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← Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited

2023-12-31-accounts

Charity registration number 1122264

Company registration number 06391353 (England and Wales)

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees M Khoja
T Jivraj
I Ramji
M A Railey
F Bandali
S Hassam
I Janmohamed
H Elias
Secretary I Ramji
Charity number 1122264
Company number 06391353
Registered office 17 Clifton Road
Balsall Heath
Birmingham
B12 8SX
Auditor Deitch Cooper LLP
3 Hobbs House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent auditor's report 4 - 6
Statement of financial activities 7
Statement of financial position 8
Notes to the financial statements 9 - 19

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Income Funds's governing document, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The principal object of the Charity is the advancement, preservation and welfare of Islam in accordance with the doctrines of the Shia Ithna-Asheri Jafari faith and this is achieved through offering educational opportunities in the context of nursery, secular and religion education facilities.

The Charity provides a range of community activities including classes, seminars and a day nursery.

The wholly owned subsidiary of the Charity manages letting of various residential properties held by the Charity as investment property. The Charity also holds additional investment properties which are let to commercial tenants.

The Trustees have paid due regard to guidance issued by the Charity Commission, including its supplementary public benefit guidance on the advancement of religion, in deciding what activities the Income Funds should undertake.

Achievements and performance

During the year the Charity provided the following educational facilities and activities:

Muhammadi Madrasah

Muhammadi Nursery

ME School of Excellence and Examination Centre

The syllabus and scheme of work developed for Key Stage I and II, in addition, to the bespoke 11+ course and test material, is consistently reviewed and updated in line with the National Curriculum. In Secondary and A Level, MES offer English, Mathematics and all three Sciences from Year 7 to AS2, as well as iGSCE English to students from Year 9 and controlled science experiments.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

The results for the year are shown on the Statement of Financial Activities and in the notes to the financial statements. The gross receipts of the Charity were £642,902 (2022: £447,286). Income from investment properties has increased compared to last year whilst income from charitable activities has remained consistent with last year. During the year, the fair value of investment properties increased by £1,195,811 (2022: £667,326). An overall net surplus for the year of £1,281,376 was achieved (2022: £712,935). Unrestricted funds of £3,736,162 (2022: £2,454,786) have been carried forward to forthcoming years. The Charity held no restricted funds or endowment funds during the year.

It is the policy of the Income Funds that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Income Funds’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The Trustees keep under regular review the major risks to which the Charity is exposed, to ensure that steps are taken to mitigate those risks as far as possible.

Structure, governance and management

The Income Funds is a charitable company limited by guarantee. The Charity was set up and is constituted by a Memorandum of Association dated 5 October 2007.

The Charity is affiliated to the Khoja Shia Ithna-Asheri Muslim Community of Birmingham.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

M Khoja T Jivraj I Ramji H Hudda (Resigned 1 January 2023) M A Railey F Bandali S Hassam I Janmohamed H Elias (Appointed 9 January 2023)

The Trustees are appointed in accordance with the Articles of Association at the Annual General Meeting, or by the Trustees should a vacancy arise during the year. There must be a minimum of two Trustees and one third are required to retire by rotation each year but may stand for re-election should they be eligible.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The Trustees meet regularly to manage strategy and the organisation. The day to day operations for the different educational activities are delegated to nominated individuals. The management of residential investment properties is undertaken by Khoja Shia Ithna-Asheri Muslim Community (Jaafery) Limited ("Jaafery"), the wholly owned subsidiary of the charitable company.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of Trustees' responsibilities

The Trustees, who are also the directors of Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited for the purpose of company law, 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).

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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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 Companies Act 2006. They 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.

Auditor

In accordance with the company's articles, a resolution proposing that Deitch Cooper LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report was approved by the Board of Trustees.

.............................. H Elias Trustee

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

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

Opinion

We have audited the financial statements of Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited (the ‘Income Funds’) for the year ended 31 December 2023 which comprise the statement of financial activities, the statement of financial position 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 Financial Reporting Standard 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:

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 Income Funds 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 Income Funds’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. 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.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Income Funds and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

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

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Income Funds for the purpose 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 Income Funds’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.

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 our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this, we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of journals.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates including those that relate generally to the operating aspects of the business. There are many laws and regulations, relating principally to the operating aspects of the company, that typically do not affect the financial statements and as such are not captured by the entity's information systems relevant to financial reporting. It is the responsibility of management to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations. The auditor is not responsible for preventing non-compliance and we cannot be expected to detect non-compliance with all laws and regulations. Representations were obtained from the board of directors that there is no identified or suspected non-compliance with any laws and regulations.

Our audit procedures focused on laws and regulations that are generally recognised to have a material effect on the financial statements or a direct effect on the determination of material amounts and disclosures, including the Charities (Accounts and Reports) Regulations 2008 and the Charities Act 2011. We considered the risk of acts by the company that may be contrary to these laws and regulations, including fraud. We assessed the extent of compliance with the laws and regulations identified through making enquiries of management and inspecting documentation and the audit team remained alert to instances of non-compliance with laws and regulations throughout the audit. Any unusual findings were investigated.

