OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Registered Charity Number: 1058460

Euro Charity Trust

Annual Report and Financial Statements

For the year ended 31 December 2020

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460
Contents
Page
Trustees’ report 1-7
Trustees’ responsibilities statement 8
Independent auditor's report 9-11
Statement of financial activities 12
Balance sheet 13
Cash flow statement 14
Notes to the financial statements 15-19

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

Introduction

This is the 2020 annual report of the trustees of the Euro Charity Trust (ECT). It is presented together with a trustees’ responsibilities statement on page 8, the independent auditor’s report on pages 9 to 11 and the ECT financial statements for the year ended 31 December 2020 on pages 12 to 19.

The ECT financial statements for the year ended 31 December 2020 have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s trust deed, the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP) 2016, and applicable UK accounting standards FRS 102.

The trustees’ annual report complies with the requirements of 2016 Charities’ SORP, and in addition the Charity Commission’s Public Benefit Reporting Requirements and the Charities Act 2011.

The Board of Trustees are satisfied with the performance of ECT during the year and the position at 31 December 2020. The Board consider that ECT is in a strong position to continue its activities during the coming year, and that the ECT's assets are adequate to fulfil its obligations.

Who we are

Name of organisation

Full name: Euro Charity Trust

Acronym: ECT

Charity number

1058460

Governance

Decision making

In 2020, all substantive decisions were made by the trustees. The trustees do not consider there to be any key management personnel.

Trust deed

ECT is an unincorporated trust, constituted under a trust deed dated 1 July 1996.

Trustees in the reporting period and at the time of report sign-off

Mr. Abdul S Malik

Mr. Ahmed Jamal Nasir Awan Mr. Abdul Majid Alimahomed Resigned 22 July 2020 Mr. Abdul Rashid Ibrahim Geloo Appointed 22 July 2020

Staffing

In 2020, the trustees received support from, and much work was done by, the following:

Mr Ikram Ahmed Mrs Leela Jackson Mr Shabir Majid Alimahomed Ms Cheryl Cawood Mr Abdul Rehman Varachhia Mr Abvul Vhaid Ms Caroline Atkinson

1

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

Source of income

ECT does not undertake any fundraising activity or solicit donations. ECT is a donation-based Trust receiving all its income from various related companies and individuals, and does not hold fixed investments. ECT reserves generate relatively insignificant investment income. As ECT does not undertake any fundraising activity, it is not registered with the Fundraising Regulator and does not subscribe to any codes of practise relating to fundraising. The Trustees are not aware of it having failed to comply with any fundraising standards and it has not received any complaints relating to its funds. ECT does not make any approaches to vulnerable people in respect of any fundraising matters and does not use professional fundraisers or involve commercial participators.

Registered office and professional advisers

Registered office Bankers 20 Brickfield Road HSBC Bank PLC Birmingham PO Box 360 B25 8HE 100 King Street Manchester M60 2HD

Solicitors Auditor The Wilkes Partnership Cowgill Holloway LLP 41 Church Street Statutory Auditor Birmingham Regency House, B3 2RT 45-53 Chorley New Road, Bolton, BL1 4QR

What we stand for

Objectives

ECT objectives are:

Mission

ECT’s vision is to assist the underprivileged to improve their lives, in turn, can assist their families and communities and live a healthy and dignified way of life.

Values

Our principal objective is to provide assistance and support to underprivileged people and communities. In doing so, ECT will:

2

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report For the year ended 31 December 2020

Public benefit statement

ECT provides donations to support under-privileged individuals and communities. When setting its objectives and planning its donations, ECT gives due careful consideration to the Charity Commission’s general guidance on public benefit. The Trustees also ensure that the programmes we undertake are in line with our charitable objects and aims.

What we do, how we do it and how we will strengthen it

ECT’s activities can be summarised as including the following:

  1. Grants

  2. Education Support for deserving students

  3. Loans to Educational and Religious establishments

1. ECT’s grants

ECT does not undertake direct project implementation. ECT makes grants in the form of donations primarily to nongovernmental organisations (NGOs) who work to further objectives and undertake activities which are in line with those of ECT. In 2020, ECT continued to support projects in India through its long term partners, Nathani Charitable Trust, Al Hamd Hospital, Hussain Ahmed Madani Charitable Trust and Madani Charitable Society. In addition, ECT supported the Anfar Foundation and The Memon Educational and Welfare Society in India. ECT also undertook work in Malawi with Mehboob Memorial Centre, a charitable organisation registered in Malawi, to deliver projects which are in line with ECT’S objectives.

