**Registered number: 07473153 Charity number: 1160782** ## **GNANAM FOUNDATION** **(A company limited by guarantee)** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2020** **GNANAM FOUNDATION (A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the charity, its trustees and advisers**|1| |**Trustees' report**|2 - 5| |**Independent auditors' report**|6 - 8| |**Statement of financial activities**|9| |**Balance sheet**|10| |**Statement of cash flows**|11| |**Notes to the financial statements**|12- 20| **GNANAM FOUNDATION (A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Trustees** Sivasamy Premananthan, Trustee Farokh Engineer, Trustee Mohammed Malique, Trustee Allirajah Subaskaran, Trustee ChristopherTooley, Trustee Dr. Ravikumar Muthukaluvan, Trustee ## **Company registered number** 07473153 ## **Charity registered number** 1160782 ## **Registered office** Walbrook Bld, 195 Marsh Wall, London, E14 9SG ## **Company secretary** Sivasamy Aaidurai Premananthan ## **Independent auditors** Focus Somar Audit & Tax Accountants Ltd, Statutory Auditors Third floor, Unit 301, Middlesex House, 130 College Road, Harrow, Middlesex, HA1 1BQ Page 1 **GNANAM FOUNDATION** **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees present their annual report together with the audited financial statements of the Trust for the period from 1 January 2020 to 31 December 2020. The Trustees confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2015) as amended by Update Bulletin 1 (effective 1 January 2015) Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. ## **Objectives and Activities** ## **A. POLICIES AND OBJECTIVES** The trustees will meet regularly to decide upon, and review, its activities in line with the Foundation’s objects and with reference to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The trustees also intend to develop and implement a grant making policy. The Foundation will not carry out projects in its own right but rather, will make grants to charities that have identified individuals who require assistance. An applicant charity must provide the Foundation with evidence that its intended beneficiaries are people in poverty without the means to otherwise improve their standard of living. The Foundation will have a strict procedure in place in relation to funding UK charities operating overseas. Fundraising will begin with appeals detailing the history behind the project and how it would benefit the people and how much it would cost. The Foundation will monitor expenditure to ensure that its funds are spent correctly, to assess the impact of the work carried out and ensure that funds are used in furtherance of the charity’s charitable purposes. Through its due diligence and monitoring procedures, the trustees will ensure that its funding is used for its charitable purposes and in compliance with all UK laws. ## **B. PUBLIC BENEFIT** Gnanam Foundation aims were carried out for the public benefit. This was achieved through giving financial support to 2 charities working to improve the lives of vulnerable and marginalized groups. ## **Achievements and performance** The charity performed charitable activities amounting to £347,223 (2019- £413,664) during the year. The Foundation also works on an ad hoc basis with a number of charities and organizations that promote the Foundation's objectives. ## **Financial review** During the year the charity received unrestricted funds amounting to £472,000 (2019- £475,580) and donation paid were £359,257 (2019- 478,216), making a surplus amounting to £112,743 (2019- deficit 2,636) after deducting support and governance cost. The activities of charity have increased with compared to last year. **a. Going Concern** After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. Page 2 **GNANAM FOUNDATION (A company limited by guarantee)** **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **b. RESERVES POLICY** The charity simply donates to other charities, individuals and institutions for the accomplishment of its charity objectives. Its accumulated surplus at 31 December 2020 was £ 113,787 (2019: accumulated surplus £1,054) Structure, governance and management ## **i. CONSTITUTION** The charity is registered as a charitable company limited by guarantee and was set up by a Trust deed. The company is constituted under a Trust deed and its registered charity number 1160782. The principal object of the company is for the public benefit to further any purpose which is exclusively charitable under the law of England and Wales (provided that the charity may not further any purposes which are not charitable in accordance with the laws of Scotland and Northern Ireland). ## **ii. