REGISTERED CHARITY NUMBER: 1015408 Report of the Trustees and Audited Financial Statements for the Year Ended 31st December 2022 for Edhi International Foundation (UK) S Syedain & Co Chartered Accountants & Statulory Auditors First Floor 87 Kenton Road Harrow Middlesex HA3 OAH Edhi International Foundation (UK) Contents of the Financial Statements for the Year Ended 31$1 December 2022 Page Report of the Trustees I to 10 Report of the Independent Auditors Statement of Financial Activities 15 Statement of Financial Position 16 to 17 Statement of Cash Flows Notes to the Statement of Cash Flows Notes to the FinanciAI Statements 20 to 31 Detailed Statemenl of Financial Activities 32 to 33 Edhi International Foundation (UK} Report of the Tru51ee5 for the Year Ended 31st December 2022 The trustees present their report with the financial slatemen15 of the charity for ihe year ended 31st December ?02? The trustees have adopted the provisions of Accounting and Reporting by Charittes.. Statement of Recommended Practice applicable to charilies preparing, their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} (effeLlive l January 2019). OBJECTIVES AND ACTIVITIES Objective5 and aims Tlie overall aim ot. the charity is to help people in nccd ￿'IthoUt any prejudice of religion, caste, creed or political boundaries and to carry out the advancement of education, Ihe advancement of rcligJion, Ihl. rL'liel- ol- poverty and the promotion and the preservation of health. In furtherance of its objectives the charity may undertake, execute. managie or a55i51 any charitable trust5 w'hich Inay lawfully be undertaken. executed. managjed or a55i%lLd by th¢ cliarity. As a result the charity has assisted in furtherin&T the objectives uf ils Lonne¢l¢d Edhi charities in Pakistan where li has a few common trustees. The charities in Pakistan were sel up by the late Abdul Satlar Edhi lo provide food, sheltcr. medical Care, to procui'e ambulance serviccs on a volunlary basis lo the needy. which lullils the charity's objectives as well. The charitable activities have been mainly iii Pakislan but the coi)necled charities in Pakistan havc as%isted li) humanilarian work in i)Ihcr parts ot. the world in the past as well. Furthcnnore, in furtherance of ils objects the charity is pennilted to invest donations rcceived that are not immedialLly required For charitable pui'poses as investments, seourilies or property as required. The Edhi charities in Pakistan are nan)ely Abdul £atlar Edhi Foundation Pakistan. Bilquis Edhi Foundation Paki%lan, and Edhi Wellare Ceiilre Pakistan. Donors Ironi UK are aware that the donalioiiq they are making will be used by Ihe main charities in Pakistan lo help achieve their objectives. Sorne of ihe donations collected by Edhi Inlemalional Foundation UK are disseminated to the related charities in Pakistan. mainly to Abdul Sattar Edhi Foundation in Pakistan over ihe last few year5, where the funds had been used for charitable aclivities in line with Edhi Pakistan charities, conslitutions and its own constitution. However not all the funds that had been collected during Ihe year were used for immediate charitable activities and were instead deposited in UK bank accounts, as an emergency fund, to be u%ed for future emergency or disasler relief where vast sums are immediately required in the relief process. The sums have been aLLumulaling to date and some of the donalions have been used during (he most recent internalional disa5ter5 such as Covid pandemic. Page I Edhi International Foundation (UK} Report of the Trustees for the Year Ended 31st December 2022 OB.IECTIVES AND ACTIVITIES Significant activiti¢% The principal activity ot Edhi Internalional Foundation UK during the year under review contiiiu¢s to be to obtain donations from UK donors either to be used lo assist charitable activilic% in tIIL UK or to purchase equipment. ambulaiiees and so torih to assist the main Edhi charities in Pakistan to carry oul theii. various charitable activities. These include to rclicve poverty. sutYerin&. deprii'ation and distress throughoul the world and io promotc the preservation of health. The charity also collects donations from UK donors to assist Ihein in fulfilling, their religJious obli&)aiion of slaughtcrings animals during religious events. This money is sent 10 Pakislan and the animals are slaug?htered there. During, the year. the charity raised almost all of its money from public donations, which was encoiiragied by way of adverlisemenl, and by dispatching, lc'allels and brochures by post to currL'nt and prospective donors. The advei'lising p()licy. prog7ramme for luture activity, thc invL51ment policy and disbur5emenl ot. lui)ds are conlroll¢d and decided by the Truslecs. They also maintain an internal control for collection of tunds and safeg?uard against any risk involved in charitable aclivilies. During the year Mrs Bilquis Edhi passed away. She was the wife of Abdul Sallar Edhi, Ihe founder of the Edhi Found&lion. She was nicknamed 'the mother ot Pakistan,. She was heavily involved with the charity and onc ot her rolcs was to look aller women, especially Ih05e who were preblnanl and she was involved in tlie adoption proccss of babies and children. Her contribution to the charity will also bL remembered and appreciated all around Ilic world. Public benefit In shaping the objLCtives f()r Ihe year and planning the charity's a¢livitiLS, IhL Iruslees have cc)i)sidLred the Charity Commission's gTuidance on publiL bLnLlIl. including, the giuidaiice 'public benetil.. running7 a charity (PB2)'. It is the Iruslees, opii)ion Ihal the operation of the charity iii its present forni is for the publiL benefit under the principles set out in the Charity Commission guidance. Page 2 Edhi International Foundation (UK) Report of the Trustees fibr the Year Ended 31st December 2022 ACHIEVEMENT AND PERFORMANCE Charitable Donations During7 Ihe year und¢'r review Edhi International Foundation UK speni £1.701,194 (2021'.