**REGISTERED COMPANY NUMBER: 07715471 (England and Wales) REGISTERED CHARITY NUMBER: 1145084**
## **HUMAN CAPABILITY FOUNDATION**
## **CONSOLIDATED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED**
**31 DECEMBER 2020**
Berringers LLP Chartered Accountants and Statutory Auditors Lygon House 50 London Road Bromley Kent BR1 3RA
**HUMAN CAPABILITY FOUNDATION**
## **CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2020**
||**Page**|
|---|---|
|**Report of the trustees**|1 to 5|
|**Report of the independent auditors**|6 to 8|
|**Consolidated statement of financial activities**|9|
|**Consolidated and charity balance sheet**|10|
|**Consolidated cash flow statement**|11|
|**Notes to the consolidated cash flow statement**|12|
|**Notes to the consolidated financial statements**|13 to 25|
**HUMAN CAPABILITY FOUNDATION**
## **REPORT OF THE TRUSTEES for the year ended 31 December 2020**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the audited consolidated financial statements of the charity for the year ended 31 December 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**
The Human Capability Foundation (HCF) is a grant-making foundation with the objective of promoting such purposes as are exclusively charitable in accordance with the laws of England and Wales as the trustees may from time to time determine. The Foundation's primary focus is in India and on the issues of:
- Women and girls' rights and empowerment
- Sexual and reproductive health rights
- Gender equality
- Rights of economically and socially marginalised people
- Mental health and disability rights
- Labour and migration rights
- Environmental protection and climate change mitigation
The HCF seeks to build long-term funding relationships with non-governmental organisations (NGOs) and community-based organisations (CBOs) which share these values. Support of NGOs and CBOs will enhance the capability of individuals and communities to manifest self-sustaining and rewarding lives for themselves, their communities and future generations. It will foster local knowledge and expertise so that communities themselves are better able in the long-term to demand their rights.
The HCF uses a number of different measures to assess success. The HCF should:
- Ensure grantees have been able to carry out their work effectively and in line with what was agreed between themselves and the HCF.
- Ensure that work done by grantees can lead to the realisation of people's rights, and can challenge and transform the societal structures that marginalise people.
- Ensure that our grantees strive to transfer knowledge and power to the marginalised people that they work with.
- Receive regular progress reports from our grantees which detail the achievements the organisation have had, what feedback the grantees have received from the people they work with, and new ideas for how to develop and refine their work.
- Receive continued donations and income in order to secure stability and the ability to provide multi-year grants.
- Maintain low costs in order to maximise the funds available for carrying out charitable activities.
The short-term aims of the HCF are to continue supporting organisations and identify new organisations who are working at the grassroots level in the most marginalised communities. The HCF wishes to remain an agile organisation that can respond quickly to emerging needs and requirements. Our medium-term aim is to ensure that we provide space for our grantees to innovate within their work, trying new initiatives and ideas. A long-term goal is to significantly increase our annual level of funding. We class this as a long-term goal because we want to increase our funding at a pace that means we continue to find exemplar organisations to fund.
## **Public benefit**
The trustees have had regard to Charity Commission guidance on public benefit and consider that the objectives, aims and achievements of the charity described in the report enable it to meet its duty to the Charity Commission as per section 17 of the Charities Act 2011, and to the benefit of the public.
Page 1
**HUMAN CAPABILITY FOUNDATION**
## **REPORT OF THE TRUSTEES for the year ended 31 December 2020**
## **STRATEGIC REPORT Achievement and performance Charitable activities Charitable activities**
This year HCF have continued to support a significant number of NGO's, with grants approved during the year totalling £1,104,567 (2019: £777,151). The grants have been distributed in accordance with the charitable objectives as below:
|- Women and girls' rights and empowerment
- Sexual and Reproductive Health Rights
- Gender equality
- Rights of economically and socially marginalised groups
- Mental health and disability rights
- Labour & migration rights
- Environmental protection and climate change mitigation
- Covid Emergency|198,134
244,085
161,373
158,056
74,821
121,195
101,946
44,956|
|---|---|
||1,104,567|
HCF continued its support to the majority of the organisations we had supported in the previous year. HCF's grantees were substantially affected by COVID-19 and subsequent lockdowns. Many of our grantees rely on large, in-person meetings to do their work, and from April 2020 this was mostly not possible. Moreover, many of the communities that our grantees work with were hugely impacted by job losses resulting from lockdowns which meant that many of our grantees needed to pivot to providing emergency relief to people. This was in the form of cooking oil, food, soap and PPE. HCF took the decision to send specific funds to organisations for them to provide emergency relief to their communities. HCF had to acknowledge that some of the work that had been planned and agreed with grantees would be delayed. HCF continued support to these organisations so that they could pay staff salaries and make plans to adapt their work rather than being weakened organisationally by the pandemic. HCF wanted our grantees to survive the pandemic, and flourish beyond it.
