## **Project Mala Charitable Trust**
**(Charity Registration Number 801953)**
# **Trustees' Annual Report & Financial Statements for the year ended**
**31st March 2021**
Charity accounts preparation & independent examination service
## **Project Mala Charitable Trust**
**(Charity Registration Number 801953)**
|**Contents**||
|---|---|
|**Index**|**Page**|
|**Annual Report of the Trustees**|**1**|
|**Independent Examiner's Report**|**5**|
|**Statement of Financial Activities**|**6**|
|**Balance Sheet**|**7**|
|**Statement of Cashflows**|**8**|
|**Notes to the Accounts**|**9**|
**For the year ended:**
## **Trustees' Annual Report**
## **31/03/21**
## **Reference and administration details**
**Charity name** Project Mala Charitable Trust **Other names the charity is known by** None **Registered charity number (if any)** 801953 **Charity's principal address** Model Farm The Green, Upper Poppleton York, YO26 6DP
## **Names of the charity trustees who manage the charity**
**Name of person (or body) Dates acted if not for Trustee Name Office (if any) entitled to appoint trustee whole year (if any)** Robin Garland Chair David Hopton Patrick Scott Anne Gilmour Karen Brook Resigned 15 July 2020
## **Names of the trustees for the charity, if any**
|**Names of the trustees for the charity, if any**|**Names of the trustees for the charity, if any**|**Names of the trustees for the charity, if any**||
|---|---|---|---|
|**Name**|||**Dates acted if not for wholeyear**|
|None||||
|**Reference and administration details (continued)**||||
|**Names and addresses of advisers**||||
|**Type of adviser**|**Name**|**Address**||
|Investment Advisor
Hargreaves Lansdown
Independent Examiner
Karen Wood ACMA,
Hiscox Building, Peasholme Green, York, YO1 7PR||||
|**Structure, governance and management**||||
|**Description of the charity's trusts**
**How the charity is constituted**
An unincorporated charity
**Trustee selection methods**
New trustees are appointed as needs arise and to ensure that an
appropriate range of skills and experience is brought to the
management of the trust. Appointment is by existing trustees.
**Governing document:**
Trust Deed dated 7 August 1989||||
## **Additional governance issues**
The charity is administered by a board of trustees supported by volunteers plus remunerated administrative support as required.
1
**Objectives and activities**
## **Summary of the objects of the charity set out in its governing document**
The principal objective of the charity is the advancement of education and the relief of poverty amongst children in India.
The trust supports The Children Emancipation Society which operates Project Mala schools in India. Currently there are 5 pre-schools for girls, 6 primary, 3 middle, 2 secondary schools and 1 intermediate college in the state of Uttar Pradesh, India, supporting over 1,350 underprivileged children in full time education. The education covers up to 10 years and grades 1-12 of the national curriculum. Most of these children could have grown up illiterate without the benefit of our work. Nutrition and health care are provided for all pupils.
## **Summary of the main activities undertaken for the public benefit in relation to these objects**
The main beneficiaries at this stage are children in the Uttar Pradesh state of Northern India who receive education, nutrition and health care through funding provided by the trust.
The trustees consider that they have complied with their duties to have due regard to the public benefit guidance published by the Charity Commission.
## **Achievements and performance**
## **Summary of the main achievements of the charity during the year**
The year under review has been a strange one, as we have been unable to have face-to-face meetings because of the Covid 19 lockdown. Also, Karen Brook resigned due to family problems. Karen was part of our teaching advisory team and is a sad loss for us. She was instrumental in introducing the phonics programme in our primary schools.
In India, our schools have been closed for much of the year Whilst we still gave our children work to do at home, it was not as good as being in school. At the end of March we were starting to feel that things were gradually returning to normal and the senior schools started back in attendance. Then the second wave started in India and the virus went around like a forest fire.
The enrolled numbers of children at the end of the year were:
||**Pre**|**Primary **|**Middle**|**Secondary **|**College **|**Total**|
|---|---|---|---|---|---|---|
|**Boys**|0|360|251|84|46|741|
|**Girls**|120|330|172|44|31|697|
|**Total**|**120**|**690**|**423**|**128**|**77 **|**1,438**|
The main positive event this year has been the introduction of smart boards. We started to use them for a short time and found that they were making a huge difference and are very popular with the teachers.
