## **The Hari Prasad Shastri Charitable Trust** ## **Annual Report and Accounts** Year ended 5 April 2022 Charity Registration Number: 254532 (England and Wales) ## **Contents** |**Reports**|||| |---|---|---|---| |Reference and administrative information|||1| |Trustees|||2| |Independent exam||report|6| |**Accounts**|||| |Statement of financial||activities|7| |Balance sheet|||8| |Principal accounting policies|||9| |Notes to the accounts|||13| The Hari Prasad Shastri Charitable Trust **Reference and administrative information** **Trustees** Mr C J B Watson Dr R M P Reynolds Mrs L G Watson Mr N A R Fox Dr P P M Reynolds **Registered address** 69 Highlever Road London W10 6PR **Charity registration number** 254532 **Auditor** Buzzacott LLP 130 Wood Street London EC2V 6DL **Bankers** The Royal Bank of Scotland plc 78 Notting Hill Gate London W11 3HS **Solicitors** Payne Hicks Beach 10 New Square London WC2A 3QG The Hari Prasad Shastri Charitable Trust **1** Year ended 5 April 2022 The trustees present their annual report together with the financial statements of the Charity for the year ended 5 April 2022. ## **BACKGROUND AND CONSTITUTION** The Charity is constituted by a Deed of Arrangement dated 24th November 1967 relating to the residuary estate of Hari Prasad Shastri who died on 29th January 1956. The object of the Charity is to provide funds to or for the benefit of or otherwise in support of such purposes and objects as shall be exclusively charitable with powers to apply the same or any part or parts thereof in such shares and proportions for the said objects and purposes as the Trustees shall in their sole uncontrolled discretion think fit. In accordance with the original wishes of the late Hari Prasad Shastri the trustees assist in education generally but with preference to support spiritual education according to the Universal Principles that he taught. ## **ORGANISATION** The Charity does not have employees and is managed by the Trustees. The Trustees during the financial year 2021/2022 were Mr C J B Watson, Dr R M P Reynolds, Mrs L G Watson, Mr N A R Fox, Dr P P M Reynolds. ## **PROGRESS DURING THE YEAR** The Trustees are meeting their objective of achieving a balanced return between the need to generate income and long term capital growth. The gross income during the year was sufficient to cover the charitable donations made by the Trustees The Trust is privileged to be guardian of a significant amount of unique archival material comprising personal items belonging to and papers by Dr H P Shastri, Miss M Waterhouse and Dr A M Halliday. This is used as a resource to further the charitable objectives of the Trust. Suitable space is needed for storage and research into this archival material. This research is carried out voluntarily by the Trustees and other interested individuals. About a third of the expenditure of the year under review was directed towards renting a suitable space for these activities. This space is also used to fulfil the charitable purposes of the Trust to support spiritual education for genuinely interested parties, using the archive material as a resource where appropriate. The group meetings, which had been suspended as a result of Covid lockdowns, resumed on 5th September 2021. During the lockdown period programmes were prepared and distributed for individual use at home. The Trustees also use the rented accommodation for their formal Trustee Meetings and meetings with individuals or representatives of bodies applying for financial support from the Trust. The Trustees maintain contact when necessary to discuss charity matters by e-mail and conference calls. The Hari Prasad Shastri Charitable Trust **2** Year ended 5 April 2022 ## **PROGRESS DURING THE YEAR** (continued) The lease has been extended on the space currently being rented by the Trustees for another year. The space is continuing to work well for the Trust at the moment. However, as reported previously it is expected that the long-term requirements for Trust accommodation may change (see Future Plans). Experience with the rented accommodation has proved beneficial to the Trustees enabling them to understand better their future accommodation requirements. During the financial year the H P S Charitable Trust made the following donations: - 1) A donation of £36,000 was made to the Karuna Trust to support the Aryaloka Project to provide education in computer skills to help the poor women (mostly) of India escape the poverty trap. It provides free IT training to Dalit people for them to gain a state recognised IT certificate. Outcomes have been very positive. - 2) A donation of £1,500 was made to Pipal Tree (formerly Chora Chori) for supporting the protection and education of trafficked children in Nepal. Pipal Tree is raising funds for the "Lily's Leaves" social enterprise in Kathmandu to support it for the first three years of its existence and until it can derive its own income that will underpin training and other social welfare activities without reliance on grants. - 3) A donation of £2, a 14 week ESOL course where women learners can study from Entry Level 1 