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES** The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. Each of the trustees was first appointed as a director at Companies House and each trustee also had to sign a trustee declaration form which was submitted to the Charity Commission. ## **iii. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES** The Charity actively endorses training at all levels of the charity. New trustees participate in an induction process that new staff would follow, to include spending time engaged with all the charity’s projects, relevant information regarding health and safety and personal safety and role-related knowledge where applicable. ## **iv. ORGANISATIONAL STRUCTURE AND DECISION MAKING** Trustees are specifically designated to oversee UK projects and overseas projects. The Trustees who served during the year were as follows: - Sivasamy Aiadurai Premananthan Farokh Engineer Mohammed Abdul Mabidul Malique Allirajah Subaskaran Christopher Donald Michael Tooley Dr. Ravikumar Muthukaluvan ## **v. RISK MANAGEMENT** The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. Page 3 **GNANAM FOUNDATION (A company limited by guarantee)** **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **vi. PRINCIPAL ACTIVITIES** The charity has two principal areas of activity within United Kingdom and outside United Kingdom. The charity has a general charitable object and its initial focus will the provision of grant funding to charities working in United Kingdom, Sri Lanka, India, Nigeria, Tanzania, Philippines, Romania and Sudan to alleviate poverty. ## **Plans for future periods** ## **FUTURE DEVELOPMENTS** The charity intends to continue the activities outlined above with respect to satisfactory funding arrangements. ## **RELATED PARTY TRANSACTIONS & CONTROL** The charity received general donations from the Lycamobile UK Limited amounting to £442,000 (2019 - £437,530) where Mr Sivasamy Aiadurai Premananthan & Mr Allirajah Subaskaran are directors, who are also the trustees/ directors of Gnanam Foundation, considered as related party. The Lycatel Services Limited has charged management fee of £30,000 (2019 - 30,000) for year ended on 31 December 2020, where Mr Sivasamy Aiadurai Premananthan is director, who is also the trustee/ director of Gnanam Foundation, considered as related party. During the period, Gnanam Foundation provided general grants to Gnanam Foundation (Registered Charity in Sri Lanka) amounting to £325,643.63 (2019- £255,194), considered as related party by virtue of the spirit of the foundation. A further detail is given in note 13. The charity is under the control of 6 trustees/ directors. ## **TRUSTEES' RESPONSIBILITIES STATEMENT** The Trustees (who are also directors of Gnanam Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. Page 4 **GNANAM FOUNDATION (A company limited by guarantee)** ## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **DISCLOSURE OF INFORMATION TO AUDITORS** Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. ## **AUDITORS** The auditors, Focus Somar Audit & Tax Accountants Ltd, have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees. This report was approved by the Trustees, on ………………………………………. and signed on their behalf by: 29/10/2021 ## **Sivasamy Premananthan, Trustee** Page 5 **GNANAM FOUNDATION (A company limited by guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GNANAM FOUNDATION** ## **OPINION** We have audited the financial statements of Gnanam Foundation (the 'charitable company') for the year ended 31 December 2020 set out on pages 9 to 20. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 Charities Act 2011. ## **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 United Kingdom, including the Financial Reporting Council'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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorized for issue. ## **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 Auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are Page 6 **GNANAM FOUNDATION (A company limited by guarantee)** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GNANAM FOUNDATION** required to report that fact. We have nothing to report in this regard. ## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **RESPONSIBILITIES OF TRUSTEES** As explained more fully in the Trustees' responsibilities statement, 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. ## **AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect there under. 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 an Auditors' report 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. 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 Auditors' report. ## **USE OF OUR REPORT** This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Page 7 ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GNANAM FOUNDATION** ## **Krishna Prasad Dahal Senior Statutory Auditor** ## **Focus Somar Audit & Tax Accountants Ltd** Statutory Auditors Third floor, Unit 301 Middlesex House 130 College Road Harrow Middlesex HA1 1BQ Date: 2 November 2021 Focus Somar Audit & Tax Accountants Ltd are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 8 **GNANAM FOUNDATION** **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020** |**Unrestricted**
**funds**
**2020**
**Note**
**£**
**INCOME FROM:**
Donations and legacies
