Charity registration numbér 1132039 (England and Wales) AL- FALAH ISLAMIC EDUCATION CENTRE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 AL- FALAH ISLAMIC EDUCATION CENTRE LEGAL AND ADMINISTRATIVE INFORMATION Trustees MrAAAMiah MrA Miah Mr N H Karbani Charity reglstratlon England and Wales 1132039 Independent •xamlner Ashlon & Co Accountants Limited 2 Crescent Parade Uxbridge Middlesex United ￿ngdorn UB10 OLG AL- FALAH ISLAMIC EDUCATION CENTRE CONTENTS Page Trustees report Independent examinerfs report Statement of finanaal activities Balan￿ sheet Notes to Ihe financial statements 6-11 AL- FALAH ISLAMIC EDUCATION CENTRE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and financlal statements for the year ended 31 March 2025. Tlie financial statenicnts have been prepared In accordance with the accountlng policies set out in note 1 to the financial statements and comply with the charity's governlng document, Ihe Charities Act 2011, FRS 102 The Financial Reporting standa￿ applicable In the UK and Republic of Ireland" and the Charitses SORP "Accounting and Reporting by Charities: Statement of Recommended Practlce applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". ObJectNes and activities The charity's objects are to develop a place of worship for Muslims living in and around West Drayton. The charity also organises and participates in community events to promote equality, diversity and good ra￿ relations and there has been no change in these during the year. Public benefit Al-Falah Islamic Education Centre meets the Charity Commissions public benefit criteria under both the advancement of education and the advancement of cits"zenship or community development objectives. The trustees have complied with Section 17 of the Charities Act 2011 with regards to public benefit guidance issued by the Charity Commission. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activitses the charity should undertake. Achievements and performance Financial review The Charity has managed to bring in a stable stream of donations and has kept costs at a minimum. The charity also achieved significant results in the most cost effective ways possible which is reflected by the retained funds by the charity. The funds can be used to start new charitable projects. Future Plans AL-Falah Islamic Education Centre is a well established charity organisation supporting Muslim families across West Drayton. Our future aim includes: Continue to diversify funding streams, so that core organisats'onal costs are met from a range or sources Involving local residents and groups in issue and development likely to affect quality of life in the local area Developing new projects and initiatives that meet the current and emerging needs of the Muslim community Strengthening internal governance structures and broadening the role and involvement of trustees It is the policy of the charity that unrestncted 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 charity'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 have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. Structure, governance and management The charity is controlled by its goveming document, a (x)nstituts"on and constitutes an unincorporated charity. The trustees who served during the year and up to the date of signature of the financial statements were: MrAAAMiah MrA Miah Mr N H Kart)ani None of the trustees has any beneficial interest in the charity. AL- FALAH ISLAMIC EDUCATION CENTRE TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Al-Falah Islamlc Educatlon Centre was eslabllshed In 2009 as unlncorporated charlty The charfly currently has three trustees. The chanty Is belng managed and admlnlstered by Ils trustees. The truslees report was approved by the Board of Truslees MrAAAMiah Trustee MrA Miah Trustee 27 January 2026 AL- FALAH ISLAMIC EDUCATION CENTRE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AL- FALAH ISLAMIC EDUCATION CENTRE I report to the trustees on my examination of the financial statements of Al- Falah Islamic Education Centre (the charity) for the year ended 31 March 2025. Responslblllties and basls of report As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011. I report in respect of my examination of the charity's financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011. Independent examinerfs statement Since the charity's gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. 