Minutes to the Meeting of the Executive Board of the ... · more Sahaja Yogis than every before came to Cabella on a pilgrimage. Today it is difficult to remember the sense of risk

Enrolled in the regional register of judicial entities in the ‘Regione Piemonte’, Italy (prot. no. 747)

FINANCIAL REPORT for the year ended 31st December 2009

CONTENTS

Vice President’s Introduction.................................................................................. 1

Balance Sheet .......................................................................................................... 4

Income & Charges Report....................................................................................... 6

Income & Charges Report by activity..................................................................... 8

Cash Flow Statement............................................................................................. 10

Accompanying Notes ............................................................................................ 10

Auditors’ Report ................................................................................................... 19

Appendix I – Expense Details

Appendix II – Income Details

Appendix III – Tax Calculation

13th June 2010

Vice President’s Introduction 1

To the Board of Directors If 2008 was a year of consolidation in which H.H. Shri Mataji Nirmala Devi guided us towards a better understanding and definition of the mission of the Foundation, 2009 was the year when major steps were taken to give concrete from to that mission, specifically in the field of education. Most importantly a new school building was purchased and important renovation work carried out for the launch of the English section of the Cabella International Sahaja School.

It also has to be said that in 2009 the Foundation managed to raise more money in donations than has ever before been achieved in Sahaja Yoga over such a short period. This is partly due to the act of supreme generosity of H.H. Shri Mataji Nirmala Devi and Sir CP Srivastava, who donated to theWorld Foundation a total of € 600,000. However, by the blessings of H.H. Shri Mataji Nirmala Devi, the World Foundation also received a huge amount of smaller donations from Sa

haja Yogis

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t introducing or consolidating Sahaja Yoga meditation in countries where it is not yet established.

enhance

international Sahaja Yoga festival attended by about 2,000 yogis from all over the

all over the world: € 958,302 from the international appeal; € 536,849 collected on the occasion of pujas and seminars in Cabella.

This is without doubt due to the sense of belief and enthusiasm that was created around the idea of Cabella as a centre for Sahaja Yoga education. It was also the result of a happy coincidence of two major pujas in Cabella taking place back-to-back in the middle of the homore Sahaja Yogis than every before came to Cabella on a pilgrimage.

Today it is difficult to remember the sense of risk that pervaded the decision to launch a fundraisincampaign which, in its dimensions, was unprecedented in Sahaja Yoga. It was a courageous stepbased on faith, not only in our Divine Mother but also in the Sahaja Yoga collective. Today our heartfelt gratitude goes out to Shri Mataji, who is our guiding light and inspiration, but also tbrothers and sisters around the world who proved that our belief in them was well-founded.

It is also worthy of note that in 2009 the regional government of Piemonte responded to our application for funding by awarding the Foundation the full amount of € 200,000. Although this money will not be available for use before 2010, this is an important landmark in our attempts to source funds from outside the word of Sahencourage further initiatives of this kind.

Other than the school, the money raised was also spent to further the mission of the Foundation in other directions. For example, the Foundation continued to fund the Tape Preservation Projeextremely important initiative aimed at creating a fully-optimized, digital archive of all Shri Mataji’s speeches that can be handed down to future generations. It has also set aside resourcethe launch in 2010 of a project for the improvement of facilities for people visiting Cabella to participate in the events that take place in the World Centre every year. There are plans for the purchase and development of a new campsite and for improvements to the hangar/conference hall. In 2009 the Foundation also set up a small grants section, awarding small amounts to projects aimeda

With regard to the World Centre, in 2009 the Executive Committee worked to promote andthe activities traditionally organized in Cabella, providing services and infrastructure for: 7 international pujas celebrated in the presence of H.H. Shri Mataji Nirmala Devi; A 10-day

world;


The Arts Academy, which in 2009 significantly increased the range of courses on offer; An arts festival open to the general public which attracted about 1,000 from cities in the

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ving time to the

ogis

e new school building, and carrying forward the

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remain; research is currently underway to establish the most opportune shion for this be done.

ludes the following documentation:

ber 2009;

ort divided by activity;

es; 7. Auditor’s Report.

a

, members should not hesitate to contact management to ask for clarification or more information.

north of Italy; The summer camp for children in Daglio; Various national and theme-based seminars.

It is encouraging to see how the World Centre in Cabella is becoming ever more a point of reference for the international Sahaja Yoga collective. Over and above the people attending puand other events in Cabella, over a six-month period covering the summer months, the WorldCentre managed a staff of up to 80 volunteers per day, helping with the care of Shri Mataji’shousehold, maintenance of Foundation properties and support services to the events held in Cabella. Altogether just under 600 people offered volunteer services to the World Centre, withconsidering the long-term volunteers working for the school and the Commercial Unit. Their contribution is an asset which does not appear in the balance sheet; nevertheless, it is of enormous value and importance for the smooth running of the activities of the Foundation. GiFoundation is as important as giving funds and for this we are immensely grateful.

