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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
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
Europe Trust Limited
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
Europe Trust Limited
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
Europe Trust Limited
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
Europe Trust Limited
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
Europe Trust Limited
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
Europe Trust Limited
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