2021-03-31-accounts

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

Charity Registration No. 273130

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Mr S Ebrahim
	Mr A Walji
	Mr A Salehi
	Mr N Virji
Charity number	273130
Principal address	2-8 Burton Street
	Peterborough
	Cambridgeshire
	PE1 5HD
Auditor	Deitch Cooper LLP
	2nd Floor
	Congress House
	Lyon Road
	Harrow
	Middlesex
	HA1 2EN
Bankers	Barclays Bank PLC
	114 High Street
	Old Fletton
	Peterborough
	PE2 8DP
Solicitors	Hunt & Coombs LLP
	35 Thorpe Road
	Peterborough
	Cambridgeshire
	PE3 6AG
Office bearers	Rizwan Rahemtulla	President
	Abbas Manji	Vice president
	Mohamed Iqbal Manji	Secretary
	Ramzan Walji	Treasurer
	Imtiazali Bhimani	Assistant treasurer
Proposed elected members
Management committee	Salim Rehamtullah	Immediate past president
	Maisam Husseinaly Damani	Education
	Shokat Bhalwani	HVC/Kitchen
	Dr Mohammed Othman	Medical
	Sibtain Damji	Shia sports
	Abdul Hirji	Welfare
	Sarfaraz Mavani	Youth & English lecture
	Zahra Ratansi	Projects co-ordinator
Nominated - Management
committee	Mohammed Jaffer Jagani	Maintenance
	Abisali Ebrahim	Madrasah Liaison
	Hussein Datoo	IT/Communications
	Mullah Mohammed Kassamali	Tabligh

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CONTENTS

	Page
Trustees' report	1 - 5
Independent auditor's report	6 - 8
Consolidated statement of financial activities	9
Consolidated statement of financial position	10
Charity statement of financial position	11
Consolidated statement of cash flows	12
Notes to the financial statements	13 - 28

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and the consolidated financial statements for the year ended 31 March 2021. The legal and administrative information page forms a part of this report.

Objectives and activities for the public benefit

The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

The principal objective of the charity is to advance the Islamic Religion in accordance with the Shia Ithna-Asheri Jafferi faith, by all or any of the following means:

• a) Propagate and promote the religious, social, educational and humanitarian teachings of the Shia IthnaAsheri Jafferi faith as per the rulings of the Marja, recognised by our community at large.

• b) To buy, rent, build and maintain centres, mosques and such other infrastructure as may be necessary from time to time for the furtherance of the Objects of The Community.

• c) To facilitate, maintain and develop the worship and practice of the Shia Ithna-Asheri Jafferi faith.

• d) To raise funds and invite and receive contributions from any person(s), organisation(s), or institution(s) whatsoever by way of subscription, donations or otherwise, provided that The Community shall not undertake any permanent trading activities in raising funds for its charitable objects.

• e) To relieve poverty within and outside The Community.

• f) To educate members of The Community in both secular and religious fields.

• g) To promote health and wellbeing of The Community.

• h) To work in co-operation with other Shia Ithna-Asheri Muslim Communities and other charitable organisations.

• i) To educate and further understand Khoja heritage, history, culture and its principles in order to pass such understanding down to successive generations.

• j) Promoting knowledge and mutual understanding between the Khoja Shia Ithna-Asheri Community and different racial and cultural groups.

• k) To handle and manage at its own discretion, but in accordance with English Law, such charitable trusts of Members, that has been handed over to The Community for their management.

• l) To perform marriage ceremonies and burial rites in accordance with the Shia Ithna-Ashei Jafferi faith.

• m) To do all such other things as shall further the above mentioned objects.

The charity focuses primarily on its religious activities but is supported in its objectives by its fellow group companies.

• The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation – This is an investment holding company and owns most of the investment properties held by the group.

• 313 Project Ltd - The company's objective is to complete the Al-Qaeem project and any profits earned by the company will be donated to the charity.

• 313 Trust Corporation Ltd – This is an investment holding company and owns an investment property held by the group.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

The Trustees have considered the Charity Commission's general guidance on public benefit and in particular its supplementary guidance on the advancement of religion for the benefit of the public.

The charity provides facilities for observing the important events in the Shia calendar.

• a) There are approximately 125 days of importance in the calendar which are marked by observations with special functions in the Mosque. These include the fasting month of Mahe Ramadhaan and the mourning month of Mahe Muharram.

• b) Daily prayer facilities (congregation and individual) are held three times a day throughout the year.

• c) Facilities are provided for Juma prayers every Friday where participants include the wider Muslim community.

• d) Welfare support for families in poverty (with the assistance of the Council of European Jamaats and The World Federation of Khoja Shia Ithna-Asheri Muslim Communities).

• e) Facilitating, hosting and organising weddings and funerals.

• f) Hosting Youth programmes incorporating sports, debates, quizzes, etc.

• g) Providing education facilities including Husaini Madrasah and Husaini Pre-School.

