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2023-07-31-accounts

The Khayaal Theatre Company

Charity No. 1100005

Company No. 03597083

Trustees' Report and Unaudited Accounts

31 July 2023

The Khayaal Theatre Company Contents

Pages
Trustees' Annual Report 2 to 13
Independent Examiner's Report 14
Statement of Financial Activities 15
Summary Income and Expenditure Account 16
Balance Sheet 17
Statement of Cash flows 18
Notes to the Accounts 19 to 25
Detailed Statement of Financial Activities 26 to 27

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 2023.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 03597083

Charity No. 1100005

Registered Office

Flat 2 Primrose Close Luton LU3 1EU

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 the national touring of on-demand, small scale and high-quality stage performances delivered under its Theatre-without-Walls programme; running drama academies; devising and running theatre-in-education programmes; prospecting for and developing artistic talent; publishing children’s books; training; advocacy and consultancy.

Page 2

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE

Theatre-without-Walls Programme

We were fortunate to complete our transition back to normal physical touring of Theatre-without-Walls offerings after the pandemic by October 2022 with the support of the DCMS/Arts Council England Cultural Recovery Fund through the first round of Emergency Resource Support (ERS). Thereafter, we went on to have an incredibly busy year serving the cultural and educational needs of our ever-expanding national network of over 300 multi-sector partners.

Over the period August-December 2022, we delivered 3 online performance events and 21 physical touring events nationally comprising 29 performances and workshops benefitting diverse and intergenerational audiences numbering 3500 people working with 25 mostly new partners (64%) across five sectors (academia, community, culture, faith/interfaith, and education).

The highlights of this period included a performance of a popular collection of Commonwealth Tales drawn from the heritages of Muslim majority countries in the Commonwealth for the Birmingham Commonwealth Games 2022 in August in Ward End Park in partnership with OPUS and Victoria Productions and a sell-out performance of Muslim Nativity in December in Smethwick in partnership with The Abrahamic Foundation.

“Salaams! Saw these guys in Ward End yesterday thought they were fab! https://www.khayaal.co.uk” – Zoya (Twitter/X) from Civic Square on Commonwealth Tales

"Lady was very good at telling the story 'The Sultan & The Robbers’. I am 30 - and even I was glued! MashaAllah. ?" – Audience Comment on Commonwealth Tales

“…From myself and on behalf of the rest of the staff at the Abrahamic Foundation we want to say a big thanks to you and sister Eleanor for the wonderful performance yesterday. Really and truly captivating, we have received a lot of positive reviews from the parents and children Alhamdulillah. We are looking forward to see Khayaal theatre deliver another performance in the near future In'shaa'Allah…” – Imam Adhem on Muslim Nativity

Other partners over this five-month (Aug-Dec ’22) period included Warwick Islamic Education Summer School, Warwick University; Culturama at Rich Mix, London; Young Muslim Writers Awards, Senate House, London; London Borough of Newham; Al-Eman Centre, Bromley; Al-Bayyinah, St Albans; Salaam Centre, Harrow; Islamic College of Advanced Studies, Brent; The Hubb, Gloucester; Al-Khoei Foundation, Brent; Tramshed Woolwich and Greenwich Inclusion Project.

“This was wonderful, moving, a real treat for me and my three wee ones as we are resident in Madinah. Please let us know if you are planning any trips to the Hijaz. It would be wonderful to organise an event in the sacred city!” – Audience comment on ‘Flight to Abyssinia’ at The Hubb, Gloucester, 17 Sep 2022

“…As soon as Eleanor Martin walked out, she took control of the floor, getting the kids moving and then they surrounded her enthralled as she told them, and involved them in, wisdom tales from across the Muslim world. My 3, who said they didn't want to participate at the start frantically waved their hands to join in and loved every minute." – Susan Baig (Instagram) on Tales from Muslim Heritage, Al-Khoei Foundation, 23 Dec 2022

“…I am stunned as well. It is masterful, every aspect from Eleanor’s performance to the video work, the lighting, everything. I feel so grateful and so inspired …” – Maryam Sinclair on Muslim Nativity online with Al-Manaar, 13 Dec 2022