Towards the end of 2020, the Indian government brought in changes to the laws concerning foreign funding. This has prompted an overhaul in the way that HCF's grantees function and HCF will need to continue to monitor the situation and make the necessary adjustments to ensure our activities abide by all of the new requirements.
Despite the year's challenges there have been numerous achievements by our organisations, for example: - Shifted in-person learning for adolescent girls to online and continued educating out-of-school adolescent girls.
- Challenged and counselled families to prevent early marriages of young women. This was increasingly important due to the negative effects of the pandemic. As families' incomes became more precarious, early marriage was seen as a prudent decision.
- Provided emergency relief to thousands of people affected by lockdowns and job losses.
- Provided essential support to migrants travelling back to villages from cities after lockdowns were announced. Also ensuring that wages were paid to workers in cases of attempted wage theft and business closures.
- Researched the effects of the pandemic and lockdown on various communities so that grantees' work could be adapted to community needs.
- Substantially increased our funding of environmental causes.
- Provided early intervention solutions to babies born with disabilities, supporting families to get appropriate care for their young babies.
HCF's work benefits the wider society in countless different ways. For example, one of our partner organisations, Anjali, works with long-term residents at mental health hospitals in West Bengal. But their work also helps to change societal attitudes to psychosocial disabilities, helps to reintegrate residents into their families and communities, and operates counselling sessions within communities so that mental health treatment is accessible to more people. HCF's investments performed as expected and generated steady income in 2020.
Page 2
**HUMAN CAPABILITY FOUNDATION**
## **REPORT OF THE TRUSTEES for the year ended 31 December 2020**
## **STRATEGIC REPORT Achievement and performance**
## **Financial Review**
Total grants approved by the foundation in 2020 were £1,104,567 (2019: £777,151). Total donations received by the Charity in 2020 amounted to £4,399,770 (2019: £20,983,667). This included a gift of 90% of shares in Trigon Snacks Trading Ltd, valued at £3,800,000 which has been eliminated on preparation of the Group accounts. HCF accepted this gift of shares as it would be another source of income for the charity. One of HCF's trustees is the director of the company and therefore we will receive transparent and consistent reporting into the company's performance.
In 2019 donations included three gifted properties valued at £19,540,000 on the dates of transfer. The three properties donated during 2019 were revalued to reflect the market average 5% investment yield of the annual rent received. The trustees are not qualified surveyors but believe that this valuation method represents a sufficiently accurate estimation without the need to spend any of the charity's funds on professional valuations. The valuations for the already owned two properties have not, in the trustees opinion, changed in value materially since the last valuations were carried out.
During the year rental income received from the properties owned by HCF amounted to £1,248,792 (2019: £1,205,435). These properties provide on-going monthly sources of income from the rent.
The HCF seeks to maintain low costs, and using two forex foreign exchange specialists is a key way in which we minimise the exchange rate costs of sending funds to India.
The HCF holds reserves because we plan to be a long-term funder in India providing small-medium-sized grants to organisations. At the year end total reserves held were £34,040,242 (2019: £29,502,474). We hold reserves to ensure that we can commit to multi-year funding for grantees. In 2020 an additional £1,545,346 was invested in a renewable energy investment bond. We assessed that it was a low-risk investment but one that would provide a satisfactory return and put our cash reserves to good use, while retaining the necessary funds in order to meet our grants-making commitments. We have judged that a renewable energy portfolio is in line with our charity's ethics as the funds are used to create green energy resources. At the end of the year, this investment was performing as we had intended and no issues had arisen.
Our long-term financial plans are to significantly increase the level of funds we have in order to be able to make grants to a larger number of organisations. HCF will continue to provide long-term, core grants of unrestricted funds to NGOs as this allows the organisations to have stability and do the work that they truly feel is important.
## **Future plans**
Due to the new Indian laws and the uncertainty of the COVID pandemic, 2021 will be a year of change. HCF will be seeking more local Indian advice and expertise to ensure that we stay abreast of the new regulations and that our work in India can be effective as possible. We will of course be continuing our grant-making model and identifying new grantees. HCF plans to increase the amount of funding we give to organisations working on environmental protection. In 2021 we are expecting that our grantees will continue to be affected by the COVID pandemic and its repercussions.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Page 3
## **HUMAN CAPABILITY FOUNDATION**
## **REPORT OF THE TRUSTEES for the year ended 31 December 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure**
The Human Capability Foundation is a charitable company limited by guarantee, incorporated in December 2011. The three trustees are: Luke Pagarani Davinder Pagarani Natasha Pagarani
The trustees are also company directors. Under the requirements of the Memorandum and Articles of Association, the directors retire on an annual basis and, being eligible, offer themselves for re-election.