ECT has also continued its partnership with a UK registered charity, Imdadul Muslimeen, who distributed 439 grants to organisations, the majority of which were based in India and Bangladesh, and to charitable organisations in other countries including Nepal, UK, Myanmar, Mozambique, South America, Mauritius, South Africa, Kenya, Malawi The Gambia and Congo. Imdadul Muslimeen were selected as partners due to their substantial experience of supporting hundreds of small organisations in South Asia and other parts of the world and it shares similar objectives to ECT.

Selection of partners and projects

ECT’s Trustees review incoming requests on a case-by-case basis, using their knowledge of the requesting organisations and ECT’s objectives and values as the bases for assessment.

Monitoring and evaluation

ECT provides grants on the condition that progress and end-of-project reports are submitted on a (generally pre-set) timely basis. In addition ECT’s Trustees may conduct verification visits to verify that the utilisation of funds and the impact of programmes has worked well. The Trustees also have in place a parallel system of formal evaluations of ECT’s largest partners as well. Furthermore, and in relation to the distribution of small grants to charitable institutions, ECT relies on Imdadul Muslimeen’s substantial knowledge and experience of dealing with hundreds of charitable organisations all over South Asia and beyond.

3

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

What we do, how we do it and how we will strengthen it (continued)

  1. ECT’s grants (continued)

Support in 2020

ECT’s foremost aim as a charity is to support human kind and one of its major focus countries has been India. ECT first became involved in India from 1996 onwards and resolved to increase its support in India following the publication of the Sachar committee report in 2006. The report revealed the condition of India’s minority communities and followed by many other reports, the state of India’s minority still remains the same and in some instances has worsened with an increase in population and rise in illiteracy, child labour, nutrition and dietary issues leading to disease and deaths, poor living / housing conditions, unemployment, hygiene and sanitation, feminisation of poverty and social tensions. In addition, during 2020, the coronavirus pandemic has had a significant impact on India’s population.

The government role has not had the desired impact in the community development sector whether being health, education, job placements or housing for the poor. Hence, ECT Trustees have resolved to provide relief in India thus driving the change which is the need of the developing nation, as ECT management strongly believes that a rise in the community standard may lead to rise in nation’s standards.

Similarly in Malawi being amongst the world's least-developed countries and completely reliant on overseas aid, ECT has many intervention programmes like education Aid/Bursary, providing water through bore wells, constructing schools, mosques and planning for a medical clinic for the betterment of the focal communities.

The following table includes ECT’s major partnerships (‘major’ defined as ECT having donated more than £100,000 in the course of 2020).

Organisation Country Contributio
n in £’000s		 Focus
organisation		 Focus ECT
contribution
1. Mehboob Memorial Centre Malawi 534 Education and
Welfare		 Construction and
running costs of
educational facilities
and Bore Wells
2. Imdadul Muslimeen UK Charity
supporting
projects in
India		 660 Education,
Welfare, and
Relief Work		 Education and welfare
3. Nathani Charitable Trust India 258 Education,
Medical Aid,
and Housing
Aid		 Scholarships, Women
Empowerment, and
Social Welfare
4. Maulana Hussain Ahmed
Madani Charitable Society
and Charitable Trust		 India 403 Education Construction and
running costs of
educational facilities
5. Al Hamd Hospital India 536 Medical Aid Medical Aid
6. Anfar Foundation India 135 Education,
Welfare, and
Relief Work		 Scholarships, food and
livelihood support
7. The Memon Educational and
Welfare Society		 India 110 Education Scholarships to
students and upgrade
educational institutions
Total 2,636

4

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

What we do, how we do it and how we will strengthen it (continued)

ECT focused the majority of its major funding to the following well established institutions, further details are as follows:-

Long term perspective

The trustees are committed to continuing the charity’s substantial work in India and carrying out projects in Africa and, in particular, Malawi. The Trustees will consider projects in other countries on a case by case basis. In terms of focus areas, ECT will continue to focus on:

5

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

In 2020, ECT will continue the system of trustee verification visits with a system of formal evaluations of partners who carry out projects on ECT’s behalf and will consider funding in other areas as and when felt appropriate.

