REGISTERED CHARITY NUMBER: 1154046
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 July 2022
for Al-Hijrah Trust
Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL
Al-Hijrah Trust
Contents of the Financial Statements for the Year Ended 31 July 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Cash Flow Statement | 7 |
| Notes to the Cash Flow Statement | 8 |
| Notes to the Financial Statements | 9 to 16 |
Al-Hijrah Trust
Report of the Trustees for the Year Ended 31 July 2022
The trustees present their report with the financial statements of the charity for the year ended 31 July 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's constitution defines the charity's objects as being to:
-
To advance the Islamic religion anywhere in the world for the benefit of the public through the holding of prayer meetings, lectures, producing and/or distributing literature on the Islamic faith to enlighten others about the Islamic faith.
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The prevention or the relief of poverty anywhere in the world by providing grants, items and services to the individuals in need and/or charities, or other organisations working to prevent or relieve poverty.
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For the public benefit to promote education at every level, anywhere in the world, in such ways as the charity trustees think appropriate.
Public benefit
In setting these objectives and aims, the trustees have given due regard to the guidance published by the Charity Commission on Public Benefit.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
Activities have gradually returned to normal this year following the Covid-19 lockdowns of 2020-2021.
The legal case regarding the Cherrywood building was won in March 2022 at the Land Tribunal and we are now awaiting transfer of the property to Al-Hijrah Trust and repayment of our costs..
Mosque
The Mosque continued to be well attended through the year for both daily prayers and Friday congregational prayers. We had a very successful Ramadhan which saw many new people attending the mosque.
Fundraising for the renovation project has continued and we are hoping to start the building work in the early part of 2023.
A regular programme of religious and educational talks has been carried out using a variety of speakers. There has been much more involvement from sisters providing educational and social activities for local women and children.
Madrasah
The Madrasah remained popular throughout the year with approximately 300 children. We have focussed on improving the provision of teaching and learning using the new syllabus which includes Quran, Arabic and Islamic Studies.
The neighbourhood in which the madrasah is based is a challenging one, with very high youth unemployment and youth crimes being a daily reality. The madrasah aims to steer the children into adolescence with the skills and outlook to manage these challenges.
Scouts
Al-Hijrah registered with the Scouts Association as the 331 Birmingham Scouts and started our Scouts program in June 2022. This was immediately oversubscribed and we are hoping to expand it in the coming year.
Tuition Project
A tuition project was started in June 2022. It teaches English, Maths and Science at Key Stages 3 and 4 and also preparation for 11 Plus exams.
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Al-Hijrah Trust
Report of the Trustees for the Year Ended 31 July 2022
FINANCIAL REVIEW
Financial position
During the year, the charity raised £322,342 in donations £233,260 of which were raised for specific purposes), a further £127,537 from Madrasah fees and £102,325 in rental income. The charity claimed £11,332 under the Governments Coronavirus Job Retention Scheme. Total income for the year was £566,744 (2021 £345,056).
The charity spent a total of £378,464 on its charitable activities (2021 £324,511).
Reserves policy
Total unrestricted funds at 31 July 2022 were £580,965 (2021 £576,937). Of these, £(37,120) were 'free reserves'. Free reserves are reserves which do not include restricted funds or funds tied up in the fixed assets. As at 31 July, these negative free reserves are supported by the generous Qarde Hasan loans made to the charity totalling £147,000.
Total restricted reserves at 31 July 2022, being reserves of income given for specified purposes, were £275,805. Further details of these reserves are given in the notes to the financial statements.
FUTURE PLANS
We are continuing the fundraising for the Mosque extension and aim to start the building work in the early part of 2023. Once completed this will provide space for expansion of activities for women.
We are planning to start a Food Bank on the site to support members of the community dealing with food stress and poverty.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is governed by its governing document, registered on 2 October 2013 and amended on 11 December 2020.
