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2025-03-31-accounts

IAISH FOUNDATION MARCH 2025 ANNUAL REPORT Financial Statements For the Year Ended 31 March 2025 203 4323 786 info@arshfoundation.org arshfoundation.org

Contents

03 Message from CEO

Trustees’ Report

Financial Statements 2024-2025

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Message from CEO

This year has been one of steady growth, strengthened delivery, and meaningful impact for Arsh Foundation. As Trustees and management reflect on the period, we do so with gratitude for the continued trust of our donors and supporters, and with confidence in the direction of our work.

Throughout the year, the Foundation remained focused on delivering clear public benefit by supporting individuals and families facing poverty, food insecurity, and limited access to healthcare. A key milestone was the opening of Arsh Foundation’s first medical clinic in Karachi, enabling us to provide essential healthcare services to men, women, and children within underserved communities. This development represents a significant step forward in our commitment to practical, sustainable interventions that address urgent needs at community level.

In response to rising living costs and increased hardship, we also expanded our food support programmes, reaching a greater number of families through regular food pack distributions. These programmes continue to provide reliable assistance to households most at risk, reinforcing our core objective of protecting dignity and wellbeing.

Alongside these achievements, Arsh Foundation continued to deliver support across education, medical aid, welfare assistance, religious and community projects. Our activities were funded primarily through voluntary donations, and the Trustees are pleased that the majority of income raised during the year was applied directly to charitable programmes, as detailed in the financial statements. The charity closed the year with a stable reserves position, enabling continuity of services while maintaining prudent financial oversight.

Our work is underpinned by strong governance and the values of accountability, transparency, and responsible stewardship of funds. The Trustees remain committed to ensuring that resources are used efficiently and in accordance with donor intent and charitable objectives.

I would like to thank our donors, volunteers, and partners across the UK for their continued support. Your generosity enables us to respond to immediate needs while also building long-term capacity within the communities we serve. I also wish to acknowledge the dedication of our staff and volunteers, whose commitment ensures our programmes are delivered with care and integrity.

As we look ahead, Arsh Foundation remains focused on strengthening existing services, expanding access to healthcare and food security, and ensuring that our work continues to deliver measurable impact for those most in need.

Arsalan Shakeel CEO, Arsh Foundation

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Our Projects

1. Water Project

Access to clean and safe drinking water remains a critical challenge for many rural communities in Pakistan. Arsh Foundation continues to prioritise water security as a core area of intervention, recognising its direct impact on public health, sanitation, and overall quality of life.

During the year ended 31 March 2025 , our water projects focused on District Thatta , one of the most underserved regions in Sindh. Communities in Goth Gulmanda and Makli were identified following local assessments that highlighted severe water shortages, long travel distances to water sources, and the associated health risks faced by residents living in scattered mud-house settlements.

In response to these needs, Arsh Foundation installed 14 new handpumps during the reporting year. Each handpump now provides reliable access to clean drinking water for approximately 80 to 100 individuals, significantly reducing the time and physical burden associated with water collection while improving hygiene and sanitation conditions.

These installations brought the total number of handpumps and water wells established by the Foundation in District Thatta to 89, representing a sustained and targeted investment in long-term community infrastructure.

By improving access to safe water at source, the project continues to contribute to reduced waterborne illnesses and improved daily living conditions for vulnerable households.

The Trustees remain satisfied that this project delivers clear public benefit and aligns closely with the Foundation’s charitable objectives. We are grateful to our donors and supporters whose continued generosity enables us to deliver practical, life-changing interventions and create lasting impact at community level.

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2. Feed the Family

The Feed the Family programme remains one of Arsh Foundation’s longest-running and most impactful initiatives, providing regular food assistance to vulnerable households facing ongoing economic hardship. Since its launch in April 2017, the project has continued to deliver essential support to families who rely on this assistance for their basic nutritional needs.

During the year ended 31 March 2025, the programme continued to support an average of 18 to 21 families each month across selected areas of Karachi. Each household comprises approximately 5 to 6 family members, meaning that between 1,296 and 1,512 individuals benefited from this programme over the course of the year. The Trustees are satisfied that the programme continues to deliver clear and measurable public benefit.

Beneficiaries are identified through a structured assessment process, with priority given to widows, low-income households, and families with limited earning capacity. This approach ensures that assistance is targeted effectively and reaches those most in need.

