CHARITY REGISTRATION NUMBER 1105086
COMPANY REGISTRATION NUMBER 04759091
SERVE AFGHANISTAN
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
SERVE AFGHANISTAN
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr M Larson
Mr P J Vander Meulen
Ms J M Collins
Dr. S Varughese
Mr M V R Wade
Ms J H Powell Thomas
Mr B W Clark
(Appointed 1 March 2025)
Secretary
Mr M Larson
Executive Director
Mr K Dhanabalan
Charity number
1105086
Company number
04759091
Principal address
PO Box 4015
Karte Char
Kabul
Afghanistan
Registered office
C/O UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
South Yorkshire
S8 0XF
Auditors
UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
SERVE AFGHANISTAN
LEGAL AND ADMINISTRATIVE INFORMATION (CONTINUED)
Bankers
HSBC
2 Queens Road
Aberdeen
AB15 4ZT
Azizi Bank
Zanbaq Square
Kabul City
Afghanistan
Ghazanfar Bank
Wazir Akbar Khan Road
Sherpur
10th District, 240000
Kabul
SERVE AFGHANISTAN
CONTENTS
Page
Trustees' report
1 - 10
Statement of trustees' responsibilities
11
Independent auditor's report
12 - 15
Statement of financial activities
16 - 17
Balance sheet
18
Statement of cash flows
19
Notes to the financial statements
20 - 43
SERVE AFGHANISTAN
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The trustees present their annual report and financial statements for the year ended 31 December 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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 1 January 2019)".

Legal and Charitable Status

Serve Afghanistan (“the charity”) is a company limited by guarantee (No. 4759091) and a registered English charity (No. 1105086), governed by its Memorandum and Articles of Association.

Objectives and activities

The charitable company's objects are:

a) To relieve poverty, suffering and distress among the sick, the aged, the homeless, the needy and displaced persons in any part of the world.

b) To promote and provide for the advancement of education and training.

The trustees h ave referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and planning our future activities. In particular, the trustees c onsider how planned activities will contribute to the aims and objectives of the charitable company. Serve Afghanistan works with poor and marginalised people in Afghanistan irrespective of their ethnic background, religion, gender or social standing.

The charitable company is dependant on the services of its expatriate staff to carry out its objectives. Most of the expatriates give their time without charge. It is not possible to quantify the value of this benefit to the charitable company. Out of pocket expenses are reimbursed to the staff and are shown under travelling expenses in the financial statements.

Achievements and performance

During the year, the charitable company carried out various activities in Afghanistan, in pursuit of the aims stated above.

The charitable company’s activities have been categorised according to five types:

HUMANITARIAN RESPONSE PROGRAMME (HRP)

Under these projects activities we submitted a proposal for Income Generation Programmes. These programmes were implemented through 4 projects across three regions, Central Region (Kabul), Eastern Region (Laghman) and Easter Region (Nangarhar) and Kandahar Region.

Across the three regions a total of 869 people and their families were assisted to start income generation programmes (IGP) such as carpentry, masonry, welding, animal husbandry, poultry, mini car mechanic workshop, electrical workshop, tailoring, painting, sewing, quilt making, car wash, fruit selling, running a petty shop, cobbler, knitting, water hand pump repairing and stonework.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

1. Achievement of Central Region Humanitarian Response

- 220 beneficiaries (159 male and 61 female) were provided grants for income generation tools. Small repair workshop of car/motorbike/ bicycle (5 male), Poultry (1 male) Metal work (1 male), mini shop (9 male), Tailoring (5 male and 3 female), goat rearing (3 male and 1 female), Ewe/Ram rearing (12 male 4 female), Heifer/male calf rearing (114 male and 53 female), Four-wheel cart with mini shop materials (1 male), Beverage selling in a Four-wheel cart (1 male), Selling bicycle parts (1 male), Shoe sewing (3 male), Selling footwear (1 male), Plumber (1 male), Selling clothes (1 male). This project has been implemented with the support from Tearfund Australia and CAM. People are getting an average of AFN 4,420 per month as a regular income through the Income Generation Programmes.

- 220 beneficiaries (159 male and 61 female) received business plan training. 188 beneficiaries who opted for livestock also received livestock training. Topics covered were better livestock management practices, diseases, local and preliminary treatment, and vaccination.

2. Achievement of Eastern Region Humanitarian response

a) Nangarhar-

- 198 (148 male and 50 female) beneficiaries were provided with income generation tools. tailoring for 16 (7 male, 9 female), barber shop (5 male), popcorn machine 15 (3 female, 12 male), Four wheels for fruit vending, vegetables vending 7 male, petty shop 27 (8 female 19 male), fast food stalls 9 male, carpentry 5 male, animal keeping (sheep) 46 (27 females, 19 male), petty grocery shop 35 (3 female, 32 male), cold drinks vending 5 male, metal works- 3 male, electrician 4 male, mobile repairing 7 male, Computer data 3 male, cosmetic 6 male, cobblers 5 male. 152 have started getting income ranging from AFN 6,000 to 7,000 per month. The livestock beneficiaries are yet to get income however; the animals are healthy and growing well. This project has been implemented with the support from Tearfund Australia, Tearfund UK and CAM.

- 3-days training was conducted for 198 beneficiaries to introduce them to market, market analyses, marketing, business ideas, how to start small business and business plans.

b) Laghman-

- 209 (181 male and 28 female) beneficiaries were provided with income generation tools. Petty shop 18 female, tailoring 12 male and 8 female, welding 4 male, carpentry 6 male, tyre puncture repair 2 male, mobile repair shop 3 male, kitchen crockery shop 5 male, sheep 5 male, cow 103 female, poultry 5 female, goat keeping 25 female, solar workshop 1 male, electronic shop 1 male, chips machine 1 male, popcorn machine 1 male, mini handed tractor 1 male, car mechanic 1 male, marble worker tool 1 male, fancy jewelry 1 male, well digging 1 male, painting machine 1 male, book shore 1 male, spare part shop 1 male, ari machine 1 male. This project has been implemented with the support from Tearfund Australia and Tearfund UK.

- 71 beneficiaries have started getting income ranging from AFN 3,000 to 7,500 per month. 146 people opted for animal husbandry, most of them have not started getting income but their livestock are healthy and doing well, they hope to generate income in the future.

- Under Animal Husbandry Programme - Health check-up was done for 2,000 livestock by the project vet, Nilzan (deworming campaign), ear tagging and vaccination was done for 1,000 livestock. Medicine was provided to 2,000 livestock. Supplements were distributed to 278 livestock (228 cows and 50 calves.)

