2025-03-31-accounts

Charity number,. 294953 The Traldcraft Foundatlon Report and Financlal Statements FOR THE YEAR ENDED 31 MARCH 2025

The Traidcraft Foundation CONTENTS Page Trustees, Report including the Strategic R8POrt Independent Auditors, Report 9-12 Consolidated Statement of Financial Adivittes 13 Consolidated Balance Sheet 14 Charitable Company Balance Sheet 15 Consolidated Cash Flow Sta18m8nt 16 Notes to the Financial Statements 17-41

The Traidcraft Foundation TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustee5 present their annual report and audited financial slalements of The Traidcraft Foundation for the year ended 31 March 2025. The trustees confirm that the annual report and financial statements of the company ￿mplY wilh the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance wilh th8 Financial Raporting Standard applicabl& in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES The Traidcraft Foundation was aslablish8d in 1979. The aim of the Traldcr8ft Foundatlon has been to deliver its mission through the complementary activitles of ils charity, Traidcraft Exchange (now Transform Trade), and of its sister organization. the trading company, Traidcraft plc, until it went to administration In January 2023. The Found8tlon's task Is to ensure thal all parts of the Traidcraft family remain focused on the foundlng prlnciples, vlsion and mission of Traidcraft. as sel out below, and to support the Board of Traidcraft Exchange (now Transform Trade) as they implement aCti￿￿treS for the benefit of poor producers in the developing world. Traidcraft plc entered into administration In January 2023 as the business was no longer viable. The Foundation engaged regularly with the administrators and with Ihe board of Traidcraft Exchange to support both parties and facilitate an orderly windup of the affairs of Traidcraft plc and to ensure the vital work of Traidcraft ExGhange could continue effectively. The trustees of the Foundation are very grateful to the board. Chief Executbve, management and staff of Traldcraft Exchange as well as to the administrators for their work during this difficult time. Trdidcraft Foundation ¢ontinues lo support Traidcraft Exchange as it works closely with producers to reduce the Inevitable impact of Traidcraft pl¢ ceasing lo trade. Traidcraft Foundatlon's prlnciples are as follows.. Traidcraft is a Christian response to POV8rty. Our mission is fighting poverty through trade. We respect all people and the environment. We abide by and promote faiT business practices. We slrive to be transparent and accountable. TraId¢ra￿S vlslon.. A wortd freed from the scandal of poverty, where trade is just and people and Gommunitiès can flourish. TraIdcra￿s mlsslon: We fight poverty Ihrough trade. pioneering, practising and promoting approache5 to Irade that help poor people in devéloping counlries transform their lives. A Christian response to poverty, Traidcraft seeks to work with people of all faiths and none. The Foundation is a trust comprising five or more trustees who mèet periodically. It has neither staff nor any place of business and does not undertake any fundraising activities. The Traidcraft Foundation is a registered charity, whose formal objectives are..

The Traidcraft Foundation TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2025 The prevention and relief of poverty and sickness in those countries included in the lisl of Developing Countries as agreed from lime to lime by the trustees. Traidcraft Exchange and TraidGraft pic, until it ceased to trade, in acGordance with the Deed of Covenant., The promotion for the benefit of the public and studies in theological, political, social. teGhnical and economic subjects and other educational subjects; The promotion for the benefrt of the public of education and dissemination of knowledge in these sublecls with particular Ibul not exclusivel reference to Ihe problems of economic and social developing in Developing Countries arising from national and inlemational trading practi￿s., The advancement of the Christian religion by commending that religion to persons in Developing Countrles and e15ewhere' The promotion of other charitabl8 purpos&$ In Developing Countries in particular (by using any means available to il Including ils rights as members or shareholders) by defending the Christian basis underlying the operations of Traidcraft pic and Traidcraft Exchange, promoting the connections belw8&n the Christian faith and the principles of fair Irade, slimulaling, challenging and helping those bodies lo develop distinctively Christian approaches lo their work and representing lo the boards of Traidcraft pic, until the point it ceased to Irade, and Traidcraft Exchange the interests and opinions of stak8hold8rs, èspecially of those overseas producer groups and partners. strategles for achlevlng obj8ctlve8 The Foundation is the founder member of Traidcrafl Exchange and appoints the trustees of TraidGraft Exchange. The Foundation seeks lo encourage all parts of the Traid¢raft group to carry fO￿lard its work in accordance with the Traidcraft Foundation Principles. Our aims fully reflect the purposes that the Foundation was set up to fijrther. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees hava considered how planned activities will contribute to the alms and objective5 they have set. Our main activities are described below. All our charitable activities are undertaken to further our charitable purposes and for the public benefit. Prfnclpal actlvltlès The Traidcraft Foundation trustees met periodically during the year to review the work of Traidcraft. The Chair of the Foundation trust88s has Continued to meet new recruits to th8 Board of Traidcraft Exchange ahead of their appointments. The Traidcraft Foundation does not carry out any fundraising adivities. We continued to support Traidcraft Exchange following its review and rework of its organizational strategy and its commitment to following a different approach to its work. Please refer to the Traidcraft Exchange published accounts for more detail on activities during the year. Discussions are underway between the Foundation and the board of Traidcraft Exchange about a more Streamllned slruoture, to reflect the closure of Traidcraft plc.

Th8 Traidcraft Foundation TRUSTEES, REPORT (ContiTnuedJ FOR THE YEAR ENDED 31 MARCH 2025 Financial review The consolidaled results for the year ended 31 March 2025 are set out in detail in the financial statements below. The nel incoming resources for the Foundation (before Consolidation) for Iha year was £. Nil (2024.. £ Nill. The Foundation (before consolidation) has gross incoming resources of £. Nil (2024: £. Nil). Th8 Foundation is funded by Traidcraft Exchange. The trustees believe that the assets of the Foundation are available and adequate to fulfil ils obligations. Traidcraft Exchange's board approved a bLKtget with a modest surplus for FY 2024125 against total reserves brought forward of £.552,496 from FY2023124. On th8 backdrop of the collapse of the Traidcraft Pl¢ in FY22123 & the ¢ons8quent significanl challenge5 Wlth far reaching financial and operational impact that followed, Traidcraft Exchange continued to record steady resilienca and recovery. Traidcraft Exchange has had a strong year posting a markedly comparatively lower overall net deficit of £.31,772 (2023124.. deficit of £.544,357: 2022123: deficil of £.900,535) before exchange gain5 & losses. This performance was backed by a sustained overall steady incom& level of £.3.4M and decrease in overall expenditure arising from projects closed out al the end of prior year and within the Gurrenl year. This strong performance has rightly positioned Traldcraft Exchange toward meeting its target of breaking even in FY25f26 and beyond. Resérves pollcy The tiuste8s hav8 8ndor8ed the vlew of the trustees of Traldcraft Exchange that they conslder It prudent that Traidcraft Exchange should seek to maintain unrestricted reserves at a level sufficient lo meet matched funding requirements. budgeted staff, overheads and fundraising costs. Wh8n cakulating unrestriclad reserves, fixed assats and investments are excluded due to their illiquid nature. Wrth Traidcraft Exchange's steady and resilient performance over the recent financial years including the much closer to break-even point performance of FY2425, the management of Traldcraft Exchangè have initiated a rèvi8w of the charity's reserves policy with the aim of 8Stablishing a targ8t minimum reSe￿aS level. With the strong performance In FY24-25, we, through Traidcraft Exchange are looklng to FY2&26 with the intention of breaking even. Similarly. to FY24-25. for FY25-26. the board of Traidcraft Exchange once again approved a modest achievable surplus (unrestricted surplus) budget. Post year end 24125, Traidcraft Exchange has continued to maintain slrong support from its network of mid and high-level institutional donors and individual supporters and has initiated a review of ils fundraising strategy that is set to yield a refreshed fundraising approach towards attracting new & more flexible funding. This coupled with the continued dose monitoring of the charity's Gost struGture for Cost efficiencies, the Irusle8s have confidence Ihal Traidcraft Exchange is well poised loward achieving its goal of reaching and thereafter exceeding its breakeven point in FY25126 and beyond. As Traidcraft Exchange guarantees to cover reasonable expenses of the Traidcraft Foundation, its reserves are kept at approximately £.2,000.

