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2021-12-31-accounts

Charity Registration No. 294807

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOMINEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

LEGAL AND ADMINISTRATIVE INFORMATION

_______________

Sole Trustee “The Dai al-Mutlaq”, a Corporation Sole enacted on 1st July, 1993 as Dawat-e-Hadiyah Act 1993 by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in the Parliament of the United Kingdom of Great Britain and Northern Ireland.

Today, the 53rd al-Dai al-Mutlaq, His Holiness Dr. Syedna Mufaddal
SaifuddinTUSis the Corporation Sole and in his capacity as the
Corporation Sole – the Sole Trustee of the Trust.
Nominees Mukasir-e-Dawat il-Haq, Dr. Syedi Qaidjoher bhaisaheb
EzzuddinDM
(Name as in passport Qaid Joher Ezzuddin)
Shahzada Idris bhaisaheb Badruddin
(Name as in passport Idris Badruddin)
Shahzada Qusai bhaisaheb Vajihuddin
(Name as in passport Qusai Vajihuddin)
Shahzada Ammar bhaisaheb Jamaluddin
(Name as in passport Ammar Mohammed Burhanuddin
Jamaluddin)
Shahzada Taha bhaisaheb Najmuddin
(Name as in passport Taha Mufaddal Saifuddin)
Shahzada Dr. Husain bhaisaheb Burhanuddin
(Name as in passport Husain Mufaddal Saifuddin)
Charity number 294807
Principal office 6 Mohammedi Park Complex
Rowdell Road
Northolt
Middlesex
UB5 6AG
Auditors Citroen Wells
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers
Barclays Bank Plc
Leicester
Leicestershire
LE87 2BB
Habib Bank AG Zurich
377 Station Road
Harrow
Middlesex
HA1 2AW

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

LEGAL AND ADMINISTRATIVE INFORMATION

_______________

Bankers (continued)

HSBC Bank Plc
25 Notting Hill Gate
London
W11 3JJ
National Australia Bank
799 Pacific Highway
Chatswood NSW 2067
Australia
United Overseas Bank Limited
80 Raffles Place
UOB Plaza 1
Singapore
048624
Solicitors B D B Pitmans LLP
One Bartholomew Close
London
EC1A 7BL
Collyer Bristow LLP
St. Martin’s Court
10 Paternoster Row
London
EC4M 7EJ

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

CONTENTS

____________

Page
Nominees’ Report 1 – 4
Statement of Nominees’ Responsibilities 5
Independent Auditor’s Report
6 – 8
Consolidated Statement of Financial Activities 9
Balance Sheets 10
Consolidated Cash Flow Statement 11
Notes to the Financial Statements
 12 – 28
Glossary 29

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOMINEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

____________

The Nominees present their report and the consolidated financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the Charity’s trust deed, 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) (effective from 1 January 2019).

Aims and objectives

The objects of the Trust are to carry out such charitable purposes for the relief of poverty and the advancement of education or religion or otherwise for the benefit of mankind anywhere in the world as the Dai al-Mutlaq shall from time to time determine. These include the advancement, safeguard and protection of the Islamic religion; the advancement of learning and education in their widest connotations; the relief of poverty and help to the poor and needy; the grant and aid of medical relief and the advancement of such other religious and charitable objects as the Dai al-Mutlaq shall determine.

The Trust aims to further these objects through the support of Anjumans, other charities, Dawoodi Bohra institutions and the community in general.

The Nominees confirm that they have paid due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the objects of the Trust for the year. The main activities undertaken to further the Trust’s purposes for the public benefit include the provision of grants and donations to other charities and for the education and relief of distress suffered by individuals in the community.

Grant making policy

The Trust’s grant making policy is to identify those charities, individuals and community projects in the UK and worldwide that meet the objects of the Trust stated above.

Qardan Hasana

Due to the tenets of the Dawoodi Bohra faith, interest can neither be received nor paid and as a result, the Trust provides interest free loans in order to directly further its charitable purposes. Qardan Hasana is currently only available to businesses and other charities.

Activities and performance

The Trust carries out a wide range of activities in pursuance of its charitable aims. The Nominees consider that these activities, noted below, provide benefit both to the Dawoodi Bohra community and the wider local community.

In order to achieve its objectives as stated above, the Trust has incurred expenses on various activities for the relief of distress and aid of the community, as detailed in note 7 of the accounts. These include Niyaz, Mawaed, Talimy Imdad, Tibby Imdad and Muvasat (see glossary on page 29). Additionally, the Trust financially supports Faiz-ul Mawaid al Burhaniyah, a movement for catering meals free of cost, once a day, to all members of the Dawoodi Bohra community initiated by the 52[nd] Dai al Mutlaq His Holiness Dr. Syedna Mohammed Burhanuddin[RA] and continued by his successor the 53[rd] Dai al Mutlaq His Holiness Dr. Syedna Mufaddal Saifuddin[TUS] .

1

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOMINEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 – (CONTINUED)

_______________

Property transactions

A Masjid according to the doctrines of Dawat-e-Hadiyah and the faith of the Dawoodi Bohras, cannot be valued in monetary terms and consequently each Masjid has, in the past, been stated in the balance sheet at a token figure. The figure being a sacred amount that correlates to the incumbent of the spiritual office of al-Dai al-Mutlaq during whose era these Masjids were built and dedicated. As per the Islamic faith, once the Masjid is Waqf (dedicated), it can neither be sold nor can it be gifted nor can it be inherited, hence it is priceless.