3. Achievement of Kandahar Region Humanitarian response

- 242 (190 m ale and 52 f emale) beneficiaries were provided with income generation tools. Motorcycle mechanic (3 male), animal husbandry (148 male and 52 female), petty shop (19 male), tailoring (15 male), Book shop (1 male), Welding shop (1 male), omeopathic medicine shop (1 male), mobile phone spare parts shop (1 male) and carpet shop (1 male). This project has been implemented with the support from Tearfund Australia, Tearfund UK, GCR and FiF.

- The average income amount per month is AFN 6,750 [103 USD].

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

HEALTH PROGRAMME

Health projects have been implemented in 3 locations. They are in Alishang district in Laghman Province, Panjwayee in Kandahar Province and Kakor in Kabul Province.

1. SEHAT

Under the SEHAT project, the implementation was done in Laghman and Kandahar Province. These projects were funded by the GC Relief and Trust Bridge. The main focus of the project was to focus on pregnant and lactating mother and infants. Common illnesses treated were common cold, nose, ear and throat diseases, pneumonia, diarrheal diseases, malaria, gastric diseases, bone diseases, oral cavity diseases, HTN, anaemia, UTI, skin diseases and trauma.

- Alishang Project – A health clinic is functioning with 1 doctor, 1 male nurse, 1 female nurse, 1 Pharmacist cum logistic officer, 1 midwife, 1 vaccinator, 1 lab technician and other support staff are running the Qandali BHC clinic. 9,425 people received treatment from health Centre. 130 pregnant women consumed IFA tablets. 226 children are under the immunization programme which includes vaccines for BCG, Hep B, OPV, Penta, PCV, IPV, Measles and TT. 1275 women improved their health status through PSS counselling. 973 children received IMNCI (Integrated Management of Neonatal and Childhood Illness) services. 39,728 people were trained on water, sanitation and hygiene (WASH), communicable and water borne diseases. 22 deliveries were conducted in the clinic run by the project.

- Panjawayee Project – A health clinic is functioning with 1 doctor, 1 male nurse, 1 female nurse, 1 Pharmacist cum logistic officer, 1 midwife, 1 vaccinator, 1 lab technician and other support staff are running the Zala Khan BHC clinic. 7,111 people received treatment from the clinic. 200 pregnant women have received IFA during pregnancy. 200 children received immunization on BCG, HEBs, OPV, PENTA, PCV13, ROTA, IPV, and Measle Vaccines. 330 women improved their health status through PSS. 580 received IMNCI services. Health awareness programme were provided to 4,699 people. 24 deliveries were conducted in the clinic run by the project.

2. Kakor MCH project

This project is supported by Trust Bridge and MCC. Health Clinic was set up by the project, doctor and health professionals are running the clinic.

A health clinic is functioning with 1 doctor, 1 male nurse, 1 female nurse, 1 Pharmacist cum logistic officer, 1 midwife, 1 vaccinator, 1 lab technician and other support staff. 4 Health camps were conducted. 26,297 people received treatment from the clinic and camps. 676 pregnant women were covered by the project and received IFA during pregnancy. 1,573 children received immunization on BCG, HEBs, OPV, PENTA, PCV13, ROTA, IPV, and Measle Vaccines, 310 children completed all courses. 2,046 received IMNCI services. 4 deliveries were conducted in the Kakor clinic run by the project.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

EDUCATION PROGRAMME

Serve Afghanistan implemented Pashai Language Programme wherein the Minority (Pashai) children were provided preschool class and after school programme in Dara-i-Nur and Shewa (Kuz Kunar) district in Nangarhar Province. This project is supported by CEDAR Fund.

Under this project, total of 640 School-aged Pashai boys and girls affected by shocks or crises have access to quality, basic education in a safe learning environment in their own mother tongue to be equipped to do well in their studies. In the preschool programme there are 300 children (200 boys and 100 girls) in 15 classes. In the after-school programme, there are 340 children (220 boys and 120 girls) in 17 classes.

113 female, 133 male and total of 246 government teachers were trained by the Master trainers including Hi-5/Finger Math.

Pashai writing workshop was conducted and was attended by 51 female 67 male, a total of 118 people.

INCLUSIVE EDUCATION FOR CHILDREN WITH DISABILITIES

This project aims to empower and equip institutions and communities towards the integration of children with disability (mainly those with visual and hearing impairments) into mainstream life. Serve work with visually impaired (VI), hearing impaired (HI) and low vision children. The particular focus has become inclusive education. For sustainability, Serve Afghanistan works with Model Schools where the school and community take responsibility for the inclusion of children with disabilities in the education system. In 2025, 280 (ERIEP) + 413 (CRIEP) = 693 children with disabilitie s such as visually impaired, hearing impaired, low vision etc. were supported to continue their education in early intervention programme, preschool programme, inclusive education programme in government schools and universities. Two Projects were implemented in Eastern Region and Central Region.

1. Serve's Eastern Region Inclusive Education Project (ERIEP)

The project focuses mainly on hearing and visually impaired children (HI and VI) and seeks to influence the wider community in Nangarhar and Laghman Provinces regarding attitudes to children with disabilities (CwDs). The project works to improve the quality of life for children with disabilities by promoting rehabilitation, equal opportunities, integration and protection of the rights of persons with disabilities, leading to their full participation in educational, economic, social, political and cultural activities in their communities. This project is supported by KNH.

Achievements in 202 5 included:

- Educational Material Distribution: 145 hearing-impaired (HI) and 85 visually impaired (VI) students received educational materials to support their learning, easing the financial burden on their families.

- Early Education Support: Early intervention program conducted for 25 VI children (11 boys, 14 girls). Preschool education delivered to 35 VI children (19 boys, 16 girls).

- Preparatory and Home-Based Learning:60 HI children (39 boys, 21 girls) attended home-based preparation classes.

- Facilitation of School Attendance: 73 HI students (52 boys, 21 girls) supported in segregated classes (KG to Grade 3).

- Referral Support: Out of 50 PIs, 27 physically impaired children referred to other NGOs for rehabilitative assistance and assistive devices.

- Human Resource Deployment: 16 incentive teachers worked with HI students in KG, Grades 1 & 3. 12 incentive teachers provided instruction for 85 VI students. One interpreter supported inclusive classrooms for students with hearing impairments (HI). However, classes for female students above Grade 6 were suspended due to the absence of official government permission for girls’ education at that level.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

- Awareness-Raising Among Non-Disabled Students: 9,467 non-disabled students (6,273 male and 3,194 female) in 14 Gov. schools were reached through disability awareness sessions. Students learned basic Afghan Sign Language (AFSL) to communicate with HI classmates.

- Additional Activities Initiated: Individual and group consultation meetings with families of VI and HI students to gather feedback and improve family engagement. Provision of monthly incentives for VI and HI teachers and interpreters to ensure staff retention and motivation.

