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2023-02-28-accounts

Khatam Alnabaeen Limited

Charity No. 1168024

Company No. 08404576

Trustees' Report and Unaudited Accounts

28 February 2023

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
Detailed Statement of Financial Activities 18 to 19

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 2023.

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

Page 2

Khatam Alnabaeen Limited Trustees Annual Report

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.

The activities undertaken by the charity to promote its objectives and aims are as follows;

1- Theology Courses

4- Inter-faith and intra-faith conferences

ACHIEVEMENTS AND PERFORMANCE

  1. 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.

  2. Theology Courses: Term one started on 14/3/2022 and continued until 29/7/2022. Term two took place on the 1st of September 2022 and ended on the 30th of January 2023.

  3. Organised a conference titled (Need for reform in our communities). This conference focused upon Peaceful Existence and guidelines for good citizens.

  4. Mental Health Courses: The first course was aimed at preachers, improvising them with the most updated scientific and social approaches to the issues. The second course 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.

  5. 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.

  6. In co-operation with the Centre for Muslim-Christian Studies in Oxford, interfaith and intra-faith conferences have been organised and managed.

FINANCIAL REVIEW

During the year under review the charity received unrestricted income of £82,170 (2022: £41,948) and restricted income of £50,855 (2022: £48,642) and had an expenditure of £107,494 (2022: £105,661) and £30,941 (2022: £57,811) for unrestricted and restricted expenditure respectively. At the balance sheet date the charity held unrestricted and restricted funds of £381,655 (2022: £416,979) and £152,813 (2022: £132,899) respectively.

Page 3

Khatam Alnabaeen Limited

Trustees Annual Report

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 £29,300 and £58,600. At the end of the year, the charity had unrestricted reserve fund of £381,655.

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.

Statement of Trustees' Responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the applicable law and United Kingdom's accounting standards (United Kingdom's generally accepted accounting practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of affairs of the charity and of incoming resources and the application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:

  1. Select suitable Accounting policies and apply them consistently;

  2. Observe the methods and principles in the Charities Statement of Recommended Practice;

  3. Make judgements and estimates that are reasonable and prudent;

  4. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

  5. Prepare the financial statements on the going concern basis unless its inappropriate to presume that the charity will continue in business.

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

23 November 2023

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 2023.

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 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:

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 23 November 2023

Page 5

Khatam Alnabaeen Limited Statement of Financial Activities

for the year ended 28 February 2023

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 expenditure
9
Transfers between funds
Net 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
2023
£
76,371
149
5,650		 Restricted
funds
2023
£
50,855
-
-		 Total funds
2023
£
127,226
149
5,650		 Total funds
2022
£
82,213
17
8,360
82,170
250
117,244		 50,855
30,941
-		 133,025
31,191
117,244		 90,590
73,008
90,464
117,494
-		 30,941
-		 148,435
-		 163,472
-
(35,324)
-		 19,914
-		 (15,410)
-		 (72,882)
-
(35,324) 19,914 (15,410) (72,882)
(35,324)
416,979		 19,914
132,899		 (15,410)
549,878		 (72,882)
622,760
381,655 152,813 534,468 549,878

Page 6

Khatam Alnabaeen Limited Summary Income and Expenditure Account

for the year ended 28 February 2023

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 before tax for the year
Net expenditure for the year		 2023
£
132,876
149
133,025
134,086
14,349
148,435
(15,410)
(15,410)		 2022
£
90,573
17
90,590
148,653
14,819
163,472
(72,882)
(72,882)

Page 7

Khatam Alnabaeen Limited Balance Sheet

at 28 February 2023

Company No.
08404576
Notes
2023
£
Fixed assets
Tangible assets
12
631,727
631,727
Current assets
Debtors
13
7,543
Cash at bank and in hand
28,880
36,423
Creditors:Amount falling due within one year
14
(3,182)
Net current assets
33,241
Total assets less current liabilities
664,968
Creditors:Amounts falling due after more than one year
15
(130,500)
Net assets excluding pension asset or liability
534,468
Total net assets
534,468
The funds of the charity
Restricted funds
16
Restricted income funds
152,813
152,813
Unrestricted funds
16
General funds
381,655
381,655
Reserves
16
Total funds
534,468		 2022
£
646,076
646,076
1,192
34,223
35,415
(3,113)
32,302
678,378
(128,500)
549,878
549,878
132,899
132,899
416,979
416,979
549,878

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 2023 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 23 November 2023

And signed on its behalf by:

S.F. Hosseini-Milani Trustee

23 November 2023

Page 8

Khatam Alnabaeen Limited Statement of Cash flows for the year ended 28 February 2023

Cash flows from operating activities
Net expenditure per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
(Increase)/Decrease in trade and other receivables
Increase in trade and other payables
Net cash used in operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Net cash from investing activities
Cash flows from financing activities
Repayment of borrowings
Net cash from financing activities
Net 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		 2023
£
(15,410)
14,349
(5,799)
(6,351)
69
(13,142)
5,799
5,799
2,000
2,000
(5,343)
34,223
28,880
28,880
28,880		 2022
£
(72,882)
14,819
(8,377)
8,685
1,072
(56,683)
8,377
7,904
-
-
(48,779)
83,255
34,476
34,223
34,223

Page 9

Khatam Alnabaeen Limited Notes to the Accounts

for the year ended 28 February 2023

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.