• h) Hosting Inter-Faith activities for those of other faiths or no faith.

• i) Supporting Ladies and Gents’ Senior Citizen groups to cater for their physical, emotional and religious needs.

• j) Hosting of various programmes specifically catering for the females of the community.

• k) Supporting the Youth and English Lecture Committee to organise programmes specifically catering for the youth of the community.

• l) Provide training to ensure compliance (e.g. Safeguarding of Children in Madrasah, First Aid at Work, etc.)

• m) Provide Safeguarding and Emotional Support to those in need.

• n) Attendance and affiliation to City-wide organisations (e.g. Muslim Council of Peterborough, Joint Muslims Council, Peterborough Inter-faith Council, Children & Education Scrutiny Panel, etc.).

• o) Provide seminars to increase the awareness of medical issues pertaining to the needs of the community and educate the community in combating them.

• p) Working with Partner Agencies to help both the homeless and those in need (e.g. Husaini Soup Kitchen).

• q) During 2016, the charity incorporated a company named 313 Project Ltd. The company was set up to take over and complete the Al-Qaeem project which had been commenced by the charity at the point where the contractors had failed to meet their obligations under the construction contract. The company's objective is to complete the project and any profits earned annually by the company will be donated back to the charity. The construction of the project is still ongoing at the date of the approval of this report.

• r) On 18 November 2019 a new subsidiary company, 313 Trust Corporation Ltd was incorporated. This is an investment holding company controlled by the charity for the benefit of the charity and for no other purpose. This company purchased an investment property during the period. Its financial position at 31 March 2021 and results for the year then ended are consolidated in these financial statements.

Due to the Covid pandemic, the mosque was closed for the majority of the year. The mosque delivered most of its activities and programmes online or on a restricted numbers basis.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Financial review

The results for the year are shown on pages 8 to 11. The consolidated statement of financial activities shows the income and the expenditure analysed between different activities conducted by the group. In order to provide a better understanding of the activities undertaken, a summary of the activities is included.

The Statement of Financial Activities shows how the group's funds have been applied during the year. The gross receipts of the group were £901,383 (2020: £788,212). Donations directly relating to the principal activities amounted to £730,965 (2020: £612,613). During the year, the value of the investment properties increased by £31,615. The group has achieved an overall net income for the year of £551,282 (2020: £935,495). Total reserves of £7,642,136(2020: £7,090,854) have been carried forward to forthcoming years.

Reserves policy

The perpetual nature of the charity's existence means that it will never cease to exist and therefore reserves are carried forward at the end of each financial year. The Trustees and the management committee aim to maintain unrestricted reserves at a level which equates approximately to three months of its unrestricted charitable expenditure, which amounts to £25,000. It is in the Trustees and the management committee views that this level is sufficient to respond to an unexpected level of expenditure as well as finance other recurring expenditure. The Trustees and management committee are not remunerated. The restricted funds all relate to items there the donors have specified its intended use or recipient. Where deficit occur on the restricted funds, the Trustees would normally use the unrestricted funds to disburse them.

Investment policy

The assets of the parent charity are held in the nominee name of the Trustees. The constitution authorises the Trustees to make further capital investments in furtherance of the charity's objectives. All but one of the investment properties owned by the group are held in the names of the group companies limited by guarantee and are consolidated in these financial statements.

Risk management

The Trustees recognise that effective risk management is essential in achieving the Charity's and group’s objectives. Risk management is considered as an integral element of all decision making and identifying appropriate procedures to ensure that risk levels are acceptable in each case. The Trustees believe that it is important to develop and enhance the approach towards risk management, to ensure it remains fit for purpose. The group will formalise its risk management and create a risk register which will be reviewed on regular basis.

The Trustees have considered the potential impact of the coronavirus, and the various measures taken to contain it, on the operations of the Charity.

No immediate concerns in relation to the Charity’s long term future have been identified but this area continues to be monitored.

The Trustees are satisfied that the steps they have taken in the short term are appropriate and effective.

Future plans

In addition to the objectives outlined above, the group has additional objectives over the forthcoming 12 months period:

• to ensure the construction of the main phase of the Al-Qaeem project is successfully completed after slight delays due to the Covid pandemic.

• to identify other suitable investment opportunities for the charity.

• As restrictions have gradually been relaxed since the year end, the mosque has gradually increased its on-site programmes and activities subject to social distancing measures.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The charity is an unincorporated charity formed under a constitution under a deed dated 2 June 1977 as amended on 11 November 2012 and 6 September 2013. It has been registered with the Charity Commission under reference 273130. The charity also controls three companies. These companies are as follows:

• The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation – Investment holding company.

• 313 Project Ltd – Project Management for the Al-Qaeem project.

• 313 Trust Corporation Ltd – Investment holding company.

