2020-12-31-accounts

“

And spend for the cause of Allah, and cast not yourselves into ruin with your own hands, and do good; surely, Allah loves those who do good. (The Holy Quran Ch 2:196)

ANNUAL REPORT 31 DECEMBER 2020

Company Reg. No. 4785585 Reg. Charity No. 1102949

Contents

TRUSTEES AND ADVISORS 1 INTRODUCTION TO AHMADIYYA MUSLIM JAMAAT 2 INTRODUCTION TO HAZRAT MIRZA MASROOR AHMAD[(may Allah be his Helper) ] 3-4 TRUSTEES’ REPORT 5-18 STRATEGIC REPORT 19-20 STATEMENT OF TRUSTEES’ RESPONSIBILITIES 21 INDEPENDENT AUDITOR’S REPORT 22-25 STATEMENT OF FINANCIAL ACTIVITIES 26 BALANCE SHEET 27 STATEMENT OF CASH FLOW 28 NOTES TO THE FINANCIAL STATEMENTS 29-37

TRUSTEES AND ADVISORS

CHAIRMAN OF THE BOARD OF TRUSTEES

Hibatunnoer Lodewijk Verhangen

BOARD OF TRUSTEES

Mubarak Ahmad Zafar - (Chairman of the Finance Committee) Shajar Ahmad Farooqi FCA - Company Secretary (Secretary of the Finance Committee) Abdul Majid Tahir - (Member of the Finance Committee)

Munir-ud-Din Shams - (Member of the Finance Committee)

Naseer Ahmad Qamar Abdullah U Wagishauser Lal Khan Malik

Dr. Farooq Mahmood - appointed 27 January 2021

REGISTERED/ PRINCIPAL OFFICE

Tahir House, 22 Deer Park Road, London, SW19 3TL, United Kingdom

Telephone: [phone] Fax: [phone]

Email: [e-mail] Website: www.amjinternational.org

Registered Charity Number: 1102949 Company Registration Number: 4785585

AUDITOR

RSM UK Audit LLP

Chartered Accountants and Statutory Auditor Davidson House, The Forbury, Reading, RG1 3EU, United Kingdom

SOLICITORS

Farrer & Co LLP 66 Lincoln’s Inn Fields, London WC2A 3LH, United Kingdom

BANKERS

National Westminster Bank plc. 2nd Floor G3, 2 Cathedral Hill, Guildford, GU1 32R, United Kingdom

AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020 | 1

INTRODUCTION TO AHMADIYYA MUSLIM JAMAAT

The Ahmadiyya Muslim Jamaat is a dynamic, fast growing international revival movement within Islam. Founded in 1889, it spans 213 countries with membership exceeding tens of millions. Its current headquarters are in the United Kingdom.

Ahmadiyya Muslim Jamaat is the only Islamic organisation to believe that the long-awaited Messiah has come in the person of Mirza Ghulam Ahmad (as) (1835-1908) of Qadian. Ahmad (as) claimed to be the metaphorical second coming of Jesus (as) of Nazareth and the divine guide, whose advent was foretold by the Prophet of Islam, Muhammad (saw). Ahmadiyya Muslim Jamaat believes that God sent Ahmad (as), like Jesus (as), to end religious wars, condemn bloodshed and reinstitute morality, justice and peace. Ahmad’s (as) advent has brought about an unprecedented era of Islamic revival. He divested Islam of fanatical beliefs and practices by vigorously championing Islam’s true and essential teachings. He also recognised the noble teachings of the great religious founders and saints, including Zoroaster (as), Abraham (as), Moses (as), Jesus (as), Krishna (as), Buddha (as), Confucius (as), Lao Tzu and Guru Nanak, and explained how such teachings converged into the one true Islam.

Ahmadiyya Muslim Jamaat is the foremost Islamic organisation to reject terrorism in any form of categorically. Over a century ago, Ahmad (as) emphatically declared that an aggressive “jihad by the

sword” has no place in Islam. In its place, he taught his followers to wage a bloodless, intellectual “jihad of the pen” to defend Islam. To this end, Ahmad (as) penned over 80 books and tens of thousands of letters, delivered hundreds of lectures, and engaged in scores of public debates. His rigorous and rational defences of Islam unsettled conventional Muslim thinking. As part of its effort to revive Islam, Ahmadiyya Muslim Jamaat continues to spread Ahmad’s (as) teachings of moderation and restraint in the face of bitter opposition from parts of the Muslim world.

Similarly, it is the only Islamic organisation to endorse a separation of religion and state. Over a century ago, Ahmad (as) taught his followers to protect the sanctity of both religion and government by becoming righteous souls as well as loyal citizens. He cautioned against irrational interpretations of Qur’anic pronouncements and misapplications of Islamic law. He continually voiced his concerns over protecting the rights of God’s creatures.

Today, it continues to be an advocate for universal human rights and protections for religious and other minorities. It champions the empowerment and education of women. Its members are among the most law-abiding, educated, and engaged Muslims in the world.

Ahmadiyya Muslim Jamaat is the only Islamic organisation with a central spiritual leader. Over a century ago, Ahmad (as) reminded his followers of God’s promise to safeguard the message of Islam through khilafat (the spiritual institution of successorship to prophethood). It believes that only spiritual successorship can uphold the true values of Islam and unite humanity. Five spiritual leaders have succeeded Ahmad (as) since his demise in 1908. Its fifth and current spiritual head, Mirza Masroor Ahmad, resides in the United Kingdom. Under the leadership of its spiritual successors, Ahmadiyya Muslim Jamaat has now built over 16,000 mosques, 714 schools, and over 41 hospitals and clinics. It has translated the Holy Qur’an into 74 languages. It propagates the true teachings of Islam and the message of peace and tolerance through a twenty-four-hour satellite television channel (MTA), the Internet and print media. It has been at the forefront of worldwide disaster relief through providing grants to an independent charitable organisations like Humanity First.

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INTRODUCTION TO HAZRAT MIRZA MASROOR AHMAD[(MAY ALLAH BE HIS HELPER)]

His Holiness, Hazrat Mirza Masroor Ahmad (Mir-za Mas-roor Ah-mad), is the fifth Khalifa (Caliph) of the Ahmadiyya Muslim Community. Elected to this lifelong position on 22 April 2003, he serves as the worldwide spiritual leader of an international religious community with tens of millions of members spread across more than 213 countries.

Peace Initiatives

His Holiness is the world’s leading Muslim figure promoting peace and interreligious harmony. Through his sermons, lectures, books, and personal meetings, His Holiness has continuously advocated the worship of God Almighty and serving humanity. He also continuously advocates the establishment of universal human rights, a just society and separation of religion and state. Since being elected Khalifa, His Holiness has led a worldwide campaign to convey the peaceful message of Islam through all forms of print and digital media. Under his leadership, national branches of the Ahmadiyya Muslim Community have launched campaigns that reflect the true and peaceful teachings of Islam. Ahmadi Muslims all over the world are engaged in grassroots efforts to distribute millions of ‘Peace’ leaflets to Muslims and non-Muslims alike, host interfaith and peace symposia, and present exhibitions of The Holy Qur’an to present its true and noble message. These campaigns have received worldwide media coverage and demonstrate that Islam champions peace, loyalty to one’s country of residence and service to humanity.

