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Maharishi Foundation Australia Limited Maharishi Foundation Australia Limited A.B.N. 21 615 281 546 ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2019 MAHARISHI FOUNDATION AUSTRALIA LIMITED A.B.N. 21 615 281 546 CONTENTS PAGE NO. Directors’ Report 2 Lead Auditor’s Independence Declaration 8 Independent Auditor’s Report 9 Directors’ Declaration 11 Statement of Profit or Loss and Other Comprehensive Income 12 Statement of Financial Position 13 Statement of Changes in Equity 14 Statement of Cash Flows 15 Notes to the Financial Statements 16 Page… 1 MAHARISHI FOUNDATION AUSTRALIA LIMITED A.B.N. 21 615 281 546 DIRECTORS’ REPORT The directors of Maharishi Foundation Australia Ltd (MFA) submit their report and the financial statements for the year ended 31 December 2019, together with the auditor’s report thereon. CORPORATE INFORMATION Company Details Maharishi Foundation Australia Limited is a public company limited by guarantee. The company was incorporated on 11th October 2016 and has its registered office at 190 Greenhill Road, Parkside SA 5061. Auditors LDAssurance Chartered Accountants Level 6 250 Collins Street Melbourne Vic 3000 Bankers Westpac Banking Corporation Sydney Branch Office 341 George Street Sydney NSW 2000 DIRECTORS The names and details of Directors of the Company in office during the period are: James Rogers Badgett Jr, Board Chair: Director for three years; appointed to the Board and elected to MBA (Crummer Graduate Chair of the Board on 14th May 2017; International Trustee (Raja), Global School of Business, Rollins Country of World Peace; Trustee, Maharishi University of Management, USA; College), PhD in Supreme President, Raj Resorts Inc, USA. Political Science (Maharishi Raja Rogers Badgett attended 4 of the 4 director’s meetings held during the year. University of World Peace, Switzerland) Dr. Timothy Carr, MBBS Chief Executive Officer: Director for four years; appointed Board Chairman in (Syd) October 2016, retired as Chair and appointed as CEO on 14th May 2017; Invincible Australia Director of Health; President, Maharishi AyurVeda Association of Australia. Director of Maharishi School Ltd. Dr. Carr attended all of the 4 director’s meetings held in the year. Dr. Lawrence Clarke, B Ag Director for four years; appointed to the Board in October 2016; Director of Ec (UNE), Dip Health Maharishi School Ltd; Co-Director of Maharishi Invincibility Centre, Melbourne; (MAV), Dip Training & Director of Maharishi Ayur-Veda Products Pty Ltd; Director of Advanced Assessment, DDA, DSCI Programs Maharishi Vedic College. Dr. Clarke attended all of the 4 director’s meetings held during the year. Page… 2 MAHARISHI FOUNDATION AUSTRALIA LIMITED A.B.N. 21 615 281 546 DIRECTORS’ REPORT (Continued) Mr. Peter Fenwick, BA Director for three years, appointed to the Board on 14th May 2017; Invincible Hons, Dip Ed (Adel), Australia Regional Director for SA & NT; Convenor, Lake George Management Certificate 4 in Real Estate Committee; Australian Ambassador for the Brahmananda Saraswati Trust; Practice Director of Maharishi School Ltd; Managing Director, Fenwick Real Estate Pty Ltd. Mr Fenwick attended 4 of the 4 directors meetings held in the year. Dr. Bevan Morris, BA, MA Director for three years; appointed to the Board on 14th May 2017; Prime (Cambridge), MSCI, DSCI Minister, Global Country of World Peace; President Emeritus of Maharishi University of Management USA; International President of Maharishi University of Management; One of the most eminent Australian and international scholars and administrators in the field of Maharishi’s Vedic Science, and Consciousness- Based Education. Dr. Morris attended 3 of the 4 director’s meetings held during the year. PRINCIPAL ACTIVITIES The principal activities of the company during the course of the financial year remained unchanged. The activities consisted of promoting, supporting the teaching and propagation of Maharishi’s Vedic Science and Technology of Consciousness which includes the Transcendental Meditation program® and TM-Sidhi™ programs. RESULTS The net amount of profit / (loss) of the company for the financial year was $1,360,555. In 2018 Profit was $314,400 DIVIDENDS Under clause 4.6 of the constitution, the company is not empowered to pay dividends. REVIEW OF OPERATIONS Teaching activity by the Certified teachers of the Transcendental Meditation program and the other programs of Maharishi’s Vedic Science and Technologies of Consciousness (teachers) throughout Australia has been sustained at a high level throughout 2019 and this has continued into the first quarter of 2020. The sale of the company’s property in the Blue Mountains resulted in a significant capital gain and this combined with the high level of teaching during the year has resulted in a substantial improvement in the