REGISTERED COMPANY NUMBER: 05512936 (England and Wales)

REGISTERED CHARITY NUMBER: 1120284

Report of the Trustees and

Financial Statements for the Year Ended 31 August 2025

for

Afifah Academy

(A Company Limited by Guarantee)

Page

Report of the Trustees

1

to

9

Report of the Independent Auditors

10

to

12

Statement of Financial Activities

13

Statement of Financial Position

14

to

15

Statement of Cash Flows

16

Notes to the Financial Statements

17

to

26

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2025. The trustees have adopted the provisions of 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).

Objective and Aims

The advancement of educational and training of girls, Aged 2-16 years, residing in greater Manchester, in accordance with principles, tenets and doctrines of the islamic faith, in particular but not exclusively by the provision of a school.

Achievements and Performance

Students on Rolls

According to the January 2025 Department for Education (DfE) School Census, there were:

1- 107 High School students

2- 123 Primary School students

3- 34 Pre School students (Full time equivalent)

Attainment

KS4

National Average

Afifah

Attainment 8

45.9

52.44

Progress 8

n/a

n/a

5+English & Maths

45.2%

56%

GCSE 4 - 9

67%

79%

GCSE 7 -9

21.8%

26%

KS2

National Average

Afifah

Reading

75%

76%

Maths

74%

100%

Writing

72%

59%

SPAG

73%

88%

Year 4 Multiplication

tbc

76%

KS1

National Average

Afifah

Reading

75%

76%

Maths

74%

95%

Writing

72%

71.4%

SPAG

80%

90%

Phonics

80%

100%

EYFS

National Average

Afifah

GLD

67%

79%

Building Purchase

Afifah School since 2016 had been paying an annual rent to Landlords for the use of 86 Clifton Street, Manchester M16 9GN. The landlords in October 2024 expressed their wish to sell the building and gave the trustees first refusal to purchase the building. Fundraising efforts took place to find donors and those willing to provide Kharz-e-Hasna (interest free/Islamic Loan) to assist in the purchase. Through an effective marketing campaign, donors were secured as were various individuals willing to provide Kharz-e-Hasna. The conveyancing process was completed in December 2024. Afifah School are now the owners of 86 Clifton Street M16 9GN.

There was an exceptional charge of £336,559 due to the "disposal" of the leasehold building.

Building Maintenance

The following investments and maintenance have been carried out during this financial year.:

1. Two commercial boilers replaced

2. Mobile oil heaters purchased, to ensure school could continue to operate.

3. Butterfly room outdoor area weather-proofed

4. Radiator covers purchased for EYFS classrooms

5. Pointing of external walls and fitted ventilation bricks (as per recommendations of damp report)

6. Replaced plastic roof sheets of front canopy

7. Installed small canopy above hall exit door (leading in to playground)

8. Fitted extra storage shelves in offices and intervention room

9. Fitted fire-rated glass in corridor fire doors and modified other fire doors

10. Some walls and doors painted

11. Library - doors fitted on book shelves (for security purposes)

12. Wudhu taps replaced with push taps (x7) to save water

13. Extra shelves fitted in Primary library and tuck shop

14. Extra internal cameras fitted (x6) - through Home Office security funding

Staff

1-Staff turnover was low throughout the year. Greater training and support were provided to staff (especially NPQs), and the salaries were improved to bring them closer to the market rates for qualified teachers.

2-New Deputy Head Teacher of High School commenced work from Sept 2024.

Fees

1- On 29th July 2024, the government announced the introduction of 20% VAT on private school fees, from 1st January 2025. The school engaged in an effective strategy to communicate changes to the parents concerning the government announcement. The following measures ensured that the school was in a good position to deal with the huge challenge of the introduction of VAT;

a - Regularly communicating with parents from Sept 2024 onwards, to keep them updated about the impact of the VAT. A parent workshop also took place, so that the school leaders could answer their questions and allay their fears.

b - Head Teacher and Business Support Manager attended the AMS conference in Leicester in Dec 2024 to obtain specialist advice and guidance from VAT experts.

c - Entered in to an agreement

d - Numerous meetings with parents took place when they had communicated that they could not cope financially with the impact of the increase in fees, due to VAT.

2- High school fees were increased from £4,100 to £4,610 (incl. of VAT - from January 2025).

3- Primary school fees were increased from £4,300 to £4,835 (incl. of VAT - from January 2025).

4- Invoices to parents for academic year Sept 2024 were sent through Xero.

5- It is noted that the next academic year (commencing in September 2025) would be the first full academic year in which VAT on private school fees is being applied.

