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2020-10-31-accounts

ANNUAL REPORT 2019/2020

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 October 2020

FOR MAJLIS KHUDDAMUL AHMADIYYA (UK)

(A COMPANY LIMITED BY GUARANTEE)

WWW.KHUDDAM.ORG.UK COMPANY NUMBER: 07117137 CHARITY NUMBER: 1135657

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 October 2020

Table of Contents

Reference and Administrative Details 02
Report of the Trustees 03
Independent Examiner’s Report 09
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Financial Statements 13

REFERENCE & ADMINISTRATIVE DETAILS

TRUSTEES Abdul Quddus Arif Usman Ahmed Hamid Mahmood Chaudhary Tauseef Ahmed COMPANY SECRETARY Tauseef Ahmed REGISTERED OFFICE Aiwan-E-Mahmood Unit 2, Bourne Mill Business Park Centre Park Farnham, Surrey GU9 9PS REGISTERED COMPANY NUMBER 07117137 (England and Wales) REGISTERED CHARITY NUMBER 1135657 INDEPENDENT EXAMINER Nasir Mahmud FCA Chartered Accountants Falcon House 257 Burlington Road New Malden, Surrey KT3 4NE BANKERS NatWest Plc 1000 Cathedral Square Cathedral Hill Guilford, Surrey GU2 7YL

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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OBJECTIVES & REPORT OF ACTIVITIES THE TRUSTEES

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 October 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES

Each year the trustees review the objectives and activities of the charity to ensure they continue to reflect the charity’s aims. Following are the overarching objectives of the charity which remains unchanged:

1. The advancement of Muslim

faith worldwide as expounded by Hazrat Mirza Ghulam Ahmad[as] of Qadian, the Promised Messiah and the founder of the Ahmadiyya movement and interpreted by any of his successors known as Khalifat-ul Masih. The present Khalifah is Hazrat Mirza Masroor Ahmad Khalifatul-Masih V[aba] .

  1. To provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age infirmity or disability, financial hardship or social circumstances with the objective of improving their conditions of life.

2. The advancement of Islamic

education through the provision of lectures, seminars and discussion forums.

  1. Any other charitable purpose as the trustees may from time to time determine.

ACTIVITIES

Following are some of the activities for the year undertaken by the charity to meet our objectives and for public benefit:

For publication of information, websites were developed and enhanced, books and magazines were published and new mobile phone applications were developed.

Links with local communities and other charities were established and enhanced by delivering sustainable projects including tree planting, feeding the homeless, visits to nursing homes and hospitals, litter picking, donation to other charities, etc.

Members of the charity volunteered to help in disaster response activities in the UK and abroad.

Various workshops for business start-ups and CV building, as well as business and investing forums were arranged by the charity for its members.

For the propagation of the teaching of Islam, a number of forums and engagements with external faith and community groups, press releases and dialogues were held.

GRANT MAKING

Grants or donations are made to a chosen organisation whose activities support the charity’s objectives. Following are some of the prominent charities that were chosen by the trustees to be funded.

British Red Cross Yorkhill Hospital MacMillan Cancer Research UK The Woodland Trust Royal National Institute for Blind CLIC Sargent Save The Children Barnardos British Heart Foundation Royal British Legion NSPCC

Great Ormond Street Hospital Children’s Charity Humanity First Ahmadiyya Muslim Jamaat (AMJ) - AMJ has activities and projects which are very similar to those of the charity and is managing a large number of charitable projects all over the world. Trustees of the charity have therefore chosen AMJ as its largest beneficiary organisation.

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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ACHIEVEMENTS & PERFORMANCE

STRATEGIC REPORT

1. Setting up a separate

RESPONSE TO COVID-19

management committee to deal with the changing landscape caused by the Covid-19 pandemic.

  1. Providing support in the form of volunteers to Humanity First UK (a UK registered charity) for their disaster management call centres as an approved partner.

As an organisation focused on charitable activities and supporting local communities as well as members, the Trustees set up various programs in response to the Covid-19 pandemic. A highlight of activities include:

  1. Purchase and distribution of medicines across member households where required.

  2. The 2019 AMRA international conference held in December 2019 in Islamabad, Tilford. The 10th international conference was a historic event with the attendees being graced with the presence of Hazrat Khalifatul Masih V (aba) for a key note address and dinner.

