go(xJweave. GOODWEAVE UK (A company limited by guarantee) REPORT & FINANCIAL sfATEMENTS For the Year Ended 31" December 2021 Charity Registration No: 1139218 Company Registration No: 4210546 (England & Wales)
GOODWEAVE UK (A Company Limited by Guarantee) THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021 CONTENTS PAGE Legal and Administrative Informati¢)n ReF()rt of Directors 4-7 Independent Examinerfs Report Statement of Finanoal ActiVTties Balan Sheet 10 Statement of Cash Flows 11 Notes forming part of the FInarla1 Statements 12-15 GOODWEA VE UK Pagc2of15 Finan¢ial StateJnents 2021
GOODWEAVE UK (A Company Limited by Guarantee) The trustees of the diarity present their report aTrJ financial statements for the year ended 31" December 2021. The accounts have been prepared in accordance with the accountin9 Folicies set out in Note I to the accounts and comply with the companys Memorandum and Articles of Association, the Companies Act 2006 and the Ststement of Recommended Practice applicable to charibes preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (*bve l January 2015). REFERENCE AND ADMINIsfRATIVE INFORMATION LEGAL sfATUS Private company limited by guarantee exempt under Secbon 30. REGIsfERED OFFICE 7 Manor Road Teddington Middle5ex TWII 8BH OPERATIONAL ADDRESS Bloxham Mill Business Centre, &3rford Road, Bloxham, (on OX15 4FF DIREcfoRS David Ould (Chair) Amanda Bedan lonathan Blagbrough Terry Hudghton COMPANY SECREFARY David Ould INDEpENDEr EXAMINER John Mccullagh 39 The Farthings Kingston Uwn Thame5 r2 7Fr soucrroRS Lovdls 65 Holborn Viaduct London ECIA 2FG BANKERS The Ctroperdtsve Bank plc PO 101 l Balloon Street Manchester M60 4EP G(K)DWEAVE UK gc3oflJ Financial Stat¢m¢nts 2021
GOODWEAVE UK (A Company Limited by Guardntee) DIRECTORS. REPORT GOVERNANCE Governing Document The organisation is a charity, registered fxt 2ty November 2010, and non-profft making company limited by guardntee, inc0rated on 3 May 21X)l. The company was established under a Memordndum of Association, whith established the Ob]S and powers of the company and is governed under its Articles of Ass(xiation. In the event of the company being wound up members are required to contiibute an amount not exceeding £1. Objectives The GcKKIWeave inibative has two obiects: To relieve povety SLrffln9 and distre in any part of the wodd; and To promote research into and educab.on concerning the causes and effects of Fovety particularly (without prejudi to that generality) in lation to the conduct of business and to the conditions of employment (including self-employTnent) of tEople in any part of the world, and to publish the useful results of that researdi. In fijrtherance of these objects the organisation acts as the UK regional office of Goodweave Intemational, whose aims are: to eradiote illegal child lat£ur in the carpet irKluslry and such other products as rbfied by the G(KK1Weave label. to provide children wth con(rte optx)rtunities for education, v(Kational training and other means for preparing to mt the futu iti hope; to stimulate the employment of adults, so parents can support their families adequately; to faalitate development progrdmmes to improve the tems and conditions of employment for adult workers in the carpet and other industries with similar employment i55ue5, consistent with intemationally recognised labour standards. so that the industry can beo)me a model for providing a living wage for skilled artisans and their families and for produang carFrts using environmentally sound Prdcti. Goodweave UK has exdusive licersing rights frcffi &eave Intemational (the holder of the trddemark) to the G(x)dWeave latrel in the Untted ngdoM and agrees to grant imkM)rters a lince to use the GocJWeave label to market carpets, rugs and other products manufaciured according to the Goodweave concept on the tems and condibons set out in the cen Agreement. Statement of Directors. Responsibilities Company Law requires the directors to prepare finanaal statements for each financial year, which give a true and fair view of the state of affairs of the company as at the balance sheet date and of its incoming resources and apFdication of resources, induding income and expenditure for the financial year. In preparing those financial siatements. the directors are required to follow best Practi and: selett suitable accounting poliaes afKI apply them consistentjy; observe the methods and principle5 in the Charities SORP (FRS 102); GOODWEAVE UK Page4of15 Financial Ststcments 2021