£657,334) for charitable activities. This represented £379,652 (2021.. £429.473) in relation lo 2022 Qurbani (sacrifice ot ai)imals for relig?ious purposes) on belialf of UK donors and ihe remaining balance was used to purchase Inedical equipment. ainbulances and other equipment lo assist proN'iding charitable actiN'ities to Ihc n¢edy, mainly lo the people in Pak'istan duriiig the year. REVIEW OF DEVELOPMEIYTS, ACTIVITIES AND ACHIEVEMENT During the year under review. the charity had assisted thc Edhi connected charities in Pakislan in continuing the objeetiiies of helping7 the poor and needy primarily throughout Pakistan. The charity providL'S. as part of its ¢harilabl¢ services, Qurbani service wliich is an aniina5 sacrifice on behall- ol- Muslims as part of their religiious obligJations. The monies collected iii th¢ UK are used to purchase the animals in Pakistan in ordLr lo perform the relig?ious ritual on behalf ol. the UK donors. During the year the charity had purchased and slaug,htered ?,3?8 &Yoats and 440 cows on behalf. of UK doiiors. As part of the relibTiOUS rilual part ol. Ihe meal is distribut¢.d lo ihe poor and as a result the meal from the animals had been uscd by 18 F.dhi charilablL liomes Ihroug?houl Pakislan, and also dislribuled lo many palicnts of g7OVLrninental h()spilals, prisons and ()ther needy PLople in Pakistan. The skinlleaiher of sacrificed animals was sold, and monies collected were ulilised for further Edhi charitable aclivilies. The Charity also assisls yearly in the purchase of medical equipmenl. such as oxygyen cylinders and anaLsthesia macliine, and ambulance stretchers that have been used by the F.dhi charities in Pakistan. There is also a hospital thal has been set up in Pakistan so inany of the medical equipments have b¢en used lor the hospital. This hospital is Inosily used to enablL PO(Ir and deprivLd people to acce55 medical a5S151ance th'herL they are unable to alford ihL medical syslem in Pakistan. Duriiig the year the main branch based on Romford Road also sold second hai)d clothes and other item5 that were donated to them whLre IhLy are charL7ed at a minimal amount. During, Rainadan the charity distributed food boxes lo Ihe local Muslim cominunily thal were tasting. This was accepled favourably by the community and a5 a result Ihe charity are considering continuing ￿'11h this food distribution on a yearly basis durinb, Ramadan. Page 3 Edhi International Foundation (UK) Report of the Tru51ees for the Year Ended 31st December 2022 FINANCIAL REVIEW Financial position and Resul1$ During the year lolal donations received amounted to £7.671,980 (20?1:£6,772,807) which increased by 13 /0 Irom the previous year.This was mainly due to higher general donations received as a result of donations for the Pakistan flood relief. It is difficult to predict the level of donations that will be received each year even though Muslims are the main donors for the charity and charitable donations is always high amongst Mu%lims due to religious requirements. However due to the level of compLlition trom other similar charities that are also targJeling the same donors and ihe uncertainly Ot. eeonomic enviri)nment. donors are bling cautious in the level ot donations that arc bLingy made in addition lo th¢ hi&,h level of co%lS Ot liN'ing reducingi the level ot. disposal income available lo be donaled to the charitj.. In addition, last year the charity realised that in ()rd¢r to increase its donations il would need to increase its ¢xpenditure on ¢idvertisin¥ and hav¢ seen the effect on the level of donations received as compared io previous years. Page 4 Edbi International Foundation (UK) Report of th¢ Trustees for the Year Ended 31st Deeember 2022 FINANCIAL REVIEW Reserves policy Edhi Inten)alional Foundalion UK'S operalional costs {excluding charitable donations and exchangJe gains/losses) in the current }'ear were approximately 3% (?021'.6%) of its total incomc and donations. As part of the risk managJemenl Strategy. the Iruslees need to havL' sufficieiit unrestricted re5erv¢s lo ensure slabilily in ihe event of reduced income or ali cmcrgFL'iiey response. The Irustees intend to maintain enough free reserves in unrestrictcd funds al a level that equates to approxirnately one year of unrestricted charitable core expenditure. The Charity holds unrestricted funds as reserve. The purpose of the Reserve Fund for Edhi International Foundation UK 15 10 help ensure the lonby_term ability of the organisalion to meet ils mi55ion. The Edhi Jnternational Foundatioii UK will maintain the reserve to achieve the t"ollowing objectives: a) To managye cash flow and maintain financial flexibility b) To enable ihe orgTanisation to Sustain opcralions Ihrough delays in payments of commilled funding c} To enable the orbyanization acl swiftly in case of any disaster or