**REGISTERED COMPANY NUMBER: 09127658 (England and Wales) REGISTERED CHARITY NUMBER: 1161879**
## **REPORT OF THE TRUSTEES AND**
**CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **FOR**
**AVANTI FOUNDATION LIMITED (A COMPANY LIMITED BY GUARANTEE)**
Xeinadin Audit Limited 8th Floor Becket House 36 Old Jewry London EC2R 8DD
**AVANTI FOUNDATION LIMITED**
**CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 202** 2
||**Page**|
|---|---|
|**Group strategic report**|1 to 2|
|**Report of the Trustees**|3 to 5|
|**Report of the Independent Auditors**|6 to 9|
|**Consolidated Statement of Financial Activities**|10|
|**Consolidated Balance Sheet**|11|
|**Individual Charity Balance Sheet**|12|
|**Group Cash Flow Statement**|13|
|**Notes to the Group Cash Flow Statement**|14|
|**Notes to the Consolidated Financial Statements**|15 to 24|
**AVANTI FOUNDATION LIMITED**
GROUP **STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 202** 2
The trustees present their strategic report for the year ended 31 August 2022.
## **Achievements and performance**
The group has continued to provide educational, financial, and administrative support to its subsidiaries and investments which have objectives in line with its own.
Most of the charity groups existing projects have grown over the course of the year back to pre-pandemic levels. Following on from successful online wellbeing events, Avanti Foundation Limited ran in person events promoting wellbeing via mantra meditation.
In addition, trading subsidiary, The Vedanta Way Limited which runs a retreat centre has become operational, running several test retreats and successfully contracting educational retreats for school children.
Some of the projects have been re-evaluated post pandemic, the trustees responsible decided they were no longer viable and therefore withdraw interest from them, minimal financial loss was incurred, and the charities resources were focused on the more viable projects.
Avanti Education Limited, has had a mixed year. One site has done well, and demand has continuously increased over the year. The second setting was struggling to recruit suitable long-term staff, mainly due to its local transport links and the decision was made to cease operations. The trustees continue to explore alternative locations for the long-term growth plans.
Subsidiary company Omnom Group Ltd (Omnom), which had struggled due to the restrictions from the pandemic, found an experienced partner organisation to run the restaurant, which has proven to be a good decision. Omnom core staff were able to focus on running regular wellbeing workshops, events and free meals for those in need.
## **REVIEW OF BUSINESS**
## **Reserves policy**
The charities reserve policy continues to be that of ensuring that the total unrestricted funds held within the general and designated reserves are equal to three months of budgeted unrestricted expenditure, thus ensuring that the organisation would be allowed to wind up its affairs efficiently if faced with financial difficulties. At the year end, the free reserves for Avanti Foundation Limited exceeded three months operating costs. At the year end, the group had free reserves of £363k (2021: £306k) for operating costs.
## **Going concern**
We have adequate financial resources and have the structures in place to manage the business risks. The support from Local and National Government schemes, which was vital in the absence of other planned income streams during the Covid-19 pandemic. In addition, our annual budgeting and forecasting processes have taken into consideration the current economic climate and its potential impact on both our various sources of income and expenditure.
We have reasonable expectation that we have adequate resources and control mechanisms to continue in operational existence for the foreseeable future. Further, we believe that there are no material uncertainties that may cast doubt on the charities group ability to continue as a going concern.
## **Future plans**
The Charities group main aspiration is to continue to push and venture forward with development plans for each of the projects.
Page 1
**AVANTI FOUNDATION LIMITED** GROUP **STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 202** 2
## **PRINCIPAL RISKS AND UNCERTAINTIES**
The trustees have a duty to identify and review the risks to which the charity and the group is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees regularly monitor the charity’s functions to assess any risks that may arise and take steps to mitigate them.
The principal risks are associated with overspending, however, this risk can be mitigated with regular cash flow reporting and reducing expenditure where there is unmatched income.
Other risks faced are related to ineffective investments. These risks are managed by the trustees increasing their research, considering multiple scenarios beforehand and also having more direct involvement and reporting structures in place once investments are in place. The trustees have reviewed their risk position and are increasing procedures to ensure further safeguarding of the charities group assets.
