KbGIS'I"ERED C.IlèlRITY NUNIBER: 1205277 REPOR'I. OTr TllE TRUSTEE.S AND FINATr4CIAL STATEMENTS FOR THE PERlnD 18 OCTOHER 2023 TO 31 MARCH 2025 FOR KOTHIA FouDA7.10 Prestons & Jacksons Partner%hip LLP Statutory Auditors 364 - 368 Cranbrook Rudd Ilford IG2 6HY
KOTHIA FOUNDA"I'ION CONTENTS OF THE FILIANCIAL STATEMF.N'TS FOR THE PERIOD 18 OC'I'OBER 2023 TO 31 MARCH 2025 Pa£e Report of the Truqtees R¢port of the Independent Auditors 12 to 15 StatetDellt of Tr'inancial Activities 16 B8l&nce %heet Cash Flow %t&leet Notes to the Cash Flow St&temellt 19 Note5 to the Finaneial Statements 20 1() 26 Detailed St&teTnent of FlnADelal Activities 27
KOTHIA FOUNDA'I'ION REPORT OF THE TRUSTEES FOR TUE PERIOD 18 OCTOBER 2023 TO 31 lARCH 2025 Th¢ trusle¢s present their report with the financial siatementq ot- Ihe cF]arity r()r ihe perii)d l R OLtobcr 2023 lo .31 March 2025. 'l-he trnstees have ad()pted tl)e prvi.lnS of Accounting and Rcporting by Charities.. Staleiiient Rc¢oiiimcnded Practice applicable to charities prepciring their accounts in a¢cordan¢c with th¢ Financial Rcporling Si4inddrd appli¢ablc in th¢ and Republic of Ireland (FRS 102) {ettective l January 2019). B,TF.C.TIN'ES LYD AC'I'IVI'I'IES Charituble purposes Thc Foundatinn'4 objectg, 88 set out in its C.on8titution, arc ro furthcr such charstable purposes (oharilable undLF F,.ng.lish law) as the trustees see tit from time lo time loi Ilie publi¢ b¢n¢fil, inLluding by making gFranls lo individuals vr f)rg4visalions furthcring such cl)arilable purposes. r4qAln Xctivitieg during tho poriod "I he Foundation's main activities during the period 'ere'. CIrani-iiiaking Ii) dclivcry partners providing core and project grant£ t() selected organisatiorL% whn8e pro8rammcs align w'ith ihc buundalion's Lharitablc objccts (tor cxaillple, hardship reliet., edueation, aiid Lomniunity dttv¢lcipmLnt}. Pl< rtner selection and du¢ diligT¢ncc revieM'ing7 the siatus, g7overndnLe, bdf¢¥uarding (ind financial Colltrols of potential graiitees, and agreeingF Lledf iondilic)ns, inLluding outcomcs, reporting and use of funds. Moniio)riDg and learlliDg receivinb pri)porlionat¢ narrative and financial repiJr15, holding review calls or visitb M,h¢r¢ appropriat¢. and eapturing key learning for tuture funding deLi8ions. Asset dnd i¥'aqf d¢v¢loptn¢nl - invcsting in assets iJ]tellded to support sustainable, longer-terni inLI)Jn¢ f()r charitablc activiiy, in line with charity law and relei'ani Shariah principle%. Conccptualisation of Yusuf Academy Lid estiib1i5hing dn ¢du¢ational subsidiar), as a veliicle tor strllctured learning and ¢nrichment programmes. Yusuf AcadLLny Lid Wds inLorporaied on I st July 21125. Pagc I
KOTIIIA FouATIo RLPORT OF THE TRUSTEES FOR THE PERIOD 18 OCTOBER 2V23'1'0 31 MARCII 2025 OBJF.CTIVF.S AND ACTII'ITIES Public benefit 'I'h¢ trugtces confirm ihat thc), have had du¢ rcgard lo th¢ Cliarity Commission's public bcnefii guidance wheii planning Ili¢ foundation's actiN'ities and in making d¢cisioii.% dboui ihe use of funds. In particular, tlicy ¢nsuTL that.. grants aiid actii'itlcs arc Ll¢drlv linked to thL Fuundation's cl)aritable purposc5; tlie benefits are to the piiblic or a sufficicnl .qcetinn thf the public; and any pril'ate beiiefits dre inLid¢nlul and neL¥ssary to achieving the charilablc aiiDS. Wbo benefits and Dceds addressed Kothia Foundatio)n advan¢Ls public benefit by funding trusted partn¢rs thal suppurL p¢uple experiencing hardship aiid disadi'anta¥NL in thc UK and iiver%ea%. Beneficiaries includc, for cxamplc.. low'_incoine families affected by the cost-of-livinbl ¢liblS; Lhildrcn and youn8 p¢aple 'it1) limited access to qualit>, cducation and ¢nrichment,' and vulnerable adults a( risk of poveriy, isolation ()r laLk ul. basic seri'ices. Support is op¥n Iv all. Ilhere dppropriate, work Is deliN'cicd in d M'dy that IS Luliurally and rcligiously sensitive: particularly whcn partncring with Muslim communities and institutions. Pagc 2
KOTHIA FOUIYDATIOIY REPORT OF TIIE TRUSTEES FOR THF. PF.RIOD 18 OCTOBER 2023 TO 31 MARCH 2025 ACHIEN'EMLN'I'S D PEEUORMANCE Ch#ritable &etivitie$ Overi'icw. of the period This was the Foundation's first aLtiN'e period, movin4 from inilidl s¥l-up iIito live bFrant-iiidkinbF dnd lh6 edrly development of a 'aqf-S1Y1e a%set ba8e. Thc trll%tees f(Jcu%cd (Jn huilding .r>Und fnund2tion% in gDvernan¢c, financ¢ and due diligeiice, Il'liile begiriiiiiig to support practiLal projeLLS on the gri)und. Ileadlille acbievements: Supparted thousaTids ot'bcncficiarics tlirough .14 projccts and programmcs. Partnered with 23 delii."ery organi%alion% in the IJK and thversea%. Cvinpl¥lcd the acquisitioii ot. key piopert}' assets tor long-term cliarilable use and iiicon)e generation. Conducted monitoring visits and learning reviewq to infomi fiitiire sirategy. Ic havc begun to Jnake steps LIL ellsuring that the Wallstead site is ready for educational services to be provided by a subsidiary called Yusuf Academy. Kcy proJccts &upportcd: During the period, Kotliia Foundation has given grants lo multiple charity partners acro.%s the world. Th¢se bdn(S hdV¢ b¢¢n dir¢Lt¢d fur 5UStainabl¢, long-lasting projects that cxlcnd bcyond urgcnl liumaiiitariaii ii¢cds willi tlic idca ot. aliTr'ays lookn'ng tO,ard tLiking care of the 'day after,. I'liis is just as iinportaiii as immediate humanitdfidn r¥li¢f, il Fo¢us¢s un buildiD¥ Ihc infrdstru¢tui¢, socicti¢s and tlic pcoplc wiiliin tlicin. Projeet l Homes in YemeD o Partncr.. Abdiillah Aid o LoL¥tiun'. Yemen (k focus: Infra%tructurc buildins o Summary ol. aciivitits dIid uulpuls.. Abdullah Aid was able tn %uece8gfully deliv¢r 70 Pcrn)an¢nt sh¢ltcrs fDr familics affcctcd by COT)flict and llatural disasters. Cost per shelter.. £2500 'I'Lit<il Iludg¢t." £175,000 The Project prioritised widows, orphans, elderl}, individuals and tlicjse with di88bilities. Project 2 _ Hc4ltb Celltre o Partner.. Abdullab .4id Lu¢dlion.' Sla HeJlili C¢nli¢ o Focus.. Hcalth C.cntrc Opcrational Suppon o SuIIindry ul aLlikitieb dnd uulpults.. gupport administcrcd ovcr a 12-month pcriod £104,000 Gran(ed F.n.<ured the delivery of e%%ential medical carc to vulncrablc ¥roups Project 3 Educational Assistance o Partner.. Abdii112£ h Aidijamea Abdullah ibn Umm Maktoum o Location". India o Focus.- Educ<21iolllL I SerN'ices o Summar}, of aL(ii'iliLs and output5'. Education sLrviLes for thobe visually impaired and with speech diificul(ies 14 StudLnts LomplLtLd graduation, 26 studcnls complctcd mcmorisation of thc Qur'an. Project 4 - MedicAI Assistance projects o ParlnLr.' Heal Ilumanit}' o Ltscation: MorL)CCt) & 8ri lanka Page 3
