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2020-12-31-accounts

Charity number: 270157 (England and Wales) Charity number: SC041919 (Scotland)

MAHARISHI FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

MAHARISHI FOUNDATION

CONTENTS

Page
Trustees' report 1 - 18
Independent auditor's report on the financial statements 19 - 22
Consolidated statement of financial activities 23
Consolidated balance sheet 24 - 25
Charity balance sheet 26
Consolidated statement of cash flows 27
Notes to the financial statements 28 - 55

MAHARISHI FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

M A H A R I S H I F O U N D A T I O N

Charity Commission report

The Trustees’ Annual Report 2020

The Trustees present their annual report together with the audited financial statements for the year 1 January 2020 to 31 December 2020.

The Trustees confirm that the Annual Report and financial statements comply with current statutory requirements, the requirements of the trust deed, and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

TRANSCENDENTAL MEDITATION – TM

With our history of teaching Transcendental Meditation (TM) in Great Britain for over fifty years, we are encouraged by the continuing interest from people of all ages and all walks of life.

Founded by Maharishi Mahesh Yogi, Transcendental Meditation is a simple, natural, effortless procedure practised for 15 to 20 minutes in the morning and evening, while sitting comfortably with eyes closed. It can be learned easily by anyone. Our courses are open to everyone regardless of gender, age, race or religion – https://uk.tm.org

During the practice one’s awareness settles down and one experiences a unique state of restful alertness. As the mind transcends mental activity to experience the simplest form of human awareness – Transcendental Consciousness – one’s body becomes deeply relaxed. There is also an increase in the coherence of brain functioning. Regular transcending enlivens qualities of creativity, dynamism, orderliness, and organising power, resulting in increased effectiveness and success in daily life. At the same time, by experiencing deep rest during Transcendental Meditation accumulated stress and fatigue in the body is dissolved. When practised regularly, Transcendental Meditation offers everyone a simple technique to enrich mind, body, emotions, and personal relationships.

The UK has over 120 Certified Teachers of Transcendental Meditation. Due to the COVID hiatus, no new teachers from the UK were trained in 2020. We have five candidates for the next course now expected to be held in early 2022. To build a pipeline of potential new Teachers we encourage Meditators to deepen their experiences by attending TM residence courses, now supplemented by a variety of online options.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Transcendental Meditation course

The initial course of instruction in Transcendental Meditation involves a series of lessons over six months. A seven-step introductory course comprises two lectures on the benefits and nature of the practice, a personal interview with the Teacher, and four lessons of about two hours, each taken on four consecutive days. After this new meditators are fully equipped to practise TM on their own and enjoy all the benefits. Further lessons follow every two or four weeks for six months to ensure that the practice is correct and giving maximum benefit.

Maharishi Foundation makes its courses as accessible as possible via concessionary fees and extended payment terms for those on low incomes or in need. When possible, scholarships are provided to those unable to pay full fees, using funds donated specifically for this purpose. Course fees for learning Transcendental Meditation are listed here: https://uk.tm.org/transcendental-meditation-course-fee

Comprehensive follow-up is available for all who wish to take advantage of it. In a series of meetings, practitioners can discuss their experiences in meditation and learn more about the practice and its effects in daily life.

Scientific research on Transcendental Meditation

More than 380 peer-reviewed scientific research studies have been conducted at 300 universities and research institutes in 30 countries, including Harvard Medical School, Stanford Medical School and Yale Medical School. Findings have been published in over 160 scientific journals, including The Lancet , British Medical Journal and American Journal of Cardiology.

These studies have shown that regular practice leads to a wide range of benefits including decreased anxiety and depression, improved memory and clearer thinking, reduced high blood pressure, decreased illness and more harmonious relationships. See: https://www.tm.org/research-on-meditation These scientifically documented benefits are fully in accord with the objectives of the Charity.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Advanced Techniques of Transcendental Meditation & the TM-Sidhi Programme

Maharishi Foundation also teaches optional advanced courses. These can be taken in sequence by anyone who has learned TM. They further develop mind-body co-ordination and other benefits. There are four Advanced Techniques, each of which is ideally learned four months after the previous technique. Once someone has learned all four Advanced Techniques, she or he may then go on to learn the TM-Sidhi Programme after a further four months.

The TM-Sidhi Programme trains the individual to operate from the level of Transcendental Consciousness, greatly enhancing co-ordination between mind and body, and developing the ability to think and act in accord with Natural Law. The most powerful aspect of the TM-Sidhi Programme is the Yogic Flying technique, during which people report an experience of 'bubbling bliss'. Published research shows that at the same time a powerful influence of coherence, positivity, and harmony radiates throughout the environment.

The Maharishi Effect

Even a small proportion of the population practising Transcendental Meditation produces measurable effects in society. Extensive scientific research has established that crime decreases significantly in a community when as little as 1% of the population practises TM. This phenomenon was named ‘the Maharishi Effect’ in honour of Maharishi who had predicted it as early as 1960. The Maharishi Effect has been repeatedly confirmed in almost 50 published scientific research papers.

An even greater effect of coherence is produced in society by the TM-Sidhi Programme. This is particularly pronounced when Yogic Flying is practised in a group. The number required was found to correspond to the square root of one per cent of the population – for example, 800 for Great Britain, 2,000 for Europe, or 9,000 for the current population of the world.

Maharishi Foundation, and affiliated organisations in other countries, support initiatives to establish coherence-creating groups of experts in the TM-Sidhi Programme who, through their daily group practice, will generate a powerful influence of coherence and positivity in each nation.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

FURTHER EDUCATION & OTHER INITIATIVES

Maharishi Vedic Science

Maharishi Foundation also offers courses in Maharishi Vedic Science. Veda means ‘knowledge’ – total knowledge of Natural Law. Maharishi Vedic Science courses offered by the Charity cover four main areas: “Maharishi’s Total Knowledge and Higher States of Consciousness” (a systematic and complete overview of Maharishi Vedic Science); prevention-oriented health care through Maharishi AyurVeda; knowledge of architecture and planning in accord with the laws of nature through Maharishi Sthapatya Veda; and the science and art of music that is in accord with Natural Law through Maharishi Gandharva Veda.

During 2020, Dr Peter Warburton, the Chief Executive of Maharishi Foundation, in concert with the Maharishi Peace Palace administrative team, developed and led a comprehensive series of online courses based on Maharishi’s Total Knowledge attended by participants from the UK and many parts of the globe. In the past 18 months over 2,500 people have attended these courses.

European Union co-funded educational projects

January 2020 marked the fruition of Maharishi Foundation's involvement in a second €0.5m EU project aimed at demonstrating the reduction of stress and violence in schools and promotion of social inclusion. The approach was based on teaching Quiet Time with Transcendental Meditation to students and their teachers and parents at schools in Portugal, Belgium, Italy, and the UK. We co-ordinated implementation teams in the four countries. The former headteacher of the Maharishi School in Skelmersdale provided advice and support to all teams. In the UK, TM was taught to members of staff at three alternative provision schools in Essex and Lancashire, and at three primary schools and one secondary school.

Evaluation was provided by three universities via pre- and post-test questionnaires. The benefits observed ranged from improved learning, creativity, well-being and emotional balance to greater resilience and reduced stress and anxiety. For the schools’ teachers the research found that symptoms of burnout reduced. The project and its evaluation were presented in Brussels in January 2020, leading to a positive report from the EU Commission. Details can be found here: friends-project.eu

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Maharishi AyurVeda

The Charity is also involved in the promotion of Maharishi AyurVeda in UK via its ownership of Ayurveda Limited (Company number 02167993).