Approved by order of the board of trustees on 26 May 2023 and signed on its behalf by:
.................................................................
V H Hirani - Trustee
Page 2
**AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 202** 2
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the charity and its subsidiaries for the year ended 31 August 2022.
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**
## **Objectives and aims**
The Charity group will carry out activities to fulfil the objectives as follows:
- (a) to advance education for the public benefit in the United Kingdom, and such other areas of the world as the trustees shall from time to time determine, in particular by; providing day care and learning-orientated activities for pre-school infants and children, including through the establishment of OFSTED registered pre-school centres/nurseries;
- (b) supporting and promoting training in the area of childcare and education; and making grants of financial assistance to (i) help establish (and to support existing) OFSTED registered pre-school centres/nurseries and/or (ii) support and promote training in the area of child care and education:
- (c) the prevention or relief of poverty in the UK, and such other areas of the world as the trustees shall from time to time determine though the provision of grants, financial support, items and services to individuals in need and/or charities, or other organisations working to prevent and/or relieve poverty; and
- (d) the promotion of nutrition and well-being, including through the provision of grants, financial support, items and services to individuals in need and/or charities, or other organisations working to promote nutrition and/or well-being.
The charity provides financial, advisory and management support to entities and projects that help it fulfil the above criteria.
## **Public Benefit**
The trustees confirm that they have referred to the guidance contained in the Charity Commissioner’s general guidance on Public Benefit when reviewing the groups aim and objectives and in planning future activities. The trustees consider that the groups main aims are demonstrably to the public benefit.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The company is a charitable company limited by guarantee and was incorporated on 11 July 2014. It has no share capital, but each member undertakes in the event of winding up to contribute £10 towards the cost and expenses of winding up. Avanti Foundation Limited’s governing document is the Memorandum and Articles of Association.
## **Decision making**
The charity has a Board of Trustees formed by votes which are based on experience and 'value add'. All Board members consequently work together to ensure the objectives of the are met, in order to better meet the respective purposes of the charity.
The Board of Trustees work together to make decisions in line with the charity's objectives. Both existing and potential trustees need to demonstrate understanding and ability to meet needs and demands of the organisation and are voted on to the Board accordingly. Day to day activities are undertaken by a
Page 3
**AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 202** 2
mixture of volunteers and employees who report to the trustees regularly. All major decisions are considered and undertaken by the trustees collaboratively. The trustees are unpaid, give their time freely and have no significant contracts in which they have a material interest.
## **Related parties**
The Charity is a sole member of the following subsidiaries:
Avanti Education Limited Omnom Group Limited The Vedanta Way Limited Krishna Avanti Private Limited (India)
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered Company number** 09127658 (England and Wales)
## **Registered Charity number**
1161879
## **Registered office**
21 Brinkburn Gardens Edgware HA8 5PL
## **Trustees**
S Agarwal V H Hirani D Patel
## **Company Secretary**
V H Hirani
## **Auditors**
Xeinadin Audit Limited 8th Floor Becket House 36 Old Jewry London EC2R 8DD
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Avanti Foundation Limited 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group 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 and the group will continue in business.
Page 4
**AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 202** 2
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity 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 the group 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, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 26 May 2023 and signed on its behalf by:
.................................................................
V H Hirani - Trustee
Page 5
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **Opinion**
We have audited the financial statements of Avanti Foundation Limited (the 'parent charity') and its subsidiaries for the year ended 31 August 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated 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 group's and of the parent charity’s affairs as at 31 August 2022 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 AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charity 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 by the parent charity 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 group’s and the parent 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.
Page 7
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries or the manipulation of accounting estimates.
Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management's controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, collusion, omission or misrepresentation.
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 8
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **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.
