Company Trgistrnlion numiw.. 07258525 Charity registration number.. 1137088 Muslim Institute Trust Ltd {A company limited by guarin*e) Annual Report and Financial Statcmcnts for thc Year Ended 30 June 2021 Incisive Accounting Limited 52 Grosvtnor Gardens London SWIWOAU •A0￿m￿R51 2410312022 COMPANIES HOUSE A05 #124 Muslim lastltute Trnst Ltd Contents Reference and Administrntive Dethils Strategi¢ Rep)rt Trusreeg Report S4i¢ment of Trustre5' Respon5ibiliiie5 Jndependent Examirtrfs Report Staiemeni of Financial A¢Aivitie5 6¢07 Balan¢¢ She¢¢ Notes to the FinarKial Statements 9t019 Muslim Inytitllte Trnsi Ltd R¢f¢renee 2nd Administrntive Details Tru$i¢¢s Mr Hassan M8h8mdallie Ms Halima Hus5ain Mr Asim Siddiqui Mufti BarkaDJllah Mr Ehsan Ma500d Ms F￿Irnah Mohammed Ashrif Mr Ziauddin Sardar Mr Shahid Ham¢￿1 Ghauri Ms U7rna Ali Printipal Office c￿ Mev2nir 49-$1 Eas¢ Ro•J )ndon NI 6AH Tht charity is inrorpKwth in Uttiied Kingdom. 07258525 Company Registration Nuwber Charity RewtrntioD Nuthb¢T 1137088 Independent Exlmlner Incisive Acwjniing Limited 52 GrosvenoT Gard¢ths London SWIWOAU Pa8e I Muslim Ipsiitute Tr•st Ltd Str8teEiC Report fow the Ye4r Ended 30 JuDe 2021 Th¢ trv5tees. wlv) aTe directors for thE p￿￿￿e$ 0(￿￿panY law. th¢iT 5b*8iC Tepon for the year ended 30 jw￿ 2021. in compliance with 5414C of the Companies 2QO6. The straie8ic rep)rt was appmt¥ed by ts truste¢s of the c*¥ity on 25 2022 and $i8D>J +)rt its bdwlf by: Tru51ee Page 2 Muslim lJstitMte Trnt Ltd Trwjtees. Report The tru5*es. wkn are direcmrs foT thc purpJse5 of company law. Pfesefit the aThTho1 tog¢ihe& financi￿ ststcments of thc charilable comwy for the y¢ar endEd 30 2021. Objediveg #ad •¢tivilies Objeets iims Thc objecrives of the Clwity is to ￿pIOrt, drbote and disc￿3 the pffssin8 intellectual problems and issues..tacin British Muslim communiti¢S artd widEr ¥ociety: ¢ntourage tha $UPF￿n tILe pursuit Olexcell￿￿e in know.kdg . ¢hou8hi 85 4g¢nt of ￿sItiVe rtong< arml provide iMell¢awl spwtt wlwe problems and i55tth*l' dis¢ussed from multiple p¢rnp¢¢tives. Tnkst Frnm¢wowk The TTUSI has c4ntinued w wvidE an open spxc whewE i55ues gfpJuT81ityD tqullity and knley¥rrx ¢an b¢ discws5 owly and ftrankly with cmph&sis on inielk 70,156 87.718 I•Jlitwt¢ Trwsl St*kwe•t of Fi•*#tlal AtlIvI￿ for thtYeAr Ended JOJ*x1021 T•tsl Chantsblr thvitrts I•A.4451 14445) 5Q623 95.(68 NMrKpy4ilLirr N#mDvemeiK inf￿th 2.￿1.612 2.(I)1.612 1.994.212 Muslim Institute Trust Ltd Oiegiitralion number. 07258525) Bala•ce Sheet as at 30 Jmoe 2021 2021 *gs¢ts Tan8ible a55eis CurreAt *55¢15 Debtors Cash th bank in hmd 12 1.777,066 1.777J35 13 14 68 217.095 224.152 224.152 217.163 Credit•n: Amowuts f*lliry d•e wiibim o•e yt*r 15 2.929) (416) Nrtturre•l wlets 221.223 216.747 Ntt assets 1,998.289 1,994,282 Fu•d$ of the tk*rty: 1.998.289 .994282 To¢*1 (ood$ 16 1.998.289 1.994.282 For the fth8nci81 year ending 30 Jun¢ 2021 ihe tsity wa5 ertiil¢d w exernplKin from d￿j11 under section 477 of the Compwhie5 Act 2(K)6 re￿ing io small companie5. Directors. r¢3ponsibiliiie5= The