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← Euro Quality Foundation

2025-06-30-accounts

Euro Quality Foundation

Financial Statements

for the financial year ended 30 June 2025

Registered number: 1119242

Euro Quality Foundation

Contents

Page
Reference and administrative information 1
Trustees’ report 2 - 8
Independent auditor’s report to the trustees 9 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 23

Euro Quality Foundation

Reference and Administrative Information

Trustees T Khalid
R M Khalid
M N Mansha
Registered Office Euro House
Dale Street
Craven Arms
Shropshire
SY7 9PA
Solicitors Private Client Solicitors
Centurion House
129 Deansgate
Manchester
M3 3WR
Bankers Al Rayan Bank PLC
394 Coventry Road
Small Heath
Coventry Road
Birmingham
B10 OUF
Independent Auditors Grant Thornton
13-18 City Quay
Dublin 2
Ireland
D02 ED70

1

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

The Trustees submit their Annual Report and audited financial statements of the Foundation for the year ended 30 June 2025.

This report sets out the Foundation’s aims, objectives and policies as had been developed by the Trustees during the initial years of operation and should be seen as ever evolving. The overall remit of the Trustees is to engage in activities that benefit humanity.

Reference and administrative information

Euro Quality Foundation is registered as a charity by HMRC, Foundation number XT5290. The Trustees and Secretary of the charity are listed on page 1. The principal and registered office of the charity is also listed on page 1 together with details of the professional advisers and bankers. The charity is registered with the Charities Commission of England & Wales under reference number 1119242.

Structure, governance and management

Constitution

The Foundation is governed by a Trust Deed duly executed on 19 February 2007 (as amended on 26 June 2017). These lay out the principles by which the Trustees can govern the Trust.

Registration

The Foundation is registered with the Charities Commission (registration number 1119242) and with HMRC (XT5290).

Ultimate Aim

The ultimate aim is to efficiently distribute wealth in order to eliminate poverty and social injustice and promote educational learning and tolerance worldwide.

The Foundation aims to make a difference by contributing funding and guidance to such good causes that otherwise lack funding to perform its objective effectively. This meets the charitable object of applying income for or towards any charitable purposes, the trustees think fit.

It does this in a number of ways

2

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Ultimate Aim (continued)

Funding can be in the form of direct donations or interest-free loans. The effectiveness of funding is discussed and assessed at annual trustee meetings.

Mission Statement

“To provide a mechanism by which charitable donations can be efficiently amassed and effectively distributed in accordance with Islamic principles”.

Background

Euro Quality Foundation has been established as a Philantropy Fund. Similar to the way in which an Investment Fund operates by pooling funds to maximise returns for its stakeholders, a Philantropy Fund pools donations from various sources to maximise the efficiency and effectiveness of their donations.

Zakah

Zakah is an obligatory charity on Muslims who possess Net Wealth. Net Wealth can loosely be defined as the value of non-essential assets over and beyond the payer’s immediate and necessary liabilities. Zakah is then calculated as an (Islamic) annual rate of 2.5% of this amount. Euro Quality Foundation provides a mechanism by which individuals and businesses can learn about and fulfil their Zakah obligations.

Operating Policy

The Foundation will conduct itself and its activities in an ethical and transparent manner. Policies may be changed or adapted to further the Foundations objectives.

Donation & Grant making policy

The Foundation works with registered charities. Each application is considered on its own merits. It expects full accountability, transparency and progress reports from recipients for any donations made with ongoing reviews to monitor performance and results against expectations. The following sectors take precedence:

3

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Donation & Grant making policy (continued)

Since inception, the Foundation has made a number of donations to UK registered charities selected on their ability to provide poverty relief, combat social injustice and promote education and tolerance. Working with a smaller pool of charities has enabled the Trustees to start building relationships and increase the effectiveness of the donations.

Reserves policy

The Foundation has unrestricted funds, which are not committed or invested in tangible fixed assets or designated for specific purposes (“the free reserves”), and are retained to meet the future requirements of the Foundation. The Foundation has emergency reserves of £10,000 (2024: £10,000) in the event of the Foundation being wound up. The Foundation's policy is to retain a level of unrestricted reserves, which meets the needs of the Foundation both at the current time and in the foreseeable future. The Trustees are of the opinion that this amount remains, to be distributed for unexpected costs. This will not be static, will be held on a discretionary basis and is reviewed annually by the trustees.

Investment policy

The Foundation only invests in ethical investments. The trustees continually monitor investments and returns for ethical compliance criteria. The trustees will initiate new forms of ethical investments if they believe it enhances the returns for the Foundation whilst balancing financial commitments, constraints, reserves and liquidity requirements. In particular, the Foundation will only invest in riba-free (non-usury) and shariah-compliant investments.