KOTHIA FOUNDA'fioN KEPORT Ob. THE TRUSTEES "OR I"HE PERIOD 18 OCTOBER 2023 TO 31 IIIARCII 2025 u FvLU%.' Proi'idiIig tnedical seivices Iv thoy¢ in n¢¢d o Suinmarv of actii'itie% and outputs.. CiraTlt ainouiit.. £61,000 5 FJi%ahility siipported homes (Sri JAnka) 20 Disabled cbildr¢n sponsor¢d (Sri Lanka) 3 L entre.% lielped to provide mcdical qcrwcc% (Sri Lanka) 50 MllieelLhairs prvvid¢d (Sri Lanka) 100 IIThcelchairs providcd (Mnrncco) Cost uf proj¢¢l Lunipletelsw covered Project 5 - Solar Panel Project o Pdrtn¢r.' Quww'aLuI Islam o Locatioll.. l.ond()n, I'K o Fo¢u8'. Jn812llation ot Solar Panels for the Masjid o Suminarv.. on the 15th of Septcmbcr 2024 to 15th Oct(Jber 2024 o S()lar Panelq successL'ully installed. Project 6 - Ongoing Organi5atiODal support o Partncr.. National Waqf Fund o Location: London, LK o Focus.. OD-goin¥ op¢raliondl bupport lor N'atioiial Waql-Trund, a UK rebFisiered Lharily. I,es¥ons Itarncd and improTrement5 During tliis first ycar, tli¢ vharitj, hd5 gaiTied signiticant cxp¢ri¢nc¢ and learned importani Icssons pertaining tu th¢ Lh<llity operations, compliance and finance; the importanL¢ ol. clear, docunientcd grant pro¢¢ss¢5 from application tlirough to closure. the nced fc)r %imple but consistent projcct monitoring tan]8 to track progress and impaci,. the value ot. early eiiga¥¢mcnt .1[] Pdltn¥rb on govcrnance, -8afeguarding and financial controls., and thc potential of waqf-style assets to providc loTJLJ¢r-lemi stabilit). for sustainablL cliarilable w()rk, if managed prudently. 'I'hese lessons arc bctng built int() updated policies, templares and planninb, r()r Ihe nexl period. Page 4
KOTHIA FOUNDATIO REPOR'I, OTr 'I'IIE TRUS'fEES FOR THE PERIOD 18 OCTOBER 2021 TO 31 MARCH 2025 Tr'IIYLYCIAL KLVILH.. FiDaDcial position OverTriew A %uInrn8rv i)r the F()und4lic)n'% fiDun¢ial pLrfornianLL for tbL pLriod 15 5Lt oui bLloH', W'ith full dtitdils in the acc0tllpanng financial statemcnts. Item Amount {£) Total lllcoine -I'otal Expenditure 5,065,S31 2.268,517 Surplusl O)eficit) for the period 2,797,314 Total funds carried forward at 11103125 2,797 J14 Income during the period comprised donations fToIn the foundci and conncctcd partics, togethcr willi any incomc generated from charitable iiivestments and waqf-linked assets. F.xpenditure retlected grants aB'ardcd, supporr and goi'emance costs, and any direct costs associated with inanaging cl)aritable investmenls. Restricted and unrestricted funds 'I'hc Foundation may hold both rcstricted funds (donation5 given for a specific purposc) and unrestricied funds (which rhe trustees can apply at tlieir discretion in furtherance of the objects). Restricted funds on 31 March 2025.. £1.217,654 L'nrestricted tunds on 31 March ?025.. £1,579,660 Details ot. moi'eineiits on eacb fund are given in the notes to the financial statemeniq. Reseries policv The trustees, policy is to hold tree reserves {unre%tricted fund.% not tied up in fixed assets or dcsignatcd funds) equivalent to approximately three months of expected core operating costs. This is intended to proi'id¢ a buffLr JgFdinst short-t¢nii fluLtuJtivns in and lo cnsurc th¢ orderly .1nd-d0n of activities ifn¢¢d¢(l. On 31 March 2025, frcc rcscrvcs wcrc NIL. Thc trusiccs will review the reserves policy and actudl reserv¢5 pcisilion ai l¢asl annually. Goill% collcern Tlie Lrll.stee% Iiave reviewed Ihe Foundation'8 ca8h-fl()w r()reca4t%, re%erve% dnd fundinb profile r()r dl l¢dst 12 montlis froin the date of approval ot this rcport. On thi.% basi%, they congider that it 1% appropriate to prepare Ihe fjnancial statements on a going-concern basis and ihat there are no material uncertainties in this r¢gard. Page 5
KO'fHIA FOUNDA'I'ION REPORT OF THE TRUSTEES Tr'OR'fHE PERIOD 18 OCTOBER 2023 TO 31 LIL4RC1I 2025 FII44ANCIAL REN'IEW Liquidit>. As of Ihc ycar cnding .) l t March 2025, the charii). IS Dct liquid pu6itivL, and the Iru%tee% liai'e resolved to sell existing assets purclia5¢d to hold ¢nough lunds w.hiLh will facilitatc thc rcpayinent Df loans owed by the charity. The Irustees, poliLy is lo ll)aintain (rec r¢s¢rves - d¢fined as unrestricted fuiids not tied up in fixcd dSSCts or designaEcd funds - cquivalcnt lo appr()ximatclv three months ot expccted corc op¢ratinbF Losls. This reserve acts as a buffer dbF41insl short_tcnn incoi))¢ Iluctuatinns and ensures the F"oundation C¢2n n)anagc an ordcrlv 'ind-down i)f d¢livilie% if ever required. On 31 Marcli 2U25, fr¢¢ r¢s¢rves were NtL. Illiile Lhe Fuundalion cildb total unrcslrictcd funds ot L1,57(1,660, these are currently fully committed to fixed as%ct%, including propLrly aL(Luir¢J lor long-term charitable use and inc()¢ gT¢DCldliun. 'fv ally Foundation's liquidity Ivith ils rLscrves policy. the rrust¢¢s Ii&lV¢ ¢umlliLncLd the salc of ccrtaill propcrty assets. The proceed% from IE]csc disposals ar¢ intended to improNe the Foundaiic)n's Cdsh position, t'acilitate the repayinent of nut%tanding IL)ans, and establish rhe rcqiiircd fr¢¢ rv%Lrve% buffLr. Thc tTU8tees will rei'iew tli¢ rc5civ¢s policy alid the Troundation's d¢tUdl reserves position at least annually. PLANS) EIOR'I'HE COMILYG YE.4R Looking ahead, the IruslLLs inlcnd LL) build on the foutidations laid in this first period. Prioriiies for tlic con]iD8 y¢ar include= l. Deepetting strategic focu5 o c.larify IhemdliL priorities (lor example. education, hardship r¢lief, and Lommunily developinenl) and ariiLulate a simplc thcory Df change fcjr Kotliia Foundation. 2. Strengthening grant-makin% And imp2et ' alld inlroduce a 1sghi-IouLh iinpact trameH'ork o Refinc oLuc diligcncc tool%,' embed proporiionate tnonilorLllgi alignid '7th thc Foundation's siz¢ and contcxt. .3. Developin% w2qf and as5Ct~based work Cunsolidate tlie Brailltre¢ propcrty and any viber <isseis- ensurc strong propcrty manageinent; and clarify h(). income w'ill be applied 10 cliiiritablL puryosi%. 4. CTrowing Yusuf Academ) Ltd rcypollyiblv Support thc subsidiary lo dewelop liibJh-quality, coinpliant ediicatiC)nal programmes, while maintaining clear boundaries bC1.¢¢n charity dnd irdding aLlivilies. S. F.nhAncing govcrnance 8Dd sy'stems o Continu¢ lo fornJalisL policics, proccdurcs and record4,' improi'e reporting to rrnstces; and cxplorc th¢ usc of simple digilal tools fur finan¢¢, CRM and gtallt management. ThesL priorities ,111 be delivered 'ItFLin a framework of prud¢nt finanLial manageinent and a commitment to public bcnefil. Page 6
