Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Enrolled in the regional register of judicial entities in the ‘Regione Piemonte’, Italy (prot. no. 747)
FINANCIAL REPORTfor the year ended 31st December 2007
CONTENTS
Vice President’s Introduction ................................................................................. 1
Balance Sheet.......................................................................................................... 3
Income & Charges Report ...................................................................................... 5
Income & Charges Report Commercial Unit ......................................................... 7
Cash Flow Statement .............................................................................................. 9
Accompanying Notes............................................................................................ 10
Auditors’ Report .................................................................................................. 17
Vice President’s Introduction 1
29th April 2008
To the Board of Directors
Let me open by offering the 2007 Financial Report of the WorldFoundation at the Lotus Feet of Our Holy Mother, Shri MatajiNirmala Devi. Our work is meaningless without the shining light ofHer divine presence. She is the inspiration behind the support ofthousands of people around the globe which has allowed theFoundation to develop and establish itself in 2007. It is difficult toexpress the extent of our gratitude and humbly pray that theFoundation may continue in its mission as an instrument at theservice of the emancipation of mankind.
The World Foundation Financial Report 2007 includes the followingdocumentation:
1. Balance Sheet as of 31 December 2007;2. Income & Charges Report;3. Income & Charges Report for the Commercial Unit;4. accompanying Notes;5. Cash Flow Statement;6. Auditor’s Report.
All the documents have been drawn up in conformity with the regulatory requirements of the Italianstate.
2007 was the first year in which all the activities and events which traditionally take place inCabella, happened under the auspices of the World Foundation:
Four international pujas celebrated in the presence of H.H. Shri Mataji Nirmala Devi For the first time in Europe, an International Sahaja Yoga Festival A Summer Arts Academy with courses in music, dance, theatre, painting and sculpture The Children’s Summer Camp in Daglio National Seminars and other thematic workshops e.g. on health and wellness
Thanks to these events, and above all to the extended presence of Our Beloved Mother in Cabella,we estimate that approximately 7,000 people passed through the Foundation in 2007. In most casesthey stayed for just a few days to attend a seminar or puja, but more than 300 sahaja yogis opted tospend two weeks or more working as volunteers on Foundation properties. As a result, I believethat there is a growing belief in the potential of the Foundation and a better understanding of ShriMataji’s vision of a world centre in Cabella where the international collective can come together,strengthening bonds and discovering new depths in their meditation.
In its deliberations, the Executive Committee has adopted the objectives listed below as theinspiration behind its decisions:
continue the maintenance and development of the properties donated by Shri Mataji in theact of constitution;
provide permanent infrastructure that can support events and activities that help catalysethe growth and worldwide development of Sahaja Yoga;
develop projects aimed at making the world centre in Cabella useable not just in thesummer, but the whole year round;
last but not least, allow the Foundation to take on the role assigned to it by Shri Mataji,namely to become an instrument at the service of the worldwide development and growthof Sahaja Yoga.
H.H. Shri Mataji Nirmala DeviFounder & Benefactor
Vice President’s Introduction 2
The outcome is that in 2007 the Foundation has:
1. launched a project for the establishment of a boarding school in Cabella for Sahaja Yogachildren from within the Schengen area;
2. continued the renovations of the Centrassi property so that it is fit to house the 30/35children of the planned boarding school;
3. prepared a project for a completely new building to be built on the Albera property (near thehangar) aimed at providing an industrial kitchen and toilet & washing facilities for thesummer-time events, but designed to create a centre which can be used for seminars andmeetings in the winter time as well;
4. signed an agreement with Nirmal Intellectual Property Corporation (NIPC) in which allmanagement functions in relation to Shri Mataji’s intellectual property were transferred tothe Foundation, conferring on it the responsibility for the permanent, long-term preservationof the records of Shri Mataji’s teachings, their protection and their diffusion throughout theworld;
5. constituted a commercial unit within the legal structure of the Foundation responsible for theworldwide distribution and sale of DVDs, CDs and books that use the intellectual propertyof Shri Mataji.