Mr Narendrakumar Mistry FCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Limited 8th Floor Becket House 36 Old Jewry London EC2R 8DD
Date: 26 May 2023
Page 9
## **AVANTI FOUNDATION LIMITED** (REGISTERED NUMBER: 09127658) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES **FOR THE YEAR ENDED 31 AUGUST 202** 2
|**Note**
Donations and legacies
Retreat income
**Charitable activities**
**5**
Fundraising events
Education
Restaurant
Investment income
**4**
Other income
**6**
**Total**
**EXPENDITURE ON**
**Charitable activities**
**7**
Fundraising events
Development and promoting
nutrition and well-being
Development of education
General
Restaurant
**Total**
Net gains/(losses) on investments
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**INCOME AND ENDOWMENTS FROM**
Income from:|Unrestricted
Funds
£
1,390,675
333,914
38,408
530,271
252,817
3
18,308
2,564,396
51,717
147,904
476,168
1,088,262
324,118
2,088,169
-
476,227
84,000
560,227|Restricted
Funds
£
-
-
-
-
-
-
-
-
-
67,142
-
-
-
67,142
-
(67,142)
3,945,900
3,878,758|2022
Total
Funds
£
1,390,675
333,914
38,408
530,271
252,817
3
18,308
2,564,396
51,717
215,046
476,168
1,088,262
324,118
2,155,311
-
409,085
4,029,900
4,438,985|2021
Total
Funds
£
4,149,449
-
5,944
469,999
116,445
11
149,457
4,891,305
54,942
25,093
508,034
257,207
89,072
934,348
(26,318)
3,930,639
99,261
4,029,900|
|---|---|---|---|---|
The notes form part of these financial statements
Page 10
## **AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)** CONSOLIDATED **BALANCE SHEET**
## **31 AUGUST 202** 2
|**Note**
**FIXED ASSETS**
Investments
**14**
Tangible assets
**13**
**CURRENT ASSETS**
Debtors
**15**
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
**16**
**NET CURRENT ASSETS/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
**17**
**TOTAL FUNDS**
Charity's income/(expenditure) for the financial year
**NET ASSETS/(LIABILITIES)**
Restricted funds
**FUNDS**
**20**
Unrestricted funds|**Unrestricted**
**Fund**
**2022**
**£**
-
840,884
840,884
162,417
642,688
805,105
(441,928)
363,177
1,204,061
(643,834)
560,227|**Restricted**
**Fund**
**2022**
**£**
3,878,758
3,878,758
-
-
-
-
-
3,878,758
-
3,878,758|**Total**
**Funds**
**2022**
**£**
-
4,719,642
4,719,642
162,417
642,688
805,105
(441,928)
363,177
5,082,819
(643,834)
4,438,985
409,085
4,438,985
3,878,758
560,227|**Total**
**Funds**
**2021**
**£**
-
4,512,064
4,512,064
137,078
523,325
660,403
(353,682)
306,721
4,818,785
(788,885)
4,029,900
3,930,639
4,029,900
3,945,900
84,000|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2023 and were signed on its behalf by:
............................................. V H Hirani - Trustee
The notes form part of these financial statements
Page 11
## **AVANTI FOUNDATION LIMITED (REGISTERED NUMBER: 09127658)**
## **INDIVIDUAL CHARITY BALANCE SHEET 31 AUGUST 2022**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investments
14
**CURRENT ASSETS**
Debtors
15
Cash at bank
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
17
**NET ASSETS**
**TOTAL FUNDS**
**FUNDS**
Unrestricted funds
Restricted funds|Unrestricted
fund
£
-
1,112
1,112
38,758
226,795
265,553
(33,099)
232,454
233,566
(28,333)
205,233|Restricted
funds
£
3,878,758
-
3,878,758
975,000
25,000
1,000,000
-
1,000,000
4,878,758
-
4,878,758|2022
Total
funds
£
3,878,758
1,112
3,879,870
1,013,758
251,795
1,265,553
(33,099)
1,232,454
5,112,324
(28,333)
5,083,991
5,083,991
205,233
4,878,758|2021
Total
funds
£
3,945,900
1,112
3,947,012
43,627
106,252
149,879
(49,630)
100,249
4,047,261
(38,333)
4,008,928
4,008,928
63,028
3,945,900|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2023 and were signed on its behalf by:
V H Hirani - Trustee
The notes form part of these financial statements
Page 1 2
## **AVANTI FOUNDATION LIMITED**
## **GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022**
|**Change in cash and cash equivalents**
**in the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale tangible fixed assets
Sale of fixed asset investments
Interest received
Net cash used in investing activities
**Cash flows from financing activities**
New loans in year
Loan received in year
Loan repayments in year
Net cash (used in)/provided by financing activities
Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
**Cash and cash equivalents at the end** **2**
**of the reporting period**|606,770
4,003,160
(328,949)
(3,957,090)
-
366
-
-
-
13,682
3
11
(328,946)
(3,943,031)
-
11,257
-
-
(158,461)
(4,167)
(158,461)