1 confirm that l am qualified to undertake the examination because l am a member of ACCA. which is one of the listed bodies. Your attention is drawn to the fact that the charity has prepared the finanaal statements in accordance with the relevant version of the Ststement of Recommended Practi￿ applicable to charits'es preparing their financial statements in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounts'ng and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. l understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK GenerallyAccepted Accounting Practi￿. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respcct of the chanty as required by section 130 of the Charities Act 2011. the financial statements do not accord Ihose records; or the financlal statements do not c(xnply wilh Ihe apF4Kable requirements concerning the form and content of financial statements sel out in Ihe Cha(Ibes (ACc￿nts and Reports) Regulations 2008 other than any requirement that the financial stalefTients givo a true afid fair view, which Is not a matter considered as part of an Independent exarTiinaiion: I havo no concems and havo como across no othor rruttors In connoction with the examination to which attentlon should be drawn In Ihis report in order to enable a proper understanding of the financial statements to be reached. Mohammad Saqib Rana FCCA Ashton & Co Accountants Limited Chartered Certified Accountants 2 Crescent Parade Uxbridge Middlesex UB10 OLG United Kingdom Dated: 27 January 2026 AL- FALAH ISLAMIC EDUCATION CENTRE STATEMENT OF FINANCIAL ACTivmES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED JI MARCH 2025 fvnd• 2024 2025 Not 612,(lJ3 428.156 Total 612.lJ)3 42&156 Exp•no1￿r• on: Clwnlth KUviliO• 110.221 1Tr).1WJ Total •¥p•ndltur• 110,221 ICx).19) N•1 trKom• •KI nwv•m•nl In fund• 501,782 327,966 R•cMclll•tlon of fvnds: FuTrl b01p￿ceS 811 WII 20?4 520.281 192,315 Fund b•l•nc•• •t 31 M•rch 2025 1,022,fffj3 520.281 Tho IlAlomonl of fin8nci818ctlvlbos Includ08 All g8lns •nd108s0g rcwnisod In Ihe yoar. AN Inccrn ond •xpondrtwe derive Ir(xn conlinuing acbwtses. ,AL. PA￿l-￿LA￿C LI>UCAiiOM LtNINi' i• IRI,A41 840,IJO ?16. lot È16.102 t08,281 •mMts ifilllng lkné Vèaf 1483.(MX)) (188,000) I￿ currem (iiabiimeS)la55cts (266,898) 520,281 '￿al èsBets currenl Ilabllftiés I,022,(￿3 520,281 l1• of th• th•rfty IUnrEbticted funds 13 1,022,063 520,281 1,022,063 520,281 Tl* finaThJal sts￿￿nts were approved by the trustees on 27 January 2026 MrAAAMiah MrA Miah Trustee AL. FALAH ISLAMIC EDUCATION CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Unre8trtcted fuiids The Iinreslrlctod frinds of tlio Llinrlty LX)11)i)rlso Ilio uiiexi)oiidod bdlances of donations and grants which are not subject to specific coiiditloiis by doi)or8 aiid grariturs as to how they may be used. These include desigiic2led fuiids IvlilLlI IiavLI boL)11 SALIt usldo uut of unrostrlctod furids by tho trustees for specific purposes.. At 1 Aprll 2024 Incomlng Resources At 31 March resources expended 2025 General funds 520,281 612,003 (110,221) 1,022,063 Previo-us year: At 1 April 2023 Incoming Resources At 31 Mar-clii resources expended 2024 General funds 192,315 428,156 (100,190) 520,281 14 Related party transactions There were no disdosable related party transactions during the year (2024 - none). 11 AL- FALAH ISLAMIC EDUCATION CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Taxatlon The d)arity is exempl from laxalion on its activitles because all rts Incm is applied for charilable purposes. Tanglble fixed assets Fmhold land and bulldlngs Cost Addibons 1.288.961 At 31 March 2025 1,288,961 Carrylng amount At 31 March 2025 1,288,961 10 Debtors 2025 2024 Amounts falllng due withln one year: Other debtors 167.651 11 Loans and overdrafts 2025 2024 Other loans (Qard-e-Hasna) 483,000 188,000 Payable within one year 483,000 188,000 Other loans (Qard-e-Hasna) are interest free loans given by the local community for the development of the charity and are repayable on demand. 12 Creditors: amounts falllng due withln one year 2025 2024 Borrowings 483,000 188,000 AL- FALAH ISLAMIC EDUCATION CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Exp•nd6turn on charftabl• actlvltles Charltabla Charltabl• •xp•ndltur• •xp•ndltur• 2025 2024 Dlrect costs Staff costs Renl Rates Prinb'ng and statsonery Repairs and maénlenance Ught and heat DonatK)ns Sundry Telephone Computer Cost Evenl Costs Insurance Legal costs 20,257 17,281 13,009 4,503 3,414 9,212 23,634 17,981 4,154 6,726 2,779 18,371 900 430 226 2,929 22,060 359 1,813 32,570 3,403 4,400 110,221 100,190 Analysls by fund Unrestricted funds 110,221 100,190 Net movement In funds 2025 2024 The net movement In funds is stated after chargingl(crediting): Fees payable for the independent examlnatson of the chantys financial slatements