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2020-08-31-accounts

REGISTERED COMPANY NUMBER: 06195961 (England and Wales) REGISTERED CHARITY NUMBER: 1129479

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

PRAXIS UK (A COMPANY LIMITED BY GUARANTEE)

Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG

PRAXIS UK

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7 to 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statements 11 to 16
Detailed Statement of Financial Activities 17

PRAXIS UK

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES G Devadass B Kumar T Thomas T M Vadakkancheril REGISTERED OFFICE 33 The Birches Farnborough Hampshire GU14 RP REGISTERED COMPANY 06195961 (England and Wales) NUMBER REGISTERED CHARITY 1129479 NUMBER INDEPENDENT EXAMINER Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG

Page 1

PRAXIS UK (REGISTERED NUMBER: 06195961)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Charitable objects

The charitable objects, as stated in the Memorandum and Articles of Association of Praxis UK are to benefit the general public through developing the skills of poor and marginalised sections of society in such a way that they are better able to identify and help meet their needs, and to participate more fully in society particularly through involvement in democratic and participatory processes. Such objects are to be advanced directly through action in the community and through the promotion of the efficiency and effectiveness of charities working to provide such benefits to such sections of society.

Strategic Directions

Praxis UK has developed a Strategy paper for 2008-2010. This strategy continues to guide the work of Praxis even in 2019-20. The organisation's vision is a world in which every person has a right to participate in decisions, which affect their lives. Praxis UK's Mission is to enable excluded people to have an active and influential say in their own equitable and sustainable development.

To achieve our aims, four strategic directions inspire us and give us guidance. They are based on the needs identified by our stakeholders and recent trends in participatory development. They are:

  1. Build the technical and organisational capacity of communities, civil society, the private sector and government to enable excluded people to have an active and influential say in their own equitable and sustainable development.

  2. Develop partnerships and strengthen mechanisms for effective and efficient communication and collaboration between communities, civil society, the private sector and governments. 3. Advocate for appropriate participatory laws, procedures and policies for a more equitable and sustainable development to occur.

  3. Scale up the use of participatory approaches for a more equitable and sustainable development.

Page 2

PRAXIS UK (REGISTERED NUMBER: 06195961)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Charitable activities

In 2019-20, Praxis UK was able to carry out activities aligned with its strategic objective and to further its charitable objects for public benefit. This was largely in the form of consultancy contracts for development support services and capacity enhancement.

Praxis UK continued to work on issue of bonded labour and trafficking through Pathways, a digital case management system for survivors of human trafficking in collaboration with the UK Home Department. A new issue that Praxis took up in the year is on creating people powered digital narratives - and creating ways for children and adolescents living in peri urban and rural areas to understand more about digital platforms and story telling and training them to create content for the same based on their lived realities. The narratives unpack the themes of air quality, health and secondary education for girls. Praxis also facilitated capacity building workshops for academic researchers and practitioners across the world.

The year 2019-20 saw the unprecedented effects of the Covid-19 pandemic which brought life to a grinding halt across the globe. Praxis continues to manage with limited staff and the high dependency volunteers with support for operational matters being provided remotely, from Praxis India.

Civil society globally is grappling with the pandemic, related lockdowns and their impact which have set back the work of decades by several paces. The pandemic has highlighted the disproportionate impact of a disaster on people on the margins of society, those excluded because of their caste, gender, religion, ability, occupation and age - groups that Praxis UK works closely with. The lockdown threatened to reverse the progress made in the spheres of child rights, women empowerment and workers' rights made by generations of activism.Such a bleak time reiterates that civil society cannot afford to lose hope. It is a time when the clarion call is for action to reclaim the lost progress.

FINANCIAL REVIEW

Financial review

Praxis UK made a net surplus of £415,156 in the year ended 31 August 2020 (2019: £12,834).

The results for the year to 31 August 2020 are laid out in the Statement of Financial Activities and its state of affairs in the Balance Sheet. The trustees consider the state of affairs satisfactory.

Reserves policy

It has been and remains the intention of Praxis UK's trustees to pursue its charitable objectives in partnership with Praxis India, which has significant expertise and insights in this area. Support is anticipated to be through grants either to Praxis India itself or directly to projects it has identified.

For some time it has not been possible to take this intention forward; the reason is that Praxis India has taken the Indian Tax Authorities to Tax Tribunal over the Tax Authorities' attempts to apply income tax on temporary cash flow surpluses on deficit funded grants - and more generally on the surplus of charitable trading. While the cases are still being taken through the due legal procedures, Praxis India has been advised to exercise caution in accepting funds from the UK.