2
**472,000**
**TOTAL INCOME**
**472,000**
**EXPENDITURE ON:**
Charitable activities
3 & 4
**359,257**
**TOTAL EXPENDITURE**
5
**359,257**
**NET BEFORE OTHER RECOGNISED GAINS AND**
**LOSSES**
**112,743**
**NET MOVEMENT IN FUNDS**
**112,743**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**1,054**
**TOTAL FUNDS CARRIED FORWARD**
**113,797**|**Total**
**funds**
**2020**
**£**
**472,000**
**472,000**
**359,257**
**359,257**
**112,743**
**112,743**
**1,054**
**113,797**|_Total_
_funds_
_2019_
_£_
475,580| |---|---|---| |||475,580| |||478,216| |||478,216| |||(2,636)
(2,636)
3,690| |||1,054| The notes on pages 12 to 20 form part of these financial statements. The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognized gains and losses has not been prepared. All of the above amounts relate to continuing activities. Page 9 GNANAM FOUNDATION IA company limited by guarantee) REGISTERED NUMBER.. 07473153 BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Note CURRENT ASSETS Debtors Cash at bank and in hand 109,388 10,319 119.707 5,854 5,854 CREDITORS.. amounts fallin9 due wthin one year {59101 (4.800) NET CURRENT ASSETS 113,797 7054 NET ASSETS 113,797 1,054 CHARITY FUNDS Unreslricle(I funds 10 113,797 1,054 TOTAL FUNDS 113,797 1.054 The company's finanaal slalemenls have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. The Trustee$ consi¢Jer Ihal the company is ent￿e(l to exemption from the requirement to have an audrt under the provisions of section 477 of the Companies Act 2006 1.the Act") and members have not required the company to obtain an audit for the year in question in accordance wth section 476 of the Act. However, an audit is required in accordance with section 144 01 the Charities Act 2011. The Trustee$ acknowledge their responsibilities for complying %Mth the requirements of the Act with respect to accounting records and the preparation of financial slatements. The financial statements were approved and auihorized for issue by the Trustees on .291.1Q12Q21.. ..and spJned M their behaw. by." Sivasamy Premananthan. Trustee The notes on pages 12 to 20 fom) part of these financial ststements. Page 10 **GNANAM FOUNDATION (A company limited by guarantee)** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020** |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
**Change in cash and cash equivalents in the year**
Cash and cash equivalents brought forward
**Cash and cash equivalents carried forward**|**2020**
**£**
**4,465**
**4,465**
**5,854**
**10,319**|_2019_
_£_
**(5038)**
**(5038)**
**10,892**
**5,854**| |---|---|---| The notes on pages 12 to 20 form part of these financial statements. Page 11 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Gnanam Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant accounting policy. ## **1.2 Reconciliation with previous Generally Accepted Accounting Practice** In preparing these accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. No restatements were required. ## **1.3 Company status** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. ## **1.4 Going concern** The charity's activities, together with the factors likely to affect its future developments will based on trustees’ assessment of donor companies fund raising plans and funding commitments from the donor companies. Trustees have reasonable expectation to continue the charity activities over the future years, at least for next 12 months from the date of approval of the financial statements. Hence financial statements are prepared using the going concern basis of accounting. The related donor company: Lycamobile UK Limited will continue to provide its funding requirement proactively and there have been no indication that funds will not continue to be available as required for future charity activities. Page 12 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **1.5 Income** All income is recognized once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalized and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Donated services or facilities are recognized when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognized and refers to the Trustees' report for more information about their contribution. On