The Institute of Ismaili Studies Trustees, Report and Financial Slalemenls for the Year Ended 31 December 2024 Company number.. 01324858 Registered Charity number.. 1179135 ENV218264044e07-DABE41529-ECAA 2910512025 13.03 PM UTC Table of Contents Reference and Adminislralive inlormalion Trustees. Report for the year ended 31 December 2024. Independent Auditor's Report.......... Slalemenl of Financial A¢livities .12 Balance Sheel........... .13 Cashflow Slalemenl. .14 Notes lo the Financial Statements 15 ENV218264044607-DA8E-0529-ECAA 2910512025 13 03 PM UTC Reference and Administrative Information Directors and Trnst$ès The members oflhe Board of Trustees. who are also Directors for CompaniesAcl purposes. al the dale on which the financial slalemenls were approved, the members who served on the Board of Trustees during the financial year and the Committee of the Board of Trustees that mernbers served on during thè financial year were as follows.. His Late Highness Prince Karim Aga Khan IV Ideceased 4th February 20251 His Highness Prince Rahim Aga Khan V lappoinled 18th February 20251 Mrs Karina Govindji lal Mr Naguib Kherai, CBE lal Mr Habib Molani lal lal Board of Governors Commitleo Board of Governors Professor Ali Asani Dr Farhad Daftary Mrs Karina Govindji Dr Arif Jamal Dr Nadia Eboo Jamal Mr Rahim Karim Mr Alykhan Kassam MrAmyn Kassim-Lakha Professor Tashmin Khamis Mr Naguib Kheraj. CBE Dr Sharofal Mamadambarova Dr Shogufa Mir Malekyar Mr Habib Molani Professor Nacim Pak-shiraz Professor Farid F. Panjwani Secreta Mr Habib Molani Re istered Offlce Ag8 Khan Centr& 10 Handyside Street King's Cross London. N1C 4DN istered Auditors UHY Hacker Young LLP Quadrant House 4 Thomas More Square London, E?W 1YW Bankers Lloyds Bank 113-117 Oxford Street London W1D 2HW Company number.. 01324858 Register￿ Charity number.. 1179135 ENV218264044607-DA8E-0529-ECAA 2910512025 13'.03 PM UTC Trustees. Report for the year ended 31 December 2024 The Trustees, Report incorporates the Directors, and Strategic Report for the year ended 31 December 2024. ACCOUNTING POLICIES Basls of Preparation The financial slalemenls have been prepared in accordance with the a¢¢ounling policies sel out in the notes lo the accoun15 and ¢omply with the governing document of The Inslilule of15maili Studies, I'The Institute "IIS" or 'lhe charity"), the Charities Act 2011, Accounting and Reporting by Charities". Slalement of Recommended Practice ISORPI 2019 applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ ol I￿land IFRS1021, and the Companies Act 2006. STRUCTURE, GOVERNANCE AND MANAGEMENT Organl$atlonal Structure The Trustees have ultimate responsibility for all aspects of thework of The Institute and for Its acadetnic, linanGial and investment policies and strategic direction. In 2024, they delegated the day-lo-day management of The Institute to its Director, Professor Zayn Kassam, who operated through her departmental and unil heads. The co-ordination of the work of The Inslilule was the responsibility of the Director. The Trustees continued to participate in the strategic decision-making processes of The Institute through the Diieclor and the system of committees and sub-committees. Gov&rning Document The Institute is a company limited by guarantee and having a share capital and was incorporated on 9 August 1977. 11 becatne a registered chartty on 10 July 2018. The objects and powers of The Inslilule were established in ils Memorandum of Asso¢i8lion, and f( is governed by (fs Articles of AssocialK)n as arnended by special resolution on 2 July 2018. Key Managgm•nt Personnel The charity's Trustees, ils comrnittee5 and sub-committees, the Director and the departmental heads comprise the key management personnel of the charity in charge of directing. controlling and running th& charity Dn a day-lo-day basis. All Trustee5 give their lime freely and nts Trustee re￿iVed remuneration for their roles in the year. The remuneration of key management is determined within a framework approved by the Trustees. The framework seeks lo lake into consideration various factors, such as inflation, performance and remuneration levels al comparable institutions. Trustees, Appointment, IndLbCtion and Training As sel out in the Articles olAssociation, the Trustees are appointed and removed by the holderlsl of a simple majority of the issued