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2024-05-31-accounts

COMPANY REGISTRATION NUMBER: 06902369 CHARITY REGISTRATION NUMBER: 1146668

PURLEY ISLAMIC COMMUNITY CENTRE Company Limited by Guarantee Unaudited Financial Statements

31 May 2024

SALEEMI ASSOCIATES

Registered Auditors and Chartered Accountants 792 Wickham Road Croydon CR0 8EA

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Financial Statements

Year ended 31 May 2024

Page
Trustees' annual report (incorporating the director's report) 1
Independent examiner's report to the trustees 4
Statement of financial activities (including income and
expenditure account) 5
Statement of financial position 6
Statement of cash flows 7
Notes to the financial statements 8

PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 May 2024

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 May 2024.

Reference and administrative details

Registered charity name PURLEY ISLAMIC COMMUNITY CENTRE

Charity registration number 1146668

Company registration number 06902369

Principal office and registered 130 Brighton Road office Purley CR8 4EX

The trustees

Mr Waqar Ahmed Mr Khaja Yunus Sharif (Appointed 11 July 2023) Mr Akhtar Choudhry Mr Hafeez Bux Daud Khan

Company secretary Mr Akhtar Choudhry Independent examiner Mohammad Saleemi (ICAEW) Registered Auditors and Chartered Accountants 792 Wickham Road Croydon CR0 8EA

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 May 2024

Structure, governance and management

Purley Islamic Community Centre is a company limited by guarantee (incorporated on 11 May 2009) and a registered charity in England (number1146668, registered on 29 March 2012) governed by its Memorandum and Articles of Association.

Trustees of the Charity are nominated and appointed in accordance with the terms set out in the Articles of Association.

Objectives and activities

The objects of the charity are: -

Achievements and performance

The year ending 31 May 2024 marked a period of sustained progress in advancing our mission to construct a new Purley Masjid at its original site. Despite having less emphasis on large-scale fundraising efforts this year compared to previous years, we still achieved significant contributions to the restricted funds allocated for the masjid rebuild as well as unrestricted funds. Weekly community collections continued to play a central role in our fundraising activities, complemented by smaller, targeted campaigns that maintained community engagement and support.

A notable milestone during the year was the completion of the basement of the new masjid-the most technically challenging aspect of the construction. This critical phase ensured the structural stability necessary to support a six-floor structure. The basement was built to be watertight, with proper drainage systems installed and fire safety as a top priority to ensure the masjid will be a safe place for all its users. The outer and interior partition walls for the first and ground floors have also been completed, and the construction continues to grow taller, bringing us closer to realising our vision. The new masjid has been constructed using insulated concrete form (ICF), a state-of-the-art building

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 May 2024

technique that ensures excellent insulation and significantly reduces the building's carbon footprint. Plans for the masjid also include the installation of air-source heat pumps and solar panels, further enhancing its sustainability and eco-friendly design. Beyond the construction, we have expanded our community impact through partnerships and charitable initiatives. We collaborated with the National Zakat Foundation (NZF) to provide weekly support to the most vulnerable members of our community, making a meaningful difference in their lives. Furthermore, we supported several other charities to raise funds for people suffering worldwide due to natural disasters, such as earthquakes and floods, as well as conflicts and wars.

Financial review

During the financial year, the charity generated an unrestricted income of £193,130, representing a 20% reduction compared to the previous year. This reduction can be attributed to multiple factors. We focused on smaller initiatives to sustain fundraising for the masjid construction and supported other charitable collections at the masjid for fund raising initiatives throughout the UK and the world.

Restricted income, designated for specific purposes such as the masjid rebuild, totalled £240,728. While this is a reduction from the previous year's £318,286, it reflects the continued strength of pledged contributions gradually coming in. Total gross income, including endowments, decreased to £433,858 from £558,794 in the prior year, consistent with the above factors.

Expenditure for the year remained stable, with total costs recorded at £176,770 compared to £157,892 in the previous year. This reflects costs associated with leasing the temporary premises and operational expenses. Despite these challenges, the charity maintained a healthy unrestricted reserve balance, providing sufficient working capital for the next 12 to 18 months.

The primary sources of funding continue to be Friday and Ramadan collections, as well as general donations. These contributions are vital in supporting both the day-to-day operations and the strategic objectives of the charity.

Plans for future periods

Looking ahead, we aim to complete the masjid project by the end of 2025. Once completed, the new facility will provide an adequate and comfortable space for our daily prayer needs as well as a wide range of activities, including youth clubs, children's educational classes, baby and toddler groups, talks and events and much more. This vision underscores our commitment to creating a vibrant and inclusive community hub.