Page 3

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

We began 2023 working in pioneering mode to found the first of its kind multidisciplinary Muslim Artists Academy in partnership with Alchemy Arts and Contact Theatre in Manchester supported by Arts Council England. The lead partner, Alchemy Arts, was founded and is led by Adil Mohammed Javed, a Khayaal alumnus whose cultural leadership potential we prospected for, mentored and developed over the 5-year period 2006-11 while he worked as lead actor on our Salaam and Hearts & Minds productions. After the launch of the Academy’s theatre strand on 20th Jan 2023 featuring a keynote presentation by Khayaal CEO, Luqman Ali, Khayaal’s directors, Luqman Ali, Mohammed Sesay and Eleanor Martin facilitated 6 weekly 3 hour workshops from 21 Jan – 25 Feb 2023 for primarily young Muslims aspiring to careers in theatre. Over the 6 weeks, participants benefitted from an introduction to basic drama skills, gained an understanding of centuries old Muslim theatre traditions, explored the artistic and production principles underpinning Khayaal’s innovative Theatre-without-Walls programme, learned about the British theatre sector and experimented with our page to stage literary interpretation processes.

“I’ve been busy applying the skills I am learning at the Theatre workshop. Today as part of storytelling week we did the one-word story and built to paragraphs. It was incredible watching how creative 30 young adults were and they took real ownership. They want to film and write book on it next! Boys turned astronautsuperhero Vicky- a mother who is a dinosaur and spaceship/ submarine! It’s going to be legendary. Thank you @khayaaltheatre!” – Muslim Artists Academy Theatre Strand Participant, Jan 2023

We continued through the rest of our financial year as we had begun covering new ground in terms of extending our reach to new partners, audiences and geographic localities as well as developing new content for both performances and workshops. Like in 2021-22, we worked virtually again with an international academic partner in the University of Stuttgart contributing a performance of ‘The Artists’, an adaptation of an iconic story by Jalaluddin Rumi to a conference titled "Art, Aesthetics and Islamic Mysticism: Contemporary Perspectives” on the 30th March. As a result of the impact of our contribution, we were invited to contribute to the publication of an edited volume by Palgrave Macmillan. Unfortunately, due to the demands of our intensive and extensive touring schedule, we were not able to do so.

"Thank you very much for your amazing presentation! It was so inspiring!" – Sara Keuhn, Conference Convenor, University of Vienna (email), 4th Apr '23

Over the course of the seven-month period spanning January-July 2023, we delivered 1 online performance event and 32 physical touring events nationally comprising 57 performances and workshops benefitting diverse and intergenerational audiences numbering 4000 people working with 28 mostly new partners (67%) across seven sectors (academia, charity, community, corporate, culture, education and local government).

Highlights of this period include the sell-out debut of Tales till Ramadan in The Door Studio at Birmingham Rep in March, an oversubscribed event of performances of Eid Tales at Norton Rose Fulbright in London, a hugely successful Ramadan themed performance and conversation engagement at University College Junior School in Hampstead and our tour of Multifaith Stories to 6 primary schools in Finchley and Luton.

"The actress made me feel like all the other characters were there, and I want to do that when I'm older. From memorizing all the lines and rehearsing with imagination, this was the most amazing show ever! I am so inspired." – Asma on Tales till Ramadan at Birmingham Rep

"A pilgrimage into imagination, heart and soul. Thank you.” – Audience comment on Tales till Ramadan at Birmingham Rep

"A wonderful Eid get together hosted by Norton Rose Fulbright's Compass Network with a spellbinding performance by The Khayaal Theatre Company." – Cube Network post on Linked-In 2023Jun02

Page 4

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

"On Tuesday, the Khayaal Theatre Company visited to celebrate the holy month of Ramadan. In many ways, I wish that our photographer could have been stationed the other way around to capture the faces of the boys as they listened to the stories. I have rarely seen pupils so enraptured and spellbound, which is a timely testament to the raw power of charismatic storytelling put on by an expert performer." – Head of University College Junior School

"All of our schools were privileged this week to receive a visit from the wonderful Khayaal Theatre, who performed a series of multi-faith stories, exploring key values that exist within different faiths. The collection of 4 tales hailed from Hinduism, Judaism, Christianity and Islam, and encouraged the children to show these values in their day-to-day lives, treating others with respect, fairness, love and empathy. A wonderful experience for the pupils involved!” – Pioneer Learning Trust