1. Central Region Inclusive Education Project (CRIEP)

The project aims to strengthen and empower people with disabilities towards full participation in every aspect of life – utilising rehabilitation, awareness, advocacy, education, as well as social support. This project is supported by KNH, Tearfund UK and for Braille materials by Linda Norgrove Trust.

Achievements in 202 5 included:

- 413 CwDs were supported with educational materials so that they can continue their education without putting pressure on their poverty-stricken parents. Young VI children were also provided preschool provision to prepare them for higher education in MoE schools. Total of CWDs supported are 138 visually impaired (91 male, 47 female), low vision 80 (48 male, 32 female), hearing impaired 135 (80 male, 55 female), physically impaired 30 (20 male, 10 female), to enrol/attend MoE schools. 30 university students (21 male, 9 female) to attend university.

- Home visit support for 9 female university students who cannot attend university anymore. Braille books were printed as planned and distributed to the students. The project has progressed quite well despite the restrictions imposed by the government. Children with disabilities were able to attend their school regularly and get education.

- Early Education Support: Preschool class conducted for 40 VI children (23 male and 17 female)

- 98 VIs (68 male and 30 female) are attending a Ministry of Education school.

- Support 30 university students. 21 male could attend their university, but 9 females had to study from home.

- Educational materials were developed and produced based on the government school and University curriculum. All Braille books with new and old curriculum were checked and verified. 152 low vision books printed, 230 new curriculum braille books printed. This helped the CwDs to have a timely access to study materials to continue their education.

- Teacher’s training has been conducted in 4 model schools, in 16 regular schools and for 16 old incentive teachers.

- Awareness raising programme conducted in 38 MoE and private schools for 22,350 non-disabled students during the morning assembly on issues of disability, how to communicate with them and how to create a conducive environment. This helped the create and conducive and supportive environment for the CwDs in schools.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -

EMERGENCY RELIEF PROGRAMME

During 2025, the charity undertook Emergency relief programme in different locations of the county in response to the effects of the Natural Disaster and deportation of Afghans from neighbouring countries. Total of 6 relief operations were carried out and 3975 families were covered though MPCA and in-kind Aid programme.

1. Afghanistan Earthquake Relief Programme- Phase 1

In Phase 1 Relief, 961 families were provided Multipurpose Cash Assistance in Nangarhar Province and Kunar Province. The cash amount was AFN 20,000 per family and AFN 24,000 for widows. The amount is in-line with the Minimum Expenditure Basket under Multi-Purpose Cash Assistance (April 2024) set by Afghanistan Cash and Voucher working group (CVWG). The programme was supported by MCC, KNH, IAM, Tearfund Australia, Tearfund UK and World Renew.

Male headed HHs | 756
Disabled Male HHs | 12
Female Disabled | 1
Widow Headed HHs | 124
Female headed HHs | 54
Orphan | 14
Total | 961

2. Afghanistan Earthquake Relief Programme- Phase 2 (Winterized Kit)

Serve was able to provide emergency winterized assistance to a total of 2,290 families affected by the earthquake in Kunar and Nangarhar Provinces. The relief items were distributed as per the need of the families. It took into account other relief materials supplied by other NGOs and so beneficiaries received some materials and not all items together. The Relief items included blankets (5 per family), Tarpaulins, Mats, Kitchen utensils, Hygiene kits, and cash (AFN 4,500 per family) for the warm clothes.

The distribution date and place were-

Location | Place of distribution | Date of distribution | No. of HH | Kits received
Kunar – Sawkai district | Chalas camp | 8-12-2025 | 161 | Blankets, Tarpaulin sheet, Cash
Kunar – Sawkai | Pawseray village | 8-12-2025 | 50 | Hygiene kits, Tarpaulin sheet, Mats, Kitchen utensils
Kunar | Sholat Camp | 14-12-2025 | 362 | Hygiene kits, Blankets, Kitchen Utensils
Kunar | Mama Gul camp | 15-12-2025 | 397 | Hygiene kits, Blankets, Kitchen Utensils
Nangarhar- Dari Noor | Omar Qala School | 17-12-2025 | 404 | Tarpaulin Sheet, Cash
Kunar | Sohail Tangi Camp | 21-12-2025 | 488 | Tarpaulin Sheet, Mats
Kunar | Shemash and | 24-12-2025 | 280 | Blankets, Tarpaulin sheet, Mats, Cash
Kunar | Damishgal camp | 24-12-2025 | 148 | Blankets and Cash
| Total Families supported | 2,290 |

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -

3. Earthquake Relief Programme, Laghman Province

The Relief was conducted in Alingar District of Laghman Province for 200 families on Multi-Purpose Cash Assistance (MPCA) and NFI. Each family was provided AFN 11,000 which they can use to meet their urgent needs. NFI was also provided which included hygiene kit, tarpaulin sheet, mat, blankets and Kitchen utensils. This Relief was supported by KNH for MPCA and IAM for NFI.

4. Herat forced returnees’ relief programme-

The relief programme covered 274 forced families in Herat Province. These families returned from Iran. They were provided MPCA of 10,000 Afghani per family. The Relief was funded by Tearfund Australia and KNH.

5. Laghman forced returnees’ relief programme-

The relief programme covered 125 families (1,000 individuals) in Mihterlam and Alishang district in Laghman Province. Each selected household received a one-time cash payment of 11,000 AFN (equivalent to $150), which was disbursed by the Headquarter finance officer on June 1, at Laghman Community Centre in the presence of government representatives. This Relief was funded by Tearfund Australia.

6. Nangarhar Forced Returnees Relief Programme-

The relief programme covered 270 families in Behsud district and Nine zones of the city, Nangarhar Province. Each selected household received a one-time cash payment of AFN 11,000 (equivalent to $150), which was disbursed on 2 nd June 2025, in the Zaiton Factory of Nangarhar. This Relief was funded by Tearfund UK.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
Financial review

The financial statements for the year are set out in pages 16 to 42. The Statement of Financial Activities on pages 16 and 17 reflects net outgoing resources of $6,960 (2024: $136,904).

The trustees review the charitable company’s reserves policy annually and regularly assess the adequacy of reserves against this policy.

The charitable company’s policy aims to achieve a balance between its operating working capital and a level of reserves to be able to cope with unexpected events. Such events may include crisis response, evacuation and repatriation of expatriate and local staff, unexpected gaps in donor funding, local disaster response or sudden loss of assets or premises. Due to the highly unpredictable nature of the operating environment in Afghanistan and a degree of uncertainty over income flows, it has been the charity's policy to maintain unrestricted funds (excluding asset funds), which have arisen from past operating results, of 6 months of unrestricted operating expenditure plus a fixed amount necessary to close the organisation in the event of an emergency.