6- A small number of pupils withdrew from the School due to the impact of VAT.

Fundraising Activities - by pupils

1. Alzheimer's society awareness

2. Wear blue for diabetes- each child donated £1

3. Children's mental health week- each child donated £1 towards Place2Be Charity

4. MacMillan- £381

5. Year 6 Business enterprise- £367

6. Whole school Art expedition- children sold artwork for £5 each and raised £300

7. Food Sale 1- £9,838.

8. Food Sale 2 (05/24)- £1,883

9. Bake Sale (03/05/24)- £472

10.Charity Week (working with Islamic Relief) - raised £3,025.

11. Mental Health Week - £500 raised

12. Business Enterprise Week raised £900 and included a visit from a successful entrepreneur (owner of Hayaa Active). This helped students understand the logistics of owning a business that outsources and works internationally. There was also a trip to a factory to explore its unique selling point.

Our annual Charity Fun Day in July 2025 was a joint initiative with Action for Humanity. We raised £2,840.

Trips included this year:

1- Local Gurdwara, Hindu temple, Church and mosque

2- Cadbury World

3- Manchester Museum

4- Blackpool Zoo

5- Picnic in the park

6- Imagine That

7- Local farm

8- York Chocolate Factory

9- Science & Industry Museum

10-China Town

11-Imperial War Museum

12-Museum of Illusion

13-Whitworth Art Gallery

14-Historic mosque in Liverpool

Our Year 6 pupils were given the exciting opportunity to take part in Afifah's very first residential trip to Robinwood Activity Centres. This enriching experience provided children with the chance to step beyond the classroom, embrace new challenges and create lasting memories with their peers.

The residential was carefully designed to develop teamwork, resilience, confidence and independence through a wide range of adventurous outdoor activities. Pupils took part in exciting challenges which included climbing walls, archery, canoeing, zip wiring, caving, crate stacking, problem-solving activities and obstacle courses. Each activity encouraged children to communicate effectively, support one another and persevere outside of their comfort zones in a safe and encouraging environment.

For many pupils, this was their first experience of staying away from home, making the trip an important milestone in their personal development. Throughout the residential, children demonstrated growing maturity, responsibility and self-confidence whilst building stronger friendships and learning the value of cooperation and leadership.

The success of the residential reflects Aififah's commitment to providing meaningful experiences beyond the classroom that inspire, motivate and support the whole child. Opportunities such as these play a vital role in helping pupils develop essential life skills whilst creating unforgettable experiences that they will cherish for years to come

Events

In May 2025, we hosted the termly Head Teacher's Meeting (North) for the Association of Muslim Schools.

Subject Weeks (in English, Maths, Science)

Murabiyoon Games

AMS Public Speaking Event - our KS4 students not only participated, but won this competition.

Burial & Funeral rites - Year 11 students learnt about what happens during the final stages of a Muslim's life and thereafter.

Year 11 Residential - Buxton Ravenstor (in partnership with MYF) Feb 2025

MSC Foodbank

Careers Fair Year 10 & Year 11

Aqsa Week - Highlighted the importance of Masjid Al-Aqsa/unity

Fundraiser for Syria AMS - Non perishable items collected to send to Syrian children. Raising awareness for the poor/needy.

Ramadhan Iftaar - Student only iftaar held in the High School - Togetherness & understanding the importance of community /Ramadhan.

Ramadhan Quraan Competition - Memorisation of the Quraan.

Gaza Winter Walk - PE Lessons with Muslim Hands - the importance of Sadaqah, empathy, community and global awareness.

Sunnah Week - Interactive session - Providing students with the opportunity to understand the sunnah of the Prophet SAW, taste foods and share stories.

The following national days, weeks, months were also incorporated in to the student's daily / weekly schedules;

1- Birdwatch Week

2- World Hijab Day

3- International Day of Women and Girls in Science

4- World Book Day

5- International Women's Day

6- World Water Day

7- Mother's Day

8- Food Allergy Awareness Week

9- Child Safety Week

10- Father's Day

11- National Picnic Month

OBJECTIVES AND ACTIVITIES

Public benefit

The trustees confirm that they have complied with the duty in section 4(1) of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity.

FINANCIAL REVIEW

Financial position

The Charity had income from School fees and donations of £1,862,128 (2024 : £1,129,500) and the total expenses of £1,628,287 (2024 : £1,302,773). The net result was a surplus of £233,841 for the year ended 31st August 2025 [2024 : (£173,273- deficit) for the Year ended 31st August 2024.

