Financial Statement EuropeTrust 2005

REGISTERED NUMBER: 4927787 (England and Wales)

~~ .

Report ofthe Directors/Trustees and

Financial Statements for the Period 1 November 2004 to 31 December 2005

for

Europe Trust Limited


Contents of the Financial Statements

for the Period 1 November 2004 to 31 December 2005

Company Information

Report of the Directors/Trustees

Report ofthe Independent Auditors

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

Notes to the Statement of Financial Activities

Page

1

2

4

6

7

8

13


Company Informationfor the Period 1 November 2004 to 31 December 2005

DIRECTORS AND Mr A Al - HajeriTRUSTEES: Dr N Al-Kaddo

Mr A A1- RawiMr A S El-Ashaal

Mr I El - ZayatDr A JaballahMr A S Mohamed

TRUSTEES: Dr A Abu ShwaimaMr N G MisirliMr I Al-NaddafYalouk

SECRETARY: Dr A K Bensiali

REGISTERED OFFICE:

BUSINESS ADDRESS:

CHARITY NUMBER:

123 High StreetBordesleyBirminghamWest MidlandsB12 OJU

Bishopsgate House5 Bishopsgate Street

EdgbastonBirminghamWest Midlands

B15 lET

1103290

REGISTERED NUMBER: 4927787 (England and Wales)

AUDITORS: R A Lea & Co LimitedRegistered AuditorsChartered Accountants123 High Street

BirminghamB 12 OJU

Page 1


Report of the Directors/Trusteesfor the Period 1 November 2004 to 31 December 2005

The directors present their report with the financial statements of the company for the period 1 November 2004 to31 December 2005.

PRINCIPAL ACTIVITYThe principal activity of the company in the period under review was that of to establish a portfolio of assets (awqaf),businesses and investments to generate resources to fund social and economic projects for communities in Europe.

REVIEW OF BUSINESSThe results for the period and financial position ofthe company are as shown in the annexed financial statements.

DIRECTORS/TRUSTEESThe directors/trustees during the period under review were:

Mr A Al - HajeriDr N Al-KaddoMr A Al - RawiMr A S El-AshaalMr I El - ZayatDr A JaballahMr A S Mohamed

The following served as trustees:

Dr A Abu ShwaimaMr N G MisirliMr I Al-NaddafYalouk

POLITICAL AND CHARITABLE CONTRIBUTIONSThe Europe Trust liaises very closely with the Federation of Islamic Organisations in Europe (FIOE) and other charities andorganisations with similar objects of community development in Europe.

CHARITYThe company is a Registered Charity number 1103290.

OBJECTS AND POLICIES TO ACHIEVE THESEThe objects are:

1) The advancement of Religion and in particular the Islamic Religion in Europe.

2) The establishment of facilities for recreation and other leisure time occupation in the interests of social welfare ofdeprived communities in Europe and elsewhere with the object of improving the conditions of life of such communities.

3) The promotion of any charitable purpose amongst Muslims in Europe and elsewhere and in particular the relief of

poverty, the advancement of education and the relief and prevention of suffering caused by mental health, social and oreconomic circumstances, or by emotional, personal or family problems by the provision of a counselling service orother services as appropriate.

4) The establishment of religious, educational, social and recreational institutions by such means as are exclusively

charitable.

The policies to achieve these objects are:

To rely on revenues either by donations or creating its income through investment and expanding its property po rtfolio.Donations have been very limited and scarce and that is the reason, the Charity is looking to develop its property po rt folio

which should increase in value so that the capital gain will ensure a good financial base to fund the above projects/objects inthe future.

Page 2


Report ofthe Directors/Trusteesfor the Period 1 November 2004 to 31 December 2005

ORGANISATION OF THE CHARITYThe charity has ten trustees/directors and three advisors.

The Board meets in a general annual meeting once a year.

A committee of trustees meets between the annual meetings to ensure implementation of decisions and follow up. The

committee also convenes as a grant committee to consider applications for grants.

The committee meets about three times a year or as needed.

The Chief Executive carries forward the d'ecisions, implements them and makes suggestions to the chairman and the

committee.

SERVICES OF VOLUNTEERSThe Trust does use volunteers on a limited scale. In 2005 eight volunteers participated in activities of administration and

fieldwork. The estimated time of this was some 256 hours.