Natasha Pagarani is the Foundation's Secretary and the three trustees jointly manage the foundation, meeting informally on a regular basis to discuss grants, funding and other activities.
In 2020, the HCF received a total of £nil (2019: £1,443,667) in donations from Windsor Investment Holdings Limited, Giant Exports Services Ltd £399,770 (2019: £355,000), Natco Foods Ltd £200,000 (2019: £nil), Landfield Investment Holding Ltd £nil (2019: £506,310) and Mystical Worldwide Trust £nil (2019: £65,834).
T.Choithram & Sons (London) Ltd is the parent company of Natco Foods Limited, of which Luke Pagarani is Managing Director, Natasha Pagarani is also employed and Davinder Pagarani is engaged as a consultant. Natco Foods Limited is a company based in the UK whose core business is the sourcing, processing and selling of foods from around the world to consumers primarily in the UK. It is the intention of T.Choithram & Sons (London) Ltd and its subsidiaries to continue financial support of the HCF indefinitely.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 07715471 (England and Wales)
**Registered Charity number** 1145084
## **Registered office**
c/o Natco Cash & Carry Silverdale Industrial Estate Silverdale Road Hayes London UB3 3BL
## **Trustees**
N Pagarani L Pagarani D Pagarani
## **Company Secretary**
N Pagarani
## **Auditors**
Berringers LLP Chartered Accountants and Statutory Auditors Lygon House 50 London Road Bromley Kent BR1 3RA
Page 4
**HUMAN CAPABILITY FOUNDATION**
## **REPORT OF THE TRUSTEES for the year ended 31 December 2020**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Human Capability Foundation for the purposes of company law) are responsible for preparing the Report of the trustees 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 affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which 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.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **AUDITORS**
The auditors, Berringers LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a Strategic report, approved by order of the board of trustees, as the company directors, on 22 September 2021 and signed on the board's behalf by:
N Pagarani - Trustee
Page 5
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HUMAN CAPABILITY FOUNDATION**
## **Opinion**
We have audited the consolidated financial statements of Human Capability Foundation (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Report of the independent auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the trustees has been prepared in accordance with applicable legal requirements.
Page 6
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HUMAN CAPABILITY FOUNDATION**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of trustees' responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the independent auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and error, we considered the following:
- the nature of the industry, control environment and business performance;
- results of our enquiries to management about their own assessment of the risks of fraud and error;
- the matters discussed among the audit engagement team regarding how and where fraud may occur in the financial statements and any potential indicators of fraud.
Our procedures to respond to risk include the following:
- reviewing the financial statement disclosures and testing to supporting documentation;
- performing analytical procedures to identify any unusual or unexpected areas that may indicate risks of material misstatement due to fraud or error;
- addressing the risk of fraud and error through management override of controls, testing the appropriateness of journals, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 7
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HUMAN CAPABILITY FOUNDATION**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Allan BSocSc FCA (Senior Statutory Auditor) for and on behalf of Berringers LLP Chartered Accountants and Statutory Auditors Lygon House 50 London Road Bromley Kent BR1 3RA
Date: 22 September 2021
Page 8
## **HUMAN CAPABILITY FOUNDATION**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 December 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
Other trading activities
4
Investment income
5
Share of profit/(loss) in associate (net of tax)
15
**Total**
**EXPENDITURE ON**
**Charitable activities**
Grants
6
Other
**Total**
**NET INCOME**
**OTHER RECOGNISED GAINS/(LOSSES)**
Other income arising on consolidation
15
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
22
**TOTAL FUNDS CARRIED FORWARD**|**2020**
2019
**Unrestricted**
Total
**fund**
funds
**£**
£
**599,770**
20,983,668
**11,422**
9,291
**1,399,203**
1,317,800
**2,212**
(17,553)
**2,012,607**
22,293,206
**1,104,567**
777,151
**136,213**
120,313
**1,240,780**
897,464
**771,827**
21,395,742
**2,471,764**
-
**3,243,591**
21,395,742
**29,502,474**
8,106,732
**32,746,065**
29,502,474|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure has arisen from continuing activities of the group. The notes to the accounts are shown on pages 13 to 25.