The launch of the English section of the International Cabella Sahaja School saw student numbersincrease from 35 to 45, with about 18 children joining the school for the first time and 8 children graduating or leaving. 2009 also saw the establishment of the School Steering Committee. Chaired by Sadhana Varma, Shri Mataji’s daughter, the committee constitutes a group of elder Sahaja Ywith experience and expertise in education, delegated by the Board of Directors to manage the governance function of the school. Its mandate is to carry forward Shri Mataji’s vision of Cabellaas an international centre of Sahaja Yoga education; in the short-to-medium term it is focused on completing the renovation work to Casa Forme, thprocess of formal recognition as a private school.

The turnover of the Commercial Unit was € 324,838 in 2009, of which € 244,082 from direct salesand € 80,756 from indirect sales. This is a less than expected but nevertheless a 30% incrthe preceding year. The pre-tax loss of € 133,000 is largely explained by the cost of the Preservation Project. In 2010 the Commercial Unit is expected to generate enough income to start covering this cost in part. Regarding the source of revenue, the main channel continues to be evensales, in particular those held in Cabella. The increase in turnover is attributable above all tointroduction of a range on new books and magazines, supported and approved by the newly founded “Publishing Committee”. Plans to break the Commercial Unit away from the Foundation into a separate legal entityfa The World Foundation Financial Report 2009 inc

1. Balance Sheet as of 31 Decem2. Income & Charges Report; 3. Income & Charges Rep4. Cash Flow Statement; 5. Appendices I, II and III 6. Accompanying Not

The documents have been reviewed by the Executive Committee and are now submitted to the Board of Directors for their approval, as required by the statute of the Foundation. They representconcise synthesis of what is fast becoming a complex administrative and management operation. Should any part of them be unclear


I humbly submit this report at the Lotus Feet of our Divine Mother and ask you to join me in asking for her loving guidance; we know that the Foundation and its activities are in her heart and we pray for the insight, discernment and strength to carry forward and realise her vision.

With love and respect,

Aldo Gandolfi Vice President

A) EQUITY 3,902,797 2,496,556 I. Endowment Fund 1,950,000 1,950,000 II. Share Premium Account 0 0 III. Revaluation Reserve 0 0 IV. Legal Reserve 0 0 V. Reserve for own Shares 0 0 VI. Statutory Reserves 0 0 VII. Other Reserves (1) 0 VIII. Profit or Loss Brought Forward 546,556 343,033 IX. Profit or Loss for the Fininacial Year 1,406,242 203,523

B) PROVISIONS FOR LIABILITIES AND CHARGES 0 0

C) TERMINATION INDEMNITIES FUND 15,482 7,459

D) ACCOUNTS PAYABLE 235,348 759,512 * within 12 months 235,348 259,512 * after 12 months 0 500,000

E) ACCRUALS AND DEFERRED INCOME 100,064 83,598

TOTAL EQUITY AND LIABILTIES 4,253,691 3,347,125

2009 2008

EQUITY AND LIABILITIESBALANCE SHEET

TOTAL EQUITY AND LIABILTIES 4,253,691 3,347,125

I hereby declare that the present balance conforms to legal requirements: On behalf of the Board of DirectorsVice PresidentAldo Antonino Gandolfi

Financial Statements as at 31/12/2009 5

A) INCOME FROM OPERATING ACTIVITY 1) Revenue from Sales and Services 376,708 251,056 2) Stock Variations 0 0 3) Orders Variations 0 0 4) Increase in Asset Value due to Improvements 1,037,069 239,837 5) Other Operating Income 2,175,908 779,022

TOTAL INCOME OPERATING ACTIVITY 3,589,685 1,269,915

B) CHARGES FROM OPERATING ACTIVITY 6) Stock 101,046 96,659 7) Services 735,522 638,713 8) Use of Third Party Assets 107,880 81,828 9) Staff Costs 166,513 100,657 a) Wages and salaries 120,641 70,721 b) Social Security Costs 37,831 25,063 c) Termination Indemnity Costs 8,041 4,710 e) Other Staff Costs 0 163 10) Depreciation 19,617 10,513 a) Intangible Assets 527 132 b) Tangible Assets 19,090 10,381 d) Writedowns 0 0 11) Variations in Stock (33,634) (42,350)

INCOME AND CHARGES STATEMENT

2009 2008

11) Variations in Stock (33,634) (42,350) 12) Risk Fund 13) Other Reserves 14) Other Operating Expenses 1,058,647 138,793

TOTAL CHARGES OPERATING ACTIVITY 2,155,591 1,024,813

DIFFERENCE BETWEEN INCOME AND CHARGES FROM OPERATING ACTIVIES (A - B) 1,434,094 245,102

C) FINANCIAL INCOME AND CHARGES 15) Income from Stocks and Shares 16) Other Financial Income 34,863 22,708 d) Other 34,863 22,708 17) Interest and Other Financial Charges (40,479) (24,403)