During the year, the carrying value of the Masjids have been reinstated to their original cost so as to ensure the Trust’s accounts are fully compliant with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102). As this is a change of the accounting policy adopted by the Trust, the comparative figures have also been restated accordingly as set out in note 24 on page 28. The increase in the carrying value of the Masjids because of this change in accounting policy is £24,982,956.

Anjuman-e-Saifee (Leicester), with the permission and approval of the 53[rd] Dai al-Mutlaq, His Holiness Dr. Syedna Mufaddal Saifuddin[TUS] , built a Masjid at 9 Bath Street, Leicester at a total cost of £3,749,729. On 11 September 2021, Anjuman-e-Saifee (Leicester) requested His Holiness to accept the edifice of the Masjid on behalf of the well wishers of the community. His Holiness accepted the edifice and then declared open the Masjid and dedicated it for the sake of Allah for His ibadat (worship). His Holiness graciously named this Masjid as Saifee Masjid. The title of the said Masjid was registered in the name of ‘The Dai al-Mutlaq’ the Sole Trustee of Dawat-e-Hadiyah Trust (United Kingdom) on 19 July 2022.

This Masjid is entrusted to Anjuman-e-Saifee (Leicester) to be managed by the said Anjuman under the supervision and control of Dawat-e-Hadiyah Trust (United Kingdom). They have been instructed to maintain the property to a high standard and meet all outgoings for this property and they have agreed to do the same.

During the year, the Trust also received gifts of other properties with an aggregate value of £1,150,000. (2020: £nil)

All properties are held for the beneficial interest of "The Dai al-Mutlaq", a Corporation Sole who is the sole Trustee of Dawat-e-Hadiyah Trust (United Kingdom).

Financial review

The consolidated statement of financial activities set out on page 9 of the financial statements shows the Group’s income and expenditure for the year ended 31 December 2021.

Total income amounted to £38,343,508, an increase of £29,643,802 on the previous year. This comprises mainly of voluntary donations and investment income, but also includes the value of the gifted properties. The increase is due to the gifted properties in the year and a one off donation from Dubai following the operations ceasing. No government grants were received during the year (2020: £99,526).

Total expenditure amounted to £5,469,425 (2020: £4,826,042), with £696,624 (2020: £910,607) defrayed in raising funds, £1,947,919 (2020: £1,036,560) on charitable activities, £1,139,373 (2020: £1,315,769) on grant funding and £1,685,509 (2020: £1,563,106) on support and governance costs. The increase is expenditure is largely due to increased costs incurred in relation to the arrival of the Dai al - Mutlaq.

After allowing for the net gains on investments of £3,964,190 (2020: £75,479) the Trust's net movement in funds for the year resulted in a surplus of £36,838,273 (2020: £3,949,143).

The balance sheets set out on page 10 shows the financial position of the Group and the Trust at 31 December 2021.

Total Group assets less liabilities amounted to £149,047,342 (2020: £112,209,069) which is represented by the accumulated balances on the unrestricted funds of £111,873,616 (2020: £78,785,072) and restricted funds of £37,173,726 (2020: £33,423,997).

2

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOMINEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 – (CONTINUED)

_______________

Reserves policy

It is the policy of the Trust to maintain unrestricted funds, which are free reserves of the Trust, at a level sufficient to provide for expenditure in future years without reliance on future voluntary income which cannot be guaranteed. In addition, funds are required to cover management and administration costs in order to continue the running of the Trust and also to provide for future capital projects required for the benefit of the community.

The balance held as unrestricted funds at the year-end was £111,873,616 of which £41,772,299 are regarded as free reserves, after allowing for funds tied up in tangible fixed assets and investment properties. The current level of reserves is therefore considered to be appropriate to meet the current and future commitments of the Trust.

Restricted funds comprise £37,173,726 which are represented by the value of various properties gifted to the Trust whose use has been restricted by the donor and also all the Masjids held by the Trust.

Risk management

Risk assessments are carried out in order to ascertain the likelihood of a risk event occurring, of its potential impact and whether any cost effective mitigating action may be taken.

The principal risks faced by the Trust are:

Whilst the Trust has sufficient funds to continue its grant making and other activities for the foreseeable future, the Nominees are continually reviewing the long term plans for the Trust.

Fund raising standards information

The Trust does not actively fundraise and does not hold any agreements with professional fundraisers or commercial participators. The costs of generating funds in the consolidated Statement of Financial Activities comprise solely of property rental costs.

Plans for the future

The policies and purposes of the Trust shall continue under the provisions of the Trust Deed and the Trust aims to continue to provide support to charities and the public at large.

Structure, governance and management

On 1 May 1986, the 52nd Dai al-Mutlaq, His Holiness Dr. Syedna Mohammed Burhanuddin[RA] executed the Deed of Confirmation and Trust of Dawat-e-Hadiyah Trust (United Kingdom). The said Deed of Confirmation and Trust was registered with the Charity Commission of England and Wales on 2 July 1986. The 52nd Dai al-Mutlaq, His Holiness Dr. Syedna Mohammed Burhanuddin[RA,] ,was then the Sole Trustee of the said Trust.

On 1 July 1993, an Act was incorporated by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons in Parliament, by the name of Dawat-e-Hadiyah Act 1993, incorporating the person who for the time being holds the office of the Dai al-Mutlaq as a Corporation Sole by the name of the Dai al-Mutlaq with perpetual succession. The 52[nd] Dai al-Mutlaq was thus appointed as a Corporation Sole.

In 1996, the said Corporation Sole by the name of the Dai al-Mutlaq was made the Sole Trustee of the Trust.