The Trustees who served during the year and up to the date of the approval of the financial statements were: Mr S Ebrahim

Mr A Walji Mr A Salehi

Mr N Virji

Recruitment of new trustees:

In accordance with the constitution, the Trustees are elected at the Biennial General Meeting of the Community and shall hold office for four (4) years. Trustees may not hold office for more than two (2) consecutive terms (eight (8) years).

Any potential new Trustee is already familiar with charities and when appointed as a new Trustee has a full induction to the business of MKSIC Peterborough and its assets.

The charity is managed by the management committee who are elected at the Biennial General Meeting.

The management of the community is undertaken by the Management Committee which comprises of 17 members who administer the charity.

Connected charities

The charity has a close relationship with The Council of European Jamaats (COEJ) which is member of The World Federation of Khoja Shia lthna-Asheri Muslim Communities, a UK registered charity , number 282303. MKSIC Peterborough collects funds on behalf of COEJ which is the European body that channels donations and contributions to worthwhile causes and calamities throughout Europe and on to the World Federation for international causes.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Appreciation

The charity relies heavily on services of volunteers. The Trustees wish to thank the Jamaat staff and all the volunteers for their unstinting hard work during the financial year and their on-going efforts in the daily administration of numerous areas of work we do.

The Trustees also wish to acknowledge the immense quantity of high quality work undertaken by staff, officers and volunteers in helping to achieve and deliver the charitable objectives of the charity, especially during the Covid-19 pandemic.

Statement of disclosure to auditor

• a) So far as each Trustee is aware, there is no relevant audit information (information needed by the auditors in connection with preparing their report) of which the company’s auditors are unaware; and

• b) Each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of all relevant audit information and to establish that the auditors are aware of that information.

The Trustees' report was approved by the Board of Trustees.

Mr N Virji

Trustee

Dated: 24 September 2021

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

Opinion

We have audited the financial statements of The Muslim Khoja Shia lthna-Asheri Community of Peterborough (the 'charity') and its group for the year ended 31 March 2021, which comprises the consolidated statement of financial activities, the consolidated statement of financial position, the statement of financial position, the consolidated statement of cash flows, and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Repofting Standard applicable in the UK and Republic of lreland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group's and charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• • have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (lSAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

ln auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. ln preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• we identified the laws and regulations applicable to the charity and the group through discussions with management and from our knowledge and experience of the sector and activities of the charity;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities (Accounts and Reports) Regulations 2008 and the Charities Act 2011;

• we assessed the extent of compliance with the laws and regulations identified through making enquiries of management and inspecting documentation; and

• we identified laws and regulations which were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the financial statements to material misstatements including obtaining an understanding of how fraud might occur by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

TO THE TRUSTEES OF THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

Auditor's responsibilities for the audit of the financial statements (continued)

To address the risk of fraud through management bias and override of controls we performed the following procedures:

• we performed analytical procedures to identify any unusual or unexpected relationships;

• we assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

• we investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to, agreeing financial statement disclosures to underlying supporting documentation and remaining alert for actual and potential litigation and claims during our other audit procedures. We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) 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.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this, or for the opinions we have formed.

Deitch Cooper LLP

24 September 2021

Statutory Auditor 2nd Floor Congress House Lyon Road Harrow Middlesex HA1 2EN

Deitch Cooper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted funds 2021 Notes £ Income from: Donations and legacies 4 82,830 Charitable activities 5 38,817 Investments 6 93,935 Total income 215,582 Expenditure on: Raising funds 7 21,869 Charitable activities 8 130,407 ` Total resources expended 152,276 Revaluation of investment properties 31,615 Net income resources before transfers 94,921 Gross transfers between funds 18 (14,091) Net incoming resources 80,830 Other recognised gains and losses Revaluation of tangible fixed assets - Net movement in funds 80,830 Fund balances at 1 April 2020 4,282,847 Fund balances at 31 March 2021 4,363,677	Restricted funds 2021 £ 648,135 37,666 - 685,801 2,000 227,440 229,440 - 456,361 14,091 470,452 - 470,452 2,808,007 3,278,459	Total Unrestricted funds 2021 2020 £ £ 730,965 112,751 76,483 10,749 93,935 89,844 901,383 213,344 23,869 15,185 357,847 147,256 381,716 162,441 31,615 586,835 551,282 637,738 - (5,827) 551,282 631,911 - 576,000 551,282 1,207,911 7,090,854 3,074,936 7,642,136 4,282,847	Restricted funds 2020 £ 499,862 75,006 - 574,868 800 276,311 277,111 - 297,757 5,827 303,584 - 303,584 2,504,423 2,808,007	Total 2020 £ 612,613 85,755 89,844
				788,212
				15,985
				423,567
				439,552
				586,835
				935,495 -
				935,495 576,000
				1,511,495 5,579,359
				7,090,854