The notes form part of these financial statements
Page 9
## **HUMAN CAPABILITY FOUNDATION**
## **CONSOLIDATED AND CHARITY BALANCE SHEET 31 December 2020**
|Notes
**FIXED ASSETS**
Tangible assets
13
**Investments**
Investments
14
Investment property
16
**CURRENT ASSETS**
Debtors
17
Stocks
18
Investments
19
Cash at bank
**CREDITORS**
Amounts falling due within one year
20
**NET CURRENT ASSETS**
Provision for liabilities
21
**NET ASSETS**
**FUNDS**
22
Unrestricted funds
**TOTAL FUNDS**
**TOTAL ASSETS LESS CURRENT**|**2020**
2019
**Unrestricted**
Unrestricted
**fund**
fund
**£**
£
**2,427,517**
441,105
**230,000**
272,428
**22,680,000**
22,680,000
**25,337,517**
23,393,533
**3,867,330**
295,778
**2,639,281**
-
**4,845,346**
3,300,000
**2,129,179**
2,579,816
**13,481,136**
6,175,594
**(5,996,270)**
(66,653)
**7,484,866**
6,108,941
**32,822,383**
29,502,474
**(76,318)**
-
**32,746,065**
29,502,474
**32,746,065**
29,502,474
**32,746,065**
29,502,474
**Group**|**2020**
2019
**Unrestricted**
Unrestricted
**fund**
fund
**£**
£
**400,149**
441,105
**4,270,581**
240,581
**22,680,000**
22,680,000
**27,350,730**
23,361,686
**117,184**
295,778
**-**
-
**4,845,346**
3,300,000
**1,810,505**
2,579,816
**6,773,035**
6,175,594
**(83,523)**
(66,653)
**6,689,512**
6,108,941
**34,040,242**
29,470,627
**-**
-
**34,040,242**
29,470,627
**34,040,242**
29,470,627
**34,040,242**
29,470,627
**Charity**|
|---|---|---|
The consolidated financial statements were approved by the Board of Trustees and authorised for issue on 22 September 2021 and were signed on its behalf by:
N Pagarani - Trustee
The notes form part of these financial statements
Page 10
## **HUMAN CAPABILITY FOUNDATION**
## **CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2020**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of fixed asset investments
Purchase of current asset investments
Rents from investments
Cash acquired from donation of subsidiary
Interest received
Net cash used in investing 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**
2019
**£**
£
**(350,550)**
245,997
**(350,550)**
245,997
**(230,000)**
**-**
**(1,545,346)**
(3,300,000)
**1,248,792**
1,205,435
**318,674**
**-**
**107,793**
72,143
**(100,087)**
(2,022,422)
**(450,637)**
(1,776,425)
**2,579,816**
4,356,241
**2,129,179**
2,579,816|
|---|---|
The notes form part of these financial statements
Page 11
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2020**
|**1.**
**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM**
**Adjustments for:**
Depreciation charges
Interest received
Rent from investments
Donated asset
Share of (profit)/loss in associated companies
Decrease/(increase) in debtors
Increase in creditors
**Net cash (used in)/provided by operations**
**Net income for the reporting period (as per the Statement of**
**financial activities)**|**OPERATING ACTIVITIES**
**2020**
2020
**£**
£
**771,827**
21,395,742
**40,956**
40,956
**(107,793)**
(72,143)
**(1,248,792)**
(1,205,435)
**-**
(19,540,000)
**(2,212)**
17,553
**178,594**
(433,749)
**16,870**
43,073
**(350,550)**
245,997|
|---|---|
## **2. ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**
Cash at bank
**Liquid resources**
Current assets investments|At 1.1.20
£
**2,579,816**
**2,579,816**
**3,300,000**
**5,879,816**|Cash flow
**At 31.12.20**
£
**£**
**(450,637)**
**2,129,179**
**(450,637)**
**2,129,179**
**1,545,346**
**4,845,346**
**1,094,709**
**6,974,525**|
|---|---|---|
The notes form part of these financial statements
Page 12
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2020**
## **1. STATUTORY INFORMATION**
The Charity is a private limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Natco Cash & Carry, Silverdale Industrial Estate, Silverdale Road, Hayes, London UB3 3BL.
## **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, with the exception of investments which are included at market value.
## **Preparation of the accounts on a going concern basis**
After reviewing the company's forecasts and projections, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
## **Consolidated financial statements**
The financial statements consolidate the results of the charity and its wholly owned subsidiary Trigon Snacks Trading Ltd on a line-by-line basis. Subsidiaries are fully consolidated from the date on which control is transferred to the group. Prior to this, Trigon Snacks Trading Ltd was accounted for as an associate. Associates are all entities over which the group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting.
A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by Companies Act 2006, s. 408.
## **Significant judgements and estimates**
Preparation of the financial statements requires management to make significant judgements and estimates.
The trustees and directors have made assumptions regarding the recoverability of trade debtors and have provided accordingly in the subsidiary financial statements.
Stock valuation is reviewed at the end of the year, and key assumptions are made in relation to net realisable values and obsolete or slow-moving stocks. Where necessary the directors include a provision against the stock value for Trigon Snacks Trading Ltd.