As in all of our audits, we also addressed the risk of management override of internal controls including testing and evaluation of whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. We completed a review of transactions and journals taken from throughout the period. We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud my involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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.

Mohamedkazim Bhaloo (Senior Statutory Auditor) for and on behalf of Deitch Cooper LLP

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

Accountants Statutory Auditor 3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

**Unrestricted ** Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Donations and legacies 3 23,290 8,523
Charitable activities 4 266,110 181,960
Investments 5 353,502 255,705
Other income - 1,098
Total income 642,902 447,286
Expenditure on:
Cost of raising funds 6 308,039 214,747
Charitable activities 7 249,298 186,930
Total expenditure 557,337 401,677
Revaluation of investment properties 11 1,195,811 667,326
Net income for the year/
Net movement in funds 1,281,376 712,935
Fund balances at 1 January 2023 2,454,786 1,741,851
Fund balances at 31 December 2023 3,736,162 2,454,786

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
13
Investment property
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets excluding pension liability
Net assets
Income funds
Unrestricted funds		 2023
£
£
15,091
6,838,000
1
6,853,092
136,429
340,118
476,547
(153,959)
322,588
7,175,680
(3,439,518)
3,736,162
3,736,162
3,736,162
3,736,162		 2022
£
£
21,990
5,642,189
1
5,664,180
43,313
375,202
418,515
(124,909)
293,606
5,957,786
(3,503,000)
2,454,786
2,454,786
2,454,786
2,454,786

The financial statements were approved by the Trustees on .........................

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

H Elias Trustee

Company registration number 06391353 (England and Wales)

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Khoja Shia Ithna-Asheri Muslim Community (Baquir) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 Clifton Road, Balsall Heath, Birmingham, B12 8SX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Income Funds's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The Income Funds is a Public Benefit Entity as defined by FRS 102.

The Income Funds has taken advantage of the provisions in the Charities SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Income Funds. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements are separate company financial statements of the Charity and not of its group. The Charity is part of a wider group and consolidated financial statements are prepared which include the Charity and its group.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Income Funds has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Income Funds.

1.4 Income

Income is recognised when the Income Funds is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Income Funds has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Income Funds has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% Straight line Equipment 25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Investment properties rented to another group entity are accounted for using the cost model. Other investment properties are subsequently measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the income and expenditure account.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the Income Funds. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the Income Funds reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.11 Financial instruments

The Income Funds has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Income Funds's balance sheet when the Income Funds becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Income Funds’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Income Funds is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Critical accounting estimates and judgements

In the application of the Income Funds’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Estimates include the valuation of tangible assets and investment properties. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 23,290 8,523
4 Income from charitable activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Secular Education
Income from charitable activities 81,282 43,264
Madressa Fees
Income from charitable activities 54,438 30,191
Nursery Fees
Income from charitable activities 130,390 108,505
266,110 181,960
5 Income from investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Rental income 353,502 255,705

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6 Cost of raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Investment property costs
Share of governance costs 838 775
Property management agents 5,200 9,970
Depreciation and impairment 5,750 5,561
Support costs 296,251 198,441
Investment property costs 308,039 214,747
308,039 214,747

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Expenditure on charitable activities

Secular
Education
Madressa
2023
2023
£
£
Staff costs
19,671
-
Depreciation and impairment
1,254
835
Activities undertaken directly
28,718
65,080
49,643
65,915
Share of support costs (see note 9)
3,193
3,374
Share of governance costs (see note 9)
837
838
53,673
70,127		 Nursery
2023
£
91,727
4,705
6,791
103,223
21,438
837
125,498		 Total
Secular
Education
Madressa
2023
2022
2022
£
£
£
111,398
16,653
-
6,794
1,332
823
100,589
5,940
36,397
218,781
23,925
37,220
28,005
8,513
3,259
2,512
775
775
249,298
33,213
41,254		 Nursery
2022
£
85,925
5,583
4,466
95,974
15,714
775
112,463		 Total
2022
£
102,578
7,738
46,803
157,119
27,486
2,325
186,930

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Support costs allocated to activities

Secular
Education
2023
£
Operating lease charges
1,635
Premises
94,765
General office costs
4,750
Finance costs
200,899
Insurance
10,620
SZ premises costs
615
Legal and professional
4,400
Bank charges
1,473
Promotion and marketing
440
Bad debts
4,659
Governance
3,350
327,606
2023
Governance costs comprise:
£
Audit fees
3,350
3,350		 Total
2022
£
3,112
52,425
3,852
133,808
5,586
3,888
8,707
13,631
918
-
3,100
229,027
2022
£
3,100
3,100

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Other pension costs		 2023
Number
11
2023
£
110,779
619
111,398		 2022
Number
12
2022
£
102,096
482
102,578

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Employees

(Continued)

There were no employees whose annual remuneration was more than £60,000.