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

2021 Notes £ £ Fixed assets Tangible assets 12 5,025,928 Investment properties 13 2,596,000 7,621,928 Current assets Debtors 14 45,001 Cash at bank and in hand 672,592 717,593 Creditors: amounts falling due within one year 16 (498,503) Net current assets 219,090 Total assets less current liabilities 7,841,018 Creditors: amounts falling due after more than one year 17 (198,882) Net assets 7,642,136 Funds Restricted funds 18.b 3,278,459 Unrestricted funds General unrestricted funds 18.c 3,004,259 Revaluation reserve 18.a 1,359,418 4,363,677 7,642,136 The accounts were approved by the Trustees on 24 September 2021. Mr N Virji Mr R Rahemtulla Trustee President

2020 £ £ 4,827,691 2,400,000 7,227,691 73,061 608,675 681,736 (597,522) 84,214 7,311,905 (221,051) 7,090,854 2,808,007 2,923,429 1,359,418 4,282,847 7,090,854

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CHARITY STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

	2021 Notes £ £ Fixed assets Tangible assets 12.a 5,114,274 Investment properties 13.a 165,000 5,279,274 Current assets Debtors 14.a 1,700,157 Cash at bank and in hand 628,933 2,329,090 Creditors: amounts falling due within one year 16.a (693,265) Net current assets 1,635,825 Total assets less current liabilities 6,915,099 Creditors: amounts falling due after more than one year 17.a (198,882) Net assets 6,716,217 Funds of the charity Restricted funds 3,293,164 Unrestricted funds General unrestricted funds 18.a 2,063,635 Revaluation reserve 1,359,418 3,423,053 6,716,217 The accounts were approved by the Trustees on 24 September 2021. Mr N Virji Mr R Rahemtulla Trustee President	2020 £ £ 4,900,012 170,000 5,070,012 1,603,331 469,106 2,072,437 (735,509) 1,336,928 6,406,940 (221,051) 6,185,889 2,817,126 2,009,345 1,359,418 3,368,763 6,185,889

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes Cash flows from operating activities Cash generated from operations 23 Investing activities Purchase of tangible fixed assets Purchase of investment property Investment income received Net cash used in investing activities Financing activities Repayment of loans Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Effect of foreign exchange rates Cash and cash equivalents at end of year	2021 £ £ 453,068 (287,416) (164,385) 93,935 (357,866) (20,811) (20,811) 74,391 608,675 (10,474) 672,592	2020 £ £ 513,806 (461,320) (333,165) 89,844 (704,641) (18,775) (18,775) (209,610) 812,003 6,282 608,675

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

The Muslim Khoja Shia Ithna-Asheri Community of Peterborough (“the charity”) is an unincorporated charity formed under a constitution under a deed. The principal place of business is 2-8 Burton Street, Peterborough, Cambridgeshire, PE1 5HD.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's constitution, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

1.2 Basis of consolidation

The consolidated financial statements include the results for the year, of the charity and all associated companies that the group controls and their net assets at the year-end date. Transactions between associated undertakings are eliminated on consolidation. Control is the power to govern the financial and operating policies of the associated company so as to obtain benefits from its activities.

The group financial statements include the financial statements of The Muslim Khoja Shia Ithna-Asheri Community of Peterborough, The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation, 313 Project Ltd and 313 Trust Corporation Ltd. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented.

1.3 Going concern

At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the levels of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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

1.5 Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants, including capital grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. If the terms of the grant impose conditions the grant is only recognised as income when the conditions are met. Grants received before the revenue recognition criteria are met are recognised as a liability.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

1.6 Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Raising funds comprise the costs associated with attracting voluntary income and for costs incurred for the investment properties.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Straight line over 50 years Fixtures, fittings & equipment 25% straight line Plant and equipment 25% straight line

1.8 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value as at the reporting end date. The net gain or loss on revaluation is recognised in net income/(expenditure) for the year.

1.9 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.

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Cash and cash equivalents

Cash at bank and in hand are basic financial assets and 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.

1.11 Financial instruments

Financial assets and financial liabilities are recognised in the statement of financial position when the charity becomes party to the contractual provisions of the instrument. Financial instruments are measured at amortised cost or fair value, which is normally transaction price.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

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.a Income Earned from other Activities

The following entities, all incorporated in England and Wales, form part of the group:

						Control	Control
	The Muslim Khoja Shia Ithna-Asheri Community			of Peterborough Trust		100 %	control of assets
	Corporation (company number	08382399)
	313 Project Ltd (company number		10122041)			100 %	control of assets
	313 Trust Corporation Ltd (company number 12319023)					100 %	control of assets
	(incorporated 18 November 2019)
		313 Trust Corporation			313 Project Ltd		The Muslim Khoja Shia
			Ltd				Ithna-Asheri		Community
							of Peterborough			Trust
							Corporation
			2021	2020	2021	2020		2021		2020
			£	£	£	£		£		£
	Income		-	-	300,728	493,087		-		-
	Expenditure		-	-	(300,792)	(493,410)		-		-
	Net gains on investments		30,000	16,835	-	-		6,615		500,000
	Net (Loss)/Gain		30,000	16,835	(64)	(323)		6,615		500,000
	The assets and liabilities of
	the subsidiary were:
	Assets		380,000	350,000	281,364	332,101		2,270,549	2,120,361
	Liabilities		(333,165)	(333,165)	(281,894)	(332,567)		(1,302,285)	(1,158,712)
	Capital and Reserves		46,835	16,835	(530)	(466)		968,264		961,649
`