The trustees consider the useful economic life of fixed assets and estimate depreciation accordingly. Depreciation rates are noted in the accounting policies and the depreciation totals for the year are included in note 13.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, 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:
- Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- Rental income from investment property and leased out assets are recognised when receipt is probable and entitlement is established. Solar electricity income relates to electricity generated by solar panels owed by HCF and sold to related parties per note 23. All income for the year excludes VAT.
- Other trading activities relate to the realised sale of food products and consumer goods donated by related parties at nil cost as per note 23. No VAT is charged on these products and minimal levels of stock are held at the year end.
Page 13
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **2. ACCOUNTING POLICIES - continued**
## **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 includes any VAT which can not be fully recovered and is accounted for on an accruals basis. Expenditure 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.
## **Grants**
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **Other Expenditure**
Solar panel fixed assets used to generate electricity income is depreciated over the 15 year anticipated life on a straight line basis.
Leased out fixed assets used to generate rental income is depreciated over the 10 year anticipated life on a straight line basis.
Within the subsidiary company depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. Plant and machinery - 15 - 25% on net book value Fixtures and fittings - 15 - 25% on net book value Office equipment - 25% of the net book value
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.
## **Impairment of assets**
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
The trustees and directors have reviewed the carrying value of the tangible fixed assets and no impairment is deemed necessary.
## **Bank Charges**
Foreign exchange specialists are used to minimise the cost of transfers to India. Transfer costs are not disclosed to the charity; however better rates, which include the transfer costs, are offered to alternative transfer options.
## **Allocation and apportionment of costs**
All income and expenditure is unrestricted. Support costs have been wholly allocated to the main charitable activity and relate to legal and professional, consultancy, accounting and audit fees.
## **Investment property**
Investment properties include donated properties at fair value and are shown are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in valuation is recognised in the Statement of financial activities.
Page 14
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **2. ACCOUNTING POLICIES - continued**
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
In the subsidiary company current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.
Deferred tax is recognised when income or expenses from a subsidiary or associate have been recognised, and will be assessed for tax in a future period, except where:
- the group is able to control the reversal of the timing difference; and
- it is probable that the timing difference will not reverse in the foreseeable future.
A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised. Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if:
- the company has a legally enforceable right to set off current tax assets against current tax liabilities, and - the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
## **Current asset investments**
Current asset investments are investments that are easy to access when required and have a maturity of within 12 months of the year end.
In 2019 and 2020, HCF invested in a renewable energy bond, that is in line with the charities ethics and objective of supporting worthy causes.
In 2020, HCF invested in Downing Renewables & Infrastructure Trust PLC (DORE) which is in line with the charities ethics as it is designed to deliver stable and sustainable returns by investing in a diversified portfolio of hydro, solar, wind and other infrastructure assets.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value. Cost is calculated as follows:-
Raw materials - Cost of purchase on first in, first out basis. Work in progress and finished goods - Cost of raw materials and labour together with attributable overheads.
Net realisable value is based on estimated selling price less further costs to completion and disposal.
Page 15
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **2. ACCOUNTING POLICIES - continued**
## **Debtors**
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
## **Creditors**
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The company provides for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.
## **Derivative financial instruments**
Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative.
## **3. DONATIONS AND LEGACIES**
|Gifts