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REpoirr (continued) • make judgements and estimates that are reasonable and prudent; prepare the accounts on the going concern bass unless It Is inappropriak to pUrne that the charity will continue in operdtion. The trustees are responsible for keepiThJ proper accounting rcfords whith disdose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2(#)6. They are also responsible for safeguarding the assets of the charity and hen for tsking reasonable steps for the prevention and detection of fraud or other irregularities. Members of the Management Committee Members of the Management Committee, who a Directors for the purpose of company law, who served during the financial year and up to the date of this rep)rt are set out on page 3. The Directors are selected by the Board in the light of thor knowledge and experÈence of the issues on which Goodweave UK works. In accordan company law, as the companfs directors, we certify that: so far as we are aware, there is no relevant audtt information of whith the company5 independent examiner is unaware; and as the directors of the companyi we have taken all steps that ought to have taken in order to make ourselves aware of any leVant audit inforniation and to establish that the companvs independent examiner is aware of that informati¢Jn. The Charities Attivities and Achievements In 2021 marketing for Goodweave UK continued to be managed by GIVI, employing a part-time UK-based consultant to handle regular contscts with the linSee5 in the UK. In 2021 the totsl UK lince fees were £70,896 of vthich £40,510 of licen fees were earned for education and rehabilitation work wÉth children and their families by our partr)ers in the carpet- producing areas of India and Nepal. This was an increase of 471% over 2020, mainly because of the gradual move out of I(kdOWn in 2021. Goodweave signed four ne4V carpet linseeS in the UK in 2021, but this was offset by the temiination of four small linSeeS. To date, GWI and tts associates have rescued more than 8950 children, supported education for 44,IXJO children, and now work5 with more than 140 imFM)rters worfdwide to monitrjr their supply chains. 99,000 adults worked on site5 linSed and inspected by Gc(*Meave Intemational in India, and Nepal in 2021 and mre than 10,(MX) inspections We carried out. Activitie5 in 2021 continued to be aff&ted by the Covid 19 pandemic. Almost all licensees stopped activity in Q2 2020 and only slowly reopened in 2021. Inspections in India and Nepal restarted in Q3 2020 but in 2021 the were still only possible by intemevtelephone and other remote working methods. This rneant that it was not possible to fvlly inspect licensees and full annual inspections could not be carried out. There was also a signifiGint delay in accrediting new linSee5. It is hoped that the full inspection system will be in operation by the second quarter of 2022. PJge5of 15 FinanGial Statements 2021
GOODWEAVE UK (A Company Limited by Guarantee) DIRECTORS. REPORT (continued) In 202012021 GWI raised more than £275,(KIO for COVID relief, the majority of which was spent on critical food relief for vulnerable worers and families in India, Nepal and Bangladesh. Food reached 114,000 people and we also distributed PPE to licensee supply chains, helped infomal, migrant workers Secu bank accounts in order to e1ve government aid, established e-leaming opportLtnities for children in our Child Friendly CINnmunities in India and undeThvrote COVID- protrKols at our home for rescued children in Nepal, including paying for testing and PPE and establishing separate Spa for newly rexued children. Financial Review The Direttors of Goodweave UK rerrf)rt a net surplus of £2.295 for the period under revsew. At the year-end there was a totsl 1ve of £11,585; made up of £10,944 of unrestricted funds and £641 of restrirted fvnds. Details of the major ttems on the balance sht can be found in the notes to the accounts. The fluctuations in debtors and creditor5 year on year are simply the rUlt of the timing of receipts and payments around the year end. Reserves and Risk Managemert The trustees have agreed that G(Weave UK can continue its operations and cary out its charitsble attivities with minimal reseNes and as a result the reseNes will be kept at a basic level during 2022. The trustees intend to all(Kate some of the existing unrestrirted reserves as scM)n as GWI operations retum to nornial. The trust are confident tha¢ because