These projects and activities were possible thanks to the generous support of Sahaja Yogisthroughout the world who donated a total of € 575,121 to the World Foundation in 2007.Altogether in 2007 the Foundation received € 589,634, which includes € 4,659 deriving from theCommercial Unit launched in October. This compares with € 88,711 in 2006, of which € 50,000was received as the initial endowment fund.
An important element in interpreting the balance sheet and the income and charges statement is theloan of € 300,000 made to the Foundation in December 2007 by H.H. Shri Mataji Nirmala Devi andHer husband, Sir CP Srivastava. Their intention is to help finance the investment needed for thedevelopment projects in Centrassi and Albera. The loan can be seen as a demonstration of thebenevolent attention which Shri Mataji confers upon these projects and Her desire to see themcompeted at the earliest.
A further loan from Shri Mataji and Her husband of € 300,000 was deposited in the Foundationaccount in January 2008 which, together with the initial € 300,000 loan will be repaid with interestat a rate of € 100,000 per year as of 2009.
With an eye towards the future, we can predict receipts of approximately 1 million Euros for 2008,of which about € 400,000 should derive from the activities of the Commercial Unit.
With the graciousness and blessings of Shri Mataji, I am confident that the sense of unity andcommon purpose which has begun to emerge in 2007 will continue and consolidate in the year tocome such that we can move as a single instrument in the hands of our Divine Mother.
With love and respect,
Aldo GandolfiVice President
A) SUBSCRIBED CAPITAL UNPAID 0 0
B) FIXED ASSETS
I. Intangible Assets 328 493
+ intangible assets 659 659
- accrued depreciation -331 -166
II. Tangible Assets 2.309.387 1.951.148
+ tangible assets 2.313.138 1.951.198
- accrued depreciation -3.751 -50
III. Financial Assets 0 0
TOTAL FIXED ASSETS 2.309.715 1.951.641
C) CURRENT ASSETS
I. Stock 3.984 0
II. Accounts Receivable 5.059 424
* within 12 months 5.059 0
* after 12 months 0 424
III. Investments 198.400 0
IV. Cash and Cash Equivalents 126.970 56.949
TOTAL CURRENT ASSETS 334.413 57.373
D) PREPAYMENTS AND ACCRUED INCOME 6.992 509
TOTAL ASSETS 2.651.120 2.009.523
2007 2006
FINANCIAL STATEMENTS AS AT 31/12/2007
ASSETS
BALANCE SHEET
Financial Statements as at 31/12/2007 3
A) EQUITY 2.293.032 1.996.205
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 46.205 0
IX. Profit or Loss for the Fininacial Year 296.828 46.205
B) PROVISIONS FOR LIABILITIES AND CHARGES 0 0
C) TERMINATION INDEMNITIES FUND 2.750 469
D) ACCOUNTS PAYABLE 355.043 11.981
* within 12 months 55.043 11.981
* after 12 months 300.000 0
E) ACCRUALS AND DEFERRED INCOME 295 868
TOTAL EQUITY AND LIABILTIES 2.651.120 2.009.523
2007 2006
EQUITY AND LIABILITIES
BALANCE SHEET
Financial Statements as at 31/12/2007 4
A) INCOME FROM OPERATING ACTIVITY
1) Revenue from Sales and Services 7.053 0
2) Stock Variations 0 0
3) Orders Variations 0 0
4) Increase in Asset Value due to Improvements 325.000 0
5) Other Operating Income 585.353 88.713
TOTAL INCOME OPERATING ACTIVITY 917.406 88.713
B) CHARGES FROM OPERATING ACTIVITY