emerbjency worldwide for Humanitarian Relief. d) To fund the near future projects. The Reserve Fund is not intended lo replace a permanent loss of funds or eliminale an onLToing budgiel gFap. The Reserve Fund is defined a5 funds set aside by aclioii ol. the Trustee5. The Funds have been reserved in the lollowiiig7 iateg?oi'ies as noled below. Due to the Covid pand¢mic Ihcre ha5 been a delay in starting these projLLts as resources have been Spent in assistinbl those requiring additional assistance as a result of Covid pandemic. A. Operations Reserve Funds for Pakistan: The amounts reserved are enough to mainlain ong()inbF operations and programs for next two years. The Reserve serves a dynainic role and will be reviewed and adjusted in response lo internal and external changes. The Reserve Fund is £12 Million: representing 2 years (or 24 Months) of operating expenses on average. The calculation of average yearly operating expenses includes all recurring, predictable expenses and other non-cash expenses are not included in th¢ cal¢ulation. B. Operations Reserve Funds for UK: The amount reserved a5 enough to maintain ongoing operations and programs for next three years. The Reserve will be reviewed and adjusted in response to internal and external changes. Page 5 Edhi International Foundation (UK) Report of the Trustees for the Year Ended 315t Deeember 2022 FINANCIAL REVIEW The Reserve Fund is £1.8 Million, representing years of operating expenses on average. The calculalion of average yearly operatingJ expenses includes all recurring, predictable expenses and other non-cash expenses are not included in the calculation C. Disaster & Emergencies Reserve Funds: An amount of £14 Million has been reserved as Disaslers and Emergency Reserves Fund. This ainount is reserv¢d to be used for help and opcraliong in any case of l)isaster and Emergency worldwide lor Humanitarian Relief in accordance with the mission of F.dhi International Foundation UK. These funds will always be allocaled under the due diligTence policy. D. Project Designated Funds: The Edhi International Foundalion UK has desigTnated a certain amount for its future operational projLLls. The aniounl is enough to tund the charity projects and shall be used within nexl two lo tive years. The funds have been desigynaled as lollows.. I. VSD Op¢ralion Project Pakistan.. Thousands of children die in Pakislan due to "Ventricular Septal Defect (VSD)" The poor cannot afford the cost of life saving operations and children lose liv¢s. The Edhi International Foundalion UK aims to tund 2000 operation5 of such childreii. through its affiliated orgjanisations in Pakislan, in next 3 years. An amounl of £2 million has bLen desigTnated for this project. 2. Air Ambulance Fund.. The F.dhi liiternational Foundation UK'S Pakistan affiliated organisation5 not only have a largest road ambulance service in Pakistan, but it also has air ambulance service a5 well. The Edhi International foundation UK aims to help Pakislan atfiliated organisation5 to updale the Air Ambulance Fleet in next 2-5 year5 which includcs overhauling of current aeroplanes and buying more planes with advance air an)bulan¢L technologies. An amount of £2 Million has been designated for tliis fund. 3. Open Kitchen {Edhi Free LangJer) Project UK The Edhi International Foundation UK started a free open kitchen in London since last year where the charity distributed food boxes to the local community that were fasting during Ramadan. The charily aims to extends this to other locations within London in the near future run at different point5 in order lo provide free food to the needy. We have estimated that the approximate costs of running this project would be £500K per >'¢ar. We shall reserve 3 years and have reserved £1.5 Million. Page 6 Edhi International Foundation (UK) Report of the Trustees for the Year Ended 31st Deeember 2022 FINANCIAL REVIEW 4. Edhi Legal Project UK The Edhi International Foundation UK has started a Legal funding project in partnership with Julia and Rana Solicitors in order to help with iminigyralion related fees for the underprivileged who are ineligTible for governmenl funding and aid. This has provL.d to be successful and the aim is lo continue thi5 pri)ject. During th¢ year the funding, from Edhi assisted 34 cases. FUTURE PLANS Th¢r¢ are increasing demands for humanitarian operations in Pakistan and worldwide. The trustecs are comiT)itlcd to Lonlinuc raising money and lo increase fuiid% collecled in the UK by providing inlorination about the wide rangie of Abdul Sallar Edhi fouiidation's involvement in Pakistan, to )eneral public and comrnunities iii IIiL UK. The trustees are c()n5ideringJ olher ways they can provide assistance to the poor and needy in the UK as they have realised that ihere are many people in Ihe UK Ihat would benefit from their assislance. Their aim would be to enhance the name ot. the charity further in the UK. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is ioiilrolled by its governing document. a deed of trust and constitutes an unincorporated charity. Charity constitution Edhi Internationa5 Foundation UK is bioverned by its conslitulion, which wa5 set up on 17 November 1992. and a supplemenlary deed dated October 2010. The trustees are in Ihe process of updalinbi their constitution and are hoping? that Ihis would be tinalised soon. Appoinlment of Trustees The trustees are r¢sponsiblc for tlIL administration and investment policy of the charity. Trustees are appointed and removed by the Board of Truste¢%. Induetion trainingj 15 gTiven lo Ihe Irustees on appointrnenl and the guidelines provided by the Charity Commission as per The Essenlial Trustee publication are followed. New trustees would also receive training Irom an existing trust¢¢ about the charity and their responsibililies as a trustee and would receive a copy of the Charity Commission's guide for new trustees and the constitution of the Charily. On-going training is provided as required. Page 7 Edhi International Foundation (UK) Report of the Trustee$ for the Year Ended 31st December 2022 STRIICTURE, GOVERNANCE AND MANAGEMENT Organisational structure In order for effective day lo day running of th¢ charity the board of irustees set up an executive cornmitlee which consists of the following trustees.. Mrs Bilquis Edhi (deceased 15 April 2022) Mr Faisal Edhi Ms Kubra Edhi Mrs Feroza Aka Ms Malili(i Khaii - Mr Yousul'Abraham -Mr Saad Edhi {appointed l December 2023 and resig7ned 28 June 2024) They have been gjiven the powers of execution by the board ot trustees and can enter into legal obligjations, which will bind the charity. The power of appointing7 a new trustee ol. the charity is vested with the Board of Trustees. Risk management The Trustees havc a duly to identify and review risks, which the charily is exposed to and lo ensure tliat appropriate intenial controls are in place to provide reasonable safegiuard ag>ainst fraud and human errors. The principal risks and uncertainties faced by the charity are as follows.. i) Increase in competition where a girowingi number of charities are seeking funds from the same donors. ii) Safeg?uarding assets agiainst unauthorised use. iii) Compliance requirements with relevant laws and regulalions. iv) Repulalional risk where any bad publicity worldwide could have a detrimental impact on the level ot t"uture donalions. The trustees have taken the following measures lo mitigate some of these risks.. The trustees liaise with ihe office manager, to supervise staff and daily procedures in Ihe London office and to ensure that the charily is being run efficiently with effeLlive safeguards, policies and controls in place to mitigate ihese risks. The trustees are in eonslant contact with the London office Manager and supervise the progress and activities of the charity. The trustee5 make periodie visits to the London orriee lo monilor all aclivilies. The trustees have engTag7ed professional advisors to advise in complying with related laws and regulations. Page 8 Edhi International Foundation (UK) Report of tbe Trustees for the Year Ended 315t December 2022 REFERENCE AND ADMIIYISTRATIVE DETAILS Registered Charit), number 1015408 Principal address 803 Romford Road London E12 SAN Trustees Mrs B Edhi Chairperson (deceased 15.4.22} Mr F Edhi Ms K Edhi Mrs F Aka Mr Y Abraham Ms M Khan Mr M S Edhi (appointed 1.12.23) Auditors S S)'cdain & Co Chartered Accounlants & Sialuiory Auditors First Floor 87 Kenton Road Harrow Middlesex HA3 OAH Bankers Lloyds Bank PIC 2 Silver Street Enfield ENI 3EN LEGAL STATUS Edhi International Foundation (UK) was registered as a Charity with The Charily Commissioners for England and Wales on 26th November 1992 (Charity Registration No. 1015408) STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the f)nancial statements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted AceDunting Practice) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Page 9 Tr-dhi Inlernational Foundgtion (L K) Report of the Tru$tee4 for the Year F.nded 31st December 2022 STATTr:IIF'.NI T OF TRLSTF.F.S' RTr:SPONSIHILITIF.S- conlinued I.IIL laii appliLable to charitlL5 in L.nLland and ￿'alL5. th¢.LhariiiL5 Act 2011. Charily (Accounts and Reports) Regulaiions 2(K)8 and the provisions of the irusi dttd require5 ihc Irustee5 lo prepare linanLial slalcrnLn15 for each finanLial year which give a true and fair v.iew of the slate of allairs ol. the charity and ot- the incoming resources and application of res()ur¢e& including Ihe inL()me and ex￿ndit￿re, ol- the charit}, lor that peri(Ml. In prcparing iho* linanLial s￿lemen15. IhL' Iru.4lLYS are required io sclcct suilable accounting FK)licies and then applv them consisiently; obsLrvL ihL mLih(x15 and prinLipILs in ihL L harilN' SORP.. make judgcmcnts and estimales thal arc rcasonablc and prudcnt- sla(L whethL'r applicable acci)unting standards have b¢cn followed. subje¢l to any maierial dcparturcs disclosed and explainLa in Ihc financial Slalemenis; prcpare the financial stalemenls on,Ihe going concern basis unless it is inappmpriate tD presumc Ihal ihe chariiy will continue in busine5S. Thc Irustecs are rcsw)nsiblc for kceping proper accounting records which di5¢105c wilh rcasonablc aLLuraLy ai an). lime ihe finanLial w?5ilic?n ul- Ihc charily and to cnablc Ihcm to ensurL' Ihal thL finulalions Ihal had a material effect on the financial stdlLinents or that had a fundamental ettect on the operations ol. thc charity Irom oui. prolessional and sector experience. We reviewed processes for in place for monitoring and accounting for funds provided to partner organisation5 Outside the UK. We communicated applicable law5 and regulations Ihroughout the audit team and remained alert to any indications of noncompliance throughout the audit. - We reviewed any report5 made to