TOTAL (15 + 16 - 17) (5,616) (1,695)


D) ADJUSTMENTS TO VALUE OF FINANCIAL ASSETS 18) Revaluations 0 0 19) Devaluations 0 22,206

TOTAL VALUE OF ADJUSTMENTS (18 - 19) 0 (22,206)

E) EXTRAORDINARY INCOME AND CHARGES 20) Income 17,680 772 21) Charges (4,566) 0

TOTAL EXTRAORDINARY INCOME AND CHARGES (20 - 21) 13,114 772

PROFIT OR LOSS BEFORE TAX (A - B + C + D + E) 1,441,592 221,973

22) Income Tax (35,350) (18,450) * current (35,350) (18,450) 26) Profir or Loss for the Period 1,406,242 203,523

INCOME AND CHARGES STATEMENT (cont.)

20082009



A) INCOME FROM OPERATING ACTIVITY 1) Revenue from Sales and Services 0 244,082 132,627 2) Stock Variations 0 0 0 3) Orders Variations 0 0 0 4) Increase in Asset Value due to Improvements 1,037,069 0 0 5) Other Operating Income 2,095,151 80,756 0

TOTAL INCOME OPERATING ACTIVITY 3,132,220 324,838 132,627

B) CHARGES FROM OPERATING ACTIVITY 6) Raw Materials and Consumables 0 101,046 0 7) Services (see Appendix I) 399,863 303,086 32,573 8) Use of Third Party Assets (see Appendix I) 91,944 3,500 12,436 9) Staff Costs 77,423 19,667 69,423 a) Wages and salaries 55,295 14,598 50,747 b) Social Security Costs 18,288 4,132 15,411 c) Termination Indemnity Costs 3,840 937 3,265 e) Other Staff Costs 0 0 0 10) Depreciation 19,617 0 0

INCOME & CHARGES STATEMENT BY ACTIVITY12/31/2009

Institutional Activity Commercial Activity School Activity

10) Depreciation 19,617 0 0 a) Intangible Assets 527 0 0 b) Tangible Assets 19,090 0 0 d) Writedowns 0 0 0 11) Stock Variations 0 (33,634) 0 12) Risk Fund 0 0 0 13) Other Reserves 0 0 0 14) Other Operating Expenses (see Appendix I) 918,645 61,620 78,382

TOTAL CHARGES OPERATING ACTIVITY 1,507,492 455,285 192,814

DIFFERENCE BETWEEN INCOME AND CHARGES FROM OPERATING ACTIVIES (A - B) 1,624,728 (130,447) (60,187)

C) FINANCIAL INCOME AND CHARGES 16) Other Financial Income 33,829 183 851 17) Interest and Other Financial Charges (36,896) (3,024) (559)

TOTAL (16 - 17) (3,067) (2,841) 292

Financial Statements at 31/12/2009 8

D) ADJUSTMENTS TO VALUE OF FINANCIAL ASSETS 18) Revaluations 0 0 0 19) Devaluations 0 0 0

TOTAL VALUE OF ADJUSTMENTS (18 - 19) 0 0 0

E) EXTRAORDINARY INCOME AND CHARGES 20) Income 17,680 0 0 21) Charges (4,566) 0 0

TOTAL EXTRAORDINARY INCOME AND CHARGES 13,114 0 0 (20 - 21) PROFIT OR LOSS BEFORE TAX 1,634,775 (133,288) (59,895) (A - B + C + D + E)

22) Income Tax * current (7,950) (17,600) (9,800) 26) Profir or Loss for the Period 1,626,825 (150,888) (69,695)

INCOME & CHARGES STATEMENT BY ACTIVITY (CONT.)12/31/2009

Institutional Activity Commercial Activity School Activity

26) Profir or Loss for the Period 1,626,825 (150,888) (69,695)



A) CASH SITUATION BEGIING O PERIOD 197,342

B) CASH FLOWS FROM OPERATING ACTIVITIES 826,648Profit (loss) for the period 1,406,242Depreciation and reserves 19,617Net variations in Termination Indemnity Costs 8,023Net variations in stock (33,634)(Increase) decrease in accounts receivable (62,189)Increase (decrease) in debts towards suppliers and other debts (524,165)Net variations in prepayments and accrued income 12,754

C) CASH FLOWS FROM INVESTMENT ACTIVITIES (754,460)(Investment) disinvesment in fixed assets

Financial 373,000Intangible (1,978)Tangible (1,124,392)Reductions depreciation fund (1,090)

CASH FLOW STATEMENT2009

D) CASH FLOWS FROM FINANCIAL ACTIVITIES 0Increase to endowment fund 0Reimbursements 0New loans 0

E) NET CASH FLOWS FOR THE PERIOD (B + C + D) 72,188

F) CASH SITUATION END OF PERIOD (A + E) 269,530of which:- bank deposits 228,735- petty cash 40,795


ACOMAPNYING NOTES TO THE FINANCIAL STATEMENTS for the year ended 31/12/2009

1. STRUCTURE AND CONTENT The Foundation’s Financial Statements have been drawn up based on criteria established by the Accountants Commission for non-profit organizations.

