OpenCharities

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

2022-07-31-accounts

The Khayaal Theatre Company

Charity No. 1100005

Company No. 03597083

Trustees' Report and Unaudited Accounts

31 July 2022

The Khayaal Theatre Company Contents

Pages
Trustees' Annual Report 2 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Summary Income and Expenditure Account 14
Balance Sheet 15
Statement of Cash flows 16
Notes to the Accounts 17 to 22
Detailed Statement of Financial Activities 23 to 24

Page 1

The Khayaal Theatre Company Trustees Annual Report

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 July 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 03597083

Charity No. 1100005

Registered Office

42 Alexandra Avenue PO Box 2523 Luton LU3 9BN

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

R. Mughal

S.H.H. Naqvi

F. Qureshi

G. Virani

Company Secretary

L.A. Ali

Accountants

Sabat Accountants Ltd t/a Seymour King Suite G1

Hartsbourne House Delta Gain Watford WD19 5EF

OBJECTIVES AND ACTIVITIES

The objects for which the company is established are to promote, maintain, improve and advance public education particularly through the research, development, production and performance of drama and theatre inspired by and adapted from Muslim literature and the wisdom literature of other faith traditions.

The company's activities typically include touring stage performances (Theatre-without-Walls), running drama workshops, devising and running theatre-in-education programmes, publishing children's books, training, advocacy and consultancy.

Page 2

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE

As the pandemic conditions of the past 16 months continued to subside, we continued to transition back to the physical delivery of Theatre-without-Walls’s on demand, small-scale and high quality and impact offerings for our multi-sector partners across the country. This transition was made possible by the continued support of the DCMS/Arts Council England Cultural Recovery Fund through the first round of Emergency Resource Support (ERS). We also continued to serve virtual audiences globally with our catalogue of short films (via YouTube, Vimeo, Alchemiya and our social media channels) created during the height of the pandemic in 2020-21 and online performance events using Zoom. Working in this hybrid way proved as demanding as it was gratifying and in many ways the pandemic served to help us fulfil longstanding aspirations to reach wider audiences beyond borders.

Over the period August-December 2021, we delivered 6 online performance events and 15 physical touring events comprising 25 performances/workshops and 10 offerings benefitting national and international audiences numbering 3000 mostly with new partners across six sectors (academia, community, culture, faith/interfaith, education and charity).

The highlights of this period were our successful debut at Cheltenham Literature Festival where we regaled lively and super enthusiastic audiences of primary school children (ages 5-6) with comic tales from our award-winning book for children, ‘Riding a Donkey Backwards’ and our online streaming event with Institute of Business Administration (IBA) Karachi where we shared our acclaimed ‘Edhi Means Love’ film telling the inspiring story of the peerless Pakistani humanitarian of the 21st century and Nobel Prize nominee, Abdul Sattar Edhi.

“Having two performers worked really well and the interactive qualities and humour throughout kept our young audience enrapt.” – Loraine Evans, Cheltenham Literature Festival

“… The script is so engaging and inspirational. As discussed in the panel discussion, preparing this screenplay in other part of the world proves the universality of Edhi sb. Thank you for this.” – Dr Asma Hyder, IBA Karachi

Other partners over this five-month period included Muslim Charity Forum, Iqra Book Festival, Council for World Mission, Cambridge University, Muslim Institute, Newham Borough Council, Luton Culture and Milton Keynes Islamic Art and Culture. Offerings included Riding a Donkey Backwards, Rumi Tales, 1001 Stories, House of Wisdom in the Golden Age of Islam, Multifaith Stories, Muslim Nativity and Muslim Heritage Stories.