The charity meets the definition of public benefit entity.

The accounts are prepared in Great British Pounds which is the main functional and presentational currency.

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.

Page 10

Khatam Alnabaeen Limited Notes to the Accounts

Income

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.

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Page 11

Khatam Alnabaeen Limited Notes to the Accounts

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.

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.

Page 12

Khatam Alnabaeen Limited

Notes to the Accounts

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
4
Income from donations and legacies
General donation
Khums - Sehme Imam and
Sehme Sadaat
Sadaqah
Khums - Sehme Imam
Education
5
Income from investments
Interest receivable		 Unrestricted
£
76,371
-
-
-
-
76,371		 Unrestricted
funds
2022
£
33,571
17
8,360
41,948
15,197
90,464
105,661
(63,713)
(63,713)
(63,713)
480,692
416,979
Restricted
£
-
-
-
-
50,855
50,855
Unrestricted
£
149
149		 Restricted
funds
2022
£
48,642
-
-
48,642
57,811
-
57,811
(9,169)
(9,169)
(9,169)
142,068
132,899
Total
2023
£
76,371
-
-
-
50,855
127,226
Total
2023
£
149
149		 Total funds
2022
£
82,213
17
8,360
90,590
73,008
90,464
163,472
(72,882)
(72,882)
(72,882)
622,760
549,878
Total
2022
£
33,571
3,500
56
6,286
38,800
82,213
Total
2022
£
17
17

Page 13

Khatam Alnabaeen Limited Notes to the Accounts

6 Other income

JRS Grant
Gift Aid
7
Expenditure on charitable activities
Expenditure on charitable
activities
Education
General donation
Governance costs
8
Other expenditure
Employee costs
Motor and travel costs
Premises costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs
9
Net expenditure before transfers
This is stated after charging:
Depreciation of owned fixed assets
Independent Examiner's fee		 Unrestricted
£
-
250
250		 Unrestricted
£
-
5,650
5,650		 Total
2023
£
-
5,650
5,650		 Total
2022
£
8,360
-
8,360
Restricted
£
30,941
-
30,941
Unrestricted
£
75,327
204
9,072
14,349
16,492
1,800
117,244
2023
£
14,349
1,800		 Total
2023
£
30,941
250
31,191
Total
2023
£
75,327
204
9,072
14,349
16,492
1,800
117,244		 Total
2022
£
57,811
15,197
73,008
Total
2022
£
49,149
-
7,611
14,819
17,085
1,800
90,464
2022
£
14,819
1,800

Page 14

Khatam Alnabaeen Limited Notes to the Accounts

2023 2022 Number Number

10 Trustee remuneration and expenses

The nature of the reimbursed expenses There was no trustees' remuneration or other benefits for the year ended 28 February 2023 nor for the year ended 28 February 2022.

11 Staff costs

Salaries and wages
Pension costs		 2023
73,830
1,497
75,327		 2022
48,172
977
49,149

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
12 Tangible fixed assets
Cost or revaluation
At 1 March 2022
At 28 February 2023
Depreciation and
impairment
At 1 March 2022
Depreciation charge for the
year
At 28 February 2023
Net book values
At 28 February 2023
At 28 February 2022
13 Debtors
Other debtors
Prepayments and accrued income		 2023
Number
4
4
Land and
buildings
£
686,332
686,332
53,391
9,227
62,618
623,714
632,941
2023
£
6,090
1,453
7,543		 Fixture,
fittings &
equipment
£
28,079
28,079
14,944
5,122
20,066
8,013
13,135		 2022
Number
3
3
Total
£
714,411
714,411
68,335
14,349
82,684
631,727
646,076
2022
£
300
892
1,192

Page 15

Khatam Alnabaeen Limited Notes to the Accounts

14 Creditors:

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		 2023
£
122
913
347
1,800
3,182
2023
£
130,500
130,500		 2022
£
-
1,097
216
1,800
3,113
2022
£
128,500
128,500

Included in the creditors falling due after more than one year is an amount of £103,500 (2022: £101,500) due to a trustee. The loan is interest free and no guarantees have been provided.