Organisation

The Trustees meet on a regular basis to discuss potential donations to and from the Foundation alongside any other issues, with a formal meeting occurring annually. The Trustees use personal contacts to obtain external advice on a needs basis and to keep administration costs down. The Trustees do not charge for their time or their expenses.

Risk management

Major risks, which have been identified and discussed by the trustees include loss of funding due to poor profitability of the sponsoring corporate companies and loss of reputation, perhaps due to adverse publicity, leading to a fall in public confidence in the Foundation and a consequent reduction in other income. Further risks include the ability to ensure sufficient funding going forward in light of decline in public spending. There are also risks associated with maintaining the highest security of our information to prevent loss of data.

Risks related to operations in foreign countries are mitigated by using only UK or EU registered charities operating in those jurisdictions but subject to UK and EU charitable and funding laws.

4

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Risk management (continued)

Other risks relate to engaging with UK registered charities under investigation by charities commission or demonstrating poor governance by late filing of documents. Prior to any funding being forwarded the charities commission website will be reviewed to confirm any ongoing investigation and/or late filing of documents. The charity will then be asked about these and unless satisfactory responses are received, funding will be withheld until the investigation is completed or documents are filed.

The trustees review the risks to which the charities are exposed on a regular basis and a risk management strategy is in place where by those risks are identified, the levels of risk is assessed and systems and controls for those risks are established. The trustees take all appropriate steps to moderate and manage the operational risks to which the assets of Euro Quality Foundation are exposed.

Having considered all identified risks the Trustees do not consider there to be a risk to the going concern status of the organisation.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the Foundation. Any connection between a trustee of the Foundation with any related organisation from which the Foundation avails of services or donations must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Euro Quality Lambs Limited, Corvedale Fresh Limited, Grove Park Limited, and Newington Limited are considered related parties, due to at least one of the directors in each entity being a trustee of the Foundation. Related party transactions have been disclosed in note 18.

Taxation status

The Foundation is a registered Foundation, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Foundation’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

The Foundation is not registered for VAT and accordingly, all their expenditure is recorded inclusive of any VAT incurred.

Trustees

The Trustees are Ms Tasnim Khalid, Mr Rizvan M Khalid and Mr M Nadeem Mansha.

Appointment of new trustees

New trustees are recruited by open recruitment by existing trustees to fulfil specific roles on the trustees’ board. The potential trustee is then interviewed by the chairperson and secretary of the board regarding their willingness to become a trustee and their potential contribution to the Foundation is considered.

5

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Induction and training of trustees

The new trustee’s induction and training are similar to those set out for any employees of the Foundation. They are given an overview of the aims, objectives and achievements, introduced to the Trustees, are provided with a copy of the Trust deed (which explains trustees’ powers and responsibilities) and details of the recent financial performance of the Foundation. All new trustees meet with other existing trustees.

Funds held as custodian trustees on behalf of others

The Foundation holds no funds as custodian trustees on behalf of others.

Objectives and activities

The Trust’s objectives are listed below. The Trust’s primary activity is to liaise with and support the best performing charities in selected sectors but it will also undertake charitable activities directly if a need is established. The Foundation aims to become a knowledge hub and develop best practice guidelines for donors and recipients.

The objectives of the Foundation are as follows:

“Public Benefit" is the legal requirement for every organisation set up with charitable aims to be able to demonstrate that the charity has been set up to meet this requirement. The Trustees confirm that they have had regard to the Foundation Commission for England and Wales’ guidance on public benefit on reporting on the Charities benefits and achievements. The Trustees are confident that the activities have helped to achieve the Foundation's purposes and provide a benefit to the beneficiaries.

6

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Operating Review 2025

Achievements and performance

The Foundation has been operating since 2007. The trustees have continued to grant Qard Hasans as a means of funding capital-poor beneficiaries for the cost of income-generating programmes, which would then repay the Qard Hasans in time. Qard Hasan repayments are then recycled to help other charities & organisations to develop income-generating programmes in a similar manner.

Financial review

The Foundation received £356,631 (2024: £18,142) in donations from related parties and other donations. There is also £95,946 (2024: £91,167) receipts from investment and other income.

The Foundation paid out £318,939 (2024: £639,029) in direct donations and other expenses.

There is £416,850 (2024: £41,245) in cash at bank at the year end.

The net asset position as at 30 June 2025 is £1,419,883 (2024: £1,286,245).