6) Raw Materials and Consumables 4.801 0
7) Services 399.664 29.307
8) Use of Third Party Assets 64.676 186
9) Staff Costs 51.694 9.960
a) Wages and salaries 38.193 7.305
b) Social Security Costs 11.220 2.150
c) Termination Indemnity Costs 2.281 505
e) Other Staff Costs 0 0
10) Depreciation 3.866 216
a) Intangible Assets 165 166
b) Tangible Assets 3.701 50
d) Writedowns 0 0
11) Variations Raw Materials and Consumables -3.984 0
12) Risk Fund
13) Other Reserves
14) Other Operating Expenses 90.367 3.110
TOTAL CHARGES OPERATING ACTIVITY 611.084 42.779
DIFFERENCE BETWEEN INCOME AND CHARGES
FROM OPERATING ACTIVIES (A - B) 306.322 45.934
C) FINANCIAL INCOME AND CHARGES
15) Income from Stocks and Shares
16) Other Financial Income 2.531 414
d) Other 2.531 414
17) Interest and Other Financial Charges -2.841 -143
TOTAL (15 + 16 - 17) -310 271
2007 2006
INCOME AND CHARGES STATEMENT
Financial Statements as at 31/12/2007 5
D) ADJUSTMENTS TO VALUE OF FINANCIAL ASSETS
18) Revaluations 0 0
19) Devaluations 0 0
TOTAL VALUE OF ADJUSTMENTS (18 - 19) 0 0
E) EXTRAORDINARY INCOME AND CHARGES
20) Income 0 0
21) Charges -177 0
TOTAL EXTRAORDINARY INCOME AND CHARGES
(20 - 21) -177 0
PROFIT OR LOSS BEFORE TAX
(A - B + C + D + E) 305.835 46.205
22) Income Tax -9.007 0
* current -9.007 0
26) Profir or Loss for the Period 296.828 46.205
I hereby declare that the present balance conforms to legal requirements: On behalf of the Board of Directors
Vice President
Aldo Antonino Gandolfi
INCOME AND CHARGES STATEMENT (cont.)
20062007
Financial Statements as at 31/12/2007 6
A) INCOME FROM OPERATING ACTIVITY
1) Revenue from Sales and Services 7.053
2) Stock Variations 3.984
3) Orders Variations 0
4) Increase in Asset Value due to Improvements 0
5) Other Operating Income 0
TOTAL INCOME OPERATING ACTIVITY 11.037
B) CHARGES FROM OPERATING ACTIVITY
6) Raw Materials and Consumables 4.801
7) Services 8.971
8) Use of Third Party Assets 0
9) Cost of Personnel 0
a) Wages and salaries 0
b) Social Security Costs 0
c) Termination Indemnity Costs 0
e) Other Staff Costs 0
10) Depreciation 0
a) Intangible Assets 0
b) Tangible Assets 0
d) Writedowns 0
11) Variations Raw Materials and Consumables 0
12) Risk Fund 0
13) Other Reserves 0
14) Other Operating Expenses 0
TOTAL CHARGES OPERATING ACTIVITY 13.772
DIFFERENCE BETWEEN INCOME AND CHARGES
FROM OPERATING ACTIVIES (A - B) -2.735
C) FINANCIAL INCOME AND CHARGES
16) Other Financial Income 0
17) Interest and Other Financial Charges 0
TOTAL (16 - 17) 0
COMMERCIAL ACTIVITY
INCOME AND CHARGES STATEMENT
2007
Financial Statements as at 31/12/2007 7
D) ADJUSTMENTS TO VALUE OF FINANCIAL ASSETS
18) Revaluations 0
19) Devaluations 0
TOTAL VALUE OF ADJUSTMENTS (18 - 19) 0
E) EXTRAORDINARY INCOME AND CHARGES
20) Income 0
21) Charges 0 0
TOTAL EXTRAORDINARY INCOME AND CHARGES (20 - 21) 0
PROFIT OR LOSS BEFORE TAX (A - B + C + D + E) -2.735
22) Income Tax 0
* current -232
26) Profir or Loss for the Period -2.967
I hereby declare that the present balance conforms to legal requirements: On behalf of the Board of Directors
Vice President
Aldo Antonino Gandolfi
2007
INCOME AND CHARGES STATEMENT - Commercial Activity (cont.)