In the early part of the year we enjoyed seeing so many of our children making decisions on their future. Some chose academia and continued to further education in university and others deciding to take a more practical career based course.
We are looking forward to India getting control of the virus so our children can get back to school with us.
2
## **Financial review**
## **Review of the charity’s financial position at the end of the period**
A surplus of £6,886 before gains from exchange has been made this year, increasing reserves to £120,704. In the balance sheet investment assets have increased by £6,722 from £43,444 to £50,166, current assets have increased by £4,199 from £66,889 to £71,088 and current liabilities have decreased by £242 from £792 to £550.
## **Amount of reserves held**
£120,704 of unrestricted reserve
## **Reserves policy**
The trustees adopt the advice of the Charity Commission in seeking to maintain an adequate level of unrestricted funds to support ongoing work.
## **Funds materially in deficit**
None
## **Funds held as a custodian trustee**
The schools in India are operated by The Children Emancipation Society which is a society registered in India. The society has it's own trustees. All schools operate under the 'Project Mala' name. Project Mala supplies approximately 80% of the costs incurred in India, the balance being raised within the country. Efforts continue to be made to increase the domestic funding so that in the longer term there is less reliance on grants from overseas.
## **Trustees' responsibilities in relation to the financial statements**
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
3
## **Declaration**
## **The trustees declare that they have approved the trustees' report above**
## **Signed on behalf of the charity's trustees**
## **Signature**
## **Name**
**Position (e.g. Chair etc)**
## **Date**
4
**Independent examiner’s report to the trustees of Project Mala Charitable Trust**
I report on the accounts of: **Project Mala Charitable Trust** for the year ended: **31st March 2021** which are set out on pages 6 to 15.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
- 2 the accounts do not accord with those records
- 3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Karen Wood (ACMA)**
3/9/2021
**Date:**
Outsource independent examination service The Hiscox Building Peasholme Green York YO1 7PR
5
## **Project Mala Charitable Trust**
(Charity Registration Number 801953)
## **Statement of Financial Activities for the year ended:**
## **31st March 2021**
|**Note**
**Income and endowments from:**
Donations and legacies
3.1
Charitable activities
3.2
Investments
3.3
**Total income**
**3**
**Expenditure on:**
Raising funds
4.1
Charitable activities
4.2
Other expenses
4.3
**Total expenditure**
**4**
**Net incoming/ (outgoing)resources before**
**other recognised gains/ (losses)**
**Transfers between funds**
**10**
**Gains/(losses) on investment assets**
**6**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|**Note**
**Income and endowments from:**
Donations and legacies
3.1
Charitable activities
3.2
Investments
3.3
**Total income**
**3**
**Expenditure on:**
Raising funds
4.1
Charitable activities
4.2
Other expenses
4.3
**Total expenditure**
**4**
**Net incoming/ (outgoing)resources before**
**other recognised gains/ (losses)**
**Transfers between funds**
**10**
**Gains/(losses) on investment assets**
**6**
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**|**Unrestricted**
**Restricted**
**Total**
**Total**
**funds**
**funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
205,702
14,825
220,527
203,946
725
-
725
10,250
2,462
-
2,462
2,971|
|---|---|---|
|||**208,889**
**14,825**
**223,714**
**217,167**|
|||2,887
-
2,887
15,462
191,021
21,525
212,546
222,837
1,395
-
1,395|
|||**195,303**
**21,525**
**216,828**
**238,299**|
||||
|||**13,586**
**(6,700)**
**6,886**
**(21,132)**|
|||**-**
**-**
**-**
**-**
4,277
-
4,277
(11,245)|
|||**17,863**
**(6,700)**
**11,163**
**(32,377)**|
|||102,841
6,700
109,541
141,918|
|||**120,704**
**-**
**120,704**
**109,541**|
6
## **Project Mala Charitable Trust**
(Charity Registration Number 801953)
## **Balance Sheet as at:**
## **31st March 2021**
|**Note**
**Fixed Assets**
Investments
**6**
**Current Assets**
Cash at bank and in hand