• 15 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3.b Financial performance of the Charity

The Financial activities shown in the consolidated financial statements include those of the charity’s associates. A summary of the financial activities undertaken by the charity is set out below:

Income Expenditure on raising funds Expenditure on charitable activities Revaluation of investment properties Net income for the year Revaluation of tangible fixed assets Total movement in funds Total funds brought forward Total funds carried forward	2021 £ 911,692 (24,103) (352,261) (5,000) 530,328 - 530,328 6,185,889 6,716,217	2020 £ 808,601 (15,751) (422,651) 70,000
		440,199 576,000
		1,016,199 5,169,690
		6,185,889

4 Donations and legacies

82,830 648,135 Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 49,216 648,135 Covid-19 related grants 9,290 - Membership fees 24,324 - Donations and gifts Al-Qaeem donations - 539,064 Panjatanpak nyaz - 234 Senior citizens - - Third party collections - 108,837 Gift aid 31,791 - Jamaat funds (general) 7,951 - Majlis and nyaz 8,309 - Imam Zamin 877 - Chawda masumeen 288 - 49,216 648,135	730,965 112,751 499,962 Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 697,351 85,974 499,962 9,290 24,324 26,777 - 539,064 - 373,556 234 - 1,278 - - 350 108,837 - 124,678 31,791 50,615 - 7,951 24,418 - 8,309 7,022 - 877 889 - 288 3,030 - 697,351 85,974 499,862	Total 2020 £ 585,836 26,777
		612,613
		373,556 1,278 350 124,678 50,615 24,418 7,022 889 3,030
		585,836

Covid-19 related grants comprises amounts received directly from the government under the Coronavirus Job Retention Scheme. Amounts totalling £9,290 were received to compensate for wages costs already incurred by the group during the Covid-19 pandemic.

• 16 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The Charity benefits greatly from the involvement and support of many volunteers who assist with a wide range of activities. In accordance with FRS102 and the Charities SORP (FRS102) the economic contribution of general volunteers is not recognised in the financial statements

5 Charitable activities

Education Religious £ £ ELC - - Muharram and Hazrat Abbas - 38,817 Income from Madressa - - Pre-school grants 7,519 - Youth - 100 Income from pre-school 373 - Tabligh - 11,195 Income from burial scheme - - 7,892 50,112 Analysis by fund Unrestricted funds - 38,817 Restricted funds 7,892 11,295 7,892 50,112 For the year ended 31 March 2020 Unrestricted funds - 10,749 Restricted funds 46,351 3,136 46,351 13,885 Income from investments Rental income Interest receivable	Burial Madressa £ £ - - - - - - - - - - - - - - 18,479 - 18,479 - - - 18,479 - 18,479 - - - 20,612 4,907 20,612 4,907	Total 2021 £ - 38,817 - 7,519 100 373 11,195 18,479 76,483 38,817 37,666 76,483 2021 £ 93,935 - 93,935	Total 2020 £ 557 10,749 4,907 39,676 627 6,675 1,952 20,612
			85,755
			10,749 75,006
			85,755
			2020 £ 89,833 11
			89,844

6 Income from investments

• 17 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Raising funds

8	Charitable activities Education Religious £ £ Staff costs 21,515 10,330 Third party collections - 96,265 ELC - - Panjatanpak nyaz - 250 Senior citizen - - Tabligh - 25,256 Bank loan interest and charges - 6,399 Youth - 130 Alim and mulyani - 9,614 Preschool expenses 3,771 - Burial - - Madressa expenses - - Majlis and nyaz - 675 Muharram fund - 29,590 Events and functions - 2,125 25,286 180,634 Share of support costs (see note 9) 8,390 120,551 33,676 301,185 Unrestricted Restricted funds funds 2021 2021 £ £ Fundraising and publicity Seeking donations, grants and legacies - 2,000 Fundraising agents 12,849 - Other fundraising costs 9,020 - Fundraising and publicity 21,869 2,000 21,869 2,000		Burial Madressa £ £ - - - - - - - - - - - - - - - - - - - - 20,577 - - 2,409 - - - - - - 20,577 2,409 - - 20,577 2,409 Total Unrestricted funds 2021 2020 £ £ 2,000 - 12,849 10,140 9,020 5,045 23,869 15,185 23,869 15,185	Total 2021 £ 31,845 96,265 - 250 - 25,256 6,399 130 9,614 3,771 20,577 2,409 675 29,590 2,125 228,906 128,941 357,847 Restricted funds 2020 £ 800 - - 800 800	Total 2020 £ 800 10,140 5,045
					15,895
					15,895
					Total 2020 £ 70,433 133,609 - 1,702 2,471 5,758 8,717 652 2,860 4,544 8,402 3,794 5,264 13,357 12,267
					273,830 149,737
					423,567