7,090
642,688
523,325
2022
2021
£
£
642,974
4,016,315
(36,204)
(13,155)
67,219
456,106
119,363
523,325|
|---|---|
The notes form part of these financial statements
Page 1 3
## **AVANTI FOUNDATION LIMITED**
## **NOTES TO THE GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**ACTIVITIES**|||
|---|---|---|
||2022|2021|
||£|£|
|**Net expenditure for the reporting period (as per the Statement**|||
|**of Financial Activities)**|409,085|3,930,639|
|**Adjustments for:**|||
|Depreciation charges|131,363|65,420|
|Loss on investments|-|26,318|
|Interest paid|36,204|13,155|
|Interest received|(3)|(11)|
|(Increase)/decrease in debtors|(25,339)|(27,811)|
|Increase in creditors|91,664|8,605|
|**Net cash provided by operations**|642,974|4,016,315|
## **2. ANALYSIS OF CHANGES IN NET DEBT**
||At 1.9.21|Cash flow|At 31.8.22|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|523,325|119,363|642,688|
||523,325|119,363|642,688|
|**Debt**||||
|Finance leases|(227,389)|60,467|(166,922)|
|Debts falling due within 1 year|(88,000)|25,000|(63,000)|
|Debts falling due after 1 year|(581,748)|63,000|(518,748)|
||(897,137)|148,467|(748,670)|
|**Total**|(373,812)|267,830|(105,982)|
The notes form part of these financial statements
Page 1 4
**AVANTI FOUNDATION LIMITED** NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **1. ACCOUNTING POLICIES**
## **BASIS OF PREPARING THE CONSOLIDATED FINANCIAL STATEMENTS**
The financial statements 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 group 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 consolidated financial statements have been prepared under the historical cost convention.
## **GROUP FINANCIAL STATEMENTS**
The financial statements consolidate the results of the charity and its subsidiaries on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented, because the charitable company has taken advantage of exemption afforded by the Companies Act 2006, s. 408.
## **INCOME**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Subscription income is recognised in the period for which the subscription relates to.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the group 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 charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
## **Donations of gifts, services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the bank.
## **EXPENDITURE**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise of trading Costs and the Costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.
- Expenditure on charitable activities includes the costs of delivering services, exhibitions and other educational activities undertaken to further the purposes of the charity and their associated support costs.
- Other expenditure represents those items not falling into any other heading.
Page 1 5
**AVANTI FOUNDATION LIMITED** NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **1. ACCOUNTING POLICIES - continued**
## **ALLOCATION OF SUPPORT COSTS**
Support costs are those functions that assist the work of the charities but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity activities. These costs have been allocated between the direct activities of the charity on the basis of staff time.
## **TANGIBLE FIXED ASSETS**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 50 years on cost of building. No depreciation is provided on the cost of freehold land.
Short leasehold - 20 years straight line basis Plant and machinery - 10 years straight line basis Fixtures and fittings - 5 years straight line basis Computer equipment - 3 years straight line basis
## **HIRE PURCHASE AND LEASING COMMITMENTS**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **TAXATION**
The charity is exempt from corporation tax, as all it's income is charitable and is applied for charitable purposes.
## **FUND ACCOUNTING**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS**
The charity operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **INVESTMENTS**
Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Page 1 6
**AVANTI FOUNDATION LIMITED** NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **1. ACCOUNTING POLICIES - continued**
## **FINANCIAL INSTRUMENTS**
The charity principal financial instruments comprise cash, short term deposits and trade creditors that arise directly from its operation. The main purpose of these financial instruments is to fund the charity's operation as well as working capital, liquidity and invest surplus funds.
