2022-02-28-accounts - Khatam Alnabaeen Limited

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Khatam Alnabaeen Limited

Charity No. 1168024

Company No. 08404576

Trustees' Report and Unaudited Accounts

28 February 2022

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 2022.

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.

1- Theology Courses

2- Mental Health Courses

Page 2

Khatam Alnabaeen Limited Trustees Annual Report

3- Conferences

4- Inter-faith and intra-faith conferences
5- Round table weekend discussions

ACHIEVEMENTS AND PERFORMANCE

Theology Courses: Term one started on 02/04/2021 and continued until 30/07/2021. Term two took place from 01/10/2021 to 30/01/2022.
Mental health courses: The first course was aimed at Clerics, improvising them with the most updated scientific and social approaches to the issues. The second course was held for the general members of the community, involving workshops and discussions in order to bring better understanding of the mental health issues surrounding them, their close families and loved ones.
We ran a conference titled "Raising Awareness on Disabilities in the Muslim Communities in the UK", which also included briefing of religious obligations towards this matter.
Annually an increasing number of interfaith and intra-faith conferences were organised and managed. The art of reconciliation and effective methods of solving disputes also take place as part of these events.
Round table weekend discussions are managed throughout the year with the vision of better parenting and creating a better environment for children's moral and mental state.

FINANCIAL REVIEW

During the year under review the charity received unrestricted income of £41,948 (2021: £108,759) and restricted income of £48,642 (2021: £69,705) and had an expenditure of £105,661 (2021: £123,064) and £57,811 (2021: £Nil) for unrestricted and restricted expenditure respectively. At the balance sheet date the charity held restricted and unrestricted funds of £549,878 (2021: £622,760).

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 £22,600 and £45,200. At the end of the year, the charity had unrestricted reserve fund of £419,265 and restricted reserve fund (not available for general purpose) of £130,613.

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.

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).

Page 3

Khatam Alnabaeen Limited Trustees Annual Report

Signed on behalf of the board

S.F. Hosseini-Milani Trustee 17 November 2022

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 financial statements of Khatam Alnabaeen Limited for the year ended 28 February 2022 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 financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the financial statements 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 financial statements 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 financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
the financial statements 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 financial statements to be reached.

Sajjad B Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF 17 November 2022

Page 5

Khatam Alnabaeen Limited Statement of Financial Activities

for the year ended 28 February 2022

Unrestricted funds 2022 £ 33,571 17 8,360	Restricted funds 2022 £ 48,642 - -	Total funds 2022 £ 82,213 17 8,360	Total funds 2021 £ 147,738 10 30,716
41,948 15,197 90,464	48,642 57,811 -	90,590 73,008 90,464	178,464 39,147 83,917
105,661 -	57,811 -	163,472 -	123,064 -
(63,713) -	(9,169) -	(72,882) -	55,400 -
(63,713)	(9,169)	(72,882)	55,400
(63,713) 480,692	(9,169) 142,068	(72,882) 622,760	55,400 567,360
416,979	132,899	549,878	622,760

Page 6

Khatam Alnabaeen Limited Summary Income and Expenditure Account

for the year ended 28 February 2022

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 (expenditure)/income before tax for the year Net (expenditure )/income for the year	2022 £ 90,573 17 90,590 148,653 14,819 163,472 (72,882) (72,882)	2021 £ 178,454 10
		178,464
		108,425 14,639
		123,064
		55,400
		55,400

Page 7

Khatam Alnabaeen Limited Balance Sheet

at 28 February 2022

Company No. 08404576 Notes 2022 £ Fixed assets Tangible assets 12 646,075 646,075 Current assets Debtors 13 1,192 Cash at bank and in hand 34,223 35,415 Creditors:Amount falling due within one year 14 (3,112) Net current assets 32,303 Total assets less current liabilities 678,378 Creditors:Amounts falling due after more than one year 15 (128,500) Net assets excluding pension asset or liability 549,878 Total net assets 549,878 The funds of the charity Restricted funds 16 Restricted income funds 132,899 132,899 Unrestricted funds 16 General funds 416,979 416,979 Reserves 16 Total funds 549,878	2021 £ 660,421
	660,421 9,877 83,255
	93,132 (2,293)
	90,839 751,260 (128,500)
	622,760
	622,760
	142,068
	142,068 480,692
	480,692
	622,760

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 2022 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 17 November 2022

And signed on its behalf by:

S.F. Hosseini-Milani

Trustee

17 November 2022

Page 8

Khatam Alnabaeen Limited Statement of Cash flows for the year ended 28 February 2022

Cash flows from operating activities Net (expenditure)/income per Statement of Financial Activities Adjustments for: Depreciation of property, plant and equipment Dividends, interest and rents from investments Decrease/(Increase) in trade and other receivables Increase/(Decrease) in trade and other payables Net cash (used in)/provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Dividends, interest and rents from investments Net cash from investing activities Net cash used in financing activities Net (decrease)/increase 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	2022 £ (72,882) 14,819 (8,377) 8,685 1,072 (56,683) (473) 8,377 7,904 - (48,779) 83,255 34,476 34,223 34,223	2021 £ 55,400 14,639 (30,726) (5,154) (6,058)
		28,101 (655) 30,726
		30,071

		(5,500)