Acknowledgements

Finally, we extend our heartfelt gratitude to our contributors, partners, donors and volunteers for their continued and unwavering support. Their generosity and dedication have been instrumental

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on .............................. and signed on behalf of the board of 22/2/r< trustees by:

Mr Waqar Ahmed Trustee

Mr Hafeez Bux Daud Khan Trustee

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of PURLEY ISLAMIC COMMUNITY CENTRE

Year ended 31 May 2024

I report to the trustees on my examination of the financial statements of PURLEY ISLAMIC COMMUNITY CENTRE ('the charity') for the year ended 31 May 2024.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mohammad Saleemi Chartered Accountant (ICAEW) Saleemi Associates 792 Wickham Road Croydon CR0 8EA

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 May 2024

Year ended 31 May 2024
2024 2023
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 126,305 240,728 367,033 498,242
Charitable activities 6 35,928 35,928 38,414
Other trading activities 7 30,897 30,897 22,138
--------------------------------- --------------------------------- --------------------------------- ---------------------------------
Total income 193,130 240,728 433,858 558,794
================================= ================================= ================================= =================================
Expenditure
Expenditure on charitable activities 8,9 133,060 43,709 176,770 157,892
--------------------------------- --------------------------------- --------------------------------- ---------------------------------
Total expenditure 133,060 43,709 176,770 157,892
================================= ================================= ================================= =================================
--------------------------------- --------------------------------- --------------------------------- ---------------------------------
Net income and net movement in funds 60,070 197,019 257,088 400,902
================================= ================================= ================================= =================================
Reconciliation of funds
Total funds brought forward 607,241 2,202,088 2,809,329 2,408,427
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Total funds carried forward 667,311 2,399,107 3,066,418 2,809,329
================================= ========================================== ========================================== ==========================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 8 to 15 form part of these financial statements.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Statement of Financial Position

31 May 2024

31 May 2024
2024 2023
Note £ £ £
Fixed assets
Tangible fixed assets 14 1,715,957 1,503,806
Current assets
Cash at bank and in hand 1,420,305 1,323,308
Creditors: amounts falling due within one year 15 69,845 17,785
------------------------------------------ ------------------------------------------
Net current assets 1,350,460 1,305,523
------------------------------------------ ------------------------------------------
Total assets less current liabilities 3,066,417 2,809,329
------------------------------------------ ------------------------------------------
Net assets 3,066,417 2,809,329
========================================== ==========================================
Funds of the charity
Restricted funds 2,399,107 2,202,088
Unrestricted funds 667,311 607,241
------------------------------------------ ------------------------------------------
Total charity funds 3,066,418
==========================================
2,809,329
==========================================

For the year ending 31 May 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by: 29/2/72

Mr Waqar Ahmed Trustee

Mr Hafeez Bux Daud Khan Trustee

The notes on pages 8 to 15 form part of these financial statements.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Statement of Cash Flows

Statement of Cash Flows
Year ended 31 May 2024
2024 2023
£ £
Cash flows from operating activities
Net income 257,088 400,902
Adjustments for:
Depreciation of tangible fixed assets 5,434
Accrued expenses/(income) 52,060 (11,839)
Changes in:
Trade and other debtors 26,596
--------------------------------- ---------------------------------
Cash generated from operations 309,148 421,093
--------------------------------- ---------------------------------
Net cash from operating activities 309,148 421,093
================================= =================================
Cash flows from investing activities
Purchase of tangible assets (212,151) (225,875)
--------------------------------- ---------------------------------
Net cash used in investing activities (212,151) (225,875)
================================= =================================
Net increase in cash and cash equivalents 96,997 195,218
Cash and cash equivalents at beginning of year 1,323,308 1,128,090
------------------------------------------ ------------------------------------------
Cash and cash equivalents at end of year 1,420,305 1,323,308
========================================== ==========================================

The notes on pages 8 to 15 form part of these financial statements.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 May 2024

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 130 Brighton Road, Purley, CR8 4EX.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

All fixed assets are initially recorded at cost.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

3. Accounting policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures & fittings

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

3. Accounting policies (continued)

Financial instruments (continued)

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

The Charity is a registered in Companies House as Company limited by guarantee and has no share capital. Every member of the Charity undertakes to contribute such amount as my be required (not exceeding 10 (pounds)) to the Charity's assets if it should be wound up while he or she is a member or within a year after he or she ceases to be member, for payment of the Charity's debts and liabilities contracted before he or she ceases to be a member, and of the cots, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.

5. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2024
£ £ £
Donations
Donations 126,305 240,728 367,033
Gift Aid
--------------------------------- --------------------------------- ---------------------------------
126,305 240,728 367,033
================================= ================================= =================================

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

5. Donations and legacies (continued)

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations
Donations 172,767 318,286 491,053
Gift Aid 7,189 7,189
--------------------------------- --------------------------------- ---------------------------------
179,956 318,286 498,242
================================= ================================= =================================

6. Charitable activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2024 Funds 2023
£ £ £ £
Income from charitable activities and
events 35,928 35,928 38,414 38,414
============================ ============================ ============================ ============================
Other trading activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2024 Funds 2023
£ £ £ £
Membership fees 20 20
Rental income from sub-letting 17,240 17,240 22,138 22,138
Other income 10,000 10,000
Sundry income 3,637 3,637
---------------------------- ---------------------------- ---------------------------- ----------------------------
30,897 30,897 22,138 22,138
============================ ============================ ============================ ============================

7. Other trading activities

8. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2024
£ £ £
Expenditure on charitable activities 130,634 43,709 174,343
Support costs 2,426 2,426
--------------------------------- ---------------------------- ---------------------------------
133,060 43,709 176,770
================================= ============================ =================================
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Expenditure on charitable activities 145,565 9,900 155,465
Support costs 2,427 2,427
--------------------------------- ----------------------- ---------------------------------
147,992 9,900 157,892
================================= ======================= =================================

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

9. Expenditure on charitable activities by activity type

Activities
undertaken Support Total funds Total fund
directly costs 2024 2023
£ £ £ £
Expenditure on charitable activities 174,343 174,343 155,465
Governance costs 2,426 2,426 2,427
--------------------------------- ----------------------- --------------------------------- ---------------------------------
174,343 2,427 176,770 157,892
================================= ======================= ================================= =================================
Net income
Net income is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible fixed assets 5,434
============== =======================
Independent examination fees
2024 2023
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 2,000
==============
2,000
=======================

10. Net income

11. Independent examination fees

12. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as The total staff costs and employee benefits for the reporting period are analysed as follows:
2024 2023
£ £
Wages and salaries 23,472 22,441
Employer contributions to pension plans 1,589 836
---------------------------- ----------------------------
25,061 23,277
============================ ============================

The average head count of employees during the year was 1 (2023: 1). The average number of full-time equivalent employees during the year is analysed as follows:

2024 2023
No. No.
Number of staff 1 1
============== ==============

No employee received employee benefits of more than £60,000 during the year (2023: Nil).

13. Trustee remuneration and expenses

None of the trustee or management committee member were remunerated or paid any expenses.

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 May 2024

14. Tangible fixed assets

Land and Fixtures and
buildings fittings Total
£ £ £
Cost
At 1 June 2023 1,503,806 33,479 1,537,285
Additions 212,151 212,151
------------------------------------------ ---------------------------- ------------------------------------------
At 31 May 2024 1,715,957 33,479 1,749,436
========================================== ============================ ==========================================
Depreciation
At 1 June 2023 and 31 May 2024 33,479 33,479
========================================== ============================ ==========================================
Carrying amount
At 31 May 2024 1,715,957 1,715,957
========================================== ============================ ==========================================
At 31 May 2023 1,503,806 1,503,806
========================================== ============================ ==========================================
Creditors: amounts falling due within one year
2024 2023
£ £
Accruals and deferred income 69,845
============================
17,785
============================

15. Creditors: amounts falling due within one year

16. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £1,589 (2023: £836).

17. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2024
£ £ £
Tangible fixed assets 1,715,957 1,715,957
Current assets 672,385 747,920 1,420,305
Creditors less than 1 year (5,075) (64,770) (69,845)
--------------------------------- ------------------------------------------ ------------------------------------------
Net assets 667,311 2,399,107 3.066,418
================================= ========================================== ==========================================
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Tangible fixed assets 1,503,806 1,503,806
Current assets 620,026 703,282 1,323,308
Creditors less than 1 year (17,785) (17,785)
--------------------------------- ------------------------------------------ ------------------------------------------
Net assets 602,241 2,207,088 2,809,329
================================= ========================================== ==========================================

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PURLEY ISLAMIC COMMUNITY CENTRE

Company Limited by Guarantee

Detailed Statement of Financial Activities

Year ended 31 May 2024

18. Analysis of changes in net debt

At At
1 Jun 2023 Cash flows 31 May 2024
£ £ £
Cash at bank and in hand 1,323,308 96,997 1,420,305
========================================== ============================ ==========================================

19. Related parties

During the year the Charity was under the control of Trustees and Management Committee members as listed on page 1. None of the trustee or management committee member were remunerated or paid any expenses. However, they used the facilities offered by the Charity for performance of their religious duties like other members of the Muslim community.

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