2. Education support for deserved students

One of the ECT charitable objectives is the advancement of education and to assist in any purpose which would be considered to be charitable by the Charity Commissioners which the Trustees of ECT may from time to time, decide that may be in need of assistance.

What we do, how we do it and how we will strengthen it (continued)

In furtherance of the above objectives and in recognising that those from less well-off backgrounds may not have access to funds in order to meet fees and expenses, ECT provides financial assistance to students undertaking a course of study. The principal aim is to widen access to education for those who could not otherwise afford the fees and who demonstrate a potential to benefit from the education provided.

ECT assists individual students in enabling them to enhance their education and to encourage students to continue the development of skills, knowledge and ability in order to further their career development which will in turn help them find a job. ECT assists with primary and secondary schooling and University education up to the end of the academic year in which a student takes GCSE, A levels or a degree/equivalent. In 2020 ECT supported 14 students with grants totalling £21,243.

3. Loans for educational and religious establishments

The Trustees of ECT recognise that there is a need for religious institutions and therefore provides financial assistance for establishing places of worship.

In the UK and abroad, the support is usually in the form of a grant or loan. At the start of 2020, a total sum of £670,228 was outstanding from 7 different organisations in the United Kingdom. During the year, 1 additional loan was made totalling £40,000, £26,789 had been re-paid and the amount outstanding, which included the additional loan, was £683,439 by the end of 2020.

Risks, uncertainties and risk management and mitigation

The ECT trustees periodically assess the organisation’s risks. In 2020, the trustees identified the following continuing risks that will require ongoing attention:

Risk Risk management and mitigation plan
ECT’s projects or services need continuing
development and review to ensure compatibility
and maximum impact.		 a)
partners/applicants will be expected to provide more
information and documentation reporting on progress of
projects
b)
Information received will be reviewed and assessed by
specialist strategic advisors.
c)
2 in country Programmes Managers appointed to cover India
andMalawiwhich is wherekeyinterventions are taking place.
The Charity needs to review the direction and
strategy on an ongoing basis on the needs of the
beneficiaries who are supported.		 a)
The 2020 giving strategy has been developed allocating
budgets into categories with identified partners who will
deliver in those categories. And trustees will decide on grants
based on that strategy.

Financial review

For the year ended 31 December 2020, there was a deficit of £497,796 (2019: deficit £2,412,179). As at 31 December 2020, total income was £2,439,057 (2019: £33,712) and the balance carried forward, all of which are unrestricted funds as at 31 December 2020, was £3,835,124 (2019: £4,332,920).

The principal funding sources were donations from the Alimahomed family, and via companies controlled by them, and it is intended that for the foreseeable future, subject to receipt of funds, ECT will continue its charitable activities along the lines of its current activities as detailed in this report.

6

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust Registered Charity Number: 1058460

Trustees’ report

For the year ended 31 December 2020

There were no fund raising activities in the year.

Reserves policies

It is the policy of the charity to maximise unrestricted funds, which are the free reserves of the charity, to ensure sufficient funds are available to cover the following:

The board of trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations in respect of the total funds. In 2020 total funds carried forward at the year-end were £3,835,124 (2019: £4,332,920).

Appointment of trustees

Thus far, trustees, other than the originating trustees, have been appointed on the basis of a long-standing knowledge, shared by the existing trustees, of the appointee in relation to their integrity and probity and proven record in their chosen professional career. It is expected that the policy attaching to appointments will continue in that vein. The background of each appointee, all of whom have significant charity Trustee experience with other charities, is such that formal training was not required on appointment.

At any one time in the past there have been at least three trustees. A new trustee is appointed by a resolution of the trustees passed at a special meeting, which can be called at any time by the chairman or any two trustees, with not less than 21 days notice being given to the other trustees. During 2020, ECTs main benefactor Mr Abdul Majid Alimahomed stood down as trustee due to ill health and the trustees would like to thank him for his long term and tireless support to ECT and the many thousands of beneficiaries the Charity has supported over the years. The trustees appointed Mr. Abdul Rashid Ibrahim Geloo who has substantial experience and vast knowledge of charity work in all of ECT’s target countries and will be able to contribute much to ECT’s work.

Going concern

After making enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1 “Accounting Policies” in the financial statements.

