Charlty registration number 327461 Company reglstration number 02132178 (England and Wales} THE KARUNA TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 THE KARUNA TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees Vajramudila Armstrong (Chairl Su Yen Tan (Treasurer) Sundeep Grewal Carolyn Milosevic MBE Peter Whlle Secretary Mark C Baird Charity number 327461 Company number 02132178 Prlnclpal address 72 Holloway Road Holloway London N7 8JG Reglstered offlce 72 Holloway Road Holloway London N7 8JG Audltor Gravlta Audi111 Limlled Aldgale Tower 2 Leman Street London E18FA Bankers Clydesdale Bank PIC Studio B 146-158 Kensington High Street London W8 7RL Sollcltors Bales W@Ils & Brailhwaite London LLP 10 Queen Street Place London EC4R 1BE THE KARUNA TRUST CONTENTS Page Trustees, report Independenl auditorfs report 19-21 Statement of financial activities 22 Balance sheet 23 Slalemenl of cash flows 24 Notes lo the fin8nci81 slalements 25-35 THE KARUNA TRUST TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT} FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their annual report and flnanGial slalemenls for the year ended 31 Marcl) 2024. The flnanclal slalemenls have been prepared in accordance with the accounllng policies sel out in note 110 Ihe financial slalemenls and comply with Ihe charity's Deed of Trust, the Companies Acl 2006 and "Accounting and Reporting by Charities: Statement of Recommended Praclice applicable lo charities preparing Iheli accounts in accordance with the Financial Reporting Standard appllcable in Ihe UK and Republlc of Ireland {FRS 1021" {eff&ctive 1 January 2019}. Objectives and activities Karuna works alongside the most excluded people In South Asia, overcoming poverty and dlscrlminalion with locally led educalion, gender equallty and sustainable livelihood projects. We support locally led Civil Society Organisalions ICSO} to become mor8 self-feliant and sustainable, fostering 8 cycle of empowemient and Iransformalion withln communlties by focusing on both financial support and cap8cIty building. This mulll-faceted approach ensures a broad impacl by addressing immediate needs whlle building long- term resilience and capability among partner organisations and commtsnilles. International Development and Grant-making We make grants lo a range of in-counlry and locally led partner CSOS in India. Nepal, and Bangladesh. By providlng people wilh tools, support, and skllls. they become champions of their commuriilles and 8UPPOrt other8. Working with locally led organisations wilhin the affettlèd communities, we support self-reliance and suslainabilily. We facilitate the formation of networks an)ong these organisalions, enabllng them to extend their impact to more Individuals and extend the cycle of Iransformalion beyond their Gommunilies. Over the past year we have continued our strategy of broadening the geographical focus of our work by reaching out to mole communities in Nepal and Bangladesh. Building a strong vibrant community-led voluntary sector Gragsiools CSOS, especially those led by historically marginalised communities. face disproportionate Ghallenges Sn sustalnlng and growlng their work. The impact of the pandemlc, combined with tougher Government regulallons for Indian non-profits and Cuts in overseas development funding, has meant that many of these organisations are struggllng to suslain their work, with larger funders often unable lo support them. In addition to funding projects, we support our project partners and other grassroots CSOS to become more effective and sustainable, combining the expertise of local trainers, capacity builders and advisors with our knowledge and netwotks. Our partners lead the way in Ihls process, while we provide the necessary resources and assistanoe. A considerable proportion of our work goes towards partner and other grassroots CSOS training in effectlV8 project management including strategic planning, financial management, monitoring and evaluation. We also support and Iiaining in good governance, leadership development. safeguarding Ghildren and vulnerdble adults, and fundraising from in-counlry and overseas sources. In this way, Karuna is helping to build a strong, vibrant communily-led voluntary sector that is cap8ble ol empowering people from marginalised communitie5 and bringing about sustainable cliange al a local level. Investing in New International Funding Streams Since 2007, Karuna has invested a small part of ils unrestricted funds into Ihe development of sister organisaliong in Germany and, more recently. in the US. opening access lo new audiences and funding sources for our work with marginalised communities. Afler 17 yearg in operation, Karuna Germany has grown to become a key contributor to our overall Programme, leveraging major grant lunds from German-based sources such as BMZ (the German Government's agency for International Developmenll and the European Union. This year, Karuna Germany's contribution of £1,066,466 was almost h81f of our lolal combined programmes grant funding. Three years since ils establishment, K8run8 US has made considerable progress and is now conlribuling £73.450 lo our income. THE KARUNA TRUST TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Karuna TrLJSt is investing in salary and runnlng costs of these sister Karuna organisalions, as well as providing technlcal support in Programmes, Communicallons, Legal and Fundraising. For Ihis reason, we presenl figures that show the consolidaled income and expenditure for all three organisalions together, as this presents a picture of the actual Income and costs of our fundraising and programme8 work, taken as a whole. Awareness-Raising Through our websile, annual review, social media channels, public talks, networks, and other events, we aim t ralse awareness of the impact of poverly, inequality, and discrimlnallon in Soulh Asia. Fundraising Fundraising 18 conducted through several different streams.. door-to-door campaigns, phone campaigns, dlgital platforms, one-off donations and grant applications lo charitable trusts and Snstilutional donors, In recenl years, Karuna Germany has contributed signlficanlly due to major grants from BMZ and the EU. Public benefit The trustees have paid due regard to guldance Issued by the ChaTity Commission In deciding what activilles the charity should undertake. Programmes Annual Report Introduction As well as providing direct support lo projects, Karuna supports and enables local grassroots CSOS with training and mentoring, typically facilitated by In-counlry experts. This work enables our partners to be part of a strong, vibrant voluntary sector that can identify and respond lo the needs of the most marginalised. In 2023124 Karuna worked directly wilh 15 communily-led partners in India, Nepal and Bangladesh, These local grassroots orgarbisalions have well-developed networks within the most marginalised communities, informed by the lived experience of the issues facing those communities. This means we can target our support directly to the most urgent needs of the most disadvantaged and difflcull lo reaGh communities. At the same time, we aim to collaborate with our own partners and the wider voluntary sector lo help smaller grassroots organisations become more resilient and sustainablé, so Ihat they can continue lo dellver crucial services in an increasingly challenging environment. As well as directly supporting 15 CSOS, we have facilitated capacity building support for a further 24 organisations, coverlng strategic planning, financial management, moniloring and evaluation, governance, leadershlp development, safeguarding, project management and fundraising. Our partners have benefited from training delivered by in-counlry experts, advisors and mentors wlth fundlng and 8UPPOrt provided by Karuna. Progress Agalnst our Strategy in 2023-24 This was the first year of our current Ihree-year strategy and our PTioiilies for project funding were.. To support children, especially girls, lo gel back into full-lime education, to avoid dropping out of school into child labour and avoid early marriage. To protect women from vlolentte by giving them improved access to justice and legal protection. Studies have shown that the Covid years saw a sharp increase in cases ofviolence and numbers ofwomen from marginalised communities being lured into becoming victims of human trafficking. To support migranl workers and people from other marginalised communities lo improve their livellhoods and galn access to government welfare schemes. The pandemlc led to a1Svelihoods crisis significantly affecting already vulnerable migrant and daily wage labourers. To work with the marginalised communities most affected by the impacts of climate change for improved disaster preparedness and climate adapted livelihoods. Dalil and other marglnalSsed communities are on the fronllSnes of climate change, faclng life-threatening extreme heatwaves, droughts and floods that jeopardise their lives, livelihoods, and food security. THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Indicator of progress Overall Target 23-24 ctual 23-24 Number of girls supported lo slay In school and avoid early marriage. 14.000 17,379 Number of women and girls protected from violence and Iiafficking. 34,000 31,000 Number of migrants and people from marginalised communities supported for im roved livelihoods and a¢ces8 lo welfare entitlements. Number of people from vulnerable communities supported lo adapt lo climate change. 55.000 75,394 18,000 5,912 Project Overview and Impact Our mission is lo reach out to people from the most marginalised communities, partlGulaTly th08e most affected by poverly and deeply entrenched forms of social and gender discrimination. Our work focuses on Gender Equalily, Education and Sustainable Livelihoods, supportlng people to free themselves from poverty and accesg lives of opportunity and freedom. During the year 2023124, Karuna directly supported 30 projecls run by 15 locally based partner organisations acros5 nine slates in India, flve dIst￿CtS In Nepal and three districts in Bangladesh. Karuna also supported a further 24 grassroots partner organlsatiolls through our Mailri Women's Empowerment Network (nine partner organlsallons) and through our funding of the Grassroots Resilience Inilialive (15 partner organisalions). During this tlme, our partners worked dlrectly with a comblned total of 151,000 people from marglnalised communities and More widely impacted a broader comrnunity of 813,000 people. Educatlon Education is oflen the first step in supporting people to escape from poverty. Yet. in all the areas where we work, children from marginalised communities - especlally adolescent girls - struggle to either access or slay in fulllime education, remaining at increased risk of dropping out into child labour and forced early marriage. Over the pastyear, our partners supported 17,379 girls and 10,700 boys to stay In school, giving them the opportunity to cornplete thelr education and build brighter futures, free from child labour and early marriage. Gender Equality Violence against women corFtlnues to be a huge problem, especially in marglnallsed communities. Women and girls are especlally vulnerable to domestic or descenl-based violence and trafficking, while those in the poorest communities, struggle lo access legal proleclion or seek justice