Ayurveda is the world’s longest continually practised medical science. Developed in India over 6,000 years ago. Ayurveda (knowledge of the quality and span of life) is a natural approach to creating balance and strengthening the body’s innate healing ability. It is acknowledged by the World Health Organization and is growing in its global use as one of the most effective systems of natural healthcare. Twenty years ago, Ayurveda was almost unknown outside India. Comprehensive knowledge of it had become fragmented and lost. Working with the foremost Ayurveda experts in India, Maharishi systematized and restored it in its completeness. This revitalised form of Ayurveda is now known as Maharishi AyurVeda. The goal of Maharishi AyurVeda is to prevent sickness and promote balanced health and longevity by enlivening the inner intelligence of the body and strengthening its natural healing ability.

The sale of Maharishi AyurVeda Products, through the charity's subsidiary Ayurveda Ltd, supports better health and peace of mind. Products include herbal remedies, natural cosmetics, organic foods, publications, and more.

Licensed Maharishi AyurVeda Health Centres in Suffolk and Lancashire provide authentic Maharishi AyurVeda consultations and treatments to boost the immune system, remove impurities, and promote vitality and good health.

MAHARISHI FOUNDATION

Organisational structure

The Trustees have an administrative structure in England, Scotland and Wales to carry out the objectives of the charity. Policy decisions of Maharishi Foundation are made by the Trustees while implementation is carried out by the Chief Executive in collaboration with three national directors in Scotland, England, and Wales:

David Rae, Scotland Richard Johnson, England Helen Evans, Wales

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The National Directors enlist the support of volunteers to promote education of higher consciousness in 12 areas of society, namely: schools and universities, health care, agriculture, architecture, administration, trade and commerce, science and technology, law and order, cultural studies, political science and the economy, defence, and communication.

During August 2020, a Board was set up to co-ordinate key aspects of operational management including strategy implementation, financial planning, marketing, and organisational priorities. Both the Chief Executive and Chairman of the Trustees are members. The Board works with key officers of the charity and is empowered by the Trustees with responsibility for expansion, promotion, running of courses and the operation of facilities owned by the Charity.

Volunteers

The Trustees are immensely grateful to the many volunteers who contribute their time and skills to help run the Charity, both centrally and in teaching centres around the country. Activities by volunteers include fundraising, promotion of courses, administration, bookkeeping and supporting our Teachers as they run courses and hold advanced meetings in local areas.

PROPERTIES OWNED BY MAHARISHI FOUNDATION AND ITS SUBSIDIARIES

Maharishi Peace Palace, Rendlesham, Suffolk

The Maharishi Peace Palace, the first of its kind in the UK, lies at the heart of Maharishi Garden Village (MGV) in Rendlesham, Suffolk. The Peace Palace has been constructed according to Maharishi Sthapatya Veda, which embodies the ancient principles of Vedic architecture in accord with natural law, to promote the well-being of all occupants. It has 30 luxurious ensuite bedrooms, a large dining room, a central Great Hall for conferences, numerous meeting rooms, and dedicated halls for practice of TM and the TM-Sidhi Programme. Courses vary from a weekend to one-month or longer. All deepen the understanding and experience of Transcendental Meditation and associated programmes.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

In late March 2020, in accordance with UK Government guidelines required to reduce the impact of the Coronavirus pandemic, the Peace Palace was closed. It has remained closed until the time of submission of this report.

In the absence of income from residential courses, Maharishi Education Centre, the owner and operator of the Peace Palace, moved swiftly to establish an online presence through a new platform – Maharishi.Online – which, by a series of online courses, was able to generate supplementary income.

These live interactive online courses, initially started to fulfil the desire for knowledge during lockdown, have now become a regular feature, covering a variety of subjects presented by some of the organisation’s foremost teachers for all to enjoy in the comfort of their own homes. Maharishi.Online is about to start its twenty-second online course, with many others lined up and hundreds of enthusiastic participants eager for more. Past courses are available to view on-demand as “Archive Treasures”.

Through a combination of introducing on-line courses to generate revenue, claiming Covid support grants, tax holidays, furlough grants, reducing expenses, and some generous donations, Maharishi Education Centre has fortunately been able to limit the financial damage of the pandemic.

The Peace Palace remains closed due to Covid. The policy on opening continues to be to follow the guidance of science and the government, to watch international developments carefully, but to “err on the side of caution”.

Nevertheless, in light of recent Covid developments in the UK, the Peace Palace now finds itself able to take its first tentative steps towards reopening, although it is likely to be some time before courses can commence.

The Peace Palace will eventually reopen for residential retreats and courses not only when everyone’s safety can be assured but also when those entering can experience the full benefit of retreats and courses in Perfect Vastu.

Maharishi Golden Dome, Skelmersdale, Lancashire

Since 1980 a group of experts in Transcendental Meditation and the TM-Sidhi Programme has been living at a community in Skelmersdale known as the Maharishi European Sidhaland. It is the largest such group in Europe. It numbers 150 permanent members including children and welcomes hundreds of visitors every year. The Maharishi Golden Dome is purpose-built for daily group practice and for courses.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The long-term aim is to expand to a population that would enable 800 experts in Transcendental Meditation and the TM-Sidhi Programme to practise the programme together twice a day in the Maharishi Golden Dome. Scientific research has established that 800 is the required number to create a significant influence of positivity and coherence in the collective consciousness of the entire UK.

The Dome has been running Transcendental Meditation retreats for 40 years and is estimated to have hosted over a million meditations. Apart from a small number in early 2020, no residential courses were held over the rest of the year due to COVID-19. In addition, the Dome was closed to members for 6 months of the year as it is classed as a community centre by the local authority and the management responded conservatively to lockdown restrictions and guidance. Fortunately, Dome members continued their regular monthly contributions and together with the HMRC job support for several furloughed employees, this allowed the Dome to end the year effectively breaking even operationally. It has also received benefit from various government COVID-related grants during 2020/21, which helped ensure that a planned comprehensive programme of refurbishment can continue.

In 2021, an innovative monthly programme of online courses began which allowed us to take all remaining employees out of furlough and generate a small profit. A full programme of courses is planned from Autumn 2021 onwards providing the COVID situation permits it.

Other properties owned by Maharishi Foundation

  1. Bournemouth Transcendental Meditation Centre (from 2010)

  2. 9 Garden Square, Rendlesham (2011)

SUBSIDIARY, ASSOCIATED & RELATED PARTIES

Subsidiary companies of Maharishi Foundation

Maharishi Education Centre Limited (MEC) Ayurveda Limited Maharishi Garden Village Limited Ideal Community Developments Limited (dormant) Maharishi Limited (dormant) Maharishi Foundation Limited (dormant)

Associated company of Maharishi Foundation

Fortune-Creating Homes Limited (dormant and now dissolved)

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Related Parties of Maharishi Foundation

By virtue of common Trustees or Directors and related objects and activities, Maharishi Foundation is connected to:

The Spiritual Regeneration Movement of Great Britain (Charity number 204025) David Lynch Foundation UK (Company number 07933959 and Charity number 1146643) Maharishi World Development Fund (Charity number 328738) Invincible Scotland Trust SCIO (Scottish Charity number SC013238) Maharishi School Trust Ltd (Charity number 517958) Maharishi International Graduate School (Company number 9023572 and Charity number 1178230)

Maharishi Ayurveda Institute (Charity number 800298)

Details of transactions and balances with these connected parties are given in note 31 to the financial statements.