Charity constitution
The Charity is constituted as a Charitable Incorporated Organisation (CIO), as a body corporate under Part 11 of the Charities Act 2011 on the 02 Oct 2013. The CIO registered with the Charity Commission on the same day.
Organisational structure
Trustees are legally responsible for the governance and management of the charity. Trustees are responsible of setting strategies and policies for ensuring these are implemented.
Risk management
The trustees have considered the major risks to which the charity is exposed and have reviewed potential risks. Systems and procedures have been put in place to manage the risks and to mitigate any adverse outcomes.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1154046
Principal address
Al-Hijrah Trust 71 Hob Moor Road Birmingham West Midlands B10 9AZ
Trustees
Dr M Hanif N Mahmood M Bashir N Tahir (appointed 24.6.22)
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Al-Hijrah Trust
Report of the Trustees
for the Year Ended 31 July 2022
REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner
Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL Approved by order of the board of trustees on ............................................. and signed on its behalf by:
................................................................. Dr M Hanif - Trustee
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Independent Examiner's Report to the Trustees of Al-Hijrah Trust
Independent examiner's report to the trustees of Al-Hijrah Trust
I report to the charity trustees on my examination of the accounts of Al-Hijrah Trust (the Trust) for the year ended 31 July 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the ERROR - relevant professional body must be completed, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
David Williams FCA FCCA
Locke Williams Associates LLP Chartered Accountants c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL
Date: 18 May 2023
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Al-Hijrah Trust
Statement of Financial Activities for the Year Ended 31 July 2022
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 100,414 Charitable activities 4 Charitable activities 130,690 Investment income 3 102,380 Other income - Total 333,484 EXPENDITURE ON Charitable activities 5 Charitable activities 329,456 NET INCOME 4,028 RECONCILIATION OF FUNDS Total funds brought forward 576,937 TOTAL FUNDS CARRIED FORWARD 580,965 |
Restricted funds £ 233,260 - - - 233,260 49,008 184,252 91,553 275,805 |
31.7.22 Total funds £ 333,674 130,690 102,380 - 566,744 378,464 188,280 668,490 856,770 |
31.7.21 Total funds £ 195,452 49,617 99,985 2 |
|---|---|---|---|
| 345,056 | |||
| 324,511 | |||
| 20,545 647,945 |
|||
| 668,490 |
The notes form part of these financial statements
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Al-Hijrah Trust
Balance Sheet 31 July 2022
| Notes FIXED ASSETS Tangible assets 10 CURRENT ASSETS Debtors 11 Cash at bank and in hand CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 13 NET ASSETS FUNDS 14 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted fund £ 618,085 849 119,030 119,879 (9,999) 109,880 727,965 (147,000) 580,965 |
Restricted funds £ 5,900 - 269,905 269,905 - 269,905 275,805 - 275,805 |
31.7.22 Total funds £ 623,985 849 388,935 389,784 (9,999) 379,785 1,003,770 (147,000) 856,770 580,965 275,805 856,770 |
31.7.21 Total funds £ 652,145 - 172,393 172,393 (6,048) 166,345 818,490 (150,000) 668,490 576,937 91,553 668,490 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. M Hanif - Trustee
The notes form part of these financial statements
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Al-Hijrah Trust
Cash Flow Statement for the Year Ended 31 July 2022
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash provided by/(used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.7.22 £ 216,487 216,487 - 55 55 216,542 172,393 388,935 |