KOTHIA FOUNDATION REPORT OF THE TRL:STEES FOR TFIE PERIOD 18 OCTOBER 2023 TO 31 LILIRCH 2025 STRUCTURF,, GOIRlNCE AISD MANAGEMENT CTOI'erihing document Kotliia foundaiion is a Charitable InLoryorated Organisalion (CIO) with voting members other than its charily trLLsl¢es (Asbocidtion model). The Foulldation ib re&TlStered will) Il)e chIlY Coinmission for Enyland ai)d Wales, charity numbcr 1205277. 1i.q govcrning document is Ihc C.10 Constitution, adopted on 18 Octobcr 2U23 and amended on ?9 October 2024. Under the Cthnstitutioi), tlie r()Lindatinn'% Dbject.8 are tc) turtlier such charltable purpo8e8 (charitahle under Englisli law) as tlie trustees see fil Irolli tinie to time for the public beiietit, inLludinb (but llot liiiiiled to) by making grant.% to individual% or tts c>rgani%ati(Jn4 turtherii)g guch cl)2ritable purpnse%. The Board of Trubtecs {'Ih¢ BuaFd') ib r¢spun5ibl¢ for th¢ ov¢rdll cunlrol and stral¢gic dir¢ctioJ) of th¢ Foundation, ensuring that it is properly managcd and tbat resources are used only to further irs charitable purp()*eA IhL' publiL. bLnL.fit. Governing document and constitlltional arrangements Thc C.ongtitution SLts out thc ruleg for appDinting, rLM01ng 8nd disqualifying trustccs; callingT lliid holding Inc¢lingFs' (lecision-makingw: manabNemeiit Df Lonflicls o( inlerest., and the appliLalion uf lunds and properLy. It l%() pr(Ivid¢s th¢ trustL¢s with thL usual pow¢rs nv¢¢ssary tu Larry c)ut thv F()undarion's cibjLLis, in¢lu(lin pow¢rg to iniwcst and to cstablish and ovcrscc subsidiary undcrtakin8S. Trustee rccruitment, appointment and induction Trubt¢¢S dfL appointed in dcLorddnce will) IhL Constitution. In prdLlice, this includes ideniifiuation of candidates with relevant skills and cxperience, informal discussions, and a fornial appoiniment proccss recorded in Board minulcs. Un appointment, new tru.qtees receive an induction pack tliat includes.. tlie Constitution and key poli¢ies (conflicts of int¢rest, safeguarding, finance, data prole¢tion, grant-making dnd r¢s¢rv¢s},' thL lalLsI annual rLyori and financial st8iemLnts- an overview ol. current slralcgy, programmLS and partncrs. aiid Charily Cammi%Aian guidance 'The e.%sential trLL8lee {CC3j'. Further training and development is encouraged, incliidinb) atl¢ndan¢¢ al ¢xl¢rnal 4¢minars gLnd bri¢fing.% on charitv govemance, finanee, ri%k, and l%lamic philanihrop>. Meetings decision-mxking 'I'lie Board Lneets ai least quarterly. Meetings review.. strategic direction aiid prioritics. grdnl-niaking and partner pcrformancc.. financial rc%ults, forLcasl8 and reserve8', risk and compliaiice matters; and major operational decisions. Day-to-daj. operations are delegaied to the Head of Operations, within limits set b}, the Board and docutn¢iil¢d in inl¢rnal pro¢¢dures. L¢rtain deGisiunb (for ¢xampl¢, larg¢r ¥rants, bigh-risk jurisdictions, and rc121 ted-parry mattcrsl arc rcscrvcd to thc Board. Page 7
KOTHIA FOUNDATIO REPORT OF THF. TRITSTF.F.S FOR THE PERIOD 18 OC"I'OBFR 2023 TO 31 MARCH 2025 S'I'RLCTLRE, GOVERNANCE f*lAL¥AGLMLLN'I' Ke}, policies The Foundalion tnaiDlainb J suite ufcore policies, including.. sJfesFuardinb; conflicts of inicrcst.. finance and expenses; rcserves., data protection and prii'acy- graiit-niakingT and Pdrtner due diligyenLe: anri-fraud antL-iiion¥y laund¢ringT and sanctions: and risk mdnagement. Thesc poliLiLs arc rLvicwcd pcriDdically and updated as required. Risk management Thc tru%tv¢s havc a duty ta identify and reviem, the risks to w,hich lh¢ charitj. is ixposed and to eiisure appropriatL conlrols are in place to profv'idv redson£LblL dtssurancc against fraud aiid crror. Tlie trustees recognise th¢iT duty to idcntif!,, lissess and manage risk in a proportionate ai)d eftective ,y. They maintain a risk regisler Luveringw slrdt¢gTjL, op¢ralional, financial, LompliaIice and reputational risks. Principal risks arc r¢vi¢wcd at least twicc a year, with mitigating actions agreed and monitor¢d. Kcy Tisks (luring the perind and the main mitigations Included.. Fundlng volAtilit)' dLp¢n(IL'nLe ()n a %mall number of donors and iiiN'esttnelll performanL¢. MitlLPdtiun'. prudenl res¢Th'cs; clLar pipcline planiiing; regular ca8h-floM, forecasting- and diversificalion bctwuin dir¢LI donali()n% and .aqf-11tIked illcome H.bere possible. Safeguarding And reputatiollal risk- woikiIig with beneticiaries and partners in variLd contcxts. MiligT41tÉ()n.' %8feguarding polic},; safer-parti)criDg du¢ dilibFLnLL' Llcar rLporting line%- and escalation proLLdurcs. Deliver). and partner risk - ability of partners to deliver projLLts ds plannLd. () Mitig2lion'. written grant agreements.. staged paynitinis,. tnonilorinLY rLy()Tls and %eleLlive siteivirtual visits,. and a locuE on organisational hcalth, just prvjLLIs. Regulatory and compllance r15k (Including A.Ml. and saDction5}- particulaTly in hi¥her-ri%k countrics. o Mitigation.. 5tru¢luied du¢ dili¥F¢nLe; SdllC(ions and PE,P ch¢cks' us¢ ol. l¢giliTrate banking channels,. and documentarion of all dccisiDn%. Thc rrustLLs arc satisfiLd thdl. al Ilie date ol- approal of this report, there are no risks ihut thr¢al¥n Ihe Foundaiion's ability to coniij)ue as a going concern ..hiCh hai'e not bccn appropriately. Tniiigal¢d. RTr:TrERTr:NCTr: AND ADfvIIP41STR.4TIVE DET.41LS Re¥i5tered Charity number 1205277 Pdgt 8