The Traidcraft Foundation TRUSTEES, REPORT fcontlnued) FOR THE YEAR ENDED 31 MARCH 2025 Princlpal risks and uncertaintles We, through Traidcraft Exchange, had a year marked with positive transition lo a new slralegic direction that will take the organization lo 2030 and beyond. 11 was a year of ending some work well and slarting new work that demonslraled the new direction we are headed in - namely becoming a powerful force of producer-centered trade juslica. We made significant strides across our intemational programs and policy initiatives, driving impactful change in small-scale agriculture, garments. tea, and broader policy and advocacy worL Wa worked with local partner organizalions to support marginaltzed communities and tackled systemic barriers to fair trade and sustainable d8valopmenl. Our efforts were slrenglhened by the dedication of OUT partners, whose collaboration remains central lo our mission of a¢hieving a just and sustainable trade system. We recognlz8 that strong risk managèment is essential to d81iv8ring our mission. As a learning organlzalion, we continue to strengthen our approach so we can anticipate, escalate and address T15ks early, keeping them at manageable levels. Our woik across multiple countries creates a changing funding, ￿gUlatOry and operational environment, and we actively manage these risks to protect our impact A key area of rlsk Is financial vulnerability driven mainly by unpredictable income 5tream8 such as legacies and public appeals, and r8du¢lions in some statutory aid as some statutory donors reduce aid, for instance toward y8ar end, UK Aid announced culs to Ihelr budget. In response, we are exploring more flexible funding opportunities and have launched a review to strengthen and diversify our fundraising strategy. Th1$ will support long-term slabilily and resilience. We also face risks linked lo the transition to our new organizational slralegy, Including the organizational adjuslmenls requlred as we embed the new strategy, and external shifts in political and regulatory 8nvironm8nls. To manage these, we continu8 to Invast in staff engagement, communication and Iraining in the new strategy. We monitor national and regional contexts closely. learn through collaborative networks, and seek legal or specialist advice wh8r6 needed so we can make informed and responsible decisions. Our Theory of Change and Monitoring, Evaluatlon and Learnlng IMEL} framework play a ￿ntral role in guiding this transition. Thèy provide a clear, shared roadmap for how we deliver impact and help ensure that our work stays aligned lo the new slralegy, strengthening accountability and strategic focus across the organization.

The Traidcraft Foundallon TRUSTEES, REPORT fcontinued) FOR THE YEAR ENDED 31 MARCH 2025 Going concem After making enquiries, Ihe tru51ees have a reasonable expeclalion Ihat TraidGraft Foundation has adequate resources to Continue in operational existence for the foreseeable future. We have considered the significantly lower deficit recorded by Traidcraft Exchange in FY 24125 alongside the continuing pressure of an unpredictable fundraising landscape that is a general concern affecting the assessment of the going concern basis for all charities. The trustees have therefore taken particular care in reviewing the going concern basis. When revlewing their declsion. they have taken the following factors into account.. Traidcraft Exchange prepares an annual cashflow forecast as part of its budgeting proces5. The ca5hflow forecast is monitored on a monthty basis. Further. expenditure levels are monitored against budget on a monthly basis through cost cenler reports Traidcraft Exchange has not encountered any difficulty in paying its Creditors withln agreed payment terms. In general, most of our inslilulional donors provide their grants in advance of spending. Cashflow projections for the year following approval of these financial slal8m8nts show that the charity wi51 have adequate funds to meel its liabilities as they fall due. Traidcraft Exchange has set an achievable budget for the y8ar 25126 which should return a modest unrestrlcted surplus. For th&s8 rèasons, th8 trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in thè accounting policies. Slructurep govemance and management Conslltutlon The Traid¢raft Foundation is regist8r8d as a charity set up by a Trust deed (updated 2002). The Foundation has also entered into a Deed of Mutual Covenant with TraidGraft pk and Traidcraft Exchange, dated December 2002. The Foundation controls the composition of the board of Traidcraft Exchange and the accounts of Traidcraft Exchange are consolidaled with those of the Foundation.

The Traidcraft Foundation TRUSTEES. REPORT (Contlnued) FOR THE YEAR ENDED 31 MARCH 2025 Methods of appointment orelection of trustees The management of the group and the charity is the responsibility of the twstee5 who are elected and co-opted under the lerms of the Trust daed. Four trustees resigned during the year, that is, David Nussbaum. Rev Tariro Matsveru, Alison Ilnglis-Jones and Jane Cotton resigned in January 2024. In January 2024, 3 new trustees were appointed. thal is, Stephen Bonnick, Clive Osmond and Allson Margaret Coutts. Appointments are made following the recommendations of a nominations committee, which currently comprises Sir Stephen Timms (Chair of the Traidcraft Foundation), David Pain (Chair of the board of Traidcraft Exchange) and David Neale (the then Chair of the board of Traidcraft plc). Training is available for new trustees and other trustees as necèssary. A detailed induction pack and proc&ss is provid8d for each new trust88. Plan8 for future pèrlods The Traidcraft Foundation will work closely with the board of Traidcraft Exchange to ensur8 any changes in structur8 and slratagy remain focused on th8 founding principles, vision and mission of Traidcraft. Since March 2023 we have continued to engage with the adminislralors and the Traidcraft Exchange to navigate the winding up of Traidcraft plc. Traidcraft Exchange successfully bid for and secured the license to Ihe Traidcraft brand and have been developing a porrfolio of business partnerships that deliver impact and continue Ihe legacy of Traidcraft. We continue to support Traldcraft Exchange as they move forward with th8ir new strategy and the shift of approach to become a participatory grant-maker. facililalor and advocate. As Traldcraft plc no longer exist5, we have reviewèd the role of the Traidcrafl Foundation and are exploring merging the Foundation into Traidcraft Exchange. This will simplify the governance struclure and enabl8 greater accountability lo the charity's primary slakeholders. D15c106ure of Informatlon to audltor Each of the persons who are Iruslees at Ihe time when this trustees. report is approved has confirmed Ihal.. so far as that Irustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and • Ihat trustee has taken all the steps Ihat ought lo have been taken as a trustee in order to be aware of any r818vanl audit information and to establish that the charitable group's auditor is aware of Ihat information

The Traidcraft Foundalion TRUSTEES, REPORT fCon(Inued) FOR THE YEAR ENDED 31 MARCH 2025 REFERENCE ANO ADMINISTRATIVE DETAILS Charity number: Registered office: 294953 7-15 Pink Lane. Newcastle Upon Tyne. NE15DW Advisors Auditors Bankers Solicitors S&WAudFt HSBC Bank PLC Muckle LLP 17 Queens Lane, Newcastle upon Tyn8. NE11RN 110 Grey Street, Newcastle upon Tyne, NE16JG 32 Gallowgate. NewGastle upon Tyne. NE14BF Dlrectors and Trusteos The Directors of The Traidcraft Foundation are the Trustees for the purpose of charity law. Tha Trustees and offic8rs serving during the year and since the year end were as follows.. Trus188S: Jeremy Lefroy stephen Timms MP Stephen Bonni¢k Clive Osmond Alison Mar9aret Coutts (Chair)

The Traidcraft Foundation TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Auditor As we embarked on our new strategic plan. we have increasirvJly seen the need to slrengthen our internal control Systems and processes to build an even more agile, accountable and sustainable organization. Amongst the strategies lo achieve this is to seek a fresh perspective to our internal control systems which included considerations of change of auditors. Following a tender process, the tender committee recommended the appointment of Haines Watts (now CLA Evelyn Partners) as audilors for the 2024 financial year. This recommendalion was approved during the AGM. STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also Diredors of The Traidcraft Foundation for the purpose of company law) are responsible for preparing the Trustees Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trust88S to prèpare the financial stat8m8nts for each financial year whlch give a true and falr view of the state of affairs of the charitable company and the group and th8 incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing these financial slalemenls, th8 Trustees are required to.. selecl suitable accounting policies and then appty them consislenlly: observ8 the methods and principles In the Charities SORP 2015 (FRS 102)- makejudgements and estimates that are reasonable and prudent. slate whether applicabl8 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slalements., prepare the financial statements on a going concern basis unless it Is inappropriale to assume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records which disck)s8 With reasonable accuraGy at any lime the financial position of the charitable company and the group and lo enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. In 80 far as the Trustees are aware: there is no relevant audit information of which the charity's audilors are unaware. and the Trustees have taken all the steps that we ought lo have taken in order to make ourselves aware of any relevant audit information and to establish that the auditor is aware of that information. Approved by the Trustees on..1.41Q.11202fi....... and signed on their behalf by: Jeremy Lefroy Chair