regulators. We reviewed the financial stalement disclosures and tesled these lo supporting documentation to assess compliance with applicable laws and regulations. We performed anal>tical procedures to idenlify any unusual or unexpected relationships thal may indicate risks of material misstatement due to fraud. Page 13 Reprt ofthe Ind¢peDdeDt Auditors to the Trustees of Edbi Internalion￿ Fou•datioD (UK) Because of the inherent limitstions of ￿ audiL there is a risk that we will not detect all irregularitie4 including those l￿ding to a material misstatement in the financial statements or non-compliance with regulation. This risk Increa￿ the more that compliance with a law or regulation is removed from the events and transactions Teflected in the financial statement& as we will bc less likely to Lvome aware of instances of non4A)mplIa￿e. The risk is also greater regarding irTe8ulaTities occurring due to fra￿￿ rather than error, as fraud involves intentional Oncealm￿L forgery.collusion, omission or Misrep￿sentsIIon. A further description of our re4)onsibi]ities for thc audit of the financial stat¢ments is located on the Financial Reporting C0￿clI.S website at www.frc.org.uklauditorsresp)nsibilitie& This description forn￿ part ofour Report of the Independent Audit(K& Use of our report This teport is made solely to the clwitys as a l￿y, in a¢cord8nce with Part 4 of the Charities (Accounts aThJ Rew>rts) Regulations 21K)8. audit work h&$ been undertaken so that we might state to the charitys ts1￿ those matters we are rquired to slate to them in aD auditOTS' report and for no other purpose. To the full￿ extent t¢rmitted by law, we do not accept or &8sume responsibility to anyone other than the charity and thc charitys trustees as a lJ)dy, for our audit worl forthis repor¢ or for the ¢)pini(ms we have fom* S. Syedain & Co Chart¢r¢d AcLx)unlants & Statutory Auditsrs First FI￿r 87 Kenton Road Harrow Middl¢scx HA3 OAH Date: . Page 14 Edhi International Foundation (UK) Statement of Finaneial Activitie5 for the Year Ended 31st December 2022 31.1? ?2 Total funds 31.12.21 Total funds Unrestricted Restricted fund funds Notes IP4COME AND ENDOWMENTS FROIM Doiiations and legacies 6,117,746 1.554,234 7,671,980 6,772,807 Investinent income Other incoine 278.553 278,553 159,091 17,358 Total 6,396,299 1,554,234 7,950,533 6.949,256 EXPENDITURE OIY Raising) tunds 109,874 109,874 95,906 Charitable activitie5 Costs tor gicnLratiiigy charitable income C harilable Doiiations 348,925 146,960 348,9?5 1,554,234 1,701.194 25?,370 657,334 Other (595,103) 1595,103) 46,042 Total 10,656 1,554,234 1,564,890 1,051,65? Nel g?ainsl(losses) on investments (320.292) (320,292) 45,000 NET INCOME 6.065.351 6,065,351 5,942,604 RECONCILIATION OF FUNDS Total funds brought fonvard 49,542,109 49,542,109 43,599,505 TOTAL FUNDS CARRIED FORWARD 55.607,460 55,607,460 49.542,109 The notes form part of these financial statements PagJe 15 Edhi International Foundation (UK) Statement of Financial Posilion 31st December 2022 31.1??2 Total funds 31.12.?1 Total funds Unrestricted Restricted fund funds Notes FIXED ASSETS Tangiible assets Investments Investments Investment property 12 360.759 360.759 369,959 13 14 2.230.000 6,632,054 2,230,000 2,205,000 2,590,759 2,590,759 9,207.013 CURRENT AS.SETS Debtors: amounts talling due wiihin one year Debtors.. amounts talling due after more than one year Investments Prepayments and accrued income Cash dl bank aiid in hai)d 28.047 ?8.047 290,415 15 2,917 16 52,156.2?7 7.418 961,00? 2,917 4,317 52,156.?27 39.689,2?9 7,418 11.479 961,002 1,187,182 53,155,611 53,155,611 41,182,622 CREDITORS Amount8 lalling due within one year 17 (127,870) {127,870) (827,463) NET CURRENT ASSETS 53,027,741 53,027,741 40,355,159 TOTAL ASSETS LESS CURRENT LIABILITIES 55,618,500 55,618,500 49,562.172 ACCRUALS AND DEFERRED INCOME 18 (11.040) (11.040) (20,063) IYET ASSETS 55,607,460 55,607,460 49,542,109 The notes fonn part of these financial statements Page 16 continued... Tr"dhi Internalional Foundation {LK) Statemenl of Financial Position Cnnlinued 3151 December 2022 19 Unrestricted fund_s 55,607.460 49.542.109 TOTAL b"LND&i 55.607.460 49.542.109 'I"he financial stsiemenis were approved by the Board of Trusiees and authorised for issue on . and were signed on its behalf by.. Mr F l..dhi - 'frusiee The noles forni part ofthLY finan¢ial statements Edhi International Foundation (UK) Statement of Cash Flows for th¢ Year Ended 31st December 2022 31.12.22 31.12.21 Notes Cash flow's from operating activities Cash generated trom operations 5,786,718 5,989,422 Nel cash provided by operating activities 5,786,718 5,989,422 Cash flows from investing activities Purchase of tangJiblc tixcd a55ets PurLha5e or rix¢d asset investments Purchase of ii)vestmenl property Sale of fixed assel investments Short term InvL'slincnt Interest reeeived (1,065) 11,870) (5,106,369) (345,292) 6.632.054 (1 ?,466,998) 168,403 (439,037) 97,841 Net cash used in invesiing) aclivities {6,01 ? 