On the passing of the 52[nd] Dai al-Mutlaq on 17 January 2014, his son and successor Dr. Syedna Mufaddal Saifuddin[TUS] succeeded as the 53[rd] incumbent to the office of the Dai al-Mutlaq. Thus, the 53[rd] Dai al-Mutlaq, His Holiness Dr. Syedna Mufaddal Saifuddin[TUS] , is now the Corporation Sole enacted by the Dawat-e-Hadiyah Act 1993 and as such the Sole Trustee of the Trust.

3

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOMINEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 – (CONTINUED)

_______________

Structure, governance and management (continued)

The Nominees act on behalf of the Dai al-Mutlaq and exercise such powers and perform such functions as are assigned to them by the Dai al-Mutlaq for administering the affairs of the Trust. Hence, the nominees are considered the key management personnel of the Trust. As per the provisions of the Trust Deed, the Dai al-Mutlaq may at any time and from time to time at his sole discretion and pleasure appoint, remove and accept the resignation of a Nominee (delegate) or Nominees. In selecting new Nominees, the Dai al-Mutlaq ensures that they are respected members of the community with the knowledge and skills to act as Nominees. Nominees are expected to identify their training needs and to take measures to ensure that these needs are met.

The Nominees serving during the year and since the year end are detailed on the legal and administrative information page.

Related parties

The relationship between the Trust and other connected charities is disclosed in note 22 on page 27 of the accounts.

For and on behalf of the Nominees

Nominee – Qaidjoher Ezzuddin

Date: 29 January 2023

4

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

STATEMENT OF NOMINEES’ RESPONSIBILITIES

The Nominees are responsible for preparing the Nominees’ Report and the financial statements 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 Nominees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and the Group and of the incoming resources and application of resources of the Trust and the Group for that year.

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

The Nominees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

5

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

INDEPENDENT AUDITOR’S REPORT

TO THE NOMINEES OF DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

Opinion

We have audited the financial statements of Dawat-e-Hadiyah Trust (United Kingdom) (the ‘Trust’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Group and Trust Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 Group and Trust 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

In auditing the financial statements, we have concluded that the Nominees' 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 Group or Trust’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 Nominees 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 Nominees 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 on this regard.

6

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

INDEPENDENT AUDITORS’ REPORT (CONTINUED) TO THE NOMINEES OF DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

Matters on which we are required to report by exception

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

Responsibilities of Nominees

As explained more fully in the Statement of Nominees' Responsibilities, the Nominees 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 Nominees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Nominees are responsible for assessing the Group’s and Trust’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 Nominees either intend to liquidate or 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 151 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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 or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows:

7

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

INDEPENDENT AUDITORS’ REPORT (CONTINUED) TO THE NOMINEES OF DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

Use of our report

This report is made solely to the Trust’s Nominees, 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 Trust's Nominees 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 Trust and the Trust’s Nominees as a body, for our audit work, for this report, or for the opinions we have formed.

Citroen Wells Chartered Accountants Statutory Auditor

30 January 2023

Devonshire House 1 Devonshire Street London W1W 5DR

Citroen Wells is eligible for appointment as auditor of the Trust by virtue of its eligibility as auditor of a company under of section 1212 of the Companies Act 2006.

8

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Income from:
Donations
3
Investments
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net gains on investments
12
Net movement in funds
Fund balances brought forward
Fund balances carried forward		 Unrestricted
funds
£
33,596,560

997,219
-
34,593,779
696,624
4,772,801
5,469,425
3,964,190
33,088,544
78,785,072

111,873,616
 Restricted
funds
£
3,749,729
-
-
3,749,729
-
-
-
-
3,749,729
33,423,997
37,173,726		 Total
2021
£
37,346,289
997,219
-
38,343,508
696,624
4,772,801
5,469,425
3,964,190
36,838,273
112,209,069
149,047,342		 Total
2020
(as restated)
£
7,510,175
1,090,005
99,526
8,699,706
910,607
3,915,435
4,826,042
75,479
3,949,143
108,259,926
112,209,069

9

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

BALANCE SHEETS AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Qardan Hasana receivable:
Amounts falling due within one
year
15
Amounts falling due after
more than one year
15
Other debtors
16
Cash at bank and in hand
Metal, jewellery and other
assets
Creditors amounts falling due
within one year
17
Creditors amounts falling due
after one year
18
Net current assets
Total assets less liabilities
The funds of the Charity:
Restricted funds
19
Unrestricted income funds
Total funds
20		 Group
2021
£
53,514,477
53,760,566
107,275,043
3,758,525
1,264,855
798,105
37,108,752
18,072
42,948,309
(1,176,010)
-
41,772,299
149,047,342
37,173,726
111,873,616
149,047,342		 Group
2020
(as
restated)
£
49,064,712
49,260,036
98,324,748
1,094,589
2,805,152
1,550,422
9,743,403
18,072
15,211,638
(1,260,650)
(66,667)
13,884,321
112,209,069
33,423,997
78,785,072
112,209,069		 Trust
2021
£
53,509,868
53,263,267
106,773,135
3,758,525
1,264,855
781,503
36,860,007
18,072
42,682,962
(409,068)
-
42,273,894
149,047,029
37,173,726
111,873,303
149,047,029		 Trust
2020
(as
restated)
£
49,056,990
48,762,737
97,819,727
1,094,589
2,805,152
1,508,353
9,594,634
18,072
15,020,800
(512,967)
(66,667)
14,441,166
112,260,893
33,423,997
78,836,896
112,260,893

The financial statements were approved on behalf of the Dai al-Mutlaq by the Nominees on 29 January 2023 and signed on their behalf by:

Nominee- Qaidjoher Ezzuddin

10

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flow from operating activities
23
Cash flow from investing activities
Purchase of tangible fixed assets
Purchase/improvement of investment
properties
Rents received
Net cash used in investing activities
Change in cash and cash equivalents
in the year
Cash and cash equivalents brought
forward
Cash and cash equivalents at the end
of year		 2021
£
£
26,916,735
(12,265)
(536,340)
997,219
448,614
27,365,349
9,743,403
37,108,752		 2020
£
£
1,101,348
(299,827)
(3,712,545)
1,090,005
(2,922,367)
(1,821,019)
11,564,422
9,743,403		 2020
£
£
1,101,348
(299,827)
(3,712,545)
1,090,005
(2,922,367)
(1,821,019)
11,564,422
9,743,403
(1,821,019)
11,564,422
9,743,403

Analysis of changes in net debt

The Trust does not have any debt, as such the net debt position is equivalent to the cash at bank and in hand. Changes in the net debt position are equivalent to the movements as shown on the statement of cash flows.

The Group uses the exemption conferred by section 1.12 of FRS102 in not preparing a separate cash flow statement for the Trust as a separate entity.

11

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

Charity information

Dawat-e-Hadiyah Trust (United Kingdom) (‘the Trust’) is an unincorporated charity governed by a trust deed. The Trust is registered in England and Wales with The Charity Commission and its registered office is at 6 Mohammedi Park Complex, Rowdell Road, Northolt, Middlesex, UB5 6AG

The principal accounting policies adopted and judgements made in the preparation of these financial statements are as follows.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Trust’s deed, 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) (effective from 1 January 2019).

These financial statements consolidate the results of the Trust and its wholly owned subsidiaries on a line by line basis. Transactions and balances between the Trust and its subsidiaries have been eliminated from the consolidated financial statements.

The Trust meets the definition of a Public Benefit Entity as defined by FRS 102.

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

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

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts

1.2 Going concern

Given the Group’s financial position at the year end, the Nominees consider that the Group has sufficient resources to continue in operational existence for the foreseeable future and believe that there are no material uncertainties that call into doubt the ability of the Group to continue as a going concern. The Group therefore continues to adopt the going concern basis in preparation of these consolidated financial statements

1.3 Key judgements and sources of estimation uncertainty

In the application of the Group’s accounting policies, the Nominees 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.

Valuation of investment properties

Investment properties are measured using the fair value model and stated at their estimated fair values on the basis of the open market value as at the reporting end date as determined by the Nominees, but with reference to information obtained from third party experts. The Nominees consider the aggregate valuation at the year end to be materially accurate at £53,760,566 for the Group and £50,965,496 for the Trust.

12

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021– (CONTINUED)

1. Accounting policies (continued)

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Nominees in furtherance of the Trust’s charitable objectives.

Restricted funds comprise the following:

  1. The carrying value of various properties gifted to the Trust whose use has been restricted by the donor; and

  2. The carrying value of the Masjids held by the Trust.

1.5 Income recognition

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

1.6 Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. Unconditional grant offers are accrued once the recipient has been notified of the grant award.

Governance costs comprise all costs involving the public accountability of the Group and its compliance with regulations and good practice.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.7 Tangible fixed assets and depreciation

All assets costing more than £5,000 are capitalised and stated at cost less depreciation. All assets costing less than £5,000 are expensed. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where there is a permanent diminution in the value of any asset a charge is made to the Statement of Financial Activities.

Tangible fixed assets other than freehold land and buildings are depreciated to write off the cost or valuation less the estimated residual value by annual instalments over their expected useful lives

13

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

1. Accounting policies (continued)

1.7 Tangible fixed assets and depreciation - continued

All assets costing more than £5,000 are capitalised and stated at cost less depreciation. All assets costing less than £5,000 are expensed. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where there is a permanent diminution in the value of any asset a charge is made to the Statement of Financial Activities.

Tangible fixed assets other than freehold land and buildings are depreciated to write off the cost or valuation less the estimated residual value by annual instalments over their expected useful lives.

The following rates are used by the Group:-

Freehold and Long Leasehold properties Not depreciated Masjids Not depreciated Other buildings 10 years straight line Fixtures, fittings and equipment 4 – 8 years straight line Motor vehicles 4 years straight line

No depreciation is provided on the Trust’s freehold and long leasehold properties or Masjids. The Nominees are of the opinion that the residual value of the properties at the end of their useful life is expected to be in excess of the carrying value, given that the properties are maintained to a high standard. As a result, any depreciation to be provided is not material over the life of the asset and therefore has not been accounted for.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities for the year.

1.8

Investment properties

Investment properties which are properties held to earn rentals and/or capital appreciation, are measured using the fair value model and stated at their estimated fair values as at the reporting end date as determined by the Nominees, but with reference to information obtained from third party experts. The surplus or deficit on revaluation is recognised on the Statement of Financial Activities.

1.9 Cash at bank and in hand

Cash at bank and in hand represents cash held for working capital purposes and in interest free bank current accounts.

1.10 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the statement of financial activities for the period.

1.11 Qardan Hasana

Qardan Hasana balances (interest free loans) are initially recognised and measured at the amount received or paid with the carrying amount adjusted in subsequent years to reflect repayments and adjusted if necessary for any doubtful debts.

14

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

1. Accounting policies (continued)

1.12 Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.13 Government Grants

Income from government grants, is recognised when the charity has entitlement to the funds and any performance conditions attached to the grants have been met.

Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme results in cash payments from the government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on temporary leave of absence from working for the employer).

