Registered Charity number 1138949
The Safera Foundation
Trustees' Report and Accounts
31 October 2021
The Safera Foundation Charity Information
| Trustees | Mr Fakhruddin T Suterwalla |
|---|---|
| Mrs Sakina F Suterwalla | |
| Mrs Razia R Chinchanwala | |
| Mrs Femida Mosajee | |
| Mr Salim F Suterwalla | |
| Auditors | Ward Divecha Ltd |
| Chartered Accountants | |
| and Statutory Auditors | |
| 29 Welbeck street | |
| London | |
| W1G 8DA | |
| Bankers | Habib Bank AG Zurich |
| 5/7 High Street | |
| Southall | |
| Middlesex | |
| UB1 3HA | |
| Charity address | 6 Ingleby Drive |
| Harrow on the Hill | |
| Middlesex | |
| HA1 3LE | |
| Registered Charity number | 1138949 |
1
The Safera Foundation
The Report of the Trustees for the year ended 31 October 2021
The trustees present their annual report and accounts for the year ended 31 October 2021. The board of trustees are satisfied with the performance of the charity during the year and the position at 31 October 2021 and consider that the charity is in a strong position to continue its activities during the coming year and that charity's assets are adequate to fulfil its obligations.
The members of the Board of Trustees of the Charity during the year were:-
Mr Fakhruddin T Suterwalla Mrs Sakina F Suterwalla Mrs Razia R Chinchanwala Mrs Femida Mosajee Mr Salim F Suterwalla
Achievement and performance
The foundation was able to re start and continue its main activities in the furtherance of its objectives. Multi year programmes have been renewed. There will be a review of focus areas at the next major meeting. Some projects have been completed their original programme terms and partnerships have been created with established participants. The trustees will reconsider objectives on a wider perspective and then look to formulate appropriate strategies.
Safeguarding of the foundation’s assets has been prioritised but must be viewed within a current market conditions context. The assessment remains negative and the window for substantial recovery in funds was captured and then lost through heightened market volatility. Operating practises will undergo further review especially with regards to borrowing levels. There is likely to be an impact on future returns but timing and adjust of policies will remain a difficult judgement until markets trends have been re-established.
Structure, Governance and Management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. The decisions are made by trustees who are permanent members of the board.
Risk Policy
The Trustees have examined the major strategic and operational risks which the charity faces and confirm that systems have been established to mitigate these risks. The Trustees review these systems and controls on an ongoing basis.
Investment policy
The trustees to invest the foundation's funds and authorize standard "investment powers" to a properly regulated financial institution.
All investments must take due consideration of the foundation's balancing requirements of capital growth and liquidity. Investment performance must be reported to trustees in a timely and regular manner with benchmark performance comparison.
Banking relationships should only be held with major financial institutions who are able to properly advise on appropriate investment policy.
All investments should consider risk/ reward parameters and diversification strategies appropriate to the foundation.
Charity's main objectives and activities
The objective of the charity continued to be that of making grants and partnering with other deserving charitable organisations and individuals.
The charity has acquired financial instruments through LGT Bank (Singapore) Ltd to generate income to support annual giving programs.
Forward Provisions
The trustees are cogniscant of heightened market and geo political risk over the last 12 months, including the end of a long term bull market for fixed income instruments and the war in Ukraine.
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The Safera Foundation
The Report of the Trustees for the year ended 31 October 2021
Transactions and financial position
The receipts and payments accounts are set out on pages 6 to 12. These are prepared in accordance with the guidance and format provided by the Charity Commission for England and Wales.
Relationship with other groups, charities and individuals
The Charity maintains good working relations with other registered Charities.
Statement Of Trustee's Responsibilities
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of the resources, including the income and expenditure, of the charity for that period.
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The trustees are also responsible for keeping sufficient accounting records which disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with Charities Act 2011 the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Approved by order of the board of trustees on 23 / 06 / 2022 and signed on its behalf by:
Mr Fakhruddin T Suterwalla
Trustee
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INDEPENDENT AUDITOR'S REPORT To the Members of The Safera Foundation
We have audited the financial statements of The Safera Foundation (the "charity") for the year ended 31 October 2021 which comprise the Statement of Financial Activities, Balance Sheet and notes to the financial statements, including a summary of 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).