For the year ended 31st August 2025, Unrestricted funds carried forward were £633,438 which is made up of Fixed Assets £734,174 and free reserves deficit (£100,736), (2024 : £399,597 which is made up of Fixed Assets £347,542 and free reserves of £52,055).

The Balance Sheet shows that the charity has net current liabilities. The principal creditors are Karze Hasna, Student deposits, and seller of the property and the terms of the borrowing include the right of the charity to request that the amount of the loans to any deficit be eliminated by converting the loans to donations and fees. The going concern of the charity is therefore dependent on these creditors. The trustees feel that the charity is well placed to manage its business risks successfully despite the economic challenges as detailed in the trustees report. Moreover, the trustees consider that the charity has adequate resources to continue its charitable activities for the foreseeable future, and a working capital cycle enabling the charity to meet all liabilities as they fall due.

As a consequence of this the trustees feel that the charity is well placed to manage its business risks successfully. Accordingly, they believe the going concern basis is an appropriate one.

Reserves policy

The trustees are working towards a reserve policy to cover 6 months' worth of overheads. Due to the purchase of the building this has not been possible, however, the trustees are working towards this objective.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its Memoranddum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by Companies Act 2006.

Recruitment and appointment of new trustees

The Trustees are appointed in accordance with the Academy's governing document and applicable charity law. The Board considers the skills, experience and knowledge required to support the effective governance and strategic development of the Academy when considering the appointment of new Trustees.

Potential Trustees may be identified through recommendations from existing Trustees, members of the Academy community and other relevant networks. Candidates are considered by the Board, with particular consideration given to their suitability, experience, commitment to the Academy's charitable objectives and ability to contribute effectively to the work of the Board.

Prior to formal appointment, prospective Trustees are subject to appropriate due diligence and vetting, including an Enhanced DBS check, together with consideration of their eligibility to act as a Trustee and any relevant disqualifications.

New Trustees are initially appointed for a three-month probationary period. During this period, the Board assesses the individual's suitability, contribution, understanding of Trustee responsibilities and commitment to the Academy.. Subject to satisfactory completion of the probationary period and the necessary checks, the individual is formally appointed and added as a Trustee of the Academy.

The Board seeks to maintain an appropriate balance of skills and experience across areas including education, finance, governance, legal and regulatory matters, human resources and strategic management.

Decision making

The Trustees are collectively responsible for the overall governance, strategic direction and financial stewardship of the Academy. The Board meets regularly to consider matters including:

- the Academy's strategic direction and development;

- financial performance, budgets and cash flow; -

- pupil numbers, admissions and retention;

- safeguarding and educational performance;

- significant staffing and employment matters;

- risk management and internal controls;

- major capital expenditure and contractual commitments;

- premises and estate matters;

- fundraising and income generation;

- compliance with legal, regulatory and charitable requirements; and

- policies and matters reserved specifically for the Trustees.

The Trustees work closely on a day-to-day basis with the Headteacher within define authorities and budgets. Operational decisions relating to the running of the school, staffing, curriculum delivery, pupil matters and routine expenditure are closely undertaken by the trustees. Matters of significant financial, strategic, legal or reputational importance, together with matters specifically reserved to the Trustees under the Academy's governing arrangements and delegation framework, remain the responsibility of the Board.

Induction and training of new trustees

New Trustees receive an appropriate induction covering the Academy's charitable objectives, governing documents, governance arrangements, financial responsibilities, key policies, risk management and their legal and fiduciary duties as charity Trustees.

Trustees are also required to understand and undertake appropriate training in relation to their statutory responsibilities as the proprietor and governing body of an independent school, including the Independent School Standards, Ofsted requirements, Keeping Children Safe in Education (KCSIE), safeguarding and child protection, equality duties, health and safety, safer recruitment and other relevant statutory guidance.

Trustees are expected to undertake ongoing training and development to ensure they remain suitably informed and competent to discharge their responsibilities. Training needs are reviewed regularly, particularly following changes to legislation, statutory guidance or regulatory requirements.

The Board receives regular reports on key areas including safeguarding, educational performance, attendance, behaviour, finance, staffing and risk, enabling Trustees to provide effective oversight, challenge and assurance.

Key management remuneration

The Trustees benchmark the Academy's pay levels against the national pay scales for schools, including the relevant teacher and leadership pay scales, to ensure that remuneration remains proportionate, fair and competitive. The national school pay scales provide an appropriate external benchmark for the Academy when determining and reviewing staff remuneration.

In determining remuneration, the Trustees also consider the Academy's financial resources, budgetary constraints, affordability and the need to recruit and retain suitably qualified and experienced staff.