In 2004, His Holiness launched the annual National Peace Symposium in which guests from all walks of life come together to exchange ideas on the promotion of peace and harmony. Every year, the symposium attracts many serving ministers, parliamentarians, politicians, religious leaders and other dignitaries. In 2009, His Holiness also launched the annual ‘Ahmadiyya Muslim Prize for the Advancement of Peace’: an international peace award for individuals or organisations that have demonstrated an extraordinary commitment and service to the cause of peace and humanitarianism.

Communication with Ahmadi Muslims

His Holiness receives thousands of letters every day from Ahmadi Muslims worldwide, seeking his guidance and prayers. As well as responding to all such letters, His Holiness meets with individual members of the Community, on a daily basis. Every week, His Holiness delivers a Friday Sermon in which he addresses all members of the Ahmadiyya Muslim Community worldwide. The sermon is broadcast globally live on MTA International an Ahmadi Muslim satellite television station established in 1992, and translated into various languages. His Holiness uses his sermons to counsel Ahmadi Muslims about various issues of importance.

Response to Persecution

Following his election in 2003, His Holiness was forced into exile from Pakistan, his native country. Pakistan’s Constitution and Penal Code restrict members of the Ahmadiyya Muslim Community from practising or associating with Islam, or from even identifying themselves as Muslims. Violations of these repressive laws result in fines, imprisonment, and potentially capital punishment. Consequently, the legislation prevents His Holiness from fulfilling his duties as Head of the Community and accordingly, he is unable to return to Pakistan. Despite the continued sectarian persecution that Ahmadi Muslims are subjected to in various Muslim majority nations, His Holiness expressly forbids any violence. On 28 May 2010, anti-Ahmadiyya terrorists attacked two mosques belonging to the Ahmadiyya Muslim Community in Lahore, Pakistan. 86 Ahmadi Muslims were martyred during their Friday Prayers, whilst scores more were injured. Despite the barbaric nature of this pre-meditated crime against humanity, His Holiness instructed Ahmadi Muslims worldwide to respond only through prayers and entirely peaceful means.

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INTRODUCTION TO HAZRAT MIRZA MASROOR AHMAD[(MAY ALLAH BE HIS HELPER)]

PERSONAL BIOGRAPHY

His Holiness was born on 15 September 1950 in Rabwah, Pakistan, to the late Mirza Mansoor Ahmad and the late Nasira Begum Ahmad. Upon completing his Master’s Degree in Agricultural Economics in 1977 from the Agriculture University in Faisalabad, Pakistan, His Holiness formally dedicated his life to the service of Islam. From 1977 to 1985, His Holiness served in Ghana, engaged in social, educational and agricultural development projects. He is credited with successfully growing wheat on Ghanaian soil for the first time in the nation’s history. His Holiness returned to Pakistan in 1985 and served in various senior administrative posts within the Community during the next 18 years, including as Chief Executive of the Ahmadiyya Muslim Community in Pakistan from 1997 until his election as Khalifa. His Holiness resides in London, England, with his wife, Amtul Sabooh Ahmad. He has two children and five grandchildren. His hobbies include gardening, reading, photography and walking. As the spiritual leader of Ahmadi Muslims all over the world, he vigorously champions the cause of Islam through a refreshing message of peace and compassion.

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TRUSTEES’ REPORT

The trustees are pleased to present their report together with the financial statements of the Charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019.

AMJ International is a charitable company limited by guarantee. Under the terms of the guarantee, each member has agreed to contribute £1 in the event that the Charity is wound up.

OUR RESPONSIBILITIES

“ Hazrat Mirza Ghulam Ahmad, the Promised Messiah and Founder of the Ahmadiyya Muslim Jamaat said in AI-Wasiyyat (The Will):

Do not think that this is all fancy. This is the decree of Allah the Almighty, the Ruler of the earth and the heavens. I am not worried over how all this property will be collected and how a community will grow up to accomplish all this in the strength of its faith. What I do worry about is lest, after our time, those who are put in charge of these funds should be tempted by their volume and should yield to such temptation and incline towards the world. So I pray that God may continue to provide this Movement with honest and faithful workers who should work for the sake of God, though it would be permissible that in the case of those who have no other means of subsistence, an allowance may be made out of these funds.

O B J E C T I V E S A N D A C T I V I T I E S

OUR OBJECTIVES

The objects for which the Charity is established are:

• the advancement of the Muslim faith worldwide as expounded by Hazrat Mirza Ghulam Ahmad of Qadian, the Promised Messiah and the Founder of the Ahmadiyya Movement and interpreted by his successor known as Khalifatul Masih. The present Khalifatul Masih is Hazrat Mirza Masroor Ahmad Khalifatul Masih V[(May Allah be his Helper)] ;

• to promote generally an understanding of the moral and spiritual values propounded by Islam;

• to do and promote charity and to promote and advance the welfare and well being of people at large;

• to advance religious and secular education;

• to relieve poverty and sickness and the suffering of those affected, amongst others, by disease, natural disaster, war and other conflicts; and

• to promote the advancement of scientific research and learning.

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TRUSTEES’ REPORT

ACTIVITIES AND PERFORMANCE

Our activities are as follows:

• the propagation of Islam worldwide;

• the building of mosques, hospitals and schools;

• scientific research and development;

• the award of scholarships for higher education;

• the provision of emergency relief in cases of natural disasters; and

• assistance to the deserving and needy.

During the year, the highlights of our performance are as follows:

The propagation of Islam worldwide

• Jamaats have been established across the globe in 213 countries of the world.

• The message of Ahmadiyyat reached 1,040 new places.

• In terms of establishing new Jamaats in various areas, Sierra Leone was at the top of the list where established new Jamaat were 40; Congo-Kinshasa, where established new Jamaat were 31, followed by Ghana, where established new Jamaat were 23.

• There were 4,256,659 publications this year in 93 countries.

• Sent more than 190,000 books in 24 languages to different countries.

• 407 various pamphlets, leaflets and literature in 42 different languages were published.

• 360,240 books were printed in the UK.

• 7,540 Quran exhibitions and shows that were held contacted 343,000 individuals

• With the addition of 2 new radio stations during the previous year, there are 27 radio stations of the Jamaat around the world.

• MTA had increased its channels from 5 to 8 in the past year and regularly translated its broadcast into 10 languages.

The building of mosques, hospitals and schools

• 217 new mosques were established; 93 existing mosques became new Ahmadi mosques, while 124 were newly constructed mosques.

