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← The Safera Foundation

2023-10-31-accounts

Registered Charity number 1138949

The Safera Foundation

Trustees' Report and Accounts

31 October 2023

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 2023

The trustees present their annual report and accounts for the year ended 31 October 2023. Financial performance has been disappointing due to higher cost of funds which has eroded positive income streams. Also, investment in a fund in the Chinese market remains highly uncertain. The charity continues to be adequately funded but will be unable to pursue growth in commitments, until financial performance improves.

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 continues activities in the furtherance of its objectives. All committed projects will continue. We still await the completion of the Salaam Centre and are hopeful that the building will be completed this calendar year. The Khayaal youth academy in Birmingham is growing. We have started a Shukre Il Lahi chapter in Canada and have combined with another foundation on a collaboration project focusing on increasing understanding of British Muslim communities among other secular faiths. We are also supporting an Arabic calligraphy programme at the Harrow art centre.

The geopolitical turmoil has taken a toll on the foundation's assets, but we are confident that we have now substantially de risked any further issues. Our bankers are expert advisors, and we are hopeful of an improved performance.

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

Higher interest rates should provide an opportunity to achieve safer returns albeit at lower levels.

2

The Safera Foundation

The Report of the Trustees for the year ended 31 October 2023

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.

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 17/1/2024 and signed on its behalf by:

==> picture [95 x 26] intentionally omitted <==

Mr Fakhruddin T Suterwalla

Trustee

3

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 2023 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 3, 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:

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 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 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

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:

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 statements 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 obtained 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.

4

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:

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 responsible 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 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

In identifying and assessing risks of material misstatements in respect of irregularities, including fraud and noncompliance and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified that greatest potential for fraud is revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the UK Charities Act 2011, pension legislation and tax legislation.

==> picture [185 x 35] intentionally omitted <==

Dated: 17/01/2024

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 2023

Unrestricted
Notes
Funds
£
INCOMNG RESOURCES
5
Incoming resources from generated funds
Investment Income
310,559
Total incoming resources
310,559
6
Cost of generating funds
Exchange Difference
28,951
Interest charges
185,991
Charitable activities
Donation to other charities
92,213
Governance cost
7,297
Total resources expended
314,452
(3,893)
Fair value movements
(95,909)
Profit on sale of investments
26,831
Net movement in funds
(72,971)
Total funds brought forward
996,548
Total funds carried forward
923,577
RESOURCES EXPENDED
Reconciliation of funds
NET (EXPENDITURE) FOR THE YEAR
Other recognised gains and losses		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2023
Total
Funds
£
310,559
310,559
28,951
185,991
92,213
7,297
314,452
(3,893)
(95,909)
26,831
(72,971)
996,548
923,577		 2022
Total
Funds
£
263,614
263,614
188,004
62,590
82,866
15,099
348,559
(84,945)
(974,904)
65,789
(994,060)
1,990,608
996,548

6

The Safera Foundation Balance Sheet as at 31 October 2023

Registered charity no. 1138949

Unrestricted
funds
Notes
£
Fixed assets
Fixed asset investment
3
4,129,411
Current assets
Accrued income
160,152
Cash at bank and in hand
95,696
255,848
Creditors: amounts falling
due within one year
4
(3,461,682)
Net current (liabilities)
(3,205,834)
Total assets less current
liabilities
923,577
Net assets
923,577
Funds
Unrestricted
Restricted		 Restricted
funds
£
-
-
-
-
-
-
-
-		 2023
Total
Funds
£
4,129,411
160,152
95,696
255,848
(3,461,682)
(3,205,834)
923,577
923,577
923,577
-
923,577		 2022
Total
Funds
£
4,172,506
49,125
119,008
168,133
(3,344,091)
(3,175,958)
996,548
996,548
996,548
-
996,548

The financial statements were approved by the Board of Trustees on 17/1/2024 and were signed on its behalf by:

==> picture [129 x 34] intentionally omitted <==

____ Fakhruddin T Suterwalla Trustee

==> picture [172 x 24] intentionally omitted <==

_____ Sakina F Suterwalla Trustee

7

The Safera Foundation Cash Flow Statement

for the year ended 31 October 2023

Notes
Cash flows from operating activities:
1
Cash generated from operations
Interest charges
Net cash provided by operating
activities
Cash flows from investing activities:
Purchase of investments
Sale of investment
Interest received
Net cash 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		 2023
£
(212,336)
(185,991)
(398,327)
(52,814)
-
310,559
257,745
117,270
-
117,270
(23,312)
119,008
95,696		 2022
£
(208,442)
(62,590)
(271,032)
-
3,878,541
263,614
4,142,155
124,719
(3,885,581)
(3,760,862)
110,261
8,747
119,008

8

The Safera Foundation Notes to the cash flow statement for the year ended 31 October 2023

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
(Increase)/Decrease in other debtors
Increase in other creditor
Net cash provided by operating activities		 2023
£
(72,971)
95,909
185,991
(310,559)
(111,027)
321
(212,336)		 2022
£
(994,060)
974,904
62,590
(263,614)
10,718
1,020
(208,442)

.

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 2023

Year ended 31 October 2023
Cash and cash equivalents
Year ended 31 October 2022
Cash and cash equivalents		 31.10.23
£
95,696
31.10.22
£
119,008		 1.11.22
£
119,008
1.11.21
£
8,746

9

The Safera Foundation Notes to the Accounts for the year ended 31 October 2023

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.

10

The Safera Foundation Notes to the Accounts for the year ended 31 October 2023

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 2023 nor for the year ended 31 October 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 October 2023 nor for the year ended 31 October 2022.

3 Fixed Asset Investment

Equity and bonds
4 Creditors: amounts falling due within
one year
Bank Loan
Amounts owed to related parties
Accruals
The value stated above is market value at 31 October 2023		 2023
£
4,129,411		 2022
£
4,172,506
4,129,411 4,172,506
2023
£
3,264,650
193,711
3,321
3,461,682
2022
£
3,216,372
124,719
3,000
3,344,091

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 2023

5 Incoming Resources
Investment Income
Interest income
Total Investment Income
Profit on sale of investments
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
Auditors' remuneration-prior year overprovision
Broker fee		 Unrestricted
Funds
2023
£
310,559
310,559
26,831
26,831
Unrestricted
Funds
2023
£
28,951
185,991
214,942
92,213
92,213
4,961
2,000
(1,000)
1,336
7,297		 Restricted
Funds
2023
£
-
-
-
-
Restricted
Funds
2023
£
-
-
-
-
-
-
-
-
-		 Total
Funds
2023
£
310,559
310,559
26,831
26,831
Total
Funds
2022
£
28,951
185,991
214,942
92,213
92,213
4,961
2,000
(1,000)
1,336
7,297		 Total
Funds
2022
£
263,614
263,614
65,789
65,789
Total
Funds
2022
£
188,004
62,590
250,594
82,866
82,866
7,034
3,000
-
5,065
15,099

12