At 31 December 2025 unrestricted funds amounted to $372,577 (2024: $317,308), (of which designated funds amounted to $106,027 (2024: $106,027)) and restricted funds were $101,631 (2024: $163,860), totalling $474,208 (2024: $481,168). This is below the target level of the Reserve Fund.

Restricted funds are subject to specific conditions imposed by donors.

The charity receives the majority of its funding in the form of grants from international relief and development charities. A breakdown of expenditure according to the categories of activity shown above is shown in the Statement of Financial Activities and accompanying notes.

The trustees have overall responsibility for the charitable company’s system of internal control. Such a system can provide only reasonable and not absolute assurance against errors or frauds. There is a clear delegation of the trustees’ authority through the Executive Director to the rest of the organisation.

The charitable company operates an annual planning and budgeting system with an annual budget approved by the Board of trustees. A financial reporting system compares results with the budget on a monthly basis.

A detailed register of the risks faced by the charitable company is maintained. This register identifies the major strategic and operational risks faced and how they are being managed. This register is reviewed annually by the trustees to reassess these risks and introduce procedures to address them as required.

The trustees are satisfied that systems are in place to monitor, manage and mitigate the charitable company's exposure to major risks. They consider that maintaining the charitable company's general reserves at the levels stated above and reviewing progress on addressing the charitable company's risk environment through the risk register will provide the charitable company with adequate risk assurance and sufficient resources in the event of adverse conditions. They also recognise that the nature of some of the charitable company's work requires active acceptance and management of some risks when undertaking activities to achieve its objectives.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
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Financial risk

The charitable company does not use complex financial instruments; it manages its activities using cash and cash equivalents and various items that arise directly from its operations.

The existence of these financial instruments exposes the charitable company to a number of financial risks which are described in more detail below. The main risks arising from the Trust's financial instruments are liquidity risk and cash flow interest rate risk.

Liquidity risk - the charitable company manages its cash and cash equivalent resources, including sufficient working capital, so that all its operating needs are met without the need for short-term borrowing.

Interest rate risk - the charitable company earns interest on cash and cash equivalent deposits.

Credit risk – this arises from the possibility that amounts owed to the charitable company will not be repaid. The charitable company does not undertake credit activities so it is only exposed to credit risk as it arises from normal business. Credit risk is managed through the use of approved banks and investment companies and the prompt collection of amounts due.

Future Plans

In 2023 Serve prepared a strategic plan for the period 2024 - 2026. Suggestions to strengthen the projects which are implemented and new geographical areas and sectors were identified. The areas of funding and personnel recruitment were also discussed as an agenda given the current situation in Afghanistan. The ongoing climate of insecurity and unpredictability has of course always to be taken into account.

Structure, governance and management

Serve Afghanistan is a company limited by guarantee and a charity registered in England and Wales. The charitable company operates from Taimani, Kabul, Afghanistan.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr P J Fitzgerald
(Resigned 21 May 2025)
Mr M Larson
Mr P J Vander Meulen
Ms J M Collins
Dr. S Varughese
Mr M V R Wade
Ms J H Powell Thomas
Mr B W Clark
(Appointed 1 March 2025)

Nominations for appointment of trustees come from within the trustee board. Appointments are approved by a majority of the other trustees. Usually, those appointed will have connections to the organisation and have had exposure to the charity’s work in Afghanistan.

There is an informal induction and training process for trustees.

SERVE AFGHANISTAN
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -

The trustees (listed above) are responsible for the overall direction of the charity. Responsibility for the day to day management of the Charity’s central administration is delegated to the Executive Director who is supported by two Directors and Finance Manager. During the year, the senior members of staff were the Executive Director and the Senior Management Team:

Kennedy Dhanabalan: Executive Director

Mohammad Saber Alimi: Director (Projects)

Ghulam Mujtaba Khan: Director (Operations)

Bakht Mohammad Momand: Manager (Finance)

Masood Mahzoon: Manager (Projects)

Abdul Hasib Abid: Manager (HR)

Remuneration of key management personnel is discussed at board meetings. Consideration is made of the pay required for expatriate staff to work in Afghanistan.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' r eport was approved by the Board of Trustees.

Mr M Larson
Trustee
Dated: 22 June 2026
SERVE AFGHANISTAN
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2025
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The trustees, who are also the directors of Serve Afghanistan for the purpose of company law, 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).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent; and

- 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 adequate 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 Companies Act 2006. 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.

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6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVE AFGHANISTAN

Opinion

We have audited the financial statements of Serve Afghanistan (the ‘charitable company’) for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 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:

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give a true and fair view of the state of the charitable company's affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.

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 charitable company 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 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 charitable company’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.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVE AFGHANISTAN CONTINUED

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, except to the extent otherwise explicitly stated in our report, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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the information given in the trustees' r eport for the financial year for which the financial statements are prepared, which includes the d irectors' r eport prepared for the purposes of company law, is consistent with the financial statements; and

-

the d irectors' r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors' r eport included within the trustees' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

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

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

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

-

the trustees were not entitled to prepare the financial statements in accordance with the companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

- 14 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVE AFGHANISTAN CONTINUED
Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, 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. In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

- 15 -
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVE AFGHANISTAN CONTINUED

Based on our understanding of the c harit y and the sector in which it operates, we identified the principal risks of non-compliance with laws and regulations related to the acts by the c harit y, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and the charity's net income for the year.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, including correspondence with the Charity Commission, review of correspondence with legal advisors, enquiries of management and review of internal audit reports in so far as they related to the financial statements, and in testing of journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Mealing (Senior Statutory Auditor)
for and on behalf of UHY Hacker Young
22 June 2026
Chartered Accountants
Statutory Auditor
SERVE AFGHANISTAN
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
Unrestricted
Unrestricted
Restricted
Total
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
2025
funds
funds
funds
2024
general
designated
general
designated
Notes
$
$
$
$
$
$
$
$
Income and endowments from:
Donations and legacies
3
148,167
-
2,331,097
2,479,264
34,932
-
1,683,240
1,718,172