up to Level 2 Edexcel qualifications. The course is aimed at improving all aspects of English language including, Speaking and Listening and Reading and Writing to enable disadvantaged women to improve their knowledge and skills. - 4) to develop a tool to help teachers identify pupils who may be struggling with mental health issues to the detriment of their education, so that timely and appropriate support may be provided. education generally for the welfare of all. in a building that has been identified as having combustible cladding. This is currently being replaced. The managing agent has been successful in securing a Government grant under the Building Safety Fund to pay for the recladding works. However the Charity has been exposed to an increase in building insurance costs and higher service charges The Charity was also liable to pay for reflooring the balconies in non-combustible material in the sum of £4,572 (less than £6,500/flat quoted last year). The Hari Prasad Shastri Charitable Trust **3** Year ended 5 April 2022 ## **RESERVES POLICY AND FUTURE PLANS** The Charity had sufficient funds at 5th April 2022 to enable it to maintain its level of charitable distributions. The H P S Charitable Trust is again considering possible recipients for grants and other Trust activities for the year 2022/23. At the turn of the financial year ending April 2022, a contribution of £36,000 was made to Karuna Trust to support women from poor backgrounds of Bangladesh to continue with education to the age of 18 (with additional support while schools were closed during the Covid pandemic) as a means to prevent them being trafficked and/or forced into marriage as children and save them and their peers from the consequent abuse and deprivation that arises from this practice. Prior to the publication of this report during the year 2022/23 a contribution of £30,000 was made to support ARK schools music programme. The benefits on education, discipline and general self-esteem and well-being for pupils learning to play a musical instrument are well established and the Trust is pleased to be able to support this initiative in line with its objectives to support education for the welfare of all. The manuscript for a second book of lectures by Dr A M Halliday is now complete is undergoing a final edit prior to publication. As measures to control the spread of Covid have relaxed, the Trust has commenced with meetings and is again arranging study retreats for those interested in the philosophy according to the principles taught by Dr Shastri. Charity legislation requires the Trustees to prepare accounts for each financial year of the of its financial position at the end of the year. In accordance with charity legislation the Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the Charity. They also have responsibility for safeguarding the assets of the Charity and for taking reasonable steps to prevent and detect fraud and other irregularities. ## **FINANCIAL REPORT FOR THE YEAR** As at 5 April 2022, the quoted investments were valued at £4,516,773, an increase of £775,722 from the value as at 5 April 2021. This reflects both additions to investments in the year as well as investment gains. The bank balance of £98,131 represent a decrease of £16,965 from the balances at 5 April 2021 mainly arising increased dividend income from quoted investments. Net investment gains for the year were £855,685 (2021 net investment gains of £266,092). This includes investment gain of £70,463 in relation to the investment property (see note 7). The net income over expenditure for the year amounted to £827,203 (2021 £244,977) with a loss for the year before investment gains of £28,482 (2021 loss for the year before investment gains of £21,115). The Hari Prasad Shastri Charitable Trust **4** Tru81•••' Year ended S Awl 2022 TRUSTEES Mr C J B Walson, Dr R M P Reynolds, Mrs L G Walson. Mr N A R Fox, Dr P P M Reynolds sorvod throughout tho y•ar. No trust00 had any bèn8ficial interest in any contrart with Ih cnanty dunng Ihe yeaT. INOEPENDENT EXAMINER AND ACCOUNTANTS The Trttstees has approved Buzzacotl LLP Chartered Accountants lo o)ndiict IhA prèparation (and audit rf required by Charity Commission) of the Tnjsl's accounts. For and on behalf of The H8ri PrBsad Shastri Charitable Trust.. otsor Date of approval by the Trustees 1s-/1 /z3 The Hari Prasad Shastri Charitable Trust 5 5 April 2022 I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2022. ## **Responsibilities and basis of report** As the trustees of the Charity you are responsible for the preparation of the accounts in accordance of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. I have completed my examination. I confirm that no material matters have come to my attention in connection with my examination giving me cause to believe that in any material respect: - accounting records were not kept in respect of the charity as required by section 130 of the Act; or The accounts do not accord with those records; or - the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any part of an independent examination. 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. Buzzacott LLP Chartered Accountants 130 Wood Street London EC2V 6DL Date: 17 January 2023 The Hari Prasad Shastri Charitable Trust **6** ## **Statement of financial activities** Year to 5 April 2022 **----- Start of picture text -----**
Unrestricted funds