**7**
Debtors & prepayments
**8**
**Current Liabilities: Amounts falling due**
**within one year**
Creditors and accruals
**9**
**Funds of the Charity**
**10**
Unrestricted Funds (General)
Restricted Funds
**Total Funds Carried Forward**
**Net Assets/(Liabilities)**
**Total Fixed Assets**
**Net Current Assets/(Liabilities)**
**Total Current Assets**|**2021**
**£**
50,166
**50,166**
64,990
6,098
**71,088**
(550)
**70,538**
**120,704**
120,704
-
**120,704**|**2020**
**£**
43,444|
|---|---|---|
|||**43,444**|
|||60,398
6,491|
|||**66,889**|
|||(792)|
|||**66,097**|
||||
|||**109,541**|
|||102,841
6,700|
|||**109,541**|
The financial statements were approved by the trustees and signed on their behalf by:
## **Signature**
## **Name**
## **Position (e.g. Chair etc)**
7
## **Project Mala Charitable Trust**
## **Statement of Cash Flows for the year ended:**
## **31st March 2021**
|**Note**
**Cash flows from operating activities**
**Net income/(expenditure) for the year**
(Gains)/losses on investments
**Working capital changes**
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash flows used in investing activities**
Purchase of investments
6
Sale of investments
6
**Cash from investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at 1 April 2020
**Cash and cash equivalents at 31 March 2021**
**Cash at bank at 31 March 2021**
7
**Cash equivalents at 31 March 2021**
6
**Net cash provided by/(used in) operating activities**|**Total**
**2021**
**£**
11,163
(4,277)|**Total**
**2020**
**£**
(32,377 )
11,245|
|---|---|---|
||6,886
393
(242 )|(21,132 )
(644 )
18|
||**7,037**|**(21,758)**|
||(7,247 )
4,742|(5,444)
0|
||**(2,505)**|**(5,444)**|
||4,532
60,566|(27,202 )
87,768|
||65,098|60,566|
||64,990
108|60,398
168|
||65,098|60,566|
8
## **Project Mala Charitable Trust**
## **Notes to the accounts for the year ended:**
## **31st March 2021**
## **1.1 Basis of accounting**
The financial statements are prepared under the historical cost convention and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)).
## **1.2 Change of basis of accounting**
There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.
## **1.3 Change to previous accounts**
No changes have been made to accounts for previous years.
## **2 Accounting policies**
## **2.1 Income**
## **Recognition of income**
Income is recognised in the Statement of Financial Activities (SoFA) when:
- the charity becomes entitled to the resources;
- receipt is probable; and
- the monetary value can be measured with sufficient reliability.
## **Incoming resources with related expenditure**
Where incoming resources have related expenditure, the incoming resources and related expenditure are reported gross in the SoFA.
## **Grants and donations**
Grants and donations are only included in the SoFA when the charity has evidence of entitlement to the resources and receipt is probable.
## **Investment income**
This is included in the accounts when receivable.
## **2.2 Expenditure and Liabilities**
## **Expenditure**
## **Raising funds**
Cost of raising funds comprises those costs associated with attracting voluntary income.
## **Charitable activities**
Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Liability recognition**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
9
## **2.3 Assets**
## **Tangible fixed assets for use by the charity**
These are capitalised if they can be used for more than one year and cost at least £5,000. They are valued at cost or, if gifted, at the value to the charity on receipt, less depreciation. Assets are depreciated at 25% per annum on a straight line basis.
## **Foreign currencies**
Assets and liabilities in foreign currencies at the year end have been translated into UK Sterling at the rate of exchange applicable at the date of the Balance Sheet. Transactions in foreign currencies during the financial year have been translated into sterling using the exchange rate on the day of the transaction. Exchange rate differences are taken into account in arriving at the operating result.
The total value of assets and liabilities held in foreign currencies at the year-end was £35,346 ($37,369 (US Dollars), $14,943 (AUS Dollars) calculated using applicable exchanges as of 31st March 2021 ($0.7225 to £1, $0.55109 to £1).