• 18 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Charitable activities (continued)

Education Religious £ £ Analysis by fund Unrestricted funds 8,390 122,017 Restricted funds 25,286 179,168 33,676 301,185 For the year ended 31 March 2020 Unrestricted funds 11,134 136,122 Restricted funds 43,954 217,161 58,088 353,283 9 Support costs Support costs Total 2021 2021 £ £ Staff costs 13,012 13,012 Depreciation 84,837 84,837 Secretariat 40 40 Cleaning and waste 1,939 1,939 General expenses 489 489 Telephone and internet 1,359 1,359 Bank charges 2,153 2,153 Insurance 14,558 14,558 Foreign exchange (14,007) (14,007) Repairs 655 655 Light and heat 10,612 10,612 Rates and water 1,044 1,044 Audit fees 9,050 9,050 Legal and professional 2,400 2,400 Subscriptions 800 800 128,941 128,941 Analysed between Charitable activities 128,941 128,941		Burial Madressa Total 2021 Total 2020 £ £ £ £ - - 130,407 20,577 2,409 227,440 20,577 2,409 357,847 - - 147,256 8,402 3,794 276,311 8,402 3,794 423,567 Support costs Total Basis of allocation 2020 2020 £ £ 12,410 12,410Usage 70,165 70,165 Property usage 130 130Usage 5,874 5,874Usage 3,639 3,639Usage 2,293 2,293Usage 2,726 2,726Bank transactions 10,421 10,421Area 8,117 8,117Directly attributable 2,511 2,511Usage 14,588 14,588Area 1,950 1,950Area 8,650 8,650Directly attributable 5,463 5,463Directly attributable 800 800Directly attributable 149,737 149,737 149,737 149,737	Total 2020 £ 147,256 276,311
			423,567

10 Trustees

None of the Trustees (nor any persons connected with them) received any remuneration or benefits from the charity during the year (2020: £nil).

• 19 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11 Employees

Number of employees

The average monthly number of employees during the year was:

Nursery Resident Alim Caretaker Others Employment costs Wages and salaries Social security costs Oher pension costs	2021 Number 2 1 1 2 6 2021 £ 43,801 - 1,056 44,857	2020 Number 4 1 1 2
		8
		2020 £ 79,385 1,291 2,167
		82,843

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

12 Tangible fixed assets - The group

Tangible fixed assets - The group
Cost or valuation At 1 April 2020 Additions At 31 March 2021 Depreciation and impairment At 1 April 2020 Depreciation charged in the year At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020	Land and buildings Plant and equipment Fixtures, fittings & equipment £ £ £ 5,240,529 1,260 61,055 278,950 - 4,124 5,519,479 1,260 65,179 414,683 762 59,708 84,001 195 641 498,684 957 60,349 5,020,795 303 4,830 4,825,846 498 1,347	Total £ 5,302,844 283,074
		5,585,918
		475,153 84,837
		559,990
		5,025,928
		4,827,691

• 20 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12 Tangible fixed assets (continued)

Land and buildings includes revalued assets with a carrying amount of £1,979,340 (2020: £2,010,000). The most recent revaluation had an effective date of 31 March 2020 and was made by a professional valuer not connected to the charity.

At 31 March 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £447,584 (2020: £461,401).

12.a Tangible fixed assets - The charity

Cost or valuation At 1 April 2020 Additions At 31 March 2021 Depreciation and impairment At 1 April 2020 Depreciation charged in the year At 31 March 2021 Carrying amount At 31 March 2021 At 31 March 2020	Land and buildings £ 5,313,348 294,780 5,608,128 414,683 84,001 498,684 5,109,444 4,898,665	Fixtures, fittings & equipment £ 61,055 4,124 65,179 59,708 641 60,349 4,830 1,347	Total £ 5,374,403 298,904
			5,673,307
			474,391 84,642
			559,033
			5,114,274
			4,900,012

Land and buildings includes revalued assets with a carrying amount of £1,979,340 (2020: £2,010,000). The most recent revaluation had an effective date of 31 March 2020 and was made by a professional valuer not connected to the charity.

At 31 March 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £447,584 (2020: £461,401).

• 21 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13 Investment property - The group

Fair value At 1 April 2020 Additions Net gains and losses through fair value adjustments At 31 March 2021	2021 £ 2,400,000 164,385 31,615
	2,596,000

Investment property comprises freehold property held for rental and capital appreciation. The fair value of the investment property has been arrived at from reviewing market evidence from sources not connected with the charity. The valuation is by the Trustees on an open market value basis. The most recent professional valuation by an independent valuer had an effective date of 31 March 2020.