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost. Where contractual obligations of financial instruments are equivalent similar to debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
## **2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In preparing these financial statements, the directors have had to make the following judgements:
Determine whether leases entered into by the charity as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indications of impairment of the charity's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
## **Tangible fixed assets (see note 13)**
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Page 1 7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **AVANTI FOUNDATION LIMITED**
## **3. DONATIONS AND LEGACIES**
|Donations
Retreat income
Interest receivable
Fundraising events
Education
Restaurant
Government grants
**OTHER INCOME**
**INVESTMENT INCOME**
**INCOME FROM CHARITABLE ACTIVITIES**||2022
£
1,390,675
333,914
1,724,589
2022
£
3
2022
£
38,408
530,271
252,817
821,496
2022
£
18,308|2021
£
4,149,449
-
4,149,449
2021
£
11
2021
£
5,944
469,999
116,445
592,388
2021
£
149,457|
|---|---|---|---|
## **4. INVESTMENT INCOME**
## **5. INCOME FROM CHARITABLE ACTIVITIES**
## **6. OTHER INCOME**
Government grants received, relate to the Coronavirus Job Retention Scheme and local authority grants.
## **7. CHARITABLE ACTIVITIES COSTS**
|Fundraising events
Development and promoting nutrition and well-being
Development of education
General
Restaurant|Direct
Costs
2022
£
51,717
214,428
462,449
1,045,371
324,118
2,098,083|Support
costs (see
note 8)
2022
£
-
618
13,719
42,891
-
57,228|Totals
2022
£
51,717
215,046
476,168
1,088,262
324,118
2,155,311|Totals
2021
£
54,942
25,093
508,034
257,207
89,072
934,348|
|---|---|---|---|---|
## **8. SUPPORT COSTS**
|Development of education
Development and promoting nutrition and
well-being
General|Finance
2022
£
109
1,094
40,794
39,591|Other
2022
£
-
-
-
-|Governance
costs
2022
£
509
12,625
16,434
3,300|Totals
2022
£
618
13,719
42,891
57,228|Totals
2021
£
11,652
15,514
61,170
3 4,004|
|---|---|---|---|---|---|
Page 1 8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **AVANTI FOUNDATION LIMITED**
## **9. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
|Auditors' remuneration
Depreciation - owned assets|2022
£
6,600
131,363
137,963|2021
£
6,600
65,420
72,020|
|---|---|---|
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
The key management personnel of the Charity comprise the trustees ("Directors" for the purposes of the Companies Act) and Senior Management Team. The total amounts paid in respect of the key management personnel of the Charity was £NIL (2021: NIL)
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **TRUSTEES' EXPENSES**
No trustees were reimbursed any expenses in the year or the previous year.
## **11. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Admin staff
Education staff
Restaurant and events staff|2022
£
459,159
29,141
8,384
496,684
2022
4
8
12
24|2021
£
369,250
8,017
7,048
384,315
2021
1
9
8
18|
|---|---|---|
The average number of employees by undertakings that were proportionately consolidated during the year was 24 (2021 - 18).
No employees received emoluments in excess of £60,000.
## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
Retreat income
**Charitable activities**
Fundraising events
Education
Restaurant
Investment income
Other income
**Total**|Unrestricted
fund
£
185,702
-
5,944
469,999
116,445
11
149,457
927,558|Restricted
funds
£
3,963,747
-
-
-
-
-
-
3,963,747|Other
£
-
-
-
-
-
-
-
-|Total
funds
£
4,149,449
-
5,944
469,999
116,445
11
149,457
4,891,305|
|---|---|---|---|---|
Page 1 9
## **AVANTI FOUNDATION LIMITED**
## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued EXPENDITURE ON Charitable activities**
|Fundraising events
Development and promoting nutrition and well-being
Development of education
General
Restaurant
**Total**
Net gains/(losses) on investments
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**