• The first Ahmadiyya mosque in Mexico has been established – Baitul Afiyat

• The first Ahmadiyya mosque in Malawi was built.

• 97 new mission houses have been built this year.

• 519 regional and central libraries have been established.

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TRUSTEES’ REPORT

Scientific research and development

• Investigate and provide renewable energy solutions to remote parts of Africa.

• IAAAE is also providing clean potable drinking water to remote parts of Africa

• IAAAE had installed 2,800 water facilities providing benefits to 250,000 people.

• IAAAE had also established 19 model village projects in nine countries and worked on various other humanitarian projects.

The award of scholarships for higher education

• During the year, 7,354 students were awarded scholarships.

• We now have 685 schools in 12 countries.

The provision of emergency relief in cases of natural disasters

• Although Humanity First is an independent charity, members of AMJ provide them with human resources and financial aid. A lot of their projects and disaster aid schemes are funded by AMJ.

• Humanity First (HF) started formally as a registered charity in 1994 in the UK. Since its inception, HF has responded to several disasters and served hundreds of thousands of victims in various affected communities. Soon, the organization’s scope of operations expanded beyond disaster relief to several sustainable human development projects and initiatives around the world.

• Humanity First is registered in 54 countries across 6 continents and has been working on human development projects and responding to disasters since 1994. These have included the earthquakes in Turkey, Pakistan, Japan and Iran, floods in Africa and Latin America, storms and tsunamis in the USA, Indonesia and Bangladesh and conflicts in Eastern Europe. Over 80% of donated funds are spent directly on aid projects, with the majority of our labour, including skilled engineers and clinicians being volunteers along with preferential rates for materials benefiting from global sourcing.

Assistance to the deserving and needy

• Patients are receiving various free operations, especially eye operations. To date, 15,315 free operations have been conducted in total.

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TRUSTEES’ REPORT

PUBLIC BENEFIT

The trustees have taken The Charity Commission’s general guidance on public benefit (contained within their guidance publication “Charities and Public Benefit”), and the specific guidance on public benefit into consideration in preparing their statement on public benefit contained within this trustees’ annual report.

Trustees’ Assessment of Public Benefit, Benefits & Beneficiaries

The primary beneficiaries of the charity are those that are set out in this report. The trustees’ assessment of public benefit is therefore based upon the actual performance reported for the year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Corporate Governance

The governing body of AMJ International is the Board of Trustees, which comprises seven members. The Board meets formally at least four times a year, but the trustees meet informally on many occasions throughout the year.

The Board has formally established a sub-committee, “The Finance Committee”, with specific terms of reference and responsibilities delegated by the Board. This Committee is charged with the day-to-day financial matters of the Charity. The Committee also prepares the annual Income and Expenditure budget for the approval of the Board.

Method of Recruitment and Appointment of Trustees

Potential Board members are selected from the worldwide Ahmadiyya Muslim Community. The existing Board then considers its existing skill and experience requirements to ensure that potential trustees are recruited to maintain a balanced range of professional, academic and necessary skills and experience.

The induction process for any newly-appointed trustee comprises an initial meeting with the trustees, followed by a review of the grant-making process, powers and responsibilities of the Board and the role of the Finance Committee. Information supplied as part of the introduction process includes copies of the latest Board and Finance Committee minutes, a copy of the latest Annual Report and financial statements, a copy of the Memorandum and Articles of Association and a copy of the Charity Commission’s guidance “The Essential Trustee: What you need to know”. On an ongoing basis, trustees are encouraged to attend seminars and conferences about sector issues and matters relevant to the Charity.

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TRUSTEES’ REPORT

FINANCIAL REVIEW

Financial results of activities and events

At present, any excess of income over expenditure is retained as unrestricted funds unless received as part of a

specific appeal.

The balance on undesignated reserves as at 31 December 2020 is £15.41 million (31 December 2019 is £2.63 million). Additionally, the trustees have retained the social investment reserve (designated reserves) of £33.09 million (31 December 2019, £29.52 million).

It continues to be the trustees’ policy to establish a level of reserves sufficient to enable the Charity to operate as a going concern. The trustees are of the opinion that the Charity has adequate reserves to cover one year’s worth of core costs and to fund existing projects worldwide.

The result this year has been an increase in total reserves to £48.50 million at 31 December 2020 (31 December 2019, £32.15 million). This current level of unrestricted reserves represents approximately one year worth of grants payable.

Going concern

The trustees have reviewed the financial forecasts for the Charity and have in particular considered its anticipated income and expenditure commitments for atleast a period of twelve months from the date of approval of the financial statements. The trustees believe that the Charity has adequate resources to continue in operational existence for at least the next twelve months and to meet all of its liabilities during that period as they fall due. For that reason, the trustees continue to adopt the going concern basis in preparing the financial statements.

Income £ 48.48m (2019 £ 38.91m)

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2020 2019
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Institutional Grants Others
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TRUSTEES’ REPORT

FINANCIAL REVIEW

Grant Paid For Charitable Expenditure

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2020 2019
8% 7%
9%
11%
15%
£23.64m 68% £29.94m 69%
13%
Activity 1 Activity 2 Activity 3-5 Activity 6
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Grant Paid For Charitable Expenditure

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2020 2019
17%
19%
15%
£0.64m 68% £1.23m 68%
13%
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Activity 1

Activity 2

Activity 3-6

Activities:

1. Propagation of Islam worldwide

2. Building of Mosques, Hospitals & Schools

3. Scientific Research & Development

4. Scholarships for Higher Education

5. Emergency Relief - Natural Disasters

6. Assistance to deserving and needy

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TRUSTEES’ REPORT

Reserves policy

The trustees believe that in the long term, the Charity ought to maintain free reserves at a level of 10% anticipated budgeted expenditure for the following year, in order to maintain the on-going running cost of the Charity for at least six months whilst suitable funding is secured for future grantmaking. Free Reserves are currently £15.45 million, which meets the target of at least 10% of the anticipated budgeted expenditure.

Investments

The Finance Committee takes investment decisions. Surplus cash is invested in money market accounts from overnight to one-year fixed. Over the coming year, investment policies will be developed by the Finance Committee and submitted to the Board of Trustees before implementation.

Grants

AMJ International is an umbrella organisation that receives worldwide funding from the Ahmadiyya Muslim Communities. The trustees then award grants to other charities with similar objectives and the Ahmadiyya Muslim communities in the UK and overseas, where they are most needed, having first been assessed by the trustees on a case-by-case basis. As a result, grants are made to institutions and individuals to ensure that work is done on all our objectives throughout the period.

The grant application process is designed to be as easy as possible whilst still drawing out the key information needed for a decision.

Grant priorities and selection criteria

The trustees are particularly interested in:

• the propagation of Islam worldwide;

• the building of mosques, hospitals and schools;

• scientific research and development;

• the award of scholarships for higher education;

• the provision of emergency relief in cases of natural disasters; and

• assistance to the deserving and needy.

