# **MUSLIM KHATRI ASSOCIATION (UK)**
## **ANNUAL REPORT AND ACCOUNTS**
**FOR YEAR ENDED 31 MARCH 2022**
## **MUSLIM KHATRI ASSOCIATION (UK) ANNUAL REPORT AND ACCOUNTS CONTENTS**
||Page|
|---|---|
|Charity Information|1|
|Report of the Trustees|2 – 4|
|Independent Examiner’s Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Accounts|8 – 11|
## **MUSLIM KHATRI ASSOCIATION (UK) CHARITY INFORMATION**
**CHARITY TRUSTEES**
Razak Ghumran Mumtaz Suleman Rafi Ahmed Jussab Shahina Amin Shakil Amin Arif Cassam Nasim Karatela Naim Khamisa Shabnam Khatri Razak Suleman
Chair Vice Chair Treasurer Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member Committee Member
**HOLDING TRUSTEES** Abdullah Osman Ashra Gafar Khatri Yusuf Ghumra Zainulabedin Patel
**REGISTERED OFFICE**
Evington Road Leicester LE2 1QJ
**REGISTERED CHARITY** 299596 **NUMBER**
**INLAND REVENUE** XR 53238 **(CHARITIES) NUMBER**
**INDEPENDENT EXAMINER** Ian S McParlane 55a London Road Leicester LE2 0PE
**BANKERS**
Barclays PLC Highfields Branch P.O. Box 54 Town Hall Square Leicester LE1 9AA
**SOLICITORS**
Bond Adams LLP 94 London Road Leicester LE2 0QS
Page 1
**MUSLIM KHATRI ASSOCIATION (UK) REPORT OF THE TRUSTEES**
The Charity Trustees, who are the members Executive Committee of the Trust, present their annual report and accounts for the year ended 31[st] March 2022. The Charity Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities.
## **Governing document**
The Association is an unincorporated community organisation formed by adoption of the original constitution dated 4[th] May 1986 and is registered as a Charity with Charity Commission for England and Wales under charity number 299596.
## **Objects of the Association**
The principal objects of Muslim Khatri Association (UK) (MKA) are:
- To relieve poverty amongst members of MKA in any part of the world;
- To relieve members of the MKA within in the UK who are in conditions of need, hardship or distress;
- To advance the Islamic religion by the establishment and maintenance of centre; and
- To advance the education of MKA members in the United Kingdom.
## **Our Association Mission**
- To provide a warm, clean and friendly Centre which supports many community, educational and general activities.
- To improve the quality of life for local people.
- To achieve this we will work to the highest standard possible at any given time. We do work in partnership with other organisations, businesses and statutory councils to inform, advise and help others achieve a higher quality of life.
## **Our Association Vision**
To be the most inclusive and successful Community and Voluntary organisation in Leicester and beyond.
The Centre will continue to work towards working in partnership with other organisations to provide opportunities for the community to achieve and provide activities which improve the quality of life for their members
## **Our Association Values**
- Community Involvement is at the heart of our existence.
- We respect the community as the main decision makers.
- We take pride in making a difference.
- Accountability and Representation is our key strength.
- We are confident in delivering good value for services.
## **Charity Trustees**
The Executive Committee (and Honorary Officers) is elected by the members at the annual general meeting to serve for a year commencing the end of that meeting.
The Charity Trustees who served during the year are shown on page1.
## **Holding Trustees**
The Holding Trustees who served during the year are shown on page 1. Yahya Thadha resigned on 6 August 2021.
Page 2
## **MUSLIM KHATRI ASSOCIATION (UK) REPORT OF THE TRUSTEES**
## **(Continued)**
## **Governance and management**
The Association is governed by an Executive Committee, which is responsible to the membership for the effective management of the Association. The Executive Committee comprises a minimum of 3 Honorary Officers and may consist up to 15 members.
Meetings are held on a regular basis.
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 & Wales requires the trustees to prepare accounts 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 period. 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 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts Reports) Regulations 2015 and trust deed. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Review of Activities**
The statement of financial activities for the year is set out on page 6 of the accounts.
In accordance with government guidelines during Corona Virus Pandemic, our centre was closed during the whole of the accounting year.
## **Public Interest**
In planning activities, the trustees kept in mind the Charity Commissioner’s guidance on public benefit at the meetings.
## **The Building**
The buildings have been well maintained during the year to meet the needs of our user.
## **Volunteers**
On many occasions the Association involves volunteers in the delivery of its activities. We have a full range of policies and procedures operating to ensure this involvement is successful and beneficial to all parties.
Page 3
## **MUSLIM KHATRI ASSOCIATION (UK) REPORT OF THE TRUSTEES**
## **(Continued)**
## **Risk Management**
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of controls over key financial systems, will provide sufficient resources in the event of adverse conditions.
## **Reserves**
It is the policy of the Charity to maintain unrestricted funds at a level in excess of annual unrestricted management and administration expenditure. Unrestricted funds are maintained at least at this level throughout the year.