of the current methods of operation, this policy d5 not create any signfficant risk for the tharity or its beneficiaries. The trustees regularly examine the major risks that the charity faces and seeks to control these risks to mitigate any impatt they may h&rfe on the tharity. These figures are for 2021 and were still affected by the impatt of Covid 19 on the UK and intemational economy. All large outstanding lince fees for 2021 have been paid and most licens restsrted operations in 2021. In practice the fees are simply passed through the GWUK accounts and so any105s to GWUK debtors will be offset by the same reduction in creditOT5. Public Benefft Siatement Directors of a charity have a duty to reFKrt in their annual rep on their charivs public benefit. The Direciors have concluded that the section above on"Activities and Achievements" demonstrate5 that GOclWeave UK'S work benefft5 a wide ronge of people and organisations in both the UK and South Asia and a5 a resu. the aims of the charity continue to be charitable; the benefits are for the public. are not unreasonably rericted in any way and certainly not by abilty to pay and; there is no detriment or harm arising from the aims or acbvitie5. GOODWEAVE UK Page6of 15 Financial Sw¢m¢nts 2021
GOODWEAVE UK (A Company Limited by Guarantee) DIRECTORS. REPORT (a>ntinued) Fundralslng Ststement The trustees have tsken note of Sections 13 and 14 of trE (Jarities (ProOn and Social Investment) Act of 2016. Goodweave UK does Thjt Use professional fundraisers. Fundraising activty with the generdl publtc is limited to a donation button on the websrte and links to thi5 frotn social inft)rmation plafftinns. No complaints about suttj actsvtty were rKeived by the charity during 2021. Independent Examiner john Mccullagh carried out the Indndent Examination of the Company. In accordan wlth Sectton 485 of the Companies Att 2006. a resolution p¥ing the re-appointment of Mr John Mccullagh a5 independent examirer will be put to first Board Meeting fdlowing the annual general meeting. Approved by the Board on the iilh April 2022 aNI signed on its behalf by: l.,lQfy Qi David Ould GOODWEAVE UK Page7of IS FI¢181 Stat¢rn¢tts 2021
INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF GOODWEAVE UK LTD I report on the finanaal ststements of G(M)dWeave UK Limited for the year ended 31g December 2021 set out on pages 9 - 11 and notes to the accounts on pages 12 to 15. These financial ststements have been prepared in accordan wtth the Charities 9)RP (FRS 102) under the historical cost convention and the accountiThJ poliae5 set crtjt therein. This report is made solely to the chaiit¢s trustees, as a l)cKty. in accordance with Section 43 of the charikn.es Att 1993 and regulations made under section 44 of that Att. My work has been undertaken so that I might state to the charivs trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the extent pemiitted by law, I do not accept or assume responsibility to anyone other than the d)aritable company and its trustees as a body, ft)r my audit worK for this retx)rL or for the opinions I have fomied. Respectlve responsibilities of directors and indepwdent examiner As described on page 4 the companvs directors are responsible for the preparation of the financial ststements in accordan with applicable law and United ngdoM accounting stsndards. My responsibility is to examine the financial statements in accordan with relevant legal and regulatory requirements and United ngdorn Standards. I report to you my opinion as to vthether the finanaal slatements give a true and fair view and are propedy prepared in accordance with Companie5 Att 2006. 1 also rewrt to you rf, in my opinion, the Report of the Directors is not consistent with the financial statements, if the company has not kept proper accounting records, if I have not e[Ved all the information and explanations I require for the audit, or if infornation specified by law regarding directors, remunerations with the company is not disclosed. I read the Report of the Dirertors and congder the implications for my report, tf I become aware of any apparent misstatement within IL Basis of Opinion My work was conducted in accordance wtth the general directions given by the Charity Commission. An examination includes a review, on a test basis, of evidence levant to the amount and disclosures in the financial stztements. It also indudes an assessment of the significant ethmates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the