
£2,785
£1,319

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

10. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed Assets
Current Assets
Current
Liabilities
Total		 Year to 31 March 2021
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
150
-
150
101,666
18,779
120,445
(2,785)
-
(2,785)
£99,031
£18,779
£117,810		 Year to 31 March 2021
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
150
-
150
101,666
18,779
120,445
(2,785)
-
(2,785)
£99,031
£18,779
£117,810		 Year to 31 March 2020
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
150
-
150
114,224
29,411
143,635
(1,319)
-
(1,319)		 Year to 31 March 2020
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
150
-
150
114,224
29,411
143,635
(1,319)
-
(1,319)
£99,031 £113,055 £29,411
£142,466

11. MOVEMENT IN FUNDS

Restricted funds:
ASSEFA - Maternal Health
ASSEFA - Rural Livelihoods
Crusade - Women's Development
Crusade - Disability Rights
Ekta Parishad - JJ2020
KGSN - Organic Farming
NBJK - Girls Education
NBJK Community Action
RCDC - Land Rights and Livelihoods
COVID19
Appeals
Total restricted funds
Unrestricted funds:
General funds
Designated funds:
Project fund
Total unrestricted funds
Total funds		 Balance at 31
March 2020
Income
Expenditure
Transfers
Balance at 31
March 2021
£
£
£
£
£
2,566
2,189
4,341
-
414
901
2,534
2,896
-
541
467
1,931
2,398
-
-
400
5,625
15,324
10,000
701
2,920
1,373
4,139
-
154
2,774
-
2,774
-
-
14,943
33,705
40,914
-
7,734
654
8,076
10,921
3,000
809
(695)
56,484
49,517
-
6,272
16,504
14,350
-
2,154
4,481
4,481
-
0
£29,411
£128,421
£152,053
£13,000
£18,779
93,055
67,778
68,802
(13,000)
79,031
20,000
-
-
-
20,000
£113,055
£67,778
£68,802
£(13,000)
£99,031
£142,466
£196,199
£220,855
-
£117,810

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ACTION VILLAGE INDIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Purposes of restricted funds:

Rural Livelihoods AVI supports ASSEFA’s Rural Livelihoods programme, currently by funding the
(ASSEFA): My Calf, My Life project.
Maternal Health/ This programme, developed from ASSEFA’s post-tsunami work, provides
Reproductive Health health awareness and improvements in sanitation and diet to 3,000 women
(ASSEFA): and children in 35 villages of Marakanam Block in coastal Tamil Nadu as well
as provide reproductive health training to adolescent girls.
From Disability to Stability This project supports the creation of groups of people living with disabilities,
(CRUSADE) who self-mobilise to claim their rights and benefits in Tamil Nadu.
Women’s Development This programme supports women’s social and economic development and
(CRUSADE): healthcare in Tamil Nadu. This work also supports elderly women, ultra-poor
groups and women living with a disability.
JaiJagat2020 (Ekta Ekta Parishad works on land and forest issues with landless people and
Parishad): indigenous communities throughout India. This fund has been specifically set
up to provide support for its March for Justice land rights campaign in 2020
and associated solidarity with Ekta Europe.
Community Action (NBJK): This fund supports the development and capacity building of NBJK’s
community development network of grass-roots organisations throughout
Bihar and Jharkhand.
Girls Education (NBJK): This project is run by NBJK and groups in its community development
network. It provides funds for fees, books and uniforms to enable girls to
complete their secondary education as well as provide tuition to girls.
Securing Land Rights and This project aims to reduce rural poverty and landlessness for families from
Livelihoods/ Fishing fishing communities in 30 villages in and around the Chilika Lake of Odisha.
Communities (RCDC): This is achieved by enabling families, and particularly the women, to gain
access to and ownership over land resources through advocacy and support
and by providing alternative livelihood support.
Women’s Organic Farming This project aimed to improve the health and economic situation of
marginalised families in six panchayats in the rural area of
Thiruvananthapuram, Kerala, by creating an organic farming producer
company that enabled the farmers to produce, market and certify their own
produce of organic fruit and vegetables in a sustainable way.
Designated Funds
Partnership Development This fund was established to provide assistance to partners for short term
Fund and pilot projects and for strengthening partners’ capacity to develop their
programmes.

The charity has sufficient resources at 31 March 2021 to fulfil its commitment to each project.

Transfers of £13,000 (2020: £30,000) were made from general unrestricted funds into restricted funds to cover deficits on individual funds where either there will be no further income or the annual planned programme exceeded the restricted income available.

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ACTION VILLAGE INDIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

12. RELATED PARTIES

There were no transactions that are required to be disclosed in these accounts.

13. PENSIONS

The charity operates a defined contribution pension scheme. The charge to the Statement of Financial Activities for the year is £916 (2020: £775). There were outstanding contributions of £218 at 31 March 2021 (2020: £159) and no prepaid contributions at the year-end (2020: £nil).

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