This report is made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Trustees and auditors
As explained more fully in the Statement of Trustees Responsibilities set out on page four, the trustees are responsible for the preparation of the financial statements which give a true and fair view. We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with regulations made under Section 154 of that Act.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 October 2021 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 responsbilities 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 charity 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 ethical responsbilities 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate: or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the report of the trustees other than the financial statemetns and our auditor's report thereon. 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge ontained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT
To the Members of The Safera Foundation
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements ; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of the trustees
As explained more fully in the trustees' responsibilities statement set out on page 3, the trustees 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 responsbile for assessing the charity'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 charity 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 reasonalble 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 accodance 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 aggregrate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Coucil's website at:- https://www.frc.org.uk/auditorresponsibilities. This description forms part of our auditor's report.
Dated: 23/06/2022
Ward Divecha Ltd
Chartered Accountants and Statutory Auditors 29 Welbeck Street London W1G 8DA
5
Registered charity no. 1138949
The Safera Foundation Statement of Financial Activities for the year ended 31 October 2021
| Unrestricted Notes Funds £ INCOMNG RESOURCES 5 Incoming resources from generated funds Investment Income 378,956 Voluntary gift received 104,992 Total incoming resources 483,948 6 Cost of generating funds Exchange Difference 109,139 Interest charges 42,087 Charitable activities Donation to other charities 91,970 Governance cost 21,577 Total resources expended 264,773 219,175 Fair value movements (673,346) Profit/(loss) on sale of investments 330,837 Net movement in funds (123,334) Total funds brought forward 2,113,942 Total funds carried forward 1,990,608 RESOURCES EXPENDED Reconciliation of funds NET INCOME FOR THE YEAR Other recognised gains and losses |
Restricted Funds £ - - - - - - - - - - - - - |
2021 Total Funds £ 378,956 104,992 483,948 109,139 42,087 91,970 21,577 264,773 219,175 (673,346) 330,837 (123,334) 2,113,942 1,990,608 |
2020 Total Funds £ 383,115 30,000 |
|---|---|---|---|
| 413,115 | |||
| (16,465) 79,621 131,764 23,365 |
|||
| 218,285 | |||
| 194,830 | |||
| (32,754) (1,079,911) |
|||
| (917,835) | |||
| 3,031,777 | |||
| 2,113,942 |
6
The Safera Foundation Balance Sheet as at 31 October 2021
Registered charity no. 1138949
| Unrestricted funds Notes £ Fixed assets Fixed asset investment 3 9,025,951 Current assets Accrued income 59,843 Cash at bank and in hand 8,746 68,589 Creditors: amounts falling due within one year 4 (7,103,932) Net current assets (7,035,343) Total assets less current liabilities 1,990,608 Net assets 1,990,608 Funds Unrestricted Restricted |
Restricted funds £ - - - - - - - - |
2021 Total Funds £ 9,025,951 59,843 8,746 68,589 (7,103,932) (7,035,343) 1,990,608 1,990,608 1,990,608 - 1,990,608 |
2020 Total Funds £ 6,082,439 64,080 89,123 |
|---|---|---|---|
| 153,203 (4,121,699) |
|||
| (3,968,496) | |||
| 2,113,943 | |||
| 2,113,943 | |||
| 2,113,943 - |
|||
| 2,113,943 |
The financial statements were approved by the Board of Trustees on 23 / 06 / 2022 and were signed on its behalf by:
____ Fakhruddin T Suterwalla Trustee
_____ Sakina F Suterwalla Trustee
7
The Safera Foundation Cash Flow Statement
for the year ended 31 October 2021
| Notes Cash flows from operating activities: 1 Cash generated from operations Interest charges Net cash provided by /(used in) by operating activities Cash flows from investing activities: Purchase of investments Sale of investment Interest received Net cash (used in)/provided by investing activities Cash flows from financing activities: New loans in year Loan repayments in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 2 Cash and cash equivalents at the end of the reporting period 2 |
2021 £ 215,400 (42,087) 173,313 (3,616,858) - 378,956 (3,237,902) 2,984,213 - 2,984,213 (80,376) 89,123 8,747 |
2020 £ (1,197,540) (79,621) |
|---|---|---|
| (1,277,161) | ||
| - 3,457,134 383,115 |
||
| 3,840,249 | ||
| (2,494,110) | ||
| (2,494,110) | ||
| 68,978 20,145 |
||
| 89,123 |
8
The Safera Foundation Notes to the cash flow statement for the year ended 31 October 2021
1 RECONCILIATION OF (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | ||
|---|---|---|
| Net( expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Loss on revaluation of investment Finance cost Finance income Decrease/(Increase) in other debtor Decrease/(Increase) in other creditor Net cash provided/ (used in) by operating activities |
2021 £ (123,334) 673,346 42,087 (378,956) 4,237 (1,980) 215,400 |
2020 £ (917,835) 32,754 79,621 (383,115) (10,945) 1,980 |
| (1,197,540) |
.
