REGISTERED COMPANY NUMBER : 03038595 (England and Wales) REGISTERED CHARITY NUMBER: 1156023
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2022 for
Ansar Finance Group Limited (Limited by Guarantee)
Ansar Finance Group Limited (Limited by Guarantee)
Contents of the Financial Statements for the Year Ended 31 March 2022
| Page | |
|---|---|
| Report of the Trustees | 1 - 4 |
| Accountant's Report | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 - 13 |
| Detailed Statement of Financial Activities | 14 |
Ansar Finance Group Limited (Limited by Guarantee)
Report of the Trustees for the Year Ended 31 March 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 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 2015).
OBJECTIVES AND ACTIVITIES
Principal activities
The principal activities during the above mentioned year are as follows: . promoting ethical/Islamic way of finance.
. educating the public about ethical financial affairs in line with the teachings of Islam. . providing interest free loans to any qualifying member of the public in accordance with its main objectives as laid down in the articles of association. . Collection of Zakat and distributing funds where necessary.
. Collaboration with Universities and other UK charities and organisations to further promote Ansar's interest free cause. . Networking by attending national and International finance events and conferences to develop contacts and micro-finance products.
Ansar Finance Group Limited are the only provider of the true interest free loans. As a charity organisation we face huge challenges to raise funds under interest-free banner. Also, when assessing loan applications for approval and having to turn down certain applications knowing that the applicant is in desperate need for the money. A strict affordability criteria is applied like any other loan provider in the market to safeguard our donors' funds and for the purpose of preventing opportunist individuals as the Trustees are trusted with these funds.
Objectives and aims
The aim of the charity is to change the perception of how people view interest in general and provide help where members of the community are suffering with interest related debt problems. This also in turn affects their physical and mental health and causes family problems. Also to assist our community to realise that living within their means is possible with commitment.
As a charity, the loan application has been open to all permanent residents of the UK, in accordance with the rules and regulations in force at the time.
Public benefit
Ansar delivers immediate financial support to the members of community who are in need of urgent support in an emergency via our Zakat fund. This help is available to all permanent residents of the UK, subject to the rules and regulations in force at the time. This now directly benefits any person who is in financial difficulty or hardship. A loan may be offered when an individual has regular income to make loan repayments and can still maintain their lifestyle without causing them any financial difficulty.
Ansar can help at the time of need i.e. cash flow problems and interest related debt. As this is an interest free loan the person is genuinely being helped and not being burdened with more and ever-increasing debt on interest related transactions. Genuine relief is given, our loans are not an illusion of relief but a true reality. Our Zakat fund is for Muslims within our community who are struggling to meet their basic day to day needs.
POST PANDEMIC YEAR
Ansar Finance Group was very fortunate to sustain itself to provide the community with financial support where it was most needed through the pandemic and beyond. We have embraced our way of hybrid working and diligently do this to with the use of urgraded digital technology, virtual meetings. We have continued to maintain support to our donors and borrowers. Our loyal donor's continued support enabled us to continue to collect vital Zakat donations and offer emergency support to families nationally. We were able to continue to engage and update our donors via emails, social media posts and telephone conversations. We have engaged with the communities by attending evets and meeting virtually and in person to gain more collaborative opportunities.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
In the financial year ended 31 March 2022, Ansar awarded 44 (2020-21: 11 loans) interest free loans amounting to £207,100 (2020-21: £50,000) in total. The loan figures for 2021/22 has been low due to pandemic resulting in the slow start to the year. We have to strengthen our loan approval process and performing additional checks on the potential borrower's ability to pay the loans back. Loans were given for debt consolidation, credit card arrears, weddings costs, emergency travel, house repairs, essential appliances and car purchase.
We offer interest free loans and charge an admin fee of £30 irrespective of the loan amount and term. Our policy is to give all applicants equal access to the loans.
Our Zakat fund allocated 7 payment in the financial year 2021-22, totalling to £1,400. Ansar Finance Group has delivered emergency support to families and individuals throughout the pandemic. We were fortunate enough to be in receipt of Zakat donations from our generous donors and wider community due to our promotion of this fund. We were able to signpost those in need to food banks and other support within their locality.