receipt, donated professional services and donated facilities are recognized on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognized in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognized at the time of the donation. Income tax recoverable in relation to investment income is recognized at the time the investment income is receivable. Page 13 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **1.6 Expenditure** Expenditure is recognized once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognized as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure. ## **1.7 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank. ## **1.8 Debtors** Trade and other debtors are recognized at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **1.9 Foreign Currencies** Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the statement of financial position date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All foreign exchange differences are included to the income statement. ## **1.10 Liabilities and provisions** Liabilities are recognized when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognized at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognized within interest payable and similar charges. Page 14 **GNANAM FOUNDATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **1.11 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. ## **1.12 Fund Accounting** None of the donations received are restricted. The funds can be used for charitable purpose in such manner as the Directors who are also the Trustees may determine in accordance with the charities objectives. ## **1.13 Cash Flow Statement** The trustee have taken advantage of the exemption in Update Bulletin 1from including a cash flow statement in the financial statement on the grounds that the company is small. ## **1.14 Reserves Policy** The reserves policy of the trust is to invest any liquid or current asset backed reserves in upgrading and building as funds after providing sufficient funds to meet the anticipated running costs of the organization. Cash flow forecasts are prepared regularly to enable trustees to make such investment decisions prudently. ## **2. INCOME FROM DONATIONS AND LEGACIES** |**Unrestricted**
**Funds**
**2020**
**£**
Donations
472,000
_Total 2019_
_475,580_|**Unrestricted**
**Funds**
**2020**
**£**
Donations
472,000
_Total 2019_
_475,580_|**Total**
**funds**
**1 Jan 2020**
**to 31 Dec**
**2020**
**£**
472,000
_475,580_|_Total_
_Funds_
_2019_
_£_
_475,580_| |---|---|---|---| ||||| ||_475,580_||| ## **3. SUPPORT COSTS** |Management fee
Bank Charges
Other Penalties and fines
_Total 2019_|**Activities**
**£**
**30,000**
**1,856**
**-**
**31,856**
_35,133_|**Total**
**2020**
**£**
**30,000**
**1,856**
**-**
**31,856**
_35,133_|_Total_
_2019_
_£_
_30,000_
573
4,560| |---|---|---|---| ||||_35,133_| ||||| Page 15 **GNANAM FOUNDATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **4. GOVERNANCE COSTS** |**Unrestricted**
**Total**
**Funds**
**funds**
**1 Jan 2020 to**
**2020**
**31 Dec 2020**
**£**
**£**
Governance accountancy fee
**2,400**
**2,400**
Governance Auditors' remuneration
**2,400**
**2,400**
Governance Legal fees
**5,375**
**5,375**
**10,175**
**10,175**|**Unrestricted**
**Total**
**Funds**
**funds**
**1 Jan 2020 to**
**2020**
**31 Dec 2020**
**£**
**£**
Governance accountancy fee
**2,400**
**2,400**
Governance Auditors' remuneration
**2,400**
**2,400**
Governance Legal fees
**5,375**
**5,375**
**10,175**
**10,175**|_Total_
_Funds_
_2019_
_£_
_2,400_
_2,400_
_24,619_
_29,419_| |---|---|---| ||**10,175**|| ## **5. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE** ||**Other costs**|**Total**|_Total_| |---|---|---|---| |||**1 Jan 2020 to**|| ||**2020**|**31 Dec 2020**|_2019_| ||**£**|**£**|_£_| |Direct costs - Activities (Grants)|**347,223**|**347,223**|_413,684_| |Expenditure on governance & support cost|**42,031**|**42,031**|_64,552_| ||**389,254 **|**389,254**|_478,236_| |_Total 2019_|_478,236_|_478,236_|| ## **6. NET INCOME/(EXPENDITURE)** This is stated after charging: |**2020**
**£**
Auditors' remuneration – audit
**2,400**
During the year, no Trustees received any remuneration (2020 - £NIL).
During the year, no Trustees received any benefits in kind (2020 - £NIL).
During the year, no Trustees received any reimbursement of expenses (2020 - £NIL).|_2019_
_£_

_2,400_| |---|---| ## **7. AUDITORS' REMUNERATION** The Auditor's remuneration amounts to an Audit fee of £2,400 (2019 - £2,400). Page 16 **GNANAM FOUNDATION** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **8. CREDITORS: Amounts falling due within one year** |**8.**
**CREDITORS: Amounts falling due within one year**||| |---|---|---| |Accruals
**9.**
**Debtors**
Prepayment and Accruals|**2020**
**£**
5,910.