for thelr abuse. Over the pastyear, our partners have worked directly wlth 31,000 women and girls, supportlng them to protect themselves from gender-based violence and trafficking through increased awareness of legal provisions, training on safe approaches to migration and Improved access to legal protection. THE KARUNA TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Livelihoods In receRI years. our programmes have focused increasingly on the plighl of migrant and daily wage labourers, who all-loo-often lack protection and work securily under employment legislation, making them vulnerable to extreme explollalion. Most Ilve close lo complete deslitulSon, maklng our support more crucial than ever. Over the past year, our partners have provided direct support to 75,394 migrant workers and daily wage labourers, supportlng them to develop rnore secure Ilvellhoods as well as access government entitlements and welfar8 schemes. The marginali8ed communities we work alongside are among the most vulnerable to climate Ghange globally. Typically livlng in remole, rural are85 puls them on the front line of shifting climates, whilè dependence on fragile agriculture makes healwaveg, droughts and flooding especially devastating. Without methods of climate re8ilienGe and adaptlV8 livelihoods, thelr situation will only worsen. In the last year, our programmès have supported 25.912 people In Indla, Nepal, and Bangladesh to become more reslllent to the effècts of cllmate change through adapted farmlng technlques and ¢ommunlty-based disaster preparedness. Project Highlights Networking and Civil Society Development Grassroots Resilience Initiative Project. Partner- Soulscale This newly established project aims to provide much needed tralning and capacity building support lo leaders from 40 CSOS working directly with marginalised communities across seven states in India. In recent years, the environment for local communlty-based organisalions has become much harder with new Indian Government restrictions and lighler regulalions affecting the rec8ipI and use of funds from overseas funding organisalions like Karuna. The projecl aims to equip a new generation of community leaders with the Financial and Leadership skills they need to run effeGtive organisalions and maximise their impact in Ihelr target comrnunilies. In Its second year of operation, the project worked wlth 35 organisations with a comblned impact on 296,521 dlrect beneficiaries from the most marglnallsed communitle5. The project has been particularly successful in empowering partner organisatlons leverage new fundlng and so far, participating organlsatlons have been supported to ralse an additional £611.000 from local and international soureès. Education Strong GirlslLearning Champions Project. Partner: Green TaralREED, Nepal The project gives girls from margirialised Dalit and tribal communities in Southern Nepal access to quality education, enabling Ihem lo complete primary school and transition lo secondary education. In the last year. the project engaged directly with 5.983 girls and brought positive benefits to a further 12,889 parents and other famlly members. Inclusion of Disabled Children. Partner.. AAINA This project, which Karuna started 8UPPOrting in 2022, gives 250 children with disability the opportunity to become inlegraled into the mainstream school system. Over the past year the project engaged directly with 430 children in the area around Bhubaneswar in Odisha, India. bringing beneflts to 1,065 family and other communlty members. THE KARUNA TRUST TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Education for NTIDNT Communities. Partner.. Nirman Nirman Is a community-based organisalion working with some of Ihe most marginallsed and discriminated-against communities in India.. The Notifted and De-nolified Tribal Communities, who were previously designated as "criminal castes., Over the past year, this project has worked to support 987 chlldren from these vèry dlsadvantaged communities to continue thelr education. beneflttlng a wider communlty of 1,605 people. Women's Empowerment Women's Empowerment Network. Partner.. Maitri The Mailri Women's Empowerment Nelwork was Initiated in 2009 and currently consists of nine Karuna-supported Civil Society Organisalions working with women from marginalised communities in nine States in India. Mailri Campaigns focus on building women's leadership Capacity 2nd prevention of violence against women. Over the past year the network has engaged dlrectly with 31.242 peoplg and a further 76,465 benefitting morè broadly. Dignity for Women - Challenging Chhaupadi. Partner: Green Tara/REED Nepal Thls project sets out lo challenge the traditional and degrading practice of Chhaupadi (Menstrual Exile). In remote areas of Western Nepal, women are excluded from their homes and forcod to live in unsafe huts during their menstruation, ofien at considerable risk to their health and safely. Through a serles of targeted information and awareness raising campaigns with key stakeholders (including mothers and local communlty leaders) the project works directly with women and girls from 36 villages in Western Nepal promoting safe menslrualion practices. The project, which started Sn 2021, is a joint initiative between Karuna Trust and Karuna Germany with BMZ providing 75°/0 funding of the total four-year budget of £535,000. Over the past ygar the project has worked with 12,734, glrls, mothers, and other stakeholders, wlth a wider impact on 17,331 Indlrect beneftclarles. Voice of Women Project. Partner: Jan Sahas This project provldes legal and counselling support for women vi¢tim8 of violence across four slates in Western and Central India, enabllng thèm to access justice and legal protection through a criminal justice system that all too often doubly dSscriminates against women from marginalised communities (based on both caste and gender). By trainiiig volunleer paralegals, known as barefoot lawygrs, and providing access to free legal representation, the projecl aims lo provide readily accessible legal aid for women in need. Over the past year, the project has worked dire¢tly with 1,084 women and engaged wlth a further 4,344 through trainlng and awareness raising campaigns. Safe Migration Project. Partner.. Pragya This piojecl, which started in 2021. aims to Provide 15,000 women and girls from vulnerable border areas of Wesl Bengal proleclion from Gender-Based Violence and human trafficking. In the past year. 9.033 women have received training and counselling in Safe Migration, while awareness campaigns have reached out to a further 3.505 peoplè In areas close to the India-Bangladesh border. Shelter for Homeless Women. Partner: URJA, Mumbai This project provides saf8 shelter and rehabilitation lo women and girls who arrive at Dadar one of the main railway stations in Mumbai having run away from home, often lo escape domestic violence and abuse. Most of the girls need psychological counselling lo recover from trauma as well as voealional skills training for employmenl. In 20231 24, the project enabled 1,329 homeless young women and survivors of gender-based violence to access safe spaces, to bulld healthy relationships and develop coping strategles to enhance thelr quallty of life and reslllence. THE KARUNA TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Sustainable Livelihoods Participatory Climate Adaptation. Partner: Pragya, India & Bangladesh This project, which started in 2021, works wllh cyclone affected households in 400 villages across four dislricls of Bangladesh and West Bengal in Eastern India. The projecl supports smallholder farmers to adapt their agricultural livelihoods lo the changing weather patterns caused by climate change. Allogelher, the project aims lo support 4,000 smallholder farmers lo develop new climate-adapled livelihoods by providlng access lo t8rgeted information about climatè adapled agricultural practices. In addition, 4,000 women are being mobilised and organised into peer support groups for training in livelihood skills and prolection from gender-based violence. The project is a joint nitiative between Karuna Trust and Karuna Germany with major funding coming from BMZ. Over the past year the project has worked directly with 10.528 vSllagers in four dlstricts of India and Bangladesh. with a further 52,640 people from marginalised communltles beneflttlng indirectly from better disaster prèparednBSS and increased family incomes. Migrant Labourer Resilience Project. Partner: Jan Sahas This project, started in June 2020, was a response to the pllghl of mllllons of mlgranl labourer8 who had lost their jobs as result of nationwide lockdowns and had been forced lo return, often on foot, lo their home villages. Over the past year. the project has worked in 600 villages across slx IndSan slates helping unèmployed migrants access government welfare schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme IMGREGA} which guarantees a basic level income lo unemployed daily wage labourers. A team of 60 communlty mobilisers based Sn slx reglonal m5gration centres have provided outreach to 120,000 households, helplng a total of 57,697 families register for government welfare payments. In addltlon, 2 helpllne offerlng advi¢e and counselling to returning migrants has received 250.000 calls over the past year. Sustainable Livelihoods Project. Partner: SSEVS, Bihar Located in the remote rural West Champaran dlstrSct of Blhar, thls project supports smallholder falmers from very marginallsed communllles achleve greater economic security through improved sustainable farming methods and the formation of producer federations. Over the past year. the project worked directly wlth 286 farmers benefitting a wider Community of 1,144. THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Karuna supported projects Project Names,." Overall Project Objectives NDIA AAINA: Odlsha Aryaloka- Chhaltisgarh Supports 250 children with disabililies lo allend mainstream schools. Provides Computer Edutalion and IT Tralning to 243 children from Raipur slum dislricls. Provides Compuler Education and IT Tralning to 2,225 children from Nagpur slum dislricls. 1.500 children from 20 Amravali schools receive training in prevenlion of gender- based violence. TBMSG Nagpur= Women's Social Earty gducalion support, health, and livelShoods training for 2,500 women and Project girls. ITBCI: Kalimpong Ongoing support for a library and visitors, centre on the sile of the former ITBCI school. Provision of quality education and rights awareness among 4.200 children from Dalil Communities around Dewas in MP. Provision tsf skills training and enterprise support lo 600 women from ex-manual scavenger communities. Empower 40.000 mlgranl workers and their f2mllles across three Madhya Pradesh dislricls. by providing access to social security schemes, raisa awar&ness on safe migration and provide access to legal Se￿iCe$. 