Investment s

4
9,950
-
-
9,950
8,949
-
-
8,949
Other income
5
434
-
-
434
496
-
-
496
Total income
158,551
-
2,331,097
2,489,648
44,377
-
1,683,240
1,727,617
Expenditure on:
Charitable activities
6
150,806
-
2,361,810
2,512,616
292,842
-
1,533,543
1,826,385
Other
12
2,563
-
-
2,563
-
-
-
-
Total resources expended
153,369
-
2,361,810
2,515,179
292,842
-
1,533,543
1,826,385
Net gains/(losses) on investments
13
-
-
-
-
(2,541)
-
-
(2,541)
Net incoming/(outgoing) resources before transfers
5,182
-
(30,713)
(25,531)
(251,006)
-
149,697
(101,309)
SERVE AFGHANISTAN
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
Net incoming/(outgoing) resources before transfers
5,182
-
(30,713)
(25,531)
(251,006)
-
149,697
(101,309)
Gross transfers between funds
50,087
-
(50,087)
-
113,541
-
(113,541)
-
Net income/(expenditure) for the year/
Net incoming/(outgoing) resources
55,269
-
(80,800)
(25,531)
(137,465)
-
36,156
(101,309)
Other recognised gains and losses
Other gains or losses
15
-
-
18,571
18,571
-
-
(35,595)
(35,595)
Net movement in funds
55,269
-
(62,229)
(6,960)
(137,465)
-
561
(136,904)
Fund balances at 1 January 2025
211,281
106,027
163,860
481,168
348,746
106,027
163,299
618,072
Fund balances at 31 December 2025
266,550
106,027
101,631
474,208
211,281
106,027
163,860
481,168

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

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
SERVE AFGHANISTAN
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 18 -
2025
2024
Notes
$
$
$
$
Fixed assets
Tangible assets
16
12,749
22,514
Current assets
Debtors
17
42,016
42,184
Cash at bank and in hand
658,485
712,119
700,501
754,303
Creditors: amounts falling due within one year
18
(239,042)
(295,649)
Net current assets
461,459
458,654
Total assets less current liabilities
474,208
481,168
Income funds
Restricted funds
20
101,631
163,860
Unrestricted funds:
Designated funds
21
106,027
106,027
General funds
266,550
211,281
372,577
317,308
474,208
481,168
The financial statements were approved by the board of directors and authorised for issue on
22 June 2026
22 June 2026
and are signed on its behalf by:
Mr M Larson
Trustee
Company Registration No. 04759091
SERVE AFGHANISTAN
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
2025
2024
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
26
(76,746)
(51,576)
Investing activities
Purchase of tangible fixed assets
(5,409)
(11,069)
Loss on disposal of other investments
-
(2,541)
Investment income
9,950
8,949
Net cash generated from/(used in) investing activities
4,541
(4,661)
Net decrease in cash and cash equivalents
(72,205)
(56,237)
Cash and cash equivalents at beginning of year
712,119
803,951
Effect of foreign exchange rates
18,571
(35,595)
Cash and cash equivalents at end of year
658,485
712,119
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
1
Accounting policies
Charity information

The charity is a company limited by guarantee, incorporated in England and Wales and has no share capital. The liability of each member in the event of winding-up is limited to £5. At 31 December 2025, there were 7 members (2024: 7 members).

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in US Dollars ($). Monetary a mounts in these accounts are rounded to the nearest $.

The currency of the primary economic environment in which the organisation operates (its functional currency) is Afghanistan Afghani (AFN).

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for a period of at least 12 months from the date of the approval of these accounts.

In reaching that conclusion the trustees are confident that the charity has sufficient liquidity and unrestricted reserves to meet its debts as they fall due over that period. They have also considered the possibility of having to cease operations in Afghanistan and are confident that they have sufficient reserves for an orderly reduction in operations. The charity has a history of having Ministry of Economy approval to operate in Afghanistan and despite the political changes they have continued to receive approval from the Ministry of Public Health. The trustees also continue to have support from their funding partners, with funds of $1.8 million already being pledged for 2026. The trustees are confident that the charity can continue providing support through their work in community development and empowering of people with disabilities.

1.3
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.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 21 -
1.4
Income
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other grants and donations are recognised once the charitable company has been notified of the grant or donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

The charity is dependent on the services of its expatriate staff to carry out its objectives. Most of the expatriates give their time without charge and it is not possible to quantify the value of this benefit to the charity. Out-of-pocket expenses are reimbursed to the staff and are shown under travelling expenses in the financial statements.

Trading income represents income from evaluation services provided to other charities and the printing of Braille material.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Regional office support costs have been allocated to activities based upon annual budgeted expenditure and other support costs have been allocated to activities based upon actual expenditure.

1.6
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:

Computers, equipment and furniture
20% - 33.33% straight line
Motor vehicles
20% straight line

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.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 22 -
1.7
Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents 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.

Ethical investments are social investments made in support of development projects, which benefit disadvantaged and marginalised individuals.

1.9
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 23 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 24 -
1.10
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 charit y is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Foreign exchange

Transactions in currencies other than US Dollars 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 net income/(expenditure) for the period.

1.12

Employee savings fund

All Serve employees become part of the Serve savings scheme after working for one year. Under this scheme an amount is deducted monthly for each employee according to their grade on the Serve salary scale and the same amount is contributed by Serve towards a fund that is available to the employee for certain expenses. The Employee Savings Fund is kept in a separate account to the rest of Serve's funds. The fund is included in creditors.

2
Critical accounting estimates and judgements

In the application of the charitable company’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.

The trustees do not consider there to be any critical accounting judgements or estimates.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
funds
general
2025
2025
2025
2024
2024
2024
$
$
$
$
$
$
Donations and gifts
148,167
2,331,097
2,479,264
34,932
1,683,240
1,718,172
Donations and gifts
TEAR Australia
27,675
642,105
669,780
-
562,659
562,659
Kindernotlife
15,563
427,551
443,114
-
378,275
378,275
Tearfund UK
16,596
369,691
386,287
7,747
222,195
229,942
CAM
5,507
222,497
228,004
-
39,516
39,516
Cedar Fund
-
36,275
36,275
-
81,550
81,550
Linda Norgrove Foundation
-
7,686
7,686
-
6,237
6,237
FiF
307
5,237
5,544
-
-
-
GCR
14,178
234,378
248,556
-
315,978
315,978
Trust Bridge Global Foundation
-
-
-
-
66,830
66,830
Mennonite Central Committee
2,413
117,587
120,000
-
-
-
IAM
-
150,424
150,424
-
-
-
World Renew
-
80,000
80,000
-
-
-
Other small organisations and individuals
65,928
37,666
103,594
27,185
10,000
37,185
148,167
2,331,097
2,479,264
34,932
1,683,240
1,718,172
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 26 -
4

Investment s

2025
2024
$
$
Interest receivable
9,950
8,949

All investment income is unrestricted.