The Trustees recognise the continued importance of this programme and remain committed to its sustainability. We are deeply grateful to our donors and supporters in the UK whose generosity enables us to respond to economic challenges while continuing to protect food security and dignity for vulnerable families.

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3. Ramadan Project

The Ramadan Project remains a key element of Arsh Foundation’s humanitarian work, providing targeted support to vulnerable families during the holy month of Ramadan. The programme is designed to reduce food insecurity and financial pressure, enabling beneficiaries to observe their religious obligations with dignity.

During the year ended 31 March 2025 , the Ramadan Project was delivered exclusively in Karachi and its surrounding areas , focusing on households living below the poverty line. Many of these families face increased hardship during Ramadan due to rising food costs and limited income.

As part of the programme, Arsh Foundation distributed Ramadan food packs containing essential staple items to support families throughout the fasting period. In addition, Iftar packs were provided to assist individuals and families with daily meal requirements during Ramadan. To mark the end of the holy month, Eid sweet packs were distributed, helping families celebrate Eid-ul-Fitr with dignity and inclusion. Through these combined interventions, the project delivered both practical relief and emotional support, reinforcing community cohesion and wellbeing during a significant religious period. The Trustees are satisfied that the programme delivered clear public benefit and aligned with the Foundation’s charitable objectives.

We remain grateful to our donors and supporters whose generosity enables Arsh Foundation to deliver timely, culturally appropriate assistance to those most in need.

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4. Medical Projects

Arsh Foundation continues to prioritise access to healthcare as a critical area of public benefit, recognising that financial hardship often prevents vulnerable individuals from receiving timely and essential medical treatment. During the year ended 31 March 2025 , the Foundation strengthened its medical support through both direct medical assistance and the establishment of its first permanent healthcare facility, the Arsh Clinic, in Karachi .

Through the Medical Aid Programme, Arsh Foundation provided financial and practical support to a number of individuals facing serious health challenges. This included assistance for a polio-affected child, as well as ongoing medical support for Qari Hashim, a Foundation volunteer suffering from severe leg injuries and related medical conditions. Additional support was provided to other individuals requiring urgent medical care, helping to ease the financial burden associated with treatment, diagnostics, and medication.

A significant development during the year was the launch of the Arsh Clinic in Karachi, marking an important step towards delivering accessible, community-based healthcare. The clinic now provides outpatient services to men, women, and children, with a particular focus on primary care, maternal health, and child health.

The clinic operates with two qualified doctors and structured service hours:

On average, the clinic now supports over 250 patients each month, many of whom would otherwise struggle to access or afford basic medical care. In addition to consultations, the clinic provides basic medicines at no cost, ensuring continuity of treatment and improved health outcomes for low-income families.

The Trustees consider the Medical Projects and Arsh Clinic to be a significant advancement in the Foundation’s ability to deliver sustainable healthcare interventions. We remain deeply grateful to our donors and supporters whose generosity has enabled us to expand our medical services and bring care, relief, and dignity to those most in need.

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5. Masjid Project

Arsh Foundation continues to support the development and improvement of religious and community infrastructure, recognising the important role that mosques and madrassahs play in worship, education, and social cohesion, particularly in underserved areas.

During the year ended 31 March 2025 , the Foundation’s Masjid Project focused exclusively on initiatives in Pakistan . In Sindh , Arsh Foundation initiated the construction of a new mosque in a rural area , addressing the lack of accessible facilities for prayer, religious education, and community gatherings. At the end of the reporting period, the mosque remained under construction , with works scheduled to continue into the next financial year.

In addition to mosque construction, the Foundation responded to infrastructure challenges faced by a madrassah in Karachi by installing a solar power system . Persistent electricity shortages and load shedding had disrupted teaching and daily operations. The solar installation has significantly improved power reliability, enabling uninterrupted learning and improved use of the facility.

The Trustees are satisfied that these initiatives deliver clear public benefit by strengthening community infrastructure, supporting access to education, and improving spiritual and social wellbeing. We are grateful to our donors and supporters whose generosity enables Arsh Foundation to invest in sustainable, long-term community solutions.

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6.Qurbani Project

The Qurbani Project remains an important part of Arsh Foundation’s charitable work, supporting vulnerable individuals and families during the festival of Eid-ul-Adha. The project is designed to ensure that those facing poverty and food insecurity are able to share in the nutritional and communal benefits of this significant religious occasion.