“I just wanted to share that the wonderful performance we attended at Stockwood Discovery centre sparked off my girls to perform their much loved grufffalo story play - JzkAllah Khayr for your wonderful story telling session on trees.” – mamateachesme

(Instagram Luton Muslim Homeschooling Group 16.7k followers) on Stories from the Trees, Multifaith Stories on the environment

“Thank you once again for your input. Michael of Council of World Mission was very impressed by you which is not a surprise. He will be keen in the future to explore further avenues of involving you at some other national/international platforms …” – David Jonathan, Luton Council of Faiths & Grassroots on Building Life-flourishing Communities

Page 3

The Khayaal Theatre Company Trustees Annual Report

"Thank you once again for taking the time to visit and for giving these pupils something which I think is a lifetime experience – by bringing engaging and Islamic theatre to school. The performance and workshops were brilliant and I can’t thank you enough …” – Hannah Malik, Preston Girls Muslim High on Muslim Heritage Stories

“Atheist household here (raised Muslim and Christian) - very much enjoyed this and value the perspective. Nice to get multiple perspectives for our child.” – Atheist on Muslim Nativity

It’s a great production and she is a wonderful storyteller! It takes a real gift to keep attention with only your person and your voice. I think we could learn something of telling the story contextually from this. It was brilliant how it wove contemporary themes (and Christmas music) into the story (“Chestnuts roasting on an altar fire...”); poverty, injustice. And the haunting use of the melody of “O Come O Come Emmanuel, but contextually changed to an Islamic theme.” – Christian on Muslim Nativity

We began 2022 excited by the prospects of our first full calendar year of normal physical touring of Theatre-without-Walls offerings after the pandemic and reaching the incredible milestone of 25 years of service. The 7-month period leading up until our FYE 31st July 2022 proved very busy indeed as we received a surge in demand as both new and existing multisector host partners requested to work with us to reconnect and re-socialise their communities. As a result, output over this period actually surpassed that of the pre-pandemic year of 2019 by 29% in relation to events and by 40% in relation to performance/workshop units delivered. 50% of our host partners were new over the period leading us to work for the first time in Northern Ireland with Sole Purpose Productions as they, like us, were celebrating their 25th anniversary. We were also thrilled to work for the first time with both Cambridge Central Mosque and Cambridge Muslim College. Our artistic collaboration with producer Farokh Marvasti and Eurasia Symphony Orchestra on the stupendous Gathering of the Birds Concert at Central Westminster Hall saw us revisit on a large scale the literary subject of our 1998 debut production, Conference of the Birds, by the Persian Sufi apothecary and sage Fariduddin Attar. Approximately 800 people attended this event, most of whom were of Iranian/Persian heritage.

Other highlights of the Jan-Jul 2022 period included a sell-out third partnership event with Oxford University Islamic Society, a near capacity second engagement with Sufi Festival in Glasgow and a sell-out fifth engagement with the Compass Network at Norton Rose Fulbright in London. We were also fortunate to deliver a co-creational 5-week residency in partnership with Faiths Forum for London and Bilal Education in Romford, E. London during which we worked with 20 young people of Swahili/East African heritage to explore, develop and perform Swahili folktales for their communities supported by The Platinum Jubilee Fund. We ended the year contributing to our local Denbigh High School’s Enrichment Week with interactive performances of wisdom tales from E. Africa, Iraq, Iran, China and Rumi for 450 pupils over two days.

Page 4

The Khayaal Theatre Company Trustees Annual Report

2021-2022 Facts & Figures

Physical Output

Events: 49 Physical Performances & Workshops (units): 79 Multi-Sector Host Partners: 44 Local Authorities Reached: 25 Live Audiences/Beneficiaries: 7,600 (30% of potential audience) Average Lead Time (from request to delivery): 7 weeks Artists: 10

Sectors: Education, Academia, Culture, Community, Corporate, Charity, Local Government, Faith/Interfaith Requests Logged: 146 New Partners/Requests: 84 Repeat Partners/Requests: 62 Estimated Potential Physical Audience: 25,000

Digital Output

(1)

Hosted Online Performances:7 Multi-Sector Host Partners: 6

Countries Reached: UK, USA, South Africa, Canada, Pakistan, Germany, Spain and beyond Digital Audiences/Beneficiaries: 1,011

Sectors: Education, Community, Faith/Interfaith, Culture, Academic and Charity

(2)

Digital Content Offerings (Films and Audio): 14

Channels/Platforms: Facebook, Instagram, YouTube, Vimeo, Linked-In, Soundcloud, Alchemiya and Islam Channel