2022 2021
Notes £ £
Income from:
Donations and legacies 760
Investments 1 125,953 89,627
Total income 126,713 89,627
Expenditure on:
Raising funds
. 9,496 8,591
Charitable activities
. Spiritual education 2 49,816 50,151
. Other grant making 2 95,883 52,000
Total expenditure 155,195 110,742
Net (expenditure) before gains on investments 4 (28,482) (21,115)
Net gains on investments 7 855,685 266,092
Net income and net movement in funds 827,203 244,977
Reconciliation of funds:
Fund balances brought forward at 6 April 4,524,681 4,279,704
Fund balances carried forward at 5 April 5,351,884 4,524,681
**----- End of picture text -----**
All of periods and were unrestricted in their nature. All gains and losses recognised in the year are included in the above statement of financial activities. The Hari Prasad Shastri Charitable Trust **7** 8•lan￿ •h••t as at S April 2022 2022 2022 2021 2021 Notes Flx•d a$s•ts Tangible fixed assets Investments 5,241.773 4.395,584 5,241,T73 4,395,$84 Curr•nt a•••ts tlebtors Cash at bank Tot•1 curr•nl ••Mts 14.806 98.131 16.221 I 15.096 112,937 131,317 Ll•blllll*• Credilor5". arnujrts faUiThJ ijue wmin one year.. (1.8261 Iz,zzoi N•t ¢umint aM•t• 110,111 129,097 5,351,8B4 4,524.681 Th• lunds of th• ch•rlty UnrnSlT￿wj gEn8r￿ fun(Js 5,351,884 4.524.681 Approved by the trustees and signed on their behalf by.. Th8 Hari Prasad Shaslri Charitable Trnsl 8 **Principal accounting policies** Year to 5 April 2022 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below. ## **Basis of preparation** The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts. The accounts are presented in sterling and are rounded to the nearest pound. The accounts 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. ## **Critical accounting estimates and areas of judgement** Preparation of the accounts requires the trustees to make significant judgements and estimates. The trustees deem that in the year ended 5 April 2022 the significant judgement or estimate key to the information presented in the accounts was the valuation of the investment property held by the trust. ## **Assessment of going concern** The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 5 April 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see Note 7 to the accounts and the risk management section of the rt for more information). The Hari Prasad Shastri Charitable Trust **9** **Principal accounting policies** Year to 5 April 2022 ## **Income recognition** Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income comprises donations and legacies and investment income. Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. 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 recognition and the basis of apportioning costs** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment 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 comprises the following: - a) Expenditure on raising funds consists of the fees paid to investment managers in connection with the management of the c investments. - b) Expenditure on charitable activities includes expenditure on the c charitable purposes as described in the trustee report including grants payable as part as well as any support costs or governance costs. - Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. All expenditure is stated inclusive of irrecoverable VAT. The Hari Prasad Shastri Charitable Trust **10** **Principal accounting policies** Year to 5 April 2022 ## **Tangible fixed assets** All assets costing more than £500 and with an expected useful life exceeding one year are capitalised. Tangible fixed assets are written off over their estimated useful lives on the following basis: Office furniture 25% straight line Office equipment 33% straight line ## **Fixed asset investments** Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The charity does not acquire put options, derivatives or other complex financial instruments. Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise. ## **Investment properties** Investment properties are measured initially at cost and subsequently at fair value at the reporting date. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise. The investment property at 130 Barlby Road, London is valued at the fair value at the reporting date. ## **Cash flow** The financial statements do not include a cash flow statement because the charity is exempt from the requirement to prepare such a statement under the Charities SORP (FRS102). ## **Debtors** Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They are discounted to the present value of the future cash receipt where such discounting is material. ## **Cash at bank and in hand** Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. The Hari Prasad Shastri Charitable Trust **11** **Principal accounting policies** Year to 5 April 2022 ## **Creditors and provisions** Creditors and provisions are recognised 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. ## **Financial instruments** The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows: _Financial assets_ Prepayments and deposits are not financial instruments. _Cash at bank_ classified as a basic financial instrument and is measured at face value. _Financial liabilities_ accruals and other creditors are financial instruments, and are measured at amortised cost. ## **Fund accounting** The unrestricted fund represents funds available for the general charitable purposes of the charity at the discretion of the trustees. The Hari Prasad Shastri Charitable Trust **12** **Notes to the accounts** Year to 5 April 2022 ## **1 Income from investments** ||**2022**