898) (5,449.435) Change in cash and cash cquii'alLnts in the repnrting perlod Cash and cash equivali'nts at the beginning of the rlporting period (226,180) 539,987 1,187,182 647,195 Cash and cash cquivalcnts at the end of the reporting period 961.002 1.187,182 The notes forni part of these financial statements Page18 Edhi International Foundation (UK) INoles to the Statement of Cash Flows for the Year Ended 315t December 2022 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.12.22 31.12.21 Net ineome for the reporting period (as per the Slatement of Financial Actii'ities) Adju¥tments for: Deprecialion charges Lossesl{gain) on inveslments Iiitere%t rcccived Decreasel(increase) in debtors (Decrease}linLrease in Lredilors 6,065.351 5,942,604 10,?65 320,?92 {168.403) 267,829 (708,616) 10.579 (45.000} (97.841) {253,959) 433,039 Net cash provided by operations 5,786.718 5,989.4?2 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.22 Cashflow Ai 31.1?.22 Net cAsh Cash at bank and in hand 1,187,182 (?26,180) 961,002 1.187,182 (226,180) 961,002 Liquid resources Deposits included in cash Current asset investments 39,689,229 12,466,998 52,156,227 39,689,229 12,466,998 S2,156.227 Total 40,876,411 12,240.818 53,117,229 The notes forn) part of these financial slalements Page 19 Edhi International FoulldatlOD (UK) Notes to the Financial Statements for the Year Ended 31st De¢ember 2022 ACCOUNTIIYG POLICIES Basis of preparing the financial statemenls Th¢ £inancial stateinenls of the Lliarity, whicli is a public benefit eiitit), under FRS 102, have been prepared in accordance with the Charities SORP (F Rs 102) 'A¢coiinliiig and Reporting by Charities.. Sialement ot Recommended Practice applicable to charities preparing, their accounts in accordance with ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (etyeetive l January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic ot Ireland, and the Charities Act 2011. The linaiicial slaleiiiL'nis have been prepared under the hisloriLal c05t c()iiv¢nlion, with the exc¢ption ot. investments which are included at market value, as modified by ihe revaluation of certain assets. Thc Trustces have a reasonable cxpectation that the charity ha5 adequate resources lo continue its aetivilies tor tlie foreseeable future. Accordiiig,ly, Ihey conlinue to adopl the &Toing concem basis in preparing, the financial statements as outlined in Statement of. Trustees Responsibilities on page 8. Income All income is recogjnised in the Statement of financial Activities once the charity has entitlement lo Ihe fund5, il is probable that the income will be received and the amount can be measured reliably. Investments comprise of rental income on inveslmenl propertie5 which are recog?nised when receivable. Iiiterest on funds held on deposit is included when receivable and the amount Can be mcasurcd reliably by Ihe charity, this is normall}, upon notification of the iiilei'est paid or payable by Ihe bank. Exp¢nditurc Liabilities are recobJnised as expenditiire as soon as ihere is a legal or constructive obligation comrnilting the charity lo Ihal expeiiditure. it 15 probable that a transfer ol. eeonornic beneli15 will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been cla55ified under headinbls that aggregate all cost relaled to the category. Where costs cannot be dirccily attributed to particular headings ihey have been allocated to activilics on a basis consistent with the use of resources. The charity has only a few rele￿ant activity categories on which resources are expended and a5 such the costs between the different categories are easily allocated without the use of any method of apportionment. Grant5 offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expeiidilure. Page 20 eontinued... Edhi International Foundation (UK) Notes to the Financial Statements - coThtiThued for the Year Ended 31st December 2022 ACCOUNTING POLICIES- eontinued Tangible fixed assets Depreciation is provided at the followingJ annual rates in order to write off each asset over its estirnated useful life. Freehold property 20/0 on c05t 150/0 on reducing Office Fumiiure and Equipment balance 25 10 on reducing balance Motor Vehicles C)aiiis and losses on tixed asset disposed of are included in Other Expenditure in the Statement of Financial Aclivities. Investmeni property Investment properly. which is property held to earn rentals andlor tor capital apprecialion, is initially measured at Cost and subsequently rncasured using the t(tii' valiiL model and slated at its fair v(ilue at Ihc reportingi Liid daiL. Tlie suiylus or deficil on revalualion is recouTnised as part of the nel incomelllossl tor the year. Taxation The charity is exempt from tax on its charitable activities. Fund aecounting Unrestricl¢d funds are available lo spend on activities that further any of the purposes ot the charity. Unrestricted funds can be used in accordance with the charilablc objectives at the discretion of the trustees. RestriLled funds can only be used for particular restricted purposes within the objects of the charity. Re5triclions arise when Specified by the donor or wheii funds are raised lor particular restricted purposes. Cash at bank and in hAnd Cash at bank and in hand includes cash and short tern) highly liquid investment with a short term maturity of le55 Ihan one year for the date of acquisition or opening of the deposil or similar account. Fixed Asset Investment Fixed asset inveslments include cash held in fixed deposit accounts with a maturity of More Ihan one year trom the date of acqui51tion. The carrying amount of the financial &ssets are measured at amortised cost. Page 21 continued.. Edhi International Foundatioll (UK) Notes to the Financial Statements - continued for the Year Ended 315t December 2022 DONATIONS AND LEGACIES 31.12.22 31.12.21 Donations Gift aid 7,49?.082 6,750,037 179,898 22,770 7,671,980 6,772,807 Included within the donations total an amount of £379,652 (2021: £429,473 ) in relation 10 Qurbani which is classilied as restricted incoine. INVESTMENT INCOME 31.12.22 31.12.21 Renlal Income Deposit account interest 110,150 168,403 61,250 97,841 278,553 159,091 RAISING FUNDS Raising donation5 and legacie5 31.12.22 31.12.21 Publication cost5 Advertiseinent 69.616 40.?58 61.394 34,512 109,874 95,906 Page 22 continued... Edhi International Foundation (UK} Notes to tbe Financial Statement5- continued for the Year Ended 315t Deeember 2022 CHARITABLE ACTIVITIES COSTS Grant funding ot. activities (see note Support costs (see note 7) Direcl Costs 6) Totals Costs for generatingT charitable income Charitable Donations 226,025 12? 