**Charity Registration No. 278481**
## **SRI SATHYA SAI CHARITABLE TRUST UK**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022**
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Dr Venkata Mudigonda||
|---|---|---|
||Dr Kirankumar Patel||
||Mr Anil Gadhia, BA (Econ), FCA||
||Mr Khushal Jethwani|(Appointed 24 April 2022)|
||Ms S Gunasegaram|(Appointed 10 November 2022)|
|**Chairman**|Dr Venkata Mudigonda||
|**Secretary**|Dr Kirankumar Patel||
|**Treasurer**|Mr Anil Gadhia, BA (Econ), FCA||
|**Charity number**|278481||
|**Principal address**|125 Wood Street||
||London||
||EC2V 7AW||
|**Independent examiner**|Yashlal P Hindocha, BA, FCA||
||Hindocha & Co Limited||
||Chartered Accountants and Statutory|Auditors|
||34 Queensbury Station Parade||
||Edgware||
||Middlesex||
||HA8 5NN||
|**Bankers**|Barclays Bank Plc||
||Leicester||
||LE87 2BB||
||Bank of Baroda||
||32 City Road||
||London, EC1Y 2BD||
|**Solicitors**|Penningtons Manches LLP||
||125 Wood Street||
||London, EC2V 7AW||
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Statement of financial position|8|
|Notes to the financial statements|9 - 21|
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **TRUSTEES REPORT**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
The Trustees present their annual report and financial statements for the year ended 30 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's Deed, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The charity's objects and principal activities are set out in the Trust declaration in 1979 and Deed of variation dated 4 May 2018 i.e. "The Trustees shall stand possessed of the Trust fund upon trust for the charitable purposes as they shall in their absolute discretion think fit and in particular for the advancement of education and for the relief of poverty and sickness." The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year. There has been no change in these during the year.
The Trust provides grants in the UK as well as to other less affluent countries. In addition, it promotes human values and other spiritual programmes for children and adults in order to expand their consciousness and serve their local communities and contribute towards nation building in the UK.
## **Activities to achieve the objectives for public benefit** :
- Advancement of Education - within the UK there is greater emphasis on education to improve moral standards by spreading human values of peace, truth, non-violence, right conduct and love. Overseas schools are supported by helping with infrastructure, providing academic and value based education.
- Relief of Poverty, particularly following natural disasters through food and nutrition grants and supporting Food Banks in the UK.
- Relief of Sickness - the Trust seeks to relieve physical and mental suffering in the world by
- financially supporting medical camps held by expert medical teams in remote parts of the world, providing grants for medical equipment, heart valves and alleviation of sickness.
These generally happen through voluntary donations to the Trust. The Trust then makes selective donations that accord with its aims and those of the donors if specified. There were no public appeals - all donations were made on a strictly voluntary basis. There are a number of restricted fund accounts maintained together with the premium reserve account and other current accounts which are unrestricted.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.
## **Grant making policy and monitoring achievement**
The Trust has adopted a standard form for grant applicants to complete. This outlines the benefits of the proposed activity. The Trust also seeks a feedback report on the activity to confirm it was carried out and what benefits were derived. This process facilitates the discussion of grant making within the Trust meetings. There are less than ten requests for grants per year so generally each one is debated in a Trust meeting. The Trust does not borrow money and therefore will only make grants if it has the assets to do so. Funds received for specific purposes are utilised for specific projects. The Trust reviews its achievements and performance within its Trust meetings.
Apart from the above, the operational area of the Trust is to operate the bookshop through the subsidiary undertaking which supports the charity's aims by promoting educational and spiritual literature. The operational decisions are made by the bookshop management team or directors of the subsidiary company and significant reports made to the trustees.
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## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **Achievements and performance How our grant programmes deliver public benefit:**
The charity Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
The number of patients seen at a medical camp is a measure of the outcome of the activity. Similarly the attendance at spiritual or educational events that the Trust has supported is seen as useful feedback for the Trust.