5
Other income
Unrestricted
Restricted
Total
Unrestricted
Total
funds
funds
funds
general
general
2025
2025
2025
2024
2024
$
$
$
$
$
Other income
434
-
434
496
496
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -
6
Charitable activities

Disability

Community Development

Relief Programmes

Total
2025

Disability

Community Development

Relief Programmes

Total
2024
$
$
$
$
$
$
$
$
Staff costs
-
690,228
37,526
727,754
223,896
506,437
6,788
737,121

Activities and materials

-
24,190
-
24,190
1,579
45,316
-
46,895

Staff training

-
1,465
-
1,465
-
-
-
-

Incentive workers

-
548
-
548
65,745
-
-
65,745

Travel expenses

-
70,036
35,035
105,071
2,088
60,523
5,245
67,856

Office supplies

-
31,830
1,134
32,964
2,712
31,676
779
35,167

Communications

-
31,609
467
32,076
5,047
14,647
84
19,778

Premises

-
70,243
-
70,243
13,582
37,404
-
50,986

Bank charges

3,379
26,868
12,180
42,427
7,497
23,529
3,687
34,713

Legal and professional fees

-
9,588
159
9,747
-
4,935
-
4,935

Disaster relief

-
-
764,927
764,927
-
-
154,804
154,804
3,379
956,605
851,428
1,811,412
322,146
724,467
171,387
1,218,000
Grant funding of activities (see note 8)
188,787
358,466
-
547,253
-
325,543
-
325,543
Share of support costs (see note 9)
114,807
3,145
-
117,952
250,697
-
-
250,697
Share of governance costs (see note 9)
35,999
-
-
35,999
32,145
-
-
32,145
342,972
1,318,216
851,428
2,512,616
604,988
1,050,010
171,387
1,826,385
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
6
Charitable activities
(Continued)
- 28 -
Analysis by fund
Unrestricted funds - general
150,806
-
-
150,806
282,842
10,000
-
292,842
Restricted funds
192,166
1,318,216
851,428
2,361,810
322,146
1,040,010
171,387
1,533,543
342,972
1,318,216
851,428
2,512,616
604,988
1,050,010
171,387
1,826,385
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
7

Description of charitable activities:

To mainstream people with disabilities, Serve, in partnership with others, aims to empower and equip institutions and communities towards the integration of people with disability (mainly blind, deaf, mentally challenged and physically disabled) into mainstream life.

Activities facilitate processes within local communities leading to their ability to develop and access local, provincial and national resources and to strengthen livelihood opportunities of vulnerable groups in the concentration areas where Serve is active.

The charity undertakes emergency relief programmes in different locations of the country in response to the effects of the conflict and crisis situation in Afghanistan. A total of 9 (2024: 5) relief operations were carried out, which helped 4,320 (2024: 830) displaced families.

8
Grants payable

Disability

Community Development

Total

Disability

Community Development

Relief Programmes

2025
2025
2025
2024
2024
2024
$
$
$
$
$
$
Sadaf Welfare & Technical Service Organiszation (SWTSO)
-
-
-
-
10,000
-
OPTIQ
-
45,567
45,567
-
-
-
WDIO
84,549
-
84,549
-
-
-
ANOD
104,238
-
104,238
-
-
-
188,787
45,567
234,354
-
10,000
-
Grants to individuals
-
312,899
312,899
-
315,543
-
188,787
358,466
547,253
-
325,543
-
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 30 -
9
Support costs
Support costs
Governance costs
2025
Support costs
Governance costs
2024
$
$
$
$
$
$
Staff costs
42,213
-
42,213
105,765
-
105,765
Depreciation
12,610
-
12,610
13,903
-
13,903

Other support costs

63,129
-
63,129
131,029
-
131,029
Audit fees
-
35,999
35,999
-
32,145
32,145
117,952
35,999
153,951
250,697
32,145
282,842
Analysed between
Charitable activities
117,952
35,999
153,951
250,697
32,145
282,842

Governance costs includes payments to the auditors of $35,999 (2024: $32,145) for audit fees.

10
Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 6 (2024: 4) of them were reimbursed or had expenditure paid on their behalf to third parties totalling $12,806 for travelling expenses (2024: $8,294). In the previous year, one of these trustees also received an advance payment of $1,859 for future expenses incurred in 2025.

11
Employees

The average monthly number of employees during the year was:

2025
2024
Number
Number
125
144
Employment costs
2025
2024
$
$
Wages and salaries
769,967
842,886

No remuneration was paid to any employee in excess of $80,799.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
Employees
(Continued)
- 31 -
Remuneration of key management personnel

The remuneration of key management personnel, is as follows.

2025
2024
$
$
Aggregate compensation
140,600
137,518
12
Other
2025
2024
$
$
Net loss on disposal of tangible fixed assets
2,563
-
2,563
-
13
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2025
2024
Gains/(losses) arising on:
$
$
Sale of investments
-
(2,541)
14
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15
Other gains or losses
2025
2024
$
$
Foreign exchange (loss)/gain
18,571
(35,595)

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
16
Tangible fixed assets
Computers, equipment and furniture
Motor vehicles
Total
$
$
$
Cost
At 1 January 2025
184,626
104,300
288,926
Additions
5,409
-
5,409
Disposals
(5,885)
(49,586)
(55,471)
At 31 December 2025
184,150
54,714
238,864
Depreciation and impairment
At 1 January 2025
162,232
104,181
266,413
Depreciation charged in the year
12,491
119
12,610
Eliminated in respect of disposals
(3,322)
(49,586)
(52,908)
At 31 December 2025
171,401
54,714
226,115
Carrying amount
At 31 December 2025
12,749
-
12,749
At 31 December 2024
22,395
119
22,514
17
Debtors
2025
2024
Amounts falling due within one year:
$
$
Trade debtors
20,708
8,510
Other debtors
8,796
12,687
Prepayments and accrued income
12,512
20,987
42,016
42,184
18
Creditors: amounts falling due within one year
2025
2024
Notes
$
$
Deferred income
24,813
120,407
Trade creditors
289
-
Other creditors
179,964
144,566
Accruals
33,976
30,676
239,042
295,649
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 33 -
19
Deferred income
2025
2024
$
$
Deferred income is included within:
Creditors due within one year
24,813
120,407
Deferred income at 1 January 2025
120,407
142,940
Released from previous years
(120,407)
(142,940)
Amounts deferred in the year
24,813
120,407
Deferred income at 31 December 2025
24,813
120,407
Deferred income in the year relates to funding from individuals received in advance of 2026 projects.
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 34 -
20
Restricted funds

The restricted funds of the charity compri se the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be use d.