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Ansar Finance Group Limited
(Limited by Guarantee)
Report of the Trustees for the Year Ended 31 March 2022
| Event | Date Attended |
|---|---|
| Faith & Finance Webinar | Apr-21 |
| Collaboration meeting with YourB - MoU | May-21 |
| Salford University - Collaboration for Internship Programme | Jun-21 |
| Long-Term Donor Campaign - Home Loan | Aug-21 |
| Gatehouse Collaboration Meeting - Referrals for Home Loan | Sep-21 |
| MIC Collaboration - Potential Insurance for Cars & Buildind | Sep-21 |
| Technical & Compliance Advisors Meeting | Sep-21 |
| Salaam Charity Collaboration Meeting | Oct-21 |
| Lancashire County Council - Refugee Support Collaboration | Oct-21 |
| Money Laundering Training - Barclays Bank | Oct-21 |
| Manchester Islamic Grammar School for Girls - Riba Awareness | Nov-21 |
| Trafford Council - Access & Participation Community Event | Nov-21 |
| MMU - ISOC Stall Riba Awareness | Dec-21 |
| Xero Training for Trustees & Staff | Dec-21 |
| Ummathi - Bradford Football Zakat Fund-Raising Event | Dec-21 |
| Community Revival Training - Staff CPD | Jan-22 |
| MMU - Mental Health Awarness Session | Feb-22 |
| MMU - ISOC Ethical Finance Seminar | Mar-22 |
A Milestone Achievement:
Ansar also reached a milestone of giving out £4,500,000 in loans in its 28th year of operation, this was a big achievement for a community charity. Ansar aims to continue learning from its experience and find innovative solutions to provide interest free finance solutions to its communities in the many decades to come.
Ansar requires further promotion nationally and internationally to increase funds and offer a much-needed resource such as Home Loan scheme that is often asked about when we are networking. It has been acknowledged that we lack in certain areas such as marketing and communications due to the lack of resources in terms of human capital and financial terms. There is a need to develop a comprehensive market strategy with sufficient allocation of funds to ensure we acquire our market share when competing with other charities.
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Ansar Finance Group Limited (Limited by Guarantee)
Report of the Trustees for the Year Ended 31 March 2022
FINANCIAL REVIEW
Investment Policy
In accordance with the Memorandum and Articles of Association, the Trustees have the power to make and hold investments using the general funds of the charity. The policy of the charity is to invest in low risk, short to medium term investments. There is a need to develop an investment strategy to ensure our funds are diversified.
The annexed accounts show the state of the finances of the Charity at 31 March 2022, which the Trustees consider to be satisfactory.
Reserves Policy
The charity's unrestricted funds for the financial year have remained in surplus. It is the normal policy of the charity to maintain funds at a level sufficient to cover unforeseen and major expenditure and shortfalls in income.
FUTURE PLANS
Ansar will continue to work with its communities and partners to raise awareness about the prohibition of Riba/interest. Currently the financial climate is very uncertain across the whole finance industry Ansar will continue to work hard to increase its donor base and invest some of its surplus funds to ensure that the income is diversified. Collaborating with likeminded organisations to spread our message and design new products to help our communities, easing their financial difficulties in the many years to come. To further collaborate with other charities to reach more of the UK population.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is constituted by a Memorandum and Articles of Association dated 5 March 2014, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. It is registered with the Charity Commission under the charity number 1156023. The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust Deed. The Trustees have the power to appoint further trustees by a simple majority voting system.
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Ansar Finance Group Limited (Limited by Guarantee)
Report of the Trustees for the Year Ended 31 March 2022
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1156023
Registered office
59 Kingsway Manchester England M19 2LL
Trustees
Ali Akbar Mohammed Anjum Zulfiqar Mohammad Rafiq Abid Ahmed Satwilkar Naseer Nazar
Accountant
The Accountants & Management Consultants Ltd 6 Frome Drive Crumpsall Manchester M8 0GA
Independent examiner
Adnan Aslam Sahi 93 Crumpsall Street Bolton BL1 8 ET
SMALL COMPANY EXEMPTION
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 17 December 2022 and signed on its behalf by:
Anjum Zulfiqar Trustee (Chairman)
Ali Akbar Mohammed Trustee
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Accountant's Report to the Trustees of Ansar Finance Group Limited (Limited by Guarantee)
Accountant's report to the trustees of Ansar Finance Group (Limited by Guarantee) for the year ended 31 March 2022. ('the Company')
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of ANSAR FINANCE GROUP LIMITED for the year ended 31 March 2022 which comprise of the Profit and Loss Account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Chartered Institute of Management Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.cimaglobal.com.
