## **Khatam Alnabaeen Limited** **Charity No. 1168024** **Company No. 08404576** **Trustees' Report and Unaudited Accounts** **28 February 2021** **Khatam Alnabaeen Limited Contents** ||Pages|| |---|---|---| |Trustees' Annual Report|2 to 4|| |Independent Examiner's Report||5| |Statement of Financial Activities||6| |Summary Income and Expenditure Account||7| |Balance Sheet||8| |Statement of Cash flows||9| |Notes to the Accounts|10 to|17| Page 1 **Khatam Alnabaeen Limited Trustees Annual Report** The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 28 February 2021. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Company No. 08404576** ## **Charity No. 1168024** ## **Principal Office** Unit 6 Wellesly Court Apsley Way London NW2 7HF ## **Registered Office** Suite G1 Harstbourne House Delta Gain Watford WD19 5EF ## **Directors and Trustees** The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year: S.F. Hosseini-Milani M.E. Mesbahi S.E. Shahrestani ## **Accountants** Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF ## **OBJECTIVES AND ACTIVITIES** The purpose of the charity is promotion of racial and religious harmony through education. In shaping our objectives and activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'. The activities undertaken by the charity to promote its objectives and aims are stated below. ## **Significant activities** Due to Covid-19 All of our activities were conducted online using Skype and Zoom Page 2 **Khatam Alnabaeen Limited** ## **Trustees Annual Report** 1- We ran a course on Theology (in Arabic) for ladies whose mother tongue was Arabic. This course took place on Mondays and Tuesdays for a period of 20 weeks, and was taught by S M Rabbani 2- A course on Advanced level of Islamic Jurisprudence started on Monday 21st March 2020 and continued running every Monday and Wednesday between 1:30PM and 3PM. The course ended on the 4th of December 2020. 3- Monthly group discussion for the Family Affair’s Committee on the first Sunday of each month in partnership with Imam Ali Foundation. Dr Milani’s role in such gatherings was focused on the spiritual and social elements needed for families to build up a strong bond between them. 4- Running a summer course for Islam and Christianity that took place from the 22nd August till 28th August 2020. Eight Muslim students and similar number of Christian students (some to be ordained as priests) attended this course for a whole week. 5- An in-depth Theology course was arranged virtually over five consecutive Tuesdays in May/June 2020. The course took place between the hours of 11AM and 1PM. ## **ACHIEVEMENTS AND PERFORMANCE** The charity is publishing two more books on Islamic Law: The first being about (Islamic Commercial Law) which was published later in May 2021. The second book (Islamic Juridical System) which is going to be published soon. During the holy month of Ramadhan, which is from 26th April 2020 until 24th May 2020, virtual meetings were held for two hours per day where approximately 200 people attended and followed the online lecture, counselling and supplications. ## **FINANCIAL REVIEW** During the year under review the charity received unrestricted income of £108,759 (2020: £101,382) and restricted income of £69,705 (2020: £30,234) and had an expenditure of £123,064 (2020: £84,632) and £Nil (2020: £59,345) for unrestricted and restricted expenditure respectively. At the balance sheet date the charity held restricted and unrestricted funds of £622,761 (2020: £567,361). It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months running costs. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds maybe raised. Based on this policy the reserves to be held are between £21,000 and £42,000. At the end of the year, the charity had unrestricted reserve fund of £480,693 and restricted reserve fund (not available for general purpose) of £142,068. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The charity is a company limited by guarantee and is controlled by its Memorandum and Articles of Association dated 15 February 2013 as amended by special resolution dated 19 February 2016 and 27 June 2016. The charity may appoint any person who is willing to become a director/trustee. Page 3 **Khatam Alnabaeen Limited Trustees Annual Report** The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102). Signed on behalf of the board S.F. Hosseini-Milani Trustee 12 July 2021 Page 4 **Khatam Alnabaeen Limited Independent Examiners Report** ## **Independent Examiner's Report to the trustees of Khatam Alnabaeen Limited** I report to the charity trustees on my examination of the