The Traidcraft Foundation INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF THE TRAIDCRAFT FOUNDATION FOR THE YEAR ENDED 31 MARCH 2025 Opinion We have audited the financial statements of The Traidcraft Foundation (the 'charitable company,) and ils subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheel, Charitable Company Balance Sheel, the Consolidated Cash Fl¢)w Slalement and notes to the financial statements, 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 Finan￿81 Reporting Standard applicabl8 in th8 UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practi￿). In our opinion the financial statements: give a true and falr viaw of th8 slate of the group's and charitable company's affairs as at 31 March 2025, and of the group's incoming resources and application of resources, including ils income and expenditure, for the year then ended., have been properly prepared in accordance with Untted Kingdom Generally Accepleij Accountlng Practl¢e', and have been prepared in accordanGe with the requiremenls ofthe Companies Act 2006. Basls for oplnlon We conducted our audit in accordan￿ with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditof s responsibilities for the audit of the flnanclal slalements section of our report. We are independent of the group and charitable company in accordance with the athical requirements that are relevant to our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher ethical responsibilities in accordance wilh Ihese requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Conclusion8 relatlng to golng concern In auditing the financial slatements, we have concluded that the trustees, use of the going concern basis of accounting in Ihe preparation of the financial statements Is appropriate. Based on the work we have performed. we have not identified any material uncertainties relatlng to evenls or condilions that, individually or collectivety, may cast significant doubl on the charitable company's ability to continue as a going concern for a period of at least iwelve months from when the financial statements are aulhorised for issue. Our responsibilities and the r8sponsibilities of the truslees with respect to going concem are described in the relevant sections of this report. other Infomiation The Iruslees are responsible for the other information. The other information comprises the informalion included in the trustees, annual report, olher than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and. except to the extant otherwise explicitly stated in our report. we do not express any form of assurance condusion Ihereon.

The Traidcraft Foundation INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT FOUNDATION (continued) FOR THE YEAR ENDED 31 MARCH 2025 In connection with our audit of the financial statements. our responsibility is lo read the other information and, in doing so, consider whether the other informalion is materially inconsistent with the financial statements or our knowledga obtained in the audit or otherwise appears to be malerialty misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in Ihe financial slalemenls or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this regard. Oplnlons on othermatters prescribèd by tho Companlès Act 2006 In our opinion, based on the work undertaken in the course ofthe audit.. the information given in the trustees, report (incorporating the strategic report and the directors, report) for the financial year for which the financial statements are prepared is consislenl wilh the financial slatemenls,. and the strategic report and the directors, report have been prepared in accordance with applicable legal requlrements. Matter8 on whlch we are requlred to report by exception In IhÉ light of our knowledge and understanding of the group and parent charitable company and Ils environm8nt obtain8d in the course of the audit, we have not idantified material misstatements in tha directors, report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you if, in our opinion: adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial slatemenls are not In agreement with the accounting records and returns., or certain disclosures of directors, remuneialion specified by law ar8 not made: or we have not received all the information and explanations we require for our audit; or the trustees were nol entilled to prèpare the financial slalements in accordance with the small companies, regime and take advantage of the small companies, exèmptions in preparlng the directors, report and from the requirement lo prepare a strategic r8POrt. Responsibilltl86 of trustoe8 As explained more fully in Ihe trustees, responsibilrties statemenl set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statement5 and for being satisfied that they give a true and fair view. and for such internal control as Ihe Irustees determine is necessary to enable the preparation of financial stalemenls that are free from material misstatement, whether due to fraud or em)r. In preparing the financial stalements, Ihe trustees are responsible for assessing the group's and parent charitable company's ability to continue as a going concem, disclosing, as applicable, matters relaled to going concern and Using Ihe going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 10

The Traidcraft Foundation INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT FOUNDATION {continuedJ FOR THE YEAR ENDED 31 MARCH 2025 Audltor's responslblllties forthe audlt of the financlal statements We have been appointed auditor under the companies Act 2006 and we report in accordance with this Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole ar8 free from material misstatement, whelher dLJe to fraud or error. and lo issue an auditor's report that includes our opinion. Rea50nabl8 assurance is a high 18v81 of assurance, but is nol a guarantee that an audit conducted in accordance with ISAS (UK) will a￿ayS detect a material misslatemenl when il exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users laken on the basis of these financial statements. Irregularities. including fraud, are instances of non-compliance with laws and regulalions. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in r8specl of irr8gularit18s, including fraud. The extenl lo whlch our procedures are capable of deleding irregularities. including fraud, is detailed below. We obtain8d a general understanding of the company's legal and ￿gUlatOry framework through enqulry of management concerning their understanding of relevant laws and regulalions. the antity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation. We understand Ihal the group and the parent charitable company complieswilh the framework through: Engaging external legal professionals as r8quir8d and making chan9es to internal procedures and controls as necessary. The directors, close involvement in the day-tOThday running of the business, meanlng that any Illigallon or claims would Come to their attention directly. Monitoring of updates mad8 by regulatory bodies. In the context of the audit, we considered those laws and regulations whlch determine the form and content of the financial slalements, which are central lo the company's ability lo conduct ils business, and where there is a risk that failure lo comply Could result in maleri21 penalties. We identified the following laws and regulations as being of slgnlficance in the context of the company: The Companles Acl 2006 and FRS 102 in respect of the preparation and presentation of the financial slalements. The Charities Act 2011 and the Charities.. Statement of Recommend8d Practice in respect of th8 pr8paration and presentation of the financial statements. We performed the following specific procedures to gain evidence about compliance wtth the significant laws and r8gulations identified above: Making enquires of Irustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion offraud; Obtaining an understanding of the internal controls established to mitigate risks related lo fraud or non- complianc8 with laws and regulalions., Reviewing the minutes of ffleelings of those charged wilh gov8rnance', 11

The Traidcraft Foundation INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE TRAIDCRAFT FOUNDATION (continued) FOR THE YEAR ENDED 31 MARCH 2025 The senior statutory auditor led a discussion wilh senior members of the engagement team regarding the susceptibility of the group and the parent charitable company's financial ststements to material misstatemenl, including how fraud might occur. The areas identified in this discussion were-. Manipulation of Ihe financial statements via and management overfiding controls. The occurrence and accuracy of donation income. The completeness of legacy income. The incorrect recognition of grants resulting in the income being recognised in the incorrect accounting period. The risk that expenditure has been recorded in the incorrect period. These areas were communicated to the other members of the engagement leam not present at the discussion. The procedures we carried out to gain eV￿ence in the above areas included: Performed data analytics on the general ledger against client specific criteria Selected a sample of donalions, agreeing the revenue lo supporting documentation and through to the bank stalemenls. Obtained third party evidence for a sample of grants, lo ensure that It was appropriate to recognise the Income In the financial statements in accordance with the principles of the SORP. A further description of our responsibilities for the audit of the financial stalem8nts Is located on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibililies. This description forms part of our auditor's report. Use of our report Thi8 r8port is made solely lo the charilable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so Ihat w6 might slate to the charitabl& company's members those matters we are required to 51ate to them in an auditor's report and for no other purpose. To the fullest exteni permitted by law, we do not accept or assume responsibility lo anyone other than the Gharilable company and the charitable company's members as a body, for our audit work. for this report. or for th8 opinions we have lormed. Cralg Henderson (Senior Statutory Auditor) for and on behalf of S&W Audit Chartered Accountants and Statutory Auditor 21 s 17 Queens Lane Newcastle upon Tyne NE11RN 12

The Traidcraft Foundation CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolldated Income and expendlture account) FOR THE YEAR ENDED 31 MARCH 2025 Unrestrfcted Funds Reslrlcted Funds Total 2025 Total 2024 Note Income from: Donations and legacies Charitable activities 1,492,857 196,740 1,492,857 1,981,955 1,879,508 1,498,295 1.785.215 Total Income 1,689,597 1,785,215 3,474,812 3,377,803 Expenditure on.. Raising funds Voluntary incom8 sources Institutional inGame sources Charitablè activit18S Development programmes Policy and campaigns 664,692 61,945 664,692 61.945 776,149 114,122 533,846 457.348 1,713,565 75.191 2.247,411 532,537 2,392,883 639,030 Total oxpendlturo 1,717,828 1,788,756 3.506,584 3,922,184 Net movèment in fund8 bèfore trdnsfern (28,231) (3,541) (31,772) (544,381) Transfer belween funds 19 (12,853) 12.853 Net movement In funds afler transfers (41,084) 9,312 (31,772) (544,381 ) Other recognlsed galnsl(108se8) Unrealised foreign axchangè h)sses (25.142) (25,142) (55,924) Nèt movement in funds (66,226) 9.312 (56,914) (600,305) Reconclllation offunds Total funds brought forward 296,592 258,210 554,802 1,155,107 Total funds carrled foThvard 230,366 267,522 497,888 554,802 All income and expenditure detive from continuing activities. The Statement of Financial ActivitEs includes all gains and losses re¢ognised in the year. 13