Our work has been undertaken in accordance with the requirements of the Chartered Institute of Management Accountants as detailed at http://www.cimaglobal.com.
The Accountants & Management Consultants Ltd Chartered Management Accountants 6 Frome Drive Crumpsall Manchester M8 0GA
Date: 17 December 2022
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Independent Examiner's Report to the Trustees of Ansar Finance Group Limited (Limited by Guarantee)
Independent examiner's report to the trustees of Ansar Finance Group (Limited by Guarantee) ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts 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 eligible for independent examination, I report in respect of my examination of your 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
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:
-
accounting records were not kept in respect of the Company as required by section 396 of the 2006 Act; or
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the accounts do not accords with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any
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requirement that the accounts give a true and fair view which is not a matter considered as part of independent examination; or
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the accounts 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 drawn in this report in order to enable a proper understanding of the accounts to be reached.
Adnan Aslam Sahi ACCA 93 Crumpsall Street Bolton BL1 8ET
Date: 17 December 2022
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Ansar Finance Group Limited (Limited by Guarantee)
Statement of Financial Activities for the Year Ended 31 March 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3 Other trading activities 4 TOTAL EXPENDITURE ON Charitable activities 5 NET INCOME RECONCILIATION OF FUNDS Total funds brought forward 12 TOTAL FUNDS CARRIED FORWARD |
2022 Unrestricted fund £ 105,119 1,251 106,370 51,539 54,831 1,026,045 1,080,876 |
2021 Unrestricted fund £ 79,047 469 79,516 49,385 30,131 995,914 1,026,045 |
|---|---|---|
The notes form part of these financial statements Page 7
Ansar Finance Group Limited (Limited by Guarantee)
Balance Sheet At 31 March 2022
| Notes FIXED ASSETS Tangible assets 8 Investments 9 CURRENT ASSETS Debtors 10 Cash at bank and in hand CREDITORS Amounts falling due within one year 11 NET CURRENT ASSETS NET ASSETS FUNDS Unrestricted funds 12 TOTAL FUNDS |
2022 2021 Unrestricted Unrestricted fund fund £ £ 10,411 11,568 8 8 10,419 11,576 539,024 465,168 542,241 558,889 1,081,265 1,024,057 (10,808) (9,588) 1,070,457 1,014,469 1,080,876 1,026,045 1,080,876 1,026,045 1,080,876 1,026,045 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Section 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees on 17 December 2022 and were signed on its behalf by:
Anjum Zulfiqar Trustee (Chairman)
Ali Akbar Mohammed Trustee
The notes form part of these financial statements
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Ansar Finance Group Limited (Limited by Guarantee)
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Accounting policies
Basis of preparation of 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 un the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', 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.
Preparation of consolidated financial statements
The financial statements contain information about Ansar Finance Group Limited as an individual charity and do not contain consolidated financial information as the parent of the group. The company is exempt under Section 399 (2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
Related Party Exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
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 accrual 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.
Governance costs
Governance costs comprises costs for the running of the charity.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life:
Improvements to property 10% reducing balance Fixtures and fittings 15% reducing balance Computer equipment 25% reducing balance
Investment in subsidiaries
Investment in subsidiaries undertakings are recognised at cost.
Taxation
The charity is exempt from tax on its charitable activities.
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Ansar Finance Group Limited (Limited by Guarantee)
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
1 ACCOUNTING POLICIES - continued
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 restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Going concern
The charity’s financial statements for the year ended 31 March 2022 have been prepared on a going concern basis as, after making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.