Direct donations of £318,939 (2024: £639,029) are comprised of the following:

The Trustees consider that during the year good progress has been made against the Foundation's aims. The profitability of sponsoring corporates has enabled income to be maintained.

Plans for 2026

The Trustees’ one-year plan is to strengthen its ties with existing charities and to engage with other philanthropist charities and foundations. It anticipates making a similar level of donations and grants next year.

Statement of trustees’ responsibilities

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

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

7

Euro Quality Foundation

Trustees’ Report

for the financial year ended 30 June 2025

Statement of trustees’ responsibilities (continued)

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 Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditors

In so far the trustees are aware at the timing of approving our trustees’ annual report:

Independent auditors

Grant Thornton will be proposed for reappointment as auditors at the Trustees’ meeting.

By order of the Board _____ Rayan Kredi _______ He R M Khalid M N Mansha Trustee Trustee

Date: 17/12/2025 Date: 17/12/2025

8

Independent Auditor’s Report to the Trustees of Euro Quality Foundation

Opinion

We have audited the financial statements of Euro Quality Foundation (“the Foundation”), which comprise the Statement of Financial Activities, the Balance Sheet and Statement of Cash Flows for the financial year ended 30 June 2025, and the related notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and accounting standards issued by the Financial Reporting Council including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, Euro Quality Foundation’s financial statements:

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 ‘Responsibilities of the auditor for the audit of the financial statements’ section of our report. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the FRC’s Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. 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 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 Foundation’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

9

Independent Auditor’s Report to the Trustees of Euro Quality Foundation

Conclusions relating to going concern (continued)

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

Other information

Other information comprises information included in the annual report, other than the financial statements and our auditor’s report thereon including the Trustee’ Report. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

10

Independent Auditor’s Report to the Trustees of Euro Quality Foundation (continued)

Responsibilities of management and those charged with governance for the financial statements

As explained more fully in the trustees’ responsibilities statement, management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, and for such internal control as trustees determine 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, management is responsible for assessing the Foundation’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 management either intends to liquidate the Foundation or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Foundation’s financial reporting process.

Responsibilities of the auditor for the audit of the financial statements

We have been appointed as auditors under section 145 of the Charites Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

The objectives of an auditor 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 their 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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

11

Independent Auditor’s Report to the Trustees of Euro Quality Foundation (continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

Based on our understanding of the Foundation, we identified that the principal risks of non-compliance with laws and regulations related to data protection and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charity Act 2011 and local tax legislation. The audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment significant transactions, or incomplete/inaccurate disclosures in the financial statements.

In response to these principal risks, our audit procedures included but were not limited to:

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

12

Independent Auditor’s Report to the Trustees of Euro Quality Foundation (continued)

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008.

Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the trustees of Euro Quality Foundation as a body, for our audit work, for this report, or for the opinions we have formed.

Jason Crawford (Senior Statutory Auditor) For and on behalf of

Grant Thornton

Chartered Accountants & Statutory Auditors Dublin

Date: 17/12/2025

13

Euro Quality Foundation

Statement of financial activities

for the financial year ended 30 June 2025

2025 2024
Unrestricted Unrestricted
NOTES £ £
INCOMING RESOURCES
Incoming resources from generated funds
Donations 5 356,631 18,142
Activities for generating funds
Investment income 5, 6 90,037 88,110
Other income 5 5,909 3,057
Total incoming resources 452,577 109,309
RESOURCES EXPENDED
Expenditure on charitable activities 8 (318,939) (639,029)
Total resources expended (318,939) (639,029)
Net incoming/ (outgoing) resources 133,638 (529,720)
FUND BALANCES
Fund balances brought forward at 1July2024 1,286,245 1,815,965
Fund balances carried forward at 30 June 16 1,419,883 1,286,245
2025

All amounts relate to continuing operations.

The notes on pages 17 to 23 form part of these financial statements.

14

Euro Quality Foundation

Balance Sheet

As at 30 June 2025

2025 2024
NOTES £ £
FIXED ASSETS
Investments 10 772,033 979,000
772,033 979,000
CURRENT ASSETS
Debtors 11 260,000 275,000
Cash at bank 12 416,850 41,245
676,850 316,245
Creditor: amounts falling due within oneyear 13 (29,000) (9,000)
Net current assets 647,850 307,245
Net assets 1,419,883 1,286,245
The funds of the Foundation
Unrestricted income funds 15 1,419,883 1,286,245

The financial statements were approved by the Trustees and authorised for issue by the board on 17/12/2025

Signed on behalf of the board:

____

R M Khalid Trustee

____ Wb M N Mansha Trustee

The notes on pages 17 to 23 form part of these financial statements.