The Financial Statements for the year ended December 31, 2009 comprise the Balance Sheet, the Income and Charges Report, the Income and Charges Report for the Commercial Activity, the Notes, the Cash Flow Statement and Auditors’ Report.

Where possible, the Financial Statements for 2009 have been set along side those of 2008 so as to assist comparison between the figures and to highlight variations.

The Foundation is a non-profit organization with the following object: “perpetuating, documenting and spreading all over the world, the knowledge of the teachings of Mrs. Shrivastava Chandrika Prasad Nirmala, and of supporting, all over the world, the practice of meditation founded by Her, known as Sahaja Yoga”.

In the course of 2009 the Foundation has developed its mission along three lines, which already characterised the activity of 2008: the putting together of structures with a view to hosting educational/training activities in the Val Borbera, investments aimed at spreading the teachings of H.H. Shri Mataji Nirmala Devi in the world (through the distribution and sale of DVDs, audios and books) and the work of preserving and conserving the intellectual property of Shri Mataji. Of particular relevance to the financial report, therefore, are the investment for the purchase of a multi-functional building in Cabella Ligure, the expansion of the commercial activity and the investments made in the process of digitalisation and optimisation of the tapes containing the intellectual property of Shri Mataji.

In this regard, the Foundation keeps separate accounts for any activity classified as commercial, recording VAT and preparing sectional income and charges statements, as required by Italian law.

1.1 Evaluation Criteria

The key evaluation criteria used in drawing up the financial report remain substantially unchanged from last financial year and, in observance of art. 2426 c.c., are as follows:

Intangible Fixed Assets

These are recorded at the original cost of purchase or production, including subsidiary costs, and systematically depreciated over the period of their predicted useful lifetime.

Tangible Fixed Assets

The properties, classified into categories and recorded at their purchase price or cost of production, have been depreciated in relation to the economic opportunities they still offer.

Valued net of accrued depreciation, they are systematically depreciated every financial year based on established rates, as recorded below.

For property acquired in the current financial year, the rate of depreciation is reduced by 50%, taking into account the average, useful lifetime of the property.

Maintenance costs, being an ordinary expense, are recorded in their entirety in the Income and

Accompanying Notes to the Financial Statements as at 31/12/2009 11

Charges Report.

Stock

Unsold stock is recorded at average cost for the financial year.

Accounts Receivable

Accounts receivable are recorded at their presumed conversion value.

Investments which do not involve fixed assets

Investments are valued at the purchase or subscription cost, duly reduced in the case of a downturn in share value.

Cash and Cash Equivalents

These are recorded at their nominal value.

Prepayments and Accrued Income

Income and charges common to two or more financial years are recorded in this category so as to respect the principles of accrual based accounting. The division of the amounts is calculated based on the concept of time of realisation.

Termination Indemnity Fund

The termination indemnity fund is set aside to cover the debt owed to employees in conformity with Italian law and national collective labour contracts.

Accounts Payable

Accounts payable are recorded at their nominal value.

Taxes

Income tax is set aside so as to comply with Italian law, taking into account any applicable exemptions.

1.2 Other Information

Income and charges have been calculated according to the principles of accrual based accounting, such that the effects of transactions and other events are recognised when they occur, and not when cash or cash equivalents are received or paid. They are recorded in the accounting records and reported in the Financial Statements of the periods to which they relate.

The criteria used to establish values are based on the principle of neutrality and remain unvaried with respect to the preceding financial year.


Currency

Unless otherwise indicated, the figures reported in the financial statements (Balance Sheet, Income & Charges Report and Notes) are expressed in Euros, rounded off to the nearest whole number.

2. NOTES ON BALANCE SHEET ITEMS UNDER ‘ASSETS’

2.1 Fixed Assets

For the two categories of fixed assets (tangible and intangible) special tables have been prepared (see below) showing their historical value, past depreciation and past revaluations, changes over the financial year and the closing balance.

Intangible Assets

These consist of costs borne for the acquisition of software.

INTANGIBLE FIXED ASSTES software internet site TOTAL

Historical value 659 0 659

Past depreciation fund 463 0 463

Value start of financial year 196 0 196

Sales during financial year 0 0 0

Reductions depreciation fund 0 0 0

Purchases during financial year 1.428 550 1.978

Depreciation during financial year 417 110 527

Net value 1.207 440 1.647

Total depreciation fund 880 110 990

Historical cost end of financial year 2.087 550 2.637 Tangible Assets

In the tables that follow the most significant transactions relating to tangible fixed assets are analysed.