Movement in funds
Movement in funds
Balance at
1 January 2024
Incoming resources
Resources expended
Transfers

Gains and losse s

Balance at
1 January 2025
Incoming resources
Resources expended
Transfers

Gains and losse s

Balance at
31 December 2025
$
$
$
$
$
$
$
$
$
$
$
11- KHC
50,489
66,830
(71,033)
(8,065)
(1,773)
36,448
42,587
(70,557)
(3,270)
1,147
6,355
12- CRHR
-
188,792
(205,466)
21,566
(4,892)
-
211,173
(209,291)
(290)
3,173
4,765
20- AHC
-
136,817
(122,707)
(7,353)
(2,915)
3,842
103,797
(105,510)
-
1,565
3,694
21- ERHR-N
-
216,154
(196,283)
(15,133)
(4,738)
-
200,431
(191,843)
(2,735)
1,660
7,513
22 ERCDP
21,448
46,462
(37,294)
(4,365)
(950)
25,301
-
-
(25,301)
-
-
23- ERHR-L
-
169,976
(155,362)
(10,888)
(3,726)
-
196,501
(190,540)
(1,064)
2,506
7,403
25- CRIEP
-
-
-
-
-
-
88,960
(100,467)
56,288
1,098
45,879
26- ERIEP
-
-
-
-
-
-
58,125
(86,661)
26,884
1,652
-
27- PLP
-
-
-
-
-
-
10,000
(17,575)
7,336
239
-
32- CRDP
50,651
186,389
(141,654)
(35,663)
(3,437)
56,286
-
-
(56,286)
-
-
36- ERDP
-
153,881
(112,140)
(12,073)
(2,784)
26,884
-
-
(26,884)
-
-
41- ANOD
-
-
-
-
-
-
108,277
(106,179)
-
72
2,170
42- WDIO
-
-
-
-
-
-
86,784
(85,988)
-
(758)
38
43- OPTIQ
-
-
-
-
-
-
27,667
(46,441)
17,965
838
29
55- PHC
-
117,163
(104,783)
(6,371)
(2,491)
3,518
97,448
(97,422)
(557)
1,426
4,413
56- KRHR
-
185,654
(184,375)
3,105
(4,384)
-
200,415
(201,912)
(653)
4,277
2,127
57- KDP
9,309
26,511
(31,059)
(3,992)
(769)
-
-
-
-
-
-
GCR 2000 poor families
25,209
-
-
(25,209)
-
-
-
-
-
-
-
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Restricted funds
(Continued)
- 35 -
61- KNH JLB
-
38,096
(30,313)
(1,377)
(470)
5,936
-
-
(5,936)
-
-
62- KNH LGH
-
38,096
(33,802)
(1,377)
340
3,257
-
-
(3,257)
-
-
65- ER Earthquake Relief 809F
-
-
-
-
-
-
357,930
(331,065)
(16,429)
2,767
13,203
67- Herat relief 465f
6,193
-
-
(3,805)
-
2,388
-
-
(2,388)
-
-
68- ER Earthquake Relief 200 kits
-
-
-
-
-
-
50,424
(48,608)
(2,182)
366
-
71- Baghlan 526
-
93,844
(89,485)
(2,156)
(2,203)
-
-
-
-
-
-
72- Baghlan 104
-
18,575
(17,787)
(385)
(403)
-
-
-
-
-
-
73- NGR Relief Forced Returnees 270F
-
-
-
-
-
-
51,699
(49,292)
(2,173)
2,856
3,090
74- LGH Relief Forced Returnees 125F
-
-
-
-
-
-
22,481
(22,761)
(1,049)
1,329
-
75- ER Earthquake Relief 200F Cash
-
-
-
-
-
-
40,925
(38,574)
(1,737)
338
952
76- Kunar Earthquake Relief 237F
-
-
-
-
-
-
83,346
(76,656)
(3,885)
(2,805)
-
77- Kunar Earthquake Relief 565F
-
-
-
-
-
-
197,436
(184,662)
(9,209)
(3,565)
-
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Restricted funds
(Continued)
- 36 -
78- Dari-e-Noor Earthquake Relief 159F
-
-
-
-
-
-
56,275
(52,795)
(2,575)
(905)
-
79- Herat Forced Returnees 274F
-
-
-
-
-
-
38,416
(47,011)
9,300
(705)
-
163,299
1,683,240
(1,533,543)
(113,541)
(35,595)
163,860
2,331,097
(2,361,810)
(50,087)
18,571
101,631
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Restricted funds
(Continued)
- 37 -

Kakor Health Clinic (11- KHC) - This project will provide and assist the people to access medical care and increase their knowledge on preventive and health care as the sanctions have affected them to access health care facilities. The project will specifically focus on mother and child health care and nutrition.

Central Region Humanitarian Response Project (12- CRHR) - to bring sustainable livelihood improvement for vulnerable people of Guldara district of Afghanistan.

Alishang Health Clinic (20- AHC) -This project will provide and assist the people to access medical care and increase their knowledge on preventive and health care as the sanctions have affected them to access health care facilities. The project will specifically focus on mother and child health care and nutrition.

Eastern Region Humanitarian Response- Nangarhar Project (21- ERHR-N) - to empower vulnerable families in the target communities in the Eastern Region (Nangarhar) and to improve their livelihood through improved adult literacy and development of animal husbandry.

Eastern Region Community Disability Programme (22- ERCDP) - This programme works to enhance the capacity of Pashai minority community children with mother tongue literacy and bridge them with the stat language and to excel in their studies.

Eastern Region Humanitarian Response- Laghman Project (23- ERHR-L) - to empower vulnerable families in the target communities in the Eastern Region (Laghman) and to improve their livelihood through improved adult literacy and development of animal husbandry.

Central Region Inclusive Education Programme (25- CRIEP) (formerly CRDP) - to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life by building capacities of the partner ANOD.

Eastern Region Inclusive Education Programme (26- ERIEP) (formerly ERDP) - to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life by building capacities of the partner WDIO.

Pashai Language Programme (27- PLP) (formerly ERCDP)- This programme works to enhance the capacity of Pashai minority community children with mother tongue literacy and bridge them with the state language and to excel in their studies by building capacities of the partner OPTIQ.

Serve's Central Region Disability Project (32- CRDP) (formerly Enabling and Mobilizing Afghans with Disabilities Project (EMAD)) - to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life.

Serve's Eastern Region Disability Project (36- ERDP) (formerly Serve's Hearing-Impaired Project (SHIP)) - to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Restricted funds
(Continued)
- 38 -

Afghan National Organisation for the Deaf (41- ANOD) - is a project which Serve Afghanistan is working with partner organisation ANOD to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life in Central Region.

Watan Development & Initiative organisation (42- WDIO) is a project which Serve Afghanistan is working with partner organisation WDIO to empower Afghan communities towards the integration of children with disabilities through education in all aspects of life in the Eastern Region.

Organisation Promoting Transparency, Integrity and Quality (43- OPTIQ)- is a project which Serve Afghanistan is working with partner organisation OPTIQ to enhance the capacity of Pashai minority community children with mother tongue literacy and bridge them with the state language and to excel in their studies.