31.7.21 £ 36,036 36,036 (5,900) - (5,900) 30,136 142,257 172,393 |
|---|---|---|
The notes form part of these financial statements
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Al-Hijrah Trust
Notes to the Cash Flow Statement for the Year Ended 31 July 2022
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM | OPERATING ACTIVITIES | OPERATING ACTIVITIES |
|---|---|---|---|
| 31.7.22 | 31.7.21 | ||
| £ | £ | ||
| Net income for the reporting period (as per the Statement of | |||
| Financial Activities) | 188,280 | 20,545 | |
| Adjustments for: | |||
| Depreciation charges | 28,159 | 28,159 | |
| Interest received | (55) | - | |
| Increase in debtors | (849) | - | |
| Increase/(decrease) in creditors | **952 ** | (12,668) | |
| Net cash provided by operations | **216,487 ** | 36,036 |
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.8.21 | Cash flow | At 31.7.22 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 172,393 | 216,542 | 388,935 |
| 172,393 | 216,542 | 388,935 | |
| Total | 172,393 | 216,542 | 388,935 |
The notes form part of these financial statements
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Al-Hijrah Trust
Notes to the Financial Statements for the Year Ended 31 July 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 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.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 50 years Fixtures and fittings - Straight line over 5 years
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
1. ACCOUNTING POLICIES - continued
Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
2. DONATIONS AND LEGACIES
| Donations Grants Grants received, included in the above, are as follows: HMRC - coronavirus job retention scheme |
31.7.22 £ 322,342 11,332 333,674 31.7.22 £ **11,332 ** |
31.7.21 £ 140,161 55,291 195,452 31.7.21 £ 55,291 |
|---|---|---|
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Al-Hijrah Trust
Notes to the Financial Statements - continued
for the Year Ended 31 July 2022
| 3. INVESTMENT INCOME Rents received Savings account gains 4. INCOME FROM CHARITABLE ACTIVITIES Activity Madrasah fees Charitable activities Projects income Charitable activities 5. CHARITABLE ACTIVITIES COSTS Charitable activities 6. SUPPORT COSTS Charitable activities Support costs, included in the above, are as follows: Wages Pensions Rates and water Insurance Light and heat Telephone and fax Printing, postage and stationery Advertising Sundries Repairs and maintenance Cleaning Consultancy Accountancy Projects expenditure Planning fees etc Equipment, books etc Donations Carried forward |
31.7.22 31.7.21 £ £ 102,325 99,985 55 - 102,380 99,985 31.7.22 31.7.21 £ £ 127,537 49,617 3,153 - 130,690 49,617 Support costs (see note 6) £ 378,464 Direct Governance costs costs Totals £ £ £ 346,006 32,458 378,464 31.7.22 31.7.21 Charitable Total activities activities £ £ 121,185 103,559 330 273 27,509 13,173 41,815 30,968 43,938 60,936 3,918 2,494 2,209 3,164 - 388 4,058 808 18,523 4,141 - 32 - 6,565 2,525 6,165 1,637 - 15,160 - 5,284 - 29,756 - 317,847 232,666 |
|---|---|
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
6. SUPPORT COSTS - continued
| Brought forward Depreciation of tangible and heritage assets Accountancy and legal fees Legal fees Other professional costs |
31.7.22 Charitable activities £ 317,847 28,159 - 31,031 1,427 **378,464 ** |
31.7.21 Total activities £ 232,666 28,159 1,200 62,486 - 324,511 |
|---|---|---|
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 July 2022 nor for the year ended 31 July 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 July 2022 nor for the year ended 31 July 2021.
8. STAFF COSTS
| Wages and salaries Other pension costs |
31.7.22 £ 121,185 330 121,515 |
31.7.21 £ 103,559 273 |
|---|---|---|
| 103,832 |
The average monthly number of employees during the year was as follows:
| Employees | 31.7.22 25 |
31.7.21 17 |
|---|---|---|
No employees received emoluments in excess of £60,000.