RESERVESThe Trust attempts to always have available a couple of months of reserves.

STATEMENT OF DIRECTORS'/TRUSTEES' RESPONSIBILITIESCompany law requires the directors to prepare financial statements for each financial year which give a true and fair view of

the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial

statements, the directors are required to

select suitable accounting policies and then apply them consistently;

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 company will

continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the

financial position ofthe company and to enable them to ensure that the financial statements comply with the Companies Act

1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORSSo far as the directors are aware, there is no relevant audit information (as defined by Section 234ZA of the Companies Act

1985) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the company's auditors are

aware of that information.

AUDITORSThe auditors, R A Lea & Co Limited, will be proposed for re-appointment in accordance with Section 385 of the Companies

Act 1985.

This report has been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to

small companies.

ON BEHALF OF THE BOARD:

Director

Date: .....I.~./...°. 1..1..A1..............

Page 3

Report ofthe Independent Auditors to the Members ofEurope Trust Limited

We have audited the financial statements of Europe Trust Limited for the period ended 31 December 2005 on pages five to

twelve. These financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller

Entities (effective June 2002), under the historical cost convention and the accounting policies set out therein.

This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies Act

1985. 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 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 company and the company's members as a body, for our audit work, for this

report, or for the opinions we have formed.

Respective responsibilities of directors and auditorsAs described on page three the company's directors are responsible for the preparation of financial statements in accordance

with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting

Practice).

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and

United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in

accordance with the Companies Act 1985. We also report to you if, in our opinion, the Report of the Directors is not

consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all

the information and explanations we require for our audit, or if information specified by law regarding directors'

remuneration and transactions with the company is not disclosed.

We read the Report of the Directors and consider the implications for our report if we become aware of any apparent

misstatements within it.

Basis of audit opinionWe conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An

audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It

also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the

financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently

applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in

order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material

misstate nent, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall

adequac i of the presentation of information in the financial statements.

OpinionIn our ol iinion the financial statements give a true and fair view of the state ofthe company's affairs as at 31 December 2005

and of it ; surplus for the period then ended and have been properly prepared in accordance with the Companies Act 1985.

Page 4

F

Repor ofthe Independent Auditors to the Members of

Europ : Trust Limited - continued

Emph tsis of MatterIn forr iing our opinion, which is not qualified, we have given due consideration to the following matters:

■ nc professional valuation of the charity's investment properties was carried out at the balance sheet date and we have

re ied upon the trustees' representation as to their market value at that date.

■ w( have been unable to obtain independent verification that certain foreign investment properties, shown on the balance

sh ;et at a value of £176,963, have been legally conveyed to the trust.

■ we have been unable to obtain independent verification of the source of certain donations of cash and property received

by the charity.

R A Le t& Co Limited

Registe red Auditors

Chartei ad Accountants

123 Hi; ;h Street

Birmin; ;ham

B120TJ

Date: .. ~I...[R?.............

Page 5

Pr

Trust Limited

Statem -nt ofFinancial Activities

for the Period 1 December 2004 to 31 December 2005

Notes

INCC MING RESOURCES

Period

Unrestricted Restricted 09.10.03

Funds Funds Total to 31.10.04

£ £ £ £

Donat ons 727 70,094 70,821

Donat ons of Property 447,921 - 447,921

Activi ies for generating

funds:Rental Income 87,743 - 87,743

EXPE 14DITURE

536 3 1 0 0 4 606,485

Organkation Donations 14 29,009 70,035 99,044

Studen:Donations 7,581 - 7,581

Charit, ble Expenditure 107,796 - 107,796

Manag ;ment and Administration 18,416 59 18,475

Fundra:sing 10,455 - 10,455

173,257 70,094 2

Excess of Income over Expenditure

Balanca ; brought forward

Balanc i carried forward

363,134 - 363,134

363,134 - 363,134

The notes form part of these financial statements

Page 6

EuroUE Trust Limited

Balanc ° Sheet31 Dec ember 2005

31.12.05 31.10.04Notes £ £ £ £

FIXET ASSETSTangib e assets 5 2,496Investn ents 6 100Investn ent property 7 3,630,415

3,633,011

CURR :NT ASSETSDebtor. 8 2,213Cash at bank 16,568

18,781CREDI rORSAmouni 3 falling due within one year 9 838,504

NET Cl JRRENT LIABILITIES (819,723)

TOTAI ASSETS LESS CURRENTLIABII ITIES 2,813,288

CREW rORSAmount ; falling due after more than one year 10 2,450,154

NET Ai, SETS 363,134

RESER MUnrestrii ted Funds 12 363,134

363,134

These flu ancial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act

1985 rel, ting to small companies and with the Financial Reporting Standard for Smaller Entities (effective June 2002).