Panjwayee Health Clinic (55- PHC) - This project will provide and assist the people to access medical care and increase their knowledge on preventive and health care as the sanctions have affected them to access health care facilities. The project will specifically focus on mother and child health care and nutrition.

Kandahar Community Development Project (56- KRHR) - to bring sustainable livelihood improvement for vulnerable people of Kandahar in Afghanistan.

Kandahar Disability Programme (57- KDP) - This programme works to provide inclusive education for blind and deaf children in government schools. The programme aims to support children suffering these disabilities throughout their school lives and ensure they do not have any barriers or discrimination to their education.

LGM, NGR Relief for Forced Returnees 200 families (61/62- KNH) - Total of 200 families benefitted from the project. 100 Forced Returnees families in Jalalabad City in Nangarhar Province on 31 January 2024, 100 families in Mehtarlam City and Alishang district in Laghman Province on 31 January 2024, received cash.

Eastern Region Earthquake Relief (65- ER Earthquake Relief 809F)- Total of 2290 families affected by the earthquake benefitted from the project in Kunar and Nangarhar Provinces. The affected families received as per their need some of the materials from the following; blankets, plastic tarpaulin sheets, hygiene kits, mats, kitchen utensils and cash for clothes on December 8, 14, 15, 17, 21, 24 of 2025.

Eastern Region Earthquake Relief (Laghman) (68- ER Earthquake Relief 200 kits) (IAM)- Total of 200 families affected by the earthquake benefitted form the project in Laghman Province. The affected families received some of the materials as per their needs from the following; blankets, plastic tarpaulin sheets, hygiene k8its, mats, kitchen utensils on December 13, 14 of 2025.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Restricted funds
(Continued)
- 39 -

Baghlan Relief for Flood affected people 630 families (71/72- Baghlan) (TF UK, TF Aus, CEDAR Fund) - Total of 630 families benefitted from the project. Flood affected families in Baghlan City on 12 & 13 June 2024, received cash as per Multi- Purpose Cash Assistance (MPCA) standards.

Nangarhar Relief programme for forced returnees (73- NGR Relief Forced Returnees 270F) (Tearfund UK)- Total of 270 families benefitted from the project. 270 Forced Returnees families in Jalalabad City in Nangarhar Province received cash assiatance as per Multi- Purpose Cash Assistance (MPCA) standards on 2 June 2025.

Laghman Relief Programme for forced returnees (74- LGH relief Forced Returnees 125F) (Tearfund Australia)- Total of 125 families benefitted from the project. 125 Forced returnees families in Laghman Province received cash assistance as per Multi- Purpose Cash Assistance (MPCA) standards on 1 June 2025.

Eastern Region Earthquake Relief (Laghman) (75- ER Earthquake Relief 200F Cash) (KNH)- Total of 200 families affected by the earthquake benefitted from the project in Laghman Province. The affected families recieved cash as per Multi- Purpose Cash Assistance (MPCA) standards on 22 December 2025.

Eastern Region Earthquake Relief (Kunar) (76- Kunar Earthquake Relief 237F) (Tearfund Australia, Tearfund UK and World Renew)- Total of 237 families affected by the earthquake benefitted from the project in Nurgul district of Kunar Province. They received cash assistance of double amount of the Multi- Purpose Cash Assistance (MPCA) standards on 17 September 2025.

Eastern Region Earthquake Relief (Kunar and Nangarhar) (77- Kunar Earthquake Relief 565F) (Tearfund Australia, MCC, KNH and IAM)- Total of 565 families affected by the earthquake benefitted from the project in Chawkey district of Kunar and Dari-e-Noor district of Nangarhar Provinces. They received cash assistance of double amount of the Multi- Purpose Cash Assistance (MPCA) standards on October 6 and 20 of 2025.

Eastern Region Earthquake Relief (Dari-e-Noor) (78- Dari-e-Noor Earthquake Relief 159F) (IAM and CEDAR Fund)- Total of 159 families affected by the earthquake benefitted from the project in Dari-e-Noor district of Nangarhar Province. They received cash assistance of double amount of the Multi-Purpose Cash Assistance (MPCA) standards on 8 October 2025.

Herat relief Programme for Forced Returnees (79- Heart Forced Returnees 274F) (KNH and Tearfund Australia)- Total of 274 families benefitted from the project. 274 Forced Returnees families in Kushk Kona district and PD5 of Herat city of Herat Province received cash assiatnce as per the Multi- Purpose Cash Assistance (MPCA) standards on 26 October 2025.

Assets Fund - represents the net book value of the assets acquired by the restricted funds used for restricted purposes.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 40 -
21
Designated funds

The unrestricted funds of the charity compri se the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be use d. The se include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Movement in funds
Movement in funds
Balance at
1 January 2024
Incoming resources
Resources expended
Balance at
1 January 2025
Incoming resources
Resources expended
Balance at
31 December 2025
$
$
$
$
$
$
$
Large Equipment Replacement
106,027
-
-
106,027
-
-
106,027
106,027
-
-
106,027
-
-
106,027

Large Equipment Replacement Fund - This fund represents money set aside by the Directors for future acquisition of vehicles and other large equipment for the general purposes of the charity.

SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 41 -
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
$
$
Acquisition of property, plant and equipment
1,465
-
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 42 -
23
Analysis of net assets between funds

Unrestricted funds

Designated funds

Restricted funds

Total

Unrestricted funds

Designated funds

Restricted funds

Total
2025
2025
2025
2025
2024
2024
2024
2024
$
$
$
$
$
$
$
$
Fund balances at 31 December 2025 are represented by:
Tangible assets
12,749
-
-
12,749
22,514
-
-
22,514
Current assets/(liabilities)
253,801
106,027
101,631
461,459
188,767
106,027
163,860
458,654
266,550
106,027
101,631
474,208
211,281
106,027
163,860
481,168
SERVE AFGHANISTAN
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 43 -
24
Related party transactions

Included in other debtors is an amount of $nil (2024: $3,852) owing from K Dhanabalan. The balance has occurred due to cash drawn in excess of expenses during the year.

There were no related party transactions in the previous year.

25
Analysis of changes in net funds

The charitable company had no material debt during the year.

26
Cash generated from operations
2025
2024
$
$
Deficit for the year
(25,531)
(101,309)
Adjustments for:
Investment income recognised in statement of financial activities
(9,950)
(8,949)
Loss on disposal of tangible fixed assets
2,563
-
(Gain)/loss on disposal of investments
-
2,541
Depreciation and impairment of tangible fixed assets
12,610
13,903
Movements in working capital:
Decrease in debtors
169
35,977
Increase in creditors
38,987
28,794
(Decrease) in deferred income
(95,594)
(22,533)
Cash absorbed by operations
(76,746)
(51,576)
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