members hav¢ Jwi required the ¢huity to obtsin of its accounts for th¢ y¢aT in qUBStion in •ccordanc¢ with seciion 476: and The dire¢iors a¢knowlcdg¢ tr*ir rt4xinsibilities for t4Jmplyin8 with th¢ Twuiremethts of the A¢t with re5peGt to a¢couniin8 record5 the pr¢p3r*ionof x¢•￿1. Th¢5e accounts have prepTrd in xmnlance with th¢ provisions applrcable to c4xnpani¢s subicrt tts the small compani¢5 Te8lm¢ The finoncial staiements oft pages 6 to 19 w¢re apwov¢d by the trwttt5. and athrised for t5$￿ on 25 F¢brwy and signed on th¢ir behalf by- Mr Ehsan Masood TNsiee Th¢ rt￿eS on p88es 9 w 19 fonD ￿ Ime￿11 pth of these fin•ncial S￿eMethts. Pag¢ 1 Muslim Institute Trnst Ltd Notes to tke Finaacial StstemeAts for the Year Ettded 30 June 2021 I Ch*rity 5tstus The ¢h8rity is limited by guar¥n￿, Incor￿r&¢￿ ID Uniied Kin&dom. atKI Cons¢q￿nI1Y does noi have sh*r capital. Ea¢h of the Iruslets 15 liable ￿ ¢onthbut¢ an amount exceeding £Nil to*8nls th assets of Ihe charity in the event of liquidation. The ￿re$S of its regis*Ted offi¢¢ is: Can Mezzanine 49-51 Ea51 Road London NI 6AH These flnancial statements were auihoriscd for iswe by the m15tees on 25 February 2022. 2 A¢¢0￿￿ting polieies S¥mmary of signifrtant atcountlng policies key *ttouTrtlDg estimates The principal accounting policie5 applied in Lhe prepaNion of the￿ financial S￿lernents are sei ou¢ below. These policies have been ￿n$l￿entlY applied io all the yean presented, unless otherwise stated. Stst¢mtnt oftomplian¢¢ The fjnancial 51atements have t*en wepared in accordance with Accouniin8 and Retx>rting by Chariiies.. Smemeni of Recommended Practice applicable io chaTTrties weparing their ac¢ounts in accordance with ihe Fit)ancial Reporting Standard applicable in the UK and Republic of Irelaod (FRS 102) (effec4ive l January 2015) - (Charities SORP (FRS 102)), Ihe Financial Rqx)rting Stsndard applicable in the UK a￿j Republic of [￿land {FRS 1021. They also comply with th¢ Companies Act 2{￿ and Ch•iti¢5 Ath 2011. B#$i$ ¥Jf prtpar•¢iiyi Muslim In51iiu* Trust me￿S Ihe definition of a public Frtnefit eniity undu FRS 102. Assets aTrJ liabilities are inilially recogni5ed at hisiorical ¢oM or transadion value ￿nleSS oihemse in ihe relevanr accounting policy notes. Page 9 Muslijn Institute Trust Ltd Noles to the Fin8ntial Statements for the Y￿r Ended 30 June 2021 Fund Accounting Unreyricted funds ¢art ￿ used in accordan￿ with ihe ¢harithble ¢Jbje¢tives w thc di5Crttion of ihe tru51ees. Restricted fU[￿S only be used for particular resrricted purr￿¢$ within ihe objects of the ¢hdriTy. Restri¢iion$ arise when specifJ¢d by the dotmjr or when funds are rdised for particular restriaed purFXW* Further explanation ofihe natur¢ and purpose of each fiThl is included in the no¢es to fjnancial str¢ements. Resourtes expended Expendiiure is ac¢ounied for on an accn]als basi5 and h&s been classified un(kr ?