In consequence the Trustees reserves policy is to accumulate funds until the Indian tax issue has been resolved. Accumulated reserves totalled £620,188 at year end. Once that has been resolved, the intention will be to release funds to Praxis India over a period of time until the funds remaining in the UK charity reduce to £7,500 or such other amount that the Trustees decide, at that time, is necessary to protect the charity's capacity to fulfil its charitable objects.

Page 3

PRAXIS UK (REGISTERED NUMBER: 06195961)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

FUTURE PLANS

In the next year, Praxis UK will be seeking more volunteers to represent it at forums and see some changes in its leadership. It hopes to engage with more UK based stakeholders and to generate enough opportunities to stay in business given the tough economic climate. Praxis UK plans to continue to fulfill its charitable objects through pursuing new partnerships and maximization of its income from current streams. The trustees acknowledge brief periods of uncertainty and change in plans and operations and hope to tide over these with minimal interruption to the core charitable work of the organisation. Praxis UK has planned to increase its geographical reach as well as diversity in the nature of tasks that it has done.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 2 April 2007 and Praxis UK was registered as a charity on 6 May 2009. It is the intention of the Trustees to formally register it as a charity in the near future. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed by its Articles of Association. In the event of a winding up members are required to contribute an amount not exceeding £1.

Recruitment, appointment, induction and training of new trustees

Trustees are appointed at the Board meetings or co-opted. On appointment, all trustees are provided with copies of constitutional documents.

There is a separate class of membership known as Guardian Membership. A new Guardian Member can be appointed only with the approval of existing Guardian Members who shall consult with the Board of Praxis India prior to making any new appointment. In the event there are no existing Guardian Trustees then Praxis India has the right to determine two new Guardian Members.

Organisational structure

All major operating decisions are made by the Chair of the Board of Trustees in consultation with other board members.

Praxis India

Praxis UK was incorporated with the intention of bringing the experience and expertise of Praxis India to the North. Praxis India has been providing services to the development sector for many years and is considered a pioneering institute in the field of participatory research and training. Praxis India is not the parent company of Praxis UK but it is considered to be a related party. A separate class of Guardian Membership exists through which Praxis India has the ability to intervene in Praxis UK in exceptional circumstances.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on ............................................. and signed on its behalf by: 19/05/2021

................................................................. T Thomas - Trustee

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRAXIS UK (REGISTERED NUMBER: 06195961)

Independent examiner's report to the trustees of Praxis UK ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that 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 Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

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 respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not 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 (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

Jeremy Kitson FCA ICAEW Prime Chartered Accountants Corner Oak 1 Homer Road Solihull B91 3QG

Date: .............................................20/05/2021

Page 5

PRAXIS UK

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

2020
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Charitable activities
4
Activities to advance core objectives
528,810
Investment income
3
951
Total
529,761
EXPENDITURE ON
Charitable activities
5
Activities to advance core objectives
114,605
NET INCOME
415,156
RECONCILIATION OF FUNDS
Total funds brought forward
205,032
TOTAL FUNDS CARRIED FORWARD
620,188
2019
Total
funds
£
26,695
897
27,592
14,758
12,834
192,198
205,032

The notes form part of these financial statements

Page 6

PRAXIS UK (REGISTERED NUMBER: 06195961)

BALANCE SHEET 31 AUGUST 2020

2020
Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
10
31
CURRENT ASSETS
Debtors
11
8,780
Cash at bank and in hand
897,029
905,809
CREDITORS
Amounts falling due within one year
12
(285,652)
NET CURRENT ASSETS
620,157
TOTAL ASSETS LESS CURRENT
LIABILITIES
620,188
NET ASSETS
620,188
FUNDS
13
Unrestricted funds
620,188
TOTAL FUNDS
620,188
2019
Total
funds
£
41
-
509,309
509,309
(304,318)
204,991
205,032
205,032
205,032
205,032

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

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continued...

PRAXIS UK (REGISTERED NUMBER: 06195961)

BALANCE SHEET - continued 31 AUGUST 2020

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 19/05/2021

............................................. T Thomas - Trustee

The notes form part of these financial statements

Page 8

PRAXIS UK

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period
2020
£
387,720
387,720
387,720
509,309
897,029
2019
£
30,164
30,164
30,164
479,145
509,309

The notes form part of these financial statements

Page 9

PRAXIS UK

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2020 2019
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 415,156 12,834
Adjustments for:
Depreciation charges 10 14
(Increase)/decrease in debtors (8,780) 152
(Decrease)/increase in creditors (18,666) 17,164
Net cash provided by operations 387,720 30,164
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.9.19 Cash flow At 31.8.20
£ £ £
Net cash
Cash at bank and in hand 509,309 387,720 897,029
509,309 387,720 897,029
Total 509,309 387,720 897,029

The notes form part of these financial statements

Page 10

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. STATUTORY INFORMATION

Praxis UK is a charitable company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the Reference and Administrative Details page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

Donated Income is income received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.