financial result for the company in 2019 Consequently cash reserves and the balance sheet of the company have significantly improved. The Global Marketing Group’s marketing of the companies programs has continued to be successful and this has improved the finances of the Teachers and Centres . The Board acknowledges and congratulates the teachers throughout Australia for their success in delivering the educational programs, which enrich the lives of so many people and the community as a whole. Subsequent Events: In accordance with best contemporary practice for educational institutions, Maharishi Foundation Australia Ltd has committed to join the National Redress Scheme. This is a government initiative in response to recommendations made by the Royal Commission into Institutional Responses to Child Sexual Abuse and provides acknowledgement and support for survivors of child sexual abuse. Page… 3 MAHARISHI FOUNDATION AUSTRALIA LIMITED A.B.N. 21 615 281 546 DIRECTORS’ REPORT (Continued) Maharishi School Ltd will also participate in the scheme. Because activities related to the Transcendental Meditation technique along with those related to the Maharishi School were both conducted under the umbrella of Maharishi’s Global Administration through Natural Law Ltd (MGANL Ltd - now known as Maharishi School Ltd) prior to 1 January 2017, MFA agreed to sign a deed of indemnity with Maharishi School Ltd to indemnify it against all liabilities for any potential allegation for past misconduct that may have occurred prior to 1 January 2017. Since the end of the financial year, the outbreak of COVID-19 has occurred, and from the end of March 2020 all MFA teaching activity ceased. This is expected to have a significant impact on the business operations and cash flows of the teachers and MFA in the 2020 financial year. Due to the uncertainty as to how long the shutdown of teaching will last, the extent of this impact cannot yet be completely determined. However, teachers are able to apply for the Job Keeper payments and with its strong balance sheet and cash position MFA is well positioned to negotiate the shutdown period. Teaching activities The Company continued to support teaching activities during the year, together with the development and expansion of new educational programs and initiatives, and the management of existing properties in accordance with its constitution. It has continued to promote the core programs of Maharishi’s Vedic Science and Technology of Consciousness and to provide financial and administrative services to the teachers who deliver the courses, including: • The Transcendental Meditation® program (Developing Self-Management Skills for Maximum Personal Effectiveness) (MVAH 001) • Residence Courses and World Peace Assemblies (MVAH 010, MVAH151) • The Science of Creative Intelligence Course (MVAH 100) • Advanced Techniques of Transcendental Meditation (MVAH 003) • TM-Sidhi™ program (Citizens Invincibility Courses) (MVAH 150) • Maharishi Ayur-Veda® and Maharishi Vedic Approach to Health™ consultations • Maharishi Jyotish™ Courses (MVAH 301) and consultations (MVAH 300) • Maharishi Yagya™ programs • Maharishi Vedic Vibration Technology™ (MVAH 400) • Maharishi Sthapatya Veda™, Maharishi Vastu Architecture™ and Fortune Creating Homes™ • Maharishi Light Technology with Gems™ • Maharishi Aromatherapy™ and VedAroma™ • Maharishi Vedic University Short Courses (MVAH 340,MVAH 350, MVAH 320, etc) • Maharishi Vedic College Courses, including the Diploma of Health (Maharishi Ayur-Veda Health Education Consulting) and the course electives (MVAH 500, MVAH 501, etc) • Other Maharishi Invincibility Centre courses, programs and activities In terms of revenue generation, the Transcendental Meditation program, the TM-Sidhi program, Advanced Techniques of Transcendental Meditation, Total Knowledge Courses, and World Peace Assemblies, produced the most significant revenue. In addition, $10,204 of donations was received. Total revenue of $3,337,945 was recorded. Page… 4 MAHARISHI FOUNDATION AUSTRALIA LIMITED A.B.N. 21 615 281 546 DIRECTORS’ REPORT (Continued) Delivery of Services The Certified Teachers of the Transcendental Meditation program and the other programs of Maharishi’s Vedic Science and Technologies of Consciousness are trained and certified by Maharishi Vedic University Courses and Consultations (MVU-CC) and are authorised by MVU-CC to deliver its educational programs. MFA provides promotion and financial administration services for Certified Teachers of the Transcendental Meditation program and the other programs of Maharishi’s Vedic Science and Technologies of Consciousness and the Maharishi Vedic Centres and Maharishi Invincibility Centres. Governor Council Meetings Throughout the year, Governor Council (and sub committee) meetings of
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