**TANGIBLE FIXED ASSETS**
**Group**
Freehold
property
£
**COST**
At 1 September 2021
3,957,090
Additions
-
Disposals
**DEPRECIATION**
At 1 September 2021
11,190
Charge for the year
67,142
Eliminated on disposal
-
At 31 August 2022
78,332
**NET BOOK VALUE**
At 31 August 2022
3,878,758
At 31 August 2021
3,945,900
**TANGIBLE FIXED ASSETS**
**Company**
Freehold
property
£
**COST**
At 1 September 2021
3,957,090
Additions
Disposals
-
At 31 August 2022
3,957,090
Eliminated on disposal
-
At 31 August 2022
78,332
**NET BOOK VALUE**
At 31 August 2022
3,878,758
At 31 August 2021
3,945,900
**DEPRECIATION**
At 1 September 2021
11,190
Charge for the year
67,142
-
At 31 August 2022
3,957,090||54,942
7,246
508,034
257,207
89,072
916,501
(26,318)
(15,261)
99,261
84,000
Short
leasehold
£
517,429
-
44,052
27,233
-
71,285
446,144
473,377
Totals
£
3,957,090
-
-
3,957,090
-
78,332
3,878,758
3,945,900
11,190
67,142
-
517,429|-
17,847
-
-
-
17,847
-
3,945,900
-
3,945,900
Plant and
machinery
£
17,629
338,941
2,645
11,755
-
14,400
342,170
14,984
-
356,570|-
-
-
-
-
-
-
-
-
-
Fixtures and
fittings
£
126,167
-
48,364
25,233
-
73,597
52,570
77,803
-
126,167|54,942
25,093
508,034
257,207
89,072
934,348
(26,318)
3,930,639
99,261
4,029,900
Totals
£
4,618,315
338,941
106,251
131,363
-
237,614
4,719,642
4,512,064
-
4,957,256|
|---|---|---|---|---|---|
## **13. TANGIBLE FIXED ASSETS**
Included in cost or valuation of land and buildings is freehold land of £600,000 which is not depreciated.
Page 20
**AVANTI FOUNDATION LIMITED** NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **14. FIXED ASSET INVESTMENTS Company**
|**COST**
At 1 September 2021
Additions
Disposals
At 31 August 2022
**NET BOOK VALUE**
At 31 August 2022
At 31 August 2021|Shares in
group
undertakings
£
1,112
-
-
1,112
1,112
1,112|
|---|---|
Avanti Foundation Limited acquired 100% of the 10,000 Issued share capital of Krishna Avanti Private Limited in 2021, a charitable company based in India.
## **15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|2022
2021
£
£
Trade debtors
45,764
7,167
Amounts owed by group undertakings
-
-
Other debtors
83,676
72,393
Prepayments and accrued income
32,977
57,518
162,417
137,078
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2022
2021
£
£
Bank loans and overdrafts
38,000
38,000
Other loans
25,000
50,000
Finance leases
41,836
20,254
Trade creditors
211,269
170,977
Social security and other taxes
3,682
7,101
Other creditors
54,623
25,750
Accrued expenses
67,518
41,600
441,928
353,682
**Group**
**Group**|2022
2021
£
£
-
460
999,861
9,465
-
-
13,897
33,702
1,013,758
43,627
2022
2021
£
£
10,000
10,000
-
-
-
-
13,766
29,376
33
47
100
133
9,200
10,074
33,099
49,630
**Company**
**Company**|
|---|---|
## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
## **17. CREDITORS: AMOUNTS FALLING AFTER MORE THAN ONE YEAR**
|Bank loans and overdrafts
Other loans
Finance leases|2022
2021
£
£
108,333
146,335
410,415
435,415
125,086
207,135
643,834
788,885
**Group**|2022
2021
£
£
28,333
38,333
-
-
-
-
28,333
38,333
**Company**|
|---|---|---|
Page 21
**AVANTI FOUNDATION LIMITED** NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **18. LOANS**
An analysis of the maturity of loans is given below:
|Amounts falling due within one year on demand:
Bank loans
Other loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayble otherwise than by installments:
Other loans more 5yrs non-inst|2022
2021
£
£
38,000
38,000
25,000
50,000
63,000
88,000
38,000
38,000
70,333
108,333
410,415
435,415
**Group**|2022
2021
£
£
10,000
10,000
-
-
10,000
10,000
10,000
10,000
18,333
28,333
-
-
**Company**|
|---|---|---|
Bank loans consist of a government backed bounce-back loan, on which 2.5% interest is payable from the anniversary of the receipt of the loan.
The charitable group has received loans from individuals and a company of £410,415 (2021: £435,415). The loans are repayable after 5 years, not by installments. There is no rate of interest applicable to the loans.