## **Financial review**
Funds received for specific purposes are utilised for specific projects.
It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The principal sources of income were voluntary donations to the Trust. Expenditure has been entirely aligned to the three objectives of the Trust.
During the year the Trust received donations of £222,580 (2021 - £158,359) and investment and other income of £12,396 (2021 - £24,644).
During the year the Trust made donations of £232,421 (2021 - £143,233) and these are detailed on page 16 of these financial statements.
Of the above, donations to Sri Sathya Sai Central Trust were £117,811 (2021 - £58,275) for its Covid support work and excellent work in the medical field.
The UK Trust also supports Sri Sathya Sai Organisation United Kingdom to further its spiritual and humanitarian activities in the UK and during the year contributed £3,017 (2021 - £nil) to the Organisation.
The Trustees have assessed the major risks to which the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Principal risks and uncertainities**
The Trust has a very conservative, risk free approach on investments and hence the funds are kept in current accounts and one business premium account earning higher interest. It holds no shares. The Trust has debated whether to become limited by guarantee. It sought the guidance of legal and financial professionals in ensuring it made the best decision and this is currently under review. There is Trustee indemnity insurance in place. There is no mortgage or other loan on the property owned by the Trust, (Hay Lane bookshop) with appropriate insurance in place for the building.
The major risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to manage those risks. Advice is regularly taken from the solicitor and the insurance adviser.
- 2 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **Plans for the future**
The Trust continues to support a diverse range of applications for grant that meet the Trust objectives such as disaster relief, medical, educational and relief of hunger needs in the UK, Nepal, Sri Lanka, India and Haiti.
On 24th April 2011, the Founder of the Trust, Sri Sathya Sai Baba passed away in India. Since his demise, the activities worldwide, including in the UK, have increased in promoting his message of "Love All Serve All" - through many services, spiritual and educational activities.
The Trust is actively looking for a site or a suitable building with grounds in a central UK location to further spread Sai Baba's message of "Love All Serve All". It is anticipated the building will incoporate a multipurpose community hall, a museum, a library and bookshop and provide ample parking with excellent public transport links.
Covid-19 Pandemic continues with a significant number of cases. For impact on our trust please refer to post balance sheet event note 17.
## **Structure, governance and management**
The Trust is a registered charity, number 278481, and is constituted under a Trust Deed dated 15th June 1979 and Deed of variation dated 4 May 2018 which is the governing document. This established the Sri Sathya Sai World Foundation U.K. but the Trust changed its name on 25th May 1999 to Sri Sathya Sai Charitable Trust UK.
The charity shares a similar name to a number of other charities around the world as were inspired by Sri Sathya Sai Baba, a spiritual leader in India. In the UK, the Trust works closely with Sri Sathya Sai Organisation United Kingdom, but there is no direct legal connection between the organisations. The Trust receives requests for grants from the UK Organisation and other organisations with similar objects and consideration is given to each request on merits of aims and objectives.
The Charity has a wholly owned subsidiary Sri Sathya Sai Books (UK) Limited which is incorporated in the UK. The principal activity of the subsidiary during the year was that of selling books, audios, DVDs and video cassettes. The subsidiary supports the charity aims by promoting educational and spiritual literature. It covenants its surplus / deficit to Sri Sathya Sai Charitable Trust UK.
Sri Sathya Sai Books (UK) Limited is run entirely by unpaid volunteers.