share capital of The Inslilute. Arrangements are made lo ensu￿ that Trustees are aware of the aims and objectives of the charity, as well as their responsibilities. All the Trustees have acquired an in-depth knowledge of the work of The Inslilule. including its charitable objectives, and through ((s annual budget process they monitor The Inslilule's perfomance in achieving ils charitable objectives. The Trustees were also involved in the approval of The Inslrtule's new strategic plan. Additionally, information published by the Charity Commission for trustees is made available lo the Trustees. On 4 February 2025, The Inslilule'5 founder and Chair, His Highness Prince Karim Aga Khan IV, passed away peacefully al his residence in Lisbon. Portugal. The Trustees wish to record their gratitude on behalf of The Institute for the extraordinary visionary direction and support which the Founder Chair provided ID The Inslilule since ils inception. Following his accession as the 50th hereditary Imam of the Shia Imami Muslims, His Highness Prince Rahim Aga Khan V was appointed as a Trustee of The Inslilule on 18 February 2025 and became ils Chair. ENV218264044607-DABE-0529-ECAA 29105r2025 13'.03 PM UTC Prlnclpal Rlsks and Uncertalnties The Truslees have assessed and continue lo reass&ss the major risks lo which the charity is exposed. in particular those ielaled lo the operations. compliance with law and regulation and finances of the charity. The major risks facing IIS are il the loss of key acadernics and faculty staff, who cannot be readily replaced due lo IIS operating in a specialised field, ill significanl damage lo the holdings of the library and the special colleclsons due to fire, flooding or other risks, iiil the inability to recruit students due lo geopolitical developments and UK immigration ¢onslrainls ivl cybersecurity risk and vl the level of inflation in the UK and ils likely impact on the charity's future plans and budgets and ils funding. The Trustees, through the Director and various committees. monitor the above risks on an on%oing basis and are satisfied with the plans put in place ID miligale them. Related Parties The Inslilule owns no subsidiary companies bul itself is owned 98Qh by the Aga Khan Foundation, a registered foundation in Switzerland. The Institute has common interests with the Aga Khan Universty Foundation, Aga Khan Foundalk)n (United Kingdom) and Islamic Publications Limited. OBJECTIVES OF THE CHARITY Aims and Ob5¢ctiv&s The objects of the charity are, for the public benefrt. to assi51 in the advancement of education and learning or any other exclusively chaiilable obje¢l (under the laws of England and Vvalesl, including {wilhoul limiting the generality of the foregoingl.. to encourage, extend, increase, di5seminale and promote knowledge of. and lo promote. CDnducl and 5UPPOrt research (including through the dissemination of the useful results of such research) into, the religious, spirilkjal and cultural heritage of the Shia Imami Ismaili Tariqah of Islam, and lo conduct and support research into any other religious fa11hs, beliefs or practices and lo disseminate the useful results thereof.. and Its establish, carry on, and SUPPOrt the educational inslrtulion known by the charity'5 name and such other educational instrtutions and programmes as the Board of Trustees sees fil. Public benefit The Institute, through ils governing body. the Board of Trustees, is aware of its responsibilitios as a Charity lo act for the public benefi't across rts activities and has had due regard lo the latest version of the Charity Cornmission's publi¢ benefit guidance. The Institute endeavours lo advance education and knowledge ol Muslim Societies and civilisalions through leaming, leaching and research lor the benefrt of individuals and society.11 conlribules lo the development of professionals and scholars who have a broader, deeper and critical understanding of Islam and ils diverse 8xpfessiDns in the modern contemporary conlexl. As a resull. scholars are better equipped lo promote understanding and social cohesion amongst diverse communities in society and to analyse theological, social, economic and educational problems faced by contemporary soeielies, offering creative solutions lo address them. Location The Institute is located in a purpose-designed home al the Aga Khan Centre in