Financial Statements as at 31/12/2007 8
CASH SITUATION BEGINING OF PERIOD 56.948
Bank balance 56.806
Petty cash 142
INCOME FROM OPERATING ACTIVITES 589.634
Sales 4.659
Donations 575.121
Other 9.854
CHARGES FROM OPERATING ACTIVITIES -621.058
Raw materials and consumables 2.521
Services 69.719
Use of third party assets 64.676
Staff costs 41.635
a) Salaries and wages 33.271
b) Social security costs 8.364
c) Termination indemnity costs 0
e) Other staff costs 0
Investments 346.031
a) Land and buildings 325.000
b) Vehicles 11.091
d) Other fixed assets 9.940
Other cost 96.476
CASH FLOWS FROM FINANCING ACTIVITIES 101.446
Financial income 4.852
Financial charges 2.961
Share and bonds 200.445
Loans 300.000
126.970
CASH SITUATION END OF PERIOD 126.970
Bank balance 122.242
Petty cash 4.728
I hereby declare that the present balance conforms to legal requirements: On behalf of the Board of Directors
Vice President
Aldo Antonino Gandolfi
CASH FLOW STATEMENT 2007
Financial Statements as at 31/12/2007 9
Accompanying Notes to the Financial Statements as at 31/12/2007 10
ACOMAPNYING NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31/12/2007
1. STRUCTURE AND CONTENT
The Foundation’s Financial Statements have been drawn up based on criteria established by theAccountants Commission for non-profit organizations.
The Financial Statements for the year ended December 31, 2007 comprise the Balance Sheet, theIncome and Charges Report, the Income and Charges Report for the Commercial Unit, the Notes,the Cash Flow Statement and Auditors’ Report.
Where possible, the Financial Statements for 2007 have been set along side those of 2006 so as toassist comparison between the figures and to highlight variations.
The Foundation is a non-profit organization with the following object: “perpetuating, documentingand spreading all over the world, the knowledge of the teachings of Mrs. Shrivastava ChandrikaPrasad Nirmala, and of supporting, all over the world, the practice of meditation founded by Her,known as Sahaja Yoga”.
During the 2007 financial year the Foundation launched a commercial unit with the purpose ofselling DVDs and books containing speeches and the teachings of Mrs Nirmala Srivastava. This isan important element in the interpretation of the financial data.
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 unchangedfrom 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, andsystematically 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 basedon 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 andCharges Report.
Stock
Unsold stock is recorded at the average selling price for the financial year.
Accompanying Notes to the Financial Statements as at 31/12/2007 11
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 downturnin 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 torespect the principles of accrual based accounting. The division of the amounts has been calculatedbased 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 withItalian 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 applicableexemptions.
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 whencash or cash equivalents are received or paid. They are recorded in the accounting records andreported 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 unvariedwith 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.
Accompanying Notes to the Financial Statements as at 31/12/2007 12
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 thefinancial year and the closing balance.
Intangible Assets
These consist of costs borne for the acquisition of software.
INTANGIBLE FIXED ASSTES software
Historical value 660
Past depreciation fund 166
Value start of financial year 494
Sales during financial year 0
Reductions depreciation fund 0
Purchases during financial year 0
Depreciation during financial year 166
Net value 328
Total depreciation fund 332
Historical cost end of financial year 660
Tangible Assets
In the tables that follow the most significant transactions relating to tangible fixed assets areanalysed.
Depreciation has not bee applied to the buildings and the land which were donated to theFoundation 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. Theinvestments made on improving the properties over the financial year have been capitalised.
Furniture, printers and a Fiat Ducato van were also purchased.
Depreciation of tangible fixed assets is calculated from the moment they start being used based ontheir hypothetical useful lifetime and residual possibility of use; in the first year of use the rate ofdepreciation is reduced by 50%. The rates of depreciation have been calculated with reference toaccepted fiscal norms.