Digital Audiences/Beneficiaries: 100K minimum

Project offerings in order of quantity delivered:

• Muslim Heritage Stories promoting and celebrating humanitarian values from Afghanistan, Saudi Arabia, Iraq, Palestine, China, Pakistan, Iran, India, Tunisia, Bangladesh, Yemen, Mali, Nigeria, Syria, Lebanon, Somalia, Tanzania, Sierra Leone, Turkey, Syria, Uzbekistan, Andalusia, Sudan, etc. 80%

• Other: House of Wisdom in the Golden Age of Islam, Multifaith Stories, Muslim Nativity, Edhi Means Love, Riding a Donkey Backwards and Conference of the Birds 20%

Page 5

The Khayaal Theatre Company Trustees Annual Report

New performances and workshops researched, developed, produced and presented:

Storytelling Theatre Performances

Total of 180mins or 3hrs of new offerings

Drama and Storytelling Training Workshops

Total of 43hrs of new offerings

Page 6

The Khayaal Theatre Company Trustees Annual Report

Developments in the Wider Work of Khayaal 2021-2022

• Eleanor Martin, our Associate Director advanced the cultural and artistic advocacy of Khayaal by giving a presentation at the University of Cambridge’s Faculty of Education as part of a 3-day workshop on Muslim Women in Education through 24-26th September 2021.

• Luqman Ali, our Artistic Director and CEO, continued to serve as an Advisor/Trustee Director at Amal (www.amal.org.uk). He initially served as the founding convening advisor of the organisation in 2016 and became a Trustee Director in 2020.

• We continued to support students and academics in undergraduate and postgraduate education at academic institutions with their research on Islam and Muslim-related theatre, drama, literature, art and culture including students and faculty at Warwick University, City University, Tufts University USA, University of Manchester, University of Exeter and University of Oxford.

• We continued to leverage our expertise, experience and accrued cultural capital to provide development support and consultancy to both emerging and experienced Muslim artists and arts organisations e.g. Mimar, Birmingham and Alchemy Arts, Manchester.

• We commissioned the acclaimed sculptor and geometer, Adam Williamson, to design and hand carve a custom folding backdrop screen from English oak combining Islamic architectural design features from Andalusia and Rajasthan to serve as the centrepiece of our Theatre-without-Walls touring set.

• We continued to provide publicity support to Islam-Muslim related theatre productions including Rumi, The Musical, London Coliseum; Makrooh, Soho Theatre; Mohand and Peter, Southwark Playhouse; and Where Two Oceans Meet, Birmingham.

Page 7

The Khayaal Theatre Company Trustees Annual Report

• We continued to advocate for justice and equity in the UK cultural sector for BAME audiences, artists, cultural practitioners and cultural producers in relation to socio-cultural opportunities, recognition, access to public space, funding and representation. Interlocutors on these issues included Arts Council England, Esmee Fairbairn Foundation, Paul Hamlyn Foundation, National Lottery Heritage Fund and Amal. Despite public acknowledgements of structural injustice and inequity in the sector and the formulation of new funding policies to address these issues on the part of funders and development agencies in the wake of George Floyd, Windrush and the disproportionate impact of Covid on minority communities, we continued to experience exclusion and a lack of understanding of the society-wide inequalities and disparities that stifle the aspirations of minority cultural actors. These include but are not limited to unjustifiably high thresholds and inflated expectations on the part of funders when it comes to scale of operation, impact and turnover that can only be based on the erroneous assumption that minority cultural producers benefit from equal access to resources and opportunities and a level playing field. By evidencing the wide socio-economic and socio-cultural disparities that disadvantage BAME communities when it comes to average household wealth, employment prospects, physical and mental health outcomes, acceptance and belonging and multiple deprivation, we endeavoured to convince our interlocutors that real equity means calibrating threshold and expectation criteria for support to the realities of the lived experience of minorities in the round. For example, when the average household wealth of a white British family (£314K) is ninefold that of a black African family (£34K), it is manifestly clear that the socio-economic barriers to socio-cultural inclusion and stake-holding where the arts are concerned are in no way comparable.