The above priorities have been established since the formation of the Charity. Whilst they are reviewed each year, they are unlikely to change radically in the foreseeable future.

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TRUSTEES’ REPORT

SOCIAL INVESTMENT

Islamabad Development Project

The Islamabad site in Tilford, Surrey initially contained an all-inclusive school, which was set up during the Second World War for evacuees and was, in the end, shut down in July 1977. The land was acquired by the Ahmadiyya Muslim Association (AMA) in 1984.

The existing structures were in an incredibly poor state of fix and were a long way from being classed as “fit for purpose”. Ecologically they failed to perform and were in an urgent need of substitution.

The development provides new purpose-built educational, office, religious and residential spaces on the footprint of the existing buildings. Replacing the existing with highly sustainable modern structures that have been appropriately designed for this context and perform exceptionally in terms of environmental and energy-efficient criteria.

The development offers increased flexibility of space and benefits from proper levels of natural daylighting and natural ventilation with views out onto ‘green’ amenity spaces externally.

The existing prayer space has been replaced with a purpose-built Mosque named “Mubarak Mosque (The Blessed Mosque)”. The current catering facilities and dining hall have additionally been replaced by a multi-purpose hall (Masroor Hall) in a more convenient location, shielded from external views by existing tree and landscape cover. The dining hall and assembly space benefit from a ‘green roof’ to help blend it visually into the green belt.

In planning, design and construction, it had been kept in consideration that the site would retain its natural residential and operational areas, with all buildings forming a “campus environment” similar to a school or university. Buildings have been constructed using a modern vernacular and cladding with composite timber to help them blend into its woodland context.

Development works were in two stages.

A contract was granted for the Phase-1 work to Beard Construction Limited. Stage 1 began in October 2016 and reached practical completion in February 2018. Looking at Beard’s performance in Phase 1, Phase 2 was likewise granted to them. Phase 2 works comprised of the demolition of existing residential structures and construction of eight residential blocks commenced in September 2017 and reached practical completion in May 2019.

After the culmination of development work in the two stages, on 17 May 2019, Mubarak Mosque, the administrative, religious educational and residential complex, was inaugurated by His Holiness Hazrat Mirza Masroor Ahmad Khalifatul–Masih V[(May Allah be his Helper)] .

On 29 June 2019, a special reception was held to mark the opening of Islamabad, Tilford, UK. A social gathering of more than 300 guests, including Members of Parliament, Members of the House of Lords, different dignitaries and particularly nearby residents and neighbours, appreciated the expansion of this delightful complex in their locale. These facilities have been kept open for the public and are being used throughout the year.

AMJ International has provided funds to Mirza Sharif Ahmad Foundation (2020 - £33.09m, 2019 - £29.52m) a charity with similar objectives with emphasis on helping the poor and needy and providing a reasonable standard of accommodation. An independent board of trustees manages the charity. The charity has invested funds in residential properties. AMJ International has retained a formal charge on these properties, and trustees retain the right to charge interest.

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TRUSTEES’ REPORT

SECTION 172(1) STATEMENT

The Directors/Trustees1 have acted in a way that they considered, in good faith, to be most likely to promote the success of the Ahmadiyya Muslim Jamaat International (AMJ), its members as a whole, and in doing so had regard, amongst other matters, to:

• the likely consequences of any decision in the long term;

• the interests of AMJ’s employees;

• the need to foster AMJ’s business relationships with suppliers, customers and others;

• the impact of AMJ’s operations on the community and the environment;

• the desirability of AMJ maintaining a reputation for high standards of business conduct;

• and the need to act fairly as between the members of AMJ.

The Directors/Trustees also considered the views and interests of a wider set of stakeholders, including our partners, our regulators, and non-government organisations. Considering these broad range of interests is an important part of how the board makes decisions and its decision-making process.

The Board2 will sometimes engage directly with certain stakeholders on certain issues, but the size and distribution of our stakeholders and of AMJ it often means that stakeholder engagement often takes place at an operational level.

The Board considers and discusses information from across the organisation to help it understand the impact AMJ International’s operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance, and information covering areas such as key risks and legal and regulatory compliance. This information is provided to the Board through reports sent in advance of each Board meeting and in-person presentations.

As a result of these activities, the Board has an overview of engagement with stakeholders and other relevant factors, which enables the Directors to comply with their legal duties under section 172 of the Companies Act 2006.

In discharging their s.172(1) duties the Directors have had regard to the factors set out above, as well as other factors relevant to the decisions being made. The Board acknowledges that every decision made will not necessarily result in a positive outcome for all stakeholders. By considering our objectives, together with our strategic priorities, the Board aims to ensure that the decisions made are consistent and intended to promote AMJ’s long-term success. Examples of how the Directors have engaged with the Charity’s stakeholders with regard to section 172(1) (a) to (f) are detailed below:

A. CONSEQUENCES OF ANY DECISION IN THE LONG TERM

AMJ considers the long-term consequences of any decision via regular meeting of the board as well as by maintaining the reserves of AMJ to the standard set via the SORP. In doing so the Board considers the financial stability of its grant giving and receiving organisations.

B. INTERESTS OF AMJ’S EMPLOYEES

AMJ provides adequate funds for majority of its employees to cover their rent and other amenities, which is in addition to the living wage. AMJ is also engaging very actively with volunteers in order to maximise efficiencies and in turn provide relevant experience to volunteers for their time and commitment. By the end of 2019 the National Living Wage (NLW) increased from £8.21 to £8.72, which took the Board considered and implemented so that employees were paid the living wage.

1 All Directors of AMJ are also Trustees.

2 The Board of Director/Trustees of AMJ

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TRUSTEES’ REPORT

SECTION 172(1) STATEMENT (CONTINUED)

In addition, AMJ’s policy in respect of employment of disabled persons is that full support is extended to disabled employees including making necessary adjustments for their work. Training and promotion opportunities are also available to all regardless of disability. All disabled employees of AMJ are given reasonable adjustments to the job and their working conditions, including redeployment and retraining, when if required.

COVID-19:

During Covid-19 employees were consulted in relation to their work conditions and requirements. Necessary adjustments were made to ensure employees could work from home in a COVID secure manner and suitable arrangements were made for employees including purchasing desks to work remotely. In addition, AMJ issued circulars to its staff over the period of Covid-19 apprising them of the government guidance and addressing matters of concern to the employees in relation to Covid-19. When appropriate adjustments were also made to our offices to ensure a safe and secure working environment.

C. AMJ’s RELATIONSHIPS WITH SUPPLIERS, CUSTOMERS AND OTHERS CHARITIES

The Directors/Trustees also considered the views and interests of a wider set of stakeholders, including our partners, our regulators, and non-governmental organisations. Considering this broad range of interests is an important part of the way the board makes decisions, although in balancing those different perspectives, it will not always be possible to deliver everyone’s desired outcome.