The Trustees who served during the year and up to the date of signature of the financial statements were: Dr Venkata Mudigonda Dr Kirankumar Patel
Mr Tarun Chudasama (Resigned 28 November 2021) Ms Petra von Kalinowski (Retired 22 August 2022) Mr Anil Gadhia, BA (Econ), FCA Mr Khushal Jethwani (Appointed 24 April 2022) Mr Mel Griffin (Resigned 3 May 2021) Mr Phillip D' Costa (Resigned 3 May 2021) Ms S Gunasegaram (Appointed 10 November 2022)
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## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **TRUSTEES REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
New Trustees are appointed by the Trustees after receiving nominations. Invitation is by letter asking Trustees to serve for a fixed term. After this period, they may offer themselves for re-appointment. The practical requirement for the selection of new Trustees is that they have considerable experience in some or all the areas of:
(i) education (ii) medical (iii) financial skills (iii) legal.
There is no external appointment of Trustees. On appointment, new Trustees sign a model Trustee declaration statement committing them to give their time and expertise.
There is no formal requirement for training of Trustees as the new Trustees would be well known to most of the Trustees generally due to previous attendance at Trust meetings as observers before appointment.
All Trustees perform their duties on a voluntary basis and no remuneration or expenses are paid to any of the Board members.
There are approximately four meetings of the Trust per year. The Trustees agree the broad strategy and areas of activity for the Trust, including consideration of grant making and risk management. A Trust meeting is considered quorate if at least four Trustees are present.
## **Organisation Structure**
The Trust has three official posts - the Chairman, the Treasurer and the Secretary. Governance and Management are as described above. It is the Chairman's responsibility to ensure the Trustees meet regularly. There is a limit of twelve on the total number of Trustees on the Board.
## **Related parties**
The Sri Sathya Sai Organisation United Kingdom is not legally connected to the Trust but has common aims and organises educational, medical and spiritual meetings and conferences in the UK and abroad.
## **Statement of Trustees responsibilities**
The Trustees are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year.
In preparing these accounts, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 4 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
The Trustees report was approved by the Board of Trustees.
**Dr Venkata Mudigonda** Trustee Dated: 28 February 2023
- 5 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF SRI SATHYA SAI CHARITABLE TRUST UK**
I report to the Trustees on my examination of the financial statements of SRI SATHYA SAI CHARITABLE TRUST UK (the Trust) for the year ended 30 April 2022.
## **Responsibilities and basis of report**
As the Trustees of the Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Trust as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Yashlal P Hindocha, BA, FCA
Hindocha & Co Limited Chartered Accountants and Statutory Auditors 34 Queensbury Station Parade Edgware Middlesex HA8 5NN
Dated: 28 February 2023
- 6 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 APRIL 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
7,414
600
Charitable activities
**4**
-
214,566
Investments
**5**
11,109
345
Other income
**6**
942
-
**Total income**
19,465
215,511
**Expenditure on:**
Charitable activities
**7**
2,611
231,676
**Net income/(expenditure) for**
**the year/**
**Net movement in funds**
16,854
(16,165)
Fund balances at 1 May
2021
1,765,698
1,557,510
**Fund balances at 30**
**April 2022**
1,782,552
1,541,345|**Total**
Unrestricted
funds
**2022**
2021
**£**
**£**
8,014
16,246
214,566
-
11,454
13,269
942
8,345
234,976
37,860
234,287
4,365
689
33,495
3,323,208
1,732,203
3,323,897
1,765,698|Restricted
funds
2021
**£**
-
142,113
3,030
-
145,143
141,653
3,490
1,554,020
1,557,510|Total
2021
**£**
16,246
142,113
16,299
8,345|
|---|---|---|---|
||||183,003|
||||146,018|
||||36,985
3,286,223|
||||3,323,208|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 30 APRIL 2022**_
|**Notes**
**Fixed assets**
Intangible assets
**11**
Property, plant and equipment
**12**
Investments
**13**
**Current assets**
Trade and other receivables
**14**
Cash at bank and in hand
**Current liabilities**
**15**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds|**2022**
**£**
**£**
234
451,556
1
451,791
39,657
2,844,222
2,883,879
(11,773)
2,872,106
3,323,897
1,541,345
1,782,552
3,323,897|**2021**
**£**
**£**
469
452,074
1
452,544
37,888
