REGISTERED COMPANY NUMBER: 11717857 (England and Wales) REGISTERED CHARITY NUMBER: 1184941
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
FOR
REKHTA FOUNDATION UK
Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
REKHTA FOUNDATION UK
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
| Page | ||
|---|---|---|
| Report of the Trustees | 1 | to 4 |
| Independent Examiner's Report | 5 | |
| Statement of Financial Activities | 6 | |
| Balance Sheet | 7 | |
| Notes to the Financial Statements | 8 | to 10 |
| Detailed Statement of Financial Activities | 11 |
REKHTA FOUNDATION UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Page 1
REKHTA FOUNDATION UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
OBJECTIVES AND ACTIVITIES Objectives and aims
The Rekhta Foundation UK (the "UK Foundation") is a charitable organisation that promotes the arts, culture and heritage of the Indian subcontinent.
The principal object of the Foundation is to promote Urdu and other languages of South Asia, ie the Indian subcontinent. The Urdu language is spoken by more than 100 million people across the world, predominantly in South Asia. It is closely related to Hindi but also shares similarities with Persian and Arabic. Urdu culture is a distinctive and influential element, particularly important for poetic, dramatic and musical expression.
The Foundation was dormant during the period of these financial statements and commenced activities as detailed below in February 2020.
The Foundation operates in two main fields:
- The Trust aims to advance arts, culture and heritage in the language, literature and culture of South Asia, in particular culture associated with Urdu.
The charity does this by
a. Organising programmes and events designed to engage and enlighten audiences about Urdu and other South Asian cultures. These will take the form of seminars, symposia and especially performances of poetry, drama, music and film, accompanied by related cultural activities.
b. Organising literary and cultural seminars, discussions, competitions and other encounters designed to promote the study and diffusion of Urdu and other South Asian cultures
- The Trust aims to advance education in the language, literature and culture of South Asia, in particular (but not limited to) in relation to writing in Urdu.
The charity does this by
a. Organizing cultural events of different shapes and sizes for students, scholars and the public, including discussions, seminars and participative literary sessions.
b. establishing, maintaining and running programmes of studentships, scholarships and rendering other kinds of aid to students including supply of books, stipends, prizes, and other incentives to study Urdu and other South Asian languages.
c. creating facilities for the advancement and propagation of Urdu and other South Asian languages including the establishment, maintenance and support of educational institutions and programmes, for academic study, creative writing and language training.
3. The Charity will also
a. Send contributions to its sister charity in India Rekhta Foundation (see note below) to support that foundation's education and cultural promotion work through its website and its cultural and educational activities.
b. Grant aid in cash or in kind or provide other financial assistance to other charitable institutions with similar objectives.
Note: Rekhta Foundation is a non-profit organisation in India devoted to the preservation and promotion of the Urdu language, its literature and culture. The Foundation operates from India a free online resource, www.rekhta.org, which was launched in 2013 and has since grown to become the world's largest repository of Urdu poetry and literature. The Indian Foundation hosts a number of events across India, the Middle East and North America in order to celebrate Urdu's splendour and versatility.
Page 2
REKHTA FOUNDATION UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
OBJECTIVES AND ACTIVITIES
Public benefit
In shaping our objectives and planning our activities for the year, the Trustees have given consideration to the duties set out in Section 17(5) of the Charities Act 2011 to have due regard to public benefit and to the Charity Commission Guidance on public benefit. In particular, the Trustees have considered how the planned activities will contribute to the overall aims and objectives that they have set.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
Rekhta UK Foundation (RUF) began to function in the autumn of 2019 but did not commence active work until February 2020.
RUF from the outset defined its overall aim, in brief, to promote the diffusion of Urdu culture in all its forms and by as many different means as possible.
One RUF goal involves the advancement of arts, culture and heritage in the language, literature and culture of South Asia, in particular culture associated with Urdu. The Foundation also has a set of educational aims for the benefit of students of Urdu and other South Asian cultures at all levels; it seeks, through language and literature education, to stimulate heightened knowledge and awareness of these different South Asian cultures and to emphasize their interrelatedness and their relevance to life in the UK.
In February 2020 the board of RUF, together with a number of volunteer advisers and active supporters in London and elsewhere, set about designing a launch event to take place in a sizeable venue in London. The event was proposed to last 2 ½ days and would have taken place in East London, either in the Tobacco Dock event space or at Queen Mary University in its Grand Hall and other spaces. However these plans were curtailed by the outbreak of Covid in March.
In this situation RUF decided to hold an initial event online, after raising some larger donations, and to aim to make a small profit on the event. The event took place in September featuring contributions from some major artists across the world of Urdu culture, including poets such as Javed Akhtar and Manoj Muntashir, reciters such as Azra Raza, actors such as Sania Saeed and singers such as Shilpa Rao. It also featured a session celebrating Sikh culture commemorating the 500th birth anniversary of Guru Nanak Dev with a curated session of music and poetry.