During the year ended 31 March 2025, Arsh Foundation carried out the sacrifice of one cow in Karachi and one lamb in Khyber Pakhtunkhwa (KPK). The meat was distributed to disadvantaged families and individuals identified as being most in need, many of whom have limited access to protein-rich food throughout the year.

All aspects of the Qurbani process were managed in accordance with Islamic principles, with care taken to ensure the animals met the required standards and that the sacrifice and distribution were conducted respectfully and responsibly. Local assessments were used to identify priority areas, ensuring that the benefits of the project reached the most vulnerable households.

The Trustees are satisfied that the Qurbani Project continues to deliver clear public benefit by improving food access, promoting dignity, and fostering community solidarity during a key religious period. We remain grateful to our donors and supporters whose generosity enables this project to be delivered each year with care, transparency, and impact.

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7. Education

Arsh Foundation remains committed to supporting access to education as a key driver of long-term social and economic empowerment. The Foundation’s education initiatives focus on reducing financial barriers that prevent children and young adults from continuing their studies.

During the year ended 31 March 2025, the Education programme continued on the same scale as the previous year. Arsh Foundation provided educational support to three young women enrolled in university, covering semester or monthly tuition fees to enable them to continue their higher education. In addition, the Foundation supported the school education of between six and eight children by contributing towards monthly tuition fees and examination fees, along with other essential educational requirements.

These interventions were targeted at students from low-income households where financial constraints would otherwise restrict access to education or progression to the next academic stage. The Trustees are satisfied that the programme continues to deliver clear public benefit by supporting educational attainment, continuity, and long-term self-reliance.

Arsh Foundation continues to receive increasing requests for both primary and higher education support. While resources remain limited, the Trustees remain committed to sustaining and, where possible, expanding this programme through the continued generosity of donors and supporters, ensuring that financial hardship does not prevent students from pursuing their academic aspirations.

8. Overseas Office Expenses

Arsh Foundation maintains an overseas operational office to support the effective delivery, monitoring, and administration of its charitable activities. These costs are necessary to ensure that projects are implemented efficiently, transparently, and in accordance with the Foundation’s charitable objectives and donor intent.

During the year ended 31 March 2025, overseas office expenses included office rent and utilities, enabling a stable operational base for project coordination and administration. Costs also covered local travel expenses required for project delivery, monitoring, and beneficiary assessments, ensuring that funds were applied appropriately and projects were implemented as planned.

Additional expenses included office furniture and essential equipment required for day-to-day operations, as well as project documentation and video coverage, which support accountability, reporting, and donor communication. To maintain engagement with supporters and provide timely updates, resources were also allocated towards online communication and social media updates, allowing donors to receive feedback and visibility on the impact of their contributions.

The Trustees consider these overseas administrative costs to be necessary and proportionate, directly supporting the Foundation’s ability to deliver charitable programmes effectively. Expenditure is monitored closely to ensure value for money, and the charity remains committed to maximising the proportion of funds applied directly to charitable activities.

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9. Marriage support project

The Marriage Support Project aims to reduce financial hardship for low-income families at the time of marriage, helping couples begin their married life with dignity and stability. The project is funded through Sadaqah, Zakat, and general donations, in line with donor intent and the Foundation’s charitable objectives.

During the year ended 31 March 2025, Arsh Foundation provided marriage-related support to 11 families. Assistance was directed towards essential wedding expenses, including contributions towards basic furniture and wedding meals. Each support package, costing up to £350, helped ease the financial pressure typically borne by the bride’s family.

By addressing these immediate financial challenges, the project supports not only the wedding itself but also the longer-term wellbeing of newly married couples. The Trustees are satisfied that the project delivers clear public benefit by promoting social stability and reducing economic strain on families at a significant life stage.

Arsh Foundation remains committed to continuing this programme in response to ongoing need. We extend our sincere thanks to our donors and supporters whose generosity enables the Foundation to support families during this important milestone and contribute to positive, lasting outcomes within the communities we serve.

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10. Economic Empowerment / Rozgar Project

The Economic Empowerment (Rozgar) Project focuses on supporting individuals and families to achieve sustainable livelihoods through income-generating opportunities. The project is designed to reduce long-term dependency on aid by enabling beneficiaries to earn a halal and dignified income , while discouraging reliance on begging or irregular support.

During the year ended 31 March 2025 , Arsh Foundation supported a number of small-scale livelihood initiatives aimed at individuals with limited earning opportunities. The Foundation provided four food carts to four individuals, enabling them to establish small businesses selling items such as french fries, samosas, and confectionery . These carts now provide a regular source of income for the beneficiaries and their families.