ON BEF ALF OF THE BOARD:

Director

nw .Approve4 . by the Board on ... 1 .7./d. I ...l~. ~[............

The notes form part of these financial statements

Page 7

IFF-urorpe Trust Limited

Notes t ) the Financial Statementsfor the ?eriod 1 November 2004 to 31 December 2005

1. ACCOUNTING POLICIES

Basis of preparing the financial statementsThe allocation of costs on the SORP is based on a estimate of time and resources applied to each area of the charity'sactivities.

Accounting conventionThe financial statements have been prepared under the historical cost convention and in accordance with the SORP

Accounting and Reporting by Charities' and the FRSSE (June 2002).

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

?lant and machinery etc - 25% on cost and20% on cost

:nvestment propertynvestment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

narket value is transferred to a revaluation reserve.

1 )wnership of PropertiesNhere the charity is not the sole owner of a property, only the percentage of the charity's ownership is included in

i he assets of the charity.

I tental Income"his is recognised when due.

l lonations'he Charity has been the beneficiary of significant values of land and buildings. These donations have been

i icluded in the Balance Sheet of the charity at the estimated market value on the date of the donation.

2. : TAFF COSTSPeriod Period

1.11.04 9.10.03to to

31.12.05 31.10.04£ £

\ /ages and salaries 39,945

E ocial security costs 3,612

43,557

1 he average monthly number of employees during the period was as follows:Period Period

1.11.04 9.10.03

to to31.12.05 31.10.04

2 -

Page 8

EUroUf Trust Limited

Notes t ) the Financial Statements - continuedfor the Period 1 November 2004 to 31 December 2005

3. OPERATING LOSSThe operating loss is stated after charging:

Period Period1.11.04 9.10.03

to to31.12.05 31.10.04

Depreciation - owned assets4uditors' remuneration

£ £940

4,000

)irectors' emoluments and other benefits etc

4. ' rAXATION

Walysis of the tax charge,do liability to UK corporation tax arose on ordinary activities for the period ended 31 December 2005 nor for the

period ended 31 October 2004.

5. 1. FIXED ASSETSFixtures

and Computerfittings equipment Totals

('OST £ £ £t ,dditions 852 2,584 3,436

1A 31 December 2005 852 2,584 3,436

I 1EPRECIATION( harge for period 186 754 940

A t 31 December 2005 186 754 940

P ET BOOK VALUEA t 31 December 2005 666 1,830 2,496

6. F [XED ASSET INVESTMENTS

COSTA iditions

Interest inassociate

undertakings£

100

A: 31 December 2005 100

N ET BOOK VALUEA: 31 December 2005 100

Page 9


Notes t ) the Financial Statements - continuedfor the 'eriod 1 November 2004 to 31 December 2005

6. FIXED ASSET INVESTMENTS - continued

The company's investments at the balance sheet date in the share capital of companies include the following:

Europe Trust Property Enterprises Limitedvature of business: Property Investment

%

--lass of shares: holding)rdinary 100.00

31.12.05£

kggregate capital and reserves 100

.~ny future profits ofthis company are to be donated to Europe Trust Limited for its charitable purposes.

7. NVESTMENT PROPERTYTotal

£:OSTdditions 3,630,415

,it 31 December 2005 3,630,415

l dET BOOK VALUE, t 31 December 2005 3,630,415

o independent professional valuation of the investment properties was carried out at the balance sheet date. The

rustees are of the opinion that the market value of the properties is not lower than the carrying value at which theyxe stated in the accounts.

.~ property at 221 Woodhouse Street, Leeds was purchased by means of a Murabaha Agreement. The purchase

rice comprised £1,500,000 capital cost and £1,162,911 profit element. The total cost of £2,262,911 is included in

Investment Property Additions.