Small Business Grant Fund

The Small Business Grant Fund represents cash payments from local authorities to eligible businesses. These are government grants for which there are no future performance-related conditions.

1.14

Corporation tax

The Trust, as a registered charity, is potentially exempt from taxation in respect of its income and gains to the extent that such income or gains are applied exclusively to charitable purposes. The two subsidiaries are however subject to UK corporation tax on their profits, but where possible, donate any taxable profits to the Trust so as to avoid any tax charge arising.

2.

Change in accounting policy

A Masjid according to the doctrines of Dawat-e-Hadiyah and the faith of the Dawoodi Bohras, cannot be valued in monetary terms and consequently each Masjid has, in the past been stated in the balance sheet at a token figure. The figure being a sacred amount that correlates to the incumbent of the spiritual office of al-Dai al-Mutlaq during whose era these Masjids were built and dedicated. As per the Islamic faith, once the Masjid is Waqf (dedicated), it can neither be sold nor can it be gifted nor can it be inherited, hence it is priceless. During the year, the carrying value of the Masjids have been reinstated to their original cost so as to ensure the Trust’s accounts are fully compliant with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102). As this is a change of the accounting policy adopted by the Trust the comparative figures have also been restated accordingly as set out in note 24 on page 28.

15

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021- (CONTINUED)

3. Donations

These comprise:
Silah-Fitrah
Wajebaat including Zakat
Tabarruat
Taqarruban
Lagaat
Sanduq Khairiyah
Gifted properties
Investments
This comprises rental income as follows:
United Kingdom
Overseas		 2021
£

39,082
31,385,038
31,945
966,754
-
22,116
4,901,354
37,346,289
2021
£
989,503
7,716
997,219		 2020
£
47,720
6,898,843
30,510
511,481
220
21,401
-
7,510,175
2020
£
1,079,179
10,826
1,090,005

4. Investments

5. Government Grants

The Group did not receive any grants in 2021. In 2020, it received Coronavirus Job Retention Scheme grants of £74,526 and Small Business Grants of £25,000.

6. Raising funds

These comprise property rental costs as follows:

Repairs and maintenance
Management fees
Other property related expenses		 2021
£
416,081
166,063
114,480
696,624		 2020
£
593,809
187,073
129,725
910,607

16

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

7. Charitable activities
Grants
(note 8)
Other charitable
expenditure
£
£
Wazaef
-
347,020
Depreciation and impairment
-
227,768
Niyaz
-
13,488
Talimy Imdad
-
99,823
Enayat
793,565
-
Tibby Imdad
300,000
21,711
Madrasah
8,000
-
Manshurat
-
-
Muvasalat
-
151,602
Ashara Mubaraka
-
-
Rahaesh
-
252,369
Tashreef
-
19,066
Faiz-ul Mawaid al Burhaniyah
37,808
-
Mawaed
-
36,772
Muvasat
-
67,683
Taamir
-
493,190
Loss/(profit) on currency translation
-
217,427
1,139,373
1,947,919
Support costs (see note 9)
-
1,074,096
Governance costs (see note 9)
-
611,413
1,139,373
3,633,428
Analysis by fund:
Unrestricted funds
1,139,373
3,633,428
For the year ended 31 December 2020
Unrestricted funds
1,315,769
2,599,666		 Total
2021
£
347,020
227,768
13,488
99,823
793,565
321,711
8,000
-
151,602
-
252,369
19,066
37,808
36,772
67,683
493,190
217,427
3,087,292
1,074,096
611,413
4,772,801
4,772,801		 Total
2020
£
377,698
227,768
10,377
96,606
-
1,172,031
64,000
20
18,520
8,248
125,168
11,051
12,448
27,313
31,602
298,705
(129,226)
2,352,329
1,098,892
464,214
3,915,435
3,915,435

17

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

8. Grants

The grant funding of the activities comprised the following:

To UK registered charities towards their respective objects
To overseas charities and other institutions towards their respective
objects
To individuals
Grants to UK registered charities includes the following:
Anjuman-e-Saifee (Leicester)
Anjuman-e-Jamali (Bradford)
Al Jameah Al-Sayfiyah Trust
Anjuman-e-Ezzi (Nottingham)
Anjuman-e-Badri (Birmingham)
Anjuman-e-Hamidi (Manchester)
Anjuman-e-Hamidi (Milton Keynes)
Anjuman-e-Burhani (London)
Anjuman-e-Shehabi (East London)
Silver Star Diabetes
Other grants less than £1k
Grants to overseas charities and other institutions includes the
following:
Saifee Hospital Trust
Anjuman-e-Burhani (Ireland)
Anjuman-e-Saifee (New Zealand)
Anjuman-e-Burhani (Singapore)
Anjuman-e-Burhani (Sydney)
Anjuman-e-mohammedi (Perth)
Anjuman-e-Saifee (Melbourne)
COVID 19 healthcare fund - Sri Lanka
Other grants less than £1k		 2021
£
865,052
268,823
5,498
1,139,373
£
613,704
610
8,000
1,829
-
163,510
5,000
8,841
10,253
50,000
3,305
-
-
5,358
433
1,307
2,813
3,093
250,000
5,819		 2020
£
87,997
1,227,772
-
1,315,769
£
554
16,755
64,000
390
2,216
1,533
-
-
-
-
-
£
1,172,031
51,420
2,764
1,536
-
-
-
-
-

18

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

9. Support costs and governance costs

Staff costs
Depreciation
Printing, postage, stationery and telephone
Other overheads (heating, rates and service charges)
Bank charges
Motor expenses
Insurance
Legal and professional fees
Audit fees
Non-audit fees payable to the auditor
Corporation tax		 Support
costs
Governance
costs
£
£
615,030
-
207,784
-
109,267
-

109,656
-
1,622
-
4,625
-
17,150
-
-
552,983
-
30,000
-
28,430
8,962
-
1,074,096
611,413		 2021
£
615,030
207,784
109,267
109,656
1,622
4,625
17,150
552,983
30,000
28,430
8,962
1,685,509		 2020
£
639,574
207,184
100,012
145,871
620
3,181
2,450
384,116
30,000
50,098
-
1,563,106

10. Key management personnel

The Dai al-Mutlaq considers the Nominees to be the key management personnel of the Trust who have been appointed to manage, administer and conduct the day to day business and affairs of the Trust. None of the Nominees received any remuneration or reimbursement of expenses during the year.