POLICIES & OBJECTIVES

The objects of the Charity are to advance the education of the public by providing and assisting in the provision of training, meetings, classes and other learning opportunities; and to develop the physical, mental, creative and/or spiritual capacities of individuals and the public at large through the provision of, or assisting in the provision of, education and training, in particular in all aspects of Maharishi Vedic Science, including Transcendental Meditation and its advanced programmes, as founded by Maharishi Mahesh Yogi.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Investment policy

The Trustees have the power to invest unrestricted funds in such assets as they see fit in a prudent way that will attain good results with targeted returns.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Grant-making policy

The Trustees’ policy is to award grants to support activities that are in accordance both with the objects of the Charity and the intentions expressed by donors when making contributions.

Fund-raising

The Charity had several fund-raising activities during the year, but none requiring disclosure under S162A of the Charities Act 2011.

FINANCIAL STATEMENT AND RELATED POLICIES

Overall financial performance

Maharishi Foundation and its subsidiary entities, generated a deficit of £128,161 in 2020 (2019: surplus £881,793). There was a positive cashflow for the year of £119,886 as detailed in note 25 and on page 27. The results for the year reflect the difficult year Covid 19 has brought Maharishi Foundation’s subsidiaries which to a large extent were unable to carry out their normal activities due to social distancing restrictions and lockdowns.

Also note, during 2019 there were very substantial donations to the charity specifically to complete paydown of a commercial loan on the Maharishi Peace Palace.

One of the goals for 2020 was to improve on the teaching numbers achieved in 2019 by our online marketing initiatives. The year started extremely well with a 25-year record of numbers learning TM in January (over 400). However, with advent of Covid-19 restrictions in late March, teaching of TM effectively stopped for 3 months and for a further month during the second lockdown In November. Although two-thirds of our national staff were furloughed and substantial temporary cost savings achieved, the charity was forced to take advantage of an internal loan from one of our restricted funds of £33.2k which helped us maintain reduced operations and successfully scale up our teaching during the summer and into the autumn to around two-thirds of normal demand. After the announcement of the second lockdown, we launched general fundraising from supporters, which allowed us to continue to manage our costs and provide a reasonable contingency for the first quarter of 2021 – see next section.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

People taking courses in 2020:

Course 2020 2019 +/-
Transcendental Meditation 2194 3663 -40%
TM Advanced Techniques 94 118 -20%
TM-Sidhi Course 0 21 -100%
Residence Courseparticipant days 200 1803 -89%
InvincibilityAssembly participant days 501 2507 -80%

During 2020, the Charity and its trading subsidiaries benefitted from furlough grant claims and BBLS (Bounce Back Loan Scheme).

Donations

At the end of 2020, a national fundraising appeal for support due to the impact of COVIDrestrictions, successfully raised £55k. Of this £25k was specifically given by a small number of donors to support the employment of a marketing executive. This appointment was made in December 2020.

An interest-free donation of £20k to MEC was made by Maharishi Foundation early in 2020 based on a gift from a supporter.

An amount of £113,175 (2019: £112,526) was raised in donations to promote the unique education provided by Maharishi Vedic Pandit students.

The Charity continued to receive donations for its Purusha Fund and THMD Fund (see note 23). Donations received by both groups combined were £99,372 (2019: £100,327) and grants made were £46,866 (2019: £73,052).

Charitable Grants

The Charity made charitable grants during the year of £193,346 (2019: £94,161). Details are given in the financial statements.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Expenditure

Maharishi Foundation charity results suffered from an impairment of their investment in subsidiaries totalling £279,887 (2019: £134,000 gain). The investment In Ayurveda Ltd made over 15 years ago, has now been entirely written down as the company is to cease trading. Impairment of the investment in Maharishi Education Centre Limited is largely required due to the depreciation charge on the Peace Palace reducing the net asset position.

Going concern

Numbers learning Transcendental Meditation during 2020 decreased by 40% compared with 2019. Numbers taking our advanced programmes also reduced dramatically. Since around 90% of our income comes from instructions in Transcendental Meditation this has had a substantial impact on our finances. As reported in the section on 2020 financial performance, we were able to navigate through this with close attention to cost management and help from various sources.

Although the impact of Covid-19 continues to constrain demand, since July 2020 our Teachers have benefitted from the introduction of a smartphone App which partially reduces the need for personto-person tuition during the four-day instruction programme. while still imparting to students the same detailed guidance and advice. Together with a steady ramping up of marketing through the year, this has allowed us to now reach around 75% of normal teaching levels in a financially sustainable way. Provided the Covid situation doesn’t deteriorate, we expect that with heightened public interest in health and self-improvement, and the need for reduction in anxiety, we will benefit from a further increase in people wishing to learn TM during the autumn months as the strictures of lockdown fall away and summer holiday season recedes.

The Charity Is preparing an application for a Covid-support government-backed loan from our bank for new marketing initiatives identified in the strategy review completed in 2020 and by the temporary employment of an experienced marketing executive in the first quarter of 2021.

Based on the revised profit and cashflow forecasts, the Trustees have considered the financial position of the Charity and the group and are of the opinion that the group is able to meet its financial obligations as they fall due and will continue to operate for a period of at least 12 months from the date of the approval of this Annual Report and financial statements.

Reserves policy

Notes 23 and 26 show the assets and liabilities attributable to each fund and summarise the year's movement on each fund.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

At a Trustee meeting on 30 December 2015, the Trustees approved an unrestricted reserves policy target of £50,000. This policy carries forward into the current year. The unrestricted reserves of the Charity at 31 December 2020 were in surplus of £129,843 before an adjustment to impair the value of investments of £279,887 resulting in an overall deficit of £150,044 (2019: £90,091 surplus). £110,300 of the impairment related to Ayurveda Ltd and the writing off of the entire original investment made to the company.

Public Benefit statement

This statement complies with the duty in section 4 of the Charities Act 2011 to have due regard to Public Benefit guidance published by the Charity Commission. The Trustees have reviewed this guidance when reviewing our aims and objectives and in planning future activities. The Trustees consider how planned activities will contribute to the aims and objectives they have set.

Principal risks and uncertainties

The Trustees have a risk management strategy. This comprises an annual review of risks the Charity may face and the establishment of systems and procedures to mitigate those risks and the maintenance of a risk register.

Financial risk management objectives and policies

The Charity has been able to rely on largely consistent income from educational activities and donations from supporters over the years. This continues. However, major expansion activity has taken place during the past 5 years commencing with the construction of the Peace Palace at Rendlesham and continuing with the increased marketing effort to instruct many more people in TM starting in January 2018.

Annual budgets are produced for each key department. Starting from 2019, the Trustees now review these in the final quarter of each year. Generally, monthly budget reports are produced across the various key areas of the Charity and reviewed within each department. The key departments are: National/ Dome/ Peace Palace – each produce annual budgets, each of which is reviewed monthly.

Principal funding

About 90% of the operational funding of the Charity comes from the teaching of Transcendental Meditation. The substantial increases made in 2018 were sustained and moderately improved in 2019. Covid in 2020 caused a significant hiatus, while to date in 2021 we expect to finish at a slightly higher level for the year. Ancillary sources of course income, including new online offerings, have improved the situation.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The other main source of income is regular donations. These usually come into specific restricted funds which are used to support different projects. Each is discretely managed and very reasonable capital exists for the major ones. Modest improvements in these were achieved during the year.