KOTHIA FOLTNDATION REPORT OF THE TRUSTEES FOR THE PERIOD 18 OCTOBER 2023 TO 31 MARCH 2025 Principal addre$% Watcrgalc8 Accountants l.td l O() Loleman Road Leicester Leicestersliire Trllstees Haroon Kotliid (Cliair) Appointed 18tli October 20?3 Zabir Abdul Isha Patel Appointed i 8th October 2023 Salim .Musa Patel - Appoinled l 8th October 2023 enior staff and advisers Head ot Operationg.. Moliammed Nadat L¢dd ad.15¢[S." Sui¢Trust Limit¢d No trust¢¢ rccciN'¢d any r¢mun¢ration fc)T thcir rolL truslLe duTing tlic pLriod. Trustees are entitled to rcclaiin rvasonablc cxpLnscs incurred in fulfilling their dutics, in line with the foundation's policy. Auditor Prcslons & JaLksons Pdrtnership LLP Statutor}. Auditors 364- 368 Cranbrouk Road Ilford TCJ2 6HY F.VF.NTS .SINCE THE END OF THE PERIOD r.ollowin8 Ihc rclcvant pcriod tlic truqteeq resaled t(J e%tablisl) a wholly ()wned Iradiiig subsidiar!, Yusuf ALad¢iny Ltd (C()panV number 16552800). to delifvei educatloll and enricbmell( services for cbildren and youi)g peoplc. Th¢ subsidiary cnablcs a¢lii'ity that is.. aligned to the Foundation's charitable purposes. but murL OPLralionall J. suilablc oulsidc Ihc parent charity (for cxamplc, 8tatting, contractq and 0mC rcgulgtory rLquiTLmunis). Th¢ K()thia Foundation board approves the subsidiarvs business plan and appoints its directors. Regular reporting, a group re.serves approach and an intra-group agreement are in plac¢ to manage risk, clarify deei%i(Jn-making and protect the charity's assets. Pagye 9
KOTHIA FOLNDATIor4 REPOH'I. OF TIIE TRUSTEES FOR THL PERIOD 18 OCTOBER 2023 TO 11 MARCH 2025 FllndrAising During iliis initial peric)d, the fioundalion's incomc dcrivcd primaril}, from ihc foundcr and related parties. TherL was no public luiidraisiiig tliat look pla¢¢ (ind nu us¢ of proLessional tundraiscrs or commercial participator%, and no fundraising complaints Thcrc rccLIN'L'd. Grant-mAking ApproaLh to grant-making Tlie Foundation's grant-making approach combin¢s gtralegiL focus with proportionate duc diligcnL¢ und tnonitoring. 'L-he tJVl¢(il prvLesb inLludes'. l. lItIal cngag¢tn¢nl idenlification of potcntial partner8 aligned with the b'oundation's prioritics, oftcn through existing neI.rks and rcfcrrals. 2. Application or pr(Trp()%al submission of a proposal scttin¥ out nceds, proposcd 8clivi11CS, Outcomes, budgFel and risk Lonsidcraiions. 3. F)ue diligence revie. of legal status. govcrnancc, safeguarding, finance, AMI. operational capacity. 4. A%%e%smcnt consideration of impact potcnlial, value lor mi)ney, risk level and tit witli the FoundatlQD'S objec15 and publir b¢n¢fil 1cquir¥Ltnt8. 5. Decision and olgreeincnt - Boarcl appr()vAI {()r delegaied approval wli¢r¢ appropriat¢), fullowed by 2 wrilt¢n grant a¥[¥¢en1 s¢llitibT out ILrnis and Londi¢ions. 6. Moiiitoring propvrlic)nate reporting and, Th'here approprialc, 611¢11r1udI visits io Lunfimi dLlivery and Ldplurtt learning. sanctions exposurc and 'I'rustee expenses and renumeration No trustcc rL¢Lived renumeratian for acting as a trustee durin& th¢ p¢riod. Truqlee expenses reimbursed in the period loldll¢d £16.076. These cosis related mainly to trav¢1 (and associated sub8i%tence and accommodation whLre applicablc} fthr programme manitoring and due diligence vi8ils. All expense claims were made in linc with the F()undaiioii's expenses policy, supported by ¢vid¢nc¢, and approvcd throug.h ihL F'oundation's usual controls. Relatcd-part), tran5actlOD5 The Foulldalion enters tritllsdLlions wilh relatcd partics only where tlie trustees are satisfied tl)at doing so is in the chiirity's bcst intvr¢sts and ()n terms no less favourable than tl)os¢ avdildbl¢ fruTn independent third pdrty. An). <iclual or polLntial conflicts ot interest are declared in advancc, rccordcd in ihc minutc.%, and mana¥cd by ihe canflicled person does not tak¢ part in th¢ dib¢ussion or d¢LlS10n. During tlie period.. T)onalinn8' The founder and connectcd partics madc donations totalling £4,373,252. These doncltions ivcrc made without CODdilions aDd b¢ncfils {goods. services or ot11ci,1s¢) w¢r¢ provid¢d lo tlie donors in return. LoaLlS'. 'I'li¢ foundrr prL)i'id¥d inlerest-lree, unsecurcd good-,111 loans of £320000. '1'he loans arc rcpayablc on demand and wcrc used to _iupporl charitv.c0mpllt inveslinLnl &¥ilivitJ and sliort-t¢rIn CdsIL-flow requir¢menls. No securitv, guarantees or charg¢s 'crC given or rLcciircd. The trnstees haN'e commenccd thc salu of certain propenies and expect to complelc disposals in ih¢ near ierin. 'Llis is Inl¢nd¢d lo iD]pruve liquidily, suppor( tlie repayment of outstanding lodns, dnd strLngiihcn tlic 'oundation's frec rcscrTr'cs position. Page 10
KOI'HIA FOL NDATION RF,POR T OF THE TRLTSTEES OR'fHE PERI()D 18 ()CTOBER 2023 TO 31 IWC'.H 2025 'I'he (rubtee5 coiisider Iliar the term5 of these loans are at least as fai'ourahl¢ to thc Foundation as those that ¢ould hdvc bLen obiained from an independent rhird pariv. Otlier than ihe donations (2nd loans disc105cd ahnvc, the trustees are not aware of c1n>' other material related-party Ii"ansactionb duTing th¢ period. Conflicts of interest Contlicts ol" iiitCTe5t ar¢ managed ihtoiigh ihe Foundarion's pnlicv and the Constitutioi)'s provisions. Trustecs declare interests oil appoii)ttiient ]d are asked iu updaie them regularlv. Declarations are also ii)I'it¢d at tlie tart of each Board meeiinty Where a conllicl arises, the Irusiee in qu¢%tion lthdrawS from discussion and decision-making on that matter and is not counlcd in the qUUTUm. Data prol£etion and prii'#L Thc foundatian liolds personal data only where neLes%ary for its charitable purposes (for example, in rclxtion to donors, partners, suppliers and truslees}. 143.%ic cantrol% are in place io protect this information, includingy acces% tonirols, secure siorage and reteiitioii schedules in lin¢ wTrih legdl requircments. STATEMEP4T OF TRITSTEES. RESPONSIBILITIES The trustees are responsible for prepaTing ihe Rcpi?rt {)[ ihe Trustee8 and the financial statement5 in acCordce i% ith applicable law and United Kingdom ALLounting Slaiidards Illnit¢d Kin8dotn Generally AcLcpied Accouiiting Practice). Charity laiv requireb tlie trusiees tn prcpare financial statements for ec2ch financial year. Llndcr that law, Ihe trustees liavc ¢le¢ted to prepare the findncial slatcmtnts in accoTdance with Uniled KingFdi)m QTenerallJ Accepied Accounting Practice (United King,do)Tn ALcuuniing Standards aiid applicable law). Ilndcr charity law the tTU5tee5 must nol approve ihL financial statcments unless thev are iatistied that they Tivi a tTue and ILtir view of ihe slate of attairs of the charity aiid of the inLUtning7 [¥Sl)ILrLes and application of resources, inLluding Ihc incorne and expenditure, ot. rhe charil! for that pcri()d. In prepdring ihose tJI)ancial 5tatemenls, Ihe trusiecs arc rcquired to select suit3bl¢ dCCI)unlin¥ policies and rhen appl}. them coii%i.8tentlv' observe il)e Inelhod5 and PTinLiples in the Charities SUKP.. make judgeTnents and estimates that are reasonable aT)d prudLnl; stal¢ whethcr applicable accounting standards haNe bccn folloivcd, suhject to any material departures disLI()sed dnd explained in tl)e finaiicial statemeiit5' prep<ire the fInela1 stalctncnt8 an the going concern blS unles5 it is inappropriate lo pre5um¢ that ih chariry will Lonlinue in business. The Iru4iees are responsible fur keepiii& proper a¢countin&J records whicl) disclose wiih reasonable a¢curac}' at anv time Ihe finanLi<il pusilion of the chariij and to ¢nablc thcm t(1 ensure that the tinancial Sldlemenls e()mply with the Charities Act 201 l and Th¢ ChaTlty (Accoiint.