The result was a successful RUF launch event, well-received inside and outside the UK, and a small profit on the modest entry charge which allowed full access to a wealth of original online material which has subsequently been made available for free.
However, since then the continuation of the Covid emergency and lockdowns has meant that live events and other forms of cultural diffusion have become progressively more and more curtailed, and the Board currently feels that online events do not currently serve the foundation's educational purposes.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Members' liability
Each member has undertaken to contribute a maximum of £1 in the event of the Charity being wound up.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
11717857 (England and Wales)
Registered Charity number
1184941
Page 3
REKHTA FOUNDATION UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
Registered office
Flat 314 8 Dean Ryle Street London United Kingdom SW1P 4DA
Trustees
Ms R Kumar D M Peck S Saraf
Independent Examiner
John Thacker FCA DChA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Bankers Barclays Bank plc Holborn Leicestershire, LE87 2BB, Leicester,
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Rekhta Foundation UK for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on 13 August 2021 and signed on its behalf by:
D M Peck - Trustee
Page 4
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF REKHTA FOUNDATION UK
Independent examiner's report to the trustees of Rekhta Foundation UK ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st December 2020.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
John Thacker FCA DChA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Date: 27 August 2021
Page 5
REKHTA FOUNDATION UK (REGISTERED NUMBER: 11717857)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2020
| Period | ||||
|---|---|---|---|---|
| 7/12/18 | ||||
| Year Ended | to | |||
| 31/12/20 | 31/12/19 | |||
| Unrestricted | Unrestricted | |||
| fund | funds | |||
| Notes | £ | £ | ||
| INCOME AND ENDOWMENTS FROM | ||||
| Donations and legacies | 25,000 | - | ||
| Other trading activities | 2 | 24,866 | - | |
| Total | 49,866 | - | ||
| EXPENDITURE ON | ||||
| Charitable activities | ||||
| Event costs | 7,092 | - | ||
| Other | 998 | - | ||
| Total | 8,090 | - | ||
| NET INCOME | 41,776 | - | ||
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | - | - | ||
| TOTAL FUNDS CARRIED FORWARD | 41,776 | - |
The notes form part of these financial statements
Page 6
REKHTA FOUNDATION UK
BALANCE SHEET 31ST DECEMBER 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| Unrestricted | Unrestricted | |||
| fund | funds | |||
| Notes | £ | £ | ||
| CURRENT ASSETS | ||||
| Cash at bank | 44,421 | - | ||
| CREDITORS | ||||
| Amounts falling due within one year | 5 | (2,645) | - | |
| NET CURRENT ASSETS | 41,776 | - | ||
| TOTAL ASSETS LESS CURRENT | ||||
| LIABILITIES | 41,776 | - | ||
| NET ASSETS | 41,776 | - | ||
| FUNDS | 6 | |||
| Unrestricted funds | 41,776 | - | ||
| TOTAL FUNDS | 41,776 | - |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 13 August 2021 and were signed on its behalf by:
D M Peck - Trustee
The notes form part of these financial statements
Page 7
REKHTA FOUNDATION UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, including taking into account any potential impact of the Covid-19 pandemic, and on that basis the charity is considered to be a going concern.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to 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.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
continued...
Page 8
REKHTA FOUNDATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| Period | ||
| 7/12/18 | ||
| Year Ended | to | |
| 31/12/20 | 31/12/19 | |
| £ | £ | |
| Fundraising events | 24,866 | - |
3. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Period | ||
|---|---|---|
| 7/12/18 | ||
| Year Ended | to | |
| 31/12/20 | 31/12/19 | |
| £ | £ | |
| Independent examination fees | 840 | - |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the period ended 31st December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2020 nor for the period ended 31st December 2019.
5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Accrued expenses | 2020 £ 2,645 |
2019 £ - |
|---|---|---|
6. MOVEMENT IN FUNDS
| MOVEMENT IN FUNDS | ||||
|---|---|---|---|---|
| Net | ||||
| movement | At | |||
| At 1/1/20 | in funds | 31/12/20 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | - | 41,776 | 41,776 | |
| TOTAL FUNDS | - | 41,776 | 41,776 |
continued...
Page 9
REKHTA FOUNDATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
6. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 49,866 | (8,090) | 41,776 |
| TOTAL FUNDS | 49,866 | (8,090) | 41,776 |
7. RELATED PARTY DISCLOSURES
The only Related Party transaction during the year was a donation of £5,000 by D Peck, a Trustee.
Page 10