Other partners over this period were Wardown 9th Scouts, Luton; Manor Side PS, Finchley; Luton Grappling Club; KSIMC London; Islamia Secondary Girls School, London; Tudor PS, Finchley; Oakwood PS, Luton; Advance Charity, London; Luton Borough Council; University of Bedfordshire; Imam Ali Reza Centre, Chelmsford; Someries PS, Luton; Sacred Heart PS, Luton; Ramridge PS, Luton; St Margaret of Scotland PS, Luton; The Hub, Solihull; Stockwood Park Academy, Luton; Khidmah Community Centre, Slough; Standing Advisory Committee on Religious Education, Luton; Luton Council of Faiths; The Yellow, Wembley and Preston Park School, London.

Theatre-without-Walls

2022-2023 Facts & Figures

Physical Output

Events: 53 (49 in 21-22) Physical Performances & Workshops (units): 86 (79 in 21-22) Multi-Sector Host Partners: 53 (44 in 21-22) Local Authorities Reached: 24 (25 in 21-22) Live Audiences/Beneficiaries: 7,500 (28% of potential audience based on logged demand) Average Lead Time (from booking to delivery): 7 weeks

Sectors: Education, Academia, Culture, Community, Corporate, Charity, Local Government, Faith/Interfaith Requests Logged: 130 (146 in 21-22)

New Partners/Requests: 91 (84 in 21-22) Repeat Partners/Requests: 39 Estimated Potential Physical Audience: 26,000

Artists & Staff (core and freelance): 15

Zahra Afsah, Kat Ali, Luqman Ali, Mohammed Ali, Yusef Ali, Thomas Gray, Amina Koroma, Eleanor Martin, Jumana Moon, Abdullah Mufa, Serena Slack-Robins, Mohammed Sesay, Abbas Shah, Maryam Shaharuddin and Greta Zabulyte (73% from racialised/minoritised communities)

Digital Output

(1)

Hosted Online Performances:4

Multi-Sector Host Partners: 3

Countries Reached: UK, USA, South Africa, Canada, Turkey, Germany, Spain and beyond Digital Audiences/Beneficiaries: 250

Sectors: Academic, Education, Faith/Interfaith and Culture

Page 5

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

Digital Output - cont'd

(2)

Digital Content Offerings (Films and Audio): 14

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

Digital Audiences/Beneficiaries: 50K minimum

Project offerings in order of quantity delivered:

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

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

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

Storytelling Theatre Performances

Total of 126 minutes of new offerings

power and influence of the written word to effect positive change in society and the joy of learning, this workshop is designed to boost the enthusiasm and aspiration of children for learning and civic engagement.

"Today, the mesmerising @KhayaalTheatre visited to give our Year 2s an inspiring workshop centred on the remarkable Malala's Magic Pencil book. The children were

captivated and used their 'magic pencils' to draw what they think would make the world a better place." – Chantry PA on Twitter 07 Sep 22

Drama and Storytelling Training Workshops

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The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

• House of Wisdom post-performance workshop for Year 7 secondary school pupils for Stockwood Park Academy, Luton, 1hr

Total of 20 hours 40 minutes of new offerings

Drama Academies Project

Khayaal invested ground-breaking conceptual, pedagogical and dramaturgical creativity in laying the foundations for the development of a culturally sensitive and affirmative drama academy curriculum that brings together character virtues, Muslim heritage stories and drama education for especially Muslim children spanning the ages of 3-16 with the support of the National Lottery Community Fund through the months May-September 2022.

We continued delivery of a monthly drama academy for children each comprising 3 workshops for children aged 3-5, 5-7 and 8-14 respectively at CQC on Radegund Road, Cambridge for the second full year with the support of the Safera Foundation. Over this reporting term, we delivered 8 sessions benefitting 35 children and 20 families.

We launched continuous fortnightly drama training provision for children aged 5-7 and 8-11 on Saturday 22nd October 2022 at Friends Meeting House, Crawley Green Road, Luton with the support of Bedfordshire and Luton Community Foundation’s Community Recovery Fund. By the end of this reporting period, we had delivered 16 sessions each comprising 2 age specific workshops for 5-7s and 8-11s respectively benefitting 16 children and 12 families.