The Board considers and discusses information from across the organisation to help it understand the impact AMJ’s operations and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance, as well as providing training and information covering areas such as key risks, and legal and regulatory compliance. This information is provided to the board through reports sent in advance of each board meeting, and through in-person presentations.

D. IMPACT OF OPERATIONS ON THE COMMUNITY AND THE ENVIRONMENT

AMJ is taking steps to ensure it adopts a climate friendly policy. In particular, as a grant giving organisation it regularly reviews the technology or designs implemented by the recipients’ charity. AMJ is currently financing a community project in Tilford for which environmentally friendly and community friendly scenery and technology are implemented. This includes lights which are dimmer than usual in order to ensure a friendlier environment and community.

E. DESIRABILITY TO MAINTAINING A REPUTATION FOR HIGH STANDARDS OF BUSINESS CONDUCT

As we embark on achieving our strategic goals, AMJ demonstrates by example the same values that desire in the people we work with. This can be seen by reading the objects of a proposed partner charity. For example, our grants are provided to charitable objects that comply with the charitable objects of AMJ, after the board has decided. In addition, our values and behaviours include our commitment to safeguard leadership principles that are embedded in our staff recruitment, induction and appraisal procedures. We have anti-corruption strategy and accept all suppliers, partners and employees to accept AMJ’s code of conduct which prohibits fraud, bribery, money laundering and nepotism.

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TRUSTEES’ REPORT

ENERGY AND CARBON REPORTING

The Trustees have also taken into consideration the energy and carbon reporting for 2019 as required by ‘The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018’ and the report is as followed:

Energy Rating

The AMJ office site located in Tilford which is divided into ‘Blocks’ has excellent energy rating. On 18th January 2019 the site of AMJ’s offices complex in Tilford entitled Islamabad were awarded an overall Energy asset rating of: B (27).

Energy Consumed

The AMJ site consumes gas at the approximate energy rate of 23 MWh per month, whilst electricity at the approximate rate of 79 MWh per month. Annual Quantity of Energy consumed (The combustion of gas) It is estimated that the site utilised 1,151 MWh of gas consumption. (Estimate based on last year’s bills April 2020-Dec 2020 First three months assumed).

Increasing Energy Efficiency

AMJ has instructed the following methods and installations in order to increase energy efficiency this includes: lighting reduction; motion sensors; dimming features reduced power; and timing switches. The site also features a smart control system. This system called operates lighting and heating in some phase 1 buildings. Smart logics are in place to minimise energy wastage and to control energy consumption. Nest smart control is used in phase 2 house to minimise energy consumption.

Energy Source	Consumption	Scope	Emissions calculation
Transport - 86,920 miles in the year	86,920 miles * 1.11256 (2020 SECR kWh pass & delivery vehs, cars - average and unknown fuel)= 96,704 kWh	Scope 1	86,920 miles * 0.27584 (2020 managed assets vehicles, average car conversion factor to kgCO2e)= 23,976 kgCO2e = 23.97 tCO2e
Transport - People carriers/ vans - 127,406 miles in the year	127,406 miles * 1.72258 (2020 SECR kWh pass & delivery vehs, vans class 3 - used in lieu of passenger vehicles conversion)= 219,468 kWh	Scope 1	127,406 miles= 205,040 km 205,040 km 0.27171 (2020 managed assets vehicles, vans class 3 - used in lieu of passenger vehicles conversion)= 55,711 kgCO2e = 55.71 tCO2e*
Transport - total mileage re- imbursed from staf claims= 67,835 miles	67,835 miles * 1.11256 (2020 SECR kWh pass & delivery vehs, average car conversion factor to kWh)=75,471 kWh	Scope 3	67,835 miles * 0.27584 (2020 managed assets vehicles, average car conversion factor to kgCO2e)= 18,712 kgC02e =18.71 tCO2e
TOTAL	391,643 kWh		98.39 tCO2e
Intensity ratio	Emissions data (tCO2e) compared with an appropriate business activity (2019/20 average FTE)		98.39 tCO2e/222 FTE =0.44 tCO2e per FTE

Methodology

The data detailed in this table represents energy use and emissions for which The Ahmadiyya Muslim Jamaat International Ltd is responsible for the period 1 January 2020 to 31 December 2020. It includes the emissions from fuel used in vehicles on company business (both private and leased). For leased vehicles, this has been estimated based on the contractual mileage. These are the energy use and emissions sources required by the regulations for large unquoted organisations. We have used the main requirements of the GHG Protocol Corporate Accounting and Reporting Standard as our emissions calculation methodology. This methodology recommends that emissions are calculated by multiplying activity data (for example energy use in kWh) by an appropriate conversion factor.

Our emissions intensity is reported by full-time employee (FTE). This is because our employee numbers are directly related to our business activities, as increased business may result in higher FTE numbers. These intensity metrics allow comparison of our energy efficiency performance over time.

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TRUSTEES’ REPORT

ENERGY AND CARBON REPORTING (CONTINUED)

Environmental Activities

In addition, since 2019 the following activities were introduced to further reduce carbon footprint in Islamabad:

• 1,940 Trees planted for hedges;

• 56 Single trees planted;

• 36 Proposed single tree planting in next planting season; and

• 12 Proposed single tree planting Following Block 11.

In order to make the environment friendly the following actions have been undertaken:

• Extensive Green roof: Extensive planting of Sedum blanket over roof area.

• Solar energy generation (Photovoltaic):

• » 275W panels;

• » 273 panels in phase 2; and

• » 90 panels in phase 1.

• Solar Heat generation (Solar thermal): Solar thermal drain back system acts as preheat for the hot water system reducing energy required from boilers.

• Building Management System: Trend Building management control system is used in phase 1 to control and monitor plants rooms in each block. This helps improve energy efficiency of mechanical and electrical plants in the buildings.

• Electric car charging station: As part of the trustees wider aim electric car charging facilities are introduced to encourage environmentally friendly modes of transport.

The design specification for solar panels, one of the many features installed in Islamabad to make Islamabad environmentally friendly.

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TRUSTEES’ REPORT

MODERN SLAVERY STATEMENT

The Board of Trustees approved Ahmadiyya Muslim Jamaat International’s (AMJ) modern slavery and human trafficking statement pursuant to section 54 of the Modern Slavery Act 2015.

The statement notes that AMJ is committed to continuously reviewing high risk areas and has ensured that all new contracts align to our Modern Slavery policy and that AMJ has a number of policies which deal with its approach to tackling the risk of modern slavery in its supply chain.