8,000 Dalil and Adivasi IDA} women in 12 dlslricls and four states affected by violence h8ve access lo legal services and are supported by compelanl civil society organisalions. To capacity build 40 newly established grassroots Civil Society Organisalions so they can work effectively with most marginalised communities. A network of 22 Civil Society Organisalions working across eight slales lo combat gender-based violence reaching 20,200 women from Dalit and other marginalised communities. Supporting 400 children from Nolilied l De-Nollfied Tribal children INTIDNT) Communllles in rural Maharashtra lo complele Ihelr educallon 200 families from NTIDNT tribal communities achieve improved food s8curity through support for iural livelihoods. Enabling 2,455 girts from marginalised Communities in Tural MaharashlFa lo gel Ihe education they need lo transform their lives and secure Ihelr future. Nishlha.. Bhalobasha, Wesl Bengal 100 children with severe disabllities are supported lo all8nd a day care centre pioviding care and rehabill￿tIOn. 320 girls from marginalised communities in Wesl Bengal are supported lo complete higher secondary Education. Nishlha.. Nalun Diganla {posl 645 girfs and Ihelr mothers supported lo remain in school and avoid early cyclone) project marriage. Nishlha.. Sikhai Haliyar 800 girls and their parents supported to slay in school and avoid early marriage. Pragya: Ending Violence Against Providing 15,000 women and girls from vulnerable border areas of Wesl Bengal Women in Wesl Bengal protection from Gender Based Violence and human trafficking. Pragya.. India Climate Adaptation The project lakes place in trwo dislricls in Eastern India and empowers communili@s lo manago climate risks and disasters benefrtting 20.000 households in vulnerable river and coastal règions. SSEVS.. SLIDE Livelihoods. 8ih8r 500 Dalil larrners are being trained lo achieve sustainable income through vegetable farming in 12 villages ol Wesl Chainparan district in 8ihar. 800 homeless young women and survivors of gendar-based violence enabled lo access safe spaces and build healthy relationships and coping strategies that "enhance their quality of life and resilience. Aryaloka.. Nagpur Bahujan Hitay.. Aniravati Jan Sahas.. Child Rights Project Jan Sahas.. Livelihoods Development Jan Sahas- Migrant Labourers Jan Sahas.. Voice of Women Soulscale.. Grassroots R8silience Initiative Mailri Women's Network.. India NIRMAN". Educate and Empower NTIDNT NIRMAN: Livelihoods NTIDNT NISD.. GI￿S. Education prolect Nishtha.. High8r Secondary Girls URJA.. Journey wilh Homeless Young Women THE KARUNA TRUST TRUSTEE5' REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 NEPAL Green Tara Nepal.. Dignity for Women 4,000 women and adolescent girls from 36 vlllages In rural Vvesletn Nepal are empowered lo make well-informed decisions about their menstrual practices and health in supportive onvironments. To support 1,577 girls from marglnallsed communilles in Southern Nepal to slay in school. 9,500 girls from marglnallsed communities in Southern Nepal are supported lo slay in school. complete their education and avoid early marriage. Promoting disaster resilience and climate adaplalion among margin81ised communities In two dlstricls Ihal are most vulnerable to adverse effects or climate change, directly benefillng 2.000 smallholder households with outreach lo an estlmated 20,000 households in target area. The project works with 4,900 children and young people in schools in Soulhern Nepal to raise awareness of climate change and strengthen th8 climate resilience of local communities. The project works with 1.000 children and adults from marginalised communities in Kapilvaslu district, lo support children's access lo education and increase partlcipalion of women in local governance. BANGLADESH Green Tara Nepal: Strong Girls REED.. Learnlng ChamplonslSG Pragya Solutions.. Climate Resilience REED.. Strengthening Climat8 Resilletjce FEDO.. Mahila Saman Pragya Solulions.. Climate Adaptallon The project spans three dislticls of Bangl8desh, empowering communities lo manage climate risks and disasters, benefiting 20,000 housgholds in vulnerable river and c085tal reglons. Grambangla.. Education for children Informal primary education is provided lo 215 children of waste pickers at of waste piGkers. Dhaka an education center near the waste gile (with the nearest school located four km away}, alongside advocacy efforls for improved provisions for waste picker communities. THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Karuna Family Sinoe 1980, Karuna (previously Aid for India) h8s mobilised resources lo transform the Ilves of people in South Asia. We have grown and now have bNO sisler charities- Karuna Germany and Karuna USA. Together, we have built a network of organlsalSons that work together and share resources and skills lo support our programs in South Asia. Collaborating in this way has enabled us to significantly expand the scale of Ihe projects we fund and build new ones. W8 have been Gollaboraling wilh Karuna Germany since 2007, funding several major projects together. Thls successful partnership inspired us lo sel up and launch Karuna USA, wilh the goal of widening our base, reaching new funders, and generating more support. Llke Karuna Germany, Karuna USA has attracted a hlghly skilled staff and Board of Trustees. Karuna Germany Karuna Germany's income for last year was E945.71512022123.. É1,332,354) and supported a total of 86,000 people dSreclly (2022123.. 67.401 } Ihrough 11 projects in India, Nepal and Bangladesh with 242,500 benefilling rnore broadly12022123: 239,600}. The Karuna Trust and Karuna Germany have a close working relationship and jointly fund and manage many of the same prolecls. We collaborate on funding applications and last year secured funding lor a Thlrd Phase of our Mailri Women's Empowerment Project. Project highlighls include: Maltri Network Project Phase three: Budget of É1,340,000 for the period 2024-2028. comprising £1,000,000 from BMZ and É340,000 In matched funding from Karuna Trust and Karuna Germany. Dignlty for Women Project Nepal.. prgV8nlion of menstru21 exile. Budget of É633,000 over 3 years during 2021-24, funded by E475,000 from BMZ and E158,000 in matched fiinding from Karuna Tmst 2nd Karuna Germany. Particlpatory Cllmate Change Adaptation: India and Bangladesh. Budget ofÉ670,000 over three years12021- 2024}, with E499.000 provided by BMZ and £171,000 in matched funding from Karuna Trust and KanJn8 Germany. Learnlng Champions Nepal: Education for Girls Budget of E853,000 over four years (2022-20261, funded by 640,000 from BMZ and É213,000 in matched funding from Karuna Trust and Karuna Germany. Volce of Women Project.. Prevention of Gander Based Vio18nce. Budget 01 É551,000 over four yeaTS (2023-2027), comprising É416,000 from BMZ and É139,000 in matched fundlng from Karuna Trust and Karuna Germany. Karuna USA Karuna USA stands in solidarity with communities barred from achieving a falr and decent life and collaborates wllh local partners to address these challenges. The goal Is to ensure that those living in poverty and insecurity, wlth limited accegs lo education. most affected by climate change or denied their rights. can access opportunities for a better life. Karuna USA mobilises support from people in the United States, identifying resources and engaging partners to uplift marginalised groups in South Asia. During ils Ihird year of operations, Karuna USA raised £75,85212022123'. £63,207) in donations of which £1,059 12022123- £30,081) came from TTUSts aTrd Foundalions and £54,253 {2022123: £20.325) from Major Donors. This perfomance enabled Karuna USA to make grant payments lo The Karuna Trust of £73,45012022123- £68,681). The Karijna Trust continued to suppori Karuna USA with grants lo cover start-up and operating costs, lolaling £83,99712022123: £84,921). This represented a net contribution from The Karuna Trust to Karuna USA of £10,547 {2022123.' £16.240). THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT} (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 CONSOLIDATED ACCOUNTS FOR KARUNA UK, GERMANY & USA FOR THE YEAR ENDED 31Karuna UK Karuna DE Karuna USA MARCH 2024 Total funds Total funds 2023124 2023124 2023124 2023124 2022123 Income from: Donations and legacies Grants K-UKIK-USA Other income 2,037.752 73,450 71,582 2.182,784 807,958 75,852 2,921,563 3,370,835 83,997 10,547 16.240 71,582 40,801 159.849 3,003,692 3,427,876 807,958 Expenditure on: Raising funds Grants K-UKIK-USA Charitable aclivltles 806,319 83,996 1,341,110 10.901 78,084 895,304 807,243 73,450 10,547 16,240 10,744 2,418,300 2,325,253 1,066,446 Total resources expended 2,231,425 1,077,348 162,278 3,324,151 3,148,735 Net Income l exp8ndilure -48,641 -269,389 -2.428 -320,460 279,141 Fund balanc8s at 1 Apri5 2023 1.245.291 422.877 11.536 1,679,704 1,400,563 Fund balances at 31 March 2024 1.196,650 153,488 9,108 1,359,246 1,679,704 10- THE KARUNA TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT} (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 .CONSOLIDATED BALANCE SHEET FOR KARUNA UK, GERMANY & USA AS AT 31 MARCH 2024 Karuna UK Karuna DE Karuna USA Total funds Total funds , 2023124 2023124 2023124 2023124 2022123 Fixed Assets Tangible assets 227,784 227,784 233,422 Current Assets Debtors 'Cash at bank and in hand 398,100 636,655 1 1,034,755 398,100 323,652 9,108 799,252 1,174,233 9,108 1,197,353 1,497,885 153,488 153,488 Creditors: amounts due within one .year 65,889 65,889 51,603 Total Assets less Current Liabilities 1,196,651 153,488 9,108 1,359,247 1,679,704 Funds Unrestricted funds Restricted funds 1.103,280 93,371 9,108 1,112,388 246,859 1,199,025 480.679 153,488 1,196,651 153,488 9,108 1,359,247 1,679,704 Note.. Figures for Karuna DE & USA are from pre-audiled accounts, contain interorganisational transactions, exchange rate estimates and are indicallve only. The accounts of the individual charities include transactlons within the "group" The total funds are the consolidaled Position of the °group° with any group transactions removed and as such do not reflect the total of the three individual charities combined. 