We developed the plans for our third drama academy location in New Malden, SW London for Muslim children of Turkish heritage in collaboration with members of the Turkish community across the Kingston, Morden, and New Malden areas. The launch of the initially monthly academy was scheduled for October 2023 to take place at the Shiraz Mirza Community Hall.

“Participating in the Khayaal Drama Academy was a transformational experience for our daughter, enabling her to use her imagination and express herself in a way she had never done before. It was wonderful to see her grow in confidence and develop a curiosity and interest in Muslim heritage, cultures and values. She left each session inspired to learn and share stories, and to think carefully about what lessons they could teach us. She built many friendships and looked forward to each session excitedly. We can’t endorse it highly enough. Thank you to the brilliant team.” – Dr Ahmed Rashid 26 Mar 2024

Drama Academies

2022-2023 Facts & Figures

2 Locations 24 Session Days 58 Workshops Developed and Delivered 51 Participant Children

32 Beneficiary Families

Page 7

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

Developments in the Wider Work of Khayaal 2022-2023

• Luqman Ali, our CEO & Artistic Director, advanced the cultural and artistic advocacy of Khayaal in its hometown of Luton by giving a presentation at Luton Borough Council’s Luton 2040 Conference on Theatre: A Global Magnet for Inward Investment on 25th January 2023. 100 civic and community leaders at the Luton 2040 conference were afforded the opportunity of learning about the cultural capital and intelligence that Khayaal has accrued as Luton’s oldest professional theatre company and the global appeal of its expertise in Muslim heritage interpretation that has the potential to attract exponentially more investment into Luton over the coming decade, especially from the global ‘halal’ market that is projected to grow to $11.2 trillion by 2028. As a result of the insights and learning gained by Luton Borough Council, we have been expressly assured by Jane Malcolm at LBC that Khayaal is now being factored into the Luton 2040 plan and will be extended every possible support to fulfil its potential.ACHIEVEMENTS AND PERFORMANCE - cont'd

"Thanks so much for taking time out to present, Luqman. It was great to see so many people engaged in that room both when you spoke and later in the afternoon. Shows the appetite there is for change." – Luke Dwyer, LBC by email on 30 Jan '23

• Luqman Ali advanced the cultural and artistic advocacy of Khayaal in an article for the Summer 2023 edition of the sector popular RE Today Magazine titled ‘What is Worth Celebrating’ reflecting on the way in which communities seek Khayaal out to help them capture and preserve the meanings and values of especially but not solely the celebrations of the two Eid Festivals.

• Luqman Ali advanced the cultural and artistic advocacy of Khayaal in Luton by giving a keynote multimedia presentation at the University of Bedfordshire’s Arts & Culture Heritage Fund Project Symposium event to mark the achievements of the Heritage Impact Accelerator and Heritage Enterprise Hub funded by the National Lottery Heritage Fund on 17th May 2023.

“@khayaaltheatre you guys are such a jewel of Luton - leading the way and at the forefront of literary heritage and cultural empowerment. Was wonderful hearing about all your work today x ” – raeleaverrahman (Instagram 17May23)

• Luqman Ali was invited by Windsor Leadership Trust to participate in the 2022 Strategic Leaders Consultation on 3rd and 4th November, its most senior and prestigious residential programme at St George’s House, Windsor Castle. The consultation was held under the Chatham House Rule, and enabled leaders at the highest level to debate the complex issues of leadership which will shape the future of their organisations and society. It brings together senior leaders from across all the sectors including military, government, corporate, faith, education and voluntary sectors.

• Luqman Ali and Eleanor Martin were invited to attend King Charles III Charitable Fund Summer Reception at St James’s Palace on 12 July 2023 after Khayaal successfully won the support of the Fund for its Theatre-without-Walls Programme earlier in the calendar year.

• Luqman Ali, 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.

• PhD student Serena Slack-Robins continued to 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. However, due to the impact of the pandemic, the term of the project has had to be extended to 2026.