The Traldcraft Foundation CONSOLIDATED BALANCE SHEET AS A T31 MARCH 2025 2025 2024 Notes Flxed assets Intangible assets Tangible assets 14 13 17.600 13.120 19.800 12.045 30.720 31,845 Currentassets Debtors Cash at bank and in hand 16 465.373 434.995 330,894 603.984 900,368 934,878 Credltors.. amounts falllng due wlthin on8 year 17 (433.200) (411,921) Netcurrgnt asgets 467,168 522,957 Net asset8 497,888 554,802 Charlty Funds Unrestricted funds Reslriclad funds 230,366 267,522 296,592 258,210 Total Charlty Fundg 19 497,888 554.802 The notes on pages 17 to 41 form part of Ihese financial statemenls. The financial statements were approved by the Trustees On....MI0.1￿Q26... and signed on their behalf by.. Jeremy Lefroy Chair 14

The Traidcraft Foundation PARENT CHARITY BALANCE SHEET AS A T31 MARCH 2025 2025 2024 Notes Currènt assets Debtors Cash al bank and in hand 16 6.540 2,305 3,000 2,305 8.845 5.305 Crodltors: amounts falling due within onè year 17 (6.540) (3,000) Net current assets 2,305 2,305 Net assets 2,305 2,305 Funds Unreslricted funds 2,305 2,305 2,305 2,305 The notes on pages 17 to 41 form part of these financlal 5tstements. The financial statements were approved by the Trustees on.1410112026 .and signed on their behalf by: Jeremy Lefroy Chair 15

The Traidcraft Foundation CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Net cash provided by/(usedin) operatlng actlvities (141.934) (974,1041 Cash flov￿ from Investlng activities Purchase of tangible assets Interest received (5,812) 3.898 15,058 Net cash flow from Investing acllvltles (1,914) 15,058 Netdecrease In ca$h and cash equlvalents (143,848) (959,046) Cash and cash equivalents al the beginnlng of the year Change in cash and cash equivalents due to exchange rate movements 603,984 (25.142) 1,618,954 (55,924) Cash and ca8h equlvalents atthe end of the year 432,690 603,984 Cash and cash equlvalents con$i8t of: Cash al bank and in hand 434,995 603,984 16

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies 1.1 Basls of preparatlon of flnanclal ststements The financial statements have been prepared In accordance with Accounting and Reportlng by Charities.. Statement of Recommended Practice applicable lo Gharities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) issued In October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ir81and (FRS 102), the Charities Act 201 t and UK Genarally Accapled Practice. The Traldcraft Foundation meets the definition of a public benefit entily under FRS 102. Assets and liabilities are initially recognised at hisloriGal cost or transaction value unless olheNise staled in the relevant accounting policy. The financial statements are prepared under the hlstorical CA)St convention or transaction value unless otherwise slated in the relevanl accounting policy note(s). The financial statements are prepared In sterling which is th8 functional currency of the charity and roundad to tha nearest £. Th8 significant accounting policias applied in the preparation of these financial statements are sét out below. These policies have been consistently applied lo all years presented unless otherwise slated. 1.2 Ba$18 of consolldatlon Th6 financial slalemenls consolidate th8 results of The Traldcrafl Foundatlon and its wholly owned subsidiary. A separate Statement of Financial Activities and Income and Expendilure Account for the charity has not been presented because The Traidcraft Foundation has taken advantage of the exampiion afforded by section 408 of the Companies Act 2006. 1.3 Going concern After making enqulrles, the Irustees have a reasonable expeclation that Traidcraft Foundatlon has adequate resources to continue in operational exislenGe for the foreseeable future. We have consideied the signifi¢antly lower deficit recorded by Traidcraft Exchange in FY 24125 alongside the continuing pressure of an unpredictable fundraising landscape that is a general concern affecting the assessmenl of the going concern basis for all charities. The trustees have therefore taken particular care in r8vi6wing the going concern basis. Please refar to page 5 for further information. 17

The Traidcraft Foundatlon NOTES TO THE FINANCIAL STATEMENTS fConflnue¢¥ FOR THE YEAR ENDED 31 MARCH 2025 1.4 Funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of The Traidcraft Foundation and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been s8t aside by the Trustees for particular purposes. The aim and use of eaGh designated fvnd 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 which have been ralsed by The Traidcraft Foundation for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes to the financial statements. 1.5 Incomè All Incoming resources becoming available lo the charity during the year are recognised in the Statement of Financial Aclivities. Income is deferred where incoming resources are receiv8d in advanc8 of the service being provided. No incoming resources are staled net of expenditure. Institutional grants, wh8r8 r8laled lo performance and specific deliverables, are accounted for as the Charity earns the right to consideration by ils performance. ￿ere income is received in advance of performance its recognition is deferred and included in creditors. Where entlllemenl occurs before income is received the income is a￿rUed and included in debtors. Government grants are recognised when the charity has entitlement to the income. receipt is probable and the amount can be measured reliabty. Listed shar8s donated during the year are included in donations and valued at estimated m8rket value. Unlisted shares donated during the year are induded in donations and valued al eslimaled market value. Legacies are recognised as income, In the accounting period. once the Charity has been Inform8d of the amount of a bequest and il can be measured wrth suff￿lent reliability. Investment income is recognlsed on a receivable basis. 1.6 Expenditure and irrecoverable VAT Expenditure is brought into the financial statements as it is incurred. Overheads (including management and adminislralion costs) and olher non-specific expenditure are allocated belween charitable activities and generating funds in proportion to the number of staff employed within each area. This is shown as "overhead allocalion" in the notes and apportioned on the basis of staff headcount. Costs of generating funds are those incurred in seeking voluntary income and grants from institutional sources and do not include the costs of disseminating information in support of the charitable activities. These cosls include Ihe salaries, direct expenditure and overhead costs of the staff who promote fundraising. q8

TheTraldcraft Foundatlon NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Costs of charitable activities represent the salaries and overhead costs of staff directly working in International Programmes and the Policy Unit togather with 8xp8nditure directly attributable to these activities. Irrecoverable VAT is tharged as a cost to the Statement of Finan￿81 Activities. 1.7 Support cost allocatlon Support costs represent the costs incurred by finance. IT and human resources attributable to the management of the Charity's assets and organisalional administration. 1.8 Tangiblè foxed assets Tangible fixed assets costing more than £500 ar8 Staled al cost (or deem8d cost) or valuation less accumulated deprecialion and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Office equipment Computerequipment 25% straight line 10'/ty slraighl line 1.9 Intsnglbleflxed a389ts Intangible fixed assets are slated at cost less amortisalion. Amortisation is provided at rates calculated to write off the cost of the fixed assels, less their estimated residual value, over their expected useful Ilves on the following basis: Capilalised SofNvare 4 years 1.10 Foreign currencies TransaGtions in foreign currencies are translated at the exchange rate rullng al the dale of Ihe transaction. Monetary assets and liabilities in foreign currencies are retranslated al the rates of exchange ruling al the balance sheel date. The functional currency of the Group is GBP Sterling. 1.11 Investments Investments in subsidiary undertakings are held at cost less impaiment. 1.12 stock Stock is valued at the lower of cost and net realisable value. 1.13 Debtora Trade and olher debtors are recognised at the setllement amount due after any trade dlscount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. 1.14 Cash at bank and In hand Cash at bank and cash in hand includes cash and short tem highly liquid investments with a short malurily of three months or less from the date of acquisition or opening of tha deposit or similar account. 19