In addition, Arsh Foundation supported a barber in Sindh Province by assisting with the setup of a small barber shop, enabling the individual to continue his trade and generate stable earnings. The Foundation also provided a sewing machine to a woman , allowing her to undertake tailoring work from home and contribute to household income.

These interventions were selected based on individual skills, local demand, and feasibility, ensuring that support provided had a realistic prospect of long-term sustainability. The Trustees are satisfied that the Rozgar Project delivers clear public benefit by promoting self-reliance, economic stability, and social dignity.

Looking ahead, Arsh Foundation plans to expand the Economic Empowerment Project in the coming year by providing additional food carts and exploring further livelihood options. The aim is to support more individuals in securing sustainable, lawful income and to continue discouraging begging through practical, income-based solutions.

We are grateful to our donors and supporters whose generosity enables the Foundation to invest in longterm empowerment and positive change.

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Corporate Directory

Registered Company number

10693201 (England and Wales)

A Company Limited by Guarantee

Registered Charity number

1193627 (England and Wales)

Registered office

2 Kentford Way, Northolt, UB5 5NG

Board of Trustees

The trustees who served the charity during the period were as follows:

Company Secretary

Banker

Barclays Bank UK PLC Business Direct Leicester LE87 2BB

Independent Examiner

Silver Arc Limited 1 Quality Court Chancery Lane London WC2A 1HR

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FINANCIAL STATEMENTS 31 MARCH 2025

Structure, Governance and Management

Arsh Foundation has its operational base in London, UK. While the fundraising activities are carried out in the UK, the foundation works through implementing partner, Health and Education Welfare Organization (HEWO), which has its operational base in Karachi. With a local team working on the implementation of the projects, there is an assurance that the sensitivities of the local population and the cultural norms and values would be taken care of by the foundation.

Board of Trustees

The Board of Trustees directs and oversees the organisation. Focusing on strategic planning and governance, the Board sets out priorities and objectives. It evaluates our performance and the progress of our work to alleviate poverty and suffering and approves relevant new policies and procedures. The Board appraises the Management Team and can make appointments and dismissals from these positions. The Board of Trustees works with key stakeholders and ensures that we satisfy the regulatory requirements we are bound by as a charity.

Recruiting and appointing trustees

Each member of our Board of Trustees is a volunteer, chosen because they have the range of skills, knowledge and experience that we need to respond to critical challenges. Partners and stakeholders may nominate trustees, and sometimes we approach potential candidates personally.

Key personnel

The CEO is accountable to the Board of Trustees and, along with other senior staff, is responsible for our day-to-day management. The CEO chairs the Management Team, which comprises other directors. They make sure that the policies and strategies agreed upon by the Board of Trustees are implemented and support the work of other staff and volunteers. A complete list of trustees is provided in the corporate directory on page 13.

Governing document

Arsh Foundation refers to the charity incorporated as a company limited by guarantee in England and Wales. Arsh Foundation’s governing document, known as Memorandum and Articles, was initially dated 3rd February 2017 and was later revised on 23rd February 2021.

Risk of Governance

Arsh Foundation needs to ensure that proper governance structures and practices are adopted to reduce the risk of failure and support the organisation's survival and success. The board will regularly review the policies and procedures to ensure they are up-to-date and meet the governance and operating standards.

Statement of Trustees’ Responsibilities

The trustees – also directors of Arsh Foundation – are responsible for preparing the Annual Report. The annual report includes trustees' reports & financial statements, preparing the following applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires our trustees to prepare financial statements for each financial year. They must not approve the financial statements unless they are satisfied that they give a true and fair view of the charitable company's state of affairs and the incoming resources and application of resources – including income and expenditure – of the charitable company for that period.

The trustees are responsible for keeping proper accounting records which reasonably accurately disclose the financial position of the charity at any time and ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the charity's assets and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

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Volunteers

Our volunteers provide crucial support for our work, and we continue to be assisted by a committed and passionate network of volunteers whom we actively manage. During 2025, our network of dedicated volunteers contributed significant hours supporting our administration, fundraising and campaigning activities.

Fundraising structure

Arsh Foundation raises funds through various channels, including social marketing and word of mouth, which help us establish and grow and strengthen links with new donors around the UK. Management monitors the fundraising teams regularly, and reports are issued to the Board periodically.

Fundraising

Our fundraising utilises a number of different approaches, which include the following:

In 2024-2025, all activities were carried out by our own staff and we did not use professional fundraising agencies or other third parties.