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The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

Eleanor Martin was engaged to record the voiceover narration for Matmedia Production’s acclaimed film ‘ In Search of the Beloved ’ chronicling the story of the hijrah when the Prophet Muhammmad and his followers migrated from Mecca to Medina in February 2023. The film went on to feature at Bradford Literature Festival, The Islamic Arts Biennale in Jeddah, KSA and The King Abdulaziz Center for World Culture, Dhahran, KSA

• Khayaal initiated a new partnership with Sing Up in June to increase the number of songs from Muslim cultures in its Song Bank for the benefit of especially but not solely Muslim children in UK primary schools. This will include the composition of new songs as well as the sourcing of existing songs from Muslim artists in order to enrich the cultural lives of primary school pupils and contribute to intercultural understanding and conviviality

• 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 University of Warwick, University of Waikato, New Zealand; University of Munster, Germany; Kingston School of Art; Amsterdam University of the Arts; Goldsmith University and University of Oxford.

• We continued to leverage our expertise, experience and accrued cultural capital to provide development support, consultancy and advice to both emerging and experienced Muslim artists and arts organisations e.g. Mimar Collective, Birmingham; Alchemy Arts, Manchester; 786 Arts, Virginia, USA; Young Muslim Writers Awards, London; Qatar Foundation and seven individual artists in the UK, The Netherlands, Australia, Turkey, Egypt and the USA.

• We continued to advocate for justice and equity in the UK cultural sector for minoritized and racialised 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 Community Fund and London Borough of Richmond. 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.

Page 9

The Khayaal Theatre Company Trustees Annual Report

ACHIEVEMENTS AND PERFORMANCE - cont'd

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:

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.

• Over the past year 81% of those polled as part of our evaluation exercises rated their experience of our work as excellent or good. When asked to what extent they believe our work contributes to greater valuation and appreciation of literature, drama, storytelling and culture within Muslim communities 78% said either exceedingly or tremendously. When asked to what extent they believe our work contributes to greater interfaith and intercultural dialogue, engagement and understanding between communities based on this experience 76% said either exceedingly or tremendously.

FINANCIAL REVIEW

During the year under review the charity received unrestricted income of £81,402 (2022: £158,422) and restricted income of £20,000 (2022: £18,333) and had an expenditure of £113,243 (2022: £126,592) and £21,859 (2022: £10,029) for unrestricted and restricted respectively. At the Balance Sheet date the charity held unrestricted funds of £59,159 (2022: £91,001) and restricted funds of £6,877 (2022: £8,736) .

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 £23,400.

Page 10

The Khayaal Theatre Company Trustees Annual Report

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.

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.

Principal funding source

Over the year 2022-23, our funding came from a mix of sources as follows:

• 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

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The Khayaal Theatre Company Trustees Annual Report

• 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, administration, etc. have been quantified and valued monetarily as equivalent to at least 65% of cash turnover at £66K.

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.

• We will look to increase the frequency of our drama academies in Luton, Cambridge and SW London (New Malden) from fortnightly to weekly in the case of Luton and from monthly to fortnightly in the case of Cambridge and New Malden subject to feasibility and available resources. We will also look to launch our fourth location in NW London in response to growing demand.

• 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.

• We will work with new partner Outside Edge Theatre Company to apply our work to the improvement of mental health outcomes in the London boroughs of Newham and Tower Hamlets.

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The Khayaal Theatre Company Trustees Annual Report

• We will continue our work with 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 support the drama education and school theatre production programmes at three grant-aided Muslim primary schools in NW London, namely Barnet Hill Academy, Islamia Primary School and Harmony Primary School with workshops for teachers and students and dramaturgical support for ongoing rehearsals that will culminate in showcase performance events at the arts depot.

• We will initiate new partnerships with Landmark Theatres in Peterborough and The Curve in Slough in order to help support their cultural diversity and inclusion aspirations in relation to their local Muslim communities.

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 25 April 2024

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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 2023.

Responsibilities and basis of report

As the charity's trustees of the company (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:

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 25 April 2024

Page 14

The Khayaal Theatre Company Statement of Financial Activities

for the year ended 31 July 2023

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 (expenditure)/income
9
Transfers between funds
Net (expenditure)/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
2023
£
59,612
20,000
-
1,790		 Restricted
funds
2023
£
-
20,000
-
-		 Total funds
2023
£
59,612
40,000
-
1,790		 Total funds
2022
£
36,932
129,583
31
10,209
81,402
113,243		 20,000
21,859		 101,402
135,102		 176,755
136,620
113,243
-		 21,859
-		 135,102
-		 136,620
-
(31,841)
-		 (1,859)
-		 (33,700)
-		 40,135
-
(31,841) (1,859) (33,700) 40,135
(31,841)
91,000		 (1,859)
8,736		 (33,700)
99,736		 40,135
59,601
59,159 6,877 66,036 99,736