Donations
**4.**
**OTHER TRADING ACTIVITIES**
Sales of donated products
**5.**
**INVESTMENT INCOME**
Rents received
Solar electricity income
Deposit account interest
Bond interest|**2020**
2019
**£**
£
**-**
19,540,000
**599,770**
1,443,668
**599,770**
20,983,668
**2020**
2019
**£**
£
**11,422**
9,291
**2020**
2019
**£**
£
**1,248,792**
1,205,435
**42,618**
40,222
**9,252**
24,414
**98,541**
47,729
**1,399,203**
1,317,800|
|---|---|
Page 16
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **6. CHARITABLE ACTIVITIES COSTS**
|Grants
**7.**
**GRANTS PAYABLE**
The total grants paid to institutions during the year was as follows:
**2020**
**£**
**1,104,567**
**8.**
**SUPPORT COSTS**
Finance
Other
£
£
Other resources expended
**27,335**
**67,922**
The breakdown of support costs is shown in the table below:
**Cost type**
**2020**
**£**
**Finance**
Foreign exchange losses
**27,335**
**Other**
Web site costs
**-**
Audit and accountancy
**8,350**
Legal and professional fees
**31,725**
Bank charges
**2,107**
Consultancy fees
**25,740**
**67,922**
**9.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
**2020**
**£**
**40,956**
Depreciation - owned assets
**10.**
**AUDITORS’ REMUNERATION**
**2020**
**£**
**3,500**
Fees payable to the Charity's auditors for the audit of the
financial statements|Grant funding
of activities
(see note 7)
£
**1,104,567**
2019
£
777,151
Totals
£
**95,257**
2019
£
1,700
116
2,200
10,591
1,075
63,675
77,657
2019
£
40,956
2019
£
2,200|
|---|---|
Page 17
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **11. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
Other trading activities
Investment income
Share of profit/(loss) in associate (net of tax)
**Total**
**EXPENDITURE ON**
**Charitable activities**
Grants
Other
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
20,983,668
9,291
1,317,800
(17,553)
22,293,206
777,151
120,313
897,464
21,395,742
8,106,732
29,502,474|
|---|---|
Page 18
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **13. TANGIBLE FIXED ASSETS**
|**GROUP**
**COST**
At 1 January 2020
Assets acquired on consolidation
At 31 December 2020
**DEPRECIATION**
At 1 January 2020
Charge for year
Depreciation from subsidiary undertaking
At 31 December 2020
**NET BOOK VALUE**
At 31 December 2020
At 31 December 2019
**CHARITY**
**COST**
At 1 January 2020 and 31 December 2020
**DEPRECIATION**
At 1 January 2020
Charge for year
At 31 December 2020
**NET BOOK VALUE**
At 31 December 2020
At 31 December 2019|**Plant and**
**Fixtures**
**Motor**
**Machinery**
**and Fittings Vehicles**
£
£
£
**530,395**
**-**
**-**
**3,179,827**
**341,080**
**16,495**
**3,710,222**
**341,080**
**16,495**
**89,290**
**-**
**-**
**40,956**
**-**
**-**
**1,387,787**
**139,370**
**9,971**
**1,518,033**
**139,370**
**9,971**
**2,192,189**
**201,710**
**6,524**
**441,105**
**-**
**-**|**Plant and**
**Fixtures**
**Motor**
**Machinery**
**and Fittings Vehicles**
£
£
£
**530,395**
**-**
**-**
**3,179,827**
**341,080**
**16,495**
**3,710,222**
**341,080**
**16,495**
**89,290**
**-**
**-**
**40,956**
**-**
**-**
**1,387,787**
**139,370**
**9,971**
**1,518,033**
**139,370**
**9,971**
**2,192,189**
**201,710**
**6,524**
**441,105**
**-**
**-**|**Plant and**
**Fixtures**
**Motor**
**Machinery**
**and Fittings Vehicles**
£
£
£
**530,395**
**-**
**-**
**3,179,827**
**341,080**
**16,495**
**3,710,222**
**341,080**
**16,495**
**89,290**
**-**
**-**
**40,956**
**-**
**-**
**1,387,787**
**139,370**
**9,971**
**1,518,033**
**139,370**
**9,971**
**2,192,189**
**201,710**
**6,524**
**441,105**
**-**
**-**|**Office**
**Equipment**
£
**-**
**102,510**|**Totals**
£
**530,395**
**3,639,912**|
|---|---|---|---|---|---|
||**3,710,222**|**341,080**|**16,495**|**102,510**|**4,170,307**|
||**89,290**
**40,956**
**1,387,787**|**-**
**-**
**139,370**|**-**
**-**
**9,971**|**-**
**-**
**75,416**|**89,290**
**40,956**
**1,612,544**|
||**1,518,033**|**139,370**|**9,971**|**75,416**|**1,742,790**|
||**2,192,189**|**201,710**|**6,524**|**27,094**|**2,427,517**|
||**441,105**|**-**|**-**|**-**|**441,105**|
||||||**Plant and**
**Machinery**
£
**530,395**|
||||||**89,290**
**40,956**|
||||||**130,246**|
||||||**400,149**|
||||||**441,105**|
Page 19
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **14. FIXED ASSET INVESTMENTS**
|**GROUP**
**MARKET VALUE**
At 1 January 2020
Additions
Reclassification
At 31 December 2020
**NET BOOK VALUE**
At 31 December 2020
At 31 December 2019
**CHARITY**
**MARKET VALUE**
At 1 January 2020
Additions
At 31 December 2020
**NET BOOK VALUE**
At 31 December 2020
At 31 December 2019|Listed
investments
£
**-**
**230,000**
**230,000**
**230,000**
-
Listed
investments
£
**-**
**230,000**
**230,000**
**230,000**
-|Unlisted
investments
Totals
£
£
**272,428**
**272,428**
**-**
**230,000**
**(272,428)**
**(272,428)**
**-**
**230,000**
**-**
**230,000**
272,428
272,428
Unlisted
investments
Totals
£
£
**240,581**
**240,581**
**3,800,000**
**4,030,000**
**4,040,581**
**4,270,581**
**4,040,581**
**4,270,581**
240,581
240,581|
|---|---|---|
There were no investment assets outside the UK.
