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2024-04-06-accounts

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Charity registration number: 1107294

Muslim Relief

Annual Report and Financial Statements for the Year Ended 6 April 2024

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Contents
Reference and Administrative Details 1
Trustees' Report 2 to 3
Statement of Trustees' Responsibilities 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 15

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Reference and Administrative Details

Trustees

Razaul Mustafa Ansar Mahmood Anwarul Mustafa Ammad Raza

Principal Office

160 Bromley Street BATLEY West Yorkshire WF17 6LB

Charity Registration Number

1107294

Bankers

==> picture [296 x 69] intentionally omitted <==

Virgin Money Account 30772972

Independent Examiner

Nasir Rafiq BA FCA Independent Examiner Chartered Accountant and Business advisor Bradford Court 123-131 , Bradford Street Digbeth, Birmingham, B12 0NS

Page 1

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 6 April 2024.

Objectives and activities

Public benefit

Between April 2023 and April 2024, the organization’s charitable relief operations reached approximately 83,700+ beneficiaries worldwide, including up to 40,000+ indirect beneficiaries (those who benefit from the interventions but may not be the primary recipients). This underscores the organization’s continued commitment to uplifting vulnerable communities on a global scale.

Through the distribution of Food Packs, Ready Meals, and Nutritious Meat, over 223,150 meals were provided to families, orphaned children, widows, and other individuals in critical need.

In addition, the organization worked to combat water scarcity by installing 49 hand pumps across Asia (Bangladesh, Pakistan, and India), as well as establishing 3 major water facilities in Yemen, Gaza and Pakistan. Previous years’ projects also continue to deliver lasting support for local communities—evidenced by 550+ families still benefiting from earlier water facilities.

The organization further undertook projects to alleviate poverty, including delivering winter aid items in Bangladesh to Rohingya refugees, and remains committed to expanding and strengthening these broader poverty alleviation efforts.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial review

During the period, the Trust received donations of £275k (2023: £128k). Expenses in the year were £273k (2023: £83k).

The carried forward cash fund balance is £76.3k (2022: £75.1k).

Policy on reserves

The Trust maintains sufficient reserves to continue its charitable programs for the foreseeable future.

Plans for future periods

Aims and key objectives for future periods

Building on this year’s extraordinary progress, the charity aims to expand its geographical reach, forge new strategic partnerships, enhance program delivery methods, and strengthen its financial position through secure investments. These efforts will enable the organization to reach more people, achieve greater impact, and bring about enduring change in the communities it serves.

Structure, governance and management Financial instruments

Objectives and policies

The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Page 2

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Trustees' Report

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

06 February 2025

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Anwarul Mustafa Trustee

Page 3

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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

06 February 2025

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Anwarul Mustafa Trustee

Page 4

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Independent Examiner's Report to the trustees of Muslim Relief

I report to the charity trustees on my examination of the accounts of the charity for the year ended 6 April 2024 which are set out on pages 6 to 15.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Muslim Relief you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Muslim Relief's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since Muslim Relief's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of Muslim Relief as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

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 accounts to be reached.

...................................... Nasir Rafiq BA FCA Independent Examiner ICAEW

Chartered Accountant and Business advisor Bradford Court 123-131 , Bradford Street Digbeth, Birmingham, B12 0NS 06 February 2025

Date:.............................

Page 5

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Statement of Financial Activities for the Year Ended 6 April 2024

Unrestricted
Total
funds
Restricted funds
2024
Note £
£
£
Income and Endowments from:
Donations and legacies 1,265
337,352
338,617
Expenditure on:
Raising funds -
(194,335)
(194,335)
Charitable activities (792)
(78,828)
(79,620)
Total expenditure
(792)
(273,163)
(273,955)
Net income
473
64,189
64,662
Net movement in funds
473
64,189
64,662
Reconciliation of funds
Total funds brought forward
22,128
52,990
75,118
Total funds carried forward
11
22,601
117,179
139,780
Unrestricted
Total
funds
Restricted funds
2023
Note £
£
£
Income and Endowments from:
Donations and legacies 308
127,358
127,666
Total income
308
127,358
127,666
Expenditure on:
Raising funds -
(54,169)
(54,169)
Charitable activities (9,112)
(20,199)
(29,311)
Total expenditure
(9,112)
(74,368)
(83,480)
Net(expenditure)/income
(8,804)
52,990
44,186
Net movement in funds
(8,804)
52,990
44,186
Reconciliation of funds
Total funds brought forward
30,932
-
30,932
Total funds carried forward
11
22,128
52,990
75,118

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2023 is shown in note 11.