STRUCTURE, GOVERNANCE & MANAGEMENT

Constitution

Maharishi Foundation is a Registered Charity, number 270157 (England and Wales), Charity number: SC041919 (Scotland). The governing document of the Charity is a trust deed, dated 29 August 1975, amended 7 July 2016.

Appointment of Trustees

New Trustees are recruited from supporters of the Charity who are well-known to the Custodian and the current Trustees. Trustees are also chosen with a view to ensure that England, Scotland and Wales are always represented. The Trust Deed stipulates that the number of Trustees must not be less than three or more than fifteen. The existing Trustees may appoint new Trustees by a resolution of a meeting of the Trustees. A memorandum of appointment shall be signed and sealed by the person presiding at the meeting and attested by two others present at the meeting.

All Trustees give their time voluntarily. Any expenses reclaimed from the Charity are set out in note 13 to the accounts.

Custodian

The trust deed of the charity provides for the appointment of a Custodian (the UK representative of Maharishi’s global organisation) who will have a duty to advise the trustees on any matter relating to the insight and knowledge of all aspects of Maharishi Vedic Science, including the standards required for accrediting teachers, in order to ensure the trustees are satisfied that the purity and full effectiveness of Maharishi Vedic Science is preserved. At present the Custodian is also the Chief Executive.

Decision-making policies

The Trustees devolved responsibility for National finances to the Budget Control Group which met at least monthly, and for digital marketing to the Marketing Group which met fortnightly with representatives of the GMG agency. In August 2020 the Budget Control Group was replaced by the Management Board, which met weekly initially, and then bi-weekly. Board members include the CEO and chairman. Monthly financial reports are forwarded to the Trustees.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Trustee induction and training

New Trustees receive training notes and undergo training sessions to brief them on their legal obligations under Charity law and introduce them to the Trust Deed, Charity organisation and management structure, the latest audited accounts and management accounts, tax law, employment law returns to be completed, GDPR compliance, the advisers and auditors of the Charity, current issues and future plans of the Charity.

Pay policy for key management personnel

As a Charity with a keen sense of mission and many long-term supporters, we rely heavily on a combination of affordable compensation and voluntary additional input over and above formal contractual arrangements. The setting of pay for key management personnel is decided by the Trustees. There are three key management staff who receive a salary with a combined 2020 annual pay of £56,762 (2019: six - £65,421).

Related party relationships

Trustees and principal officers complete a Declaration of Interests, Conflicts and Related Party Transactions each year. Some UK-based Trustees as well as the CEO and COO have director roles in various subsidiaries of Maharishi Foundation. None of these positions are remunerated. Occasionally there may be an external organisation which is also declared; the Trustees may then agree remuneration is in order on a case-by-case basis. A Conflict of Interest policy also helps ensure proper transparency and accountability.

Trustees' indemnities

The Trustees, directors and employees have a liability insurance policy which provides cover in relation to claims and investigations arising from breach of duty or trust, negligence, defamation and breach of warrant of authority. It also provides cover in relation to injury or property damage and misuse of data.

Post balance-sheet events

The advent of Coronavirus in February 2020 posed challenges to the Charity’s main source of revenue – teaching TM. Throughout 2020 on-and-off government-imposed restrictions limited the numbers able to learn TM.

As soon as the spread of Covid-19 became apparent, the Trustees began to investigate possible complementary revenue streams. They also established co-ordinated daily online group practice of Transcendental Meditation and its advanced programmes.

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

During the first lock-down period, the international arm of Maharishi Foundation, based in The Netherlands, designed and developed a learning course for TM, which required only one period of personal instruction rather then four. This was achieved with the use of a specially designed and restricted App and remote support from the Teacher. Virtually all active UKbased Teachers of TM have now been trained in the use of this App which promises to make the means of learning Transcendental Meditation more flexible, especially during the continuing Covid-19 pandemic.

During 2020, the Trustees expressed concern about the financial performance of Ayurveda Ltd. Discussions were held with management in an effort to understand whether or not performance could be improved. The directors have since made a number of staff redundancies and decided to wind down and ultimately close the company.

Plans for future periods

Commencing in February 2020 a comprehensive Strategy Review was commissioned by the Trustees. It was led by three of our most experienced TM Teachers, two of whom have a high level of corporate experience. They conducted a root and branch review of the organisation with a particular focus on our core activity of teaching Transcendental Meditation and followup programmes. Intensive engagement with many of our active Teachers via multiple workstreams identified over a dozen short term achievable benefits as well as immediate business improvement recommendations. Many of the short-term benefits have already been actioned and some are already giving significant benefit. The Trustees will shortly be asked to approve some of the more important prioritized recommendations, and this will be followed by writing a Strategic Plan to cover the development of the Charity over the next few years.

REFERENCE & ADMINISTRATIVE DETAILS OF THE CHARITY & TRUSTEES

Custodian of the Charity

Dr Peter Warburton

Trustees

Jemima Pitman, Trustee representing England Dr Ajay Prakash Shrivastava, International Trustee Graham Orr, Trustee representing Scotland, Chairman David Rae, Trustee representing Scotland, National Director for Scotland Gwyndaf Evans, Trustee representing Wales David Hughes, Trustee representing Wales

Charity registered number

270157 (England and Wales) Charity number: SC041919 (Scotland)

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MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Principal office Maharishi Peace Palace Rendlesham Woodbridge Suffolk IP12 2GX

Independent auditor

Scrutton Bland LLP Chartered Accountants Statutory Auditor Fitzroy House Crown Street Ipswich Suffolk IP1 3LG

Key management personnel

Dr Peter Warburton – Chief Executive Nigel Grace – Chief Operating Officer Norma Sullivan – Director of Transcendental Meditation Teaching Charles Cunningham – Director of Communication

Bankers

Barclays Bank plc, Paddock Wood and St Helens Lloyds TSB Bank plc, Skelmersdale and Wigan CAF Bank Limited, Kent Scottish Widows Bank, Edinburgh Monmouthshire Building Society, Newport, South Wales Virgin Money plc, Newcastle upon Tyne

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

Page 17

MAHARISHI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

The auditor, Scrutton Bland LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 29 October 2021 and signed on their behalf by:

Graham Orr

(Chair of Trustees)

Page 18

MAHARISHI FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHARISHI FOUNDATION

Opinion

We have audited the financial statements of Maharishi Foundation (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). he financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards.

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 Group's or the parent charity'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.

Page 19

MAHARISHI FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHARISHI FOUNDATION (CONTINUED)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. 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. 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 course of 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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 charity'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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 20

MAHARISHI FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHARISHI FOUNDATION (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and charity sector experience, through discussion with the trustees (as required by auditing standards), inspection of the charity's regulatory and legal correspondence and discussed with the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the charity complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of entries in the nominal ledger, including journal entries and the performance of analytical procedures to identify any unexpected movements in account balances which may be indicative of fraud.

. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAS (UK).