accounts of Khatam Alnabaeen Limited for the year ended 28 February 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes. ## **Responsibilities and basis of report** As the trustees of the charity (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 charity 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 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 can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that: - accounting records were not kept in accordance with section 386 of the 2006 Act ; or - the accounts do not accord with those records; or - the accounts do not comply with the accounting requirements under 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 - the accounts have not been prepared in accordance with the Charities SORP (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. Sajjad B Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF 12 July 2021 Page 5 **Khatam Alnabaeen Limited Statement of Financial Activities** ## **for the year ended 28 February 2021** |**Notes**
**Income and endowments**
**from:**
Donations and legacies
4
Investments
5
Other
6
**Total**
**Expenditure on:**
Charitable activities
7
Other
8
**Total**
Net gains on investments
**Net income/(expenditure)**
9
Transfers between funds
**Net income/(expenditure)**
**before other gains/(losses)**
**Other gains and losses**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
78,033
10
30,716|**Restricted**
**funds**
**2021**
**£**
69,705
-
-|**Total funds**
**2021**
**£**
147,738
10
30,716|**Total funds**
**2020**
**£**
131,626
-
-| |---|---|---|---|---| ||108,759
39,147
83,917|69,705
-
-|178,464
39,147
83,917|131,626
61,345
83,445| ||123,064
-|-
-|123,064
-|144,790
-| ||(14,305)
-|69,705
-|55,400
-|(13,164)
-| ||(14,305)|69,705|55,400|(13,164)| ||(14,305)
494,998|69,705
72,363|55,400
567,361|(13,164)
580,525| ||480,693|142,068|622,761|567,361| Page 6 **Khatam Alnabaeen Limited Summary Income and Expenditure Account** ## **for the year ended 28 February 2021** |Income
Interest and investment income
**Gross income for the year**
Expenditure
Depreciation and charges for
impairment of fixed assets
**Total expenditure for the year**
Net income/(expenditure) before tax
for the year
**Net income /(expenditure )for the year**|**2021**
**£**
178,454
10
178,464
108,425
14,639
123,064
55,400
55,400|**2020**
**£**
131,626
-| |---|---|---| |||131,626| |||132,619
12,171| |||144,790| |||(13,164)| |||(13,164)| Page 7 **Khatam Alnabaeen Limited Balance Sheet** ## **at 28 February 2021** |**Company No.**
**08404576**
**Notes**
**2021**
**£**
**Fixed assets**
Tangible assets
12
660,421
660,421
**Current assets**
Debtors
13
9,877
Cash at bank and in hand
83,255
93,132
**Creditors:**Amount falling due within one year
14
(2,292)
**Net current assets**
90,840
**Total assets less current liabilities**
751,261
**Creditors:**Amounts falling due after more than one year
15
(128,500)
**Net assets excluding pension asset or liability**
622,761
**Total net assets**
622,761
**The funds of the charity**
**Restricted funds**
16
Restricted income funds
142,068
142,068
**Unrestricted funds**
16
General funds
480,693
480,693
**Reserves**
16
**Total funds**
622,761|**2020**
**£**
674,405| |---|---| ||674,405
4,723
30,583| ||35,306
(8,350)| ||26,956
701,361
(134,000)| ||567,361| ||567,361| ||72,363| ||72,363
494,998| ||494,998| ||567,361| These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. For the year ended 28 February 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. Approved by the board on 12 July 2021 And signed on its behalf by: S.F. Hosseini-Milani Trustee 12 July 2021 Page 8 **Khatam Alnabaeen Limited Statement of Cash flows for the year ended 28 February 2021** |**Cash flows from operating activities**
**Net income/(expenditure) per Statement of Financial Activities**
**Adjustments for:**
Depreciation of property, plant and equipment
Dividends, interest, rents from investments and government
grant
Increase in trade and other receivables
(Decrease)/Increase in trade and other payables
**Net cash provided by operating activities**
**Cash flows from investing activities**
Payments for property, plant and equipment
Dividends, interest, rents from investments and government
grant
**Net cash from/(used in) investing activities**
**Cash flows from financing activities**
Repayment of borrowings
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash equivalents**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**
**Components of cash and cash equivalents**
Cash and bank balances|**2021**
**£**
55,400
14,639
(30,726)
(5,154)
(6,058)
28,101
(655)
30,726
30,071
(5,500)
(5,500)
52,672