% and Keports) Rcgulatioii$ 2008. Thej are al%0 r¢8poiisible tor sateguarding tl)e assets of th¢ charit), 2nd hence for takiiig reasonable steps for the preventi4Jn and detcction ()f fTaud and oiher irtegularilies. Approved by order of ihe board of trustees on 30101r2026 and signcd on its behalf by.. ]rtee % VloroDn l<oLLtiQ Page 11
REPORT OF THE INDEPENDET AUDITORS TO THE TRUSTEES OF KOI'HIA Tr'OLINDA'I"ION Opinion We have audited the financial statements ()t Kothia foundation (the 'chariiy) for the period ended 31 March 2025 which comprise the Statement of Fillancial Activities, the Balance Sheet, Clic Cash Flow tatement ai)d notes t() the fii)ancial staternent4, including a summary of signiflcanl accounting policies. 1-he finarLLial reporting frarllework ihat has been applied in IIi¢iT pfepdfdtion is applicablc lam, Unit¥d Kingdom A¢couniing Standards (United Kingdom Generally Acc¢pted Accounting Pra¢tice). lu our opinion the financial siatements.. givc a truc aT)d fair vicw of thc stalc of thc charity'% affairs at 31 March 2025 and of its inc(Jming resourLes dnd dppIiLdtiun uf resourLes. lor the p¥riod then ended; hae heen properly pr¢pared in a¢cordance u?ith United Kingdom CJenerally Accepted Accounting Practice; aiid have been prepared in accordance with the requirements of the Charities Act 2011. Basis for Opillioll We conducted our audit in accordance with International Standards on Auditing (UK) IISAS (UK)) and applicablc law. Our rcsponsibilitics undcr ilio%¢ standards are further d¢scribed in the Audilurs, responsibilities for the audit of the financial staicmcnrs scction of our TCPOrt. Wc arc indcpcTidcnt of the haiily In dccordancc with thc ¢thiLal r¢quircm¢n15 IhaL ¥r¢ r¢l¢vant Iv our audit of (he financial slatem¢nt in thc UK, including ihc FRC'S F.thical Siandard. and w¢ hav¢ fulfilled Dur other cthical reqpanqihilities in aLcordanLe 'Ith these requirementb. We believe thai llie audit eIdellee we have obtained is sufliciellt and appropriatc to provid¢ a basis for our opinion. Conelusions relAting to going eoncern In auditing the financial .statementq, we have concluded that tbe tn]stees' use of the going concern basis of accounting iu the preparation of the financial 5talein¢nls 15 appiopiiat¢. 13ased on ihe M?ork we have perfOred, we haTr'e nol idenlified any maierial unccrlaintics rclating to cvcnts or conditions that, individually or Lollcctivclyy may casl %ignifiLlillt doubl (In the charily'% Ability lo conlinue as a going conccrn for a pcriod of at Icast tH'elvc month8 from when the finanei21 %t2tement% are authoriged fthr issue. Our responsibilities and the respL)nsibilities of the trustees with rcspcct lo going conccrn arc d¢scribed in thc r¢lcvant sLction¥ of this rcport. Other information The trustees arc responsible for the other infonnalion. Thc olhcr information compriscs th¢ infonnation included in the AnnLLal Repvrl, vther than Ihe financial statements and our Report of Ibe Illdependelll Auditnr.% thereon. Our opinion on the financial Statements does not covcr the othcr inforniation and, except io thc extent oLhEr..]¢ ¢xpliLiily stdl¢d ID (Trur r¢purt, w¢ do llot express any forni of assurance conclusion tbereon. In connection with our audit of the financial statemellts, our responsibility is to rcad Ilic oth¢r information and, in doing so, CDnsider whether the other information is matcrially inconsistcnt with th¢ financial sÉaierll¢nts or vur knowledgT¢ vbtdined the audit or oihLnvise appLars io be materially misstaicd. If we idelltify such matLrial ipconsislcncics or aPPdr¢nt material mi%8laiemen(8, we are required to detennine whcthcr this gtvcs rise to a matcrial misslatcm¢nt in the financial qtatement% them%elve.%. If, based on the work we have performed, we ¢0clude that tbere is a material n]isstatement of this other information, we are r¢quired to rcport that fact. We l)ave nothing lo rcport ill this regard. Pagc 12
REPORT OF TIIE INDEPENDENT AUDITORS TO THE TRUSTEES OF KO IHIA TrOUI%DA'IION MAtters which we are required to report by exrcptio 'e hawe nuibing to i¢purl in r¢sp¢¢l vf Ihv followingr m<Ltt¢rs h¥r¥ th¢ Cbdlitieb (Accounts and Reports) Rcgulations 2008 requires us to rcport to yoii if, in vur opinion.. thc infonnation given in the RLport OF the Trustees is inconsislLn( in any matcrial rcspcct with thc financial statements. or suffiLicnl aLcounting records have not beLn kept., or tlie tinancial stal¢ments are nol in agrc¢m¢nt with thc accounling rccords and returns. or we haN'e nat Teceived all the inforniation and explanations we require lor our audit. Responsil)Ilitie$ of trustees As cxplainLd morc fully in thc Statcmcnl of Trustccs, Rcsponsibilitics, thc trustccs arc rcsponsihle tnr the prepargltion uf lh¢ finanLial stat¢m¢nt.4 which gli'¢ a Iru¢ and fair view, and for %u¢h internal control as tlie truqlees detennine is necessary to enahle tlie preparation of tinancial %tatements that are frce from tnatcrial misstatement, wh¢ther due lo fraud or error. In preparing thc financial 5tatcmcnt5. tli¢ trustccs arc rcsponsiblc for assessing th¢ cliarity's ability to oiitinu¢ as a going conccrn, dis¢lusin¥, ds dppli¢<ibl¢, Enall¢is i¢lal¢d tv LTvinbT ¢vnv¢rtL dnd Usi, Ihe byoinb concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, ur Iiavc no rtialistic a1tCrnati'c bul lu do $0. Page 13