11 THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 harilable Activities iiicluding Grants lo Partners Karuna UK Karuna DE Karuna USA Total 20231 24 Total 2022 123 Grants to Indlan partners AAINA 29,679 29,679 12,013 decom 25,762 ryaloka- Nagpur 27.25 27,259 28.996 ryaloka - Chhattlsgarh 10,804 10,804 11.490 BH Amravati 44,609 8,519 53,128 49,754 FHSM 18,949 18,949 413 Green Tara Foundation Vishranlwadi 6,416 6,416 12.60 ITBCI 4,613 4,613 4,65 Jan Sahas 240,324 112.672 352.996 288.394 Maitri Network 49,994 115,525 165,519 182,929 Nirbhaya 253,52 253,528 72,242 Nirman 79,846 79,846 59,611 NISD 44.381 44.381 39,711 Nishtha 129,967 129,967 140,393 PHIA Foundation 3,444 4,255 7,699 30,372 Prabodhini self-defence Iraliilng 5,67 5,679 5,975 Pragya 80,994 70.222 151,216 210,89 Soulscale 165.834 165,834 103,984 SSEVS Bihar 19,467 19,487 32,890 SLtrkh2vali Tru81 4,802 4.802 4,688 BMSG Nagpur 23,973 23,973 36,478 TBC India Covid Emergency Relief 1,842 Urja 52,502 52,502 54,40 THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Grants to Nepalese partners FEDO 20.261 20,261 19.883 Green Tara Trust Nepal 15,784 223,545 239,329 348,515 NNDSWO Nepal 15.427 Pragya 71,491 71,491 70,159 REED 56,020 182.413 238.433 233,162 Grants to Bangladeshl partners Grambangala Unnayan Committee 33,087 33,087 Pragya Solutions 18,335 70,222 88,557 120.279 Grants to German partners FEB Educational Project In Germany 2,525 Karuna DE 18,618 18,618 4,772 Grants US partners Karuna USA 40,006 40,006 43,888 Sub-totals 1,292,530 1,065,529 2,358,059 2,269,110 Governance & other charitable costs 59,126 918 10.744 70,788 72,383 1,351,656 1.066,446 10.74 2,428,847 2,341.493 13 THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT} (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financial review Income The lolal income received by The Karuna Trust for the year ended 31 March 2024 was £2,182,78412022123- £2,198,853), a slight decrease of £16,069 year-on-year. In the year lo 31 March 2024, total income from Regular Giving was £1,431,18412022123'. £1,419.919). Our Regular Giving incotne is tyPIC8lly derived from several sources: primarily door-lo-door campaigns. give-as-you-earn. telephone upgrade campaigns and online giving. We rely heavily on volunteers to run these ¢ampaigns. Despite a challenging economiG Glimate, we were able lo run three door-lo-door appeals and one telephone upgrade appeal. One-off donations from individual donois raised £101,809 {2022123: £210,143). Our Christmas Appeal 2023 raised a further £77.680 plus Gift Aid (2022123.. £94,111) for Girls, Education prolecls Sn lTrdia. We have been developing our online presence through dlgilal campaigns, Including via the Global Giving platform which is based In the USA. This year income from dlgital Gampaigns was £34,79312022123: £91,387). During thè year we recelved £69,119 in legacy gifts {2022123.' £58,265). We deeply appreciate that Karuna is considered for gifts left in wills, no matter how large or small.. they make a significant impact on our work. Incomfj from grant giving trusts was £318,113 (2022123.. £211,571 } of which £289,913 was reslricled income. We arè deeply grateful lo our Trust partners, with whom we work closely, for their ongoing support of our work in India, Nepal, and Bangladesh. Expenditure Our expenditure for the year was £2,231,425 {2022123= £2,209,933}. Over the past year, The Karuna Trust committed £1,365,980 to programmes delivery, a decrease of£67,985 from the previous year (2022123.. £1,433,965)- The reduction in programme spending reflects a shift in fundlng responsibilities from The Karuna Trust to Kaiuna Germany for our work in Nepal. Of this total, direct grants lo partners totalled £1,011,300 for the year {2022123: £1,081,790). During the year Karuna Germany increased its grant expenditure lo N8palese Partners from £196,177 in 2022123 to £367,574 an Increase Sn Invesln)ent in our work in Nepal of £171,397. This has enabled us lo expand our programme of work in Nepal and reach out to many more marginalised and remote communities. Grant paym8nts lo Partner organisalions working in India was £754,3611£2022123- £759,152). Programme m8nagemenl expenditure was £354.68012022123.' £352,175). This includes partner training. partner workshops, capacity building gnd awareness-raising activities carried out by in-courktry professional consullanls and UK and Germany~based programmes team. Over the past year, we have slrenglhened the support we give lo partners, particularty emphasising financial management, compliance and the safeguarding of children and vulnerable adults. For many years, we have paid grants lo Indian partner organisalions in Indian Rupees. This has helped us with monitoring budgets and protected paringrs from variations in exchange rat8 changes. How8ver. during the year. new banking regulations in India required all foreign-made granl payments lo be paid in Sterling rather than Indian Rupees. Our aocounls for 2023-24 include an exchange rate loss of £11,103 incurred when we closed oul a forward contract due lo this regulatory change. We also made grant paymenls of £83,997 to Karuna USA12022123 £84,921) and Karuna Germany of£13.784 12022123 £3,600). During the year. Karuna USA made grants of £73,450 to The Karuna Trust which was applied to our overall programme grants. 14- THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Al the year-end, we carried £1,668,122 in future granl commitments lo partners12022123.' £1.621,5211. These are contingent liabilities, not conlraclual, and therefore do not appear on our balance sheet and are not included in the reserve caloulalion. Nonetheless, they represent a very real responsibility for The Karuna Trust. The cost of generating funds for the year was £806,318 (2022123: £714,521). Of this figure, £482,39012022123.' £428.640) was incurred Sn dlrecl fundraising costs and the balance of £323,929 (2022123= £285,881) in adminislralive support costs (including IT, financial processing, and communi¢alionsl. This means that our direct fundraising costs this year were 22'/o of income {2022123'. 19.8 /ol. a tremendous achlevement by our fundraising team in whal continues to be a challenging and unpredictable fundraising environment. Governance costs for the year were £59,126 (2022123.. £61,450}. Overall, the charity recorded a small deficit for the year of £48.640 (2022123= £11,083) drawn from reserves. Reserves Policy At the end of Ihe year, the charity had lolal resetves of £1,196,651, a decrease of £48,640 against the previous year. An analysis of the resetve amount is as follows: Unreslricled Operating reserve- £875,497 (funds for the general operation of the charity) Unreslricled Fixed Ass81 resewve.. £227,784 {langlble nel assets net of bank loan) Restricted funds.. £93,370 (funds for specific projects) The charity's reserves policy aims lo maintain an opgraling reserve equivalgnl to 4 months cos￿, which, on 31 March 2024. 8qualed to approximately £740,000. Iiivestment Policy and Performance The charity's surplus funds are held in interest-bearing accounts with our bankers. We continue to do 811 we can to obtain the best lates of interest. Risk Management The Trustees have assessed the major rlgks lo which the charity is exposed and are satisfied that systems are in place lo miligale the major risks_ The Management undertakes a full annual review and rggular pgriodic reviews of the risks that the Charily is exposed lo and reports back lo the Trustees accordingly. The risk register is then updated. The revlew for the year 2024-25 will be conducted in June-July 2024. The next full review thereafter is scheduled for June 2025. 15 THE KARUNA TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Looklng Ahead: the next two years Since 1980. The Karuna Trust has mobilised resources to transform the lives of people in India, and, niore recently, in Nepal and Bangladesh. Now, supported by our two sisler charilies Karuna Germany and Karuna USA. we collaborate closely to support marginalised communllles in the region. As we enter the second year of our Ihree-year strategy period. our focus remains on enhancing our impact without significantly increasing costs. To ensure sustainability, we will conlinue diversifying our funding, amplifying our voice, and increaslng our outreach. By end of 2026 we aim to have: Developed and slrèngthened the Telationships with Karuna's sister charities. 2. Increased our Income by reaching new audiences and deepenlng our connection with our existing 8UPPOrters, as w911 as increasing support by inviting people to fundraise for us. Developed fundraising expertise by protecting, deepening, and sharing our unlque appmach, while also connecting wilh the wider fundraising world to draw on best practice. 4. Engaged the wider Buddhist community lo help champion our work. Collectively, Karuna (The Karuna Trust, Karuna Germany and Karuna USA) is in a stable financial position. This foundalion provides us with the resources needed to continue our work and make a positive Impact on the lives of those we serve. To ensure our contlnued success and growth, we have ambitious goals to increase our income by 200/0 during this Ihree-year period. This will require a focused effort to expand the organisalion's re8ch, deepen ils impact and secure new resources. Our aim during this Ihree-year period (2023-261 Ss to invest £8.8 million in our progr8mmes. Lasi year, we made significant progress by achieving 280/0 of Ihls target, with an 2tt1ual investment of £2,428,847. Our strategic programmes priorities lor the nexl three years will focus on the key areas of girls, education, prevention of violence against women, protection of migrant workers and their livelihoods and enhancing climate resilience of marginalised communities. Our strong community connections in sorne of the most-overlooked and hard-to-r8ach places mean that we can mobilise our resources and reach those that others c8nnol. In addilion, we will continue to 8lrenglhen and extend capacity building and mentoring support to increasing numbers of grassroots and community led CSOS, helping them become morè sustainable and conlribuling to a vibrant and responsive civil society in the countries where we work. structure. governance and management The charity is a company limited by guarantee and reglslered with the Charity Commlssion as a charity- The Irustees, who are also the directors for the purpos6 of company law. and who served during the y83r and up lo Ihe date of signature of th8 financial statements were.. Vajramudila Armstrong {Chair) Su Yen Tan (Treasurer) Sundeep Grewal Carolyn Milosevic MBE Peter While 16 THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees give their lime on a voluntary basis lo the management and governance of the charity. They meet four limes a year to review (he progress of the charity in all ils aclivilies and lo make major declsioiis about direction, policy, staffing and grants to partner proleots. Vvhen needed, the Trustees establish working groups to address specific issues and report their findin9S to the full board. The Trustees of The Karuna Trust are also Trustees of Aid for India (founded 1980), which is the origlrial name for the Trust. All the Trustees are members of the ¢ompany and guarantee to contribute £1 in the event of a winding up. None of the Trustees has any beneflcial Interest in the company. Through the CEO, the Trustees liaise closely with the Senlor Management Team, Fundraising, Programmes and Finance Teams, who are paid staff and are responsible for ensuring that the standard of Care required by the TTUSt@es is Carried out in tho areas of grant management, govornance, fundraising and publicity. The Trustees are 11 members of the Trtralna Buddhist Order. The day-to-day managemenl of the charity is delegated to the Chlef Execullve Officer, who serves as the primary liaison with the Tiustee body. The CEO ensures the effective implementation of the charity'.s slralegic plans and policies, providing regular updates 2nd leedback lo the Trustees. This role Is crucial in maintaining a cohesive and Iransparenl relationship between the operational team and the governance structure. New Truste8s attend an InduGtion meeting with the Chair and CEO where they receive briefingg on their legal obligations under charity and company law, the content of the Memorandum and Artlcles of AssocS2lion, the Business Plan and the current flnanclal sltuatlon as set out in the lalesl published accounts. During Ihe induGtion, the Trustee may also meet other senlor staff. Trustees are encouraged lo attend appropriate external tralnlng evgnls so they may keep abreast of Iheir duli8s and Cltrrenl developments. statement of trustees. responsibilitles The trustees, who are also the directors of The Karuna Trust for the purpose of company law, are responslble for preparing the Trustees. Report and the financial slalements in accordance with 8pplicable law and United Kingdom Accounllng Standards (United Klngdom Generally Accepted Accounting Practice). Company Law requires the trustees lo prepare financial slalemenls for each financial year which glve a true and fair view of the state of affairs of the chaiity and of the incoming resources and application of resources, including the Income and expenditure, of the charitable company for that year. In preparing Ihese financial statemerkls, the trustees are required lo.. select suitable accovnling polScies and then apply them consistently., observe the methods and princlples in the Charities SORP., mak8judgements and eslimales Ihal are reasonable 8nd prudent., and prepare the financial statements on the going concern basis unless it is inapproprtale to presume that the charity will Gonlinue in operation. The Iruslees are responsible for keeping adequate accounting recoids that disclose with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chaTity and hence for taking reasonable steps for the prevention and deteGlion of fraud and other irregularities. Auditor In accordance Wlth the company's articles. a resolution Proposing that Gravila Audit11 Limited be reappoinled as auditor of the company will be put al a General Meeting. 