		52,672
		30,583
		83,255

		83,255

		83,255

Page 9

Khatam Alnabaeen Limited Notes to the Accounts

for the year ended 28 February 2022

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

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

3 Statement of Financial Activities - prior year
Income and endowments from: Donations and legacies Investments Other 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 2021 £ 78,033 10 30,716 108,759 39,147 83,917 123,064 (14,305) (14,305) (14,305) 494,998 480,693	Restricted funds 2021 £ 69,705 - - 69,705 - - - 69,705 69,705 69,705 72,363 142,068	Total funds 2021 £ 147,738 10 30,716
			178,464 39,147 83,917
			123,064
			55,400
			55,400
			55,400 567,361
			622,761

Page 12

Khatam Alnabaeen Limited

Notes to the Accounts

4 Income from donations and legacies

Restricted £ - 3,500 56 6,286 38,800 48,642 Unrestricted £ 17 17 Unrestricted £ 8,360 8,360	Total 2022 £ 33,571 3,500 56 6,286 38,800 82,213 Total 2022 £ 17 17 Total 2022 £ 8,360 8,360	Total 2021 £ 78,033 455 5 2,579 66,666
		147,738
		Total 2021 £ 10
		10
		Total 2021 £ 30,716
		30,716

Restricted £ 57,811 - 57,811	Total 2022 £ 57,811 15,197 73,008	Total 2021 £ 39,147 -
		39,147

Page 13

Khatam Alnabaeen Limited Notes to the Accounts

8 Other expenditure

8	Other expenditure
		Unrestricted		Total	Total
				2022	2021
			£	£	£
	Employee costs		49,149	49,149	42,941
	Premises costs		7,611	7,611	6,834
	Amortisation, depreciation,
	impairment, profit/loss on		14,819	14,819	14,639
	disposal of fixed assets
	General administrative costs		17,085	17,085	17,703
	Legal and professional costs		1,800	1,800	1,800
			90,464	90,464	83,917
9	Net (expenditure)/income before transfers
			2022		2021
	This is stated after charging:		£		£
	Depreciation of owned fixed assets		14,819		14,639
10	Trustee remuneration and expenses
			2022		2021
			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 Social security costs Pension costs No employee received emoluments in excess of £60,000.	2022 48,172 - 977 49,149	2021 41,780 281 880
		42,941

The average monthly number of full time equivalent employees during the year was as follows:

Administration	2022 Number 3 3	2021 Number 2
		2

Page 14

Khatam Alnabaeen Limited Notes to the Accounts

12 Tangible fixed assets

Cost or revaluation At 1 March 2021 Additions At 28 February 2022 Depreciation and impairment At 1 March 2021 Depreciation charge for the year At 28 February 2022 Net book values At 28 February 2022 At 28 February 2021 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 15 Creditors: amounts falling due after more than one year Other loans	Land and buildings £ 686,332 - 686,332 44,165 9,227 53,392 632,940 642,167 2022 £ 300 892 1,192 2022 £ - 1,097 216 1,799 3,112 2022 £ 128,500 128,500	Fixture, fittings & equipment £ 27,606 473 28,079 9,352 5,592 14,944 13,135 18,254	Total £ 713,938 473
			714,411
			53,517 14,819
			68,336
			646,075
			660,421
			2021 £ 8,995 882
			9,877
			2021 £ 70 - 171 2,052
			2,293
			2021 £ 128,500
			128,500

Page 15

Khatam Alnabaeen Limited Notes to the Accounts

16 Movement in funds

At 1 March 2021 Restricted funds: Restricted income funds: Khums - Sehme Imam and Sehme Sadaat 4,752 Sadaqah 1,532 Khums - Sehme Imam 5,493 Education 128,520 Khums - Sehme Sadaat 1,771 Total 142,068 Unrestricted funds: General funds 480,692 Total funds 622,760 Purposes and restrictions in relation to the funds: Restricted funds: Khums - Sehme Imam and Sehme Sadaat Sadaqah Khums - Sehme Imam Education Khums - Sehme Sadaat	Incoming resources (including other gains/losses) £ 3,500 56 6,286 38,800 - 48,642 41,948 90,590	Resources expended £ - - - (57,811) - (57,811) (105,661) (163,472)	At 28 February 2022 £ 8,252 1,588 11,779 109,509 1,771
			132,899
			416,979
			549,878

17 Analysis of net assets between funds

Fixed assets Net current assets Creditors due in more than one year and provisions	Unrestricted funds £ 646,075 (1,920) (128,500) 515,655	Restricted funds £ - 34,223 - 34,223	Total £ 646,075 32,303 (128,500)
			549,878

Page 16

Khatam Alnabaeen Limited Notes to the Accounts

18 Reconciliation of net debt

Reconciliation of net debt
Cash and cash equivalents Borrowings Net debt	At 1 March 2021 £	Cash flows £	At 28 February 2022 £
	83,255	(49,032)	34,223
	83,255 (128,500) (128,500) (45,245)	(49,032) - - (49,032)	34,223 (128,500)
			(128,500)
			(94,277)

19 Commitments

Operating lease commitments

Annual commitments under non-cancellable operating leases are as follows:

	2022	2022	2021	2021
	Land and buildings	Other	Land and buildings	Other
	£	£	£	£
Operating leases with expiry date:
*Pension commitments*
		2022		2021
		£		£
The pension cost charge to the company
amounted to:		977		880

20 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