The charity's investments at the balance sheet date in the share capital of companies include the following:
**Trigon Snacks Trading Limited** Registered Number: 08711597 Registered office: Inside the United Kingdom Nature of business: Retail
|Nature of business: Retail||
|---|---|
||%|
|Class of share:|holding|
|Ordinary|**100**|
The investment held at the year-end is a 100% holding in Trigon Snacks Trading Limited; 10% of the shares were transferred as a gift at the calculated market value as at the 30th November 2018, with the remaining shares transferred at the calculated market value as at 31st December 2020. (see note 15)
Since the donation of the remaining 90% of the subsidiary company occurred on 31[st] December 2020, none of the trading activity by Trigon Snacks Trading Ltd is applicable to the group and as such, no trading results are consolidated into the figures shown in the Statement of Financial Activities on page 9. All trading activity for the year ended 31[st] December 2020 is therefore included in the net assets acquired by the charity on 31[st] December and is shown in note 15, as other income arising on acquisition and consolidation.
Page 20
continued…
## **HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
At the 31[st] December 2020, the results for Trigon Snacks Trading Ltd were as follows:
|Turnover
Cost of sales
Distribution and Administration costs
Operating profit/(loss)
Interest payable and similar expenses
Tax on profit/(loss)
Total comprehensive income for the year
Aggregate capital and reserves|**2020**
2019
£
£
**20,805,342**
20,127,339
**19,305,307**
18,956,356
**1,343,822**
1,311,811
**156,213**
(140,828)
**57,770**
57,770
**76,318**
76,318
**22,125**
(274,916)
**2,746,404**
2,724,279|
|---|---|
## **15. ACQUSITIONS**
## **Acquisition of associate**
In 2018 10% of the shares in Trigon Snacks Trading Ltd was donated to the Human Capability Foundation. Due to the mutual trustee/director, the charity is deemed to have significant influence by the trustees and therefore this has been accounted for as an investment in an associated company. The share of Trigon Snacks Trading Ltd’s results that have been included in the consolidated accounts are as follows:
|Profit/(loss) before taxation
Tax on profit/(loss)
Total comprehensive income for the year
10% share recognised on consolidation|**2020**
2019
£
£
**98,443**
(201,278)
**76,318**
(25,747)
**22,125**
(175,531)
**2,212**
(17,553)|
|---|---|
## **Acquisition of subsidiary**
The acquisition of Trigon Snacks Trading Ltd occurred on 31st December 2020, when T.Choithram & Sons (London) Ltd donated the remaining 90% of the shares to the Human Capability Foundation.
As the acquisition was a donation of share capital, there was no consideration paid, and no goodwill arising on consolidation. The gain made by the charity on acquisition is shown below:
|Consideration paid:
Fair value of net assets on acquisition:
10% previously recognised as associate
Gain on consolidation|-
**2,746,404**
**(274,640)**|
|---|---|
||**2,471,764**|
Page 21
continued…
**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **16. INVESTMENT PROPERTY**
## **£**
## **FAIR VALUE**
|At 1 January 2020
and 31 December 2020
**NET BOOK VALUE**
At 31 December 2020
At 31 December 2019|**22,680,000**
**22,680,000**
22,680,000|
|---|---|
The valuations for all properties have not, in the Trustee’s opinion, changed in value materially since the last valuations were carried out.
## **17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade debtors
Prepayments
Other debtors
**STOCKS**
Raw materials
Finished goods|**2020**
2019
**£**
£
**3,665,498**
**-**
**115,653**
72,144
**86,179**
223,634
**3,867,330**
295,778
**Group**
**2020**
2019
**£**
£
**1,925,939**
**-**
**713,342**
**-**
**2,639,281**
**-**
**Group**|**2020**
2019
**£**
£
-
**-**
**31,005**
72,144
**86,179**
223,634
**117,184**
295,778
**Charity**
**2020**
2019
**£**
£
-
**-**
-
**-**
**-**
**-**
**Charity**|
|---|---|---|
## **18. STOCKS**
## **19. CURRENT ASSET INVESTMENTS**
|Unlisted Investments|**2020**
2019
**£**
£
**4,845,346**
3,300,000
**4,845,346**
3,300,000
**Group**|**2020**
2019
**£**
£
**4,845,346**
3,300,000
**4,845,346**
3,300,000
**Charity**|
|---|---|---|
In 2020, HCF had investments of £4,845,346 (2019: £3,300,000) in a regular access renewable energy investment bond, after reinvesting the matured bonds from 2019.