2,844,549
2,882,437
(11,773)
2,870,664
3,323,208
1,557,510
1,765,698
3,323,208|**2021**
**£**
**£**
469
452,074
1
452,544
37,888
2,844,549
2,882,437
(11,773)
2,870,664
3,323,208
1,557,510
1,765,698
3,323,208|
|---|---|---|---|
||||452,544
2,870,664|
||||3,323,208|
||||1,557,510
1,765,698|
||||3,323,208|
The financial statements were approved by the Trustees on 28 February 2023
Dr Venkata Mudigonda **Trustee**
Mr Anil Gadhia, BA (Econ), FCA **Trustee**
- 8 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **1 Accounting policies**
## **Charity information**
SRI SATHYA SAI CHARITABLE TRUST UK is a registered charity, number 278481, and is constituted under a Trust Deed dated 15th June 1979 and Deed of Variation dated 4 May 2018, which is the governing document. This established the Shri Sathya Sai World Foundation U.K. but the Trust changed its name on 25th May 1999 to Sri Sathya Sai Charitable Trust UK. The registered office is 125 Wood Street, London , EC2V 7AW.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Trust's Trust Deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Trust is a Public Benefit Entity as defined by FRS 102.
The Trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Unrestricted funds comprise accumulated surpluses on general funds.
Restricted funds are those that can only be used for restricted purposes within the objects of the Trust. Restrictions arise when specified by donors or when funds are raised for particular restricted purposes. The purposes and the uses of the restricted funds are set out in the notes to the accounts.
## **1.4 Incoming resources**
Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time Gift Aid claim is approved.
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## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **1 Accounting policies**
**(Continued)**
Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Resources expended**
All expenditure is accounted for on an accrual basis.
Costs of generating funds comprise the costs of fundraising, publicity and programme costs and are recognised when payable.
Donations are made to individuals and organisations in order to further the objects of the Trust. Donations made to relief organisations are included in the Statement of Financial Activities when approved by the Trustees. The value of such donations unpaid at the year-end is accrued. Donations where the beneficiary has not been informed or has to meet certain conditions before it is released are not accrued but noted as financial commitments.
Wherever possible, expenditure is allocated specifically to the relevant activities for which it is incurred. Where costs cannot be directly attributed they have been allocated to activites on a basis consistent with the use of the resources.
Governance costs represent those costs of the strategic management of the trust and of complying with constitutional and statutory requirements.
## **1.6 Intangible fixed assets other than goodwill**
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Intangible assets comprise patent costs. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 10 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents over 10 years
## **1.7 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Nil Plant and machinery 25% p.a on a reducing balance basis Fixtures, fittings & equipment 25% p.a. on a reducing balance basis
- 10 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **1 Accounting policies**
**(Continued)**
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.8 Non-current investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the Trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
## **1.9 Impairment of non-current assets**
At each reporting end date, the Trust reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.11 Financial instruments**
The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **1 Accounting policies**
## **(Continued)**
## _**Impairment of financial assets**_
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
## _**Derecognition of financial assets**_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
## **1.12 Taxation**
The charity is exempt from tax on its charitable activities.
Income tax recoverable in relation to donations received under Gift Aid or deed of covenant is recognised when Gift Aid claim is approved.
## **1.13 Group accounts**
The Trustees Report and Accounts present information about the Trust as an individual undertaking. The Trust has not prepared group accounts as the profits of the only subsidiary, Sri Sathya Sai Books (UK) Limited are convenanted to the Trust and have been included in the Statement of Financial Activities as "other incoming resources".