## **2.4 Fund accounting**
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor.
10
## **Project Mala Charitable Trust**
(Charity Registration Number 801953)
## **Notes to the accounts for the year ended:**
## **3 Income and endowments**
|**3**
**Income and endowments**|||||||
|---|---|---|---|---|---|---|
|**3.1**
**3.2**
**3.3**
**Donations and legacies**
Donations and gifts
Gift aid
Legacies
**Charitable activities**
Individual child sponsorship
Grants returned
Carpet sales
**Total income**
**Investments**
Bank interest
Dividends|**Unrestricted**
**funds**
**£**
60,619
120,789
24,294
-|**Restricted**
**funds**
**£**
13,800
-
1,025
-|**Total**
**2021**
**£**
74,419
120,789
25,319
-
**220,527**
-
725
**725**
17
2,445
**2,462**
**223,714**|**Unrestricted**
**funds**
**£**
51,905
117,864
24,770
5,007|**Restricted**
**funds**
**£**
4,400
-
-
-|**Total**
**2020**
**£**
56,305
117,864
24,770
5,007|
||**205,702**|**14,825**||**199,546**|**4,400**|**203,946**|
||-
725|-||-|10,250|-
10,250|
||**725**|**-**||**-**|**10,250**|**10,250**|
||17
2,445|-
-||-
2,971|-
-|-
2,971|
||**2,462**|**-**||**2,971**|**-**|**2,971**|
||||||||
||**208,889**|**14,825**||**202,517**|**14,650**|**217,167**|
11
## **4 Expenditure**
|**4 Expenditure**|||||||
|---|---|---|---|---|---|---|
|**4.1**
**4.2**
**4.3**
Loss on exchange rates
Bank transfer fees
**Total expenditure**
**Other expenditure**
**Raising funds**
**Charitable activities**
Independent examination
Direct school funding costs
Travel & subsistance
Finance & administration costs
Communications & IT
General office
Incurred seeking donations &
sponsorship
Insurance|**Unrestricted**
**funds**
**£**
**2,887**
164,750
18
2,784
2,441
442
(69 )
20,105
550
**191,021**
**1,395**
**195,303**|**Restricted**
**funds**
**£**
-
21,525
-
-
-
-
-
-
-|**Total**
**2021**
**£**
**2,887**
186,275
18
2,784
2,441
442
(69 )
20,105
550
**212,546**
**1,395**
**216,828**|**Unrestricted**
**funds**
**15,462**
163,771
-
3,311
1,560
-
376
15,458
792
**185,268**
**-**
**200,730**|**Restricted**
**funds**
-
37,569
-
-
-
-
-
-
-
**37,569**
**-**
**37,569**|**Total**
**2020**
**£**
**15,462**|
|||||||201,340
-
3,311
1,560
-
376
15,458
792|
|||**21,525**||||**222,837**|
|||-||||**-**|
||||||||
|||**21,525**||||**238,299**|
12
## **5 Expenses & fees**
No trustees received a remuneration for services rendered during the year, nor were any trustees' out of pocket expenses reimbursed.