30,583
83,255
83,255
83,255|**2020**
**£**
(12,351)
12,171
-
(1,406)
2,261| |---|---|---| |||675
(27,743)
-| |||(27,743)| |||(43,000)| |||(43,000)| |||| |||(70,068)| |||101,464| |||31,396| |||| |||30,583| |||| |||30,583| Page 9 **Khatam Alnabaeen Limited Notes to the Accounts** ## **for the year ended 28 February 2021** - 1 **Accounting policies** ## **Basis of preparation** The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **Change in basis of accounting or to previous accounts** There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years. ## **Fund accounting** - Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. - Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. - Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal. ## **Income** - Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. - Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. - Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income. - Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. - Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets Page 10 **Khatam Alnabaeen Limited Notes to the Accounts** ## **Expenditure** - Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates. - Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs. - Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. - Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs. - Other expenditure These are support costs not allocated to a particular activity. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Tangible fixed assets and depreciation** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Freehold property 2%% on cost Fixture, fittings & equipment 20%% on cost ## **Trade and other debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. ## **Trade and other creditors** Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Page 11 **Khatam Alnabaeen Limited Notes to the Accounts** ## **Foreign currencies** Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are taken into account in arriving at net income/expenditure. ## **Pension costs** The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. ## **Receipt of donated goods, facilities and services** All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity. ## 2 **Company status** The company is a private company limited by guarantee and consequently does not have share capital. ## 3 **Statement of Financial Activities - prior year** |**Income and endowments from:**
Donations and legacies
**Total**
**Expenditure on:**
Charitable activities
Other
**Total**
**Net income**
**Net income before other**
**gains/(losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
101,382
101,382
2,000
83,445
85,445
15,937
15,937
15,937
479,061
494,998|**Restricted**
**funds**
**2020**
**£**
30,244
30,244
59,345
-
59,345
(29,101)
(29,101)
(29,101)
101,464
72,363|**Total funds**
**2020**
**£**
131,626| |---|---|---|---| ||||131,626
61,345
83,445| ||||144,790| ||||(13,164)| ||||(13,164)| ||||(13,164)
580,525| ||||567,361| Page 12 **Khatam Alnabaeen Limited** ## **Notes to the Accounts** |4
**Income from donations and legacies**
General donation
Khums - Sehme Imam and
Sehme Sadaat
Sadaqah
Khums - Sehme Imam
Education
Khums - Sehme Sadaat
5
**Income from investments**
Interest income
6
**Other income**
Government grant
7
**Expenditure on charitable activities**
_Expenditure on charitable_
_activities_
Education
General donation
_Governance costs_|**Unrestricted**
**£**
78,033
-
-
-
-
-
78,033|**Restricted**
**£**
-
455
5
2,579
66,666
-
69,705
**Unrestricted**
**£**
10
10
**Unrestricted**
**£**
30,716
30,716|**Total**
**2021**
**£**
78,033
455
5
2,579
66,666
-
147,738
**Total**
**2021**
**£**
10
10
**Total**
**2021**
**£**
30,716
30,716|**Total**
**2020**
**£**
101,382
-
24
10
30,200
10| |---|---|---|---|---| |||||131,626| |||||**Total**
**2020**
**£**
-| |||||-| |||||**Total**
**2020**
**£**
-| |||||-| |||||| |||**Unrestricted**
**£**
39,147
-
39,147|**Total**
**2021**
**£**
39,147
-
39,147|**Total**
**2020**
**£**
59,345