companvs arcumstsnces, consistenty applied and adequately disdosed. I planned and performed the examination so as to obtsin all the infomiation and explanation5 which I considered necessary in order to promde me wtth sufficient evidence to give reasonable assurance that the financial statements are free from misstatement, whether caused by fraud or other irregularÉty or error. In fomiing my opinion. l also evaluated adequately the presentstion of infomation in the financial statements. Oplnlon In my opinion the finanaal statements give a tnje and fair view of the companvs affairs as at 31st December 2021 and of the defiat of incoming resources over resources expended for the year then ended and have been properly prepared in accordance wtth the Companys Act 2006 and principles of the Charitie5 SORP (FRS 102). Dats.. 3- P4r."J John MCCuSlagh G(K)DWEAVE UK Page8of 15 Flnancial Swements 2021
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Financial Attivities (Including Income & Expenditure Account) For the year ended 31st December 2021 2021 2020 Notes Unrestricted Restiicted Total Total Funds £ Funds £ Funds £ Funds me Endowments from vi Grants Donations Licence Fees Sundry Income Gift Aid Bank Interest Total Incoming Resources 2428 808 70,896 863 3,236 70,896 863 3,753 48,324 799 655 28 71567 75,395 53,531 enditure on harita Direct Objectives Grants Management & Admin. Total Resources Expended 72.238 808 72,238 808 54 49,123 5,943 62 73,046 73,100 55,128 Net income (expenditure) 774 479 Balan at l Jan 2021 8,170 1,120 9,290 10,887 Balan at 31 2021 10,944 641 11,585 9.290 GOODWEAVE UK Page9of 15 Financial Statements 2021
GOODWEAVE UK (A Company Limited by Guarantee) Balance Sheet as at 31st December 2021 2021 2020 CURREKf ASSErs Debtors and Prepayments Cash at Bank and in hand 36,580 40,706 70,908 58,323 UABILrriES Amounts falling due wrthin year (59,323) (49,033) Net Current Aets 11,585 9,290 FUNDS Unrestricted Funds Generdl Restricted Fund5 10,944 641 11,585 8,170 9,290 The directo are Satisfied that the company is entitied to exemption from the provisions of the Companies Act 2006 (the Art) relating to the audit of the financial statements for the year by virtue of secbon 477, and that no member or memtEt5 have requested an audit pursuant to section 476 of the ACL The direttors acknedge their responsbilitses for comp"ng with the requirements of the Att with respect to accounting rrdS and the preparation of finanual siatements These financial siatements have been prepared in accordan with the provisions applicable to companies subjett to the small companiel regime. The Board of Directors approved these accounts on iith April 2022. David Ould Direttor n Director GWDWEAVE UK Page Ioof 15 Fitwlri Statetnents 2021
GOODWEAVE UK (A Company Limitsd by Guarantee) Statement of Cash Flow at 31st Dernber 2021 Total Funds Prior Year Funds Note Cash Flows from Operating Acbvit]es Interest 16,711 2,898 Table 9 Change in cash in 2021 Cash at l January Cash at 31 t)ecember 17,617 34,328 14,716 17,617 GOODWEAVE UK Pag¢ll of15 Fitwcial Staents 2021
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUls For the Year Ended 31" December 2021 l) Accounting policies a) Basis of preparation Ihe financial statements have bn prepa under the historical cost convention, modified to include the revaluation of certain ed assets, and in accordance with the Financial Reporting Standard for Smaller Ents"ties (effective January 2008) and the Companies Act 2006. These accounts are the accounts of GLKKIWeave UK These accounts have been prepared on an accruals basis and include income and expenditure as they are eamed or incued, rather than as cash is received or paid. The recommendations of the Ststement of Recommended Pracbce applicable to charities preparing their accounts in accordance with the Financial Reportin9 Standard applicable in the UK and Republic of Ireland (FRS 102) (effect¢ve l January 2015), have been followed in the preparation of these accounts. Goodweave UK is a Public Benefit Entity as defined by FRS 102. iv) b) Going concern At the time of approving the accounts, the Trustees have a reasonable expertation that the company has adequate resour to continue in operational Sten for the foreseeable fiJbJre. Thus, the Trustees, continue to adopt the going cOnM basis of accounting in preparing the accounts. b) Fund accounting The companvs unrestricted fvnd corlsists of funds, which the company may use for its purr at its discretion. The companws restrirted fijnds are those where the licenseeldonor has imwsed restrictions on the use of the ftjnds, vthich are legalty binding. c) Voluntsry income All vduntary Income is induded uw)n receipL •• Grants receivable are credited to income immediately upon receipt. d) Investment income Credit is taken for interest when the interest falls due ft)r payment. e) Administration expwdlture Administration expendi comprises crtsts incurTed in wnning the charity. Where applicable, costs have been treated as dirett charitable expenditure. GOODWEAVE UK Page 12of15 Fttiancial Statements 2021
