Charity registration number: 1171708
## Arsha Kula Foundation
Annual Report and Financial Statements for the Year Ended 31 July 2020
Ross Brooke Limited Chartered Accountants 31A Charnham Street Hungerford Berkshire RG17 0EJ
## **Arsha Kula Foundation**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Statement of Trustees' Responsibilities|4|
|Accountants' Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 11|
## **Arsha Kula Foundation**
## **Reference and Administrative Details**
**Trustees** Dr A Banerjee P Banerjee R Banerjee S Banerjee S Svatmananda **Principal Office** 5 Church Close Thatcham Berkshire RG19 3PP **Charity Registration Number** 1171708 **Accountant** Ross Brooke Limited Chartered Accountants 31A Charnham Street Hungerford Berkshire RG17 0EJ
Page 1
## **Arsha Kula Foundation**
## **Trustees' Report**
The trustees present the annual report together with the financial statements of the Charity for the year ended 31 July 2020.
## **Objectives and activities**
## _**Objects and aims**_
The objectives of the CIO are:
To advance the education of the public in general on the ancient knowledge of India (including the 8 limbs of Yoga, Ayurveda, Jyotisha, Vaastu, Veda, Vedanta, etc.);
To counter the dilution of the yogic traditions and other ancient disciplines taking place due to the growing commercialisation and branding of ancient practices;
To revive traditional yogic knowledge in danger of being forgotten;
To improve mental, physical and spiritual health, healing and development for participants through ancient knowledge and practices;
To provide (in the longer-term) a dedicated facility to host classes and workshops promoting the charity’s objective, enhancing both public accessibility as well as the quality of education and teaching.
## _**Public benefit**_
The trustees endeavour to create opportunities for a wider section of the public to have access to high quality teachers gathered from around the World, covering the totality of the ancient knowledge of India. They aim to increase recognition and awareness of the benefits of the ancient knowledge of India and support for further research into these benefits as well as dissemination of the results to the public.
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
Due to the cancellation of the 2020 World Yoga Festival as a result of the COVID-19 pandemic, the Foundation supported a whole series of online courses and classes incorporating yoga asana from many different lineages, pranayama, meditation, non-duality, Ayurveda, chanting, kirtan and Advaita Vedanta talks. These were a huge success, growing and encouraging the yogic community to continue their interest in the work of the foundation.
## **Financial review**
Donations totalled £5,344 for the year period ending 31 July 2020. The charity had expenses during the period totalling £2,577, these included support costs for the 2020 World Yoga Festival. The surplus being carried forward for the year is £2,767.
## _**Policy on reserves**_
The charity hopes to increase reserves in the next accounting period.
Page 2
## **Arsha Kula Foundation**
## **Trustees' Report**
## **Plans for future periods**
## _**Aims and key objectives for future periods**_
Due to the Covid-19 pandemic, the 2020 World Yoga festival has had to be postponed until 2021 under government guidance for the health and welfare for all concerned. All ticket holders have been notified and the vast majority of them have expressed a desire to carry forward their 2020 ticket until 2021. Those that are unable to do so have been refunded for their ticket. The number and frequency of online classes has been increased and have seen great take-up. Some of these individual classes have migrated to short online income generating courses. There are plans for another Vedanta Camp in Rishikesh, India in early 2022.
## **Structure, governance and management**
## _**Nature of governing document**_
Arsha Kula Foundation is a charitable incorporated organisation and was officially registered by the Charities Commission for England and Wales on 20 February 2017. The governing document is the Constitution dated 20 February 2017.
## _**Recruitment and appointment of trustees**_
The first charity trustees are as follows, and are appointed for the following terms –
Ramanuj Banerjee................................................................. for life Sonali Banerjee......................................................................for life Priya Banerjee....................................................................... for 4 years Avishek Banerjee...................................................................for 4 years Swami Svatmananda.............................................................for 4 years
Appointment of charity trustees:
1 - Apart from the first charity trustees, every trustee must be appointed by a resolution passed at a properly convened meeting of the charity trustees.
2 - In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
The annual report was approved by the trustees of the Charity on .................... and signed on its behalf by:
......................................... R Banerjee Trustee
Page 3
## **Arsha Kula Foundation**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity 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 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the Charity on .................... and signed on its behalf by:
......................................... R Banerjee Trustee
Page 4
## **Arsha Kula Foundation**
## **Accountants' Report to the trustees of Arsha Kula Foundation**
In accordance with the engagement letter we have prepared for your approval the financial information of Arsha Kula Foundation CIO for the year ended 31 July 2020 which comprises the Statement of Financial activities, the Balance Sheet and the related notes from the charity's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/membershandbook. This report is made solely to you, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial information of Arsha Kula Foundation CIO and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical release TECH08/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the trustees for our work or for this report.
You have approved the financial information for the year ended 31 July 2020 and have acknowledged your responsibility for it, for the appropriateness of the financial reporting framework adopted and for providing all information and explanations necessary for its compilation.
We have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial information.
...................................... Ross Brooke Ltd Chartered Accountants
31A Charnham Street Hungerford Berkshire RG17 0EJ
Date:.............................