15

Euro Quality Foundation

Statement of Cash Flows

As at 30 June 2025

2025 2024
£ £
CASH FLOWS FROM OPERATING ACTIVITIES
Net incoming/(outgoing) resources 133,638 (529,720)
Decrease in debtors 15,000 5,000
Increase in creditors 20,000 1,000
Net cash generated/ (utilised) from operating 168,638 (523,720)
activities
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of investments (357,569) (482,000)
Proceeds on disposal of investments 564,536 250,000
Net cashgenerated/ (utilised) in investing activities 206,967 (232,000)
Net increase/(decrease) in cash during the year 375,605 (755,720)
Cash at the beginning of theyear 41,245 796,965
Cash at the end of theyear 416,850 41,245
Cash at the end of the year comprise of
Cash at bank 416,850 41,245

The Foundation has no debt and thus no reconciliation of net debt presented.

The notes on pages 17 to 23 form part of these financial statements.

16

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

1. General information

Euro Quality Foundation is registered as a charity by HMRC, Foundation number XT5290. The Trustees of the charity are listed on page 1. The registered office of the charity is also listed on page 1 together with details of the professional advisers and bankers. The charity is registered with the Charities Commission of England & Wales under reference number 1119242.

2. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements are prepared on a going concern basis, under the historical cost convention unless otherwise noted in the accounting policies below. They have been prepared in accordance with applicable law and accounting standards issued by the Financial Reporting Council, including FRS102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” (“FRS102”), and the Statement of Recommended Practice – Accounting and Reporting by Charities, effective 1 January 2019 (“SORP”).

The Euro Quality Foundation meets the definition of a public benefit entity under FRS 102.

b) Going concern

Given the level of funds the charity holds, the trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

c) Currency

Items included in the financial statements of the charity are measured using the currency of the primary economic environment in which the charity operates (“the functional currency”). The financial statements are presented in Sterling, which is the charity’s functional and presentation currency, and is denoted by the symbol “£”.

d) Incoming resources

Voluntary income

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Bank interest

The Foundation does not invest in accounts, which generate interest.

17

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

2. Accounting policies (continued)

Investment and other income

Investment income is included when receivable.

Other income is recognised in the period in which it is receivable and to the extent it has been earned.

Ethical Income

Ethical income receivable is included in the financial statements in the period in which it is receivable by the Foundation.

e) Cash at bank

Cash at bank includes deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

f) Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans advances are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

g) Investments

Investments in unlisted investments are classified as fixed asset investments as the Foundation intends to hold these on a long-term basis and are held at cost less annual impairment.

h) Financial instruments

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction price and subsequently measured at their settlement value, unless the arrangement constitutes a financing transaction. Financing transactions are initially measured at the present value of the future receipts discounted at a market rate of interest, and are subsequently carried at amortised cost, using the effective interest rate method.

i) Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

18

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

2. Accounting policies (continued)

Grants payable

Donations are recognised in the financial statements as liabilities after they have been approved by the trustees, even if there are conditions attached to them. This is because there is a valid expectation by the recipients that they will receive the grant. Where a donation is awarded for a period of greater than one year, future instalments of which are subject to satisfactory reports to the Trust, the future grant instalments are included in commitments but are not recognised in the financial statements until satisfactory reports are received. This is because the terms on which these grants are awarded do not create a valid expectation of receipt until the Trust’s Trustees are satisfied with the reports received on the use made of the previous year’s instalments.

Governance costs

Governance costs are the costs associated with the governance arrangements of the Foundation, which relate to the general running of the Foundation as opposed to those costs associated with fundraising or charitable activity.

Pension costs

The Foundation does not operate a pension scheme, and its trustees receive no remuneration.

j) Unrestricted funds

Unrestricted funds are amounts, which are expendable at the discretion of the trustees in furtherance of the aims of the Trust.

3. Critical accounting judgements and estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may ultimately differ from these estimates.

In the process of applying the accounting policies, management has made the following judgments and estimates, which have the most significant effect on the amounts recognised in the financial statements:

(a) Impairment of loan advances

Provisions are made for specific and groups of accounts, where objective evidence of impairment exists. The Foundation evaluates these accounts based on available facts and circumstances, including, but not limited to, the length of the relationship with the Foundation, the Foundation credit status based on known market forces, average age of accounts, collection experience and historical loss experience.

In assessing impairment of investments, management estimates the recoverable amount of each asset or cash generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty related to assumptions about future operating results and the determination of a suitable discount rate. No impairment has been recognized during the financial year.