11 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Revaluation of investment properties 1,195,811 667,326

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13 Tangible fixed assets

Fixtures and
fittings
£
Cost
At 1 January 2023
70,966
Additions
5,645
At 31 December 2023
76,611
Depreciation and impairment
At 1 January 2023
51,064
Depreciation charged in the year
11,500
At 31 December 2023
62,564
Carrying amount
At 31 December 2023
14,047
At 31 December 2022
19,902		 Equipment
£
50,668
-
50,668
48,580
1,044
49,624
1,044
2,088		 Total
£
121,634
5,645
127,279
99,644
12,544
112,188
15,091
21,990

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14 Investment property

Fair value
At 1 January 2023
Net gains or losses through fair value adjustments
At 31 December 2023		 2023
£
5,642,189
1,195,811
6,838,000

Investment properties rented to another group entity have been accounted for using the cost model. Other investment properties are carried at fair value. The fair value of the revalued investment property has been arrived at by the Trustees from reviewing market evidence, from sources not connected with the charity, and nearby recent transactions and events.

15 Fixed asset investments

Cost or valuation
At 1 January 2023 & 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
Other investments comprise:
Notes
Investments in subsidiaries
23
16
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by fellow group undertakings
Other debtors
Prepayments and accrued income		 Other
investments
£
1
1
1
2023
2022
£
£
1
1
2023
2022
£
£
29,287
14,391
95,822
27,822
2,570
-
8,750
1,100
136,429
43,313		 Other
investments
£
1
1
1
2023
2022
£
£
1
1
2023
2022
£
£
29,287
14,391
95,822
27,822
2,570
-
8,750
1,100
136,429
43,313
1
1
2022
£
1
2022
£
14,391
27,822
-
1,100
43,313

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Loans and overdrafts

Bank loans
Payable within one year
Payable after one year		 2023
£
2,722,518
36,000
2,686,518		 2022
£
2,750,000
-
2,750,000

The long-term bank loan represents an interest-only mortgage relating to certain investment properties, repayable other than by instalments. A market rate of interest is charged until the loan is repaid.

Bank loans are secured by way of charges over investment properties owned by the group.

18 Creditors: amounts falling due within one year

18
Creditors: amounts falling due within one year
Notes
Bank loans
17
Other taxation and social security
Trade creditors
Amount owed to parent undertaking
Other creditors
Accruals and deferred income
19
Creditors: amounts falling due after more than one year
Notes
Bank loans
17
Amount owed to parent undertaking
20
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2023
£
36,000
-
5,935
72,900
28,104
11,020
153,959
2023
£
2,686,518
753,000
3,439,518
2023
£
619		 2022
£
-
502
4,522
80,679
28,205
11,001
124,909
2022
£
2,750,000
753,000
3,503,000
2022
£
482

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

KHOJA SHIA ITHNA-ASHERI MUSLIM COMMUNITY (BAQUIR) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
General funds
Previous year:
At
General funds		 1 January
2023
Incoming
resources
Resources
expended
Gains and
losses
At 31
December
2023
£
£
£
£
£
2,454,786
642,902
(557,337)
1,195,811
3,736,162
1 January
2022
Incoming
resources
Resources
expended
Gains and
losses
At 31
December
2022
£
£
£
£
£
1,741,851
447,286
(401,677)
667,326
2,454,786

22 Related party transactions

During the year, there was a donation of £3,000 from Lady Sumayya Humanitarian Aid Foundation an organisation in which Muslim Khoja is one of the trustees. (2022: £nil).

The company has taken advantage of the exemption available under FRS102 whereby it has not disclosed transactions with the ultimate parent undertaking or any wholly owned subsidiary undertaking of the group.

23 Subsidiaries

These financial statements are separate company financial statements of the Charity and not of its group.

Separate company financial statements of the Charity are required to be prepared by law. The Charity is exempt by virtue of the Companies Act 2006 from the requirement to prepare group accounts. Separate consolidated financial statements which include the Charity and all its subsidiaries are prepared and publicly available.

Details of the Charity's subsidiaries at 31 December 2023 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Khoja Shia Ithna-Asheri United Kingdom Property rental business Ordinary 100.00
Community (Jaafery) Limited

Investments in subsidiaries are all stated at cost.

24 Ultimate controlling party

The ultimate controlling party is the Khoja Shia Ithna-Asheri Muslim Community of Birmingham (UK registered charity no. 1170675), whose principal place of business is 17 Clifton Road, Balsall Heath, Birmingham, B12 8SX. The Khoja Shia Ithna-Asheri Muslim Community of Birmingham prepares publicly available group accounts in which the Charity is consolidated.