2,000| |||||61,345| Page 13 **Khatam Alnabaeen Limited Notes to the Accounts** ## 8 **Other expenditure** |8|**Other expenditure**||||| |---|---|---|---|---|---| |||**Unrestricted**||**Total**|**Total**| |||||**2021**|**2020**| ||||**£**|**£**|**£**| ||Employee costs||42,941|42,941|57,861| ||Premises costs||6,834|6,834|8,779| ||Amortisation, depreciation,||||| ||impairment, profit/loss on||14,639|14,639|12,171| ||disposal of fixed assets||||| ||General administrative costs||17,703|17,703|2,834| ||Legal and professional costs||1,800|1,800|1,800| ||||83,917|83,917|83,445| |9|**Net income/(expenditure) before transfers**||||| ||||**2021**||**2020**| ||This is stated after charging:||**£**||**£**| ||Depreciation of owned fixed assets||14,639||12,171| ||Independent Examiner's fee||1,800||1,800| |10|**Trustee remuneration and expenses**||||| ||||**2021**||**2020**| ||||**Number**||**Number**| ||The nature of the reimbursed expenses|There was no trustees' remuneration or other benefits for|||| |||the year ended 29|February 2020 nor for the year ended||| |||28 February 2019.|||| |11|**Staff costs**||||| ||Salaries and wages||41,780||55,660| ||Social security costs||281||1,068| ||Pension costs||880||1,133| ||||42,941||57,861| ||No employee received emoluments in excess|of £60,000.|||| The average monthly number of full time equivalent employees during the year was as follows: |Administration|**2021**
**Number**
2
2|**2020**
**Number**
3| |---|---|---| |||3| Page 14 **Khatam Alnabaeen Limited Notes to the Accounts** ## 12 **Tangible fixed assets** |**Cost or revaluation**
At 1 March 2020
Additions
At 28 February 2021
**Depreciation and**
**impairment**
At 1 March 2020
Depreciation charge for the
year
At 28 February 2021
**Net book values**
At 28 February 2021
At 29 February 2020
13 **Debtors**
Other debtors
Prepayments and accrued income
14 **Creditors:**
amounts falling due within one year
Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income|**Land and**
**buildings**
**£**
686,332
-
686,332
34,938
9,227
44,165
642,167
651,394
**2021**
**£**
8,995
882
9,877
**2021**
**£**
70
-
171
2,051
2,292|**Fixture,**
**fittings &**
**equipment**
**£**
26,951
655
27,606
3,940
5,412
9,352
18,254
23,011|**Total**
**£**
713,283
655| |---|---|---|---| ||||713,938| ||||38,878
14,639| ||||53,517| ||||660,421| ||||674,405| ||||**2020**
**£**
3,904
819| ||||4,723| ||||**2020**
**£**
1,365
1,195
3,990
1,800| ||||8,350| ||||| |15 **Creditors:**
amounts falling due after more than one year
Other loans|**2021**
**£**
128,500
128,500||**2020**
**£**
134,000| ||||134,000| Page 15 **Khatam Alnabaeen Limited Notes to the Accounts** ## 16 **Movement in funds** |**At 1 March**
**2020**
**Restricted funds:**
**Restricted income funds:**
Khums - Sehme Imam and
Sehme Sadaat
4,297
Sadaqah
1,527
Khums - Sehme Imam
2,914
Education
61,854
Khums - Sehme Sadaat
1,771
_Total_
72,363
**Unrestricted funds:**
**General funds**
494,998
**Revaluation Reserves:**
**Total funds**
567,361
Purposes and restrictions in relation to the funds:
Restricted funds:
Khums - Sehme Imam and
Sehme Sadaat
Sadaqah
Khums - Sehme Imam
Education
Khums - Sehme Sadaat
17 **Analysis of net assets between funds**
Fixed assets
Net current assets
Creditors due in more than one year and
provisions|**Incoming**
**resources**
**(including**
**other**
**gains/losses)**
**£**
455
5
2,579
66,666
-
69,705
108,759
178,464|**Resources**
**expended**
**£**
-
-
-
-
-
-
(123,064)
(123,064)|**At 28**
**February**
**2021**
**£**
4,752
1,532
5,493
128,520
1,771| |---|---|---|---| ||||142,068| ||||480,693| ||||622,761| ||||| ||||| ||||| ||||| ||||| ||||| ||||| ||**Unrestricted**
**funds**
**£**
660,421
7,585
(128,500)
539,506|**Restricted**
**funds**
**£**
-
83,255
-
83,255|**Total**
**£**
660,421
90,840
(128,500)| ||||622,761| Page 16 **Khatam Alnabaeen Limited Notes to the Accounts** ## 18 **Reconciliation of net debt** |18 **Reconciliation of net debt**|||| |---|---|---|---| |Cash and cash equivalents
Borrowings
Net debt|**At 1 March**
**2020**
**£**|**Cash flows**
**£**|**At 28**
**February**
**2021**
**£**| ||30,583|52,672|83,255| ||30,583
(134,000)
(134,000)
(103,417)|52,672
5,500
5,500
58,172|83,255
(128,500)| ||||(128,500)| ||||(45,245)| ||||| |19 **Commitments**
**_Operating lease commitments_**
Annual commitments under non-cancellable operating leases
**2021**
**Land and**
**buildings**
**£**
Operating leases with expiry date:
**_Pension commitments_**
The pension cost charge to the company
amounted to:|are as follows:
**2021**
**Other**
**£**
**2021**
**£**
880|**2020**
**Land and**
**buildings**
**£**|**2020**
**Other**
**£**
**2020**
**£**
1,133| ## 20 **Post balance sheet events** The Covid-19 pandemic occurred during the year and continues subsequent to the company’s year end. The directors have carefully considered the likely effect of the Covid-19 pandemic on the future performance of the company and consider that it is likely to have an adverse impact on this. However, the directors consider that the company has sufficient resources to enable it to remain in business for the foreseeable future. ## 21 **Related party disclosures** ## _**Controlling party**_ The company is limited by guarantee and has no share capital; thus no single party controls the company. Page 17