17- THE KARUNA TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 The Iruslees, report was approved by the Board of Trustees. Vajramudila Armstrong (Chair) Trustee Su Yen Tan (freasurer) Trustee Date.. 18- THE KARUNA TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE KARUNA TRUST Oplnlon We have audited the financial slalements of The Karuna Trust (the 'charily ) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes lo the financlal statements, InGludlng significant accounting policies. The financial reporting framework that has been applied in their PTeparallon Ss app5icable law and United Kin9dom Accounting Standards, including Financial Reporting Standard 102 Tl?e Financial Reporting Standard 8pplicable in Ihe UK and Republic of Ireland {Uniled Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial slalemenls.. give a true and fair view of the slate of Ihe charitable company's affaiis as at 31 March 2024 and of ils incoming resources and application of resources, for the year then ended., have been properly prepared in accordance wilh Unlted Klngdom Generally Accepted Accounllng Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audll In accordance with International Standards on Audlllng (UK) {ISAs {UKII and applicable law. Our r8sponslbilities under those standalds are further described in the Auditors responslbililies for the audil of (he rinancial stalemenls seGtion of our report. We are independent of the charily in accordance with the ethical requirements that 8r6 relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with Ihese requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ConclusSons relating to going concern In audltlng the financial statements, we have concluded that the trustees, use of th8 golng concern basis of accounting in the preparation of the linanci81 statements Ss appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively. may cast slgnificanl doubt on the charity's ability lo conllnue as a going concern for a period of at least twelve months from when the fin8nclal 5talemenls are aulhorised for issue. Our responsibilities and Ihe responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. other Information The other information comprlses the information included In the annual report olher than the financial statements and our auditor's report Ihereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the fsnancial statements does not cover the other informalSon and we do not express any fomi of assurance conclusion Ihereon. Our responsibility is to read the other Information 2nd, in doing so, Consider whether the other informalion is materially inconsistent with the financial slalemenls, or our knowledge obtained in the course of the audil, or otherwise appears lo be inaleitally misslaled. If we identify SUGh m8terial inconsistencies or apparent material misstalemenls, w8 are required lo determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatem8nl of this other information, we are required lo report that faGI. We have nothing to report in this regard. Matters on which we are requlred to report by exceptlon We have nothing lo report in respect of the following matters in relation to which the Charities {Accounls and Reports) Regulations 2008 require us lo report lo you if, in our opinion.. the information given In the financial slalemenls is inconsigtent in 8ny mal8rial r8specl with the Irusl09s' repori. or sufficienl accounting records have not been kept," or Ih8 financial slalemenls are not in agreement with the 8ccounling records- or we have not received all the information and explanations we require for our audit. 19- THE KARUNA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUEt)) TO THE TRUSTEES OF THE KARUNA TRUST Responslbllltles of trustees As explained more fully in the slalemenl of trustees, responsibilities. Ihe trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the flnancial slalemenls and for belng satisfied that they glve a true and lair view, and for such internal control as the trustees determine is neGessary to enable the preparation of financial statements that are free from material misslatemenl, whether due lo fraud or error. In preparlng the financial slalements, the trustees are responsible for assessing the charity's ability to continue as a golng ¢onGern. disclosing. as applicable, matters related to going concern and using the going concem basis of accounling unless Ihe Iruslees ellher Intend to liquidate the charitable company or lo cease operations, or have no realistic allernallve but lo do so. Audltor's responslblllties for the audlt of the flnancial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial slatemenls as a whole are free from material mi88tatemenl. wh8lher due to fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted In accordance with ISAS (UK) will always dete¢l a material misslatement when il exists. Mlsstatements can arise from fraud or error and are considered material If, individually or in Ihe aggregate, they could reasonably be expected lo inluenGe the economic decisions of users laken on the basi8 of these financial statements. The extent lo which our procedures are capable of delecling irregularities, includlng fraud, Is detailed below. We ensured that the engagement team collecUv&ly had the appropriate competence, capabilities and skills to identify or recognlse non-compliance with appllGable laws and regulations. The laws and regulations applicable to the chaftty were Identified through dlscusslons with trustees and other management. and from our commercial knowledge and experience of The Karuna Trust. Of these laws and regulations, we focused on those that we considered may have a direct rnaterial effect on the financi81 statements or the operations of the charity, including Charities Act 2011, CompanSes Acl 2006, taxation legislation, data protection, anli-bribery, anli-money-laundering, employment, environmental and health and safely legislation. The extent of compliance with these laws and regulations identified above was assessed through rnaking enquiries of management and inspecting legal ¢orFespondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert lo instances of non-compliance throughout the audit. Wo assessed the suscÈptibllity of the company's financial statomenls to material misstatement, including obtaining an understanding of how fraud might occur, by- making enquiries of management as lo where they considered there was susceplibilily lo fraud, their knowledge of aotual, suspected and alleged fraud., considering the Sntemal Controls in place to mitigate risks of fraud and non-compliance with laws and regulatlons-, and understanding the design of the company's remuneration policies. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedur8S to identify any unusual or unexpected relationships., tested journal entries lo identify unusual Iransactlons.. assessed whether Judgemenls and assumptions made in determlning the accounting eslimales sel out in note 2 were indicative of polenlial biag., and investigated ihe ralionale behind significant or unusual IransaGlions. In response lo the risk of irtegularllles and non-compliance with laws and regulalions, we designed procedure5 whlch included, but were not limited lo.. agreeing financi818lalem8nl disclosurgs to underlying Supporting documentation.. reading the minutes of meetings of those charged wilh governance., and enquiring of management as lo actual and potential liligalion and claims. -20- THE KARUNA TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE KARUNA TRUST There are inherent limitations in our audit procedures described above. The more removed Ihat laws and regulations are from financial transaclions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures requSred lo Sdentify non-compliance with laws and regulations lo enquiry of the directors and olher management and the inspection of regulatory and legal correspondence, if any. Malerial misslatemenls that arise due lo fraud can be harder to delecl than ihose that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's web51te al.. hllps'.11 www.ffC.org.uklaudilorsresponsibililies. This description forms part of our audiloT'S report. Use of our report This report is made solely to the charity's trustees, as a body, in accordance wilh part 4 of Ihe Charities {Accounls and Reports} Regulations 2008. Our audit work has been undertaken so Ihal we might state lo the charily's Iruslees those matters we are required lo stale to them in an auditovs report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibilify lo anyone olher than the charily and the charity's Iruslees as a body, for our audll work, for this report, or for the opinions we have formed. Paul Woosey FCA, FCCA (Senlor Statutory Auditor) for and on behalf of Gravita Audit11 Limited Chartered Accountants statutory Auditor Aldgale Tower 2 Leman Street London E18FA Gravita Audit11 Limited 15 eligible for appointment as auditor of the ch8rity by virtue of its eligibilily for appointment as auditor of a company under section 1212 of the Companies Act 2006. 