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 1.15 Creditors and provlslons Creditors an(J provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amounl due lo settle Ihe obligation can be measured or estimated reliably. Creditors and provisions are récognised al their settlement after allowing for any trade discounts due. 1.16 Pensions For Ihe dèfined contribution pension scheme. the pension costs charged lo the Statemènt of FSnancial Activities represent the amount of the contributions payable in respect of the accounting period. For the defined benefit schemes the amount charged to the Statement of Financial Activities in respecl of p8nsion costs and other post retirement benefits is the estimated regular cost of providing th8 benefits accrued in Ihe year, adjusted to reftect variation5 from that cost. The interest cost and expected return on assets are included within other finance cosls. Actuarial gains and 105ses arising from new valuations and from updating valualions lo the balance sheel dale are recognised in Ihe Statement of Financial Aclivilie5. Defined benefit schemes are funded. with the assets held separately from the group In separate trustee administered funds. Full actuarial valuations, by a professionalty qualified actuary. are obtained at lèasl every three years, and updated lo rèflect Gurrent conditions at each balance sheet date. The pension scheme asset5 are measured at fair value. The pension scheme liabilities are measured using the proj8Cted unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and Currency. A pension scheme asset is recognised on the balance sheet only to th& exlenl that the surplus may be recovered by reduced future contributions or to the exienl that the trustees have agreed a refund from the scheme al the balance she81 data. A pension scheme liability Is r8cognis8d lo the axtent that the group has a legal or constructive obligation lo settle the liability. The administration costs of running the closed defined contribution scheme are charged to the Statement of Financial Activities. Further details are provided in the notes to the accounts. 1.17 Flnanclal instruments The Traidcraft Foundation only has financial assets arKI 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 setllemenl value with the excepiion of bank loans which are subsequently measured al amorlised cost using the effectnie interest method. 1.18 Judgements and key sources of estimation uncertainty In Ihe application of Iha charitable company's accounting policies, the Trustees are required to make judgements, estimates and assumptions aboul the carrying amounl 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 lo be relevant. Actual resulis may differ from these estimates.

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 1.19 Judgements and key sources of estlmatlon uncertalnty (continued) Key estimates included within these fi'nancial statements include assumptions regarding discount rates and mortality in calculating the value of retirement benefits. Truslees keep these assumptions under review and employ the services of qualified actuaries to calculate the resulting expected asset or liability to the charity in respecl of retirement benefits. None of the other estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear significant risk of causing a material adjustment to the carrying amounts of ass8ts and liabilities within the next financial year. In preparing these financial slalemenls, no significant judgements were required in the process of applying the company's accounting policies. 2. Legal ststus The Traidcrafi Foundalion is an unincorporated associatlon. governed by Its constitution, adopted on 03 September 1986. It has no legal personality separate from ils trustees, who enter contracts and hold assets in their own names. Trustees have unlimited personal liability for the charity's obligations and debts. 21

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Statemont of flnanclal activities from the prlor year as restatsd As restated Total 2023 Unrestricted Funds Restrlcted Funds Total 2024 Note Income from: Donations and legacies Charitable activities 1.879,508 51,386 1,879,508 1,498,295 1,439,883 2,013,912 1.446.909 Total income 1.930,894 1,446.909 3,377,803 3,453,795 Expèndlture on: Raising funds Voluntary income sources Instilulional income sources Charitable activities Developm8nl programmes Policy and campaigns 776,149 114,122 776,149 114.122 726,603 215,963 689,951 584,682 1,702.932 54,348 2,392.883 639,030 2,713.822 698,009 Total expendlture 2.164.904 1,757,280 3,922,184 4,354,397 Net movement In funds before transfers (234.010) (310,371) ( S44.381) (900,602) Transfer be￿een funds 19 (69,546) 69,546 Net movement In funds afler transfers (303.656) (240,825) { 544,381) (900,602) Other recognlsed galn8111088es) Unreallsed forèign exchange loss8s { 55,924) (55,924) (15,560) Net movement in funds (359,480) (240.825) (600,305) (916,162) Reconclllation of funds Total funds brought fopNard 656,072 499,035 1,155.107 2,071,269 Totsl fund5 carried forward 296.592 258.810 554,802 1.155.107 22

The TraidGraftFoundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Income from donations and legacles 2025 2024 Donations Legacies other donations 1,293.249 199,608 1,534,665 328,693 16,150 1,492,857 1,879,508 Charltable activities Unrestrlcted Funds Restricted Funds 2025 2024 Grants from Institutional sources Consultancy and other income 1,785,215 1,785,215 196,740 1,446,909 51,386 196.740 196.740 1,785,215 1,9B1,955 1,498,295 Costs of generatlng funds Voluntary Income 2025 2024 Travel and accommodation Direct costs Support costs Direct salaries 212 287,855 129,157 247.468 348 297,581 167,379 310,841 664,692 776,149 Instltutlonal sources 2025 2024 Support costs Direct cosls 61,830 114 114,122 61.945 114,122 23

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Confinuedj FOR THE YEAR ENDED 31 MARCH 2025 Analysls of expenditure on charitable activities Unrestricted funds Restricted funds Totsl 2025 Total 2024 Development Progrdmmes Direct salaries Travel and accommodation Direct programme costs Support costs (Note 8) 282.629 21,711 92,503 136,302 277.524 38,471 1.285,989 112,281 560,153 60,182 1,378.492 248,583 742,720 70,889 1.485,670 93,580 533,145 1,714,265 2.247,410 2.392,859 PollGy Unlt and Campaigning Direct salaries Travel and accommodallon Direct programme costs Support costs (Note 8) 294,187 5,321 3.399 154,439 44,900 704 29.588 339,086 6,025 32,987 154.439 365,331 4,210 14,727 264,763 457.346 75,191 532,537 639,030 990,490 1.789,456 2,779.947 3,031,889 Supportcosts Voluntary Income Institutlonal Sources Development Programmes Pollcy & Campaigning Management and admin salaries Governance Office services Office machinery and consumables Financial services 91,887 14,041 8,750 763 13,735 43,979 6.722 4.189 365 6.575 96,949 14,818 9,235 805 14,495 109.850 16,790 10,463 912 16,424 129,157 61,830 136,302 154,439 2025 2024 Management and admin salaries Governance Office seNices Office machinery and consumables Financial services 342.645 52,370 32.637 2,846 51,229 438,170 76,687 77,401 6,365 41,220 481.728 639,843 24

The Traidcraft Foundallon NOTES TO THE FINANCIAL STATEMENTS (Confynued) FOR THE YEAR ENDED 31 MARCH 2025 Support costs have bBen apportioned based on the number offull-time staff equivalents in each departmenl. Management and administration salaries include Ihe salaries of staff working in Finance, HR, Public Relations and Communicalions and general management. It also includes recruitment. relocation, training and other staff costs. Offic8 seNices include rent, insuranc8 and general office running expens8s. OfftC8 machinery and consumables include depreciation and non-capilal office furniture, fittings and equipment. Financial s8Nic8s include bank charges, irre¢overable VAT and membership fees and subscriptions. PR & Comms is the cost of preparing communications for Ihe charity and includes the cosl of trips to visit projects to provide reports to our supporters. Net eXP8ndlture for the year Net income Is staled after charging. 2025 2024 Amortisalion Depreciation Operating lease costs Unrealised exchange rale losses Auditors remuneration 2,200 4,737 56,173 25,142 20,000 2,200 11,172 57,004 55,924 25.000 10. Audltors remunerdtlon The audltors remuneration amounts to an audit fee of £20,000 (2024- £25.000). 11. Flnanclal performance of the charitable company The Consolidated Statement of Financial Activities includes the results of the wholly owned subsidiaries. The summary financial performance ofthe charily alone 2024 Income Expenditure Unreali5ed10sses 3,410,667 (3,312,406) (25,142) Net Ideficit) 15urplus 73,119 25

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS fcontlnuedj FOR THE YEAR ENDED 31 MARCH 2025 12. Analysis of staff costs, Trustee remuneratlon and expenses, personnel and the Cost of key management The total staff costs and employees benefits were as foll¢)ws: 2025 2024 Wages and salaries Social security costs Other pension costs Overseas salaries and staff costs 680,806 70.132 79,002 548,955 861,332 86,714 105,743 793.273 1.378.895 1,764,915 The av&rag8 number of empk)yees during the year was as follows.. 2025 Group 2024 Group Development programmes and Policy Unit Fundraising Manag8ment and administration 37 49 13 10 71 The number ol employees who received lolal employee benefits (excluding employer pension costs) of more than £60,000 is as follows: Number 2025 Number 2024 In the band £60,001- £70.000 In the band £70,001- £80,000 In the band £90,001-£100.000 26