STUDENT AFFAIRS

The Charity’s student affairs department had an active year with multiple events and exhibitions taking place across the country. Highlights of the year include:

  1. Multiple interactive outreach programs were held especially aimed at younger audiences.

The younger members of the youth association organised and held activities online for majority of the year due to the ongoing impact of the Covid-19 pan-

ATFAL

The younger members of the youth association under the ages of 16.

MEDIA & PUBLICATIONS

  1. Publication of Tariq Magazine twice in the year and a relaunched website.

The media and publications team continued their efforts in promoting the Charity’s activities through publication of various posters, videos and photos for the various events taking place in the year as well as providing support for these events in the form of media and photography coverage. Key highlights include:

  1. A daily update

by the name of The Evening Post to all khuddam during the pandemic with over 3000 khuddam being distributed these daily articles. These included

  1. Purchasing food for distribution to local food banks.

  2. A telephone call campaign was carried out where volunteers rang all members to check on their welfare and provide support where necessary.

6. Regional members in

Wandsworth and Manchester supported local councils by providing volunteers to make deliveries where needed.

  1. AMSA Online freshers fair held in August 2020.

  2. The department held multiple online events including a series of academy events, online lectures and the Spring Retreat.

  3. AMSA book club held between June and September 2020.

demic. These activities ranged from online classes, courses and campaigns for youth members to write letters to NHS showing their support.

articles of interest on Jamaat activities as well as providing guidance on support available.

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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ACHIEVEMENTS & PERFORMANCE

STRATEGIC REPORT

CHARITABLE ACTIVITIES

During the pandemic in the UK and the national lockdown the Charity was able to support local communities across the country. Regions made an outstanding effort reaching out to councils and local charities with varying success. In each Region depending on local requirements, the efforts focused on helping members and nonmembers of the community as per instructions of Hazrat Khalifatul Masih V (aba) by providing hot meals and donating Personal Protective Equipment (PPE) to front line staff. The Charity also helped deliver PPE to front line staff on behalf of the government. A partnership was set up to supply meals for children in need at a local school. In addition to that a helpline was set-up with HF to respond to requests for assistance. Special effort was made on Eid to help those in need and show our appreciation to those who were putting their health at risk. A highlight of the key activities:

  1. 14,285 non-Ahmadi households and 5,737 Ahmadi households for a total of 20,022 households assisted.

  2. 6,290 units of PPE donated to front line workers

  3. 673,000 pieces of PPE delivered on behalf of the government

  4. 1702 meals delivered to students and their families

  5. Daily healthy snacks provided for 4 weeks for 150 children

  6. 10,036 food packages delivered to front line workers

  7. 1,066 meals donated to the homeless

CHARITY CHALLENGE EVENTS

Due to the ongoing impact of Covid-19, the charity was unable to hold its flagship fundraising event during the financial year. The Trustees hope to continue these events when conditions allow.

Unlike in previous years, the Charity was unable to hold its flagship annual event during 2020.

IJTEMA ANNUAL/ REGIONAL/LOCAL

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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REPORT OF THE TRUSTEES

FINANCIAL REVIEW

INVESTMENT POLICY & OBJECTIVES

The charity has no long-term investments. The trustees are empowered by the memorandum and articles of association to decide on the courses of action that they consider appropriate to further the charity’s objectives.

RESERVES POLICY

MKA UK has been managing its reserves in accordance with its policies and approving projects and expenditure where the Trustees feel there are opportunities to increase value of the causes for which the charity stands for. The Charity’s long term aim is to hold reserves equivalent to six months of expenditure. The Trustees believe this should provide sufficient funds to facilitate the continuity of operations. Income of MKA is expected to remain consistent from its loyal members and there appears to be no risk of significant loss in income in the foreseeable future. Trustees therefore may review the level of these reserves and decide on reducing their level in future years, provided worthy causes or investment opportunities arise in future.

Funds of the Charity were £647,089 as at 31 October 2020 (2019: £249,305) comprising of £187,715 (2019: £201,517) restricted funds and £459,374 (2020: £47,788) unrestricted funds.