London's King's Cross. where il 15 co-located with The Aga Khan University Ilnlernalionall in the United Kingdom and the Aga Khan Foundation Iuniled Kingdornl. The Aga Khan Centre is a place for education. knowledge, cultural exchange, and insight into Muslim civilisations. The organisations that are located there work together to bridge the gap in understanding about MLJslim Cultures and their diversity, as well as lo connect the public to global development issues. The three institutions host a variety of event5, exhibitions, tours, and talks that are open lo the public. TRUSTEES. RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS The law applicable to charitable companies in England and Wales requires the Trustees lo prepare financial slalemenls for each financial year, which give a true and fair view ol the state of affairs of the charity and of the incoming resour¢es and application of reSoUr￿S of the charity for that period. In preparing these financial slatemenls, the Trustees are required lo.. ENV218264044807-DABE-0529-ECAA 2910512025 13.03 PM UTC select suitable accountin9 policies and then apply them Consistent￿., observe Ihe methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., stale whelhei applicable accounting standards and slalemenls of recofflmended practice have been followed, subject lo any material departures disclosed and explained in the financial slalemenls., and prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the chaiily will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the charity and enable Ihern lo ensuie thal the financial slalements comply with the Charities Act 2011, the Charity (Accoun15 and Reports) Regulations 2008 and the provisions ol the charity's governing documents. They are also responsible for safeguarding the assets of the charity and hence foi taking reasonable steps for the prevention and detection of fraud and breaehes of18w and regulations. The Trustees are responsible for the maintenance and integrity of the charity as well as the financial infoimalion included on the charity's website. Legisl81ion in the United Kingdom governing the preparation and dissemination of financial statements may drffer from legislation in olherjurisdiclions. STRATEGIC REPORT 2024 was a year tsf solid programmatic progress and also saw the completion of a new medium-lerm strategic plan. The latter has now been formally approved by the Board of Governors and Trustee5 and reaffirms The Inslilule'5 commitments lo high-qualily research, publications, and educational programmes, particularly in Ismaili and broader Islamic studies. Key 51ralegic priorities in¢lude expanding ils research agenda, enhancing knowledge dissemination for the Ismaili community, expk)ring degree awarding status, preseNing Ismaili h&ritage. integrating digita5 learning, and slrenglhening 115 inslilutional capacity. While maintaining fiscal prudence and opliTnising resources. Ils aims to reinforce ils role as a centre of eX￿llence. serving both academic and 9lobal Isrnaili communities. Achievements of the Chari The Institute evalLJales ils qLJalilalive perfomiance by assessing the delivery of various prograrnmatic activities outlined in Ils objectives and strategy document. This is achieved through its academic. research, teaching, and learning departments, all of which adhere to quality assurance guidelines. The Inslilule is committed lo student success, ensuring high course completion and graduation rates while fostering a ¢uttLJre of research excellence through peer-rev1ew￿4 publications of academic and curriculum materials. R¥sear¢h and Academic Publications In 2024, The Institute published four academic book5 and one non-specialist book in English.. il The Early Nizari Ismailis.. ill The Banquet of the Brethren," iiil The Book of Unveiling.. iv) On Ethics and Character Trails., and vl Ismailis in Iran. The Institute also PLJblished three academic book5 in Persian. Additionally, it published translations of non-specialisl books in Gujarali {11, Persian11}, and Urdu111, and of academic books in Persian {21. The Inslilule continued various research projects and documented sites of histori¢ significance across 15 countries, bringing the lolal lo 1665 sites across 89 countries. The Institute continued rts development and production of curriculum materials for chiklren, available