Depreciation has not been applied to the buildings and the land which were donated to the Foundation at the time of its constitution by its founder, Mrs. Srivastava Chandrika Prasad Nirmala, because they are not considered to have lost value over time or due to wear and tear. The investments made on improving the properties over the financial year have been capitalised, as well as the purchase of the building ‘Casa Forme’ in Cabella Ligure, including direct ascribable costs such as, for example, notary costs and related taxes.

Office furniture and equipment was also purchased . A Ford Transit van was sold and immediately replaced by another Ford Transit van.

Depreciation of tangible fixed assets is calculated from the moment they start being used based on their hypothetical useful lifetime and residual possibility of use; in the first year of use the rate of depreciation is reduced by 50%. The rates of depreciation have been calculated with reference to accepted fiscal norms.


Description Rate of

Depreciation

Vehicles 20%

Equipment 15%

Furniture 12%

Electronic office equipment 20%

Land Buildings Total

Historical value 263.403 2.251.434 2.514.837

Value start of financial year 263.403 2.251.433 2.514.837

Sales during financial year 0 0 0

Purchases during financial year 15.000 1.022.069 1.037.069

Net value 278.403 3.273.502 3.551.906

Total depreciation fund 0 0 0

Historical cost end of financial year 278.403 3.273.503 3.551.906

Other Property FurnitureElectronic Equipment

Equipment Vehicles Totale

Historical value 44.348 4.876 0 37.900 49.224

Past depreciation fund 3.915 1.026 0 9.190 4.941

Value start of financial year 40.433 3.850 0 28.710 44.283

Sales during financial year 0 0 0 10.900 0

Reductions depreciation fund 0 0 0 1.090 0

Purchases during financial year 46.685 13.563 22.475 15.500 98.223

Depreciation during financial year 8.123 2.331 1.687 6.950 19.091

Net value 78.995 15.082 20.788 27.450 142.3150

Total depreciation fund 12.038 3.357 1.687 15.050 32.132

Historical cost end of financial year 91.033 18.439 22.475 42.500 174.447

2.2 Current Assets

Stock

This refers to goods unsold as of the 31st December 2009. Compared to 2008, stock has increased

by € 33,634.


Accounts Receivable

As of 31st December 2009 accounts receivable from clients totalled € 176,575= and derive from the commercial activity. About € 140,000 refers to fees for the school and hostel facility. They include credit notes not yet issued for € 3,409=.

Other accounts receivable amount to € 13,226=, consisting of credit with the inland revenue for withholding tax.

Accounts receivable after the end of the financial year refer to receivable securities.

Accounts receivable after more than five financial years are not recorded.

Investments

Shares issued by the Banca Popolare di Milano and the Banca Nazionale del Lavoro for a value of € 395,206=, devalued on the 31st December 2008 in line with market value, were sold in their entirety in 2009.

Cash and Cash Equivalents

These consist of € 228,736= deposited in bank accounts and € 40,794= deposited as petty cash.

This is an increase of around 73 thousand Euros compared to the balance of approx. € 197,000= at the end of last financial year.

2.3 Prepayments and Accrued Income

Prepayments for insurance and financing fees on the loan received for the purchase of the Fiat Ducato van and relative to the leasing of the school bus have been recorded in this financial year.

3. NOTES ON BALANCE SHEET ITEMS UNDER ‘EQUITY & LIABILITIES’

3.1 Equity

Equity has been calculated based on the following:

the endowment fund of € 1,950,000= profit of € 203,523= brought forward from the 2008 financial year profit of € 1,406,242= for the 2009 financial year

Endowment

fundOther reserves

Profits brought forward

Profits for financial year

Totals

Value as at 31.12.2006 1.950.000 0 0 46.205 1.996.205Variations 0 -1 46.205 250.623 296.827Value as at 31.12.2007 1.950.000 -1 46.205 296.828 2.293.032Variations 0 1 296.828 -93.305 203.524Value as at 31.12.2008 1.950.000 0 343.033 203.523 2.496.556Variations 0 -1 203.523 1.202.719 1.406.241Value as at 31.12.2009 1.950.000 -1 546.556 1.406.242 3.902.797


3.2 Termination Indemnities Fund

This is made up of the real debt matured towards employees, in conformity with Italian law and national labour contracts currently in force.

Staff of the Foundation as at 31.12.2009 consists of nine employees, of which one works in the commercial unit and five in the school sector. In the course of the year five new people were employed.

Payments refer to taxes due on the termination indemnities fund.

Year 2009 2008

Initial value 7.459 2.750

Allocation for the year 8.041 4.718

Payments 18- 9-

Final value 15.482 7.459 3.3 Accounts Payable

Reported below are the transactions for the financial year relating to this category.