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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REPORT OF THE TRUSTEES

FINANCIAL REVIEW

STRATEGIC REPORT

The Charity is reliant on voluntary donations from its members in the United Kingdom. During the year, the charity has continued to grow with increased contributions from members despite the ongoing impact of Covid-19 on the economic conditions of our members. MKA (UK) has made a surplus in the year and has been able to build on its reserves due to the curtailment of several of its activities including the flagship event which is usually held annually.

The risk to income is low as majority of the members happily pay their subscriptions without much effort. A relatively smaller number when approached happily make donations. A larger focus is on the moral training of the members but our association with Al-Shirkatul Islamiyyah and Muslim Television Ahmadiyya UK thereof has helped in raising awareness of the excellent works carried out by the MKA (UK) for the community. This is expected to have a positive impact on our future income as well.

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1/5/2021 Duplicate of Page 1
Majlis Khuddam-ul-Ahmadiyya UK - Member Contribu�ons
Breakdown of Member Contributions Total Contributions Breakdown of Member Contributions
2% £502,896 4% £734,282 9% £27,871
Change PY FY20 Total member contributions
Change PY FY20 Khuddam Collection Change PY FY20 Atfal Collection
Total Contributions-Last 5 Financial Years
£502,896 4% £27,871
£492,573 6% £734,282 £25,485
£473,644
£465,931
4%
£20,431 £20,487
£452,172 £19,592
2016 2017 2018 2019 2020 2% £705,703 2016 2017 2018 2019 2020
£659,690
£637,381
3% £113,707 2016 2017 2018 2019 2020 15% £87,308
Member Participation - Last 5 Financial Years
Change PY FY20 Ijtema Collection Change PY FY20 Gift Aid Collection
75%
£117,293 74% £87,308
72%
£70,352
£109,448 £113,707 69% £57,188
£108,371
£106,201 65% £42,410 £45,251
2016 2017 2018 2019 2020
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
1/1
. .
.
.
. .
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MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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REPORT OF THE TRUSTEES

FINANCIAL REVIEW

FUTURE PLANS

The Trustees continue to explore new ways to increase efficiency and effectiveness of finding ways to achieve the objectives of the charity. The trustees seek to actively promote the objectives of the charity in the following twelve months.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity is an equal opportunities employer but it is important that the applicant understands the norms and conduct of the Community and has been happily involved in volunteering themselves with a genuine desire for making a positive change in society and serving the Charity with honesty and integrity. In the current climate, the physical security of the Community is also of an important focus. Therefore, any person who applies for a position within the Charity has to go through reasonable security clearance through the administration. Currently there is one full time employee and two part time employees of the Charity. Estimated man hours spent on volunteering by our members were in excess of 350 FTE (full-time employees). The Trustees appreciate this and wish to thank everyone involved for their valuable time and commendable efforts in furthering the Charity’s objectives.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 19 February 2021 and signed on the board’s behalf by:

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

Abdul Quddus Arif - Trustee

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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INDEPENDENT EXAMINER’S REPORT

I report on the accounts of the charity for the year ended 31st October 2020, which are set out on pages 10-20.

Respective responsibilities of trustees and examiner

The trustees (who are also directors of Majlis Khuddamul Ahmadiyya (UK) for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the 2011 Act and follow procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act and to state whether particular matters have come to my attention.

Basis of independent examiner’s report

My examination was carried out in accordance with the general directions given by the Charity Commission. The examination includes a review of the account records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all of the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report so limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

(i) which gives me reasonable cause to believe that in any material respect the requirements:

- to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met or

(ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached

Nasir Mahmud FCA Chartered Accountant Falcon House 257 Burlington Road New Malden Surrey KT3 4NE

19 FEB 2021

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

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 October 2020

The notes form part of the financial statements

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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STATEMENT OF FINANCIAL POSITION

At 31 October 2020

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The financial statements were approved by the Board of Trustees and authorised for issue on 19 February

2021 and were signed on its behalf by:

.......................................................... Tauseef Ahmed - Trustee

............................................................... Abdul Quddus Arif - Trustee

The notes form part of the financial statements

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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STATEMENT OF CASH FLOWS

For the year ended 31 October 2020

The notes on the following pages form part of the financial statements

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with FRS 102 " The Financial Reporting Standard applicable in the UK and Republic of Ireland" under the historical cost convention, the requirements of the Companies Act 2006 and to comply with the Charities SORP 2015.

Majlis Khuddamul Ahmadiyya (UK) is a private company limited by guarantee incorporated in England and Wales.