Approved by the trustees and signed on their behalf by:

Dr Nasir Awan, MBE DL Deputy Lieutenant West Midlands Trustee of Euro Charity Trust Date: 6/9/2021 | 3:10 PM BST

7

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Trustees’ responsibilities statement For the year ended 31 December 2020

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

8

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Independent auditor’s report to the trustees of Euro Charity Trust

Opinion

We have audited the financial statements of Euro Charity Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, set out on pages 1 to 7 other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

9

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Responsibilities of trustees for the financial statements

As explained more fully in the Trustees' Responsibilities Statement set out on page 9, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to the regulation and operation of charities.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

10

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Cowgill Holloway LLP

Statutory Auditor, Chartered Accountants Regency House, 45-53 Chorley New Road, Bolton, BL1 4QR

Cowgill Holloway LLP is eligible to act as an auditor by virtue of its eligibility for appointment as an auditor of a company under section 1212 of the Companies Act 2006

Date: 6/9/2021 | 3:16 PM BST

11

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Statement of financial activities incorporating an income and expenditure account

For the year ended 31 December 2020

Note
Income
Donations
3
Investment income
3
Profit on foreign exchange
Other Income
Total income
Expenditure
Charitable activities
4
Loss on foreign exchange
Net (deficit)/income for the year
Reconciliation of funds
Total funds brought forward
Net movement in funds for the year
Total funds carried forward		 2020
£
2,432,000
7,057
-
-
2,439,057
(2,936,508)
(345)
(497,796)
4,332,920
(497,796)
3,835,124		 2019
£
26,000
3,492
2,965
1,254
33,711
(2,445,890)
-
(2,412,179)
6,745,099
(2,412,179)
4,332,920

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure derives from continuing activities and all funds are unrestricted in both current and prior years.

12

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Balance sheet At 31 December 2020

Note
Current assets
Debtors
8
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one year
9
Net assets
Funds
Unrestricted funds
Total funds		 2020
£
690,095
3,149,229
3,839,324
(4,200)
3,835,124
3,835,124
3,835,124		 2019
£
673,481
3,679,105
4,352,586
(19,666)
4,332,920
4,332,920
4,333,920

These financial statements of Euro Charity Trust registered number 1058460 were approved by the Board of Trustees and authorised for issue its behalf by:

Dr Nasir Awan, MBE DL Deputy Lieutenant West Midlands Trustee of Euro Charity Trust Date: 6/9/2021 | 3:10 PM BST

13

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Cash flow statement

For the year ended 31 December 2020

Note
Net cash flows from operating activities
12
Net cash flows from investing activities
13
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the end of the year		 2020
£
2019
£
(536,933)
(2,700,673)
7,057
3,492
(529,876)
(2,697,181)
3,679,105
6,376,286
(529,876) (2,697,181)
3,149,229
3,679,105

Cash and cash equivalents are represented by cash at bank and in hand.

14

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Notes to the financial statements

For the year ended 31 December 2020

1. Accounting policies

Charitable status

Euro Charity Trust is a public benefit unincorporated entity which currently has three trustees. The charity is a registered charity, its registered office noted on page 2.

Basis of accounting

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2015; and the Charities Act 2011.

The principal accounting policies are set out below.

Preparation of financial statements - going concern basis

The charity’s activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees’ Report, which also describes the financial position of the charity including its cash and reserves policy. The charity forecasts and projections, taking account of reasonably possible changes in donations and investment income and other uncertainties, show that the charity should be able to operate with its current level of reserves. The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Income

Income comprises donations and investment income and is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities relates to donations made to individuals, organisations and institutions in line with the objects of the charity.

Support costs relate to the charity’s charitable activity of providing donations and loans to individuals, organisations and institutions.

Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

Fund accounting

All funds are unrestricted.

15

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Notes to the financial statements (continued)

For the year ended 31 December 2020

1. Accounting policies (continued)

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature no more than three months from the date of acquisition and that are readily convertible to known amounts with insignificant risk of change in value.

Taxation

The charity is regarded as a charity by HMRC and its income is not subject to taxation on its charitable activities.

Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Charitable loans

Charitable loans are made to organisations with aims in line with the charity’s objectives. The loans, which are interest free, are for capital projects and repayment is expected from income generated by these projects in the future. Provision is made against charitable loans for amounts that have not been received between the balance sheet date and the date that the accounts are signed. All balances included in debtors are therefore measured at their settlement value.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies which are described in note 1, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant; actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

3. Income

The charity received donations of £2,432,000 (2019: £26,000).