At 31 March 2021, had the investment property been carried at historic cost rather than on a fair value basis the carrying amount would have been £1,456,542 (2020: £1,292,157).

13.a Investment property - The charity

Fair value At 1 April 2020 Net gains and losses through fair value adjustments At 31 March 2021	2021 £ 170,000 (5,000)
	165,000

Investment property comprises freehold property held for rental and capital appreciation. The fair value of the investment property has been arrived at from reviewing market evidence from sources not connected with the charity. The valuation is by the Trustees on an open market value basis. The most recent professional valuation by an independent valuer had an effective date of 31 March 2020.

At 31 March 2021, had the investment property been carried at historic cost rather than on a fair value basis the carrying amount would have been £50,095 (2020: £50,095).

14 Debtors - The group

Amounts falling due within one year: Other debtors Prepayments and accrued income	2021 £ 42,574 2,427 45,001	2020 £ 66,710 6,351
		73,061

Other debtors includes £690 (2020: £690) stock of religious ornaments, £31,791 (2020: £50,615) of gift aid tax claims and VAT recoverable of £9,071 (2020: £15,405).

There were no amounts falling due after one year (2020: £nil).

• 22 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14.a Debtors - The charity

Amounts falling due within one year: Amounts due from fellow group undertakings Other debtors Prepayments and accrued income Amounts falling due after one year: Amounts due from fellow group undertakings Total debtors	2021 £ 250,000 32,481 1,775 284,256 1,415,901 1,700,157	2020 £ 250,000 98,126 3,689
		351,815
		1,251,516
		1,603,331

Other debtors due within one year includes £690 (2020: £690) stock of religious ornaments, £31,791 (2020: £50,615) of gift aid tax claims and payments on account to a fellow group undertaking of £nil (2020: £46,821).

15 Loans and overdrafts

Bank loans (secured) Payable within one year Payable after one year	2021 2020 £ £ 219,549 240,360 20,667 19,309 198,882 221,051

The long-term loans are secured by fixed charges over the investment properties held by The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation.

A market rate of interest is charged on the bank loans.

16 Creditors: amounts falling due within one year - The group

Notes Bank loans (secured) 15 Other taxation and social security Trade creditors Other creditors Accruals and deferred income	2021 £ 20,667 455 26,906 441,205 9,270 498,503	2020 £ 19,309 5,460 26,604 537,265 8,884
		597,522

Included within other creditors are private loans received from community members of £439,937 (2020: £535,918). These loans have no fixed term, are interest free and are repayable on demand.

• 23 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16.a Creditors: amounts falling due within one year - The charity

Borrowings Other taxation and social security Other creditors Accruals and deferred income	2021 £ 20,667 85 652,950 19,563 693,265	2020 £ 19,309 915 535,918 179,367
		735,509

Borrowings represents an obligation to a fellow group undertaking.

Included within other creditors are private loans received from community members of £439,937 (2020: £535,918) and amounts due to a fellow group undertaking totalling £213,013 (2020: £nil). These loans have no fixed term, are interest free and are repayable on demand.

17 Creditors: amounts falling due after more than one year - The group

Notes Bank loans (secured) 15 Creditors: amounts falling due after more than one year - The charity Borrowings	2021 2020 £ £ 198,882 221,051 2021 2020 £ £ 198.882 221,051

17.a Creditors: amounts falling due after more than one year - The charity

Borrowings

Borrowings represents an obligation to a fellow group undertaking.

18.a Unrestricted funds

Movement in funds Balance at 1 April 2020 Income Expenditure £ £ £ General fund 2,923,429 215,582 (152,276) 2,923,429 215,582 (152,276)	Transfer RevaluationBalance at 31 March 2021 £ £ £ (14,091) 31,615 3,004,259 (14,091) 31,615 3,004,259

The general fund comprises the “free reserves” after allowing for any other unrestricted funds.

• 24 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

18.b Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at 1 April 2020 £ Al-Qaeem 2,614,123 Burial 123,603 Panjatanpak nyaz 23,379 Pre-school 24,817 Senior citizens - Third party collections 14,072 ELC 557 Youth - Madressa 7,456 Tabligh - 2,808,007 Balance at 1 April 2019 £ Al-Qaeem 2,314,336 Burial 111,393 Panjatanpak nyaz 23,803 Pre-school 25,420 Senior citizens 125 Third party collections 23,003 ELC - Youth - Madressa 6,343 Tabligh - 2,504,423	Movement in funds Income Expenditure £ £ 539,064 (59,266) 18,479 (20,577) 234 (250) 7,892 (25,287) - - 108,837 (96,265) - - 100 (130) - (2,409) 11,195 (25,256) 685,801 (229,440) Movement in funds Income Expenditure £ £ 373,556 (73,769) 20,612 (8,402) 1,278 (1,702) 46,351 (46,954) 350 (2,471) 124,678 (133,609) 557 - 627 (652) 4,907 (3,794) 1,952 (5,758) 574,868 (277,111)	Transfers Balance at 31 March 2021 £ £ - 3,093,921 - 121,505 - 23,363 - 7,422 - - - 26,644 - 557 30 - - 5,047 14,061 - 14,091 3,278,459 Transfers Balance at 31 March 2020 £ £ - 2,614,123 - 123,603 - 23,379 - 24,817 1,996 - - 14,072 - 557 25 - - 7,456 3,806 - 5,827 2,808,007

• 25 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Description of funds

Al-Qaeem donations - donations specific for the building of the new community centre.