8. 1 IEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors

31.12.05 31.10.04£ £

2,213 -

Page 10

Eurone Trust Limited

Notes t ) the Financial Statements - continuedfor the 'eriod 1 November 2004 to 31 December 2005

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR31.12.05 31.10.04

£ £Bank loans and overdrafts 133,040 •Connected charity 692,990 -trade creditors 2,072 •Caxation and social security 2,930 -)ther creditors 7,472 -

838,504

10. "IREDTTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONEfEAR

31.12.05 31.10.04£ £

I lank loans 2,450,154 -

,~mounts falling due in more than five years:

l :epayable by instalments

l tank loans more 5 years by instalments 1,917,994

11. ; ECURED DEBTS

7 he following secured debts are included within creditors:

31.12.05 31.10.04£ £

I ank loans 2,583,194 -

1 he Bank of Ireland has first legal charge over the property 221 Woodhouse Street, Leeds. First legal charge over

a Iditional properties 9 flats at 158a Woodsley Road, Leeds.

12. F ESERVESUnrestricted

Funds£

Retained surplus for the period 363,134

A t 31 December 2005 363,134

Page 11


Notes b the Financial Statements - continuedfor the 'eriod 1 November 2004 to 31 December 2005

13. TRUSTEES' EXPENSES

3 Trustees have received £1,728 expenses for the period in relation to attendance at Trustees' Meetings.

14. GRANTS

lie Charity made grants to the following organisations in the period:

£nssan Project - Germany 34,750,eiden University - Holland 1,399iga Islamic Spanish Youth Organisation 1,194

✓Iuslim Student Society - UK 3,000

1ur Arabic School - Manchester 2,000

✓Iuslim Students House - Birmingham 1,500

rab School - London 5,000rabic School Association - UK 5,000

1 uropean Institute Human Sciences - Wales 24,000

1?uropean Institute Human Sciences - France 10,279

l,iga Vade Islamitissche - Youth Recreational Facilities - Holland 4,400

Crescent High School for Girls - UK 1,300

1?uropean Muslim Youth - Belgium 3,044

' farious Smaller under £1,000 2,178

9 044

15. CONNECTED CHARITY

he Charity has a connected charity European Trust no. 1054478. This is an unincorporated company with common

ontrol and shared management. This company is currently in the process of transferring its assets to Europe T ru st

1,imited. At the balance sheet date the charity owed the European Trust £692,990. This liability is included in

( reditors (note 9).

16. 1 NALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted TotalFunds Funds

£ £

7 angible Fixed Assets 2,496 2,496

I ivestments 100 100

I ivestment Properties 3,630,415 3,630,415

P 'et Liabilities (3,269,877) (3,269,877)

363,134 363,134

Page 12


Notes to the Statement of Financial Statementsfor the :'eriod Ended 31 December 2005

PeriodCharitable Governance 09.10.03Activities Costs Fundraising Total to 31.10.04

£ £ £ £ £

Rent 3,900 - - 3,900Rates 200 - - 200Premise, Insurance 2,711 - - 2,711

Light & Heat 167 - - 167Propert, Expenses 8,260 - - 8,260

Agents Commission 11,467 - - 11,467

Trustee; Expenses 1,728 - - 1,728Salaries 16,363 11,984 1,598 39,945 -Nationa Insurance 2,384 1,084 144 3,612Telepho ►e 3,746 - 38 3,784Printing Postage & Stationery 2,945 - - 2,945

Adverti: ing & Promotions - - 8,675 8,675

Travelli: kg 7,630 - - 7,630

Office Ii isurance 270 - - 270

Comput :r Costs 1,923 - - 1,923

Sundry ] ?xpenses 148 - - 148

Subscril tions 44 - - 44

Account incy - 1,407 - 1,407

Professional Fees 32,350 - - 32,350

Auditor;' Remuneration - 4,000 - 4,000

Depreci; tion: Fixtures & Fittings 186 - - 186

Depre6 tion: Computer Equipment 754 - - 754

Bank Cl arges 192 - - 192

Currenc., Charges 428 - - 428

107.796 18,475 10,455 136 726

Page 13

Financial Statement EuropeTrust 2005

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Transcript of Financial Statement EuropeTrust 2005