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 Fou￿DA7.10 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&le￿e￿t 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 pr￿vi.￿l￿nS 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 Fou￿￿ATIo 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 b￿dn(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. 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 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, rLM0￿1ng 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- appro￿al 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 resal￿ed 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¢1￿1r1udI 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). ' 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 acCord￿ce 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