900 348.9?5 1,701,194 1,701,194 2?6.025 1,701,194 12?,900 ?.050,119 GRANTS PAYABLE 31.12.22 31.12.21 Charitable Donations 1,701,194 657,334 This amount includes the following payrnenls.. Qurbani perforn)ed in Pakistan on behalf of UK donors for 2022 Purchasc of various equipinent5 to bL used in Pakistan Distributed food boxes during Rairjadan Flood relief donations to assist victims in Pakistan Le&ial aid project 379,652 114,355 5,805 1,174,582 26.800 ,701,194 Page 23 continued... Edhi International Foundation {UK) Notes to the Financial Statements- continued for Ihe Year Ended 31st December 2022 SUPPORT COSTS Governance costs Finance Totals Other resources expended Costs for generating) cliarilable income (605,368) (605.368} 63,947 58,953 122,900 63,947 (546,415) {48?.468) OTHER 31.12.22 31.12.21 Depreciation Support costs 10,265 (605,368) 10,579 35,463 (595,103) 46.042 Included within support costs are exchangTe rale gJains. AUDITORS, REMUNERATION 31.12.22 31.12.21 Fees payable to the charity's auditors for the audil ot the charity's financial statements 11.040 9.600 Other non-audil services 20,448 18,432 Total fees payable 31,488 28.032 Page 24 continued... Edhi International Foundation (UK) Notes to the Finaneial Statements - continued for the Year Ended 31st December 2022 10. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 st December 2022 nor foi. the year ended 31 st December ?0? l. Trustees, expenses There were no trustees, expense5 paid for ihe year ended 31 st December 202? nor for the year ended 31st December 2021. 11. STAFF COSTS 31.12.2? 31.12.21 Wagcs and salaries Social security costs Other pension co.8t8 157,343 8,274 798 143,138 6,854 554 166,415 150,546 The averag)e monthly number of employees duringF the year was as follows.. 31.12.22 15 31.12.21 13 Averabye Monthly Employees No employees received emoluments in excess of £60.000. Page 25 continued... Edhi International Foundation {UK} Notes to the Financial Statements- continued for the Year Ended 31st Deeember 2022 12. TANGIBLE FIXED ASSETS Office Freehold Furnilur¢ Motor property & Equipmeni Vehicle5 Tola15 COST At Isl January 2022 Additiuns 420,509 57,974 1,065 10,597 489,080 1,065 Ai 31st December ?022 420,509 59,039 10,597 490,145 DEPRECIATION Al I si Janiiary ?022 Charge for year 58,872 8,410 54,123 737 6,126 119.121 10,265 At 31 st December 2022 67,282 54,860 7,244 129,386 NET BOOK VALUE Ai 3 1st DLcembLr 2022 353,227 4,179 3,353 360,759 At 31 sl December 2021 361,637 3,851 4,471 369,959 13. FIXED ASSET INVESTMENTS There were no investment assets outside the UK. The fixed tem) deposit has been reclassified as short terni investment ihis year as it is due to mature within Ihc coming year. 14. INVESTMENT PROPERTY FAIR VALUE At l st January 2022 Additions Revaluation linpainnLnls 2,205.000 345,292 25,000 (345,?9?) Ai 31st December 2022 2,230,000 NET BOOK VALUE At 31st December 20?2 2,230,000 At 31st December 2021 2,205,000 Page 26 continued... Edhi International Foundation (UK) Notes to the Financial Statements- Continued for the Year Ended 31st December 2022 14. INVESTMENT PROPERTY- continued Edhi Inteniational Foundation (UK) holds four in￿.¢.￿tMent properties in London. The Investmenl properties were valued on an open inarket basis by Drakefields Estales Limited who have experience in valuing properties in the local areas. The trustees consider that the carrying value of Ihe inveslmeiit properties are a material approximation to the currenl market value. Fair value at 31 st December 2022 is represented by.. Valuation in 2015 Valualion in ?016 Valualion iii ?018 Valuation in 2U20 Valuation in 2021 Valuation in 2022 Cosl 351,8?8 253.982 25U,000 90,000 45.000 1320,292) 1,559,482 2,230,000 IS. DEBTORS 31.12.22 31.12.21 Amounts talling due within one year: Oiher dubtors Lease incenlive 26,647 1,400 289,015 1,400 28.047 290,415 Amounts falling due after more than one year.. Lease iiiLenlive 2,917 4,317 Aggregate amounts 30,964 294,732 Within the deblor5 balance is a lease incentive for one of the propertie5 that was leased out. A rent free period was given to the lessee and the amount above represents the lease incentive where the lease incentive is spread over the period of ihe ILase. Page 27 continued... Edhi lllternational Foundation (UK) Notes to the Financial Statements- continued for the Year Ended 31st December 2022 16. CURRENT ASSET INVESTMENTS 31.12.22 31.12.21 Short Terni Investment 52,156,?27 39,689.??9 This represents cash from donations which are held for short tern) basis only and can be easily withdrawn if required. 