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## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **2 Critical accounting estimates and judgements**
In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
6,611
600
Add: gift aid claims
803
-
7,414
600|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
7,211
16,119
803
127
8,014
16,246|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
7,211
16,119
803
127
8,014
16,246|
|---|---|---|
|||16,246|
- 13 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **4 Charitable activities**
|**Medi - Care**
**Socio - Care**
**Edu - Care**
**Disaster**
**emergency**
**fund**
**Aqua - Care**
**£**
**£**
**£**
**£**
**£**
Other income
22,384
1,611
40,962
145,733
2,051
Add: gift aid receivable
1,800
-
-
-
25
24,184
1,611
40,962
145,733
2,076|**Total**
**2022**
**£**
212,741
1,825
214,566|**Total**
**2021**
**£**
137,090
5,023|
|---|---|---|
|||142,113|
- 14 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **5 Investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Rental income
10,800
-
Interest receivable
309
345
11,109
345|**Total**
Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
10,800
10,800
-
654
2,469
3,030
11,454
13,269
3,030|Total
2021
£
10,800
5,499|
|---|---|---|
|||16,299|
## **6 Other income**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Net surplus / (deficit) of trading subsidiary|942|8,345|
- 15 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **7 Charitable activities**
|**Expenditure on charitable activities**|**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
||||||
|**Grants to institutions**|||||
|Medi - Care|1,192|38,011|39,203|58,275|
|Edu - Care|-|14,767|14,767|56,300|
|Socio - Care|-|2,101|2,101|4,025|
|Eco - Care|-|10,000|10,000|24,633|
|Disaster emergencyfund||165,000|165,000|-|
||||||
||||||
|Aqua - Care|-|1,350|1,350|-|
||||||
||||||
||||||
||||||
||1,192|231,229|232,421|143,233|
||||||
|**Governance Cost**|||||
|Depreciation and impairment|753||753|926|
|Legal andprofessional fees|-|-|-|-|
|General maintenance and other expenses|666|447|1,113|1,859|
||||||
||1,419|447|1,866|2,785|
||||||
|**Grants and Governance Cost**|2,611|231,676|234,287|146,018|
## **8 Independent Examination**
The independent examiner, Mr. Yashlal P Hindocha of Hindocha & Co Limited as per previous years has not charged any fees to the Trust.
## **9 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.
- 16 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **10 Employees**
The average monthly number of employees during the year was:
|Total
There were no employees whose annual remuneration was more than £60,000.
**11**
**Intangible fixed assets**
**Cost**
At 1 May 2021 and 30 April 2022
**Amortisation and impairment**
At 1 May 2021
Amortisation charged for the year
At 30 April 2022
**Carrying amount**
At 30 April 2022
At 30 April 2021|**2022**
**Number**
-|**2021**
**Number**
-|
|---|---|---|
|||**Patents**
**£**
2,347|
|||1,878
235|
|||2,113|
|||234|
|||469|
## **12 Property, plant and equipment**
|**Cost or valuation**
At 1 May 2021
At 30 April 2022
**Depreciation and impairment**
At 1 May 2021
Depreciation charged in the year
At 30 April 2022
**Carrying amount**
At 30 April 2022
At 30 April 2021|**Land and**
**buildings**
**Plant and**
**machinery**
**Fixtures,**
**fittings &**
**equipment**
**£**
**£**
**£**
450,000
16,131
3,402
450,000
16,131
3,402
-
14,207
3,252
-
481
37
-
14,688
3,289
450,000
1,443
113
450,000
1,924
150|**Total**
**£**
469,533|
|---|---|---|
|||469,533|
|||17,459
518|
|||17,977|
|||451,556|
|||452,074|
The freehold and leasehold land and buildings were valued on an open market basis by Trustees.
- 17 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **12 Property, plant and equipment**
## **(Continued)**
At 30 April 2022, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been £118,293 (2021 - £118,293).