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUS'fLES OTr KOTHIA Tr"OUNDATION Our responsibililies for the audit of the finallcial stotements We havc bccn appoinlcd as auditorq under Section 144 of thL C.haTltie% Acl 2011 and report in doLurddnLe witli th¢ ALt aud r¥l¢vdnt reoulatlolls Liiadc or Iiavin¥ eifeLt thercundcr. Our obj¢¢tiN'es are lo obtain rcasonabl¢ assuranLe about w'hcthcr the financial siatemeiits as a wholc arc fr¢¢ from Inalcrial mi8gtatement, ,hether duc to fraud or ¢rr()r, and lo issue a Report of th¥ Ind¢p¢ndeni Auditors thdl Iiicludes our opinion. Ilcasonable assurancc is a high level of assurance, but is not a guarantec that an audit cDnducted in accordance wiib JSA% (IIK) will always detect a mattrrial ]nissldl¢ment *,Iien it exists. Misstateineiits cali arisc froill fraud or crror and arc cc)Ji%idered mateiial if, individiially or in the aggregate. they could reasollably be expc¢lcd io inlluenLe tlie economic decisions of us¢rs laken on the basis of tlicse financial stat¢mcnts. Thc cxtent to whtch our procedures are capable of detecting irregularitics, including ftaud is detailed belom,: Irrcgulariti¢%. inLluding fraud, arc instanccs of non-compliance ii'ith laws and regulativns. We idenlified and dsbttssed the risks ot mat¢ri<il ini6st<iiemenl of Ilic linaiicial %tateinent8 from IrreilaritIcs, u,hether due t() fr<?ud Dr ¢rri)r, and discussed thesc bctWLLn uur audit leain members. We then desigm¢d and perforined audit prucedures respoJ]sive to those risks, including obtaining audit evidence sufficient and appropriatc to pr(Jvide a hasis for our opinion. 'e obtdin¢d dn understanding of the legal and regulaiory framcu'ork wiihin .hIch the charity opcratcs, focusing on Ih(Trsi. law8 and regulations that hav¢ a diieLt effeLt oil Ihe deleriniiiation of niat¢ridl ¢ItOun[S and di¥¢lusuFes in tlic tiiiancial tatementS. "I'he laws and rcgulatian.% we cftn%idered in this contcxt wvrv the C.ompaniLS Aci 20n6 tooether with the Charili¢s SOKP IFRS102). We assessed Ilic r¢qur<d LumplidllcL WitII thLSC laws and regulations as part of our audil proccdur¢% on the related financial sTatcmLnt iL¢ins. In additinn. we consid¢red provisions of oihcr laws and regulations thai do not have a dir¢ci ¢lTeLt on ilie finaiicial statements bui compliance Kvith which mighi be fijndamcnlal to thL charilv'q abilitv to opcratc or to aiwoid iiidtcridl p¢nalt},. rL dlso considered the opportunitl¢S dnd illLeniivcb tlial maj. ¢xist within the charity for fraud. Thc lau's and regulation% we considered werc Gcnvral Dat2 Prnlection Regulation ((iDVK), emploJTtL¢nl l¢bTlStatioiis. taxatioii legislations dnd anli-fraud, bribcry aiid corruption legisli21ion, Ml,R. Ldndlord &Tcnant Act and Ilealih & Safety. Auditing standards limit th¢ required audii proccdur¢s ta identify non-LutnplidnLc with these laws and r¢gulatJon.% to enquiry of thc Trustcc.8 and other managemen( and inspcction of rebrulaiory ai)d legal correspondcncc, if any. W'e idenlifi¢d die ¥r¢dtebl risk ol. Inalerial itnpacl the findncial statLyncnts Irajii irreilarIties, including fraud, 10 bc i¥'ithin thc timing of recognition of incomc i?nd thty i)verride i)t eontrols by InanagT¢tnent. Our audit prucedures to respond to th¢s¢ riskb included cnquiricq ol- managemeni and the Trustccs ahnul their 'n idcntification and assessment of thc risks and irregularilies, sample testing on th¢ pusLingN ol. .joun)als. reVie.1g accountlllg ¢stlllldt¢s lor biaseb, rcvicwiTTr8 rcgul2tnry' correspondcnce ][h C.liarit}, Commi%.%ion, revie. of donor audit rcpurls, dnd readino af. millutes 0£. meetings of thos¢ ilidfgTed willi goi'ernancc. OIN'ing to inbcrcnt limilaiithns of an audit. tliere is an una&'oidabl¢ ritsk Ihal we inay not liav¢ dct¢ctcd 50]ll¢ aterial misslatcmcnts in the finaiicial st1£ iemcnis, even though ,¢ ha't properly planned and pcrformtyd our audit in aLv()rdance witli auditing standdids. kor ¢A8p]e, the lurilier rellloiwcd non-compliallLL NN'ith la'S and regulations (irregularities) is from the eiienls and tran%actiDnq reflected in the financial %ldl¢Tntnl%, the le%8 liktrly die inherently Iimitcd prvLedures required b). auditiiig standards IOuld identif). it. In additiÉ)ii, a8 witli any audit, thcrc rcmained a higher risk of non deie¢tion of irr¥gFuldrities, as thLbC ]na}' inv()Ive collusion. forgery., intentional oinissithns. misrepresentations, or the ovcrridc of internal conirols. Wc are not rcspo)nsiblc for preventing non-cotnplianc¢ <llid LvI be LxpLLlcd to d¢tect non-con)plianLe w'itb all law's and rcgulatiaiis. Pagc 14
REPORT OF THE INDEPENDEIYT ALDITORS I O 'I"HL I'RUSI'EES Ofr KOTHIA FOUNDATION A further description of our respthnsihilities for the audit of the financial statements is locatcd on thc FiIiaiicial Reporiinb, CouIicil's website at wThw.Irc.org.uklauditorsrespoJ]sibilities. 'L'his d¢s¢ripliun foms part of our Report OP the Independent Auditors. Use of our report Thiq reporl 1% made %()lely to the charily's trustees, as a body, ill accordance with Part 4 of the Chdritics {Actc)unt% and Rcporls) Regulati()n% 2008. Our audit upork has been undertaken so Ihar wc mighi stalc to thc charity's trustee.% tl)o.qe Iiialters Th'e are required to state to thell] in an auditOTS' r¢port dnd fur no oth¢r purposc. Tc) tl)e tullest extent permitted by law, we do noi accept or assume responbibility to anyonL Othcr Iban the cbarity and the charity's trustees as a body, for uur audil M'ork, foi tbits rLpurt, for the opinions 'e l)ave forn)ed. PrLsions & Jacksons Partncrship l.l.P Stalulory AudiL()r% 364- 368 Cranbrook Road Ilford Essex l(i2 61 ly Dare.. io Pdgc 15
KOTHIA FOULYDAI"IOIN STATEMENT OF FINANCIAL ACTII'ITIES FOR'I'llE PERIOD 18 OC I'OBLR 2023 TO 31 MARCH 2025 Lnrestricted Restricted fund fund Total funds Notes ITrIC.ONIE èLPD F.NDOWMF.NTS FROM DoLiatiolls 1,958,7.33 3,107,098 5,065,831 FXPENDITLTRE ON Charitable actii'ities I'oor & Needy Lillah Support 1.764,206 1,764,206 279,548 224,763 279.548 99,525 125,238 Total 379,(173 1,889,444 2,268,517 TrET JNC.OMF. 1,579,660 1,217,654 2,797J14 TOTAI. FUNDS CARIUED FORWARD 1,579,660 1,217,654 2.797,314 The notes form part of these financial statements Page 16