Funding Continuation

Arsh Foundation does not have a fixed amount of income. In the continuation of work, it will be considerably dependent on the donations made by the public or other charity organisations. Projects are only initiated when the complete funds are available to cover all costs, but as an exceptional case, Arsh Foundation has also set aside a portion of reserves to reduce any disruption due to a temporary fall in donations.

Vision & Mission

Vision:

To facilitate underprivileged people by providing them with the necessities of life and, through education, skills, and financial support, enable them to build up their resources and become productive citizens.

Mission:

Principal Risks and Uncertainties

Arsh Foundation operates in environments where social, economic, and operational challenges present inherent risks and uncertainties. The Trustees recognise their responsibility to identify, assess, and manage these risks in order to safeguard the charity’s assets, beneficiaries, and reputation, and to ensure the effective delivery of its charitable objectives. The Trustees regularly review the charity’s risk register and have established appropriate controls and mitigation measures. The principal risks identified during the year, together with the actions taken to manage them, are outlined below.

Safeguarding

Arsh Foundation works with vulnerable individuals, including children, women, and those facing poverty or ill health. Safeguarding is therefore a key risk area. The charity has adopted safeguarding policies and procedures designed to prevent abuse, misconduct, or misuse of power by anyone acting on behalf of the Foundation. Oversight responsibility rests with the Trustees, with operational safeguarding measures implemented through trained staff and volunteers. The Trustees continue to review and strengthen safeguarding arrangements to ensure ongoing compliance and best practice.

Financial Sustainability

The charity’s activities are largely funded through voluntary donations, and income levels may fluctuate due to economic conditions or donor trends. This presents a risk to the continuity of programmes. The Trustees manage this risk by maintaining prudent reserves, monitoring cash flow, and ensuring that projects are only initiated when sufficient funds are available. Efforts continue to diversify income sources and strengthen donor engagement.

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Overseas Operations and Delivery Risk

A significant proportion of Arsh Foundation’s activities are delivered overseas, which exposes the charity to risks associated with local economic instability, logistical challenges, regulatory changes, and operational disruption. These risks are mitigated through the use of local knowledge, regular project monitoring, clear reporting lines, and ongoing oversight by the Trustees.

Governance and Compliance

Failure to comply with regulatory, legal, or governance requirements could adversely affect the charity’s reputation and operations. The Trustees address this risk by maintaining appropriate governance structures, reviewing policies regularly, and ensuring compliance with the Charity Commission, Companies Act, and applicable accounting standards.

Fraud and Misuse of Funds

There is a risk of fraud or misapplication of funds, particularly in overseas operations. To mitigate this risk, the charity operates financial controls including segregation of duties, expenditure authorisation processes, record-keeping requirements, and independent examination of accounts. The Trustees review financial information regularly and investigate any concerns promptly.

Data Protection and Cyber Risk

The charity processes personal data relating to donors, beneficiaries, and volunteers, creating a risk of data breaches or cyber incidents. The Trustees have implemented data protection measures aligned with UK GDPR requirements and continue to assess data storage, access controls, and system security.

The Trustees believe that, while risks and uncertainties remain, appropriate systems, controls, and governance arrangements are in place to manage these risks effectively. The risk management framework is kept under regular review and updated as the charity’s activities and operating environment evolve.

Achievement and Performance

Review of financial performance

The Trustees’ objectives in relation to fundraising are to maximise voluntary income while ensuring that funds are raised and applied in a cost-effective and responsible manner. During the year ended 31 March 2025 , Arsh Foundation achieved total income of £40,980 , derived primarily from voluntary donations and charitable contributions.

Direct charitable expenditure for the year amounted to £31,680 , reflecting the Trustees’ continued commitment to ensuring that the majority of funds raised are applied directly to charitable activities. Expenditure supported a broad range of projects, including food assistance, healthcare, education, economic empowerment, religious and community infrastructure, and welfare support.

The charity reported a net income for the year , strengthening its reserves position and supporting the sustainability of ongoing and future programmes. Full details of income, expenditure, and fund balances are set out in the financial statements accompanying this report.

The Trustees are satisfied that the charity has maintained appropriate financial controls and delivered its activities in line with donor intent and charitable objectives.

Review of development activities

In its seventh year of operation , the Trustees are satisfied with the continued progress and development of Arsh Foundation. Since its establishment in March 2017 , the charity has remained focused on alleviating poverty and hardship, and the Trustees confirm that the activities undertaken during the year were consistent with this purpose.