**£**|2021
£| |---|---|---| |Income from listed investments
Rent from investment property
Interest receivable|**120,821**
**5,070**
**62**
**125,953**|84,505
4,800
322
89,627| ## **2 Expenditure on charitable activities** **----- Start of picture text -----**
2022 2021
£ £
Spiritual education
. Other costs 450 1,477
. Support costs (note 3) 49,366 48,674
49,816 50,151
Other grant making
. Grants payable 95,883 52,000
145,699 102,151
**----- End of picture text -----**
## **3 Support costs** |Premises costs
Legal costs|**2022**
**£**
**3,228**
**46,138**
**49,366**|2021
£
2,652
44,561
1,461
48,674| |---|---|---| ## **4 Net (expenditure) before gains on investments** This is stated after charging: |Amounts payable under operating leases|**2022**
**£**
**3,228**
**39,810**|2021
£
2,652
35,979| |---|---|---| The Hari Prasad Shastri Charitable Trust **13** **Notes to the accounts** Year to 5 April 2022 ## **5 Remuneration of trustees and key management personnel** The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. The trustees receive no remuneration or reimbursement of expenses in connection with their duties. ## **6 Tangible fixed assets** |**Tangible fixed assets**|||| |---|---|---|---| ||Office
furniture
£|Office
equipment
£|**Total**
**£**| |**Cost**
At 6 April 2021 and 5 April 2022
**Depreciation**
At 6 April 2021 and 5 April 2022
**Net book values**
At 6 April 2021 and 5 April 2022|1,091|929|**2,020**| ||1,091|929|**2,020**| ||||| ## **7 Investments** At the year end, investments comprised: ||**2022**
**£**|2021
£| |---|---|---| |Listed investments
Investment property|**4,516,773**
**725,000**
**5,241,773**|3,741,047
654,537
4,395,584| ## _**Listed investments**_ **----- Start of picture text -----**
2022 2021
£ £
Market value of listed investments at 6 April 3,725,386 3,033,547
Additions at cost 63,613 182,447
Disposal proceeds (78,971) 243,300
Net investment gains 785,222 266,092
Market value of listed investments at 5 April 4,510,911 3,725,386
Cash with investment managers for reinvestment 5,862 15,661
4,516,773 3,741,047
**----- End of picture text -----**
All listed investments held are dealt in on a recognised stock exchange. The Hari Prasad Shastri Charitable Trust **14** **Notes to the accounts** Year to 5 April 2022 ## **7 Investments** (continued) Listed investments held at 5 April comprised the following: ||**2022**
**£**|2021
£| |---|---|---| |UK Listed investments
Overseas listed investments
Cash held for reinvestment|**4,495,606**
**15,305**
**5,862**
**4,516,773**|3,709,562
15,825
15,661
3,741,047| At 5 April 2022 the following individual holdings had a market value in excess of 5% of the entire portfolio as at that date. **----- Start of picture text -----**
£ %
**----- End of picture text -----**
|Charifund
SJP International Corporate Bond
SJP Corporate Bond
SJP Equity Income
SJP UK & International Income
SJP Global Equity Income|**2,040,167**
**242,214**
**438,617**
**329,641**
**237,130**
**254,261**|**45.2%**
**5.4%**
**9.7%**
**7.3%**
**5.3%**
**5.6%**| |---|---|---| ## _**Investment property**_ ||**2022**
**£**|2021
£| |---|---|---| |At 1 January 2021
Gain on revaluation
At 5 April 2022|**654,537**
**70,463**
**725,000**|654,537
654,537| The investment property was purchased on 21 July 2016 and was initially valued at cost. The Trustees sought a valuation of the property in the year and therefore the value represents the fair value at the reporting date. ## **8 Debtors** ||**2022**
**£**|2021
£| |---|---|---| |Rent deposits
Prepayments|**3,570**
**11,236**
**14,806**|3,570
12,651
16,221| The Hari Prasad Shastri Charitable Trust **15** **Notes to the accounts** Year to 5 April 2022 ## **9 Creditors: amounts falling due within one year** ||**2022**
**£**|2021
£| |---|---|---| |Accruals|**2,826**
**2,826**|2,220
2,220| ## **10 Money owing to the charity** The charity was bequeathed a legacy from the Estate of the late Mrs Lily Jacob, however The Reserve Bank of India has so far refused permission for the original legacy of 111,000 Rupees, together with accrued interest, to be remitted to the UK. The funds, inclusive of interest received, held at Standard Chartered Bank, Calcutta are estimated by the trustees to amount to 1,345,805 Rupees (approximating £13,515) at 5 April 2022, have not been included on the balance sheet. The Hari Prasad Shastri Charitable Trust **16**