Page 22
continued…
## **HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Social security and other taxes
VAT
Other creditors
Accrued expenses
**21.**
**PROVISIONS FOR LIABILITIES**
Deferred taxation
Accelerated capital allowances
Tax losses carried forward
Balance at 31 December 2020|**2020**
2019
**£**
£
**470,759**
-
**64,112**
-
**1,030,443**
46,653
**4,301,907**
16,500
**129,049**
3,500
**5,996,270**
66,653
**Group**
**2020**
2019
**£**
£
**76,318**
-
**76,318**
-
**Group**|**2020**
2019
**£**
£
**-**
-
**-**
**60,573**
46,653
**16,500**
16,500
**6,450**
3,500
**83,523**
66,653
**Charity**
**2020**
2019
**£**
£
**-**
-
**-**
-
**Charity**
**Deferred**
**tax**
**£**
**262,349**
**(186,031)**
**76,318**|
|---|---|---|
## **22. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.1.20
£
**29,502,474**
**29,502,474**|Net movement
in funds
At 31.12.20
£
£
**3,243,591**
**32,746,065**
**3,243,591**
**32,746,065**|
|---|---|---|
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
**2,012,607**
**2,012,607**|Resources
expended
£
**(1,240,780)**
**(1,240,780)**|Other
recognised
Movement
gains/(losses)
in funds
£
£
**2,471,764**
**3,243,591**
**2,471,764**
**3,243,591**|
|---|---|---|---|
Page 23
continued…
## **HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **Comparatives for movement in funds**
||**Comparatives for movement in funds**|||||
|---|---|---|---|---|---|
|||||Net||
|||||movement|At|
||||At 1.1.19|
in funds|31.12.19|
||||£|£|£|
||**Unrestricted funds**|||||
||General fund||8,106,732|21,395,742|29,502,474|
||**TOTAL FUNDS**||8,106,732|21,395,742|29,502,474|
||Comparative net movement in funds, included in the above are||as follows:|||
||||Incoming|
Resources|Movement|
||||resources|
expended|in funds|
||||£|£|£|
||**Unrestricted funds**|||||
||General fund||22,293,206|(897,464)|21,395,742|
||**TOTAL FUNDS**||22,293,206|(897,464)|21,395,742|
|**23.**|**RELATED PARTY DISCLOSURES**|||||
|||**Group**||**Charity**||
|||**2020**|2019|**2020**|2019|
|||**£**|£|**£**|£|
||The following amounts are included in the consolidated statement of financial activities:|||||
||**Entities with trustees/directors in common**|||||
||Income investment properties
|**1,043,750**
|1,030,159
|**1,043,750**
|1,030,159|
||Solar electricity
|**42,618**
|40,222
|**42,618**
|40,222|
||Sales of donated products
|**8,700**
|8,946
|**8,700**
|8,946|
||Donations
|**200,000**|-|**200,000**|-|
||Gifts of shares|**-**|-
|**3,800,000**|-|
|||**(1,295,068)**
|1,079,327|**(5,095,068)**
|1,079,327|
||**Entities with key management in common**|||||
||Donations
|**399,770**
|1,443,667|**399,770**
|1,443,667|
||Gifts of property|**-**
|19,540,000|**-**
|19,540,000|
|||**(399,770)**
|20,983,667|**(399,770)**
|20,983,667|
||The following amounts are included in the consolidated and charity balance sheet:|||||
||**Entities with trustees/directors in common**|||||
||Loans owed to related parties
|**4,285,407**|-|**-**|-|
||Trade balance owed by related parties
|**69,071**||||
|||**4,285,407**
|-|**-**
|-|
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**HUMAN CAPABILITY FOUNDATION**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the year ended 31 December 2020**
## **25. GRANTS**
Total grants in 2020 approved by the Foundation were £1,104,567 (2019: £777,151).
These were made up as follows:
|**Institution**|**Amount**|
|---|---|
||**£**|
|Global Greengrants|**75,000**|
|Anjali|**51,984**|
|Tarshi|**48,322**|
|Action India|**46,345**|
|Disha Trust|**45,726**|
|Aajeevika Bureau|**39,429**|
|SAMA|**38,448**|
|Aman Public Charitable Trust|**36,207**|
|Nirantar|**32,296**|
|Kotra Adivasi Sansthan|**29,499**|
|Charkha|**29,367**|
|Gramin Avam Samajik Vikas|**29,183**|
|Nirantar|**28,383**|
|Vishakha|**27,980**|
|BUDS|**27,547**|
|SAKAR|**27,512**|
|Jeevika Development Society|**26,946**|
|Prayas|**25,706**|
|Sappho for Equality|**25,040**|
|Thoughtshop Foundation|**24,523**|
|Kislay|**24,356**|
|Shishu Sarothi Centre for Rehabilitation and Training for Multiple Disability|**22,837**|
|Centre for Workers’ Management|**21,242**|
|SANGRAM|**20,000**|
|Yakshi|**18,932**|
|iPartner India|**18,272**|
|Society for Informal Education and Development Studies|**15,127**|
|Others|**248,357**|
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