Any significant changes to the remuneration of key management personnel are subject to appropriate Trustee oversight and approval, with conflicts of interest managed in accordance with the Academy's policies and procedures.

Relationship with other organisations

The Academy maintains relationships with a range of individuals, organisations and community bodies in support of its charitable objectives and the delivery of education. The Academy works with parents and families, local community organisations, mosques, educational organisations, professional advisers and other relevant stakeholders to support the provision and development of education within an Islamic environment.

Where appropriate, the Academy also cooperates with other educational and charitable organisations where this supports its charitable objectives or provides benefits to pupils and the wider community.

Related parties

Any related-party transactions are subject to appropriate Trustee oversight and are managed in accordance with the Academy's governing document, applicable charity law and the Academy's conflicts of interest and financial procedures. Trustees are required to declare relevant interests, and appropriate steps are taken to ensure that decisions involving potential conflicts are made transparently and in the best interests of the Academy.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Trustees have considered the major risks to which the Academy is exposed and have established systems and procedures designed to identify, assess, manage and monitor those risks.

The Board maintains oversight of the Academy's risk management framework and regularly considers financial, operational, educational, safeguarding, employment, regulatory, legal, reputational, premises and business continuity risks.

Risk management is supported by appropriate policies, procedures and internal controls, including financial controls, delegated authorities, budgeting and cash-flow monitoring, safeguarding procedures, health and safety arrangements, insurance cover, HR procedures and oversight of legal and regulatory compliance.

The Trustees recognise that the management of risk requires ongoing review and therefore risks are monitored regularly and appropriate mitigating actions are implemented where required. The Board is satisfied that appropriate systems and procedures are in place to manage the major risks facing the Academy.

Risks & Mitigations:

1- Loss of students leading to reduction in income- Smaller increase in annual fees and better marketing strategies to attract more students.

2- Late payment of fees leading to cashflow problems- Improved follow up on fees, healthy cashflow that can withstand some delayed fees payment.

3- Ability to payback interest free loans- Flexible repayment terms with lenders to ensure repayments are affordable.

4- Insufficient reserves to deal with emergencies- Ensure annual forecast projects a surplus to deal with emergencies.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05512936 (England and Wales)

Registered Charity number

1120284 (England and Wales)

Registered office

86 Clifton Street

Manchester

M16 9GN

website: http://www.afifahschool.co.uk

Trustees/Directors

S Diwan - Chaplain

A M Khamisa - Chartered Management Consultant

Ms A Kholwadia - Teacher

M H Sidyo - Imam Muslim Priest

Ms H Timol - Teacher

H M Chunara - Appointed 6th June 2026

Auditors

Prestons & Jacksons Partnership LLP

Statutory Auditors

364 - 368 Cranbrook Road

Ilford

Essex

IG2 6HY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Afifah Academy for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 period. In preparing those 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;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements 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.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Approved by order of the board of trustees on 30 August 2026 and signed on its behalf by:

A M Khamisa - Trustee

Opinion

We have audited the financial statements of Afifah Academy (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

-	have been prepared in accordance with the requirements of the 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 Auditors' 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Matters on which we are required to report by exception

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

-	the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or

-	the charitable company has not kept adequate accounting records; or

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

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and unidentified risks during the course of our audit. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, the Charity's constitution, The Companies Act, together with the Charities SORP (FRS 102), GDPR data and safeguardings, employment law, health and safety including child safety in Education, OFSTED requirements, Anti bribery Act and AML. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

The ISA's (UK) limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Trustees about their own identification and assessment of the risks of irregularities, analytical procedures and risk-based sample testing of income, expenditure, cut-off procedures, journals testing, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with The ISA's (UK). For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by The ISA's (UK) would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Other Matters

As per Note 14 to the accounts, there was a prior year adjustment for the year ended 31st August 2024.

Use of our report

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

Prestons & Jacksons Partnership LLP

Statutory Auditors

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

364 - 368 Cranbrook Road

Ilford

Essex

IG2 6HY

30 August 2026

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

as restated

Notes

£

£

£

£

INCOME FROM

Donations and legacies

2

63,955

541,664

605,619

30,024

Charitable activities

5

Education

951,596

273,318

1,224,914

1,034,678

Other trading activities

3

12,731

-

12,731

50,317

Investment income

4

694

-

694

-

Other income

18,170

-

18,170

14,481

Total

1,047,146

814,982

1,862,128

1,129,500

EXPENDITURE ON

Exceptional Items

6

336,559

-

336,559

-

Charitable activities

7

Charitable Expenditure

1,254,150

-

1,254,150

1,252,356

Governance cost

36,500

-

36,500

50,417

Finance

1,078

-

1,078

-

Total

1,628,287

-

1,628,287

1,302,773

NET INCOME/(EXPENDITURE)