in 10 languages, and some of these educational materials are now available on The Inslilule's e-book platform. In 2024, three conferences were organised by The Inslitule, and il also hosted the prestigious International Qurfanic Studi8s Association IIQSAI. All these conferences attraded a pool of international academics. Graduate Programmes The Inslilule provides two graduate programmes.. the Graduate Programme in Islamic Studies and Humanities IGPISHI and the Secondary Tgacher Education Programme ISTEPI, both of which result in the award of an MA validated by SOAS University of London. For STEP, su¢¢essful graduates are ENV218264044607-DABE-0529ECAA 2910512025 13.'03 PM UTC awarded a PGDip by University College London IUCLI, in addition lo the MA. During 2024. The Inslilule completed ils review of the STEP programme, the results of which will be implemented during the course of the strategic plan period. The Inslilule continued lo attract candidates from a diverse background for these two programmes, recruiting the desired number of students. based on ils sel cri16ria, from six Countries. Further, two new d￿toral scholarships were also awarded. The Institute has been registered with the Office for Students since 2019 and has a Quality Assurance function which works wrth the Board of Governors and Senior Management lo ensure that The Inslilule is cognisanl of ils compliance respon5ibililies and informed of evolving trends in higher education. Aga Khan Library The Aga Khan Library I the Library" or 'AKL"l is jointly operated by The Inslrtule and Aga Khan University Ilnlernationall in the United Kingdom. In 2024, the Library continued lo grow its colle¢lion with more than 800 new print lilles. This included 380 books donated, mainly. by members of the Ismaili community. The Library completed ils transilion to a new digitsl collection platfomi which will help in the redLJCtion of maintenance costs. The Library hosted tho 45th MELCOM Inlemational conference which allracled 110 allendees. and ils outreach efforts included hosting more than 190 external researchers and organising bibliographical exhibitions on Hajj, and the partition of India and for Black History Month. The Head ofAKL was nominated lo the MELCOM coordination eommillee, which reflects the leadership of the Library in regional and global networks. The Library has continued lo expand rts impact, offering invaluable resources. fostering cultural dialogue, and establishing Itse￿ as a worfd-class institution for research and community engagemènt. Financial Review The financial position of The Instrtute is sel out on pages 12 10 25. In summary, The Inslitule's total income in 2024 amounted to £19.7m12023". £18.5ml with expenditure of £20.4m12023.. £19.5ml. The increase in income of £1.2m17°1 I was roughly Consistent with the increased expenditure of £1.Om150/0 increase) driven by the increase in staff cost due lo hiring and inflation impact on both salaries and operational costs. In 2024, the nel eXpend￿ure was £0.7m 12023.. £1.Oml. The resources expended were aligned with the charitable objectives of The Inslitule. Reserves Policy The Inslilule does not consider il necessary lo hold significant levels of reserves as funds can be drawn down from ils regular sources each monlh lo invest in the ongoing charitable objectives of The Inslilule. The Trustees consider that the current level of reserves as referred lo below, together with continued access lo grant funding. are sufficient to rnainlain the short, medium, and long-lerm suslainabilty of The Inslitule. The resulting cumulative unreslricled funds balance carried forward was £1.Om12023.. £1.7m) which is in line with The Inslitule's reserves policy, and there were no reslricled reserves at the year end. The Trustees consider that the lev&1 of reserves is sat15faclory, and that sufficient progress has been and continues to be made lo achieve the charity's objectives. Fundraising and Funding Sources The Institute is not involved in fundraising activities directly from the genèral public. From lime lo lime. il organises events for ils past donors, who are all from the Ismaili community, and al such events, some indicate a wish lo make an unsolicited donation. The Inslilule's principal sources of funding are the Aga Khan University Foundation, Aga Khan Foundation Iunrted Kingdom), and