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 auditor's report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 21

MAHARISHI FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHARISHI FOUNDATION (CONTINUED)

Scrutton Bland LLP

Chartered Accountants Statutory Auditor Fitzroy House Crown Street Ipswich Suffolk IP1 3LG

29 October 2021

Scrutton Bland LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 22

MAHARISHI FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income from:
Donations and legacies
4
Charitable activities
Other trading activities
6
Investments
7
Total income
Expenditure on:
Cost of goods and activities to generate
funds
Charitable activities
9
Total expenditure
Net (expenditure)/income before net
losses on investments
Disposal of investment
Net (expenditure)/income
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
216,769
840,002
924,312
5,761
1,986,844
855,718
1,319,586
2,175,304
(188,460)
(110)
(188,570)
(26,463)
(215,033)
(30,732)
(215,033)
(245,765)		 Restricted
funds
2020
£
344,839
45,326
20,411
1,036
411,612
-
351,203
351,203
60,409
-
60,409
26,463
86,872
4,280,355
86,872
4,367,227		 Total
funds
2020
£
561,608
885,328
944,723
6,797
2,398,456
855,718
1,670,789
2,526,507
(128,051)
(110)
(128,161)
-
(128,161)
4,249,623
(128,161)
4,121,462		 Total
funds
2019
£
1,545,210
1,499,608
1,052,522
6,005
4,103,345
985,210
2,236,342
3,221,552
881,793
-
881,793
-
881,793
3,367,830
881,793
4,249,623

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 28 to 55 form part of these financial statements.

Page 23

MAHARISHI FOUNDATION

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors: amounts falling due after more than
one year
16
Debtors: amounts falling due within one year
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets / liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets		 93,026
25,000
94,178
-
668,629
880,833
(719,669)		 2020
£
5,332,088
10,291
5,342,379
161,164
5,503,543
(1,382,081)
4,121,462		 111,801
20,000
191,229
277,500
548,743
1,149,273
(1,209,719)		 2019
£
5,506,734
10,291
5,517,025
(60,446)
5,456,579
(1,206,956)
4,249,623

Page 24

MAHARISHI FOUNDATION

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2020

Note
Group funds
Restricted funds
21
Unrestricted funds
General funds
21
Total unrestricted funds
21
Total funds		 (245,765) 2020
£
4,367,227
(245,765)
4,121,462		 (30,732) 2019
£
4,280,355
(30,732)
4,249,623

The financial statements were approved and authorised for issue by the Trustees on 29 October 2021 and signed on their behalf by:

Graham Orr

(Chair of Trustees)

The notes on pages 28 to 55 form part of these financial statements.

Page 25

MAHARISHI FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors: amounts falling due after more than
one year
16
Debtors: amounts falling due within one year
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 -
2,625,376
49,810
-
411,973
3,087,159
(238,178)		 2020
£
861,823
842,081
1,703,904
2,848,981
4,552,885
(522,223)
4,030,662
4,180,706
(150,044)
4,030,662		 5,538
2,313,158
180,157
277,500
420,063
3,196,416
(474,237)		 2019
£
876,415
1,079,829
1,956,244
2,722,179
4,678,423
(427,153)
4,251,270
4,161,179
90,091
4,251,270

The financial statements were approved and authorised for issue by the Trustees on 29 October 2021 and signed on their behalf by:

Graham Orr

(Chair of Trustees)

The notes on pages 28 to 55 form part of these financial statements.

Page 26

MAHARISHI FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Cash flows from operating activities
Net cash generated from operating activities (note 25)
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
New loans
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Interest paid
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2020
£
28,293
6,797
(9,044)
277,500
242,764
518,017
(369,645)
(56,779)
(426,424)
119,886
548,743
668,629		 2019
£
251,341
6,005
(21,016)
-
-
(15,011)
(715,690)
(62,797)
(778,487)
(542,157)
1,090,900
548,743

The notes on pages 28 to 55 form part of these financial statements

Page 27

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

Maharishi Foundation is a charity registered in England and Wales (270157) and in Scotland (SC041919. The registered office is 6 Gardenia Close, Rendlesham, IP12 2GX.

2. Accounting policies

2.1 Basis of preparation of 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Maharishi 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.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiary companies are consolidated on a line by line basis. Subsidiaries which have been excluded from the consolidation due to being immaterial are:

Fortune Creating Homes Limited (Struck off during year) Maharishi Foundation Limited (Dormant) Maharishi Limited (Dormant)

The Charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

A summary of the principal accounting policies, which have been applied consistently, is set out below:

2.2 Going concern

The financial statements are drawn up on a going concern basis.

The charity and it’s subsidiary companies have operated in a socially distanced manner since March 2020 to date. Courses have been successfully delivered on line during this period. It is anticipated that courses will resume in person shortly and forecasts for the next 12 months are based on this assumption. These forecasts indicate that the charity and its' subsidiary companies have sufficient resources to continue in operation for the next 12 months. Accordingly, the trustees have drawn up the financial statements on a going concern basis.

The directors of Ayurveda Limited have decided to wind down and ultimately close the company. There are sufficient funds available to the company to enable this to be undertaken.

At the year end the charity had negative unrestricted reserves. It has been able to borrow funds from some long term restricted funds and this will remain the case until the unrestricted funds recover to an appropriate level.

Page 28

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.3 Income

Course fees

Income from course fees for teaching the Transcendental Meditation and TM-Sidhi Programmes and other courses is recognised by reference to the course date.

Incoming resources

Other incoming resources such as voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the charity is considered probable.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the consolidated statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit or on loans is included when receivable and the amount can be measured reliably by the group. Where loans are interest free as the donors have requested funds are made available for specific causes, the loan is discounted and notional interest is calculated and accounted for.

2.7 Grants

The Trustees' policy is to award grants that support activities that are in accord with the objects of the Charity and restrictions imposed by the donors of the funds.

Page 29

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.8 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the 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 of the 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.

2.9 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Freehold property - 2% Plant and machinery - Between 20 and 50% Fixtures and fittings - Between 20% and 50% Leasehold rooms - Over the period of the lease

2.10 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Current asset investments are shown as the value gifted.

2.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs.

2.12 Debtors

Trade and other debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount prepaid.

2.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 30

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.14 Liabilities and provisions

Liabilities 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.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost.

2.15 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.16 Pensions

The Charity and its subsidiaries operate a defined contribution pension plan for its employees. A defined contribution pension plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 31

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Designated funds. The Trustees have a policy of donating a percentage of course fees received to support the tradition from which the teaching of Transcendental Meditation and its related techniques come.

2.18 Allocation of costs

Direct charitable costs are costs incurred in fulfilling the charitable objectives of the Charity.

Support costs of charitable activities include central management and administration costs, incurred directly in support of expenditure on the objects of the Charity. These costs are considered as part of total expenditure relating to the objects of the Charity.

Governance costs include costs incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

Costs of generating funds included costs incurred in order to raise income to support the activities of the Charity and its subsidiary companies.

Page 32

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Critical accounting estimates and areas of judgment

In the application of the accounting policies, Trustees are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revisions affected current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are summarised below:

The Peace Palace is included in the financial statements at original cost. An impairment review has been undertaken comparing original cost to value in use. Based on occupancy in 2019 a discounted future cashflow model supports the cost value included in the financial statements and no impairment is deemed necessary.

Fixed assets, including property, are depreciated to net residual value. In most cases this is nil. In the case of two properties that can or are used as residential properties, net residual value is considered to be higher than cost and on this basis no depreciation is charged.

The investment in Maharishi Education Centre Limited is reduced to the net asset value shown by the entity accounts at their year end.

The investment in Ayurveda Limited has been reduced to £Nil due to the possibility that the company may not continue in operational existence.

The investment by the charity in Maharishi Education Centre Limited is impaired so that it does not exceed the net assets of the subsidiary company. The impairment largely represents the annual depreciation charge on the Peace Palace.