KOTIIIA b-OLNDATJOY BAI,AYC.F. 8HF.F.T 3] MARCH 21125 Notes FIXED ASSETS Tangible &4%LI% Investmeni property 379,250 879,979 1,259,229 CITRRENT ASSETS Debtvrb Cash at bank 1,564,663 1,427,346 2,992,009 CRF.Di"foRS Ai)ioui)ts talling due within one year 10 11,4$3,924) NET CURRENT ASJiETS 1,538,085 TOTAL ASSL'I'S LESS CURRENT LIABILITIES 2,797.314 NET ASSETS 2,797,314 FLNDS Unrestricted tunds Reslricied funds 12 1,579,660 1.217,6$4 TOTAL FUNDS 2,797.J14 The financial statcm¢nls weTe approved by the Bodrd of Trubiees and auihorised for issue on 3010112026 and wcre signed oj) its behii11-by'. rruslee 41 Hof oon ¥LoWIo The notes lomi part of these financial staleillcnls Page 17
KOTIIIA FOUNDATION CASH FLOW STATEMENT FOR THE PERIOD 18 OCTOBER 2023'I"0 31 MARCH 2025 Noles C8sh flows from oper¥ting lletivlties Ca%h generated from ()perations 2,686,575 Nct Cash providcd by opcrating activitics 2,686,575 CA5h flows from invc5ting Activities Purchase ot tai)gible fixed asscts Purcha9¢ of inv¢8tm¢nt property (379,250} (879,979) Nct cash (used iA)Iprovided by investing activities (1,259,229) Change in cAsh and casb cquivAlents ID the reporting perlod c.asb and cash equivalents at the beginning of the reportiDg peri(Id 1,427,346 Cash and cash equivalents at the cnd of the Teporting period 1,427,.146 The notes forni part of these financial statements Pdue18
KOTHIA FOUNDATIOIY NOTES TO THE CASH FLOW STATEMEIN'T FOR I'HL PERIOD 18 OCI'OBER 2023.1.0 31 MARCH 2025 RECONCILIA'I'ION Ob NE'I. 1colE TO NET CASH FLOW FROM OPERATING ACTIIqTIES l%ct lllcoD]c for tbc rcportlng pcrlod (a% per tbe St8temeDt of linancial Aetivities) Adjugtm¢nts for: InLrcas¢ in d¢bivrs Increase in creditors 2,797,314 (1,564,663) 1,453,924 Tr4et eAsh provided bv operations 2,686,575 ANALYSIS 0, CHAf4Gfr;S ITr1 Tr&:'I' TrLNDS At 18110121 C<h flc)w At 311.1125 Net ¢4$h C.36h al bank 1,427,346 1,427J46 1,427,346 1,427,340 Total 1,427,346 1,427,346 The notes fonn part of these fiiianLial st£itement5
KOTHIA FOUIYDATIOIN NOTES TO THE FIIYANCIAL SI"A'I.EME'Ts FOR THE PERIOD 18 OCTOBLK 2023 TO 31 MARCH 2025 ACCOUNTIF G POLICIES Basls of preparlng the financial 5tatemeDt5 The financial statemcnts of thc iharity, .hic?7 is a public bellefit cntily und¢r FRS 102, hdwe bLen pr¢pdr¢d in aLcor(lance wilh thc Charitics S()RI' (I,'KS 102) 'Accounting and Rcporiing b}, Charitics.. Sti2tcincnt of RLLI)mTnended Practice applicable to chdrities pr¢paTing th¢ir aLLuunLs ill accordance willi the Financial Rcporting Standard applicable in the UK and Republic of Jrcland {fRS 102) (Lff¢¢liN'e l Januarv 2019),: Fiiiancial Reporting Sianddrd 102 'The Financial Reporting Staiidard applicablc in the IJK and Republic of Ireland, and the Charilics Act 2011. Thc financial slalements hai'¢ b¢en prepared under the historical cost CODv¢nticin. lucome All income is recognised in tl)e Sralcmcnl of FIllclaI A¢tivities once the cliarity has eiilitlement to the funds. it is probable that tlie ittLomc will bc rccciN'cd and the amount can be measured rcliably. Doiiations.. This compris¢s all inLoming rLsources trom donations frotn individuals and corpordte orgianisdlions which arg rLLciuTnis¢d on a receipt basis. Ini'estmellt lD¢vme Investmcnt Incomb Lomprise% inLame generated frotn Ini'cstm¢nts and r¢nts r¢Ltiwables. Rents RcCL1.ubl: Incame 18 recogtlised oi'er the term of r¢nlal agT¢¢m¢nls. DCreed InLome'. Donations alld graiits gi.¢ to th¢ Lhdrily Ihdl reldL¥g lo future accounting periods, the incoine is deferred until those periods. F,xpenditurc Liabilities art recognised as expenditure as soon as there is a Itgal or constructive obligation committing the charity io that cxp¢nditure, il is probable thai a transler of econoinic bcncfits Ii'ill b¢ required in settlement and thc amouDt of the Dhligatinn can be measured reliably. ExpLnditurL iy accounted for on an dccrualb basis and has been classitied under headings that agsryebwdte all Lost rclat¢d to thL LatLgory. Th'hcrc costs cannot bc directly attributed to partici?lar headings they havi bccn allocated i() aLtiN'ities on a basis consisiellt with tl)c use of resoUrLe. Grants oll¢red subj¢ct to coiiditions .hICh have not bccn Tnct at ihe ycar end date are noted as a commitment but i)ot accrued as ¢xp¢ndilure. C.harital)Ic actiTritiC5 The%e Lie ccjsts associated with the provision of charitabl¢ prcTrjects and development programmes as elaborated on iii the trust¢¢s. r¢p(Trrl s¥¢lion. These include botli direct costs alld 5UPPQrt co¥ts relating to these a¢tivities. ov¢rDanee costs 'I'hese arc costs asso)cialcd '1th the g(Jvemance arrangements of Kothia Foundation. IncludLd w'ithin this calegory are slrategic costs as opposed lo the day-Iv4dy mana¥Femenl cosls ol. th¢ I,-oundation. Govemance support cosis ai¢ allocat¢d babls Ot. support activitics provided on clearly interpreted governance matters. Tanlible fixed Assets Depreciation is provided at thc following dnuual Tales in order to write off cacb ass¢t ov¢r ils estinidt¢d useful life. Page 20 continued...
KOTHIA FOUNDATION OTES TO THE FIISAIICIAL STATLMTr.J%'TS- cantinued FOR'I'IIL PERIOD 18 OC'I'OBbR 2021.1.0 11 MARCH 2025 ACCOUN"1'1Tr4G POLICIES- continued I'angible fjxed assets No deprecialion is LbgCd in Ihc J'¢ar of acquisitions of-buildings. Investment propert}. tnv¢stin¢nt propLr(}' is shuwn al mosl recent valuation. Any aggrcgate surplus or dLficil arising from changes in lair valuL is rccogniscd in thc 8taternent ot-Financial Activities. Taxatlon Thc charit). is cxcmpi fT(ITn Idx on its charitable activities. Fund accounting UnF¢6lriLled funds Ldn bL used in accordaiice wilh tlie cliaritable obj¢ctiv¢ts at the diSLr¢tion ol the trustccs. Rcstrictcd funds ean nnly be used for particular resiricted purposcs within Ihc c)bj¢¢t% (?f ihe charity. R¥striLlions arise w'hen specitied by tlic doiioi 01 w,hcn funds dr# raised for particular rcstrictcd purp(Jse%. F.ndaH'.ment funds is a fund givcn to thL Ctlarity as oapilal. Any inL()me gienerated tro end0.1ellt tunds is cith¢r invest¢d or retainLd lor its purposcs. urther explanation uf th¢ naturL and purpose of cach fund is included iii thc notcs to ihL finanLial slate]nen(s. Qardh ha¥san¥ C.oncessiondl loans- Thcs¢ are intereqt free concessional loans froml (to) thL Lomn]uJJily loi{fF£)In) tlie charity, wliich are repaj'able on demand and are showed as othcr crcditorsl (dcbtors) wiihin onc year. DONATIONS T)onatitsn% Donalcd S¢FVi¢¢S Lnd tdLilities 5,063,281 2,5SO 5,065,831 Pa&Te 21 continued...