21 THE KARUNA TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restri¢ted funds funds 2023 2023 Total 2024 2023 Notes Income from: Donations and legacies Investments 1.771,164 71,582 340,038 2,111,202 71,582 1,871,929 40.801 286.123 2,158,052 40,801 Total Income 1,842.746 340,038 2.182,784 1.912,730 286,123 2,198.853 Expenditure on: Raising funds Charitable activities 788,886 1,138,069 17,433 806,319 287,037 1,425,106 697,711 1,248.733 16,810 246,682 714.521 1,495.415 Total expenditure 1.926.955 304,470 2.231,425 1,946,444 263,492 2,209.936 Net incomellexpenditurel and movement in fund5 184,2091 35,568 148,641) (33.714) 22,631 {11,083} R8conelliation of funds: Fund balances 8t 1 April 2023 1,187,489 57,802 1,245,291 1,221,203 35,171 1,256.374 Fund balances at 31 March 2024 1,103,280 93,370 1,196,650 1,187,489 57,802 1,245,291 The sl3lement of financlal activities includes all gains 2nd108ses recognised In the year. All income and expendllure derive from continuing aclivilies. -22- THE KARUNA TRUST BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Flxed assets Tanglble assets 14 227,784 233,422 Current assets Debtors Cash al bank and In hand 16 398,100 636,655 323,652 739,820 1.034,755 1,063,472 Creditors: amounts falling due withln one year 17 (65,889) (51,603) Net current assets 968,866 1,011,869 Total assets less current Ilabllltles 1,196,650 1,245,291 Net assets excluding penslon Ilablllty 1.196,650 1,245,291 The funds of the Gharlty Reslricled income funds Unrestricted funds 19 93,370 1.103,280 57,802 1,187,489 4.196,650 1,245,291 The company is enlilled lo the exemplion from the audit requlrement contained in section 477 of the Companies Act 2006, for the year ended 31 MarGh 2024, although an audit has been Garried oul under section 144 of the Charities Act2011. The directors acknowledge their responslbililies for complying with Ihe requlrements of Ihe Companles Act 2006 with respect to accounting records and the preparation of financial slalements. The members have not required the company to obtain an audit of its financi21 statements under the requirements of the Companles Acl 2006, for the year Sn queslion in accordance with sectlon 476. These financlal statements have been prepared In accordance with the provlslons applicable to companSes subject to the small companies regime. The financial statements were approved by the trustees on Vajramudila Armstrong (Chair) Trustee SLt Yen Tan ffreasurer) Trustee Company regSstralion number 02132178 (England and Wales) -23- THE KARUNA TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operatlng activities Cash absorbed by operations 25 (163,8591 1211.2881 Investlng activities Purchase of tangible fixed assets Investment Income received {5,1921 71,582 14,873) 40,801 Net cash generated from investing actlvltles 66.390 35,928 Financing activities Purchase of derivalives 15,696) 5,696 Net cash (used inllgenerated from flnancing activities (5,696) 5,696 Net decrease In cash and cash equivalents {103.165} 1169,6641 Cash and cash equivalents at beginning of year 739,820 909,484 Cash and cash oqulvalents at end ofyear 636.655 739,820 24- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollGIès Charlty Information The Kaiuna Trust is a private company limited by gu8r8nlee incorporated in England and Wales. The registered office is 72 Holloway Road, Holloway, London, N7 8JG. 1.1 Accountlng conventlon The financial slalèmenls have been prepared in accordance wilh the charity's Deed of Trusl, the Companles Act 2006. FRS 102"The Flnancial Reportin9 Standard 8pplicable in the UK and Republic of Ireland" I'FRS 102.} and the Charitles SORP "Accounting and Reporting by Charities: Stalement of Recommended PraGti¢e applicable to charities prep2ring (heir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republlc of Ireland (FRS 1021" leffeclive 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financS81 slalements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded lo the nearest £. The financial slalements have been prepared under the historical cost convention. The principal accounting pollcies adopted are set out below. 1.2 Golng concern At the lime of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustee8 continue to adopt the golng concern basis of accounllng in preparing the financial stalements. 1.3 Charltable funds Unrestrlcled funds are available for use at the discretion of the Iruslees in furlherance of their charitable objectives. Restrlcted funds are subject lo specific Gondilions by donors or grantors as to how Ih8y may be used. The purposes and uses of Ihe restricted funds are set oul in the notes to the flnanGlal statements. Endowment funds are subject to specifie conditions by donoTS that the capital must be maintained by the charity. 1.4 Income Income is recognlsed when the charity is legally enlllled lo il after any performance condllSons have been met, Ihe amounts can be measured reliably, and il is piobable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions r8quire deferral of the amount. Income lax recoverablg in relation to don81ions received under Gift Aid or deeds of covenant is recognised at the time of the donation. LegaciBS are recognised on receipt or olherwise if the charily has been notified Df an impending dislribulion, the amount is known. and receipl is expected. If the 8mounl is not known, the legacy is Irealed as a contingent asset. 25~ THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.5 Expendlture Expenditure is recognlsed once there Is 8 legal or constructive obligalion lo transfer economic benefit lo a third party, il is probable that a transfer of economic benefits will be required in selllemenl, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each a¢lSvity are made up of the total of dlrect costs and shared costs, including support costs involved in undertaking each activity. Direcl costs altribulable to a single activity are allocated directly to that aclivlly. Shared costs which ¢onlribule to more than one activity and support costs whioh are nol attributable to a single acllvlly aro apportioned between those activities on a basis consistent with the use of reSou￿es. Central slaff costs are allocated on the basis of lime spent. and depreciation charges are allocaled on the portion of th8 asset's use. 1.6 Tanglble fixed assets Tangible fixed assets are intiially measured al cost and subsequently measured al cost or valuation, net of depreciallon and any impairment losses. DeprecSation is recognised so as lo write off the cost or valuation of assels less their residual values over their useful lives on Ihe following bases.. Land and bulldlngs Plant and machinery Fixtures, fittings & equipmenl Propety over 100 years straight line between 3 and 5 years Slr8ight line beiween 3 and 5 years The gain or loss arising on the disposal of an asset Is determined as the differenGe between the sale proceeds and the carrying value of the asset, and is recognlsed in the statement of financial activitie5. 1.7 Impairment of fixed a55els At each reporting end date, the charity reviews the carrying amounts of ils tangible assets to deteimine whether there is any indication that those assets have suffered an impairment loss. If any such indlcalion exists, the recoverable amount of the asset is eslimaled in order lo determine the exlenl of the impairment loss lif 8ny)- 1.8 Cash and cash gqulvalents Cash and cash equivalents include cash in hand, deposils held at Gall wllh banks, other short-tgrm liquld inveslmenls with original malurilies of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 FlnanGlal Instruments The charlly has elected to apply the provisions of Section 11 'Baslc Financial Instruments, and Seclion 12 '0ther Financial Instruments Issues, of FRS 102 lo all of ils financial inslrumenls. Financial instruments are recognised in the charity's balance she81 when the charity becomes party lo the contraclual provisions of the instrument. Financial assets and liabillties are offset, with the nel amounls presented in the financial statements, when there is a legally enforceable iighl to sel off the recognised amounts and there is an intention lo settle on a nel basis or lo realise Ihg asset and settl8 the liability simultaneously. BasiT¢ fiTnancial assets Basic financial assets, which include debtors and c8sh and bank balances, are initially measured al transaction price including transaction costs 2nd are subsequently caTiied at arnortised cogl using the effective interest method unless the arrangement ¢onslilutes a financing Iransaclion, where the transaction is measured at the present value of the future receipts discounled al a market rale of interesl. Financial assels classified as rec8ivable within one year are not 8rn0rtised. 26- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (Continued) Derecognition of financial assets Financial assets are derecognised only when the conlraclual rSghts to the cash flows from Ihe asset expire or are sellled, or when the charity tr8nsfers the financial asset and subslanlially all the risks 2nd rewards ol ownership lo another entity, or if some significant risks and rewards of ownership are retained bul control of the asset has trangferred to another party thal is able lo sell Ihe assel in its entirety lo an unrelated Ihird party. Basic financial liabilitles Basic financlal liabilit18s, including creditors and bank loans are initially recognised at transaction price unless the arrangement conslitules a flnancing trangaclion, where the debt Instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabililles classified as payoble wilhln one year are not amortised. Debt Instruments are subsequently carried al amortls8d cost, uslng the effective interest rale method. Trade creditors are obligations lo pay for goods or Se￿iceS that have been acquired In the ordinary course of operations from suppli8rs. Amounts payable are classified as current liabilities if payment is du6 within one year or les8. If not, they are presented 8s non-current liabilities. Trade credllors are recognised initially al transaction price and subsequenlly measured at amortised cost using the effective Interest method. other finanGlal Ilabllltles Derivatives, including interest rale swaps and forward foreign exchange conlracls. are not basic financial instruments. Dgrivativeg are ini118lly recognisgd al fair value on the date a derivative contract is entered into and are subsequently re-measur8d at their fair value. Changes In the fair value of derivatives are recognised in income and expendlture in support costs or other income as appropriate, unless hedge accounting Is applied and the hedge is a cash flow hedge. Derecognition of financial liabllltles Financlal liabilities are derecognisgd wherE the charity's conlraclual obllgallons expire or are discharged or cancelled. 1.10 Derlvatives Derivatives, including interest rate swaps and forward foreign exchange contraclg, are not basic flnanclal InslrumÈnls. Derivatives are initially recognlsed at falr value on the dale a derivative contract is entered into and are subsequenily re-measured at their fair value. Changes in the fair value of derlvallves are recognised in in¢omel(expenditure) for the year, unless hedge accounting is applied and the hedge is a cash flow hedge. D8rivaliv&s are initially recognised al fair value at tho date a d8rivalivo contract is entered into and are subsequently remeasured to fair value at each reporting date. The resulting gain or loss is recognised in nel incomel(expendllurel immediately unless the derivative is designated and effective as a hedging instrument, in which event the liming of the recognition depends on the naliife of the hedge relationship. A derivative with a positive fair value is recognised as a financlal asset, whereas a derivative with a negative fair value is recognlsed as a financial liability. 1.11 Employee benefits The cost of any unused holiday enlillemenl 15 recognised in the period in which the employeo's seNices ar8 recelved. Termination benefits are recognised immedial8ly as an expense when the charily is demonslrably committed lo lermlnate the employment of an employeo or to provide termination benefits. 1.12 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. -27- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Critical accounting estimate5 and Judgements In the applicallon of the charity's accounting policies, thè trustees are required to make judgemènts, eslimales and assumpllon8 about the carrying amounl of assets and liabililies that are not readily apparent from other sources. The eslimales and associated assumplions are based on historical experience and other factors that are considered to be relevanl. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongolng basis. Revisions lo 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 affeols both current arsd future periods. Income from don8tlons and legacles Unrestrlcted Restricted funds funds 2024 2024 Total Unrestricted Restrlcted funds funds 2023 2023 Total 2024 2023 Donations and glfts Legacies receivable 1,702,045 69,119 340,038 2,042,083 69,119 1,813,664 58,265 286,123 2,099,787 58,265 1.771.164 340,038 2,111,202 1,871,929 286.123 2,158,052 Income from investments Unrestrlcted Unrestrlcted funds funds 2024 2023 Rental income Interest receivable 39,760 31,822 24,243 76,558 71,582 40,801 28- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Expendlture on raising funds Unrestricted Restrlcted funds funds 2024 2024 Total Unrestricted Restrlcted funds funds 2023 2023 Total 2024 2023 Fundraising and publicity Bank charges Newsletters, prinlirsg and postage Fundraising expenses Rent and hire Staff costs Depreciation and impairment 11,968 11.968 11,810 11,810 8,473 208.100 26,352 525,978 8.473 208.100 26,352 543,411 9,040 156,638 21,876 490,777 9,040 156,638 21,876 507,587 17,433 16,810 8,015 8,015 7,570 7,570 788,886 17,433 806,319 697,711 16,810 714.521 Expenditure on charitable activities Charltab18 activities 2024 Charitable actlvltles 2023 Direct costs Grant funding of activities (see not8 71 1.011,300 1.081,790 Share of 5UPPOrt and governance ¢osts (see note 10) Support Governance 354.678 59,128 352,175 61,450 1,425,106 1,495,415 Analysis by fund Unreslricled funds Restricted funds 1,138,069 287,037 1,248,733 246,682 1,425.106 1.495.415 Grants payable Charitable activlties 2024 Charitable activities 2023 Grants lo inslilulions- Other 1,011,300 1,081,790 Please see Note 8 for detail. 29- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 8 Grants to program partners Unrestricled Restricted Total grants grants grants Support & Total funds Total funds development 2024 2023 costs Grants to Indlan partners AAINA Adecom Aryaloka- Nagpur Aryaloka Chh2ttisgaih BH Amravali Green Tara Foundation Vishrantwadi ITBCI Jan Sahas 21,973 21,973 7.706 29.679 12,012 25,762 28.997 11.490 41,480 20,181 7,999 31,802 20,181 7,999 33,026 7,078 2,805 11,583 27,259 10.804 44,609 1.224 4,750 3,415 43,106 4,750 3.415 177,923 1,666 1.198 62,401 6.416 4,613 240,324 12,602 4,654 212,512 134,817 [11111 MailT( Network Nirm8n NISD Nishlha PHIA Foundation Pragya Soulscale SSEVS Bihar Sukhavali Trust TBMSG Nagpur URJA 36,288 38,581 14,864 21,930 2,550 59,964 114,711 14,427 3,555 17,748 28,983 725 20,533 17,993 74.291 37.013 59,114 32,857 96,221 2,550 59,964 122,775 14,427 3,555 17.748 38,870 12,981 20,732 11,524 33.746 894 21,030 43,059 5,060 1,247 6,225 13,632 49.994 79,846 44,381 129.967 3,444 80.994 165.834 19,487 4,802 23,973 52,502 30,629 59,611 39,711 140,391 16.471 137,522 103,985 32,891 4,688 36,478 54,406 8.064 9,887 Grants to Nepalese partngrs Green Tara Trust Nepal FEDO NNDSWO Nepal Pragya Reed 11,506 9,790 180 5.210 11,686 15.000 4,098 5.261 15,784 20,261 49,632 19,883 15,427 70,159 108,326 52,928 41,144 52,928 41,474 18,563 14,546 71,491 56,020 330 Grants to Bangladeshi partners Grambangala Unnayan Committee Pragya Solutions 24,496 13,574 24,496 13,574 8.591 4.761 33.087 18,335 46,906 Grants to German partners Karuna DE 13,784 13,784 4.834 18.618 4,772 Grants to US partners Karuna USA 83,997 83.997 29,459 113,456 112,568 Totals 724,262 287.038 1,011.300 354.680 1,365,gBO 1,433,965 30- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Net movement In fund5 2024 2023 The net movement in funds is slated after chargingll¢redillng)'. xchange losses Fees payable for the audit of the charlly's flnanclal slalemenls Depreclation of owned tangible fixed assets Operating lease charges 5.698 16.300 10,735 7,007 15,620 10,830 5,980 10 Support costs allocated to activities 2024 2023 Staff costs Depreeialion Operating lease charges Tralnlng and development Consullanls Exchange losses Other costs Loan interest Travel and subsistence Programs communicalion & publlcity Governance costs 230.910 2,325 5,980 8,350 38,121 233,908 2,756 7,007 5,722 37,732 5.698 40,325 51,565 58 12,401 4,968 59,128 14.000 5.027 61,450 413,806 413,625 An3lys8d between: Charitable activities 413,806 413,625 11 Trustees None of the truslees (or any persons connected with them) received any remuneration during the year, and three trvslees were reimbursed a lolal of £1,105 expenses (2023 - £784}. 12 Employees The average monthly number of employees during the yearwas- 2024 Number 2023 Number Grant management Fundraising Governance 16 15 Total 24 23 31 THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Employees Icontlnuedl Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 720,949 56,522 19.994 685,671 55,442 20,752 797,465 761,865 There were no employees whose annual remuneration was more than £60,000. 13 Taxatlon The charity is exempl from taxation on ils acllvilies because all ils income is applied for charitable purposes. 14 Tangible fixed assets Land and buildings Planl and maGhinery Fixtures. rittin95 & equipment Total Cost At 1 April 2023 Additions Disposals 295,100 32,368 5,192 (7.3481 37,052 364,520 5,192 {8,8181 (1,470) At 31 March 2024 295,100 30,212 35,582 360,894 Depreclation and impairment At 1 April 2023 Depreciation charged in the year Eliminated In respect of disposals 74,936 2,101 21,690 7,439 (T,3481 34,472 1,290 {1,470) 131,098 10,830 {8,818) At 31 March 2024 77,037 21.781 34,292 133,110 Carrying amount Al 31 March 2024 218.063 8,431 1.290 227.784 At 31 March 2023 220,164 10,678 2,580 233,422 15 Financial instruments 2024 2023 Carrying amount of financial liabilities M8asured at fair value through profil or loss Other financial liabilities 5,696 During the prior year Ihe charity entered into fopNard contracts to secure Indian Rupees lo cover future grant payment commitments. -32- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Debtors 2024 2023 Amounts falling due withln one year: Other debtors Prepayments and accrued income 312,309 85,791 268,126 55,526 398,100 323,652 17 CredStors: amounts falllng due within one year 2024 2023 Olher taxation and social security Derivative financial Instruments Olhgr creditors Accruals and deferred income 7,309 8,924 5,696 12,912 24,071 9.406 49,174 65,889 51,603 18 R¢tlrement benefit schemes 2024 2023 Defined contribution schemes Charge lo profit or1055 in respect of defined contribution schemes 19,994 20,752 The charity operates a defined Gonlribulion pension scheme for all qualifying employees. The assets of the scheme are held separately from those of th& charity in an independently administered fund. 19 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on Irusl subject to specific conditions by donors as to how (hey may be used. At 1 April 2023 Incoming resources Resources At 31 March expended 2024 General Restricted Fund 57,802 340,038 1304.4701 93,370 Previous year: At 1 April 2022 Incoming resources Resources At 31 March expended 2023 General Restricted Fund 35,171 286.123 (263,4921 57.802 33- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Unrestrlcted funds At 1 April 2023 Incoming resources Resources At 31 March expended 2024 General funds 1,187,489 1.842,746 {1,926,955} 1.103,280 Previous year.. At 1 Aprll 2022 Incomlng resources Resources At 31 March expended 2023 General funds 1,221,203 1,912.730 (1,946,444) 1,187,489 21 Analysis of net assets between funds Unrestricted funds 2024 Restrl¢ted funds 2024 Total 2024 At 31 March 2024: Tangible assets Current asselsllliabilities) 227,784 875,496 227,784 968,866 93,370 1.103,280 93,370 1,196,650 Unrestricted funds 2023 Restricted funds 2023 Total 2023 At 31 March 2023: Tangible assets Current asselsl{liabililies) 233,422 954,067 233,422 1.011,869 57.802 1,187,489 57,802 1,245,291 22 Financial commitments, guarantees and contingent liabilities At the reporting end dale, the charity had conlingenl liabilities of £1,668,122 12023 £1,621,521) towards charitable projects. 34- THE KARUNA TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 23 Operating lease commitments Lessee Al the reportSng end dale, the charity had oulslanding commitments for future mlnimurn lease payments under non-cancellable operatlng leases, which fall due as follows.. 2024 2023 Within one year Between two and five years 25,625 26,265 25,000 51,890 25,000 24 Related party transactlons The charity is conlrolled by (he trustees who are all directors of the company. The Iruslees of the charlly are also the Irustees for another charity, Aid for India. During the yearAld for Indla pald £6.796 (2023.. £0) as a managemenl fee lo The Karuna Tru81. At the year end the charitable company owed £0 {2023.' £6,796) to Aid lo India. 25 Cash generated from operatlons 2024 2023 Deffcil for the year (48,6411 (11,0831 Adjustments for.. Inveslmenl income recognised in slalement of financial aclivSties Depreciation and impairment of tangible fixed assets {71,582) 10,830 140,801) 10,735 Movements In working capllal: Ilncreasel in debtors Increasel(d8crease) in creditors (74,4481 19,982 {139,8071 {30.3321 Cash absorbed by operations {163,8591 {211,288) 26 Analysis of changes in net funds The charity had no material debt during the ye8r. 35- LErrER OF REPRESENTATION Karuna Ti"ust The 72 Holloway Rcad Hollowav london N78JG Registered Office.. 72 Holloway Road Holloway London N7 81G Directors.. V Arffjstrong S KGrewal SYTan C O Milosevic P D White Company No.. 02132178 (England and Wales) Gravita Audit11 Limited Aldgate Tower 2 Leman Street London EIW 9US Dear Sirs This representation letter is provided in connection with your audit of the financial statements lor the year ended 31 March 2024 for the purpose ol expressing an opinion as to whether the financi81 statetnents give a true and fair view of the results and financi31 position in accordance with the Companies Act 2006 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). We have fulfilled our responsibilities as directors 3nd trustees. as set out in the term5 of your engagement dated 01 july 2024 under the Cofftpanie5 Act 2006 for preparing financial statement5 in accordance with the Companie5 Act 2006, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Chartties SORP IFRS 1021 (second edition- October 20191 which give a true and fair view of the financial position of the company as of 31 March 2024 and of the results of its operations and it5 cashflows for the year then ended and for making accurate representations to you. 2. All tiansactions undertaken by the company have been properly reflected and recorded in the financial Statements. 3. The methods, data and significar>t assumptions used by us in making accounting estimates, and their related disclosures, are appropriate to achleve recognition, me35urement and disclosure that is reasonable in the context of the applicable financial reporting framework. We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurement5 or cla55ification of assets and liabilities reflected in the financial statements. We have disclosed 311 known actual or possible litigation and claims whose effects should be considered when prepai'ing the financial statements and these have been disclosed in accordance with the reouirernents of accounting standards. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requlrements of accotjnting stBndards. We have disclosed to you all relevant nformation concerning such relationships and transactions and are not aware of aiiy other matters which require disclosure in order to cotnply with the requirements of company law or 3ccoiJnting standards. All events since the balance Sheet date which require disclosure, or which would materially affect the amounts in the financi81 statements have been adjusted or disclosed in the financial statements. We confirm the financial statements are free of material misstatements, including omissions. We believe that those uncorrected misstatements Identified during the audit of the financial 5tatemenr5 are immaterial both individua51y and in aggregate to the financial statements as a wliole. A list of tliese items is 3lt6ched to this letter of representation, together with our rea50n5 for not correcting il)em. 9. We confirm that, having considered our e.xpectation5 and intentions lor the next twelve mon1115, and 11)e vailabilily of working capital, oli the grounds that current and future sources ol funding or support will be more than adequate, the company is a going concern_ We also confirm our plans lor future actionl51 required to enable the company to contir)ue as a goiiig coiicern are feasible. We confirrn that the disclosures in the accounting policie5 are an accurate reflection ol the reasons for our Consideration that the financial statements should be drawn up on a going concern ba515. 10. All accounting records and relevant information have been made available to you for the purpose of yoiir audit of the financial st3ternents. We have provided to you all other information requested and given unrestricted access to persons within the entity frorn wliom you have deemed it necessary to obtain aLidit evidence. All other records and related information including minutes of all management and 5hareholder5 meetings have been made available to you. 11. All tran5actlOn5 undertaken by the company have been properly reflected in the accounting records and are reflected in the fin3Dcial statements. 12. We acknowledge our re5POn5ibllity for the design, implementation and maintenance of controls to prevent and detect fraud and eiror, aiid we believe that we have approprlately fulfilled these responsibilities. We have disclosed tD you the results of our assessment of the risk that the financi31 statements may be materially 1SSt3ted 65 a result of fraud. 13. WÈ have disclosed to you all information in relation to fraud or suspected fraud that we are aware of ai)d that affpc15 thp entity 3nd involves, mxn3gement, @mployees who have significant roles in intern31 control. or others, where fraud could have 3 material effect on the financial statements. 14. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud affecting the entity's financial statements communicated by employees. former employee5. analysts, regulators or others. 15. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal franiework withip) which the company conducts its business, and which could affect the financial statements. The company has complied with èll aspect5 of contractual ègreements that could have 3 material effett on the linaocial statements In the event of non-compliance. 16. We confirm that we have disclosed to you the identity of the entity's related parties and all related partv relationships ènd transactions relevant to the audit of the financial statements that we are aware ol. 17. The company has satisfactory title to all assets, and there are no liens or encumbrances on the assets except for those dlsclosed in the fin2nci31 statements. 18. All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded Dr disc105ed a5 appropriate. 19. The company has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilitie5 (including loans, quasi loans or credit transactions) for directors and trustees, nor to guarantee or provide sÈturity for such matters, ex￿pt 3s disclosed Sn the financi31 statements. 20. We acknowledge our legal responsibilities regarding disc105ure of information to you 3s auditors and confiim that so far as we are aware, there is no relevant audit information needed by you in connection with pieparing your audit report of whith you are unaware. 21. Each director h3S taken all the steps that they oiight to have taken as a director in order to make themselves aware of any relevant audit information and to establish that you are aware of that information. 22. We confirm that we are not aware of ariy matte15 of rnateFial significance th3t sliould be reported to tlie Charity Commission. 23. We corifiim tliat the property ét 72 Holloway Road, Holloway, London, N7 8JG continues to be used for the benefit ol tlie c11arily by way of providing accommodation for tl)e 8uddhist cominunlty for religious practices at below the market rate rent and is not beiiig held lor the PLJrposes of a gain. 24. We confirm that we are aware that a related party of the charity Ss a person or organisatlDn which either (directly or indirectly) conti015, has joint control ol, or significantly influences the charity or vice versa and as a result will include.. trustees/director5, Otlier key management, close family and other busir)ess interests ol the previous. We confirm that the related party relationships and transactioiis set out below are a complete list of such relatlonship5 and transactions and that we are not aware of any further related parties or ti'an5aCtions. Party Relationship Vajiamudita Armstrong Trusteeloirector Su Yen Tan Truslee/Director Carolyn Milosevic Trustee/Director Peter White Tru5tee/Director Sundeep Grewal Tru5tee/Director Aid for India Cotnmon trustees Nature of tr3nsaction Reimbursed expeiises No transactions Reimbursed expenses No transactions No tran5artlOn5 Donation Income. other creditors 25. We confirm that all grant5, donations and other income, including those subject to special terms or conditions or received for restricted purposes. have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income. Restricted grants and donations are as follows.. Projerts ADWAN BH Amarvati FEDO Green Tara Green Tar Jan Sahas lan Sahas Jai) Sahas lan Sahas Maitri irman NISD NISD Nlshlha Nishtha PFaRYa Indi URIA Purpose Livelihood5 Hostel Nepal Digi￿ltY Women rights Nepal Child rights Women rights Livelihoods Worker rights Women riÈhts Education Women rights Disabled people Education India Women rights We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of manBgemei)t and sraff with relevant knowledge and experience and, where appropriate, ol inspection of supporting documentation sufficient to $3tisfy ourselves that we can properly make each of the bove representations to you. We acknowledge our legal respon5ibililies regarding disclosure of informallon to yoii as auditors and confii'm that so lar as we are aware, there is no i"elevant audit information needed by you in connection with preparing YOUT audit report of which you are iinaware. Eacli director h35 taken all the Steps that he ou8ht to have taken as a director in arder to make himself aware of any relevant audit information and to establish that you are aware Df tliat information. Yours faithfully Signed on ljehalf of the board of trustees bv.. Director) ID ated) Gravita Audit Aldgate Tower ? Leman Street l.ondon Tel.. 020 7330 0000 www.Eravlta.com PRWIVPIIK029 The Directors and Trustees The Karuna Trust 72 Holloway Road HollowBV Londo N7 8JG 2610712024 Dear Slrs The Karuna Trust We would like to draw YQUF attention to matter5 which we consider to be of importance, 2nd further, matters to which you have given representation diiring the audit of the entity's financial 5tatement5 for the year Ènded 31 March 2024. Significont Flndingsfrom ÈheAudit There were no signiflcant findlngs durlnE the course of our audlt. Representotions During the audit of the financièl statements you made general and specific representations as attached. We would request that you are comfortable in makinE these representations, as this forms the basis of the letter which we will reque51 you deliver to U5. You made further spe¢lfic representations wlth regards to subsequent events as noted below= (Èl No new commltment5, borrowings or guarantees have been entered into. Ibl No sales or acqLJiSitions of assets have occurred or are planned. Icl No inciea5e5 in capital or issuance Df debt instruments, such as the issue of new shares or debenture5. or an agreement to merge or Ilquid8le ha% been made or is planned. Idl No assets have been appropriated by government or destroyed, lor exarriple, by fire or flood. lel There have been no developments regarding contingencies. In No unusual accounting adjustrnents have been made or are contemplated. Igl No events h3ve occurred or are likely to occur that wi11 bring into question the appropriateness OF accounting policies used in the financial 5taternents, a5 would be the case, for example, if such events call into question the validity of the going concern 35sumption. Ihl No events have occurred that are celevant to the measurement ol estimates or provisions made in the financi31 sthtementg. lil No events liave occurred that are relevant to the recoverability of assets. Significoftt Deficienci¥s Drlc The purpose ol the audit wa5 Lo express ali opinion on the financial statements. The audit inclLided consideration f internal coiitro15 relevant to the preparation of the financial statements to design audit procediire5 tliat are appropriate in the circumstances, but not for expressing an opSnion on the effectiveness of internal controls. Otlier Motters During the audit we FoLJnd that there were issues with the CRM system which ifnpatts atcuiacy and tompleteness of donor retords, and consequently, impact the gift aid. We recommend that management engages with specialist5 to r@501ve thi5 Issue. This letter has been addressed to and prepared for the use of the entlty. It must not be disclosed to any third party or rèfèrred to, without our prior written consent. We therefore accept no respor)sibilily to anyone other than the entity. We trust that the above assists you in understanding our audit conclusion5 however, if you iequire any further explanatiorTrs, then please do not hesitate to contact LJS. We should be grateful if you would confirm that yoii have read and understood the contents of this letter by signing the enclosed copy of this letter and returning it to us. We would like to take thi5 opportunity in expressing oui thanks to you and your team for their a5SlStance to date. Yours faithfullv Gravita Audit11 Limited We confirm that we have read and understood the contents of this letter. Signed For and on behalf OF The Karuna Trust Dated The Karuna Trust Year ended 31 Maich 2024 Unadlusted Errors Conlirmed by Management and Those Charged Wlth Gkivernance Profit and 105$ rjr Balance 5heel CT Account Profit Adlusted net Incomellexpendlturel 148.6411 l Dr Holioday pay accrual Cr Holiday pay eKpen5e Being hGlidoypGy Ul¢fual4lifferente (not mtrteriulj 7.078 7.078 7.078 7,078 7,078 Impact of unadlusted error¢ 7,078 RevlsÈd proflt Includlfig unadlu5ted error 141,5631 £buL J M ( L£AYtr¥ti MaTraEernÈnt NAME................................ Those charged with governance N oli IL Dated................................