Monitoring & Evaluation

Company

•Overall evaluation and risk analysis of the company’s activities over the year using internal measurements and indicators and assessment of the satisfaction of staff, volunteers, partners and beneficiaries resulted in the following key findings:

•High levels of satisfaction with Khayaal’s products and services both quantitatively and qualitatively relative to human, material and financial resources at our disposal.

•Continuous up-skilling and professional development critical to improving quality and generating innovation and creativity.

•More stable and longer-term financial investment critical to growth and realisation of potential.

•Challenges presented by impact of pandemic and cost-of-living crisis will need to be met with creative and entrepreneurial ingenuity and a highly adaptive business model.

Page 8

The Khayaal Theatre Company Trustees Annual Report

Performances & Workshops

•Our ongoing evaluation of audiences’ and partners’ responses to our original adaptations of humanitarian values tales and stories from Muslim and multifaith literature led to the following key findings:

•Muslim audiences respond to our work with an increase feeling of belonging, pride and heightened aspiration, all of which contribute to greater awareness of and confidence in the inclusive resources within their cultural traditions that encourage integration and foster contributory citizenship within wider society.

•Audiences from other traditions, both faith and secular, respond to our work with high levels of appreciation and gratitude for the opportunity to experience the aesthetics, wisdom, humour and humanity of Muslim cultures in performance made accessible by our work.

•Both audiences express high levels of commendation and appreciation for the opportunity for intercultural dialogue, engagement and understanding within one of Britain’s most important socio-cultural institutions and art forms.

FINANCIAL REVIEW

During the year under review the charity received unrestricted income of £158,422 (2021: £147,106) and restricted income of £18,333 (2021: £16,666) and had an expenditure of £126,592 (2021: £139,736) and £10,029 (2021: £16,235) for unrestricted and restricted respectively. At the Balance Sheet date the charity held unrestricted funds of £91,001 (202: £59,170) and restricted funds of £8,736 (2021: £431) .

The Trustee Directors have established a reserves policy that holds that unrestricted funds equivalent to a minimum of 12 weeks of the last complete financial year’s turnover be held by the theatre company to cover current liabilities, commitments and activities/operations for three calendar months. For the current year, this equates to £29,214.

The purpose of this policy is to ensure that Khayaal TC is able to act in the interests of its charitable purposes and its beneficiaries, as well as protecting and safeguarding its assets and ensuring that due diligence is taken in complying with current legislation and good practice guidance.

The trustees have given due consideration to the ability of the Charity to continue as a going concern. Due to the continued support the charity receives from its donors and the public, the trustees are satisfied that the going concern basis remains appropriate in preparing these financial statements. Furthermore, the charity believes that the level of unrestricted funds held remains sufficient to support the activities of the charity in the foreseeable future.

Financial and risk management objectives and policies

Risk mitigation has been central to the organisational management processes that have ensured that we have alternately survived and flourished for over two decades. We manage and mitigate risk by maintaining a high level of industry awareness and forecasting. This is achieved by monitoring developments in our sector and related sectors in the media and public forums. We also review our organisational SWOT analysis on a regular basis taking into consideration market trends here and abroad affording us continuous tracking across analysis factors. Where financial risk is concerned, we have primarily employed the combined strengths of scalability, commitment, ingenuity and passion in order to adapt to changing circumstances and transform challenges into opportunities. Our core staff and board of directors share responsibility for risk mitigation.

Page 9

The Khayaal Theatre Company Trustees Annual Report

Principal funding source

Over the year 2021-22, our funding came from a mix of sources as follows:

• Grants 75% (Amal, Bedfordshire and Luton Charitable Foundation, DCMS/Arts Council of England, Garfield Weston Foundation, HMRC JRS, National Lottery Community Fund and Safera Foundation)

• Restricted Fund Grants: (1) Amal for Theatre-without-Walls project (2) Bedfordshire and Luton Community Foundation's Community Recovery Fund for Khayaal 25 Luton project.