Page 15

The Khayaal Theatre Company Summary Income and Expenditure Account

for the year ended 31 July 2023

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 (expenditure)/income before tax
for the year
Net (expenditure )/income for the year		 2023
£
101,402
-
101,402
132,350
2,752
135,102
(33,700)
(33,700)		 2022
£
176,724
31
176,755
133,458
3,162
136,620
40,135
40,135

Page 16

The Khayaal Theatre Company Balance Sheet

at 31 July 2023

Company No.
03597083
Notes
2023
£
Fixed assets
Tangible assets
11
8,089
8,089
Current assets
Cash at bank and in hand
58,530
58,530
Creditors:Amount falling due within one year
12
(583)
Net current assets
57,947
Total assets less current liabilities
66,036
Net assets excluding pension asset or liability
66,036
Total net assets
66,036
The funds of the charity
Restricted funds
13
Restricted income funds
6,877
6,877
Unrestricted funds
13
General funds
59,159
59,159
Reserves
13
Total funds
66,036		 2022
£
10,246
10,246
92,578
92,578
(3,088)
89,490
99,736
99,736
99,736
8,736
8,736
91,000
91,000
99,736

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 2023 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 25 April 2024

And signed on its behalf by:

F. Qureshi Trustee 25 April 2024

Page 17

The Khayaal Theatre Company Statement of Cash flows for the year ended 31 July 2023

Cash flows from operating activities
Net (expenditure)/income per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
(Decrease)/Increase in trade and other payables
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Dividends, interest and rents from investments
Net cash from investing activities
Net cash from financing activities
Net (decrease)/increase 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		 2023
£
(33,700)
2,752
(1,790)
(2,505)
(35,243)
(595)
1,790
1,195
-
(34,048)
92,578
58,530
58,530
58,530		 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

Page 18

The Khayaal Theatre Company Notes to the Accounts

for the year ended 31 July 2023

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.

Fund accounting

Income

Page 19

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

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.

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.

Page 20

The Khayaal Theatre Company Notes to the Accounts

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

3 Statement of Financial Activities - prior year
Unrestricted Restricted
funds funds Total funds
2022 2022 2022
£ £ £
Income and endowments from:
Donations and legacies 36,932 - 36,932
Charitable activities 111,250 18,333 129,583
Investments 31 - 31
Other 10,209 - 10,209
Total 158,422 18,333 176,755
Expenditure on:
Other 126,592 10,029 136,620
Total 126,592 10,029 136,620
Net income 31,831 8,305 40,135
Net income before other
gains/(losses)		 31,831 8,305 40,135
Other gains and losses:
Net movement in funds 31,831 8,305 40,135
Reconciliation of funds:
Total funds brought forward 59,170 431 59,601
Total funds carried forward 91,001 8,736 99,736
4 Income from donations and legacies
Unrestricted Total Total
2023 2022
£ £ £
Donations 10,365 10,365 8,244
Fees receivable 47,012 47,012 26,563
Friends' subscriptions 2,235 2,235 2,125
59,612 59,612 36,932
5 Income from charitable activities
Unrestricted Restricted Total Total
2023 2022
£ £ £ £
Grants 20,000 20,000 40,000 129,583
20,000 20,000 40,000 129,583

Page 21

The Khayaal Theatre Company Notes to the Accounts

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
9
Net (expenditure)/income before
transfers
This is stated after charging:
Depreciation of owned fixed assets
Independent Examiner's fee
Other fees paid to the auditor or
independent examiner		 Unrestricted
£
22,408
17,558
2,644
47,297
23,336
113,243		 Unrestricted
£
1,790
-
1,790		 Total
2023
£
-
-
Total
2023
£
1,790
-
1,790		 Total
2022
£
31
31
Total
2022
£
7,760
2,449
10,209
Restricted
£
18,355
667
108
1,593
1,136
21,859
2023
£
2,752
600
-		 Total
2023
£
40,763
18,225
2,752
48,890
24,472
135,102		 Total
2022
£
44,000
17,072
3,162
14,969
22,863
102,066
2022
£
3,162
600
722