His Highness the Aga Khan. ENV218264044607-DABE-0529-ECAA 2910512025 13.03 PM UTC Investment Pollcy The Inslilule, having regard lo ils liquidity iequirements, has operated a policy of keeping available funds in an interesl-bearing account until su¢h lime funds are needed. The account provides a standard rale of interest while providing immediate access lo the funds. Plans for Future Period The Institute will continue to develop and support ils research, teaching, and community educational programmes and other initiatives as the Board of Trustees sees fil in pursuance of ils objectives. The first year of implementation ol The Inslilule's new strategic plan and ils priorities, including the implernenlation of Ihe organisalion restrLJ¢lure sel out therein, will be 2025. The Institute has a stable financial base and il expects to continue to benefit from ongoing and consislenl funding SUPPDrt in 2025 and beyond. The Trustees, Report, including the Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by Ihe Directors on 28 May 2025 in their capacity as Trustees of the charity. The Trustees, Report is signed as aulhorised on their bghalf by. N Kheraj Director and Trustee 28 May 2025 ENV218264044607-DABE-0529-ECAA 2910512025 13.'03 PM UTC UHY iIHY Ha¢k*rY•uttg LLP Quadiant Hotsse 4Thom35 Mor& S4uar4 London EIWIYW INDEPEI NDENT AUDITOR'S REPORTTO THE MEMBERS of4 THE INSTITUTE OF ISLVIAILI STUDIES Opinion We have audited the financi21 statements of The Institute of Ismaili Sttidies {"the chil ritable company") foi. tli¢ year ended 31 Decen)ber 2024 which conipri5¢ the Stat¢m¢nt of Financial Activiti¢s, including Income and Expenditure Accouiit. the Balance Sheel, the ca.sh Flow Statement and Ihe related iiotes, inclLidiiig sigiiificant accounting policies. The financial i'eporting franiewoi"k that has been appli¢d in tlieir prepiiration is applicable law and United Kingdoni Accounting SLindards, including Financial Reportin¥ Staiidard 102 T17¢, Fina17cicII Rcpoi'liv.¥ Siund£ir(l éipplic'cible ihc UK lind Rcpiiblic of lielovd (United Kingdom Generally Accepted A¢¢ounting Practice). In our opinion, the fii)aDcial statements.. give a true and fair view of the stale of the Charitable cotnpally's affairs as at 31 December 2024 and of its incoming re￿OUrc¢S and application of Tesources for the yeai. then ended. have been properly prcpared in accordaiice with United Kingdom Generally Accepted Accounting Practice., aiid have be¢n prepared in accordance with the reqU1￿MentS of the Companies A¢t 2006. Ba515 for opinion We conducted our aiidil in ac¢ordan¢t with Inlemational Standards on Aiiditing {UK) (ISAS (UK)) and applscable Iclw. Oui responsibilities under thtsse staiidards arc furtlier dcscrib¢d in the Aiidii(Jr's re.rpon.Yibiliiigsfor ihe audii ofihgfinanciL71 sirtlemenl.¥ seetson of our ieport. We are independent of the charitable company in accordance with tlie ethical requirenients that are relevant to our audit of tlie rinancial statemellts in thc UK. incliiding the FRC'q Ethical Stand41rd, and we h1£ I'e fulfilled oui other ethical rcspon5ibilit1¢5 in accordance wsth thcsc rcquirements. We believe that the audit evidence we havc obtained is suffi¢ient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statcm¢nt5, wc hav¢ concludcd that the trustee5 use of the going concern basis of a¢¢ounting in the preparntion of the financial qtaiem¢nts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may Last signifiLant doubt on the entity's ability to continiie as a going concern for a period of at least twelve months from when the financial statements are authoriscd f(>r issue. Our responqibilities and the responsibilities of the trustees with r¢spc¢t to going concem are described in the relevant sections of this report. Other inf(>rmation The other inforniation comprises the infonnation included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the financial statenients. Our opinion on the financial statements does not cov¢r the other inforniation 3nd, cxc¢pt to the extcnt othei'wise cxplicitly stated iii our report. we do not express any form ot assurance conclusion thereon. ENV218264044607-DA8E41529-ECAA 2910512025 13."03 PM UTC UHY UHY Ha¢kerYoung LLP Quadrant House 4ThomJs More Square London EIWIYW In col￿eCli0n with our biidit of tlie financi lo Aga Khan University Foundation in relation ID procettds of Talim materials. 