During the reporting period, the Foundation strengthened its operational capacity, most notably through the establishment of the Arsh Clinic in Karachi and the expansion of livelihood and welfare initiatives. Looking ahead, the Trustees intend to focus on further organisational development, with the aim of increasing sustainable income streams and strengthening long-term development projects, particularly in underserved and remote areas of Pakistan. The Foundation also seeks to enhance its ability to respond effectively to emergencies and humanitarian crises as they arise.

Public Benefit

In planning and delivering its activities, Arsh Foundation seeks to ensure that all work provides clear and identifiable public benefit . The Trustees and management confirm that they have had due regard to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims, objectives, and activities.

The projects delivered during the year were designed to relieve poverty, advance education, promote health, and support community wellbeing. The Trustees are satisfied that the charity’s activities during the reporting period benefited the public in a manner consistent with its charitable purposes.

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Financial Review

Thanks to the continued generosity of our donors and supporters, Arsh Foundation maintained a stable financial position during the year ended 31 March 2025 , enabling the charity to deliver its core activities and respond to ongoing need. This performance was achieved against a backdrop of economic uncertainty in the UK and continued global financial and geopolitical pressures.

During the year, the charity generated total income of £40,980 , which was applied primarily towards direct charitable activities. Charitable expenditure amounted to £31,680 , supporting a wide range of projects including food assistance, healthcare and the establishment of the Arsh Clinic, education support, economic empowerment initiatives, religious and community infrastructure, and welfare services. The Trustees are satisfied that funds were applied in accordance with donor intent and the charity’s objectives.

The charity closed the year with a net surplus , strengthening reserves and supporting the sustainability of ongoing and planned programmes. The Trustees consider the reserves position to be appropriate given the charity’s reliance on voluntary income and its commitment to ensuring continuity of services in the event of fluctuations in donations.

Arsh Foundation continues to focus on the effective stewardship of funds, ensuring that expenditure is carefully managed and that a high proportion of income is directed towards charitable delivery. Looking ahead, the Trustees aim to build on this financial stability by strengthening fundraising capacity, supporting long-term development projects in underserved areas, and maintaining the charity’s ability to respond to emergencies and urgent humanitarian needs.

Income From Charitable Activities 2024-2025

----- Start of picture text -----
General Donations,
Economic 78
empowerment, 3,692
Feeding, 4,567
Water, 1,575
Medical Projects, 8,265
Ramadan, 3,910
Relief &
Welfare, 1,090
Qurbani, 700
Masjid, 2,671
Marriage support,
3,595
Education, 11,730
----- End of picture text -----

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Expenditure from Charitable activities 2023-2024

----- Start of picture text -----
Overseas office
expenses, 2,745 General, 77
Sadaqah, 629 Feeding, 5,658
Economic
empowerment, 1799
Water, 1,534
Ramadan, 4,005
Medical Projects, 8,730
Relief &
Welfare, 1,303
Qurbani
£552
Marriage support, 2,553
Masjid, 2,233
Education, 8,818
----- End of picture text -----

Details of all charitable income and expenditure are mentioned in accounts. The difference in amount received and not spent is carried forward to the next period and any deficiency in funds for specific projects were taken out from General Donations fund.

Reserves policy

Arsh Foundation works with vulnerable communities from diverse backgrounds who share a common challenge of poverty and limited access to essential resources. Many beneficiaries rely on the charity’s support on a regular basis, and any disruption to services could have a significant impact on their wellbeing.

The Trustees therefore recognise the importance of maintaining an appropriate level of reserves to ensure the continuity of charitable activities in the event of unforeseen circumstances, such as a temporary reduction in donations or unexpected increases in operating costs. This is particularly important given the charity’s reliance on voluntary income and its ongoing programme commitments.

In setting the reserves policy, the Trustees seek to balance the need for financial resilience with their commitment to delivering maximum value for money and directing the greatest possible proportion of funds towards charitable activities. Projects are generally only initiated when sufficient funding is available, and reserves are used prudently to avoid disruption to essential services.

The Trustees review the level of reserves annually as part of the budget and strategic planning process, taking into account forecast income, committed expenditure, operational risks, and future development plans. The aim is to maintain reserves at a level that is sufficient to support ongoing operations while ensuring that funds are not held unnecessarily and are applied effectively for public benefit.