ELC - donations specific for the use of the English Lecture Committee.

Youth - donations given for the youths of the community to enable them to run their programs.

Madressa - funds given specifically for the use of the religious school.

Burial - relates to subscriptions given specifically for the use of future burial needs.

Panjatanpak nyaz - donations collected specifically for the provisions of feasts for the holy panjatans.

Pre-school - funds collected specifically for the use of the pre-school.

Senior citizens - specific donations for the use of the senior citizens.

Tabligh - specific donations for the propagation of the message of Islam.

Third party collections - religious collections specifically collected on behalf of The World Federation and The Council of European Jamaats.

Description of the transfers

The transfers were made from unrestricted funds to restricted funds to cover the deficit of the restricted funds within the objectives of the charity.

18.c Revaluation reserve

Balance at 1 April 2020 £ Freehold property 1,359,418 1,359,418	Movement in funds Income Expenditure Revaluation Gains £ £ £ - - - - - -	TransferBalance at 31 March 2021 £ £ - 1,359,418 - 1,359,418

Freehold property – gains and losses arising on revaluation of freehold land and buildings other than investment property.

• 26 -

DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

19 Analysis of net assets between funds

Unrestricted Restricted funds funds 2021 2021 £ £ Fund balances at 31 March 2021 are represented by: Tangible assets 1,984,170 3,041,758 Investment properties 2,596,000 - Current assets/(liabilities) (17,611) 236,701 Long term liabilities (198,882) - 4,363,677 3,278,459	Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 5,025,928 2,011,347 2,816,344 2,596,000 2,400,000 - 219,090 92,551 (8,337) (198,882) (221,051) - 7,642,136 4,282,847 2,808,007	Total 2020 £ 4,827,691 2,400,000 84,214 (221,051)
		7,090,854

20 Events after the reporting date

The Covid-19 coronavirus pandemic is still ongoing at the date of the approval of these financial statements and the overall future effects cannot be reliably estimated at this time based on all available information. In the opinion of the Trustees, the identified risks and disruption associated with the pandemic have been successfully mitigated to date and no future financial or operational concerns have been identified. The Trustees expect the potential financial impact of Covid-19 to be temporary and the group has sufficient resources and trading to continue its activities for the foreseeable future.

21 Related party transactions

Private loans from community members, within other creditors, include a loan received from Mr N Virji, a trustee, amounting to £nil (2020: £100,000). The loan is interest free and repayable on demand.

22 Connected parties

The charity, although independent, is involved with a wider network of charities. It is a member of The Council of European Jamaats (COEJ) which represents the charity at the global organisation, The World Federation of Khoja Shia Ithna-Asheri Muslim Communities (WF). Both charities are registered with the Charities Commission in the UK. WF represents Peterborough Jamaat when dealing with international work which includes disaster and general relief outside the UK. During the year, the amounts collected on their behalf were £108,837 (2020: £124,678) and payments of £96,265 (2020: £133,609) were made to them.

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DocuSign Envelope ID: 27DAFF4F-2350-499A-8428-36B9454599C8

THE MUSLIM KHOJA SHIA ITHNA-ASHERI COMMUNITY OF PETERBOROUGH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

23	Cash generated from operations			2021	2020
				£	£
	Surplus for the year			551,282	935,495
	Adjustments for:
	Investment income recognised in Statement of Financial	Activities		(93,935)	(89,844)
	Foreign exchange differences			(14,007)	8,117
	Fair value gains and losses on investment properties			(31,615)	(586,835)
	Depreciation and impairment of tangible fixed assets			84,837	70,165
	Movements in working capital:
	Decrease/(Increase) in debtors			30,107	(34,301)
	(Decrease)/increase in creditors			(73,601)	211,009
	Cash generated from operations			453,068	513,806
24	Analysis of changes in net funds
		At 1 April	Cash flows	Foreign	At 1 March
		2020		exchange	2021
				movements
		£	£	£	£
	Cash at bank and in hand	608,675	74,391	(10,474)	672,592
	Loans falling due within one year	(19,309)	(1,358)	-	(20,667)
	Loans falling due after more than one year	(221,051)	22,169	-	(198,882)
		368,315	95,202	(10,474)	453,043

25 Guarantee

Under the terms of a bank loan between Barclays Bank and The Muslim Khoja Shia Ithna-Asheri Community of Peterborough Trust Corporation, the group is required to provide a security of investment properties with a market value of at least £950,000.

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