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 103,899 Charitable activities Charitable activities 49,617 Investment income 99,985 Other income 2 Total 253,503 |
Restricted funds £ 91,553 - - - 91,553 |
Total funds £ 195,452 49,617 99,985 2 |
|---|---|---|
| 345,056 |
EXPENDITURE ON
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
| 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Restricted fund funds £ £ Charitable activities Charitable activities 324,511 - NET INCOME/(EXPENDITURE) (71,008) 91,553 RECONCILIATION OF FUNDS Total funds brought forward 647,945 - TOTAL FUNDS CARRIED FORWARD 576,937 91,553 10. TANGIBLE FIXED ASSETS Fixtures Freehold and property fittings £ £ COST At 1 August 2021 and 31 July 2022 700,000 70,796 DEPRECIATION At 1 August 2021 84,000 34,651 Charge for year 14,000 14,160 At 31 July 2022 98,000 48,811 NET BOOK VALUE At 31 July 2022 602,000 21,985 At 31 July 2021 616,000 36,145 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.7.22 £ Other debtors 849 |
Total funds £ 324,511 20,545 647,945 668,490 Totals £ 770,796 118,651 28,160 146,811 623,985 652,145 31.7.21 £ - |
Total funds £ 324,511 |
|---|---|---|
| 20,545 647,945 |
||
| 668,490 |
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 31.7.22 | 31.7.21 | |
|---|---|---|
| £ | £ | |
| Other creditors | 9,999 | 6,048 |
13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Other creditors | 31.7.22 £ 147,000 |
31.7.21 £ 150,000 |
|---|---|---|
The accounts include Qarde Hasan of £147,000 (2021:£150,000) as long-term liabilities. These represent historic interest free loans given to the previous Al Hijrah Trust (charity no: 1018850) and now transferred to the new Al Hijrah CIO entity (charity no: 115046). £3,000 was repaid in the year.
The records supporting many of these old liabilities is weak, as it was lost when the Al Hijrah school was taken over by the Independent Executive Board (IEB) in 2014. Work is ongoing to rectify these records.
14. MOVEMENT IN FUNDS
| Unrestricted funds General fund Restricted funds Mosque extension fund Yemen Sound system Afghanistan Appeal IFCharity Appeal TOTAL FUNDS |
At 1.8.21 £ 576,937 59,352 25,505 6,696 - - 91,553 668,490 |
Net movement in funds £ 4,028 144,682 (25,051) - 64,449 172 184,252 188,280 |
At 31.7.22 £ 580,965 204,034 454 6,696 64,449 172 275,805 856,770 |
|---|---|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Mosque extension fund Yemen Afghanistan Appeal IFCharity Appeal TOTAL FUNDS |
Incoming resources £ 333,484 163,934 206 64,449 4,671 233,260 566,744 |
Resources Movemen expended in funds £ £ (329,456) 4,028 (19,252) 144,682 (25,257) (25,051) - 64,449 (4,499) 172 (49,008) 184,252 (378,464) 188,280 |
|---|---|---|
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
14. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Mosque extension fund Yemen Sound system TOTAL FUNDS |
At 1.8.20 £ 647,945 - - - - 647,945 |
Net movement in funds £ (71,008) 59,352 25,505 6,696 91,553 20,545 |
At 31.7.21 £ 576,937 59,352 25,505 6,696 91,553 668,490 |
|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Mosque extension fund Yemen Sound system TOTAL FUNDS |
Incoming resources £ 253,503 59,352 25,505 6,696 91,553 345,056 |
Resources Movement expended in funds £ £ (324,511) (71,008) - 59,352 - 25,505 - 6,696 - 91,553 (324,511) 20,545 |
|---|---|---|
The Mosque extension fund is related to the project to expand the mosque to create an extra storey. Fundraising for this is ongoing.
The Yemen fund money was raised during Ramadhan 2021 to fund a bakery in Yemen. Al-Hijrah worked with Mercy Relief to purchase the equipment and raw materials to provide bread for thousands of needy people in Yemen.
An appeal was made for a new sound system during Ramadhan 2021 as the existing system was inadequate for the recitation of the Quran. The new system was installed a month later and has been used regularly for Friday prayers.
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Al-Hijrah Trust
Notes to the Financial Statements - continued for the Year Ended 31 July 2022
15. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 July 2022.
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