Page 33

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. Income from donations and legacies

Unrestricted
funds
2020
£
Donations
216,769
Unrestricted
funds
2019
£
Donations
853,907		 Restricted
funds
2020
£
344,839
Restricted
funds
2019
£
691,303		 Total
funds
2020
£
561,608
Total
funds
2019
£
1,545,210

5. Income from charitable activities

Unrestricted
funds
2020
£
Transcendental Meditation
807,896
Other courses
32,106
840,002
Unrestricted
funds
2019
£
Course fees
Transcendental Meditation
1,286,544
Other courses
64,471
1,351,015		 Restricted
funds
2020
£
-
45,326
45,326
Restricted
funds
2019
£
-
148,593
148,593		 Total
funds
2020
£
807,896
77,432
885,328
Total
funds
2019
£
1,286,544
213,064
1,499,608

Page 34

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Income from other trading activities

Unrestricted
funds
2020
£
Income from non charitable trading activities
Other trading income from subsidiary undertakings
243,803
Sale of Ayurveda products
676,588
Consultations and courses
-
Rental income and room hire
-
Sale of TM News magazine
3,921
924,312
Unrestricted
funds
2019
£
Income from non charitable trading activities
Other trading income from subsidiary undertakings
398,016
Sale of Ayurveda products
617,586
Consultations and courses
150
Rental income and room hire
3,203
Sale of TM News magazine
4,032
1,022,987		 Restricted
funds
2020
£
5,461
-
9,986
4,964
-
20,411
Restricted
funds
2019
£
5,848
-
13,863
9,824
-
29,535		 Total
funds
2020
£
249,264
676,588
9,986
4,964
3,921
944,723
Total
funds
2019
£
403,864
617,586
14,013
13,027
4,032
1,052,522

Page 35

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Investment income

Unrestricted
funds
2020
£
Investment income on bank deposits
121
Other investment income
5,640
5,761
Unrestricted
funds
2019
£
Investment income from bank deposits
248
Other Investment income
4,918
5,166		 Restricted
funds
2020
£
1,036
-
1,036
Restricted
funds
2019
£
839
-
839		 Total
funds
2020
£
1,157
5,640
6,797
Total
funds
2019
£
1,087
4,918
6,005

Page 36

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Analysis of grants

Unrestricted
funds
2020
£
Grants payable group and charity
National admin grants and sponsorship (2020: 6 grants)
73,146
Woolcombe grant (2020: 1 grant)
-
THMD programme grants (2020: 11 grants)
-
Purusha programme grants (2020: 4 grants)
-
Vedic Pandits fund grants (2020: 5 grants)
-
73,146
Unrestricted
funds
2019
£
Grants payable group and charity
National admin grants (2019: 9 grants)
21,109
THMD programme grants (2019: 11 grants)
-
Purusha programme grants (2019: 7 grants)
-
21,109		 Restricted
funds
2020
£
8,300
15,000
30,860
16,006
50,034
120,200
Restricted
funds
2019
£
-
26,005
47,047
73,052		 Total
funds
2020
£
81,446
15,000
30,860
16,006
50,034
193,346
Total
funds
2019
£
21,109
26,005
47,047
94,161

Page 37

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Analysis of expenditure by activities

Direct costs - Charitable Activities
Direct costs - Charitable Activities		 Activities
undertaken
directly
2020
£
701,521
Activities
undertaken
directly
2019
£
1,257,799		 Grant
funding of
activities
2020
£
193,346
Grant
funding of
activities
2019
£
94,161		 Support
costs
2020
£
775,922
Support
costs
2019
£
884,382		 Total
funds
2020
£
1,670,789
Total
funds
2019
£
2,236,342

Analysis of direct costs

Teachers Remuneration
Course administration, promotion and advertising		 Total
funds
2020
£
452,212
249,309
701,521		 Total
funds
2019
£
666,830
590,969
1,257,799

Page 38

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff
Depreciation
Premises
Management
Finance and IT
Legal
Staff costs
Depreciation
Premises
Management
Finance and IT
Legal
10.
Auditor's remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above		 Activities
2020
£
547,269
15,790
47,963
65,545
61,275
38,080
775,922
Activities
2019
£
573,469
32,100
96,177
73,562
67,993
41,081
884,382
2020
£
16,560
28,149		 Total
funds
2020
£
547,269
15,790
47,963
65,545
61,275
38,080
775,922
Total
funds
2019
£
573,469
32,100
96,177
73,562
67,993
41,081
884,382
2019
£
13,500
35,851

Page 39

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes
Ex gratia termination payment		 Group
2020
£
503,173
7,897
8,199
28,000
547,269		 Group
2019
£
554,800
8,909
9,760
-
573,469		 Charity
2020
£
238,279
7,897
2,752
28,000
276,928		 Charity
2019
£
271,794
7,671
3,968
-
283,433

An ex gratia termination payment was made during 2020 to one employee.

The average number of persons employed by the Charity during the year was as follows:

General Fund (Full time)
MEC Limited (Full time)
General Fund (Part time)
Golden Dome (Part time)
Ayurveda Limited (Part time)		 Group
2020
No.
5
9
6
9
14
43		 Group
2019
No.
7
9
6
14
14
50		 Charity
2020
No.
5
-
6
9
-
20		 Charity
2019
No.
7
-
6
14
-
27

No employee received remuneration amounting to more than £60,000 in either year.

Total remuneration paid to key management personnel: £56,762 (2019: £65,421).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 December 2020, expenses totalling £0 were reimbursed or paid directly to Trustees (2019 - £0 to Trustees).

Page 40

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Tangible fixed assets

Group

Cost or valuation
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Land &
buildings
£
5,904,230
-
-
5,904,230
738,120
94,759
-
832,879
5,071,351
5,166,110		 Plant and
machinery
£
812,509
1,856
-
814,365
483,591
81,713
-
565,304
249,061
328,918		 Fixtures and
fittings
£
21,756
-
-
21,756
16,596
1,288
-
17,884
3,872
5,160		 Office
equipment
£
171,622
7,188
(3,697)
175,113
165,076
5,930
(3,697)
167,309
7,804
6,546		 Total
£
6,910,117
9,044
(3,697)
6,915,464
1,403,383
183,690
(3,697)
1,583,376
5,332,088
5,506,734

Page 41

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Land &
buildings
£
1,350,534
-
-
1,350,534
481,501
16,590
-
498,091
852,443
869,033		 Fixtures and
fittings
£
18,331
-
-
18,331
13,192
1,267
-
14,459
3,872
5,139		 Office
equipment
£
21,709
6,406
(1,390)
26,725
19,466
3,141
(1,390)
21,217
5,508
2,243		 Total
£
1,390,574
6,406
(1,390)
1,395,590
514,159
20,998
(1,390)
533,767
861,823
876,415

Page 42

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Fixed asset investments

Group
Cost or valuation
At 1 January 2020
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
Charity
Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Impairment
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Investments
in
subsidiary
companies
£
291
291
291
291
Investments
in
subsidiary
companies
£
2,055,829
42,139
2,097,968
986,000
279,887
1,265,887
832,081
1,069,829		 Unlisted
investments
£
10,000
10,000
10,000
10,000
Unlisted
investments
£
10,000
-
10,000
-
-
-
10,000
10,000		 Total
£
10,291
10,291
10,291
10,291
Total
£
2,065,829
42,139
2,107,968
986,000
279,887
1,265,887
842,081
1,079,829

Page 43

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Principal subsidiaries

As at 31 December 2020 the following were subsidiary undertakings of the Charity:

Names Company Class of Holding
number shares
Ayurveda Limited 02167993 Ordinary 99%
Maharishi Education Centre Limited 03362427 Ordinary 100%
Maharishi Garden Village Limited 05322967 Ordinary 75%
Maharishi Foundation Limited 03034864 No share 100%
capital
Maharishi Limited 5121468 Ordinary 100%