DescriptionRate of
Depreciation
Vehicles 20%
Furniture 12%
Electronic office equipment and telephones 20%
Accompanying Notes to the Financial Statements as at 31/12/2007 13
Land Buildings Total
Historical value 263.403 1.686.597 1.950.000
Value start of financial year 263.403 1.686.597 1.950.000
Sales during financial year 0 0 0
Purchases during financial year 0 325.000 325.000
Net value 263.403 2.011.597 2.275.000
Total depreciation fund 0 0 0
Historical cost end of financial year 263.403 2.011.597 2.275.000
Other Property Furniture Office Equipment Vehicles Totale
Historical value 0 1.198 0 1.198
Past depreciation fund 0 50 0 50
Value start of financial year 0 1.148 0 1.148
Sales during financial year 0 0 0 0
Reductions depreciation fund 0 0 0 0
Purchases during financial year 9.292 648 27.000 36.940
Depreciation during financial year 697 304 2.700 3.701
Net value 8.595 1.492 24.300 34.3870
Total depreciation fund 697 354 2.700 3.751
Historical cost end of financial year 9.292 1.846 27.000 38.138
2.2 Current Assets
Stock
This refers to goods unsold as of the 31st December.
Accounts Receivable
As of 31st December 2007 accounts receivable from clients totalled € 2,394= and derive from thecommercial activity that was launched in the financial year.
Other accounts receivable amounted to € 2,665=, consisting of credit with the inland revenue forwithholding tax and advances to suppliers.
Accounts receivable after the end of the financial year refer to receivable securities.
Accounts receivable after more than five financial years are not recorded.
Accompanying Notes to the Financial Statements as at 31/12/2007 14
Investments
These consist of shares issued by the Banca Popolare di Milano for a value of € 198,400=.
Cash and Cash Equivalents
These consist of € 122,242= deposited in bank accounts:
Banca Regionale Europea (acc. number 2148) € 2,536= Banca Regionale Europea (acc. number 2187) € 2,677= Banca Regionale Europea (acc. number 2183) € 9,543= Banca Popolare di Milano € 107,483=
and € 4,728= deposited as petty cash.
This is an increase of around 68 thousand Euros compared to last financial year.
2.3 Prepayments and Accrued Income
Prepayments for insurance and instalments on the loan received for the purchase of the Fiat Ducatovan 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 € 46,205= brought forward from the 2006 financial year
profit of € 296,828= for the 2007 financial year
DescriptionValue as at
31.12.2006Variations
Value as at
31.12.2007
Endowment fund 1.950.000 0 1.950.000
Other reserves 0 -1 -1
Profits brought forward 0 46.205 46.205
Profits for financial year 46.205 250.623 296.828
Totals 1.996.205 296.827 2.293.032
Accompanying Notes to the Financial Statements as at 31/12/2007 15
3.2 Termination Indemnities Fund
This is made up of the real debt matured towards employees, in conformity with Italian law andnational labour contracts currently in force.
Staff of the Foundation as at 31.12.2007 consists of three employees.
Year 2007 2006
Initial value 469 -
Allocation for the year 2.281 469
Payments - -
Final value 2.750 469
3.3 Accounts Payable
Reported below are the transactions for the financial year relating to this category.
DescriptionValue start financial
year
Increase (+) Decrease
(-)
Value financial year
end
Payable within 12 months
to suppliers 7.725 26.977 34.702
for taxes 1.602 6.863 8.465
to social security institutions 874 1.308 2.182
various 1.779 8.371 9.694
Payable after 12 months
for financing 0 300.000 300.000
Total 11.980 343.519 355.043
Debts towards suppliers include € 8,019= 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 2007 and income tax for the period, net of payments already made, of € 8,009=.
Social security debts include the amount due to the relevant institutions for the last month of the2007 financial year.
Debts various include the amounts due to employees in terms of unpaid wages and other benefits.