This policy is reviewed at the Annual Trustees’ meeting and updated as required to reflect the charity’s financial position, risk profile, and strategic priorities.

IT & Data Storage

Arsh Foundation maintains digital systems for the recording and management of its financial and operational data. All financial records are maintained electronically to support accuracy, efficiency, and timely reporting.

To safeguard data integrity and security, the charity implements regular data backup procedures, with backups maintained at

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multiple secure locations. Access to systems and records is restricted to authorised personnel, reducing the risk of data loss, misuse, or unauthorised access.

The Trustees continue to review the charity’s information technology arrangements and are assessing the use of secure cloudbased storage solutions to further strengthen data protection, resilience, and business continuity. These measures support compliance with data protection requirements and contribute to effective governance and risk management.

Going concern

In view of the charity’s financial performance, income levels, and reserves position as at the balance sheet date, the Board of Trustees has a reasonable expectation that Arsh Foundation will continue in operational existence for the foreseeable future. The Trustees are not aware of any material uncertainties that would cast significant doubt on the charity’s ability to continue as a going concern.

Accordingly, the financial statements have been prepared on the basis that the charity is a going concern, in accordance with the requirements of the Companies Act 2006 and applicable accounting standards.

This Trustees’ Annual Report, prepared under the Companies Act 2006, was approved by the Board of Trustees on 16 December 2025, including approval of the Trustees’ Report and Directors’ Report contained therein, and is signed as authorised on its behalf by:

.............................................

Mr Arsalan Shakeel Company Secretary/ Trustee/ CEO 16[th] December 2025

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Independent Examiner's Report to the Trustees of Arsh Foundation

Independent examiner's report to the trustees of Arsh Foundation ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2025.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and 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 confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of 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

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Silver Arc Limited Association of Chartered Certified Accountants and Registered Auditors Silver Arc Limited

1 Quality Court Chancery Lane London WC2A 1HR

Date: 17[th] December 2025.

The notes form part of these financial statements

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Arsh Foundation Statement of Financial Activities For the Year Ended 31st March 2025

31/3/25 31/3/24
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 6,232 - 6,232 3,276
Charitable activities
General 78 - 78 93
Feeding - 4,567 4,567 7,145
Water - 1,575 1,575 1,700
Ramadan - 3,910 3,910 4,668
Relief & Welfare - 1,090 1,090 1,040
Qurbani - 700 700 572
Masjid - 2,671 2,671 6,808
Education - 11,730 11,730 3,780
Economic empowerment - 3,692 3,692 -
Marriage support - 3,595 3,595 3,173
Medical Projects - 8,265 8,265 2,040
Funeral support - - - 100
Sadaqah - 628 628 5,135
Zakat - - - 1,450
Total 6,310 42,423 48,733 40,980
EXPENDITURE ON
Charitable activities
General 77 - 77 -
Feeding - 5,658 5,658 4,848
Water - 1,534 1,534 697
Ramadan - 4,005 4,005 4,957
Relief & Welfare - 1,303 1,303 735
Qurbani - 924 924 1,057
Masjid - 2,233 2,233 5,072
Education - 8,818 8,818 4,400
Economic empowerment 202 1,597 1,799 -
Marriage support - 2,553 2,553 3,457
Medical Projects - 8,730 8,730 791
Funeral support - - - 82
Sadaqah - 629 629 4,565
Overseas office expenses 2,745 - 2,745 -
Other 544 - 544 1,019
Total 3,568 **37,984 ** **41,552 ** 31,680
NET INCOME 2,742 4,439 7,181 9,300
RECONCILIATION OF FUNDS
Total funds brought forward 12,597 14,190 26,787 17,487
TOTAL FUNDS CARRIED FORWARD 15,339 18,629 33,968 26,787

The notes form part of these financial statements

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Arsh Foundation Balance Sheet At 31st March 2025

Arsh Foundation
Balance Sheet
At 31st March 2025
31/3/25 31/3/24
Unrestricted Restricted Total Total
funds fund funds funds
Notes £ £ £ £
CURRENT ASSETS
Debtors 4 9,507 - 9,507 3,276
Cash at bank and in hand **5,832 ** 18,629 **24,461 ** 23,511
15,339 18,629 33,968 26,787
NET CURRENT ASSETS 15,339 18,629 33,968 26,787
TOTAL ASSETS LESS CURRENT
LIABILITIES 15,339 18,629 33,968 26,787
NET ASSETS 15,339 18,629 33,968 26,787
FUNDS 5
Unrestricted funds 15,339 12,597
Restricted funds 18,629 14,190
TOTAL FUNDS 33,968 26,787