11. Employees

Number of employees

The average monthly number of employees during the year was:

Amils and Moallims
Management and administration
Employment costs
Wazaef, wages and salaries
Social security costs
Pension contributions		 2021
Number
29
14
43
2021
£
916,374
76,778
1,847
994,999		 2020
Number
17
17
34
2020
£
915,169
85,082
5,287
1,005,538

19

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

11. Employees (Continued)

The number of employees whose remuneration for the year fell within the following bands were:

2021 2020
£60,000-£70,000 - 1
£90,000-£100,000 - 1

Defined contribution schemes

The Trust operates a defined pension scheme for all qualifying employees, where employees have not opted out.

The charge to the statement of financial activities in respect of defined contribution schemes for the year was £1,847 (2020: £5,287).

12. Net gains on investments

2021 2020
£ £
Unrealised gains on the revaluation of investment properties 3,964,190 75,479

20

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

13.
Tangible fixed assets
Group
Cost or valuation
At 1 January 2021
Additions
At 31 December
2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December
2021
Net book value
At 31 December 2021
At 31 December 2020		 Land and
buildings
£
26,083,264
1,151,066
27,234,330
2,802,960
227,768
3,030,728
24,203,602
23,280,304		 Masjids
(as restated)
£
24,983,269
3,749,729
28,732,998
-
-
-
28,732,998
24,983,269		 Fixtures,
fittings &
equipment
£
2,068,779
-
2,068,779
1,267,640
237,059
1,504,699
564,080
801,139		 Motor
vehicles
£
13,305
14,397
27,702
13,305
600
13,905
13,797
-		 Total
£
53,148,617
4,915,192
58,063,809
4,083,905
465,427
4,549,332
53,514,477
49,064,712

The carrying value of the Masjids at 1 January 2021 have been restated, as explained in note 24.

21

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

13. Tangible fixed assets (continued)

Trust
Cost or valuation
At 1 January 2021
Additions
At 31 December
2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December
2021
Net book value
At 31 December 2021
At 31 December 2020		 Land and
buildings
£
26,083,264
1,151,066
27,234,330
2,802,960
227,768
3,030,728
24,203,602
23,280,303		 Masjids
(as restated)
£
24,983,269
3,749,729
28,732,998
-
-
-
28,732,998
24,983,269		 Fixtures,
fittings &
equipment
£
2,053,214
-
2,053,214
1,259,797
233,946
1,493,743
559,471
793,417		 Motor
vehicles
£
13,305
14,397
27,702
13,305
600
13,905
13,797
-		 Total
£
53,133,052
4,915,192
58,048,244
4,076,062
462,314
4,538,376
53,509,868
49,056,990

The carrying value of the Masjids at 1 January 2021 have been restated, as explained in note 24.

Included in the accounts are properties that are being used for the advantage and benefit of the Dawoodi Bohra Jamaats (congregations) of London, Leicester, Manchester, Birmingham, Bradford, Nottingham, Croydon, Dublin, Hong Kong, Sydney, Melbourne and Toronto. For the better administration and management of these Jamaats, several charitable and religious organisations (Anjumans) have been established for each Jamaat. In furtherance of the objects of Dawat-e-Hadiyah Trust (United Kingdom), the Sole Trustee has entrusted certain properties to the said Anjumans for their administration, ervision and management to facilitate religious, social, charitable, educational and cultural activities of the respective Jamaats and, where pertinent, to receive rental income.

As the properties are entrusted to the Anjumans, any rents and other income derived from these properties and outgoings, utilities, rates and taxes in connection with these properties are not reflected in these accounts but are instead shown in the individual accounts of the respective Anjumans.

22

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

14. Investments

Group
Value at 1 January 2021
Additions
Revaluation
Value at 31 December 2021		 Investment
properties
£
49,260,036
536,340
3,964,190
53,760,566
Trust
Value at 1 January 2021
Additions
Revaluation
Value at 31 December 2021		 Investment
Properties
Investment in
subsidiaries
£
£
46,464,966
2,297,771
536,340
-
3,964,190
-
50,965,496
2,297,771		 Total
£
48,762,737
536,340
3,964,190
53,263,267

The investment properties are stated in the financial statements at the Nominees' estimate of the market value at the balance sheet date.

Investment properties include Weymouth House 84-94 Hallam Street, London, 92 Cambridge Street, London, Riverdene, Chorleywood Road, Rickmansworth, 15 Victoria Gardens, London and 6 & 7 The Lanchesters, London. These were professionally valued on the current market basis by Savills (UK) Limited on 31 March 2022 at £35,830,000 and the Nominees consider this to be a fair value as at 31 December 2021.

Subsidiary companies

The Trust owns the entire issued share capital of Rowdell Road Properties Limited (‘Rowdell’), a company registered in England and Wales (07358241). Rowdell is engaged in property investment.