Income: Recognition of incoming resources

These are included in the Statement of Financial Activities (SOFA) when:

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Tax reclaims on donations and gifts

Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate only if the trustees are satisfied that the claim will be successful.

Volunteer help

The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

Expenditure: Grants payables

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the charity. These are expensed when events have created a valid expectation in other parties that the Charity will discharge its liabilities.

Expenses and liabilities

Expenses are recognised on an accruals basis. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Motor vehicles - 20% on cost Computer equipment - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Restricted funds are spent in accordance with specific instructions of the donors. Unrestricted funds comprise those funds which are spent at the discretion of management committee for the purpose of meeting the charity’s objectives.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

Gift aid MKA Charity Challenge Khuddam Atfal Ijtema income Donations of motor vehicle

3. TRADING ACTIVITIES

Sanato Tijarat Income

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

4. INTEREST

Interest Income Interest income is earned from deposits held with the bank in the year. Interest income is paid out in Sadqa as it is earned.

5. OTHER INCOME

Tamiraat income Tariq magazine Sehate jismani Other income

6. RAISING FUNDS

Cost of Raising Funds

Staff costs Bank charges Stationary Printing & publishing Refreshments Items purchased for stalls Travel & transport Dues and subscriptions Office Essentials Venue hire

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

7. CHARITABLE ACTIVITIES COST

Charitable Activities

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

Food and travel Grants & donations Printing and postage Equipment hire Site arrangements Sports competition activities External review costs Administrations IT (Communication & Website) Depreciation Salaries and wages Awards & donations Generator fuel Motor vehicle repairs Legal & Professional Fees Personal Protective Equipment

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

10. TRUSTEES’ REMUNERATION AND BENEFITS

There was no remuneration paid and no benefits provided to trustees for the year ended 31 October 2020 (2019: £Nil)

Trustees’ expenses

There were no expenses paid to the Trustees for the year ended 31 October 2019.

11. ANALYSIS OF STAFF COST

Staff Salaries and social security costs Pension contributions

The average number of paid staff during the year was 5 (2019: 3)

12 . TANGIBLE FIXED ASSETS

COST At 1 November 2019 Additions At 31 October 2020 DEPRECIATION At 1 November 2019 Charge for year At 31 October 2020 NET BOOK VALUE At 31 October 2020 At 31 October 2019

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors Prepayments and accrued income

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Other creditors Accrued expenses

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets Current assets Current liabilities

16. MOVEMENT IN FUNDS

Unrestricted Funds Unrestricted Restricted Funds Restricted Total Funds

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

16. MOVEMENT IN FUNDS CONTINUED

Net movement in funds, included in the above are as follows: Unrestricted Funds Unrestricted Restricted Funds Restricted Total Funds Comparatives for Net movement in funds Unrestricted Funds Unrestricted Restricted Funds Restricted Total Funds

Comparative net movement in funds, included in the above are as follows:

Unrestricted Funds Unrestricted Restricted Funds Restricted Total Funds

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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NOTES TO THE FINANCIAL STATEMENTS

17. RELATED PARTY DISCLOSURES

The trustees of the charity are considered to be key management personnel and are all volunteers. They do not receive any remuneration for their services (2019:£nil).

Donations made by trustees in 2020 totalled £5,266 (2019:£2,312).

The trustees that served in the year are included on page 2.

18. POST BALANCE SHEET EVENTS

There were no subsequent events identified since the balance sheet date.

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Donations Interest income Decrease/(increase) in debtors (Decrease)/increase in creditors

Net cash provided by/(used in) operations

20. ANALYSIS OF CHANGES IN NET FUNDS

Net Cash Cash at Bank Total

MAJLIS KHUDDAMUL AHMADIYYA UK | REPORT FOR THE YEAR ENDED 31 OCTOBER 2020

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“ A NATION CANNOT BE REFORMED WITHOUT FIRST THE REFORMATION OF ITS YOUTH.

— His Holiness Hazrat Mirza Bashiruddin Mahmood Ahmad - Khalifatul-Masih II[ (God be pleased with him)]

Contact Us

www.khuddam.org.uk

Aiwan-E-Mahmood

Unit 2, Bourne Mill Business Park Centre Park Farnham, Surrey GU9 9PS