DescriptionValue start financial

yearIncrease (+) Decrease

(-)Value financial year

end

Payable within 12 months

to suppliers 50.874 40.563 91.437

for taxes 13.640 10.221 23.861

to social security institutions 5.633 3.997 9.630

various 189.365 -78.945 110.420

Payable after 12 months 0

for financing 500.000 -500.000 0

Total 759.512 -524.164 235.348

Debts towards suppliers include € 56,898= for invoices yet to be received.

Tax debts include Irpef withholding tax in relation to the last month of the year, VAT for the 4th quarter of 2009 and income tax for the period, net of payments already made, of € 12,708=.

Social security debts include the amount due to the relevant institutions for the last month of the 2009 financial year.

Debts various include € 20,886= payable to employees (unused holidays and 14th month) and royalty payments of € 77,800= for the 2009 financial year.

Debts payable more than 12 months after the end of the financial year went to zero because the debt deriving from the loan from Mrs. Nirmala Srivastava, repayable with interest in yearly instalments of € 100,000, was offset by a donation of an equivalent amount made by Mrs. Nirmala Srivastava (€ 600,000).


3.4 Accruals and Deferred Income

Deferred income refers to income from the school activity amounting to € 100,064=, invoiced in 2009 but relative to 2010.

4. NOTES ON ITEMS OF THE INCOME AND CHARGES STATEMENT

The income and charges statement includes all the activities of the Foundation, including the commercial activity. A sectional income and charges statement is included in the Financial Report, as required by Italian fiscal norms, highlighting separately the results obtained from the institutional activity and the commercial activity.

4.1 Income from Operating Activity

Revenue from Sales and Services: this amounts to € 376,708= and relate to the commercial activity (this includes the school activity but not revenue from indirect sales i.e. deriving from the licence agreement). This is an increase of about 125 thousand compared to the previous financial year.

Other Operation Income: this refers to € 2,092,987= in donations received (i) from participants at events held in Cabella during the financial year (ii) as a result of international fundraising efforts (including the donation of € 600,000 made by Mrs. Srivastava), (iii) € 73,801= in license fees from indirect sales and (iv) other modest earnings from reimbursements.

See Appendix II for a more detailed breakdown of income.

4.2 Charges from Operating Activity

Raw Materials and Consumables: a total of € 101,046= relating to the commercial activity.

Services: the most significant items in this category are (i) the investments made to improve the properties, (€162 thousand Euros), (ii) consultancy fees relating to the commercial activities (190 thousand Euros) and (iii) service charges (telephone, gas, electricity etc.). Also included in this category are (iv) the royalties payable on direct sales (€ 80,200=). The amount has increased by about 96 thousand Euros compared to last financial year.

Use of Third Party Assets: this refers to (i) € 84,693= for the hire of additional infrastructure on the occasion of events organised in Cabella Ligure and also (ii) € 4,841= for the rent of additional space and facilities (gym, meeting rooms, kitchens, toilet facilities etc.) from the local government. It also includes (iii) the cost of leasing the school bus (€ 4,850=).

Other Operating Expenses: the main items in this category are rubbish disposal and the wages and expenses of collaborators. There has been an increase of about 920 thousand Euros, because included in this item is the purchase of a building and a piece of land, amounting to € 785,000=, a cost which has been completely capitalised. The rest is largely due to costs associated with the school activity (food, school supplies) and also stationary, stamps and other taxes.

4.3 Financial Income and Charges

This relates to bank charges and bank interest (positive and negative) and interest on the loan obtained to purchase the Fiat Ducato van (€ 190=).



4.3 Extraordinary Income and Charges

Charges: this refers to the non-operating profit resulting from the cancellation of accrued charges of € 17,680= recorded in 2008 relative to interest matured on the loan which is no longer repayable because it was renounced by the creditor, Mrs. Nirmala Srivastava.

4.4 Profit (Loss) for the Financial Year

Income Tax includes IRES (national taxes) of € 24,050= and IRAP (regional taxes) of € 11,300= for the financial year, applied only to the commercial activity and the properties owned.

Profit (or Loss) for the Period amounts to € 1,406,242=.

The present financial report, made up of the Balance Sheet, Income and Charges Statement and Notes to the Financial Statements, are a true and accurate reflection of the financial position and financial performance of the Foundation, including profit and loss for the period, and are the result of the ledger entries for the financial year 2009.

Aldo Antonino Gandolfi Vice President

BOARD OF AUDITORS REPORT

FINANCIAL REPORT FOR THE YEAR ENDING 31ST DECEMBER 2009

OF THE SHRI MATAJI NIRMALA DEVI SAHAJA YOGA WORLD FOUNDATION

The Board of Auditors received the 2009 Financial Report from the Board of Directors comprising:

Balance Sheet, Income and Charges Statements, Accompanying Notes, Cash Flow Statement.