**2020**
**£**
109,388.|_2019_
_£_
4,800.| |||_2019_
_£_
-.| ## **10. STATEMENT OF FUNDS** ## **STATEMENT OF FUNDS - CURRENT YEAR** |**Unrestricted funds**
General funds
Movement in General funds
**STATEMENT OF FUNDS - PRIOR YEAR**
General funds
**Total of funds**|**Balance at**
**1 January**
**2020**
**£**
**38,371**
**(37,317)**
**1,054**
_Balance at_
_1 January_
_2019_
_£_
_3,690_
**_3,690_**|**Income Expenditure**
**£**
**£**
**-**
**-**
**472,000**
**(359,255)**
**472,000**
**(359,255)**
_Income_
_Expenditure_
_£_
_£_
_475,580_
_(478,216)_
**_475,580_**
**_(478,216)_**|**Balance at**
**31**
**December**
**2020**
**£**
**1,054**
**112,743**
**113,797**
_Balance at_
_31_
_December_
_2019_
_£_
_1,054_
**_1,054_**| |---|---|---|---| Page 17 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **SUMMARY OF FUNDS - CURRENT YEAR** |**Balance at**
**1 January**
**2020**
**£**
General funds
**1,054**
**1,054**
**SUMMARY OF FUNDS - PRIOR YEAR**
_Balance at_
_1 January_
_2019_
_£_
General funds
**_3,690_**
**10. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
**ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR**|**Income**
**£**
**472,000**
**472,000**
_Income_
_£_
**_475,580_**
|**Expenditure**
**£**
**(359,255)**
**(359,255)**
_Expenditure_
_£_
**_(478,216)_**|**Balance at**
**31**

**December**
**2020**
**£**
**113,797**
**113,797**| |---|---|---|---| ||||_Balance at_
_31_
_December_
_2019_
_£_
**_1,054_**| ||||| |**Unrestricted**
**Funds**
**2020**
**£**
Current assets
119,707
Creditors due within one year
(5,910)
**113,787**|**Total**
**Funds**
**1 Jan 2020**
**to 31 Dec**
**2020**
**£**
119,707
(5,910)
**113,787**| |---|---| Page 18 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **11. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)** ## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR** |**_Unrestricted_**
**_funds_**
**_2019_**
**_£_**
Current assets
_5,854_
Creditors due within one year
_(5,910)_
**_1,054_**|**_Total_**
**_Funds_**
**_2019_**
**_£_**
_5,854_
_(5,910)_
**_1,054_**| |---|---| ## **12. ANALYSIS OF CASH AND CASH EQUIVALENTS** |Cash at bank|**2020**
2019
_£_
_£_
_10,892_
_5,854_| |---|---| ||**10,892** **_5,854_**| ## **13. RELATED PARTY TRANSACTIONS** ## **Lycamobile UK Limited** The charity received general donations from the Lycamobile UK Limited amounting to £442,000 (2019 - £437,530) where Mr Sivasamy Aiadurai Premananthan & Mr Allirajah Subaskaran are trustees, who are also the trustees/ directors of Gnanam Foundation, considered as related party. ## **LYCATEL SERVICES LTD** The charity received general donations from the Lycatel services Limited amounting to £30,000 (2019-30,000) where Mr Sivasamy Aiadurai Premananthan & Mr Allirajah Subaskaran are trustees, who are also the trustees/ directors of Gnanam Foundation, considered as related party. ## **GNANAM FOUNDATION LTD- Sirlanka** During the period, Gnanam Foundation provided general grants to Gnanam Foundation (Registered Charity in Srilanka) amounting to £325,643.63 (2019 - £255,194), considered as related party by virtue of the spirit of the foundation. ## **LYCATEL SERVICES LTD** The Lycatel Services Limited has charged management fee of £30,000 (2019 - 30,000) for year ended on 31 December 2020 and where Mr Sivasamy Aiadurai Premananthan is trustees, who is also the trustee/ director of Gnanam Foundation, considered as related party. Page 19 **GNANAM FOUNDATION (A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **14. CONTROLLING PARTY** The charity is under the control of 6 trustees/ directors. ## **15. COMMITMENTS** The Charity had no commitments at the balance sheet date. ## **16. CONTINGENCIES** There were no contingencies at the balance sheet date. ## **17. GUARANTEES** The Charity has given no guarantees or other indemnities. ## **18. GRANTS** |The following grants were made during the period.
Gnanam Foundation Srilanka
**Other Charity Donations:**
Donation - Om Saravanabhava Seva Trust
Other Donation|Amount Awarded (£)| |---|---| ||216,254
100,000
967| ## **Total** **317,221** Page 20