Investment income of £7,057 (2019: £3,492) relates to interest received on bank deposit accounts held in the United Kingdom.

16

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Notes to the financial statements (continued)

For the year ended 31 December 2020

4. Charitable activities

Donations were made to institutions and individuals for the following charitable activities:

Construction of education and
training establishments
Education and sponsorship
Medical provision
Welfare including the provision of
food, water, clothing and healthcare
Other activities		 Grants to
institutions
£
Grant to
individuals
£
39,000
-
267,329
22,899
565,705
1,147
1,756,917
-
258,000
-
2,886,951
24,046		 Support
cost
£
342
2,543
4,968
15,397
2,261
25,511		 Total
2020
£
39,342
292,771
571,820
1,772,314
260,261
2,936,508		 Total
2019
£
88,472
1,230,367
407,655
719,396
-
2,445,890

All grants approved in the year were paid before the year end and there were no grant creditors carried forward at the balance sheet date (2019: £Nil).

The charity meets its objectives by making donations and loans to individuals and other charitable organisations whose aims match those of the charity. Donations have been made to various individuals, organisations and institutions worldwide. Donations representing more than 5% of the total expended for the year were:

for the year were:
2020 2019
£ £
Nathani Charitable Trust 258,000 256,000
Maulana Hussain Ahmad Madani Charitable Trust and Charitable Society 402,868 371,000
Imdadul Muslimeen 660,000 691,000
Mehboob Memorial Centre 534,049 461,000
Al Hamd Hospital 535,705 351,000

17

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Notes to the financial statements (continued)

For the year ended 31 December 2020

4. Charitable activities (continued)

Support costs have been allocated to expenditure on charitable activities as follows:

2020
Construction
£
Governance
66
Human resources
266
General expenses
10
342
2019
Construction
£
Governance
269
Human resources
417
General expenses
2,786
3,472		 Education
£
489
1,981
74
2,544
Education
£
3,738
5,794
38,750
48,281		 Medical
£
954
3,868
145
4,967
Medical
£
1,238
1,920
12,839
15,997		 Welfare
£
2,957
11,989
451
15,397
Welfare
£
2,185
3,388
22,657
28,230		 Other
£
434
1,761
66
2,261
Other
£
-
-
-
-		 Total
£
4,900
19,865
746
25,511
Total
£
7,430
11,517
77,032
95,980

Support costs are allocated across the charity’s activities based on the proportion of total grant expenditure within each activity.

5. Auditor’s remuneration

Support costs include auditor’s remuneration of £4,200 (2019: £7,430). Amounts payable in respect of non-audit services were £Nil (2019: £Nil).

6.

Trustees’ remuneration and expenses

No remuneration or other benefits or expenses has been paid to the charity’s trustees or people connected with them from the charity or any company connected with it in the current or prior year.

7.

Employees

The charity had no employees in 2020 (2019: 1). In addition, administration and bookkeeping costs are provided by Euro Packaging UK Limited (and recharged to ECT) as well as the support of 3 part time consultants. The trustees do not consider there to be any key management personnel other than the trustees. No employees were paid in excess of £60,000.

18

DocuSign Envelope ID: D9186277-8D9E-4210-9020-69486D02FBA7

Euro Charity Trust

Notes to the financial statements (continued)

For the year ended 31 December 2020

8. Debtors

Amounts falling due within one year
Loans
Other debtors
Loans are loans made for charitable purposes (see Trustee’s report note 3).
9.
Creditors
Amounts falling due within one year
Accruals		 2020
£
683,439
6,656
690,095
2020
£
4,200		 2019
£
670,228
3,253
673,481
2019
£
19,666

10. Related party transactions

During the year the charity received donations of £32,000 (2019: £26,000) from relatives of one of the trustees and received donations of £2,400,000 (2019: £Nil) from companies controlled by relatives of one of the trustees.

11. Commitments and contingencies

The charity has no commitments that required provision in the financial statements. The charity has not given any guarantees. The charity did not have any contingent liabilities.

12. Net cash flows from operating activities

Net income
Interest income
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash inflow from operating activities
13.
Cash flows from investing activities
Returns on investments
Bank interest received		 2020
£
(497,796)
(7,057)
(16,614)
(15,466)
(536,933)
2020
£
7,057		 2019
£
(2,412,179)
(3,492)
(300,622)
15,620
(2,700,673)
2019
£
3,492

19