## **5.1 Fees for examination of the accounts**
||||
|---|---|---|
|**5.1 Fees for examination of the accounts**
Independent Examiner's fees|**2021**
**£**|**2020**
**£**|
||**550**|**792**|
## **6 Investment assets**
|Investments at fair value
Comprising:
Cash at cost
Add/(deduct): net gain/(loss)
on revaluation
Sale of disposals
Purchase of additions
Dividends
**Carrying (fair) value at end**
**of year**
Carrying (fair) value at
beginning of year|Cash & cash
equivalents
At cost
£
168
4,742
(7,247)
2,445
-|Listed
investments
**Total**
At fair value
£
£
43,276
43,444
7,247
11,989
(4,742)
(11,989)
-
2,445
4,277
4,277|Listed
investments
**Total**
At fair value
£
£
43,276
43,444
7,247
11,989
(4,742)
(11,989)
-
2,445
4,277
4,277|
|---|---|---|---|
||**108**|**50,058**|**50,166**|
||||108
50,058|
||||**50,166**|
## **7 Cash at bank and in hand**
|Coop
PayPal
AUS dollars
RBS current
RBS deposit
US dollars|**£**
12,618
15,317
1,341
368
27,111
8,235
**Unrestricted**
**funds**|**£**
-
-
-
-
**Restricted**
**funds**|**Total**
**Total**
**2021**
**2020**
**£**
**£**
12,618
9,399
15,317
25,303
1,341
2,788
368
654
27,111
18,406
8,235
3,848|
|---|---|---|---|
||**64,990**|**-**|**64,990**
**60,398**|
## **8 Debtors and prepayments**
|**Debtors and prepayments**
Bank charges to be refunded
Gift aid|**2021**
**£**
5,988
110|**2020**
**£**
6,491
-|
|---|---|---|
||**6,098**|**6,491**|
13
|**9 Creditors and accruals**
Accruals & deferred income
**Analysis of creditors falling due within**
**one year**|**2021**
**£**
550|**2020**
**£**
792
**792**|
|---|---|---|
||**550**||
## **10 Movement of funds**
## **10.1 Movement of major funds**
|**2021**
**Fund name**
**Unrestricted**
**funds**
**Restricted**
**Funds**
Turkahan
Building fund
Patehra
building fund
Nutrition
Smartboards
**Total Funds**
**2020**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
Turkahan
Building fund
Patehra
building fund
Nutrition
**Total Funds**
**Fund Name**|**£**
**£**
102,841
208,889
**Balance**
**b/fwd**
**Incoming**
**resources**|**£**
195,303
**Outgoing**
**resources**|**£**
-
-
-
-
-
-
**Transfers**|**£**
**£**
4,277
120,704
**Balance**
**c/fwd**
**Gain/loss**
**on invest**|
|---|---|---|---|---|
||**4,200**
-
**2,500**
-
**-**
14,825
**-**
11,045|4,200
2,500
3,780
11,045||-
-
-
-
-
11,045
-
-|
||6,700
14,825|21,525||-
-|
||||**-**
**£**
-
-
-
**-**
**Transfers**||
||**109,541**
**223,714**|**216,828**||**4,277**
**120,704**|
||**£**
**£**
112,299
202,517
**Incoming**
**resources**
**Balance**
**b/fwd**|**£**
200,730
**Outgoing**
**resources**||**Balance**
**c/fwd**
**£**
**£**
(11,245)
102,841
**Gain/loss**
**on invest**|
||**-**
4,200
29,619
10,450
-
-|-
37,569
-||-
4,200
2,500
-|
||29,619 14,650|37,569||- 6,700|
||||||
||**141,918**
**217,167**|**238,299**||**(11,245)**
**109,541**|
14
## **10.2 Details of Funds Held**
## **Unrestricted Funds (General)**
The general fund is unrestricted and available for general purposes.
## **Restricted Funds**
The restricted funds are only available for the purposes specified for each fund, which are:
## **Turkahan Building fund**
A fund to build three more classrooms which will enable children to have full days schooling rather than the current shift system
## **Patehra building fund**
A fund to extend the building with three rooms for a secondary school which will enable more children to stay in the education system.
## **Nutrition**
A fund to enable the improvement in physical improvement through healthcare and nutrition.
## **Smartboards**
Donations given and matched by The Big Give Christmas Challenge for smartboards in schools.
## **11 Net assets between funds**
|Fixed assets
Current assets
Current liabilities
**Balance at 31st March 2021**
**Balance at 31st March 2020**
Fixed assets
Current assets|**Unrestricted**
**Funds**
**£**
50,166
71,088
(550)|**Restricted**
**Funds**
**£**
-
-
-
**-**
**Restricted**
**Funds**
**£**
6,700
-
**6,700**|**Total**
**2021**
**£**
50,166
71,088
(550)|
|---|---|---|---|
||**120,704**||**120,704**|
||**Unrestricted**
**Funds**
**£**
43,444
60,189
(792)||**Total**
**2020**
**£**
43,444
66,889
792
-|
||**102,841**||**109,541**|
15