## **19. LEASING AGREEMENTS**
Minimum lease payments under finance leases fall due as follows:
|Gross obligations repayable
Within one year
Between one and five years
In more than five years
Finance charges repayable
Within one year
Between one and five years
Net obligations repayable
Within one year
Between one and five years
In more than five years|2022
2021
£
£
54,592
33,010
158,805
258,159
-
-
213,397
291,169
12,756
12,756
38,268
51,024
51,024
63,780
41,836
20,254
120,537
207,135
-
-
162,373
227,389
**Group**
Finance|2022
2021
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**Company**
leases|
|---|---|---|
Page 22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **AVANTI FOUNDATION LIMITED**
## **20. MOVEMENT IN FUNDS**
|Net
Transfers
movement
between
At 1.9.21
in funds
funds
£
£
£
**Unrestricted funds**
General fund
82,713
476,227
1,287
Designated fund
1,287
-
(1,287)
**Restricted funds**
Property
3,945,900
(67,142)
-
**TOTAL FUNDS**
4,029,900
409,085
-
Net movement in funds, included in the above are as follows:
Incoming
Resources
Gains and
resources
expended
losses
£
£
£
**Unrestricted funds**
General fund
2,564,396
(2,088,169)
-
**Restricted funds**
Property
-
(67,142)
-
**TOTAL FUNDS**
2,564,396
(2,155,311)
-
**Comparatives for movement in funds**
Net
Transfers
movement
between
At 1.9.20
in funds
funds
£
£
£
**Unrestricted funds**
General fund
97,226
(15,261)
748
Designated fund
2,035
-
(748)
**Restricted funds**
Property
-
3,945,900
-
**TOTAL FUNDS**
99,261
3,930,639
-
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
Gains and
resources
expended
losses
£
£
£
**Unrestricted funds**
General fund
927,558
(916,501)
(26,318)
**Restricted funds**
Property
3,957,090
(11,190)
-
Endowment
6,657
(6,657)
-
**TOTAL FUNDS**
4,891,305
(934,348)
(26,318)
A current year 12 months and prior year 12 months combined position is as follows:
Net
Transfers
movement
between
At 1.9.20
in funds
funds
£
£
£
**Unrestricted funds**
General fund
97,974
460,966
1,287
Designated fund
1,287
-
(1,287)
**Restricted funds**
Property
-
3,878,758
-
**TOTAL FUNDS**
99,261
4,339,724
-|At 31.8.22
£
560,227
-
3,878,758
4,438,985
Movement
in funds
£
476,227
(67,142)
409,085
At 31.8.21
£
82,713
1,287
3,945,900
4,029,900
Movement
in funds
£
(15,261)
3,945,900
-
3,930,639
At 31.8.22
£
560,227
-
3,878,758
4,438,985|
|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
Page 23
**AVANTI FOUNDATION LIMITED**
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS **FOR THE YEAR ENDED 31 AUGUST 202** 2
## **20. MOVEMENT IN FUNDS - continued**
|**Unrestricted funds**
General fund
**Restricted funds**
Property
Endowment
**TOTAL FUNDS**|Incoming
resources
£
3,491,954
3,957,090
6,657
7,455,701|Resources
expended
£
(3,004,670)
(78,332)
(6,657)
(3,089,659)|Gains and
losses
£
(26,318)
-
-
(26,318)|Movement
in funds
£
460,966
3,878,758
-
4,339,724|
|---|---|---|---|---|
## **22.[RELATED PARTY DISCLOSURES]**
In the year, the charitable company gave donations of £144,000 (2021: £NIL) to fellow group charitable company, Omnon Group Limited.
In the year, the charitable company was owed £22 (2021: £NIL) by it's fellow group company, Omnom Group Limited.
At the year end the charitable company was owed £1,035 (2021: £697) by it's fellow group charitable company, Avanti Education Limited.
At the year end the charitable company was owed £23,804 (2021: £NIL) by it's fellow group company, The Vedanta Way Limited.
At the year end the charitable company owed £NIL (2021: £1,232) to it's fellow group company, The Vedanta Way Limited.
In the year, the charitable company gave a loan of £975,000 (2021: £10,000) to fellow group company, The Vedanta Way Limited.
The charitable company received £40,000 (2021: £30,000) as management charges from it's fellow group charitable company, Avanti Education Limited.
There were no other related party transactions for the year ended 31 August 2022.
Page 24