Page 44

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Fixed asset investments (continued)

The financial results of the subsidiaries for the year were:

Names
Income
£
Expenditure
£
Profit/(Loss)
/ Surplus/
(Deficit) for
the year
£
Ayurveda Limited
677,158
704,650
(27,492)
Maharishi Education Centre Limited
332,237
457,685
(125,448)
Maharishi Garden Village Limited
14,010
23,388
(9,378)
Maharishi Limited
-
-
-
15.
Stocks
Group
Group
Charity
2020
2019
2020
£
£
£
Goods for resale
93,026
111,801
-
16.
Debtors
Group
Group
Charity
2020
2019
2020
£
£
£
Due after more than one year
Amounts owed by group undertakings
-
-
2,600,376
Other debtors
25,000
20,000
25,000
25,000
20,000
2,625,376
Group
Group
Charity
2020
2019
2020
£
£
£
Due within one year
Trade debtors
41,301
30,917
24,064
Amounts owed by group undertakings
-
-
-
Other debtors
34,784
28,071
14,817
Prepayments and accrued income
10,500
124,451
3,336
Tax recoverable
7,593
7,790
7,593
94,178
191,229
49,810		 Net assets
£
79,044
831,790
23,212
100
Charity
2019
£
5,538
Charity
2019
£
2,293,158
20,000
2,313,158
Charity
2019
£
12,013
36,690
9,600
114,064
7,790
180,157

Page 45

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

17. Current asset investments

Group Group Charity Charity
2020 2019 2020 2019
£ £ £ £
Property - 277,500 - 277,500

18. Creditors: Amounts falling due within one year

Bank loans
Other loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2020
£
10,628
389,901
109,760
-
26,667
93,091
89,622
719,669		 Group
2019
£
377,640
350,551
170,088
-
16,387
67,864
227,189
1,209,719		 Charity
2020
£
8,280
130,514
30,498
779
2,066
23,687
42,354
238,178		 Charity
2019
£
137,640
92,721
54,133
779
1,789
3,245
183,930
474,237

19. Creditors: Amounts falling due after more than one year

Bank loans
Other loans
Accruals and deferred income		 Group
2020
£
256,392
1,125,689
-
1,382,081		 Group
2019
£
163,033
1,018,267
25,656
1,206,956		 Charity
2020
£
158,740
363,483
-
522,223		 Charity
2019
£
163,033
264,120
-
427,153

20. Secured creditors

Group bank loans are secured by a legal charge over land and buildings. Included in Group other loans is an amount of £189,898 (2019: £184,035) which is also secured by a legal charge over land and buildings.

Page 46

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Statement of funds

Statement of funds - current year Income
£
1,986,844
-
1,986,844
104
130,582
113,175
39,191
60,181
603
16
61,238
5,663
859
-
-
-
-
411,612
2,398,456		 Expenditure
£
(2,175,304)
-
(2,175,304)
(54)
(181,968)
(65,869)
(16,704)
(45,997)
(8,900)
-
(10,945)
(5,295)
(257)
(74)
(15,020)
(60)
(60)
(351,203)
(2,526,507)		 Transfers
in/out
£
(26,463)
-
(26,463)
-
22,583
-
-
3,880
-
-
-
-
-
-
-
-
-
26,463
-		 Gains/
(Losses)
£
(110)
-
(110)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(110)		 Balance at 31
December
2020
£
(246,592)
827
(245,765)
31,283
295,503
101,559
64,581
102,386
420,461
47,927
2,920,772
185,180
788
3,780
11,542
(377)
181,842
4,367,227
4,121,462
Unrestricted funds
General funds
Designated funds
Restricted funds
General restricted
fund
Golden Dome fund
Vedic Pandits fund
Purusha fund
THMD
National Coherence
project
Lesley Woolley
Legacy
Maharishi Peace
palace (Suffolk)
Bournemouth TM
Centre
Invincibility Schools
fund
Ladies Peace
Palace
Woollecombe fund
Global Mother
Divine Organisation
Oxford
Total of funds		 Balance at 1
January
2020
£
(31,559)
827
(30,732)
31,233
324,306
54,253
42,094
84,322
428,758
47,911
2,870,479
184,812
186
3,854
26,562
(317)
181,902
4,280,355
4,249,623

Page 47

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Designated funds
Restricted funds
General restricted fund
Golden Dome fund
Vedic Pandits fund
Purusha fund
THMD
National Coherence project
Lesley Woolley Legacy
Maharishi Peace palace
(Suffolk)
Bournemouth TM Centre
Invincibility Schools fund
Ladies Peace Palace
Woollecombe fund
Global Mother Divine
Organisation
Oxford
Friends and Euro grant fund
Total of funds		 Balance at
1 January
2019
£
(513,923)
301
(513,622)
31,307
279,648
(51,941)
42,186
86,726
435,658
47,500
2,587,703
186,776
(482)
3,942
44,783
789
186,857
-
3,881,452
3,367,830		 Income
£
3,233,075
-
3,233,075
-
228,582
112,526
40,009
60,318
-
198
359,338
9,044
914
-
-
200
-
59,141
870,270
4,103,345		 Expenditure
£
(2,683,367)
-
(2,683,367)
(74)
(250,139)
(17,590)
(47,751)
(64,422)
(6,900)
-
(76,562)
(11,008)
(246)
(88)
-
(1,306)
(54)
(62,045)
(538,185)
(3,221,552)		 Transfers
in/out
£
(67,344)
526
(66,818)
-
66,215
11,258
7,650
1,700
-
213
-
-
-
-
(18,221)
-
(4,901)
2,904
66,818
-		 Balance at
31
December
2019
£
(31,559)
827
(30,732)
31,233
324,306
54,253
42,094
84,322
428,758
47,911
2,870,479
184,812
186
3,854
26,562
(317)
181,902
-
4,280,355
4,249,623

Page 48

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Description of funds

a) Unrestricted funds

i) General Fund

The General Fund includes all of the unrestricted funds of the Charity. These include the National Offices in Skelmersdale and Rendlesham, which deal with the administration of courses and the finances and accounts of the Charity, expansion and media activities, administration of Maharishi Open University in the UK, and the publication “Transcendental Meditation News” magazine.

b) Restricted funds

i) General Restricted Fund

This fund contains investments and some cash. Investment of funds and grants awarded from this fund are made at the recommendation of the donors of the funds, within the objects of Maharishi Foundation, and with the approval of the Trustees.

ii) Golden Dome Fund

A special fund, ‘The Golden Dome Fund’, was established in February 1983 to finance a project to build a Golden Dome that would accommodate a group of 800 practitioners of the Transcendental Meditation and TMSidhi Programme. This number is the square root of one per cent of the population of Great Britain – the number required to produce the Maharishi Effect.

This facility, Golden Dome in Skelmersdale, is used, for educational courses and group practice of Transcendental Meditation and the TM-Sidhi Programme by local residents and visitors to the facility.

iii) Vedic Pandits Fund

This fund was established in 2001 to support the setting up and maintenance of groups of Maharishi Vedic Pandits from India. The purpose of these groups is to practise different aspects of Maharishi's Vedic Science in order to develop higher states of consciousness and spread an influence of peace and harmony throughout the world.

iv) Purusha and THMD

The Purusha and THMD restricted funds were set up to promote courses to develop the mental and creative potential of the individual. The Purusha fund supports courses for men and the THMD fund supports courses for ladies.

v) National Coherence Project

This is a restricted fund set up with the aim of raising funds to support a permanent group of people practising the Transcendental Meditation and TM-Sidhi Programme to create coherence in national consciousness through the Maharishi Effect.

vi) Lesley Woolley Legacy

The Charity was left a legacy by Lesley Woolley, who died in August 2001. The Trustees want to honour the wishes of Lesley Woolley as closely as possible and are currently developing new projects where her legacy can be applied in a manner that will fulfil her intentions as expressed in her Will

.