Pensions costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
| 2 Employees The average number of employees during the year 3 DONATIONS AND LEGACIES Donations Gift Aid 4 OTHER TRADING ACTIVITIES Application & other fee 5 CHARITABLE ACTIVITIES Support costs |
2022 2 2022 £ 96,619 8,500 105,119 2022 £ 1,251 1,251 2022 £ 51,539 51,539 |
2021 3 2021 £ 70,699 8,348 79,047 2021 £ 469 469 2021 £ 49,385 49,385 |
|---|---|---|
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Ansar Finance Group Limited (Limited by Guarantee)
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
6 COMPARATIVES FOR THE STATEMENT FO FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies Other trading activities TOTAL EXPENDITURE ON Charitable activities NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 79,047 469 79,516 49,385 30,131 995,914 1,026,045 |
|---|---|
7 TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
Trustees' expenses
There were no trustees' expenses paid for the year 31 March 2022 nor for the year ended 31 March 2021.
8 TANGIBLE FIXED ASSETS
| COST At 1 April 2021 Additions Disposals At 31 March 2022 DEPRECIATION At 1 April 2021 Charge for the year Elimination on disposal At 31 March 2022 NET BOOK VALUE At 31 March 2022 At 31 March 2021 |
Improvements to property £ 10,012 - - 10,012 2,722 729 - 3,451 6,561 7,290 |
Fixtures and fittings £ 25,291 - - 25,291 21,631 366 - 21,997 3,294 3,660 |
Computer equipment £ 19,503 - - 19,503 18,885 62 - 18,947 556 618 |
Total £ 54,806 - - 54,806 43,238 1,157 - 44,395 10,411 11,568 |
|---|---|---|---|---|
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Ansar Finance Group Limited (Limited by Guarantee)
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
| 9 FIXED ASSET INVESTMENTS COST At 1 April 2020 NET BOOK VALUE At 31 March 2021 10 DEBTORS Trade debtors Amounts owed by group undertakings Other debtors 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Other taxes and social security costs Other creditors 12 MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund TOTAL FUNDS |
£ 1,026,045 1,026,045 Incoming resources £ 106,370 106,370 £ 995,914 995,914 At 1.4.20 At 1.4.21 |
2022 £ 8 8 2022 £ 214,317 311,857 12,850 539,024 2022 £ 294 289 10,225 10,808 Net movement in funds £ 54,831 54,831 Resources expended £ (51,539) (51,539) Net movement in funds £ 30,131 30,131 Shares in group |
2021 £ 8 8 2021 £ 147,643 312,107 5,418 465,168 2021 £ 430 284 8,874 9,588 £ 1,080,876 1,080,876 Movement in funds £ 54,831 54,831 £ 1,026,045 1,026,045 At 31.3.21 undertakings At 31.3.22 |
|---|---|---|---|
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Ansar Finance Group Limited (Limited by Guarantee)
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
12 MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 79,516 79,516 |
Resources expended £ (49,385) (49,385) |
Movement in funds £ 30,131 30,131 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
£ 995,914 995,914 At 1.4.20 |
Net movement in funds £ 84,962 84,962 |
£ 1,080,876 1,080,876 At 31.3.21 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 185,886 185,886 |
Resources expended £ (100,924) (100,924) |
Movement in funds £ 84,962 84,962 |
|---|---|---|---|
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Ansar Finance Group Limited (Limited by Guarantee)
Detailed Statement of Financial Activities for the Year Ended 31 March 2022
| INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Total donations and legacies Other trading activities Application fee Other income Total income resources EXPENDITURE Support costs Salaries Pensions Rates and water Light, heat and power Repairs and maintenance Telephone, fax and internet Stationery, printing and postage Subscriptions Hire of equipment Computer costs Advertising and marketing Insurance Staff travelling and welfare Sundry expenses Accountancy fees Legal and professional Depreciation Total resources expended Net income |
2022 £ 96,619 8,500 105,119 950 301 1,251 106,370 26,790 112 2,861 583 4,742 1,217 1,010 348 - 1,649 604 936 43 1,073 1,000 7,414 1,157 51,539 54,831 |
2021 £ 70,699 8,348 79,047 210 259 469 79,516 32,108 394 2,253 1,307 1,334 1,303 99 365 63 2,787 893 611 94 263 750 3,126 1,635 49,385 30,131 |
|---|---|---|
The page do not form part of the statutory financial statements Page 14