Page 6

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

(Registration number: 1107294) Balance Sheet as at 6 April 2024

2024 2023
Note £ £
Fixed assets
Tangible assets
7
79,098 -
Current assets
Debtors
8
63,903 -
Cash at bank and in hand
9
13,412 75,118
77,315 75,118
Creditors: Amounts falling due within oneyear
10
(16,633) -
Net currentassets 60,682 75,118
Netassets 139,780 75,118
Funds of the charity:
Restricted income funds
Restricted funds 117,179 52,990
Unrestricted income funds
Unrestricted funds 22,601 22,128
Total funds
11
139,780 75,118

The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 06 February 2025 .................... and signed on their behalf by:

.........................................

Anwarul Mustafa Trustee

Page 7

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

1 Accounting policies

Statement of compliance

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 Charities Act 2011.

Basis of preparation

Muslim Relief meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 8

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 9

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Financial instruments

Classification

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 10

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 11

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

2 Income from donations and legacies

Unrestricted
funds Restricted Total Total
General funds 2024 2023
£ £ £ £
Donations and legacies;
Donations from individuals - 337,352 337,352 127,358
Gift aid reclaimed 1,265 - 1,265 308
1,265 337,352 338,617 127,666

Costs of generating donations and legacies a)

a)
Restricted Total Total
funds 2024 2023
Note £ £ £
Donations 194,335 194,335 54,169
Total
2024
£

4 Expenditure on charitable activities

Restricted
Total
Total
funds
2024
2023
Note £
£
£
Governance costs 3,850
3,850
1,980

Page 12

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Activity
undertaken
directly
Activity support
costs
Total
2024
Total
2023
Activity
undertaken
directly
Activity support
costs
Total
2024
Total
2023

£
£
£
£
Food
46,263
-
46,263
10,885
Grant
10,000
-
10,000
-
Qurbani
3,850
-
3,850
1,463
Water, Education
11,476
-
11,476
-
Winter Aid
400
-
400
1,922
General
792
6,839
7,631
-
72,781
6,839
79,620
14,270
5
Independent examiner's remuneration
2024
2023
£
£
Examination of the financial statements
3,450
1,980

Page 13

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

6 Taxation

The charity is a registered charity and is therefore exempt from taxation.

7 Tangible fixed assets

7 Tangible fixed assets
Furniture and
equipment Total
£ £
Cost
Additions 79,098 79,098
At 6 April 2024 79,098 79,098
Depreciation
At 6 April 2024 - -
Net book value
At 6 April 2024 79,098 79,098
8 Debtors
2024
£
Other debtors 63,903
9 Cash and cash equivalents
2024 2023
£ £
Cash at bank 13,412 75,118
10 Creditors: amounts falling due within one year
2024
£
Accruals 16,633
11 Funds

Page 14

Docusign Envelope ID: 2745F766-BABF-48B0-A7E1-ABC825336970

Muslim Relief

Notes to the Financial Statements for the Year Ended 6 April 2024

Balance at 7
April 2023
Incoming
resources
Resources
expended
Balance at 6 April
2024
Balance at 7
April 2023
Incoming
resources
Resources
expended
Balance at 6 April
2024

£
£

£
£
Unrestricted funds
General
22,128
1,265
(792)
22,601
Restricted funds
52,990
337,352
(273,163)
117,179
Total funds
75,118
338,617
(273,955)
139,780
Balance at 7
April 2022
Incoming
resources
Resources
expended
Balance at 6 April
2023

£
£

£
£
Unrestricted funds
General
30,932
308
(9,112)
22,128
Restricted funds
-
127,358
(74,368)
52,990
Total funds
30,932
127,666
(83,480)
75,118
12
Analysis of net assets between funds
Unrestricted
funds
Restricted
Total funds
General
funds
2024
£
£
£
Tangible fixed assets 22,601
56,497
79,098
Current assets -
77,315
77,315
Current liabilities -
(16,163)
(16,163)
Total net assets
22,601
117,649
140,250
13
Analysis of net funds
Financing cash
At 7 April 2023
flows
At 6 April 2024

£
£

£
Cash at bank and in hand 75,118
(61,706)
13,412
Net debt
75,118
(61,706)
13,412
Financing cash
At 7 April 2022
flows
At 6 April 2023

£
£

£
Cash at bank and in hand 32,132
42,986
75,118
Net debt
32,132
42,986
75,118

Page 15