It was given sufficient time to prepare its report and express its opinion on the content.

The responsibilities of the Board of Auditors, as per article 2409 of the Civil Code, are to carry out

periodic audits and to write up reports on their outcome. During these audits we have been able to

verify that the company books and accounts have been properly kept.

The Foundation manages commercial activity for which separate accounts and VAT records are

kept, as required by Italian fiscal law. A separate income and charges statement related to the

commercial activity is included in the financial statements.

The Foundation’s 2009 Financial Report has been drawn up based on criteria established by the

Accountants Commission for non-profit organizations. The year closes with a profit of €

1,406,242=, net of depreciation and allocations of € 19,617=. There was an increase in asset value

of € 1,107,843= due to investments. Equity on the 31st December 2009 stood at € 3,902,797=

compared to € 2,504,764= at the end of the previous financial year.

The cash flow situation is shown in the cash flow statement and highlights the way in which funds

were absorbed by operating activities, investments and financial activities.

The preparation and drawing up of the Financial Report is the task of the administrative body of the

Foundation, while it is the responsibility of the Board of Auditors to express their professional

opinion on the financial statements based on the outcome of their audit.

Having carefully audited the financial statements we can affirm that the information reported in the

Balance Sheet, Income and Charges Statements and Accompanying Notes corresponds to the

figures recorded in the company books, which are kept according to the norms established by Italian

law and in the Foundation’s statute.

The audit of the financial statements and the periodic audit of the accounts and of the bookkeeping

were carried out using procedures and methodologies appropriate to the functions and the

dimension of the activity, so as to provide a reasonable basis from which to express a professional

opinion and to exclude the possibility of significant error.

Board of Auditors Report on the 2009 Financial Report 19

Board of Auditors Report on the 2009 Financial Report 20

The evaluation criteria adopted for the Balance Sheet and the modality in which they have been

represented are substantially unchanged compared to last financial year. The criteria have been

communicated to us and we can confirm that they comply with Italian accounting principles and

norms.

The Accompanying Notes provide the required complementary information for a proper

understanding of the financial statements and the cover letter adequately describes the activities of

the Foundation.

In conclusion, we believe that the outcome of our audit shows that the Financial Report of the Shri

Mataji Nirmala Devi Sahaja Yoga World Foundation for the year ending 31st December 2009 is

credible, complies with the norms that govern the compilation of such a document and is an

accurate statement of the assets and liabilities of the Foundation, of its financial position and of the

outcome of the financial year.

As such, we invite you to approve the Financial Report for the year ending 31st December 2009.

The Board of Auditors:

Maria Gallo Alessandro Sabolo Cristina Ciartano

8th June 2009

APPENDIX 1: DETAILS TO THE INCOME CHARGES STATEMENT

7) SERVICES 735,522

Commercial Activity 303,086Freight and Transportation 7,231Gas 6,771Consultants 179,472

Adi Consulting 66,071Devi Productions 103,532Devi Film 3,600VideoFilm AZ 1,250Bhamra Hardev 4,270Visivodessing 749

Electricity 16,021Telephone 3,325Printing of Books 6,063

Anima 4,000Dimensions Mag 2,063

Technical Services 4,003Walr Mastering 358Paradine 2,800Selin 374Foto Casini 471

Royalties 80,200

Hostel Activity 32,573Meals 8,305Electircity 7,450Telephone 804

Financial Statements as at 31/12/2009

Telephone 804Gas 6,552Insurance 6,425Repairs 1,837Translations 1,200

Institutional Activity 399,863Building Consultants 13,618Administrative 21,982Base 3 (internet provider) 8,888Legal 28,764

Tosetti 16,964Bonelli 7,000Owens 4,000Picasso 500Monti 300

Gas 23,812Subsidy Comune of Albera 5,000Building & Renovation Work 161,927Notary 93,548Electricity 4,190Telephone 10,061Insurance 12,010Compensation Auditors 2,000Other 14,063

8) USE OF THIRD PARTY ASSETS 107,880

Commercial Activity 3,500Warehouse rent 3,500


APPENDIX 1: DETAILS TO THE INCOME CHARGES STATEMENT

Hostel Activity 12,436Leasing School Bus 12,436

Institutional Activity 91,944Rental Services 84,693

Italtende 58,800Vel car 13,988Strutture 10,448Other 1,457

Rent on property 4,842Space from local Comune 4,842

Car Hire 2,409

14) OTHER OPERATING EXPENSES 1,058,647

Commercial Activity 61,620Travel & Entertainment 3,286Collaborator Wages 39,636Various 18,698

Hostel Activity 78,382School Matrials 5,399Food & Household Goods 55,779Water 126Inded. Costs 3,587Petrol/Diesel 3,702Various 1,153


Various 1,1538,636

Institutional Activity 918,645Petrol/Diesel 2,096Water 2,061Assets 785,000Assets worth less that € 516 14,800Stationary 2,021Consumables 34,863