Trustees None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Employees The average monthly number of employees during the year was: 2025 Number 2024 Number Employment costs 2025 2024 Wages and salaries 20,257 23,634 AL- FALAH ISLAMIC EDUCATION CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng polkl•s (Contlnued) Bask flnanclal assees Basic fir￿nCIal assels, which Indudo dcblors and cash and,bank balances, are inilially measured at trans8(*Dn induthng transaction costs arKI are subsequently carrled at amortlsed cost using the effedwe Interesl melhod unless the arrangement constitutes a finanang IransactK)n, Whe￿ the transaclK)n Is measured at the presenl value of the future receipls dlscounted at a market rale of interest. Financial assets dasg'fied as receivable wilhln ￿e year are not amortised. Bask financlal IlablHtles Baslc final￿1 kalxlities, induding credit￿S and bank k)ans are Inltially recognised al transacléon price unless the arraryement constitutes a financlng transaction. where the debt Instrument Is measured at the present value of the future payments dlscounted at a market rale of interest. Financlal liabillties dassified as payable thin one year are nol amortis￿. Debl N￿ruMentS are subsequently carried at amortised cost. using the effeclive interest rate meth(xJ. Trade credrtors are Obl￿allOnS to pay for goods or services thal have been acquired in the ordinary course of operations from supplEr5. Amounts payable are clasSif￿d as current liabilities if payment Is due within one year or less. If not. they are presented as rK)n-current liabililies. Trade creditors are recc>Jnised initially at transact￿n price arKJ subsequently measured at arnOrt￿ed cost using Ihe effective interest method. Derecognltion of financlal Ilabllltles Finanaal lialy'lities are derecngnised when the charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cosl of any unused holiday enbtlement Is recognised in the period in which the ernployee's services are receNed. Temination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Critical accountlng estlmates and Judgements In the applicati(￿ of the charity's accountwry 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 estwnates and associated assumptions are based on historical experience and other factors that are c(xwdered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ong￿.ng basis. Revisions to accounting estimates are recognised in the period in ￿lch 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 pericxls. Donations and legacles Unrestrlcted Unrestricted funds funds 2025 2024 Donations and gifts 612.003 428.156 AL- FALAH ISLAMIC EDUCATION CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles (Continued) Legacies are reLx)gnised on receipt or otherwise if the charity 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. 1.5 Expendlture 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 depreaation 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: Freehold land and buildings No depreciation 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 Impairment of fixed assets At each reporting end date, the charity 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). 1.8 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 t)orrowings in current liabilities. 1.9 Financlal Instruments The charity 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 charity's balan￿ sheet when the charity 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 enfor￿able 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. AL- FALAH ISLAMIC EDUCATION CENTRE NOTES TO THÈ FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles Charity Infomiatlon Al- Falah Islaniic Education Centre is an unincorporated charity. It is governed by its constitution amended on 30 June 2015. The registered office of the charity Is 15 Vine Close, West Drayton, UB7 9HH. 1.1 Accountlng conventlon The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. 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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are sct out bclow. 1.2 Going concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concem 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 finanaal statements. Endowment funds are subject to specific conditions by donors that the capital must be maintsined by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any perfornian￿ 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 charity has been notified of the donation, unless perfomiance conditions require deferral of the amount. Incorne tsx recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.