2 CASH AND CASH EQUIVALENTS
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:
Year ended 31 October 2021
| Year ended 31 October 2021 | ||
|---|---|---|
| Cash and cash equivalents Year ended 31 October 2020 Cash and cash equivalents |
31.10.21 £ 8,746 31.10.20 £ 89,123 |
1.11.20 £ 89,123 |
| 1.11.19 £ 20,145 |
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The Safera Foundation Notes to the Accounts for the year ended 31 October 2021
1 Accounting policies
The accounts have been prepared under the historical cost convention and in accordance with applicable accounting standard, and the requirements of the Statement of Recommended Practice (SORP) (FRS102) and, "Accounting and Reporting by Charities", under the charities Act 2011.
The functional currency of the charity is US Dollar but the presentation currency is GPB Pounds.
1.1 Incoming Resources
All incoming resources are included on the statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of Financial Activities when receivable.
Coupon interest received or receivable is also included in the financial statement of Financial Activities when receivable.
1.2 Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
1.3 Taxation
The charity is exempt from tax on its charitable activities.
1.4 Investment Income
Coupon interest is included in the SOFA net of collection charges on a receivable basis.
1.5 Fund accounting
Unrestricted funds can only be used in accordance with the charitable objectives at the discretion of the trustees.
1.6 Fixed Asset Investment
Financial instruments such as structured notes, bonds and futures contracts generate income from both interest coupons and asset price revaluation. Amounts booked to the profit and loss account include coupon from purchase date as well as the current market price revaluation differential.
1.7 Foreign Currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction or average exchange rate. Exchange differences are taken into account in arriving at the operating results.
1.8 Financial Instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets such as investment, cash and debtors are measured at the present value of the amounts receivable, less an allowance for the expected level of doubtful receivables.
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The Safera Foundation Notes to the Accounts for the year ended 31 October 2021
Impairment of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial liabilities such as trade creditors, loans and finance leases are measured at the present value of the obligation. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
2 Trustees' remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31 October 2021 nor for the year ended 31 October 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 October 2021 nor for the year ended 31 October 2020.
3 Fixed Asset Investment
| Equity and bonds Call deposit accounts 4 Creditors: amounts falling due within one year Bank Loan Accruals The value stated above is market value at 31 October 2021 |
2021 £ 7,991,149 1,034,802 |
2020 |
|---|---|---|
| £ 6,082,439 - |
||
| 9,025,951 | 6,082,439 | |
| 2021 £ 7,101,952 1,980 7,103,932 |
||
| 2020 | ||
| £ | ||
| 4,117,739 3,960 |
||
| 4,121,699 |
Note: Bank loan is secured against the investments held by the charity.
11
The Safera Foundation
Notes to the Accounts
for the year ended 31 October 2021
| 5 Incoming Resources Investment Income Interest income Total Investment Income Profit /(loss)/on sale of investments Voluntary gift received Total incoming resources 6 Resources expensed Cost of generating funds Exchange difference Interest charges Charitable activities Donation to other charities Governance cost Bank Charges Auditors' remuneration Broker fee |
Unrestricted Funds 2021 £ 378,956 378,956 330,837 104,992 814,785 Unrestricted Funds 2021 £ 109,139 42,087 151,226 91,970 91,970 8,546 1,980 11,051 21,577 |
Restricted Funds 2021 £ - - - - - Restricted Funds 2021 £ - - - - - - - - - |
Total Funds 2021 £ 378,956 378,956 330,837 104,992 814,785 Total Funds 2021 £ 109,139 42,087 151,226 91,970 91,970 8,546 1,980 11,051 21,577 |
Total Funds 2020 £ 383,115 |
|---|---|---|---|---|
| 383,115 | ||||
| (1,079,911) 30,000 |
||||
| (666,796) | ||||
| Total Funds 2020 £ (16,465) 79,621 |
||||
| 63,156 | ||||
| 131,764 | ||||
| 131,764 | ||||
| 8,012 1,980 13,373 |
||||
| 23,365 |
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