￿thIngS thai aggregate all ¢osi relaied io the category. Wheff costs cannot be dirteily allribuied io Wicular ￿ingS Ihey have been allocaied to activities on a bASi5 consi5tenl wilh the ￿¢ of resources. Ineoming resources All incoming resources are In¢l￿3¢d ots th¢ Ststemeni of Fithancial Aoivilies when the charity is leeally eniiiled to Ihe income and the amount can k quantif*d wilh re4s0nabk *&wr8¢y. ExemplioTr from pnp8ring a ta5h flow 5t*lement The charity optrd io carly adopt Bulletin I publisw on 2 F¢brnary 2016 W have therefore not included a flow mtement in these financial 5tatcment Inrowe and endowrneTrts All income is recognis¢d once the charity has erhtitlement io the irKom4 li is probable that the i￿ome will be receiv￿ and the amouni of tk income rt¢¢ivablc can be rneagJr¢d reliably. ondlegoeles Donaiions art Tecognised whcn the Charity ha5 brell Twxified in writing of both the and settlement d*. In Ihe eveni rh& a donaiion 15 5ubjeci to condiiions Ihai require a level of performance by the charity before the ¢harity is eniiiled io ihe fvnds. the income is deferred and noi recognised unLiI ebther those condiiions are fully meL or the fulfilment of ihose conditions is wlh)Ily within ihe ¢orttroI of the charity and it is probable ihai Ihese condition5 will be fulfllled in the repming peri￿. Expendithre All expcndiwre is recogni5ed orK¢ there is a Icgal or consM*¢ive obligaiion to thai expenditur< il is probable settlement is rcquired and ihe amounT Can bt mea9Jred reliably. All Costs are allo¢ated ￿ the appli¢able expenditure heading that 88greg3te similay cosis io ihat category. Where cosrs Cann￿ be directly 8llTibuled to panicular heading5 Ihey have been allo¢ated on a basis ¢onsistenl iviih the use of r¢sour¢e4 wth ceniral ￿aff costs allocated on Ihe basis of time spent, and deprtciaiion charges all￿a￿d on ihe wrtion of the asset's use. Oiher 5UPPOrt costs are allo¢*ed based on the sprthl of sthff costs. Choriit7ble octiviii Charitable expenditure compTi5CS those ¢osts incurTed by the ¢hariiy in delivcry of its xiiviiies and setvices for its beneficiariek It irt¢lude5 both costs ihal can ￿ allocated direaly to such xtiviiies and th)se costs of an iTrdireci nature ne¢essary to 5UPFtht them. Pagc 10 Muslim Institute Trn$t Lid Notes to the Financial Statements for the Year Ended 30 JuDe 2021 Support t05ts Support Costs include centr￿ furKtion$ and have been all￿¢¢d to attivity Cost categorie5 on a basis cons2stent with the use of Ttsources, for example. allrKaltng pro￿rty costs by floor are￿ or pcr ¢apit4 staff cost5 by the time speni and other r05ts by their usage. Covern#nte Thes¢ in¢lude the costs attrilmjtsble to the ¢harity's cnmplia]wt with conmiiuiional and staiulory rcquircrnentg including audiL strdtcgic managemeni and tru&tts's me¢tir¥ arKI ￿1mbUr$¢d ¢xp¢nse& T8X*tion The charity is ¢wsidered to pa55 the tests sei oui in Paragrnph I Schedule 6 of the Finance Aci 2010 and Ihercfore tt meets rhe dcfinition ora charitsble u)mp8ny for UK cor￿ratIOn t&¥ PUTFQ5e5. A¢¢ordin8ly. the rharity is potentially exempt from ￿tiOn in respect of income or capiiaj gains re£eived wiihin carcgorie5 