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 16 December 2025 and were signed on its behalf by:

Mr Arsalan Shakeel - Trustee

Mr Muhammad Rehan - Trustee

The notes form part of these financial statements

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Arsh Foundation Notes to the Financial Statements For the Year Ended 31st March 2025

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

INCOME

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

EXPENDITURE

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

TAXATION

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

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

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Arsh Foundation Notes to the Financial Statements - continued For the Year Ended 31st March 2025

3.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
funds
fund
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3,276
-
Charitable activities
General Donations
93
-
Feeding
-
7,145
Water
-
1,700
Ramadan
-
4,668
Relief & Welfare
-
1,040
Qurbani
-
572
Masjid
-
6,808
Education
-
3,780
Marriage support
-
3,173
Medical Projects
-
2,040
Funeral support
-
100
Sadaqah
-
5,135
Zakat
-
1,450
Total
3,369
37,611
EXPENDITURE ON
Charitable activities
Feeding
-
4,848
Water
-
697
Ramadan
-
4,957
Relief & Welfare
-
735
Qurbani
-
1,057
Masjid
-
5,072
Education
-
4,400
Marriage support
-
3,457
Medical Projects
-
791
Funeral support
-
82
Sadaqah
-
4,565
Other
1,019
-
Total
1,019
30,661
NET INCOME
2,350
6,950
RECONCILIATION OF FUNDS
Total funds brought forward
10,247
7,240
TOTAL FUNDS CARRIED FORWARD
12,597
14,190		 Total
funds
£
3,276
93
7,145
1,700
4,668
1,040
572
6,808
3,780
3,173
2,040
100
5,135
1,450
40,980
4,848
697
4,957
735
1,057
5,072
4,400
3,457
791
82
4,565
1,019
31,680
9,300
17,487
26,787

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Arsh Foundation Notes to the Financial Statements - continued For the Year Ended 31st March 2025

4. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/3/25 31/3/24
£ £
Other debtors 9,507 3,276
5. MOVEMENT IN FUNDS
Net
movement At
At 1/4/24 in funds 31/3/25
£ £ £
Unrestricted funds
Unrestricted Funds 12,597 2,742 15,339
Restricted funds
Restricted Funds 14,190 4,439 18,629
TOTAL FUNDS 26,787 **7,181 ** 33,968
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
Unrestricted Funds 6,310 (3,568) 2,742
Restricted funds
Restricted Funds 42,423 (37,984) 4,439
TOTAL FUNDS 48,733 (41,552) **7,181 **
Comparatives for movement in funds
Net
movement At
At 1/4/23 in funds 31/3/24
£ £ £
Unrestricted funds
Unrestricted Funds 10,247 2,350 12,597
Restricted funds
Restricted Funds 7,240 6,950 14,190
TOTAL FUNDS 17,487 9,300 26,787

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Arsh Foundation Notes to the Financial Statements - continued For the Year Ended 31st March 2025

5. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
Unrestricted Funds 3,369 (1,019) 2,350
Restricted funds
Restricted Funds 37,611 (30,661) 6,950
TOTAL FUNDS 40,980 (31,680) 9,300

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1/4/23 in funds 31/3/25
£ £ £
Unrestricted funds
Unrestricted Funds 10,247 5,092 15,339
Restricted funds
Restricted Funds 7,240 11,389 18,629
TOTAL FUNDS 17,487 16,481 33,968

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
Unrestricted Funds 9,679 (4,587) 5,092
Restricted funds
Restricted Funds 80,034 (68,645) 11,389
TOTAL FUNDS 89,713 (73,232) 16,481

6. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2025.

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Arsh Foundation

Detailed Statement of Financial Activities For the Year Ended 31st March 2025

For the Year Ended 31st March 2025
31/3/25 31/3/24
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gift aid 6,232 3,276
Charitable activities
Donations **42,501 ** 37,704
Total incoming resources 48,733 40,980
EXPENDITURE
Charitable activities
Grants to institutions 40,690 30,050
Support costs
Management
Telephone 16 13
Postage and stationery - 388
Advertising **202 ** 399
218 800
Finance
Bank charges 116 233
Information technology
Subscription 35 35
Human resources
Software licences 493 562
Total resources expended **41,552 ** 31,680
Net income **7,181 ** 9,300

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