• In-Kind support and resources in terms of underpaid core staff time relative to multidisciplinary expertise and experience, volunteer time, host partners’ contributions of performance spaces, digital channels, staff time, publicity, etc. have been quantified and valued monetarily as equivalent to at least 50% of cash turnover at £88K

PLANS FOR FUTURE PERIODS

Future plans for 2022-2023

•We will continue laying the foundations for continuous drama academy provision integrating drama, character virtues and Muslim literature beginning with monthly drama academies for mainly but not solely Muslim children aged 5-15 in Cambridge, Luton and NW London. Once we have established the monthly provision, we will then work to expand to fortnightly and later weekly provision. The Cambridge academy has been up and running for 18 months and the Luton academy for 6 months to date, so this work is well underway.

•Delivering 50-60 physical Theatre-without-Walls performance events nationally with multi-sector partners.

•Leveraging our accrued cultural capital and longstanding, privileged partnerships with BAME/Muslim communities in order to increase our grant funding from public and private funders including trusts/foundations.

•Redeveloping our website and refreshing and enriching our branding across our social media channels.

•Continue work on our 3-year (2021-2024) funded PhD project on British Muslim Engagement with Theatre in partnership with Manchester Metropolitan University, the Arts and Humanities Research Council and North West Consortium Doctoral Training Partnership. The project will be delivered by our successful applicant doctoral student Serena Slack-Robins who returns to Khayaal after working with us 23 years ago on our debut production, Conference of the Birds.

•We will work with emerging partner ETHOX, Oxford University to develop a proposal and fundraise for an applied theatre project to explore attitudes to death and dying in British Muslim communities with a focus on the relationships between these communities and providers of palliative end-of-life care.

Page 10

The Khayaal Theatre Company Trustees Annual Report

•We will work with existing partner, Alchemy Arts, to deliver the theatre strand of the inaugural Muslim Artists Academy in Manchester comprising 6 weekly workshops for Muslims wishing to develop skills in drama and theatre. The project is supported by Arts Council England.

•We will work with new partner, Birmingham Repertory Theatre, to develop a long-term working relationship in order to serve the socio-cultural and arts education needs of the largest Muslim community in the UK.

•We will work to re-track our developing partnership with new partner, The Little Angel in Islington, with a view to co-producing a children’s theatre adaptation of our award-winning ‘Riding a Donkey Backwards’ book. This work began in 2018-19 but was put into suspended animation by the pandemic.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

F. Qureshi Trustee 17 March 2023

Page 11

The Khayaal Theatre Company Independent Examiners Report

Independent Examiner's Report to the trustees of The Khayaal Theatre Company

I report to the charity trustees on my examination of the financial statements of The Khayaal Theatre Company for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Sajjad Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF 17 March 2023

Page 12

The Khayaal Theatre Company Statement of Financial Activities

for the year ended 31 July 2022

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other
7
Total
Expenditure on:
Other
8
Total
Net gains on investments
Net income
9
Transfers between funds
Net income before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2022
£
36,932
111,250
31
10,209		 Restricted
funds
2022
£
-
18,333
-
-		 Total funds
2022
£
36,932
129,583
31
10,209		 Total funds
2021
£
25,757
138,015
-
-
158,422
126,592		 18,333
10,029		 176,755
136,620		 163,772
155,971
126,592
-		 10,029
-		 136,620
-		 155,971
-
31,831
-		 8,305
-		 40,135
-		 7,801
-
31,831 8,305 40,135 7,801
31,831
59,170		 8,305
431		 40,135
59,601		 7,801
51,800
91,001 8,736 99,736 59,601

Page 13

The Khayaal Theatre Company Summary Income and Expenditure Account

for the year ended 31 July 2022

Income
Interest and investment income
Gross income for the year
Expenditure
Depreciation and charges for
impairment of fixed assets
Total expenditure for the year
Net income before tax for the year
Net income for the year		 2022
£
176,724
31
176,755
133,458
3,162
136,620
40,135
40,135		 2021
£
163,772
-
163,772
153,209
2,762
155,971
7,801
7,801