The full statement can be obtained from our website – https://www.amjinternational.org/activities

ANTI-MONEY LAUNDERING (AML) & COUNTER-TERRORIST FINANCE (CTF) POLICY

“During the year, the AML and CTF policies were updated by AMJ. The policies apply to all staff including contractors and consultants. All those receiving AMJ funds or representing AMJ, including suppliers, grant recipients, partners and agents are required to act in accordance with this policy. The policy notes that AMJ has a zero tolerance policy towards money laundering and terrorist financing and takes into account UK Home Office guidance on counterterrorism and does not hold any business relationships with those set out under the respective sanctioned lists of HM Treasury. A code of conduct is in place to ensure a culture of integrity and seeks to counter all forms of extremism and terrorism. The policy also covers how AMJ assesses the nature of its exposure to risks of money laundering and terrorism and covers how staff are trained in these areas. It also notes what reporting is required (both internally and externally) regarding any suspected or actual instances of money laundering or terrorist financing. A full copy of the policy is available on request.”

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TRUSTEES’ REPORT

VOLUNTEERS AND FUNDRAISING

The charity is served by trustees acting voluntarily and, otherwise, requires little input from other volunteers as its primary focus is grant-making. However, many of the bodies that AMJ International awards grants rely significantly on the use of volunteers, particularly the AMJ community worldwide and, for example, the organisation of events such as the Annual Convention. AMJ International does not carry out fundraising itself as it is an umbrella organisation that receives worldwide funding from the Ahmadiyya Muslim Communities.

AUDITOR

RSM UK Audit LLP has indicated its willingness to continue in office.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees has confirmed that they have taken all the steps they ought to have taken as trustees to make themselves aware of any relevant audit information and establish that it has been communicated to the auditor.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

Although the charity would maintain restricted funds to deal with incoming resources that are earmarked for a particular purpose by donors, sponsors, and other funders, Ahmadiyya Muslim Jamaat International does not hold any funds, and the trustees do not anticipate that it will in the future hold any funds, as the custodian for any third party.

This report was approved by the trustees on 15[th] November 2021, and was signed for and on behalf of the board by:

Shajar Ahmad Farooqi FCA

Trustee

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STRATEGIC REPORT

RISK AND INTERNAL CONTROL

The trustees have overall responsibility for ensuring that AMJ International has an appropriate system of controls, financial and otherwise. They 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 and to provide reassurance that:

• its assets are safeguarded against unauthorised use or disposition;

• proper records are maintained, and financial information used within the Charity or for publication is reliable; and

• the Charity complies with relevant laws and regulations.

As part of the Charity’s risk management process, the trustees acknowledge their responsibility for the Charity’s system of internal control and reviewing its effectiveness. It is also recognised by the trustees that such a system is designed to manage rather than eliminate the risk of failure to achieve the Charity’s objectives and can only provide reasonable, not absolute, reassurance against material misstatement or loss.

The trustees, through the Finance Committee, have set policies on risk and internal controls, which cover the following:

• the responsibility of management to implement the trustees’ policies and identify and evaluate risks for their consideration on an on-going basis;

• consideration of the type of risks the Charity faces;

• the level of risks which they regard as acceptable;

• the likelihood of the risks concerned materialising;

• the Charity’s ability to reduce the incidence and impact on the business of risks that do materialise;

• the costs of operating particular controls relative to the benefit obtained; and

• arrangements for monitoring and reporting on risk and control matters of importance, together with details of corrective action being undertaken.

KEY PERFORMANCE INDICATORS

Due to the unique nature of the charity, there are no specific key performance indicators by which the Trustees measure performance. Instead, there is a general focus on the contribution to the community, which is evidenced by the activities noted on pages 6 and 7.

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STRATEGIC REPORT

A summary of the trustees’ consideration of the major risks to which the Charity is exposed, together with the management of these risks, is as follows:

Income is not available from core funding.

AMJ International has put in place processes to receive standing order payments from its donors and is not reliant on any sort of variable income from grant-making institutions.

Grants paid to communities are not spent for purposes in accordance with AMJ International’s charitable nature and objectives.

AMJ International trustees insist on a complete and accurate budgetary process being approved before committing funds to any community project, and personally review progress on projects until finalisation.

Covid-19

Given the unprecedented circumstances, it is extremely difficult to predict what will happen in the coming months. Still, the trustees consider the charity holds adequate cash reserves to fund its liabilities as they fall due for the foreseeable future.

FUTURE PLANS

The main objectives for future periods include a financial commitment to the ongoing projects undertaken by the Ahmadiyya Muslim Community worldwide. In addition to this primary focus for 2021, the existing activities carried out in 2020 will remain ongoing with a broad commitment to construct a minimum of 100 mosques per year.

This report was approved by the trustees on 15[th] November 2021, and was signed for and on behalf of the board by:

Shajar Ahmad Farooqi FCA

Trustee

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of AMJ International for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom’s Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company 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 Charitable Company 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 corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of Ahmadiyya Muslim Jamaat International (the ‘charitable company’) 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 charitable company 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 trustees’ 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 charitable 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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. 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.

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INDEPENDENT AUDITOR’S REPORT

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 18 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITOR’S REPORT

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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatory frameworks;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

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INDEPENDENT AUDITOR’S REPORT

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kerry Gallagher (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Davidson House Forbury Square Reading RG1 3EU United Kingdom 18 November 2021 Date

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STATEMENT OF FINANCIAL ACTIVITIES

Statement of Financial Activities (incorporating Income and Expenditure Account) for the year ended 31 December 2020

Notes Income and endowments from: Donations and legacies 2 Investments Total income Expenditure on: Charitable activities 3 Total expenditure Net surplus Net movement in funds Reconciliation of funds Total funds brought forward 12 Total funds carried forward 12	Total unrestricted funds 2020 £’000 48,484 - 48,484 32,142 32,142 16,342 16,342 32,154 48,496	Total unrestricted funds 2019 £’000 38,907 2
		38,909
		38,889
		38,889
		20
		20 32,134
		32,154

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BALANCE SHEET

Balance Sheet at 31 December 2020

Balance Sheet at 31 December 2020
	Companynumber 4785585 As at 31 December 2020 As at 31 December 2019 £’000 £’000 6 9 33,088 29,525 33,094 29,534 547 1,213 15,453 1,999 16,000 3,212 (598) (592) 15,402 2,620 48,496 32,154 15,408 2,629 33,088 29,525 48,496 32,154
Note FIXED ASSETS Tangible assets 8 Social investment 8 CURRENT ASSETS Debtors 9 Cash at bank and in hand CREDITORS: amounts falling due within one year 10 NET CURRENT ASSETS NET ASSETS FUNDS Unrestricted Funds Undesignated funds 12 Designated funds 12	As at 31 December 2020 £’000 6 33,088 33,094 547 15,453 16,000 (598) 15,402 48,496 15,408 33,088 48,496

The accompanying notes are an integral part of this Balance Sheet.