Debts payable more than 12 months after the end of the financial year consist of the loan obtainedfrom Mrs. Nirmala Srivastava to be repaid with interest as of 2009, at the rate of € 50,000= peryear.
3.4 Accruals and Deferred Income
These relate to accrued operating costs.
Accompanying Notes to the Financial Statements as at 31/12/2007 16
4. NOTES ON ITEMS OF THE INCOME AND CHARGES STATEMENT
The income and charges statement includes all the activities of the Foundation, including theCommercial Unit. A sectional income and charges statement covering what might be termed thecommercial activity of the Foundation is included in the Financial Report, as required by Italianlaw.
4.1 Income from Operating Activity
Revenue from Sales and Services: this amounts to € 7,053=.
Other Operation Income: this refers to € 575,121= in donations received (i) from participants atevents held in Cabella during the financial year (ii) as a result of international fundraising efforts.
4.2 Charges from Operating Activity
Raw Materials and Consumables: a total of € 4.801=.
Services: the most significant items in this category are the investments made to improve theproperties, (€ 325,000=), consultancy fees and service charges (telephone, gas, electricity etc.).Also included in this category are the royalties payable on sales. This amount has increased byabout 369 thousand euros compared to last financial year.
Use of Third Party Assets: this refers to € 58.236= for the hire of additional infrastructure on theoccasion of events organised in Cabella Ligure plus € 6,440= for the rent of additional space andfacilities (gym, meeting rooms, kitchens, toilet facilities etc.) from the local government.
Other Operating Expenses: the main items in this category are rubbish disposal and catering duringevents in Cabella. Also included are stationary, stamps and other taxes and staff expenses.
4.3 Financial Income and Charges
This relates to bank charges and bank interest (positive and negative) and interest on the loanobtained to purchase the Fiat Ducato van (€ 757=)
4.3 Extraordinary Income and Charges
Charges: this refers to contingent liabilities.
4.4 Profit (Loss) for the Financial Year
Income Tax includes IRES (€ 6,673=) and IRAP (€ 2,334=) for the financial year, applied only tothe commercial activity and the properties owned.
Profit (or Loss) for the Period amounts to € 296,828=.
The present financial report, made up of the Balance Sheet, Income and Charges Statement andNotes to the Financial Statements, are a true and accurate reflection of the financial position andfinancial performance of the Foundation, including profit and loss for the period, and are the resultof the ledger entries for the financial year 2007.
Aldo Antonino GandolfiVice President
Board of Auditors Report on the 2007 Financial Report 17
BOARD OF AUDITORS REPORT
FINANCIAL REPORT FOR THE YEAR ENDING 31ST DECEMBER 2007
OF THE SHRI MATAJI NIRMALA DEVI SAHAJA YOGA WORLD FOUNDATION
The Board of Auditors received the 2007 Financial Report from the Board of Directors comprising:
Balance Sheet, Income and Charges Statements, Accompanying Note, Cash Flow Statement and, Cover letter,
and was afforded 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.
Towards the end of the financial year the ‘Guardia della Finanza’ (Finance Ministry Police,
equivalent to the tax man) carried out an inspection of the Foundation accounts and bookkeeping.
The inspection concluded successfully early in 2008 and found that the Foundation had not
contravened any law.
In the second half of 2007 the Foundation launched a commercial unit for which separate accounts
are kept, as required by Italian law. A separate income and charges statement related to the
commercial activity is included in the financial statements.
The Foundation’s 2007 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 € 296,828=,
net of depreciation and allocations of € 3,866=. There was an increase in asset value of € 325,000=
due to investments; the value of intangible assets fell overall to € 328= but the value of tangible
assets rose to € 2,293,032=, compared to € 1,996,205= on the 31st December 2006.
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
Board of Auditors Report on the 2007 Financial Report 18
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.
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 2007 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 2007.
The Board of Auditors:
Maria Gallo
Alessandro Sabolo
Cristina Ciartano
10th April 2008