Page 14

The Khayaal Theatre Company Balance Sheet

at 31 July 2022

Company No.
03597083
Notes
2022
£
Fixed assets
Tangible assets
11
10,244
10,244
Current assets
Cash at bank and in hand
92,578
92,578
Creditors:Amount falling due within one year
12
(3,086)
Net current assets
89,492
Total assets less current liabilities
99,736
Net assets excluding pension asset or liability
99,736
Total net assets
99,736
The funds of the charity
Restricted funds
13
Restricted income funds
8,736
8,736
Unrestricted funds
13
General funds
91,001
91,001
Reserves
13
Total funds
99,736		 2021
£
11,647
11,647
49,985
49,985
(2,031)
47,954
59,601
59,601
59,601
431
431
59,170
59,170
59,601

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 July 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 17 March 2023

And signed on its behalf by:

F. Qureshi Trustee 17 March 2023

Page 15

The Khayaal Theatre Company Statement of Cash flows for the year ended 31 July 2022

Cash flows from operating activities
Net income per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
Other gains/losses
Increase/(Decrease) in trade and other payables
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Dividends, interest and rents from investments
Net cash from/(used in) investing activities
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash and bank balances		 2022
£
40,135
3,162
(10,240)
-
1,055
34,112
(1,759)
10,240
8,481
-
42,593
49,985
92,578
92,578
92,578		 2021
£
7,801
2,762
-
-
(3,969)
6,594
(13,744)
-
(13,744)
-
(7,150)
57,135
49,985
49,985
49,985

Page 16

The Khayaal Theatre Company Notes to the Accounts

for the year ended 31 July 2022

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 17

The Khayaal Theatre Company Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Plant & Machiney 25% Reducing balance Motor Vehicle 25% Reducing balance

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 18

The Khayaal Theatre Company Notes to the Accounts

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments from:
Donations and legacies
Charitable activities
Total
Expenditure on:
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2021
£
25,757
121,349
147,106
139,736
139,736
7,370
7,370
7,370
51,800
59,170		 Restricted
funds
2021
£
-
16,666
16,666
16,235
16,235
431
431
431
-
431		 Total funds
2021
£
25,757
138,015
163,772
155,971
155,971
7,801
7,801
7,801
51,800
59,601

Page 19

The Khayaal Theatre Company Notes to the Accounts

4 Income from donations and legacies

Donations
Fees receivable
Friends' subscriptions
5
Income from charitable activities
Grants
6
Income from investments
Interest income
7
Other income
Gift Aid
JRS Grant
8
Other expenditure
Employee costs
Motor and travel costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs		 Unrestricted
£
111,250
111,250
Unrestricted
£
40,544
16,416
3,054
45,668
20,910
126,592		 Unrestricted
£
8,244
26,563
2,125
36,932
Restricted
£
18,333
18,333
Unrestricted
£
31
31
Unrestricted
£
7,760
2,449
10,209		 Total
2022
£
8,244
26,563
2,125
36,932
Total
2022
£
129,583
129,583
Total
2022
£
31
31
Total
2022
£
7,760
2,449
10,209		 Total
2021
£
13,227
10,790
1,740
25,757
Total
2021
£
138,015
138,015
Total
2021
£
-
-
Total
2021
£
-
-
-
Restricted
£
3,457
656
108
3,855
1,953
10,029		 Total
2022
£
44,000
17,072
3,162
49,523
22,863
136,620		 Total
2021
£
40,571
7,659
2,762
63,387
41,592
155,971

Page 20

The Khayaal Theatre Company Notes to the Accounts

9 Net income before transfers

9
Net income before transfers
2022
This is stated after charging:
£
Depreciation of owned fixed assets
3,162
Independent Examiner's fee
1,322
10 Staff costs
2022
Salaries and wages
43,942
43,942
No employee received emoluments in excess of £60,000.
The average monthly number of employees during the year was as follows:
2022
Number
Administration and
production
5
5
11 Tangible fixed assets
Plant &
Machiney
£
Cost or revaluation
At 1 August 2021
15,070
Additions
1,759
At 31 July 2022
16,829
Depreciation and
impairment
At 1 August 2021
3,913
Depreciation charge for the
year
2,998
At 31 July 2022
6,911
Net book values
At 31 July 2022
9,918
At 31 July 2021
11,157
12 Creditors:
amounts falling due within one year
2022
£
Other creditors
3,086
3,086		 Motor
Vehicle
£
18,716
-
18,716
18,226
164
18,390
326
490		 2021
£
2,762
1,050
2021
40,455
40,455
2021
Number
4
4
Total
£
33,786
1,759
35,545
22,139
3,162
25,301
10,244
11,647
2021
£
2,031
2,031