A summary of the results of Rowdell is shown below:

2021)
£)
Revenue
151,700
Administrative expenses
(64,601)
Profit before taxation
87,099
Taxation
(8,962)
Profit for the financial year
78,137
The aggregate of the assets, liabilities and equity of Rowdell at the year-end was:
Assets
3,091,024
Liabilities
(792,944)
Equity
2,298,080		 2020)
£)
214,223
(66,399)
147,824
-
147,824
2,993,628
(747,685)
2,245,943

23

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

14. Investments (continued)

The Trust also owns the entire issued share capital of Glebe IP Private Limited (‘Glebe’), a company registered in England and Wales (11647356). Glebe is engaged in the management of intellectual property.

A summary of the results of Glebe is shown below:

Revenue
Administrative expenses
Profit before taxation
Taxation
Profit for the financial year		 2021)
£)
1,560
(1,560)
-
-
-		 2020)
£)
1,770
(1,770)
-
-
-

The aggregate of the assets, liabilities and equity of Glebe at the year-end was:

Assets
Liabilities
Equity		 2021)
£)
2
-
2		 2020)
£)
2
-
2

15. Qardan Hasana receivable

Group and Trust

Due from
third parties
Due from
connected
charities		 Due
within
one year
£
999,237
2,759,288
3,758,525		 2021
Due after
more than
one year
£
223,645
1,041,210
1,264,855		 Total
£
1,222,882
3,800,498
5,023,380		 Due within
one year
£
910,589
184,000
1,094,589		 2020
Due after
more than
one year
£
582,275
2,222,877
2,805,152		 Total
£
1,492,864
2,406,877
3,899,741

16. Other Debtors

Prepayments and accrued income
Other debtors
Amounts due from fellow group
undertakings		 Group
2021
2020
£
£
542,791
1,082,145
255,314
468,277
-
-
798,105
1,550,422		 Trust
2021
2020
£
£
541,619
1,085,544
213,884
422,809
26,000
-
781,503
1,508,353		 Trust
2021
2020
£
£
541,619
1,085,544
213,884
422,809
26,000
-
781,503
1,508,353
1,508,353

24

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

17. Creditors: amounts falling due within one year

Accruals and deferred income
Taxation and social security
Grant commitments (note 21)
Other creditors		 Group
2021
2020
£
£
176,068
249,076
36,353
21,837
75,000
173,333
888,589
816,404
1,176,010
1,260,650		 Trust
2021
2020
£
£
171,404
243,076
19,416
16,046
75,000
173,333
143,248
80,512
409,068
512,967		 Trust
2021
2020
£
£
171,404
243,076
19,416
16,046
75,000
173,333
143,248
80,512
409,068
512,967
512,967

18. Creditors: amounts falling due after one year

Group Trust
2021 2020 2021 2020
£ £ £ £
Grant commitments (note 21) - 66,667 - 66,667

19. Restricted funds

The funds of the Trust include restricted funds comprising the following unexpended balances of donations held on trust for specific purposes.

Masjids
Bonham House		 Balance as
at 1 January
2021
£
24,983,269
8,440,728
33,423,997		 Incoming
resources
£
3,749,729
-
3,749,729		 Resources
expended
Transfers
between funds
Balance as at
31 December
2021
£
£
£
-
-
28,732,998
-
-
8,440,728
-
-
37,173,726		 Resources
expended
Transfers
between funds
Balance as at
31 December
2021
£
£
£
-
-
28,732,998
-
-
8,440,728
-
-
37,173,726
37,173,726

Masjids – Masjids cannot be sold, gifted or inherited once constructed and therefore they are shown as restricted assets.

Bonham House – Certain flats situated at Bonham House, London have been donated exclusively for the use of His Holiness, the Dai al-Mutlaq, his family and entourage.

25

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

20.
Analysis of net assets between funds
Group
Unrestricted
funds
£
Fund balances at 31 December 2021 are represented by:
Tangible fixed assets
16,340,751

Investments
53,760,566
Current assets
42,948,309
Creditors: amounts falling due within one year
(1,176,010)
111,873,616

Trust
Unrestricted
funds
£
Fund balances at 31 December 2021 are represented by:
Tangible fixed assets
16,336,142
Investments
)
53,263,267
Current assets
)
42,682,962
Creditors: amounts falling due within one year
(409,068)
)
111,873,303
21.
Grants Commitments
Group and Trust
Grant commitments at 31 December 2021 are recognised as follows:
Grant commitments at 1 January 2021
Grants commitments paid during the year
Grant commitments at 31 December 2021
Due within one year
Due over one year		 Restricted
funds
Total
£
£
37,173,726
53,514,477
-
53,760,566
-
42,948,309
-
(1,176,010)
37,173,726
149,047,342
Restricted
funds
Total
£
£
37,173,726
53,509,868
-
53,263,267
-
42,682,962
-
(409,068)
37,173,726
149,047,029
Charitable
Commitments
£
240,000
(165,000)

75,000
75,000
-
75,000		 Total
£
53,514,477
53,760,566
42,948,309
(1,176,010)
149,047,342
Total
£
53,509,868
53,263,267
42,682,962
(409,068)
149,047,029

26

DAWAT-E-HADIYAH TRUST (UNITED KINGDOM)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

22. Related party transactions

By virtue of significant influence, the Trust is related to various connected charities. During the year, the following transactions took place with these related parties:

2021 2020
Grants and Grants and
donations donations
payable Debtors Creditors payable Debtors Creditors
£ £ £ £ £ £
Al Jameah Al Saifiyah Trust 8,000 1,052 - 64,000 - -
Anjuman e Saifee (New Zealand) 9,530 220,366 - 9,292 237,497 -
Anjuman-e-Badri (Birmingham) - 176,500 - 2,216 185,500 -
Anjuman-e-Burhani (London) 53,195 160,500 - 2,250 173,000 -
Anjuman-e-Hamidi (Manchester) 167,099 - - 9,394 160,000 -
Anjuman-e-Saifee (Leicester) 615,612 1,480,003 - 1,244 954,026 -
Anjuman-e-Saifee (Melbourne) 8,059 1,073,883 - - - -
Anjuman-e-Zainee (Croydon) 1,688 664,000 - 300 679,000 -
Saifee Hospital Trust - - - 1,172,031 - -
The Saifee Foundation of Europe - - - - 215 3,528
Husaini Masjid and Mohammedi Park Management Trust - 30,000 - - 30,000 -
Fayz-e-Husayni International Trust - 2,104 - - - -
Other connected parties 46,043 34,946 - 83,812 33,554 -

The Trust received donations and other income of £5,859,624 (2020: £497,292) from connected charities and other parties during the year.

A salary (Wazaef) of £10,200 (2020: £20,400) was paid to a son of one of the Nominees for services provided during the year.

Expenses of £71,033 (2020: £nil) were incurred in relation to the Dai al-Mutlaq and his entourage during the year.

Certain residential properties owned by the Trust are made available for use by the Dai al-Mutlaq, the Nominees and their respective families whilst they are in the UK fulfilling their duties on behalf of the Trust.

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DAWAT-E-HADIYAH TRUST (UNITED KINGDOM) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - (CONTINUED)

23. Reconciliation of net income / (expenditure) to net cash flow from operating activities

Surplus for the year
Adjustments for:
Rental income
Donated fixed assets
Gain on revaluation of investment properties
Depreciation of tangible fixed assets
Movements in working capital:
Increase in debtors
Decrease in creditors
Net cash provided by operating activities		 2021
£
36,838,273
(997,219)
(4,902,929)
(3,964,190)
465,427
(371,320)
(151,307)
26,916,735		 2020
£
3,949,143
(1,090,005)
-
(75,479)
464,827
(860,221)
(1,286,917)
1,101,348

24. Prior year adjustment

In previous years, the Nominees had decided to value the Masjids at an aggregate value £313. The figures previously used for the valuations were sacred figures as they correlated to the incumbent of the spiritual office of the Dai al-Mutlaq during whose era the Masjids were built and dedicated. However, this carrying value did not reflect the cost of the Masjids or their valuation in accordance with the requirements of the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102), and this led to a qualification being required in the auditor’s report.

The Nominees have therefore decided to reinstate the Masjids to their original cost or gifted value in order to comply with the Statement of Recommended Practice. Accordingly, the comparative figures have therefore been restated to reflect this change of accounting policy. A reconciliation of this reinstatement and the effect on the reserves is set out below.

As previously
reported at 31 As restated at
December 31 December
2020 Adjustment 2020
£ £ £
Changes to the statement of financial statements
Group
Fixed assets
Masjids cost brought forward 313 24,982,956 24,983,269
Funds
Restricted funds carried forward 8,441,041 24,982,956 33,423,997
Total funds carried forward 87,226,113 24,982,956 112,209,069
Trust
Fixed assets
Masjids cost brought forward 313 24,982,956 24,983,269
Funds
Restricted funds carried forward 8,441,041 24,982,956 33,423,997
Total funds carried forward 87,277,937 24,982,956 112,260,893

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DAWAT-E-HADIYAH TRUST (UNITED KINGDOM) GLOSSARY

Amil: Minister of religion deputed to various cities, towns and districts Anjuman: An administrative unit, established under the guidance and direction of al-Dai al-Mutlaq to organise and manage the affairs of the Dawoodi Bohra Jamaat of a particular area Ashara Mubaraka A period of 10 days at the start of the new year for the commemoration of the Martyrdom of Imam Husain (SA)

Darul Emarat: Amil’s residence Enayat: Grants Faiz-ul Mawaid al Burhaniyah: Free of charge food served to the community prepared and organized by the community kitchen Imdad-e-Ghurbatzadah: Relief of poverty Imdad-e-Taklifzadah: Relief in distress Jamaat: Local congregation Jamaatkhana: Banquet Hall Laagat: Prescribed contribution Madrasah: Religious school Manshurat: Publications Markaz: Community centre Masjid: Mosque Mawaed: Conventional meals served to the officers and staff Moallim: Religious teacher Mohammedi Park Complex: Husaini Masjid, Madrasah, Jamaatkhana, administrative offices and 22 residential houses situated at Mohammedi Park Complex, Rowdell Road, Northolt, Middlesex UB5 6AG Muvasalat: Transportation for Dawat’s personnel Muvasat: Charitable assistance Niyaz: Religious feasts Qardan Hasana: Interest free loan Rahaesh: Boarding facility / accommodation Rifah-e-Aam: General public utility Sadaqat-us-Syr: Alms given secretly Saheb-e-Dawat: Special emissaries of His Holiness sent on a special mission to various cities, towns, districts and countries Sanduq Khairiyah: Community Chest Silah-Fitrah: Prescribed religious offerings Taamir: Building, construction, restoration, repair and structural work Tabarruat: Offertory Talimy Imdad: Educational aid Taqarruban: Conventional contribution offered by the various organisations of Jamaats and individuals Tashreef: Blessed gift Tibby Imdad: Medical aid Wajebaat including Zakat: Obligatory religious offerings Wazaef: Emoluments paid to ministers of religion

29