(581,141

)

814,982

233,841

(173,273

)

Transfers between funds

21

814,982

(814,982

)

-

-

Net movement in funds

233,841

-

233,841

(173,273

)

RECONCILIATION OF FUNDS

Total funds brought forward

399,597

-

399,597

572,870

TOTAL FUNDS CARRIED FORWARD

633,438

-

633,438

399,597

31/8/25

31/8/24

as restated

Notes

£

£

FIXED ASSETS

Tangible assets

16

734,174

347,542

CURRENT ASSETS

Debtors

17

89,555

64,430

Cash at bank and in hand

141,027

109,755

230,582

174,185

CREDITORS

Amounts falling due within one year

18

(331,318

)

(122,130

)

NET CURRENT ASSETS

(100,736

)

52,055

TOTAL ASSETS LESS CURRENT LIABILITIES

633,438

399,597

NET ASSETS

633,438

399,597

FUNDS

21

Unrestricted funds

633,438

399,597

TOTAL FUNDS

633,438

399,597

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2025.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 August 2026 and were signed on its behalf by:

A M Khamisa - Trustee

Cash flows from operating activities

Cash generated from operations

23

431,018

(108,769

)

Net cash provided by/(used in) operating activities

431,018

(108,769

)

Cash flows from investing activities

Purchase of tangible fixed assets

(741,672

)

(18,017

)

Sale of tangible fixed assets

341,232

-

Interest received

694

-

Net cash used in investing activities

(399,746

)

(18,017

)

Change in cash and cash equivalents in the reporting period

31,272

(126,786

)

Cash and cash equivalents at the beginning of the reporting period

109,755

236,541

Cash and cash equivalents at the end of the reporting period

141,027

109,755

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The prior accounting period was a period by one day. The trustees consider these to be comparable due to them being virtually for identical time periods.

Critical accounting judgements and key sources of estimation uncertainty

Judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements

Land

The key source of estimation uncertainty relates to the valuation of the land which is part of the building purchased in the year. In the absence of a professional valuation of the land, the trustees have used their experience and professional judgement to assess the value of the land.

Going Concern

At the Balance Sheet date, the charity had net current liabilities. This is due to the Karze Hasna loans shown as due within one year. In the opinion of the trustees, these are "soft loans" from the community and supporters of the charity. There is an understanding of flexibility and repayment could be deferred. The trustees are confident of continued support from the community.

The trustees have also considered the potential impact of VAT on fee income. In the opinion of the trustees, they have procedures in place to reduce the impact of VAT on fee income.

It is for these reasons, the accounts have been prepared on a going concern basis.

Income

Grants, fees and gift aids are recognised on a receivable basis. All other income is recognised when it's received.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on a straight line

Land - not provided

Short Leasehold - 5% on a reducing balance

Fixtures & Fittings - 18% on cost

The gain or loss arising on the disposal of the an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the charity 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 its impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the charity estimates the recoverable amount of the cash generating unit to which the asset belongs.

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 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 (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, 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.

Basic financial assets

Basic financial assets, which include trade and other 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.

Basic financial liabilities

Basic financial liabilities, including creditors, Karze Hasna loans from the local community, are initially recognised at transaction price unless the arrangement constitute a financing transaction, where the loan instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within 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.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Concessionary loans

Interest free loans (Karze Hasna) from the community are accounted for as due within one year.

2.	DONATIONS AND LEGACIES

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

as restated

£

£

Donations

595,656

28,254

Gift aid

9,963

1,770

605,619

30,024

3.	OTHER TRADING ACTIVITIES

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

as restated

£

£

Fundraising events

12,731

50,317

4.	INVESTMENT INCOME

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

as restated

£

£

Other interest received

694

-

5.	INCOME FROM CHARITABLE ACTIVITIES

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

as restated

Activity

£

£

Fees and Registration

Education

1,201,779

1,020,217

Food Sales

Education

22,468

13,861

Other Educational Resources

Education

667

600

1,224,914

1,034,678

6.	EXCEPTIONAL ITEMS

Exceptional items

Period

2/9/23

Year Ended

to

31/8/25

31/8/24

as restated

£

£

Exceptional items

336,559

-

This is the disposal of the leasehold during the year as it was simultaneously acquired as a freehold.

7.	CHARITABLE ACTIVITIES COSTS

Support

costs (see

note 8)

£

Charitable Expenditure

1,254,150

Governance cost

36,500

Finance

1,078

1,291,728