Page 49

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

vii) Maharishi Peace Palace (Suffolk) Fund

In September 2007 the Trustees passed a resolution to establish the Maharishi Peace Palace (Suffolk) Fund to fund the construction and maintenance of an educational facility in Suffolk. The Peace Palace is being used to provide educational courses and a venue for group practice of Transcendental Meditation and the TM- Sidhi programme.

viii) Bournemouth TM Centre

In 2010 a property was purchased in Bournemouth to be used for a Transcendental Meditation Teaching Centre. The purchase price was largely funded from a grant.

ix) Maharishi Invincibility Schools Fund

The Maharishi Invincibility Schools Fund, funds the promotion and introduction of Consciousness-Based Education (CBE) in existing schools and colleges, including costs of faculty training and provision of CBE courses and study facilities for students and teachers. The fund will also be used to fund the development of new schools and colleges built according to the principles of Maharishi Sthapatya Veda, to provide scholarships to assist students and teachers to learn Transcendental Meditation and related Advanced Techniques, and to provide scholarships to students who may require help to pay tuition fees and other school or college fees in the context of CBE.

x) Ladies Peace Palace Fund

The Fund was set up to raise funds to establish an educational facility for ladies to be known as a Ladies Peace Palace, with similar objectives to the facility being developed in Suffolk.

xi) Global Mother Divine Organisation

The Global Mother Divine Organisation (GMDO) is as a separate division of Maharishi Foundation which serves and nourishes the ladies and girls of the UK and the world through Total Knowledge. The GMDO division of Maharishi Foundation includes five educational departments – see page 3.

xii) Oxford

The Oxford fund is a special fund set up for a Transcendental Meditation centre for Oxford to be established. The aim is for any building acquired for teaching purposes to be named after the donor’s mother Edith Saunders who passed away in the mid 1990s.

xiii) Woollecombe fund

A gift from the estate of Graham Woollcombe's mother used for occasional training and eductional grants

Page 50

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

23. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
January
2020
£
(30,732)
4,280,355
4,249,623		 Income
£
1,986,844
411,612
2,398,456		 Expenditure
£
(2,175,304)
(351,203)
(2,526,507)		 Transfers
in/out
£
(26,463)
26,463
-		 Gains/
(Losses)
£
(110)
-
(110)		 Balance at
31
December
2020
£
(245,765)
4,367,227
4,121,462

Transfer has been made to reflect amounts received under Job Retention Scheme, claimed against Golden Dome wages paid.

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 January
2019
£
(513,622)
3,881,452
3,367,830		 Income
£
3,233,075
870,270
4,103,345		 Expenditure
£
(2,683,367)
(538,185)
(3,221,552)		 Transfers
in/out
£
(66,818)
66,818
-		 Balance at
31
December
2019
£
(30,732)
4,280,355
4,249,623

Transfers were made between unrestricted and Golden Dome fund to correct expenditure incorrectly allocated in prior years.

Page 51

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

24. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
4,871,050
Fixed asset investments
291
Debtors due after more than one year
-
Current assets
(3,529,321)
Creditors due within one year
(569,187)
Creditors due in more than one year
(1,018,598)
Total
(245,765)
Analysis of net assets between funds - prior period
Unrestricted
funds
2019
£
Tangible fixed assets
5,033,599
Fixed asset investments
291
Debtors due after more than one year
-
Current assets
(3,380,893)
Creditors due within one year
(903,926)
Creditors due in more than one year
(779,803)
Total
(30,732)		 Restricted
funds
2020
£
461,038
10,000
25,000
4,385,154
(150,482)
(363,483)
4,367,227
Restricted
funds
2019
£
473,135
10,000
20,000
4,510,166
(305,793)
(427,153)
4,280,355		 Total
funds
2020
£
5,332,088
10,291
25,000
855,833
(719,669)
(1,382,081)
4,121,462
Total
funds
2019
£
5,506,734
10,291
20,000
1,129,273
(1,209,719)
(1,206,956)
4,249,623

Page 52

MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement
Activities)
Adjustments for:
Depreciation charges
Gift of investment property
Dividends, interests and rents from investments
Decrease/(increase) in stocks
Decrease in debtors
Decrease in creditors
Interest payable
Net cash provided by operating activities
26.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
27.
Analysis of changes in net debt
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 of Financial
At 1
January
2020
£
548,743
(728,191)
(1,181,300)
(1,360,748)		 Group
2020
£
(128,161)
183,690
-
(6,797)
18,775
91,271
(187,264)
56,779
28,293
Group
2020
£
668,629
668,629
Cash flows
£
119,886
327,662
(200,781)
246,767		 Group
2019
£
881,793
227,893
(277,500)
(6,005)
(15,288)
122,081
(744,430)
62,797
251,341
Group
2019
£
548,743
548,743
At 31
December
2020
£
668,629
(400,529)
(1,382,081)
(1,113,981)

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MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

28. Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £8,199 (2019 - £9,760). £Nil (2019: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

29. Related party transactions

By virtue of at least one common Trustee and certain related objects and articles, Maharishi Foundation is connected to the following parties:

a) Spiritual Regeneration Movement of Great Britain

SRM made a loan of £155,000 to Maharishi Foundation in 2010 in order to help it purchase a building to be used as an administrative centre for the Charity in Rendlesham, Suffolk. An additional £5,000 was added to the loan by SRM in 2012. The loan carries a first charge over the property and accrues interest of 3% above bank base rate. The loan is a long-term loan and the loan plus accrued interest is not repayable until the property is sold or until the Trustees of Maharishi Foundation decide to make repayment at their discretion. Interest accrued in 2020 was £5,863 (2019 - £5,281).

b) David Lynch Foundation UK

In 2020 Maharishi Foundation paid £1,300 (2019 - £7,000) to David Lynch Foundation UK to support its promotional activities that resulted in many people taking courses offered by Maharishi Foundation.

c) Invincible Scotland Trust SCIO

In 2020 Maharishi Foundation paid standard commission on teaching fees of £35,965 to Invincible Scotland Trust (2019 - £63,547). An amount of £1,600 (2019 - £2,200) was received as a contribution towards marketing costs.

d) Maharishi International Graduate School

In 2017 Maharishi Foundation made a loan of £8,300 from the National Coherence Project restricted fund to Maharishi Graduate School at an interest rate of 2% above base rate which was written off in 2020 as a donation paid and is included within direct costs.

e) Peace Palace donations

J Pitman, a trustee, provided donations of £Nil to the Peace Palace during 2020. (2019 - £98,988) Maharishi World Development Fund provided donations of £20,000 to the Peace Palace during 2020. (2019 - £Nil)

f) Peace Palace membership

A number of the Trustees are members of the Peace Palace. Memberships have been purchased at normal commercial terms.

g) Close family remuneration

During the year an amount of £12,360 was paid as remuneration to L Warburton.

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MAHARISHI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

30. Post balance sheet events

During 2021 the directors of Ayurveda Limited decided to wind down and ultimately close the company.

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