The Traldcraft Foundalion NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 12. Anatysls of staff costs. Tru5teo remuneralion and expenses. and the cost of key management personnel expenses (contlnued) The Trustees were not paid or received any other benefits from employment in the year (2024 £nil). No Truslee received payment for professional or other services supplied lo the charity {2024- £nil). Tha key management personnel of th8 charity are identified on page 12. The total employee benefits of th8 k8y management personn81 of the charity were £475.625 (2024- £526,934). 13. Tonglbl8flxed assets Con8olldaled Flxturei, fittings and èquipment Total Cost At 1 April 2024 Addilions 141,452 5,812 141,452 5,812 At 31 March 2025 147,264 147,264 Depreclatlon and Impalmiant At 1 April 2024 Charge for the year 129,407 4,737 129,407 4,737 At 31 March 2025 134,144 134,144 Net book value At 31 March 2025 13,120 13,120 At 31 March 2024 12,045 12,045 27

The Traldcraft Foundatlon NOTES TO THE FINANCIAL STATEMENTS (Ct)ntinued) FOR THE YEAR ENDED 31 MARCH 2025 13. Tangible fixed assets (contlnued) Charitsble company Fixtures, fittlngs and equipment Total Cost At 1 April 2024 Additions 131,391 4,632 131,391 4,632 At 31 Marth 2025 136,023 136,023 Depreclatlon and Impalmient Al 1 April 2024 Chargè for the year 121,189 3,569 121,189 3,569 At 31 March 2025 124,758 124.758 Nat book valuo Al 31 March 2025 11,265 11.265 Al 31 March 2024 10,202 10,202 28

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Confinuedj FOR THE YEAR ENDED 31 MARCH 2025 14. Intangible assets Consolldated & Company IT systems Total Cost At 1 April 2024 and 31 March 2025 41,469 41,469 Amortlsatlon At 1 April 2024 Charge forthe year 21,669 2,200 21.669 2,200 At 31 March 2025 23,869 23,869 Net book valuo At 31 March 2025 17,600 17,600 At 31 March 2024 19,800 19,800 15. Inveslments Consolldated 2025 2024 Charltable Company 2025 2024 Shares in subsidiary underlakiros 1,000 1,000 1,000 1,000 Traidcraft Services India Private Limited is incorporaled in Indla and is limited by shares. The Corporate Identity Number is U74140DL2015PTC286042. Traidcraft Exchange holds 990/0 of the share5. The investments include shares in Traidcraft plc which are not listed on any stock exchange and which were donated to Traidcraft Exchange by supporters. At 31 March 2025, the Traidcraft plc shares were not being traded so the trustees valued the shares at nil. Due to the illiquid nature of these shares the trustees believed il was appropriate to classify them as a fixed asset investment. 29

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Percentage Shareholdlng Company Traidcraft Services India Private Limited Country De5crlptlon India 100tsA Ordinary The results and summary of assets and liabilities of the company are as follows.. 2025 Turnover Expenditur8 226,479 (219,320) Loss for the year 7,159 2025 Total assets Total liabilities 87,727 (39,292) Shareholders, fund8 48,435 16. Debtor8 Group 2025 Group 2024 Parent 2025 Charlty 2024 Trada debtors Amounts owed to subsidiary undertakings Prepayments and acGrued incoma Other debtOTS 79.590 11,851 6.540 3,000 368,789 16,994 233,883 85,360 465,373 330,894 6,540 3.000 30

Tho Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS fcontinued) FOR THE YEAR ENDED 31 MARCH 2025 17. Credltors: amounts falling due withln one year Group 2025 Group 2024 Parent 2025 Charlty 2024 Trade creditors Social Security and taxes Accruals and deferred income Other creditors Amounts Owed to subsidiary 105,836 26,466 261,647 39.252 44,573 24,050 339.579 3,720 6,540 3,000 433,201 411,922 6,540 3,000 08ferred Income Group 2025 Group 2024 Parent 2025 Charlty 2024 Deferred income al 01 April 2024 Deferred during the year Amounts released 135.283 655,422 (622.645) 815,674 135.283 (815.674) Deferred income at 31 March 2025 168,060 135,283 Deferred Income relales to funds received from In5tilutional donors that have not been spent at the year end. It will be spenl on planned future project activities. The majorily will be spent in 25126. Income will be recognised as the monies are utilised, in line with the funding agreements. 18. Operatlng leases The future minimum lease payments under non￿ancelIable operating leases are as follows,. 2025 2024 Not later than onè year Later than one and nol laler than five years 59,817 66,OS7 59,817 66,067 125,884 125,884 31

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Confinued) FOR THE YEAR ENDED 31 MARCH 2025 19. Fund reconciliatlon Year nded 37 March 2025 Balance at 1 April 2024 226,592 Balance at 31 March 2025 160,366 Transfers Galnsl Ilossesl (25.142 ) Unrestrlcted funds General fund Income 1,689.597 Expendlture (1,717,828) (12.853) Designated fund Qrganisalion systems strengthening work 70,000 70,000 296,592 1.689,597 { 1.717,828) (12.853) { 25,142) 230,366 Restricted fund8 JRCT land grab research Project 6,463 Khamalayan project 1.927 Hidden Homworkers project 22.033 Tanzania - Disability piojecl 5.420 Matrix Causes Fund 5,000 West Bengal Women Farm8r$ 23,961 Juicing Justice projé OAK Foundation project Oak- Tea Project Laudes foundatlon Laude5 Garment Work Empowering Women CSOS (WEE) project UKAM- PPP project Slrengthing Farmers Associalion4,882 Muktee11: Slrenglhening (Women CSOS) 9,225 SPF- Swalamban project ADD Disability Justice Program- Kenya Coffae, Cocoa & Palm oil (CCP) 7.754 EA Tea Project (PGM) Pilot 6,463 1,927 23,388 5,420 5,000 23.961 500 43,592 134,762 5,418 169,110 4,0(K) (13,959) (2,645) 13,959 134,969 475,960 (59,637) (356.199) (31.740) 15,001 5,418 118.876 125,424 (75,191 ) 31,751 490,828 192,939 177,555 (665,720) (32,212) { 353,020) (156,747) (175,3531 1160,081 ) 25,689 57.865 116.207 22,427 (8.238) (37,984) { 7,758) { 7,510) (56.224) (1,885) (1,773) 57,080 78,223 14,669 7.754 7.510 55.224 1,885 1.OCKI Total restricted funds 258,210 1.785,215 (1,788,756 } 12,853 267,522 Total fund9 554,802 3,474.812 { 3.506,584) (25,142) 497,888 32

The Traidcraft Foundation NOTES TO THE FINANGIAL STATEMENTS (Ct￿tInued) FOR THE YEAR ENDED 31 MARCH 2025 19. Fund reconclllatlon (Contlnued) Year ended 31 March 2024 Balancè at Balance at 31 March 2024 226,592 Transfern Gainsl 1105sesl (55,924) Unr88tricted funds General fund 2023 387,072 Income 1,930.894 Expendlture (2,164,904) 129,454 Deslgnated fund Organisalion systems slrenglhening work 269.000 (199,000) 70,000 656,072 1,930,894 { 2,164,904) { 69,546) (55,924) 296,592 Restrlcted funds JRCT land grab research Project 6,463 Khamatayan project 2.754 Hidd8n Homeworkers project 17,944 Tanzania- Disability project Matrix Causes Fund 5,000 West Bengal Women Farmers 21,961 Juicing Justice project 500 OAK Foundation project (Pahariya Jharkhand project)100.269 C&A Texli18S (2,051) Supporting Tea Workers prolecl (COVID-19 Response Fund) (3,262) Fighting forced labor- Muktee projecl Oak- Tea Project Laudes foundation Laudes Garment Work Empowering Women CSOS (WEEI project UKAM- PPP proje¢t Strengthing Farmers Association Muktee11: Slrengihèning (Women CS05) 17,493 Coffee, Cocoa & Palm oil (CCP) (93) Halcrow Foundation 3.739 Participatory Granl Making (PGM) Pilot 6.463 1,927 22,033 5,420 5,000 23,961 500 (827) (136,988) { 16,803) 141.077 22.223 (132,009) 50 31,740 2,001 3.262 8,499 (10,272) (181.135) 1.773 196,136 5,418 83,288 15,001 5,418 118,876 89.986 (54.398) 5.000 692.842 224,994 214.482 (666.092) (224,999) (209,600) 31,750 4,882 10,000 10.273 {18,268) (2,426) (24,603) 9.225 7,754 20,864 38,476 30,533 (78.910 } 9,901 Total restricted funds 499,035 1.446.909 (1,757,280) 69.546 258,210 Tolal funds 1,155.107 3,377,803 (3,922,184) (55,924) 554,802 33