COV¢Ted by Chapter 3 Part I I of Ihe Corp)rdtion Tax Act 2010 or Sertion 256 of the Tax*ion of Chargeable Gains Aci 1992, to the exltni that such incoffl¢ or gain5 are applied exclusively to ¢haritable pur￿&￿ Tantibk fixed assets All fixed assets are initially re¢orded at cost. Dtpretl#lxin *morti$#tio Depreciation is provided on tangible fixtd so as to off ihe c05t or valuation. Itss any c5tifflaTed residual value, over their usefvl economic life as follo Asset ¢lAss Land and building Fixtsjres & Fittings Depreei•tioll ￿ethOd *Dd rate 25% Reducing Balance Trade debtor5 Trade debtors are amounts due frorn custome￿ for merchandise sold or services perfonned in the ordinary course of I￿Siness. Trade debtors are recognised initially ai ihe Iransaciion price. They are 5ubsequenily M￿sured ai arnortised ¢ost Using the effective inteiesi less wovisioo for impairmeni. A provisioD for the impwmJeDt of ir•J¢ debiors is established when there is objective evidence th￿ the chaJity will noi be able io colleci all amounts due according to the original i¢mJs of the re¢eivabk& Cash cash ¢q¥iv¥l¢4ts Cash and cash equivalents Cthnprise i)n hand and LXII dewsit4 and other short-iernj ht8hly liquid investments thai are readily convertible 10 a known amouni ofash and are subjed w an insigThifi¢athi risk of ¢ha•ge in value. Muslim Institute Trnst Ltd Nolt& lo the Financial StsiemeDts for the Year Ended 30 June 2021 Trnd¢ ¢r¢ditors Trade ¢rtditors are obli8aiion5 lo pay for go(¥Js or setvices that have been acquired in the Ordin￿ CLWTse of busine55 from 5upplier5. Attounts payable are classified &s currtni liabiliiies if the Charity does have an un¢ortdilional right, * the end of the rerx>ning rffli￿J. io defeT seNlem¢nL of the creditor for at le&si Nelve months after the Teporting date_ If thert is an uncoThdiiional riRhi io defer settlement for at least ￿tIve months after the reporting d*¢, they are pres￿le4] non-CUFrent liabililie& Trade creditors are r￿ognIsed initially * the traAs¥tion price and substquenily Me￿1¥¢d at amortiseAI ¢wi usin8 the ¢ff¢c¢ive in*resL m&hod. Interest.bearin8 borrowings are initia]ly recorded at fair value. net Of iransaaion ¢0$￿ Iniere51-bearing borrowings are subsequently carried ai amortised ¢ox with the diffeitnce beNren the proce￿ of trallsaclion Costs, and Lh¢ amount d￿e on redemption being Tecognised a5 a charge to the Sts*ment of Finart¢iai Activities over the peri(wJ of the relevaDI borroMng. Inieresi expense is recognigd on the basis of the effective in*rest mew and is included in interest payable and Similar charge5. Borrowings ar¢ ¢lassifi¢d &$ curreni liabiliiit5 unle55 thr charity has *) wKonditional ri8hi ￿ dtfer settlement of the liability for ai leasi ￿tIve month5 after ihe ffporting date. F•reign exeh*nge TTansaciion5 in foreign ¢urren¢ies ar¢ r¢¢orded at th¢ ratr of exchange ￿ Ihe date of tk transadion. Monewy assets and liabilities denomin*ed in foreign currtrKie5 ￿ the hlance shed d￿C we 1ekx￿ed ar the rates of exchange prevailing az ihat