Approved and authorised for issue by the Trustees on 15[th] November 2021 , and signed on their behalf by:

Mubarak Ahmad Zafar Trustee and Chairman of Finance Committee

S. A. Farooqi FCA Trustee and Secretary

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STATEMENT OF CASH FLOW

Statement of Cash Flows for the year ended 31 December 2020

Notes 2020 £’000 £’000 Cash fows from operating activities 13 17,065 Cash fows from investing activities Purchase of tangible fxed assets (48) Interest received - Acquisition of investment (3,563) Net Cash used in investing activities (3,611) Change in cash and cash equivalents in the reporting year 13,454 Cash and cash equivalents at the beginning of the reporting year 1,999 Cash and cash equivalents at the end of the reporting year 15,453	£’000 (245) 2 (2,454)	2019 £’000 (448) (2,697)
		(3,145) 5,144
		1,999

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NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

1 PRINCIPAL ACCOUNTING POLICIES

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, the requirements of the Companies Act 2006 and under the historical cost convention. Within the definitions of FRS 102, the charity is a public benefit entity. The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019 (the FRS 102 Charities SORP 2019).

GENERAL INFORMATION

AMJ International is a private company limited by guarantee incorporated in England and Wales. The registered office is Tahir House, 22 Deer Park Road, London SW19 3TL, United Kingdom. The charities objectives and aims are disclosed in the Trustees and Strategic Report.

GOING CONCERN

The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts. The trustees are satisfied that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about its ability to continue as a going concern. This conclusion has been formed as a result of the strong net assets position of the Charity at the year-end of £48,496k, cash balance of £15,453k and the continued support from global donors. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

At the time of signing these financial statements the Coronavirus disease (COVID-19) has been declared a pandemic. The COVID-19 pandemic is unprecedented and still evolving and therefore brings challenges and uncertainties. Financial forecasts have been prepared to demonstrate that the charity has, through a combination of bank balances and its National Associations’ support, sufficient cash to remain a going concern for the foreseeable future. Having considered the uncertainties posed by the pandemic, the trustees consider for the above reasons that there are no material uncertainties about the Charity’s ability to continue as a going concern and have accordingly prepared the financial statements on a going concern basis.

TANGIBLE FIXED ASSETS AND DEPRECIATION

Items of a capital nature are reviewed for their purpose and are capitalised where they are considered to provide an ongoing use to the Charity.

Depreciation is charged against fixed assets commencing with the year of acquisition at rates estimated to write off their cost or valuation less any residual value over the expected useful lives which are as follows:

Fixtures, fittings and equipment 1 year Motor vehicles 4 years

Any assets which are impaired in value are written down to their recoverable amount.

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NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

1 PRINCIPAL ACCOUNTING POLICIES (Continued)

DONATIONS AND GIFTS

Donations and gifts are recognised in the Statement of Financial Activities as soon as they are receivable.

GRANTS PAYABLE

Grants payable are expensed when events have created a valid expectation in other parties that the Charity will discharge its liabilities.

APPORTIONMENT OF EXPENDITURE

Expenditure (including irrecoverable VAT) is apportioned under the guidance of the SORP and analysed between directly undertaken activities, grant funding of activities and current cost;

Expenditure is recognised on an accruals basis as a liability is incurred.

The method of apportionment is as follows:

1. Costs attributable solely to one activity are allocated to that activity;

2. Costs which contribute directly to the output of more than one activity are apportioned on a reasonable, justifiable and consistent basis;

3. Support costs are apportioned based on the following criteria:

General Management Total cost of activity PR & Communication Total cost of activity Administration Total cost of activity Finance Total cost of activity Currency translation gains Total cost of activity

FOREIGN CURRENCIES

Transactions in foreign currency are recorded at the rate of exchange prevailing at the time of transaction. Foreign currency balances are translated into sterling at the exchange rates prevailing at the Balance Sheet date. Any gains or losses are included in the Statement of Financial Activities.

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NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

1 PRINCIPAL ACCOUNTING POLICIES (Continued)

GOVERNANCE

Governance costs are the costs associated with the constitutional and statutory arrangements of the Charity as opposed to those costs associated with income generation or charitable activity. Included within this category are costs associated with the strategic rather than day to day management of the Charity’s activities. These costs include external audit and reimbursed trustee expenses.

FUNDS

Unrestricted funds are donations and other incoming resources receivable or generated in furtherance of the Charity’s objectives without further specified purpose and are available as general funds. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

FINANCIAL INSTRUMENTS

The charitable company 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 with the exception of listed investments which are subsequently measured at fair value.

FINANCIAL ASSETS

Other debtors which are receivable within one year are recognised at the settlement amount due after any discount offered. A provision for impairment of other debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in income and expenditure for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in income or expenditure.

FINANCIAL LIABILITIES

Creditors and provisions are recognised when the charitable company has a present obligation resulting from a past event that will probably result in a 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.

PENSION SCHEME ARRANGMENTS

Defined contribution plans

The charity makes contributions to personal pension arrangements in respect of all staff. Contributions are shown as expenditure in the year in which they are paid. The charitable company has no liability in this respect other than the amounts actually paid in any year.

SOCIAL INVESTMENT

The social investment reflects funds provided to a charity with similar objectives with emphasis on helping the poor and needy and providing a reasonable standard of accommodation. Investments made are initially recognised at cost with the carrying amount adjusted in subsequent years if necessary for any impairment.

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NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

2 INCOME AND ENDOWMENTS Donations and Legacies Donations from institutions and individuals Investments Bank and Money Market interest receivable Donation income is split as follows: Income from UK sources Income from sources outside of the UK 3 EXPENDITURE Activities undertaken directly Charitable expenditure £’000 1. Propagation of Islam worldwide 7,862 2. Building of mosques, hospitals & schools - 3. Scientifc research & development - 4. Scholarships for higher education - 5. Emergency relief - natural disasters - 6. Assistance to deserving and needy - Total charitable expenditure 7,862	2 INCOME AND ENDOWMENTS Donations and Legacies Donations from institutions and individuals Investments Bank and Money Market interest receivable Donation income is split as follows: Income from UK sources Income from sources outside of the UK 3 EXPENDITURE Activities undertaken directly Charitable expenditure £’000 1. Propagation of Islam worldwide 7,862 2. Building of mosques, hospitals & schools - 3. Scientifc research & development - 4. Scholarships for higher education - 5. Emergency relief - natural disasters - 6. Assistance to deserving and needy - Total charitable expenditure 7,862	Grant funding of activities £’000 16,117 3,065 645 1,786 55 1,976	Support costs £’000 433 84 17 48 1 53	Total Funds 2020 £’000 48,484	Total Funds 2019 £’000 38,907 2 2019 £’000 8,350 30,557 38,907 Total cost 2019 £’000 28,749 4,928 662 2,202 88 2,260 38,889
				-
				2020 £’000 11,560 36,924
				48,484
				Total cost 2020 £’000 24,412 3,149 662 1,834 56 2,029
	7,862	23,644	636	32,142

The trustees have taken the exemption from disclosing the recipients of institutional grants accordance with paragraph 16.23 of the Charities Statement of Recommended Practice FRS102 (effective October 2019) on the grounds of serious prejudice.