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 MARCH 2025 South Asia Programmè 'MUKTEE: Flghtlng Forced Labour wlth Adivasi and Dalit Communltles In South Asia,: Ref No. COOP- RSID (2018) 6764770) is a four year project funded by the European Commission. It was planned in order to address the systemiG and structural vulnerabilities of agricultural communities lo forced. bonded, and child labour in two districts of Northern Bangladesh and four districts of Madhya Pradesh. India. It worked on multiple fronts, namely rescuing and rehabilitating communities from bonded labour conditions,. preventing future bondage through skill development and employment opporlunilies,. support enterprise Ihrough developing supply chains of agricultural commodities in the local areas.. and strengthening policy interventions. 8,000 households and 20,000 children were to benefit directty from this project. The projecl received a nowcost extension until the end of June 2022 and currently work is being to complete the evaluation and final reporting. The total cost is É1,131,809. Hldden Homeworkers Improvlng Transparency and Traceablllty to Improve Worklng Condltions of Homeworkèrs In Apparel and Footwèar Chains: Ref No EuropeAid11575151dhlacVMulli is a project that started in April 2019. The objective is lo improve the working conditions of informal and home based workers In N8pal, Pakistan and India. who work In global valu8 chains In the apparel and fo0￿ear sectors. 11 is expected to impact the lives of 20.000 hom8 based workers in this country through improved working conditions, access to social enlillements and policy change at the national level. The proJect1s progressing well, though has to undergo some changes due lo the impact of covid on home workers. A no-cost extension Is now proposed and Ihe details are being worked out. The total cosl is É1.308.922. Bangladèsh 'Khamatayan' <Empowaring smallholders to strengthen local democratic governance) is being impl8m8nt8d In Bangladesh in partnership with Christian Aid and Solidarites and funded by th8 European Commission. Th8 objective is lo strengthen the governance, accounlabilily and sustainability of smallholder civil society organisations in Bangladesh, covering 24 district and sub district associalions, and 788 village lavel Self help Groups (SHGS). The projé¢t planned to empower these organisations, representing 20,000 marginal famers (S00￿ women, 10% ethnic minorities. 5% disabled people) to proactively engage with Local Authorities in the five target dlslricls of Gaibandha. Kurigram. Mymensingh. Sherpur and Satkhira. The total cost of thi5 42 month project is é1,653.149. Empowerlng women's CSOS to ensure good governance (WEEI.. Ref No EuropeAid11689031DDIACTIBD is a 42 month project starling February 2021 and will impact the lives of 15,000 women in 5 districts of Bangladesh, in partnership with Ulashi Sreejony Sangha (USS) and Bikash Bangladesh. The project will build capacity of women's grassroot organisations to advance gender equality and empowerment and enable their participation in local governance. It will support women to access social and economi¢ rights., and strengthen women's collective voice through their own organisations. The total cost is Q,592.595. 34

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 Shifting the power to grassroots. communities through strengthening farnier-led CSOS and improving their engagement In the sustsinable development process ISWABOL). The projecl started in April 2023 through a Traidcraft Exchange led consortium of six NGOS In 33 disadvantaged upazialas IsutFdislricls) of 13 districts across Bangladesh. The work f￿uS6S on enhancing human and social capital and strengthening Smallholder Farmer-led Civil Society Organizations {FSFCSOs) as independent institutions and actors of good governanc8 to promote inclusive and sustainable development. The project targets 46 FSFCSOS and 1,580 Local Farmer Organizations along with 50,000 participants (500/0 women, 7•A ethnic minorities and 5% persons with disabilities). Registration of these FSFCSOS is under process which will ensure legal entity and contribule lo their sustainability in the long run. Indla Addressing vulnerabilities among the Pahariya community through market led Interventions: Ref No OFIL 19 003 is a 4 year project aims to 'reduce vulnerability and improve sustainable livelihoods and food sovereignty among 3000 Pahariya households, particularly women. in two blocks of Jharkhand" The 90 villages targeted are comprised of extremely vulnerable Pahariya tribal households alone. This is sought to be achieved by organising and enabling communities to adopt sustainable and productive resource (forest, land and water) managemènt r8gim8s, empowering communities to acc8SS their entillemenls and engage with the market with a view to sustainably enhance livelihood. income base and nutrltional status. The total cost of the project is £831,172 and is funded by the Oak Foundation. Addressing Socio-Economlc Vulnerabilities of Tea Workers in Wesl Bengal and Assam - Building Voices and Creating Choices- The goal of this 3-year project is to reduce socio economic vulnerability, improva livelihoods and resilience of 9,000 Tea worker communities In 5 districts of North Bengal and Assam. The work will ba undertaken across 35 gardens ofwhlch 25 gardens in North Bengal and 10 gardens in Assam. The prolect will facilitate building of communily voices and create opportunities and choices for tea worker households. The primary focus will be to Improve livelihoods and safely nets through a parlicipalory process of assessing needs, resources, skills and opporlunilies leading to diversification and improvement in incomes. Secondly, collectivisalion of women and youth in the gardens and enhancing their knowledge, skills and sense of agency will improve their negotiation and dialogue capacsties with officials within and outside the gardens enabling them to access enlillements from th8 Government. The projed will also establish a model of climat8 adaptive practices through establishing small scale innovations. The total cost of the project is £972.572 and is funded by the Oak Foundation. Climate resilient sustainable livelihoods for female small hokler farmers. (Birbhum, West Bengall.. Ref.. HF185 Is a project in India funded by the Halcrow Foundation. The project aims to organize vulnarabla women farmers. improv8 food security and Inc￿aSe household incomes through livelihood diversification, enhanced water use efficiency, and building resilience through social securily safety nets for 2,500 vulnerable families. The projecl is now in year 2. There are 80 Women Livelihood Committ&es formed now and work is on to build capacity around governance, micro savings. and resource mapping. Linkages have been buill with various government departments to access exiension services for a variety of crops as well starting nurseries to benefit other families. The cost of the project is £99.948. Eagt Africa Programme Senegal In 2016117, 'Juicing Justice project for Farmers., started in Senegal. has worked in partnership with small Senegalese enterprises called Zena and BDS. 35

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 The project, funded by Comic Relief (Gran110 1324191- total cost £625,489), has worked with 2,200 forest fruit farmers to acquire environmentally sustainable foresl fruit haTvesling knowledge and skills, increase their income from sales of exotic forest fruits and improve their livelihoods.11 also aims to strengthen the capacity of the iwo small businesses to Iiade with the farmers in ethical practices thal ensure equitable sharing of risks and benefits as well as develop their ￿pacity to access European markets with innovative juice brands. The project has now ended. Kenya Participatory Grant Maklng (PGMI Pllot: The PGM pilot was launched during the current financial year in partnership with the Kenya Community Development Foundation {KCDF). Through the partnership, we supported six community-based organizations (CBOS) in small scale agriculture, in Meru and Kilui counties of Kenya across three value chains, that is. poultry farming, onion farming and ba8 k88ping, monitored their progress, addressed challenges and disbursed funds lo them. Through the pilot, the capacity of the CBOS was enhanced through training, provision of extension services in partnership with government Off￿6r$ and cross- learning through exchang8 Visits to experienced farmers. We plan lo continua to maintain the integrity of established structures and adopting a facililalive approach that empowers CBO leadership to make key decisions, we enhanced collaboration, building on our strong traGk record with local partners and made progress towards project suslainability. Tanzanla 'Promoling the Incluslon of People with Disabilllles in Cocoa, Coffee and Palm Oil Value Chains,. This project is being implemented by Traidcraft Exchange in Tanzania. It is funded by The National Lottery Community Fund (project ID.. 103288771. The project seeks to reduce household poverty and empower 1,000 people wilh disabilities and 500 smallholder fanners andlor micro enlreprèn8urs, engaged in the coffee. cocoa and suslaSnable palm oil in Mbeya Region of Tanzania and Dar es Salaam. The project seeks inclusion of disabled people in all aspects of the value chains through collective organisation, improved access to finance and business services, improved market access and changes in behaviour and practice towards disabled people. The budg8t for this project is £682,418. Pollcy and Campalgnlng Programme JRCT Our policy and campaigning work on corporate accountability has been partially supported by the Joseph Rowntree Charitable Trust. In the last year. we continued to call on Ihe government to legislate to hold companies to account for violaling human Tights through a Business Human Righls and Environment Acl (BHREA). A key aspect of this was a submission (written jointly with the Corporate Justice Coalition) and extensive follow-up advocacy to the Law Commission's Corporate Criminal Liability enquiry, around elements which we believe should be included in a new law. Our request that legislation should cover the failure to prevent human rights abuses was included in the Law Commission's options paper in June 2022. In addilion, we launched a public campaign in favour of BHREA in December 2021 which received 24,622 signatures. Laudes FOUnda￿on Our policy and advocacy work on textiles in the EU has been supported by Laudes Foundation. In the last year, we have taken forward advocacy on Unfair Trading Practices (UTPS) in Ihe gament sector in the EU, including.. holding regular meetings with the European Commission and Members of the European Parliament around the Eu's textile 51rategy, commissioning research on fair and unfair trading practices, and holding parliamentary events lo highlight the impacl of garment retailers, purchasing praCti￿S on working conditions. job security and pay for workers. 36