Approved by the Board of the Charity Trustees on **4 October 2022** and signed on their behalf:
**Razak Ghumran Honorary Chair**
Page 4
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF MUSLIM KHATRI ASSOCIATION (UK)**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 6 to 11.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Ian S McParlane**
## **Independent Examiner**
**4 October 2022**
Page 5
## **MUSLIM KHATRI ASSOCIATION (UK) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
## **SUMMARY INCOME AND EXPENDITURE ACCOUNT**
|**Unrestricted**
**funds**
**Note**
**£**
**Incoming resources**
Donations
-
Income from activities in furtherance of
charitable objects
4,720
Income from activities for generating
funds
-
Investment income
35,000
Government grants
8,525
Total incoming resources
48,245
**Resources expended**
Costs of activities in furtherance of
charitable objects
2
15,702
Management and administration
2
1,464
**Total resources expended**
17,166
**Net Income/(expenditure)**
31,079
**STATEMENT OF OTHER RECOGNISED GAINS**
**Unrestricted**
**funds**
**£**
**Net Income/(expenditure)**
31,079
**Total funds brought forward**
646,213
**Total funds carried forward**
677,292|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
**Restricted**
**funds**
**£**
-
-
-|**2022**
**Total**
**£**
-
4,720
-
35,000
8,525
48,245
15,702
1,464
17,166
31,079
**2022**
**Total**
**£**
31,079
646,213
677,292|**2021**
**Total**
**£**
130
961
-
35,000
25,239|
|---|---|---|---|
||||
61,330|
||||6,522
1,542|
||||8,064|
||||
53,266|
||||**2021**
**Total**
**£**
53,266
592,947|
||||
646,213|
The notes on pages 8 to 11 form part of these accounts.
Page 6
## **MUSLIM KHATRI ASSOCIATION (UK) BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**FIXED ASSETS**
Investment property
5
**CURRENT ASSETS**
Debtors
6
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
7
**NET CURRENT ASSETS**
**TOTAL** **ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**INCOME FUNDS**
Restricted funds
Unrestricted funds|**Unrestricted**
**funds**
**£**
540,592
540,592
1,984
134,716
136,700
-
136,700
677,292
677,292
-
677,292
677,292|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-|**2022**
**Total**
**£**
540,592
540,592
1,984
134,716
136,700
-
136,700
677,292
677,292
-
677,292
677,292|**2021**
**Total**
**£**
540,592|
|---|---|---|---|---|
|||||
540,592|
|||||
1,984
104,028|
|||||
106,012
(391)|
|||||105,621|
|||||646,213|
|||||
646,213|
|||||
-
646,213|
|||||
646,213|
Approved by the Board of the Charity Trustees on **4 October 2022** and signed on their behalf:
## **Rafi Ahmed Jussab Honorary Treasurer**
The notes on pages 8 to 11 form part of these accounts.
Page 7
## **MUSLIM KHATRI ASSOCIATION (UK) NOTES TO THE ACCOUNTS AS AT 31 MARCH 2022**
## **1. Summary of significant accounting policies**
## **General information and basis of preparation**
Muslim Khatri Association is an unincorporated organisation formed by adoption of the original constitution dated 4 May 1986 and is registered as a Charity with Charity Commission for England and Wales under charity number 299596. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are:
- To relieve poverty amongst members of MKA in any part of the world;
- To relieve members of the MKA within in the UK who are in conditions of need, hardship or distress;
- To advance the Islamic religion by the establishment and maintenance of centre; and
- To advance the education of MKA members in the United Kingdom.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared 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 issued in October 2019;
- the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);
- the Charities Act 2011; and
- UK Generally Accepted Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.
The financial statements are presented in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 8
## **MUSLIM KHATRI ASSOCIATION (UK) NOTES TO THE ACCOUNTS AS AT 31 MARCH 2022 (CONTINUED)**
## **Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.
## **Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Expenditure on charitable activities includes grants made and funds applied to provide direct assistance
- Other expenditure represents those items not falling into the categories above.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
## **Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Page 9
## **MUSLIM KHATRI ASSOCIATION (UK) NOTES TO THE ACCOUNTS AS AT 31 MARCH 2022 (CONTINUED)**
## **2. Analysis of resources expended**
|**Costs of activities in furtherance of charitable**
**objects**
Direct expenses
Running costs of the Community Hall
**Independent Examiners’ remuneration**
**Management and administration**
Subscription
Telephone and internet
**3.**
**Employees**
Gross wages and salaries
Employers’ National Insurance
Total staff costs
Average number of employees in the year
Activities in furtherance of charitable objects|**Unrestricte**
**d funds**
**£**
10,627
5,075
-
15,702
159
1,305
1,464|**Unrestricte**
**d funds**
**£**
10,627
5,075
-
15,702
159
1,305
1,464|**Restricted**
**funds**
**2022**
**£**
**£**
-
10,627
-
5,075
-
-
-
15,702
-
159
-
1,305
-
1,464
**2022**
**£**
-
-
-
**Number**
-
-
-|**Restricted**
**funds**
**2022**
**£**
**£**
-
10,627
-
5,075
-
-
-
15,702
-
159
-
1,305
-
1,464
**2022**
**£**
-
-
-
**Number**
-
-
-|**2021**
**£**
6,155
367
*
6,522
159
1,383
1,542
**2021**
**£**
-
-|
|---|---|---|---|---|---|
|||||||
||||||-|
||||||**Number**
-|
||||||-|
||||||-|
No employee received remuneration of more than £60,000.
Page 10
## **MUSLIM KHATRI ASSOCIATION (UK) NOTES TO THE ACCOUNTS AS AT 31 MARCH 2022 (CONTINUED)**
|**4.**
**Trustees and related parties**
**Trustee expenses and remuneration**
**2022**
Number of trustees who were paid expenses
None
Total amount paid
Nil
Trustees’ Remuneration
Nil
**Material interest of the trustees**
No other trustee had a material interest in any contracts during the year.
**5.**
**Investment property**
At 1 April 2021
At 31 March 2022
**6.**
**Debtors**
**2022**
**£**
Other Debtors
1,984
1,984
**7.**
**Creditors: amounts falling due within one year**
**2022**
**£**
Other creditors
-
-|**2021**
None
Nil
Nil
**2022**
**£**
540,592
540,592
**2021**
**£**
1,984
1,984
**2021**
**£**
391
391|
|---|---|
Page 11