32 |[AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020]

NOTES TO THE FINANCIAL STATEMENTS

Notes to the fnancial statements for the year ended 31 December 2020	Notes to the fnancial statements for the year ended 31 December 2020
Support costs PR & Communication Administration Finance Governance Sub Total Currency translation Loss Total payable for the year ended 31 December 2020 Total payable for the year ended 31 December 2019	Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 37 7 1 4 - 4 53 365 70 15 41 1 45 537 4 1 - - - 1 6 8 2 - 1 - 1 12 414 80 16 46 1 51 608 19 4 1 2 - 2 28 433 84 17 48 1 53 636 1,564 350 48 156 7 161 2,286

4 AUDITOR’S REMUNERATION

RSM UK Audit LLP and its associates:

Audit services

Total 2020 £’000 18	Total 2019 £’000 18
18	18

5 TRUSTEES’ REMUNERATION

The trustees (who are considered to be the key management personnel) did not receive any emoluments during either year. The aggregated amount of travel expenses reimbursed to 1 (2019: 3) trustees during the year was £1,140 (2019: £4,517)

6 STAFF COSTS

FF COSTS Wages and salaries Social security costs Pension Scheme	2020 £’000 7,116 634 86	2019 £’000 6,046 535 44
	7,836	6,625

The average number of employees was 268 (2019: 228) during the year. During the year 252 (2019: 211) employees were engaged in the propagation of Islam worldwide with 16 (2019: 17) employees engaged in administration. One employee received emoluments in excess of £60,000 (£61,331.55) during this year (2019: 0).

		2020	2019
In the band £60,001	- £70,000	1	-
In the band £70,001	- £80,000	-	1

AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020 | 33

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

7 TAXATION

The company is a registered charity, and as such its income and gains falling within Section 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

8 FIXED ASSETS

TANGIBLE ASSETS Fixtures, fttings & equipment £’000 COST At 1 January 2020 619 Additions 48 At 31 December 2020 667 DEPRECIATION At 1 January 2020 619 Depreciation charge 48 At 31 December 2020 667 NET BOOK VALUE At 1 January 2020 - At 31 December 2020 -	TANGIBLE ASSETS Fixtures, fttings & equipment £’000 COST At 1 January 2020 619 Additions 48 At 31 December 2020 667 DEPRECIATION At 1 January 2020 619 Depreciation charge 48 At 31 December 2020 667 NET BOOK VALUE At 1 January 2020 - At 31 December 2020 -	Motor vehicles £’000 279 -	Total £’000 898 48
	667 619 48	279 270 3	946 889 51
	667 -	273 9	940 9
	-	6	6

The net book value at 31 December 2020 represents fixed assets used for the charity’s own use.

SOCIAL INVESTMENTS	2020	2019
	£’000	£’000
Social Investments	33,088	29,525

AMJ International has provided funds to Mirza Sharif Ahmad Foundation, a charity with similar objectives with emphasis on helping the poor and needy and providing a reasonable standard of accommodation. The Charity is managed by an independent board of trustees. The Charity has invested funds in residential properties. AMJ International has retained a formal charge on these properties and trustees retain the right to charge interest.

No interest has been charged for the year ended 31 December 2020 (2019: £nil).

34 |[AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020]

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

9 DEBTORS Other debtors 10 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Other taxes and social security Accruals 11 FINANCIAL INSTRUMENTS Carrying amount of fnancial assets Debt instruments measured at amortised cost Carrying amount of fnancial liabilities Measured at amortised cost 12 FUNDS Year Ended 31 December 2020 Balance b/fwd. Incoming Resources £’000 £’000 Unrestricted funds Undesignated funds 2,629 48,484 Designated funds 29,525 - 32,154 48,484	9 DEBTORS Other debtors 10 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Other taxes and social security Accruals 11 FINANCIAL INSTRUMENTS Carrying amount of fnancial assets Debt instruments measured at amortised cost Carrying amount of fnancial liabilities Measured at amortised cost 12 FUNDS Year Ended 31 December 2020 Balance b/fwd. Incoming Resources £’000 £’000 Unrestricted funds Undesignated funds 2,629 48,484 Designated funds 29,525 - 32,154 48,484	9 DEBTORS Other debtors 10 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Other taxes and social security Accruals 11 FINANCIAL INSTRUMENTS Carrying amount of fnancial assets Debt instruments measured at amortised cost Carrying amount of fnancial liabilities Measured at amortised cost 12 FUNDS Year Ended 31 December 2020 Balance b/fwd. Incoming Resources £’000 £’000 Unrestricted funds Undesignated funds 2,629 48,484 Designated funds 29,525 - 32,154 48,484	Outgoing Resources £’000 (32,142) -	2020 £’000	2019 £’000
				547	1,213
				2020 £’000 295 225 78	2019 £’000 301 192 99
				598	592
				2020 £’000	2019 £’000
				547	1,213
				373	400
				Transfers £’000 (3,563) 3,563	Balance c/fwd. £’000 15,408 33,088
	32,154	48,484	(32,142)	-	48,496

The transfer of £3,563k from the Undesignated to Designated Fund is to reflect the Social Investment balance at the year end.

Undesignated funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020 | 35

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

Designated funds represent an external investment in a third party charity’s freehold property assets (See note 8).

Year Ended 31 December 2019 Unrestricted funds Undesignated funds Designated funds ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fxed assets Long term Investments Current assets Current liabilities Net assets 2019 Comparative Tangible fxed assets Long term Investments Current assets Current liabilities Net assets	Balance b/fwd. £’000 5,063 27,071	Incoming Resources £’000 38,909 -	Outgoing Resources £’000 (38,889) -	Transfers Balance c/fwd. £’000 £’000 (2,454) 2,629 2,454 29,525
	32,134	38,909	(38,889)	- 32,154
		Undesignated £’000 6 - 16,000 (598)	Designated £’000 - 33,088 - -	Total £’000 6 33,088 16,000 (598) 48,496 Total £’000 9 29,525 3,212 (592) 32,154
		15,408	33,088
		Undesignated £’000 9 - 3,212 (592)	Designated £’000 - 29,525 - -
		2,629	29,525

36 |[AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020]

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements for the year ended 31 December 2020

13 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING ACTIVITIES Net incoming resources Adjusted for: Interest received Depreciation Movement in debtors Movement in creditors CASH GENERATED FROM OPERATING ACTIVITIES 14 Related Party Transactions	2020 £’000 16,342 - 51	2019 £’000 20 (2) 254
	16,393 666 6	272 (855) 135
	17,065	(448)

No related party transactions occurred during the period (2019: £nil).

AHMADIYYA MUSLIM JAMAAT INTERNATIONAL (AMJ INTERNATIONAL) Annual Report for the year ended 31 December 2020 | 37