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE AccouKfs (continued) For the Year Ended 31st December 2021 2. Licence Fees: Importers must pay a f to be able to use the trddemarked Goo(Meave label and logo. 57Wo of the fee is sent to the G(Weave office in the relevant prrxjucer country to fund random inspections, and welfare, education and rehabilitatson activitie5. 43% contributes to prcKnotion of the GcdWeave mark and aims in the UK LIn importers must rert on their import5 arKI pay the licen fee wtthin 30 days of each quarter day (March 31°, June 3, September 30th, December 311. Accounting is made for the quarter in which the licen fee is, or sh(MJld have b&n. received for imports in the prevlous quarter. Estimates of outstanding payments have been induded in these accounts because they are a significant part of total assets and of the reserves. In 2021 GWUK had to wrFte off £600 of licensee debts because the companies Conrned had ceased Gocrfjweave related actsvty. This had no impact on the profit and loss as it reduced our GWI credttor by the same amount. nce fee payments owed to GWUK at year end = £35,589 3. Grants Received: 4. Donations Received: Donations received included: Wyndham Charitsble Tnjst = £l,(KX) 5. Marketing Partner/Sponsor Payments Rffeivable: Income from marketing pather/sponsor - £1,342 (£591 receivable at the year*nd) GOODWEAVE UK Pagc 13 of15 Fillanctal Statements 2021
GOODWEAVE UK (A Company Limitsd by Guarantee) NOTES TO THE Accouwfs (continued) For the Year Ended 31st December 2021 6. Direct Objectives Item of Expenditure Unrestricted Restrlcted Totsi (£) (£) (£) Goodweave Intemational Project Grant to GWI Total Grants Transfer of lince fees to GcMJdWeave India/Nepal Marketing and LInsing 40,510 31,728 40,510 31,728 Support to GWI 808 808 Management & Administration Totsl 54 73,100 73.046 Note: m support Costs were incurred in making the grants apart from bank charges for the transfers. 7. Llabilities 2021 (£) 32,651 25,083 2020 (£) 23,554 18,256 (479) Licence payments to Nepal/India Marketing Payments to GWI Previous Year Correction/BF VAT Payment Totsl 59,323 49,033 *Note: Liabilities corretted by £479 in 2021 to reflect overpayment to G in previous years. 8. Debtors Item 2021 (£) 35,589 591 400 36,580 2020 (£) 40,117 589 Licence f Privats Label Fees Gift Aid 40,706 Page 14 of IS Fitianciai SthtemeDts 2021
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2021 9. Reconciliation of Net Incomel(Expenditure) to Operating Athvity Net Cash Flow 2021 2020 Net Incomel Ex enditure Ad'ustments for: Interest Increase IDecrease in Debtors Increase Decrea in Creditors Net Cash in O ratin Activities for 2020 as r the SOFA 10. Share Capital: The company is limited by guardntee arKI does fK)t have share capital. 11. Remuneration of Dirertors: No directors received any remuneration or repaent of expenses in the year. 12. Small Company Exemptions: Yhese finanaal ststements have been prepared in accordan Viryth the special pffjwsions relating to small companies wtthin Part 15 of the ComFonies Act 2006 and with the Financial Rewrting Standard for Smaller EntTties (effective April 2(NJ8). For the financial year ended 31 December 2013 the company was entitled to exemption from audit under section 477 Companies Act 2006. and no notice has been deposited under secbon 476. The dirertors acknowledge their re5txinsibilities ensuring that the company keeps accounting records which comply section 386 and for preparing financial statements which give a true and fair view of the stste of affairs of the company as at the end of the finanaal year and of its profit or loss for the financial year in accordance wtth the requirements of sections 394 and 395 and which otherwise comply the requirements of the C(Mpanies Act 21X)6 relating to financial statements, so far as applicable to the company." GOODWEAVE UK P8ge 15of15 Financial Staterncllts 2021