Tocci Walter 5,106Franzante L. 3,495Comoli 16,977EDIL2000 772Re.Ro 771Angelo Orsono srl 2,277Self G4 886Various 3,314Building material for Casa Forme 1,265

Travel & Entertainment 3,363Waste Disposal 14,612Expenses Collaborators 13,952Expense Claims 11,314Taxes 12,723Various 21,840


APPENDIX II - 2009 Income Breakdown

Donations 2,095,151 Fundraising Appeal 936,232 Pujas & Events in Cabella 536,849 Shri Mataji Nirmala Devi 600,000 Various 22,070

Commercial Unit Sales 244,082Royalty Collections from License Agreements 80,756School Fees 132,627Total Income 2,552,616

Detailed Result of 2009 Fundraising Appeal (by country)

Country Amount % contribution to Fundraising Effort

Italy 127,786 13.65%Austria 113,422 12.11%France 68,928 7.36%Germany 63,449 6.78%Australia 52,906 5.65%Russia 51,298 5.48%Switzerland 48,477 5.18%Switzerland 48,477 5.18%USA 45,909 4.90%UK 40,167 4.29%Ukraine 27,962 2.99%Hong Kong 24,492 2.62%Romania 22,521 2.41%Spain 22,400 2.39%Belgium 20,177 2.16%Netherlands 18,020 1.92%Finland 17,371 1.86%Brazil 16,075 1.72%Canada 13,897 1.48%Turkey 13,862 1.48%South Africa 11,942 1.28%Bulgaria 9,760 1.04%Israel 9,250 0.99%Czeck Republic 7,858 0.84%Slovenia 7,760 0.83%Greece 7,386 0.79%Taiwan 6,621 0.71%Malaysia 5,501 0.59%Cyprus 4,558 0.49%Singapore 4,302 0.46%New Zealand 4,244 0.45%Poland 3,841 0.41%Unknown Donors 3,483 0.37%India 3,234 0.35%Slovakia 3,190 0.34%UAE 3,000 0.32%Lithuania 2,795 0.30%

Vietnam 2,396 0.26%Ireland 2,280 0.24%Norway 2,222 0.24%China 2,126 0.23%Japan 2,056 0.22%Estonia 1,838 0.20%Portugal 1,500 0.16%Indonesia 1,396 0.15%Thailand 1,396 0.15%Aruba D.C. 1,353 0.14%Cameroun 1,292 0.14%Sweden 1,170 0.12%Oman 1,165 0.12%Kazakhstan 1,000 0.11%Bermuda 982 0.10%Iceland 800 0.09%Iran 800 0.09%Argentina 700 0.07%Chile 500 0.05%Hungary 490 0.05%Shrilanka 345 0.04%Moldava 200 0.02%Mexico 150 0.02%Luxembourg 130 0.01%Madagascar 100 0.01%TOTAL 936,232 TOTAL 936,232

APPENDIX III: TAX CALCULATION 2009

IRES (national taxes) 24,019.94

TURNOVER COMMERCIAL UNIT 324,288.00TAXABLE AMOUNT 48,643.20TAXES PAYABLE 27.50% 13,376.88

TURNOVER SCHOOL ACTIVITY 132,627.00TAXABLE AMOUNT 19,894.05TAXES PAYABLE 27.50% 5,470.86

LAND AND BUILDINGSBUILDINGS (TAXABLE AMOUNT) 18,132.00LAND (TAXABLE AMOUNT) 676.00TOTAL TAXABLE AMOUNT 18,808.00TAXES PAYABLE 27.50% 5,172.20

IRAP (regional taxes) 8,587.10

Because we are a not-for-profit organisation, a special tax rate of 27,50% is applied to 15% of turnover of commercial activity. The Foundation may opt out of this if it chooses.

Regional taxes apply mainily to employees and collaborators. There is no special concession for non profit organisations.

COMMERCIAL UNITPAYABLE ON EMPLOYEES 19,667.00PAYABLE ON COLLABORATORS 39,637.00

59,304.00TAXES PAYABLE 3.90% 2,312.86

SCHOOL ACTIVITYPAYABLE ON EMPLOYEES 89,090.00OTHER 1,715.00

90,805.00TAXES PAYABLE 3.90% 3,541.40

INSTITUTIONAL ACTIVITYPAYABLE ON EMPLOYEES 77,423.00

(7,350.00)70,073.00

TAXES PAYABLE 3.90% 2,732.85

TOTALE IRES 24,019.94TOTALE IRAP 8,587.10TOTAL TAXES PAYABLE 32,607.04

special concession for non profit organisations.

Documents

Minutes to the Meeting of the Executive Board of the ... · more Sahaja Yogis than every before came to Cabella on a pilgrimage. Today it is difficult to remember the sense of risk