'fhe donations are kept in UK banks so that they can be readily available for immediate use in times of national disaster where large tunds would be required iniin¢diately. During the current year there was a reclassilicalion of a fixed a5SLt deposit account from fixed asset investinenl to Current assels as it is due to mature nexi year. 17. CREDITORS: AMOUNTS FALLING DUE WITHIIY ONE YEAR 31.12.?2 31.12.21 Social security and other taxes Other creditors 4,324 123,546 824,983 127,870 827,463 18. ACCRUALS AND DEFERRED INCOME 31.12.22 31.12.21 Accruals and deferred income 11.040 20,063 19. MOVEMEIYT IN FUNDS Net movement in funds At 31.12.22 Atl.1.22 Unreslricted fund5 General fund 49.542,109 6.065,351 55,607,460 TOTAL FUNDS 49,542,109 6,065,351 55,607.460 Page 28 continued... Edhi International Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 315t December 2022 19. MOVEMENT IN FUNDS- continued Net movement in funds, included in the above are as follows: Incoming Resource5 resources expended CJain% and Movemenl losses in funds Unrestricted funds (ieneral fund 6,396,299 (10,656) (320,292) 6.065,351 Restricted funds Qurbani Flood Relief 379,652 (379,65?) 1,174,582 (1,174,582) 1.554,234 (1,554,234) TOTAL FUNDS 7,950,533 {1,564,890) (3?0,?9?) 6.065,351 Comparatives for movemen¢ in funds Nel movement in funds At 31.12.21 At 1.1.21 Unrcstricted fund5 encral fund 43,599,505 5,942,604 49,542,109 TOTAL FUNDS 43,599,505 5,942,604 49.542,109 Comparative net movement in funds, included in the above are as lollows.. Incoming Resource5 resources ¢xp¢nd¢d Gains and Movement losses in funds Unrestricted funds General fund 6,519,783 (622,179) 45,000 5,942,604 Restrieted funds Qurbani 429,473 (429,473) TOTAL FUIYDS 6,949,256 (1,051,652) 45,000 5,942.604 Page 29 continued... Edhi International Foundation (UK) Notes to the Financial Statements - continued for the Year Ended 31st December 2022 19. MOVEMENT IN FUNDS- continued A current year l ? months and prior year 12 months combined position is as lollows.. Net rnovem¢nl in funds At 31.12.22 At 1.1.21 UnrestriLted funds Geiieral luiid 43.599,505 12,007,955 55,607,460 TOTAL FUNDS 43,599,505 12,007.955 55,607,460 cu￿ent year 12 months and prior year 12 monihs combined net movement in funds, included in the above are as follows: Incoming Resources resourcL's expended Gains and Movement losse5 in funds Unrestricted fund8 General tund 12,916.082 (632,835) (275.292) 12,007,955 Re5trieted funds Qurbani Flood Relief 809,125 1809.125) 1,174,582 (1,174.582) 1,983,707 {1.983.707) TOTAL FUNDS 14,899.789 (2.616,542) (275.292) 12,007,955 Page 30 continued... Edhi International Foundation {UK) Notes to the Financial Statements- continued for the Year Ended 31st Deeember 2022 20. RELATED PARTY DISCLOSURES The following related party transactions that occurred during the year are as below.. A sum of £379.65? (2021..£801,084) was paid to Abdul Saltar Edhi Foundation Pakistan for Qurbani PLrlormL.d on b¢'lidll-ul- donors in UK for the }'eai'. An amount of £114,355 (2021:£220,353) was paid tor the purchases ofvarious equipments to be used for charitable activities by Abdul Sattar Edhi Foundation in Pakistan. Am amount of. £1,174,582 was sent lo Pakistan to help the Pakistan Ilood victims as a result of the floods durinby ?02? that killed man). pLoplL and ¢aused devastating damagJe and econoinic losses. The amount collected from UK donors was sent to Abdul Saltar Edhi oiindation Pakistan who undL'rlook Ihc r¢liLI- process. The trustees of F.dhi International Foundatioii (UK) are also Trustees of Abdul Saltar Edhi Foundalion Pakistan. Page 31 Edhi International Foundation (UK) Detailed Statement of Fillancial Actii'ities for the Year Ended 31st December 2022 31.12.22 31.1? ?1 INCOME AND ENDOWMENTS Donations and legacies Donatioiis Gilt aid 7,492,082 6.750,037 179,898 7,671,980 6,772,807 nve5tment income Rental Income Deposit account inleresl 110,150 168,403 61.250 97,841 ?78.553 159,091 Other ineome Council Grant 17,358 Total incoming resources 7,950,533 6,949,256 EXPENDITURE Raising Ilonations and legacies Publication costs Advertisemenl 69,616 40,258 61,394 34,512 109,874 95,906 Charitable a¢tiviti¢s Wagies Social security Pensions Rent and Rates Insurance Ligsht and heat Telephone Repairs And Renewa15 Other Expenses Carried forward 157,343 8,274 798 17,734 8,518 9,370 4,483 12,158 7,347 226,025 143,138 6,854 554 19,260 10.325 7.266 4,506 9,089 4.869 205,861 This page does not fonn part of the statutory financial statements Page 32 Edhi International Foundation (UK) Detailed Statement of Financial Activities for the Year Ended 315t December 2022 31.12.22 31.12.21 Charitable xctivities Brought forward Charilable Donations 226,025 1,701,194 205,861 657,334 1,927,?19 863,195 Other Freehold property Fixlures and fillings Motor Vehicles 8,410 737 1,118 8,410 679 1,490 10,265 10,579 Support costs Finance Bank & Credit Card Cliarges 63,947 58.733 Governance costs Auditors, remuneration Auditors, remuneration for non audit work L¢'gTal Fees Protcssional Services Exchang?e Gain l Loss 11,040 9,600 20,448 18,432 25.504 21,005 (51,302) 27,465 1605,368) (546,415) 23,239 Total resources expended 1,564,890 1,051.652 Net income before gain5 and losses 6,385,643 5,897,604 Realised recogni5ed gains and losses Realised gain51{losses) on inv¢slment property (320,292) 45,000 Net income 6,065,351 5,942,604 This page does not form part ot. the statutory financial statements Page 33