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2025-05-31-accounts

Charity registration number 1202766 (England and Wales)

SHARING AFFECTION LOVE AND MERCY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

SHARING AFFECTION LOVE AND MERCY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

E Kilic A A Abdulsamei K W Loka

Charity number (England and Wales)

1202766

Independent examiner

TC Primera First Floor Spitalfields House Stirling Way Borehamwood WD6 2FX

SHARING AFFECTION LOVE AND MERCY

CONTENTS

Page
Trustees report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Statement of cash flows 6
Notes to the financial statements 7 - 11

SHARING AFFECTION LOVE AND MERCY

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MAY 2025

The trustees present their annual report and financial statements for the year ended 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".

Objectives and activities

The charity's objects are

1) To advance the Islamic Religion for the benefit of the Public, in particular but not exclusively, by;- broadcasting messages of an evangelistic and teaching in nature in particular social media and through podcasts;

3) Producing and/ or distributing literature and research on Islam to enlighten others about the Islamic religion. There has been no change in these during the year.

The Charity aims to address its objectives through interventions that are substantially life changing by use of social media and other media resources to enlighten the general public about Islam as a religion

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

During the year, the charity was involved in various projects including raising donations through organising events such as dinners, fundraising events etc.

.

Achievements and performance

Significant activities and achievements against objectives

This reporting period saw a good deal of positive change throughout which the Sharing Affection Love and Mercy CIO continued to address the furtherance of Islamic religion through interventions that were substantially life changing in line with its objectives.

Financial review

During the year, the charity received £396,473 (2024:- £594,266) in donations and in turn expended £247,661 (2024:- £266,565 in charitable activities.

The charity derives the majority of its income from group of dental surgeries established in England. The charity also provides an online platform whereby members of the public can donate donate and learn more about the charity's objectives.

Reserves policy

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 month’s expenditure. 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 may be raised. This level of reserves has been maintained throughout the year.

Major risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

SHARING AFFECTION LOVE AND MERCY

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

Structure, governance and management

The charity was established by a governing constitution adopted on 19 April 2023.

The trustees who served during the year and up to the date of signature of the financial statements were: E Kilic

A A Abdul Samei

K W Loka

Recruitment and appointment of trustees

The trustees report was approved by the Board of Trustees.

E Kilic

31 March 2026

SHARING AFFECTION LOVE AND MERCY

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF SHARING AFFECTION LOVE AND MERCY

I report to the trustees on my examination of the financial statements of Harunani & Co Charitable Foundation (the charity) for the year ended 31 May 2025.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011.

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.

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 that in any material respect:

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.

Sadikali Gulamabbas Premji (FCCA)

First Floor Spitalfields House Stirling Way Borehamwood WD6 2FX

Dated: 31 March 2026

SHARING AFFECTION LOVE AND MERCY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2025

Unrestricted Unrestricted
funds funds
2025 2024
Notes £ £
Income from:
Donations and legacies 3 396,473 594,266
Total income 396,473 594,266
Expenditure on:
Charitable activities 4 247,661 266,565
Total expenditure 247,661 266,565
Net income/(expenditure) and movement in funds 148,812 327,701
Reconciliation of funds:
Fund balances at 1 June 2024 327,701 -
Fund balances at 31 May 2025 476,513 327,701

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

SHARING AFFECTION LOVE AND MERCY

BALANCE SHEET

AS AT 31 MAY 2025

Notes
Fixed Assets 13
Current assets
Debtors
Cash at bank and in hand

The funds of the charity
Unrestricted Funds
9		 2025
£
£
233,398
184,560
58,555
417,958
476,513
476,513		 2024
£
£
-
327,701
-
327,701
327,701
327,701		 £
-

The financial statements were approved by the trustees on 31 March 2026

E Kilic

SHARING AFFECTION LOVE AND MERCY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

2025 2024
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 11
operations (84,586) 327,701
Net cash generated from investing activities (58,555) -
Net cash generated from financing activities - -
Net (decrease)/increase in cash and cash
equivalents (143,141) 327,701
Cash and cash equivalents at beginning of year 327,701 -
Cash and cash equivalents at end of year 184,560 327,701

SHARING AFFECTION LOVE AND MERCY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

Charity information

Sharing Affection Love and Mercy is a registered charity in England and Wales under registration number 1202766, governed by its constitution as adopted on 19 April 2023.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

SHARING AFFECTION LOVE AND MERCY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on charitable activities includes all costs incurred by a charity in undertaking

activities that further its charitable aims for the benefit of its beneficiaries, including those

support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

SHARING AFFECTION LOVE AND MERCY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

(Continued)

1.7 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Donations and gifts 396,473 594,266
4 Expenditure on charitable activities
Charitable Charitable
Activities Activities
2025 2024
£ £
Direct costs
Charitable Activities 247,661 266,565
Analysis by fund
Unrestricted funds 247,661 266,565
5 Net movement in funds 2025 2024
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements 2,500 2,500

SHARING AFFECTION LOVE AND MERCY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

7 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

8 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

9 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 June Incoming Resources At 31 May
2024 resources expended 2025
£ £ £ £
General funds 327,701 396,473 (247,661) 476,513
Previous year: At 19 April Incoming Resources At 31 May
2023 resources expended 2024
£ £ £ £
General funds - 594,266 (266,565) 327,701

10 Related party transactions

There were no disclosable related party transactions during the year (2024 - none).

SHARING AFFECTION LOVE AND MERCY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

11
Cash (absorbed by)/generated from operations		 2025 2024 2024
£ £
(Deficit)/surplus for the year (143,141) 327,701
Cash (absorbed by)/generated from operations (143,141) 327,701
12
Analysis of changes in net funds
The charity had no material debt during the year.
13 Tangible Fixed Assets Leasehold Improvements
£
Cost or Valuation
At 1 June 2024
Additions 58,555
At 31 May 2025 58,555
Depreciation and Impairment
At 1 June 2024
Charge for the year -
-
Carrying amount
As at 31 May 2025 58,555