KOTHIA FOUNDATIOIY NOTF.S TO THE FII%ANCIAL s'fA'J'EMENTS- continued FOR THE PERIOD 18 OL'foBER 2023 TO 31 MARC:H 2025 DONATIONS- continued The total voluntary donations received during the year were as follows: 18th Oct 23 to 31st Mar 25 Poor & Needs, 3,107,098 1,956,183 2,550 ServiLeb in Kind 5,065,831 CHARI"I"ARSLE ACTIVITIL% COS'IS Grant fiLnding? of activities (see nc)Ic Support costs (see not¢ 5) Direct C05t5 4) Totals Phar & Needy Lillah Support 1,764,206 279,-$48 125,000 1,764,206 279,$48 224,763 21,881 77,882 21,88] 2,16fl,754 77,882 2,268.517 GRATs PA YABLE Poor & N¢¢dy Lilldh Support 1,764,206 279,54R 125,000 2,168,754 Page 22 Li)ntinucd...
KOTHIA FOUDATION OTES TO THE FINANCIAL STATEMETr4'1"S- continued FOR THE PERIOD 18 oc'foBLR 2023 1.0 31 MARCIA 2025 GRANTS PAYABLE- continued 'llie toldl grdnlb Pdid tv InS(itutions during thc pcriod wa8 a8 follo'S.. Bolton FAlucation Abdulldh Aid Afifah Darul LTlc)oiii Kantharia F'.Inan C.hatincl I,TA Rclicf Trust M bbiabiin Mulla Ma'arif fioundaii()n Olive High Onc UmTllah Waterfall Charity 'ellbeing Care F,oundation 14lhitbrcad Ilorld Car¢ bounddtion larious Cjreen Lane Coinmunity Centre Elcal Ilummanity Aihar ALddLmy National Ivaqf QU...a{ Ul Islam Tafsccr Rahcemi l.td .10,000 608,400 5V,OVO io,ono 65,000 390,000 74,000 406,000 J 5,000 20,000 32,243 15,0110 9,413 1,000 206,395 56,967 60,non 15,260 44,000 25,000 35,076 2,1611,754 The total grants pxid to institutiony, in terms activities, during tbe period .8$ as follom's: 18th Oct 23 to 31st Mar 25 Amount {£} Education E,Inergency Aid Food Packs Hard%hip5 Housing Masjid/ Madrasah Medical Organisational Infrastructure l)ovr & N¢cdy Other5 285,960 319.ullo 53,360 io,ooo 776.393 218,255 253,000 131,992 39,000 111,794 2.161S.754 PabJe 23 continued...
KO'I"HIA Tr"OUNDATIO NO'I'ES TO'I'HE FINANCIAL STATEMLIY'IS- continued FOR'fHE PERIOD 18 OCTOBER 2023 TO 31 MARCH 2025 SUPPORT COSTS Goi'emanc¢ costs Financc Totals Support 68 77,814 77.8¥2 TRUSTEES, RbMUNF.RAI'ION AND BEIYETrI'J'S There wcrc no truslee4' remuneratloll or oihcr bcn¢fi15 fur lh¢ pvrivd Lndcd 31 March 2025. Trustees, expenses Triislccs, cxpcnses 18,028 Thc trustccs cxpenses related to travel expcns¢s, in¢ludiIig subsistence and accommoddliun for programme monitoring and du¢ diligence iwiqits. TANGIBLE FIXED ASSEJ'S Fixlurcs Frechold property fittings Totals COST Additions 374,256 4,994 379,250 LT BOOK VAI,LF. At 31 March 2025 J74256 4,994 379,250 Ir4VEST.MF,NT PROPERTY FAIR N'ALUE Additions 879,979 At 31 Niarch 2025 879,979 NET BOOK VALUE At 31 March 2025 879,979 Page 24 continued...
KOTHIA FOUNDATION NOTES TO THE F1,'ClAl. STATF.MENTS- continued FOR THE PERIOD 18 OCTOBER 2023 TO 31 MARCH 2025 DEBTORS: AI¥IOUNTS FALLIIG DUE WITIII.j ONL YEAK Other debtors Prcpajincnis 1,564,110 553 1,-$64,661 10. CRF.DITORS* ilMOUNT% FALLING DUL WlI'Hlli ofib. YF.AR 'I'rade crcditOlS ()ther creditor5 164 1,453,760 1.453,924 ANALYSIS OTr NE"I' ASSL rs BETWF.F.N FUNDS Unrestricted Restricted fund fund T()tal funds Fixed assets Investments C.urrcnl as%Ct8 Curr¢nt liabilili¢s 379,250 879,979 1,049,355 (lJ2¥,Y24) 379,250 t179,979 1,142,654 2,992,009 (125,000) (1,453,924) 1,579,660 1,217,654 2,797,314 12. lw101N'[ IN TrUNDS Nel moveinent in funds Ai 3113125 Unrestrlcted fllnd Cieneral fund 1,579,660 1,579,660 Restrieted funds K¢btiiLt¢d 1,217,654 1,217,654 TOTAL FUNDS 2,797,314 2,797,314 Pagc 25 continued...
KOTHIA FOLh'DATION 'OTES TO THF. FINANCIAL STATELVIENT5 - eoDtiDued FOR THF. PERIOD 18 OCI'OBER 2023 TO 31 IIIARCH 2025 12. MOIIETrI IENT IN bUNDS- eonlinued Nel ]novemcnt in lunds, inlluded in the above are as tollows.. Incoming Resourccs .Moi'¢mcnl rcsourc¢s ¢xpended in funds Unrestrirtcd funds GLnLral fund 1,9$8,773 (.379,07.3) 1,579,660 Restricted funds Rcstrictcd 3,107,098 (1,889,444) 1,217,654 TOTAL FLlTriDS 5,065,831 (2,268,517) 2.797,314 Restricted Funds All r¢striol¢d lunds carried torH'ard as at 31 March 2025 coinpris¢d of funds lo be utilised for the benofits of the ponr and ne¢dv. 13. RF,I,ATF.D PARTY DISCLOSURES The connected parties to the trustees donat¢d £4,373,252 durinbr Ihe period ended 31 sl March 2025. The connected parties lo th¢ trusl¢¢s dlsu bFdP N'e an inlerest tree loan ot £320.000 repayabl¢ on d¢mdnd, duTing th¢ pcriod cndLd I I si Nfarch 202.f . ro th¢ Fnundatinn. 14. POST BALANCE SHEE'I" EN'F.NTS A subsidiary, Yusuf A¢#d¢my Itd, 'aS illcorporated on I st July 2025. principal Iradirig &iLlivitit arL educalional qupport scrN'ice%, and the COTnpan} regisiraiion number is 16552800. Page 26