Page 22

The Khayaal Theatre Company Notes to the Accounts

10 Staff costs

10 Staff costs
2023 2022
Salaries and wages 40,458 43,942
40,458 43,942
No employee received emoluments in excess of £60,000.
The average monthly number of full time equivalent employees during the year was as follows:
2023 2022
Number Number
Administration and production 5 5
5 5
11 Tangible fixed assets
Plant &
Machiney		 Motor
Vehicle		 Total
£ £ £
Cost or revaluation
At 1 August 2022 16,829 18,716 35,545
Additions 595 - 595
At 31 July 2023 17,424 18,716 36,140
Depreciation and
impairment
At 1 August 2022 6,910 18,389 25,299
Depreciation charge for the 2,629 123 2,752
year
At 31 July 2023 9,539 18,512 28,051
Net book values
At 31 July 2023 7,885 204 8,089
At 31 July 2022 9,919 327 10,246
12 Creditors:
amounts falling due within one year
2023 2022
£ £
Other creditors 583 3,088
583 3,088

Page 23

The Khayaal Theatre Company Notes to the Accounts

13 Movement in funds

Restricted funds:
Restricted income funds:
Bedfordshire and Luton
Community Foundation
(BLCF) - Community Recovery
Fund Grant
Total
Unrestricted funds:
General funds
Total funds		 At 1 August
2022
8,736
8,736
91,000
99,736		 Incoming
resources
(including
other
gains/losses)
£
20,000
20,000
81,402
101,402		 Resources
expended
£
(21,859)
(21,859)
(113,243)
(135,102)		 At 31 July
2023
£
6,877
6,877
59,159
66,036

Purposes and restrictions in relation to the funds: Restricted funds: Bedfordshire and Luton BLCF Community Recovery Fund 2022-24 supports Khayaal 25 Luton Community Foundation (Drama Academy, Theatre without Walls and Multifaith Stories projects in (BLCF) - Community Recovery Luton). Fund Grant

14 Analysis of net assets between funds

Fixed assets
Net current assets
Reconciliation of net debt
Cash and cash equivalents
Net debt		 Unrestricted
funds
£
7,874
57,947
65,821
At 1 August
2022
£		 Restricted
funds
£
215
-
215
Cash flows
£		 Total
£
8,089
57,947
66,036
At 31 July
2023
£
92,578 (34,048) 58,530
92,578
92,578		 (34,048)
(34,048)		 58,530
58,530

15 Reconciliation of net debt

Page 24

The Khayaal Theatre Company Notes to the Accounts

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 25

The Khayaal Theatre Company Detailed Statement of Financial Activities

for the year ended 31 July 2023

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
Advertisement
Equipment leasing and hire
charges
General insurances
Refreshments
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Venue hire		 Unrestricted
funds
2023
£
10,365
47,012
2,235
59,612
20,000
20,000
-
-
1,790
-
1,790
81,402
22,408
-
22,408
17,558
17,558
2,521
123
106
708
1,870
2,051
3,357
254
1,591
1,104
36,256		 Restricted
funds
2023
£
-
-
-
-
20,000
20,000
-
-
-
-
-
20,000
18,050
305
18,355
667
667
108
-
1,180
413
-
-
-
-
-
-
-		 Total funds
2023
£
10,365
47,012
2,235
59,612
40,000
40,000
-
-
1,790
-
1,790
101,402
40,458
305
40,763
18,225
18,225
2,629
123
1,286
1,121
1,870
2,051
3,357
254
1,591
1,104
36,256		 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

Page 26

The Khayaal Theatre Company Detailed Statement of Financial Activities

Legal and professional costs
Audit/Independent examination
fees
Sub-contractors
Other legal and professional
costs
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net (expenditure)/income
Net (expenditure)/income before
other gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 49,941
600
6,576
16,160
23,336
113,243
113,243
-
(31,841)
(31,841)
-
(31,841)
91,000
59,159		 1,701
-
1,136
-
1,136
21,859
21,859
-
(1,859)
(1,859)
-
(1,859)
8,736
6,877		 51,642
600
7,712
16,160
24,472
135,102
135,102
-
(33,700)
(33,700)
-
(33,700)
99,736
66,036		 52,685
1,380
14,465
7,018
22,863
136,620
136,620
-
40,135
40,135
-
40,135
59,601
99,736

Page 27