Page 21

The Khayaal Theatre Company Notes to the Accounts

13 Movement in funds

At 1 August
2021
Restricted funds:
Restricted income funds:
Amal - Said Foundation
431
Total
431
Unrestricted funds:
General funds
59,170
Total funds
59,601
Purposes and restrictions in relation to the funds:
Restricted funds:
Amal - Said Foundation
14 Analysis of net assets between funds
Fixed assets
Net current assets
15 Reconciliation of net debt
Cash and cash equivalents
Net debt		 Incoming
resources
(including
other
gains/losses)
£
18,333
18,333
158,422
176,755		 Resources
expended
£
(10,029)
(10,029)
(126,592)
(136,620)		 At 31 July
2022
£
8,736
8,736
91,001
99,736
Unrestricted
funds
£
9,922
89,492
99,414
At 1 August
2021
£		 Restricted
funds
£
322
-
322
Cash flows
£		 Total
£
10,244
89,492
99,736
At 31 July
2022
£
49,985 42,593 92,578
49,985
49,985		 42,593
42,593		 92,578
92,578
16 Related party disclosures
Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 22

The Khayaal Theatre Company Detailed Statement of Financial Activities

for the year ended 31 July 2022

Income and endowments from:
Donations and legacies
Donations
Fees receivable
Friends' subscriptions
Charitable activities
Grants
Investments
Interest income
Other
Gift Aid
JRS Grant
Total income and endowments
Expenditure on:
Employee costs
Salaries/wages
Staff training
Motor and travel costs
Travel and subsistence
General administrative costs,
including depreciation and
amortisation
Depreciation of Plant & Machiney
Depreciation of Motor Vehicle
Equipment expensed
Equipment leasing and hire
charges
General insurances
Information and publications
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Venue hire		 Unrestricte
d funds
2022
£
8,244
26,563
2,125
36,932
111,250
111,250
31
31
7,760
2,449
10,209
158,422
40,544
-
40,544
16,416
16,416
2,890
164
950
1,795
1,579
1,477
4,641
279
1,077
1,055
32,817		 Restricted
funds
2022
£
-
-
-
-
18,333
18,333
-
-
-
-
-
18,333
3,399
58
3,457
656
656
108
-
116
1,428
155
121
-
-
232
68
1,737		 Total funds
2022
£
8,244
26,563
2,125
36,932
129,583
129,583
31
31
7,760
2,449
10,209
176,755
43,942
58
44,000
17,072
17,072
2,998
164
1,066
3,223
1,733
1,597
4,641
279
1,308
1,122
34,554		 Total funds
2021
£
13,227
10,790
1,740
25,757
138,015
138,015
-
-
-
-
-
163,772
40,455
116
40,571
7,659
7,659
2,598
164
9,036
1,388
2,149
1,877
9,538
884
1,765
1,915
34,835

Page 23

The Khayaal Theatre Company Detailed Statement of Financial Activities

Legal and professional costs
Audit/Independent examination
fees
Consultancy fees
Other legal and professional
costs
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net income
Net income before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 48,722
1,322
12,570
7,018
20,910
126,592
126,592
-
31,831
31,831
-
31,831
59,170
91,001		 3,963
58
1,895
-
1,953
10,029
10,029
-
8,305
8,305
-
8,305
431
8,736		 52,685
1,380
14,465
7,018
22,863
136,620
136,620
-
40,135
40,135
-
40,135
59,601
99,736		 66,149
1,050
40,442
100
41,592
155,971
155,971
-
7,801
7,801
-
7,801
51,800
59,601

Page 24