Page 16

Khatam Alnabaeen Limited Notes to the Accounts

16 Movement in funds

Restricted funds:
Restricted income funds:
Khums - Sehme Imam and
Sadaat
Sadaqah
Khums - Sehme Imam
Education
Orphans
Total
Unrestricted funds:
General funds
Total funds		 At 1 March
2022
8,252
1,588
11,779
109,509
1,771
132,899
416,979
549,878		 Incoming
resources
(including
other
gains/losses)
£
-
-
-
50,855
-
50,855
82,170
133,025		 Resources
expended
£
-
-
-
(30,941)
-
(30,941)
(117,494)
(148,435)		 At 28
February
2023
£
8,252
1,588
11,779
129,423
1,771
152,813
381,655
534,468

Purposes and restrictions in relation to the funds:

Restricted funds: Khums - Sehme Imam and Funds received as obligatory religious payments, to be utilised in Sadaat accordance to the teachings of the Islamic faith and at the discretion of the trustees. Sadaqah Donations received to be used for the poor and the needy. Khums - Sehme Imam Funds received as obligatory religious payments, to be utilised in accordance to the teachings of the Islamic faith and at the discretion of the trustees. Education This fund is used for the education activities of the charity. Orphans This fund is used for the general well being of the orphans.

17 Analysis of net assets between funds

Analysis of net assets between funds
Fixed assets
Net current assets
Creditors due in more than one year and
provisions		 Unrestricted
funds
£
631,727
4,361
(130,500)
505,588		 Restricted
funds
£
-
28,880
-
28,880		 Total
£
631,727
33,241
(130,500)
534,468

Page 17

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
2022
£		 Cash flows
£		 At 28
February
2023
£
34,223 (5,343) 28,880
34,223
(128,500)
(128,500)
(94,277)		 (5,343)
(2,000)
(2,000)
(7,343)		 28,880
(130,500)
(130,500)
(101,620)

19 Commitments

Operating lease commitments

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

2023 2023 2022 2022
Land and
buildings		 Other Land and
buildings		 Other
£ £ £ £
Operating leases with expiry date:
Pension commitments
2023 2022
£ £
The pension cost charge to the company
amounted to: 1,497 977

20 Related party disclosures

Related party transaction

Included in the restricted charitable activities expenditure is an amount of £4,500 (2022: £Nil) paid to an individual related to a trustee for the services rendered for the digitisation project.

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 18

Khatam Alnabaeen Limited Detailed Statement of Financial Activities

for the year ended 28 February 2023

Income and endowments from:
Donations and legacies
General donation
Khums - Sehme Imam and Sehme
Sadaat
Sadaqah
Khums - Sehme Imam
Education
Investments
Interest receivable
Other
JRS Grant
Gift Aid
Total income and endowments
Expenditure on:
Charitable activities
Education
General donation
Total of expenditure on charitable
activities
Employee costs
Salaries/wages
Pension costs
Motor and travel costs
Travel and subsistence
Premises costs
Rates
Light, heat and power
Premises insurances
Premises repairs and
maintenance
Other premises costs		 Unrestricted
funds
2023
£
76,371
-
-
-
-		 Restricted
funds
2023
£
-
-
-
-
50,855
50,855
-
-
-
-
-
50,855
30,941
-
30,941
30,941
-
-
-
-
-
-
-
-
-
-
-		 Total funds
2023
£
76,371
-
-
-
50,855
127,226
149
149
-
5,650
5,650
133,025
30,941
250
31,191
31,191
73,830
1,497
75,327
204
204
3,053
3,174
880
757
1,208
9,072		 Total funds
2022
£
33,571
3,500
56
6,286
38,800
76,371 82,213
149 17
149 17
-
5,650		 8,360
-
5,650 8,360
82,170
-
250		 90,590
57,811
15,197
250 73,008
250
73,830
1,497		 73,008
48,172
977
75,327 49,149
204 -
204 -
3,053
3,174
880
757
1,208		 2,970
2,277
824
1,540
-
9,072 7,611

Page 19

Khatam Alnabaeen Limited

Detailed Statement of Financial Activities

General administrative costs,
including depreciation and
amortisation
Depreciation of land and
buildings
Depreciation of Fixture, fittings &
equipment
Bank charges
Software, IT support and related
costs
Telephone, fax and broadband
Legal and professional costs
Accountancy and bookkeeping
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net expenditure
Net expenditure before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 9,227
5,122
165
15,432
895		 -
-
-
-
-
-
-
-
-
30,941
-
19,914
19,914
-
19,914
132,899
152,813		 9,227
5,122
165
15,432
895
30,841
1,800
1,800
117,244
148,435
-
(15,410)
(15,410)
-
(15,410)
549,878
534,468		 9,227
5,592
117
16,105
863
30,841 31,904
1,800 1,800
1,800 1,800
117,244 90,464
117,494
-		 163,472
-
(35,324) (72,882)
(35,324)
-		 (72,882)
-
(35,324) (72,882)
416,979 622,760
381,655 549,878

Page 20