The Traidcraft Foundatlon NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 MARCH 2025 20. Analysis of net assets between funds dBd3 arc 2025 Unrestricted Funds Restrlcted Funds Total 2025 Total 2024 Tangible assets Intangible assets Current asse15 Creditors amounts due wilhln one year 13,120 17,600 464,786 (265.140) 13.120 17,600 9(MJ,368 (433.200) 12,045 19,800 934.878 (411,921) 435,582 (168,060) 230.366 267.522 497.888 554,802 Yearended 31 March 2 24 Unrestrlcted Funds Re8trlcted Funds Total 2024 Total 2023 Tangible assets Intangible assets Current assets Creditors amounts due within one year 12,045 19,800 541,385 (276.638) 12,045 19,800 934,878 (411,921) 14,743 393,493 (135,283) 2,016,979 (876,345) 296.592 258.210 554,802 1,155,107 21. Related Party Trnnsactlons During the year the Charity had transactions with the following related parties.. The Traidcraft Foundation- the controlling paty oflhe company as delailed below. Trustees- the trustees donated £nil (2024- £nil) during the year. 22. Controlllng Party The charity is under the control of the Traidcraft Foundation (charity number 294953). a registered charity with the same place of business, being the founder member and having, in general meetings, the number of votes that exceeds by one the number of all other vote5 Gast. 37

The Traidcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025 23. Pension Commitmènts The group op8rates a defined benefit pension stheme. Until 31 March 2001 Traidcraft operated a defined benefit funded pension scheme covering the pension arrangements of employees of Traidcraft plc and Traidcraft Exchange. providing a pension linked to final salary. This schem8 Is now closed but not wound-up and TTaidcraft pk and Traidcraft Exchangg continued to make contributions to it, working with the scheme trustees to agree appropriate contribution levels. Traidcrafl plc has been the principal employer within the combined TraKlcraft defined benefit pension scheme and Traidcraft Exchange is the participating employer. In January 2023 Traidcraft plc entered into administration. The sch8m8 actuary has split the ass81s and liabilities of the original scheme inlo a Traidcraft plc scheme and a Traidcraft Exchange scheme. Traidcraft Exchange is solely responsible for The Traidcraft Foundation part of scheme and is responsible for rneeting tha ongoing costs of The Traidcraft Foundation schème. The triennial actuarlal valuation prepared as at 1 September 2019 indicated that the scheme was in technical surplus. The charity expects lo contribut8 £nil to the defined benefit pension plan in the year to 31 March 2024. It should be noted that the surplus calculated in thè triennial valuation and the Surplus or deficit calculated under FRS102 differ as the methods require different assumplions to be used. Effectlve January 2025 Traldcraft Exchange assumed principal employer for the defined benefit penslon schame. The insolvency of Traidcraft plc was scheduled to end by 31st Jan 2025. As al start of Jan 2025, the portion of the pension scheme relating to Traidcraft plc had not yel been transferred to the Pension Protection Fund IPPF). Given the Traidcraft PIC porlion of the scheme was still under PPF reviaw, it would not be wound up when the insolvency of Traidcraft PIC was finalized. However, The Traidcraft Foundation portion of Ihe pension scheme ran the risk of being wound up as il did not enjoy similar exemption. To avoid triggering the winding up of the scheme and consequent Section 75 debt being served on Traidcraft Exchange, the Trustees passed a resolulion on 17th January 2025 for Traidcraft Exchange to ￿ase to be particlpating employer and Instead take on the prinicpal employer role in the pension scheme. The Financial Reporting Standard 102 Section 28 requires that Ihe following further disclosure is made about the closed defined benefit pension scheme. The acluaTial valuation has been updated by the qualified scheme actuary to 31 March 2024. Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): 38

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS (Contlnuedj FOR THE YEAR ENDED 31 MARCH 2025 At 31 March 2025 At 31 March 2024 At 31 March 2023 Discount rat& Expected rate of inflation (CPI) Rale of increase of pensions accrued post 5 April 1997 Rate of revaluation of deferred pensions 3.05 2.75 2.75 2.75 3.05 At 31 March 2025 At 31 March 2024 At 31 March 2023 Mortallty rat88 (In yearn) For a male aged 65 now At 65 for a mal& aged 45 now For a female aged 65 n¢Jw At 65 for a fèmale aged 45 now 21.6 22.9 23.9 25.3 21.3 22.6 23.7 25.2 22.1 23.5 24.5 28 The group's share of the assets In the scheme was.. At 31 March 2025 At 31 March 2024 Equities Property Gills Bonds Cash 291,000 253,000 76,000 398,000 721,000 52,000 401,000 789,000 20,000 Total fair value of assets 1,501.000 1,500.000 The actual return on scheme assets was £.65.000 (2024.. 32.(K)O). The amounts recognised in the Consolidated statement of financial activities are as follows.. 39

The Traldcraft Foundalion NOTES TO THE FINANCIAL STATEMENTS {ConllnuedJ FOR THE YEAR EIIDED 31 MARCH 2025 At 31 March 2025 At 31 March 2024 Opening defined benefit obligation Interest cost Benefits paid Actuarial gainl(losses) 1.463,000 67,000 (64,000) (168,000) 1.382,000 63,000 (42,000) 60.000 CIo8lng deflned b8n8flt obllgatlon 1.298,000 1,463,000 Reconciliation of fair value of plan ass8tS W8r8 as follows- Opening fair value ofscheme assets Intèresl income Return on plan assets excluding interest Bonefils paid Olher incomel(expenses) 1,500,000 69,000 (4,000) {64,000) 1,443,000 65,000 (33,000) (42,000) 67,000 1,501,000 1.500,000 Amounts included in th8 balance sheet arising from the charity's obligation in respect of defined benefit plans.. At 31 March 2025 At 31 March 2024 Present value of defined bènefit obligations Fair value of plan assets Restriction of scheme asset (1,298,000 } (1,463,000) 1,501,000 1,500,000 (203,000) (37.000) Deflclt In the scheme In the year ended 31 March 2025 th8 actuarial valuation for ac counting purposed showed a surplus of assels over liabilities at that date of £203.000 {2024'. £37.000). In accowdance with FRS102 a pension scheme asset is recognised on the balance sheet onty to the extent that the surplus may be recovered by reduced future contributions or lo the extent that pension scheme trustees have agreed a refund from the scheme al the balance sheet date. Neither condition was met at the balan￿ sheet date and therefore the susplus was not recognised. Deflned contribution scheme: At 31 March 2001 Traidcraft closed entry to the dèfined benefit scheme and closed accrual of future benefit within that scheme. On 1 April 2001 Traidcraft introduced a Group Personal Pension Scheme (a type of defined contribution scheme) which now has an employerfs contribution rale of 7.5 /. (2024.. 7.5 % ). Traidcrafl Exchange made contributions of £.79.002 during the past year (2023.. £.105,743) and this cost, together with administration charges of £.Nil (2024.. Nil) relating to the closed scheme comprise the pension cosl of £.79.002 (2024: £.105,743) shown in Note 10 to these accounts.

The Traldcraft Foundation NOTES TO THE FINANCIAL STATEMENTS fconlinued) FOR THE YEAR ENDED 31 MARCH 2025 24. Reconclllatlon of net income to net cash flow from operatlng actlvilies 2025 2024 Net deficit for the year (31,772) (544,357) Depreciation and amortisation on tangible assets Loss on disposal of r￿ed assets Interest received Prior year non cash adjustmant (Increase)IDecrease in debtors InGreasel(Decrease) in creditors 6,937 1,605 (2,707) (15,058) { 16,000) 66.861 (464,424) (3,898) { 134,480) 21,279 Net cash flow from op8ratlng acllvities { 141,934) (974,079) 41