12. Share Capilal: Authorised, Issued and Fully Paid 2024 2023 100 ordina shares of £1 each 100 100 According lo the Articles of Assccialion the liability of the members is limited by guarantee. In addition, the charf(able company is precluded from making any distributions to members either by way of dividend or on a winding up. 13. (1> Unrestricted Funds 2024 2023 1 January Nel movement in funds 1,714,080 692 798 2,719,138 1005,058 31 Decgmber 1.021,282 1,714,080 13. (li) Reconciliation of Movements in Funds 2024 2023 Nel movement in funds Funds brought forward Funds c8rrled fotward 1692.7981 11,005,058) 1,714,180 2,719,238 1,021,382 1,714,180 Represgnted by: 2024 2023 Tangible and intangible fixed assets Current assets Current liabilities 395,019 305.422 2,134,528 3,070,937 {1,508,1651 11,662,179) 1,021,382 1,714.180 Balan¢e at 31 Decamber 23 ENV218264044607-OABE-0529-ECAA 2910512025 13.03 PM UTC 14. Total Funds The accumijlated surplus shown in the balance sheet includes specific grants received lo dale which have been applied by the Board of Trustees in the purchase ol fixed assets for the use of The Institute and in the publication and distribution of religious and cullural education books and for other accumulated expenditure. Any unutilised grant re¢8iv&d will b& used during the following year for that year's expenditure and to cover expenditure in future years. The Board of Trustees, therefore, and in accordance with The Inslilule's Articles of Association, regard the accumulated surplus as being unrestricted funds for use in furtherance of the charity's objectives. 15. Taxation The Inslilule of Ismaili Studies became a charity on 10 July 2018. Prior to this date, il was liable to Corporation tax. From 10 July 2018 onwards, the charity is no longer liable for Corporation lax on income derived from ils activities, as these fall within the various eXempl￿n8 available lo charf(ies. 16. Pension The Institute of Ismaili Studies operates a pension scheme. The pension cost charge for the peri¢xl represents contributions payable by The Inslilule of Ismaili Studies to the scheme and amounted lo £661,605.12023. £630,1701 17. Reconciliation of (deficit)Isurplus to Net Cash from Operating Activities 2024 2023 Net expenditure Depreciation on tangible fixod assets Amortisalion ol intangible assets IDecreasellincrease in creditors Decrease in debtors {692.7981 80,343 26.764 1154,0141 687,909 {51,7961 11,005,058) 78,369 805,079 482,756 381,146 Net cash loutflowl l inflow from operatlng actlvltlès 18. Cash and Cash Equivalents 2024 2023 Changes in the year Al 1 January Nel Ide¢reasel l increase in cash Al 31 D8¢ember 1,634,996 1248,5001 1,386,496 1,369.229 265,767 1,634,996 24 ENV218264044807-DABE-052WECAA 2910512025 13 03 PM UTC 19. Capital Expenditure 2024 2023 Purchase of tangible and intangible assets Disposal of tangible assets Net cash outflow for Capital èxpènditure 199,082 12,378} 196,704 95,379 95,379 20. Related Party Transaction Income includes £10,150,000 12023.. £8,713,000) of grants received from Aga Khan Univetsity Foundation IAKUFI, £115,00012023.. £3,000,0001 of grants received from His late Highness the Aga Khan IV, Trustee and a shareholder of the charity and £2,300.000 12023.. £93,4681 from Aga Khan Foundation Iuniled Kingdom). Included within expenditure is £311,00712023'. £180.839} relating lo the purchase of publications from Islamic Publications Limited IIPLI, a company that has a number of common Direclorsttruslees with The Inslilule of Ismaili Studies. The Inslilule has a payable of £48.74212023.' debtor balance £534,213) lo IPL and £161.54312023.. £471,0801 to AKUF for Talim materials, details of which are set out in note 10 and 11 to these accounts. The Gifts in Kind amount of £6,950,632 consists of the market rental value and OCCLJpancy costs of the premises and sludenl ac¢ommodalion12023.. £6,423,889), which are owned by Aga Khan Foundation (United Kingdom). An equivalent amount is included in expenditure. 21. Ultimate Holding Company and Controlling Parties Aga Khan Foundation, a foundation registered in Switzerland, has a 980A Inte￿$1 Irepresenling 98 sharesl in the equity capital of The Inslilule of Ismaili Studies. 11 is the immediate, ultimate, and controlling parent enlily. 25 ENV218264044607-DABE-0529-ECAA 2910512025 13.03 PM UTC