19

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

4. Net incoming/(outgoing) resources

Net incoming/(outgoing) resources is stated after charging:

2025 2024
£ £
Auditor's remuneration 1,000 1,000
============= =============
5.
Incoming resources
Unrestricted Total
funds 2025 2025
£ £
Incoming resources from generated funds
Donations from related parties 356,036 356,036
Other donations 595 595
Total income relating to fundraising 356,631 356,631
Activities for generating funds
Investment income 6 90,037 90,037
Other income 5,909 5,909
Total income fromgenerating funds 95,946 95,946
Total incoming resources 452,577 452,577
Unrestricted Total
funds 2024 2024
£ £
Incoming resources from generated funds
Donations from related parties 9,406 9,406
Other donations 8,736 8,736
Total income relating to fundraising 18,142 18,142
Activities for generating funds
Investment income 6 88,110 88,110
Other income 3,057 3,057
Total income fromgenerating funds 91,167 91,167
Total incoming resources 109,309 109,309

6. Investment income

2025 2024
£ £
Income from unlisted investments 90,037 88,110

20

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

7. Analysis of staff costs, trustee remuneration, expenses and the cost of key management personnel

personnel
2025 2024
Number Number
The number of trustees at the end of theyear 3 3

None of the trustees received remuneration during the year (2024: £Nil) and the Foundation had no employees (2024: £Nil) or salary costs. No expenses have been paid to the trustees during the year (2024: £Nil). There is no professional indemnity insurance taken out on behalf of the Trustees (2024: £Nil).

8. Expenditure on charitable activities

2025 2024
£ £
Unrestricted Unrestricted
Charitable activities
Emergency & Healthcare 62,776 105,300
Education & Training 171,834 265,583
Social Community Welfare 83,289 262,421
Other support costs 1,040 5,725
318,939 639,029

9. Taxation

The Foundation is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in the furtherance of the Foundation’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

The Foundation is not registered for VAT and accordingly, all their expenditure is recorded inclusive of any VAT incurred.

21

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

10. Investments

10. Investments
Unlisted Listed Total
Investments Investments
Foundation £ £ £
Cost and net book value
At 1 July 2024 747,087 231,913 979,000
Additions 357,569 - 357,569
Disposals (564,536) -
 (564,536)
At 30June 2025 540,120 231,913 772,033

Investments relate to investments made in unlisted and listed entity’s where less than a significant influence is held. The fair value of the unlisted investments cannot be reliably measured in line with the hierarchy in FRS102 Appendix to Section 2, and as a result it is held at cost. Listed investments, however, have been measured at their market value as at the reporting date. There are no provisions against this provision at 30 June 2025 (2024: £Nil).

These long-term investments are held in the United Kingdom and exist primarily to provide an investment return for the foundation.

11. Debtors

2025 2024
£ £
Loan advances(including Qard Hasans) 260,000 275,000

12. Cash at bank

2025 2024
£ £
Cash at bank 416,850 41,245

13. Creditors: amounts falling due within one year

2025 2024
£ £
Accruals 10,000 9,000
Other creditors 19,000 -
29,000 9,000

14. Financial commitment

At 30 June 2025 the Foundation had no financial commitments (2024: £Nil).

22

Euro Quality Foundation

Notes to the Financial Statements

for the financial year ended 30 June 2025

15. Unrestricted funds

Balance Incoming Outgoing Balance
1 July 2024 funds funds 30 June 2025
Group £ £ £ £
General funds 1,286,245 452,577 (318,939) 1,419,883
1,286,245 452,577 (318,939) 1,419,883

16. Analysis of net assets between funds

2025 Unrestricted Total funds
funds
£ £
Investments 772,033 772,033
Current assets 676,850 676,850
Creditors: fallingdue within oneyear (29,000) (29,000)
1,419,883 1,419,883
2024 Unrestricted Total funds
funds
£ £
Investments 979,000 979,000
Current assets 316,245 316,245
Creditors: fallingdue within oneyear (9,000) (9,000)
1,286,245 1,286,245

17. Ultimate controlling party

The trustees are deemed the ultimate controlling party due to their position within the Foundation.

18. Related party disclosures

The Foundation received £206,036 (2024: £Nil) from Corvedale Fresh Limited. Corvedale Fresh Limited is defined as a related party under FRS 102 as one of the trustees of Euro Quality Foundation is also a director of Corvedale Fresh Limited.

The Foundation received £150,000 (2024: £Nil) from Newington Limited. Newington Limited is defined as a related party under FRS 102 as one of the trustees of Euro Quality Foundation is also a director of Newington Limited.

19. Events since end of financial year

There have been no significant events affecting the Foundation since the financial year-end.

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