## **13 Fixed asset investments**
||||**Other**|
|---|---|---|---|
||||**investments**|
|**Cost or valuation**||||
|At 1 May 2021 & 30 April 2022|||1|
|**Carrying amount**||||
|At 30 April 2022|||1|
|At 30 April 2021|||1|
|||**2022**|**2021**|
|Other investments comprise:|**Notes**|**£**|**£**|
|Investments in subsidiaries|**19**|1|1|
The subsidiary profit/(loss) for the year is covenanted to the Trust and transferred over.
|**14**
**Trade and other receivables**
**Amounts falling due within one year:**
Amounts owed by subsidiary undertakings
Other receivables
**15**
**Current liabilities**|**2022**
**£**
28,668
10,989
39,657|**2021**
**£**
28,668
9,220|
|---|---|---|
|||37,888|
||||
|Other payables
Accruals and deferred income|**2022**
**£**
955
10,818
11,773|**2021**
**£**
955
10,818|
|---|---|---|
|||11,773|
- 18 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
|**16**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 30
April 2022 are
represented by:
Intangible fixed assets
234
-
Property, plant and
equipment
451,556
-
Investments
1
-
Current assets/(liabilities)
1,330,761
1,541,345
1,782,552
1,541,345|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
234
469
451,556
452,074
1
1
2,872,106
1,313,154
3,323,897
1,765,698|Restricted
funds
2021
£
-
-
-
1,557,510
1,557,510|Total
2021
£
469
452,074
1
2,870,664|
|---|---|---|---|
||||3,323,208|
The funds balance above include unrealised gains on fair value adjustment of land and buildings amounting to:
Unrestricted funds : £331,707 (2021 - £331,707).
## **17 Events after the reporting date**
Covid 19 Pandemic has continued with significant number of cases. Donations to the Trust had significantly increased during the year, following Covid 19 appeals. This has enabled the Trust to help various worldwide countries affected by severe effect from Covid 19 including the UK.
The Trust has also continued its normal activities of donations during the period.
The Trust's trading subsidiary, Sri Sathya Sai Books (UK) Limited has had to remain closed during various lockdowns in the UK. The Trust continues to support the trading subsidiary.
Government guidance on Covid 19 has been followed and applied by the Trust and its trading subsidiary. Trustees meetings have been held online, quarterly.
- 19 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **18 Related party transactions**
## **Transactions with related parties**
During the year the Trust entered into the following transactions with related parties:
One of the trustees, Mr Anil Gadhia, is also the secretary and director in Sri Sathya Sai Books (UK) Limited, a trading subsidiary of the charity. Mr Anil Gadhia holds the share of the company in trust for Sri Sathya Sai Charitable Trust UK. Sri Sathya Sai Books (UK) Limited has covenanted its profit for the year of £942 (2021 - £8,345) to Sri Sathya Sai Charitable Trust UK.
During the previous year the Trust received the following from Sri Sathya Sai Books (UK) Limited: Covid Support Grant of £10,000 which was utilised for its Food Bank donations activities. No rent was received during this and the previous year from the Bookshop. The transactions were conducted on a normal trading basis.
## **At the balance sheet date:**
Included in debtors is an amount of £37,667 (2021 - £36,247) due from Sri Sathya Sai Books (UK) Limited.
- 20 -
## **SRI SATHYA SAI CHARITABLE TRUST UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2022**_
## **19 Subsidiaries**
These financial statements are separate Trust financial statements for Sri Sathya Sai Charitable Trust UK.
The Trust has not prepared group accounts as the profits of the only subsidiary, Sri Sathya Sai Books (UK) Limited are convenanted to the Trust and have been included in the Statement of Financial Activities as "other income".
Details of the Trust's subsidiaries at 30 April 2022 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|---|
||**office**|||**shares held**|**Direct**|
|Sri Sathya Sai Books (UK)|England and|
Selling books, audios and DVDOrdinary|||100.00|
|Limited|Wales|||||
|**Name of undertaking**|**Profit/(Loss)**||**Capital and**|||
||||**Reserves**|||
|||**£**|**£**|||
|Sri Sathya Sai Books (UK)||||||
|Limited||942|1|||
The investment in subsidiary is stated at cost.
- 21 -