date. The Tesults of ovew&s operniions are tran51*ed ai the averdge r*es of ex¢hang¢ durin8 tr rwiod and their balance Sheets ai the T*es Tuling at ¢1¢ balance shed dak. Exchange differences arising on Iraftslaiion of the openinE n assets and results of overseas operdiions are reported in other ¢ompth¢Asive irKome a￿1 accUmul￿ed in equity (attributed to non-¢ontrolling init￿sts as appropriate). Oth¢r ex¢hang¢ differences are fecognised in the Ststcmcnl of Financ￿] Aciivilies in tht [￿riod in which they arise except r(r'. I l exchange differences on traAsathions eniered into to hedge certain ftireign currtn¢y risks {s¢¢ above)" 2) exchange differen¢es arising on 8aios or losses on noTrmoTW items which are re¢ognised in oiher comprehensive income" and 3) in the cast of the consolidated financial stai•neJMs exchange differencE5 on monetary iteTnS reeeivable from or payable to a forei￿ operation for which sellltmerbt is neither planned nor likely io o¢cur {th¢refore forn)ing part of the net investment in the foreign orKrntion). whith are rt¢08nis¢d in other comprehensive income and reported under equity. Page 12 Muslim lllstitute Trust L Noles to ¢be Fingncial Statememts for the Yur Etsded 30 June 2021 Fund 5trncturt Unre51Tict￿ inwrn¢ funds are g¢rt¢ral fi#)ds that are availablc for usc al the tru5tCC5% discretion im fvrtheranc¢ of the obj¢¢tives of the charity. 3 Voluntsry Income Unnstrirted futtds General Totsl funds DOn￿lon5 and legac Donaiions from individua15 9.419 9,419 Total for 2021 9,419 9,419 Total for 2020 11.552 11.552 4 Inve5tznent imcome Unres¢ricted fund$ Ctntrnl Tot*1 d$ Incoffle fr(Kn rer 81,961 81,961 Totsl for2021 81,961 81.961 Totsl for2021J 76,186 76.186 S Elpelldi￿tt on [￿ndS Totsl eosts 6 Expenditvre OD th#ritsblt attivltlts Unre5trirted funds Ctner81 TotAI fyDds Notr Governance costs 2.855 2.855 Total for 2020 3,527 3,527 Page 13 Muslim Institste Trnst Lid Notes to the Finanei*l Stsiemeots for the Year Ended 30 June 2021 Total In additi￿ to Ihe expEnditurc aDalysed aly)v& thcrt we a150 governwK¢ costs of £2.855 (2020 - £3,527} whi¢h relale directly to charitablt activities. See nott 8 for fiwthu dethil 7 Other expenditu Ullre5triet¢d funds Gtntr*l Total ds N￿¢ tkpr¢¢iatioTh, 8morlisation and other similar ws Allo¢a¢ed support ¢osts 469 44.409 44.409 Total for 2021 44.878 44,878 Total for 2020 50.623 50,623 8 Anatysis of goverllance $Mpport costs Covern4n¢¢ costs fund5 Gener*1 T•tsl funds (hher governance costs 2.855 2.855 Toi¥l for 2021 2,855 2.855 Toi*J for 2020 3.527 3,527 P￿¢ 14 Muslim Institute Trust Ltd Notes to the Finaoeial Sth¢emen¢s for the Year Ended 30 Jwne 2021 9 Net incominglovtgoing rtso¥r¢¢s in¢ominW(out80in8) re50urtt5 for thr yehr iTKlude'. 2020 Deprecystion of r￿ed assets 469 625 111 Trusttts remuneration ¢xpen5e5 I l TgX*tlon The ¢harity is a re8iStered chan.ty and is thereforc exempt from ￿X¢¢i(￿. Pa&e 15 Mw5kn Ill51its¢tTr•%l Ltd Nott5 to tht Sthtemelts fwthtyear E•dtd JOJ*•t2021 Tothl Cost Al l July202 A130J￿2￿21 1.175. 1.778.1 D¢pr¢