Page 5
## **Arsha Kula Foundation**
## **Statement of Financial Activities for the Year Ended 31 July 2020**
|**Note**
**Income and Endowments from:**
Donations and legacies
2
**Expenditure on:**
Charitable activities
3
Total Expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
7
**Note**
**Income and Endowments from:**
Donations and legacies
**Expenditure on:**
Charitable activities
Total Expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
7|**Unrestricted**
**funds**
**£**
5,344
(2,273)
(2,273)
3,071
975
4,046
**Unrestricted**
**funds**
**£**
4,968
(4,007)
(4,007)
961
14
975|**Restricted**
**funds**
**£**
-
(304)
(304)
(304)
304
-
**Restricted**
**funds**
**£**
1,000
(696)
(696)
304
-
304|**Total**
**2020**
**£**
5,344
(2,577)|
|---|---|---|---|
||||(2,577)|
||||2,767
1,279|
||||4,046|
||||**Total**
**2019**
**£**
5,968
(4,703)|
||||(4,703)|
||||1,265
14|
||||1,279|
All of the Charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 7.
Page 6
## **Arsha Kula Foundation**
## **(Registration number: 1171708) Balance Sheet as at 31 July 2020**
|**Note**
**Current assets**
Cash at bank and in hand
**Net current assets**
**Funds of the Charity:**
**Restricted income funds**
**Unrestricted income funds**
Unrestricted income funds
**Total funds**
7|**2020**
**£**
4,046
4,046
-
(4,046)
(4,046)|**2019**
**£**
1,279|
|---|---|---|
|||1,279|
|||(304)
(975)|
|||(1,279)|
The financial statements on pages 6 to 11 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... R Banerjee Trustee
Page 7
## **Arsha Kula Foundation**
## **Notes to the Financial Statements for the Year Ended 31 July 2020**
## **1 Accounting policies**
## **Statement of compliance**
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 Charities Act 2011.
## **Basis of preparation**
Arsha Kula Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the Charity.
Page 8
## **Arsha Kula Foundation**
## **Notes to the Financial Statements for the Year Ended 31 July 2020**
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **2 Income from donations and legacies**
|Donations and legacies;
Donations from individuals
Grants, including capital grants;
Grants from companies
**3**
**Expenditure on charitable activities**
**Unrestricted**
**funds**
**General**
**£**
Website design and maintenance
691
Donations
-
Support costs for 2019 World Yoga
Festival
800
Room Hire
782
2,273|**Unrestricted**
**funds**
**General**
**£**
5,344
-
5,344
**Restricted**
**funds**
**£**
304
-
-
-
304|**Total**
**2020**
**£**
5,344
-
5,344
**Total**
**2020**
**£**
995
-
800
782
2,577|**Total**
**2019**
**£**
4,968
1,000|
|---|---|---|---|
||||5,968|
||||**Total**
**2019**
**£**
150
3,168
839
546|
||||4,703|
In 2019 £150 of website design and maintenance costs and £546 of room hire costs were paid out of the restricted funds. The remaining costs of £4,007 were were paid out of the unrestricted funds.
## **4 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the period.
No trustees have received any reimbursed expenses or any other benefits from the charity during the period.
## **5 Taxation**
The Charity is a registered charity and is therefore exempt from taxation.
Page 9
## **Arsha Kula Foundation**
## **Notes to the Financial Statements for the Year Ended 31 July 2020**
## **6 Investment in subsidiaries**
The charity has a wholly owned trading subsidiary whose principle purpose is to run the World Yoga Festival each year. The trading subsidiary is Arsha Kula Limited, registered company 10665716. For the year ended 31st July 2020 the reported figures for the Arsha Kula Limited were as follows:
Turnover £7,911 Expenditure (£28,264) Loss (£20,353)
Assets £19,580 Liabilities (£77,601) Funds (£58,021)
## **7 Funds**
|**Unrestricted funds**
**_Unrestricted general funds_**
Unrestricted general funds
**Restricted funds**
Restricted funds
**Total funds**
**Unrestricted funds**
Unrestricted general funds
**Restricted funds**
Restricted funds
**Total funds**|**Balance at 1**
**August 2019**
**£**
975
304
1,279
**Balance at 1**
**August 2018**
**£**
14
-
14|**Incoming**
**resources**
**£**
5,344
-
5,344
**Incoming**
**resources**
**£**
4,968
1,000
5,968|**Resources**
**expended**
**£**
(2,273)
(304)
(2,577)
**Resources**
**expended**
**£**
(4,007)
(696)
(4,703)|**Balance at 31**
**July 2020**
**£**
4,046
-|
|---|---|---|---|---|
|||||4,046|
|||||**Balance at 31**
**July 2019**
**£**
975
304|
|||||1,279|
Page 10
## **Arsha Kula Foundation**
## **Notes to the Financial Statements for the Year Ended 31 July 2020**
## **8 Analysis of net assets between funds**
|Current assets|**Unrestricted**
**funds**
**General funds**
**£**
4,046|**Total funds**
**£**
4,046|
|---|---|---|
## **9 Related party transactions**
During the year the charity paid £800 (2019 - £839) on behalf of its trading subsidiary Arsha Kula Limited to provide financial assistance for the World Yoga Festival.
Arsha Kula Foundation CIO made a donation to Arsha Kula Limited in the year of £nil (2019 - £3,132) as a contribution towards the costs of the 2019 World Yoga Festival.
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