Incoming resources from charitable activities are accounted for when earned.

Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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continued...

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Transactions with Praxis India are normally conducted in sterling and so exchange differences do not arise unless specifically charged by Praxis India.

3. INVESTMENT INCOME

Interest receivable
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Consultancy and
workshops
Activities to advance core objectives
Other income
Activities to advance core objectives
5.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 6)
£
Activities to advance core objectives
112,717
2020
£
951
2020
£
528,258
552
528,810
Support
costs (see
note 7)
£
1,888
2019
£
897
2019
£
26,126
569
2019
£
897
26,695
Totals
£
114,605

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continued...

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Subcontractor charges
7.
SUPPORT COSTS
Activities to advance core objectives
Support costs, included in the above, are as follows:
Office costs
Bank charges
Depreciation of tangible fixed assets
Governance costs
Accountancy and legal fees
8.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
2020
£
112,717
Office
Governance
costs
costs
£
£
48
1,840
2020
Activities
to
advance
core
objectives
£
38
10
48
2020
Activities
to
advance
core
objectives
£
1,840
2020
£
10
2019
£
12,843
Totals
£
1,888
2019
Total
activities
£
61
14
75
2019
Total
activities
£
1,840
2019
£
14

Page 13

continued...

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

During the year to 31 August 2020, trustees' expenses of £95 (2019: £Nil) were paid to one trustee in respect of travel expenses.

10. TANGIBLE FIXED ASSETS

10. TANGIBLE FIXED ASSETS
Plant and
machinery
£
COST
At 1 September 2019 and
31 August 2020 749
DEPRECIATION
At 1 September 2019 708
Charge for year 10
At 31 August 2020 718
NET BOOK VALUE
At 31 August 2020 31
At 31 August 2019 41
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2020 2019
£ £
Prepayments and accrued income 8,780 -

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continued...

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income
13.
MOVEMENT IN FUNDS
At 1.9.19
£
Unrestricted funds
General fund
205,032
TOTAL FUNDS
205,032
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
529,761
TOTAL FUNDS
529,761
Comparatives for movement in funds
At 1.9.18
£
Unrestricted funds
General fund
192,198
TOTAL FUNDS
192,198
2020
2019
£
£
282,716
291,533
1,106
1,106
1,830
11,679
285,652
304,318
Net
movement
At
in funds
31.8.20
£
£
415,156
620,188
415,156
620,188
Resources
Movement
expended
in funds
£
£
(114,605)
415,156
(114,605)
415,156
Net
movement
At
in funds
31.8.19
£
£
12,834
205,032
12,834
205,032

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continued...

PRAXIS UK

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 27,592 (14,758) 12,834
TOTAL FUNDS 27,592 (14,758) 12,834

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
At 1.9.18
£
192,198
192,198
Net
movement
in funds
£
427,990
427,990
At
31.8.20
£
620,188
620,188

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
557,353
557,353
Resources
Movement
expended
in funds
£
£
(129,363)
427,990
(129,363)
427,990

14. RELATED PARTY DISCLOSURES

Praxis India is considered to be a related party of Praxis UK as it is able to intervene in the decision making process of Praxis UK in exceptional circumstances through the special category of Guardian Membership. In the year ended 31 August 2020 Praxis India charged Praxis UK £1,000 (2019: £12,483) for it's services as subcontractor. This was below market rates.

Praxis UK recovered expenses of £9,818 (2019: £5,528) during the year ended 31 August 2020 that were payable to Praxis India.

At 31 August 2020 Praxis UK owed Praxis India £282,716 (2019: £291,533).

Page 16

PRAXIS UK

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

INCOME AND ENDOWMENTS
Investment income
Interest receivable
Charitable activities
Consultancy and workshops
Other income
Total incoming resources
EXPENDITURE
Charitable activities
Subcontractor charges
Support costs
Office costs
Bank charges
Plant and machinery
Motor vehicles
Governance costs
Accountancy and legal fees
Total resources expended
Net income
2020
£
951
528,258
552
528,810
529,761
112,717
38
10
-
48
1,840
114,605
415,156
2019
£
897
26,126
569
26,695
27,592
12,843
61
-
14
75
1,840
14,758
12,834

This page does not form part of the statutory financial statements

Page 17