REGISTERED NUMBER: 4927787 (England and Wales)

~~ .

Report of the 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

Page

Company Information

Report of the Directors/Trustees

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

Notes to the Statement of Financial Activities

13

Europe Trust Limited

Company Information
for the Period 1 November 2004 to 31 December 2005

DIRECTORS AND
TRUSTEES:

TRUSTEES:

Mr A Al - Hajeri
Dr N Al-Kaddo
Mr A A1- Rawi
Mr A S El-Ashaal
Mr I El - Zayat
Dr A Jaballah
Mr A S Mohamed
Dr A Abu Shwaima
Mr N G Misirli
Mr I Al-Naddaf Yalouk

SECRETARY:

Dr A K Bensiali

REGISTERED OFFICE:

123 High Street

Bordesley
Birmingham
West Midlands
B12 OJU

BUSINESS ADDRESS:

Bishopsgate House
5 Bishopsgate Street
Edgbaston
Birmingham
West Midlands
B15 lET

CHARITY NUMBER:

1103290

REGISTERED NUMBER:

4927787 (England and Wales)

AUDITORS:

R A Lea & Co Limited

Registered Auditors
Chartered Accountants
123 High Street
Birmingham
B 12 OJU

Page 1

Europe Trust Limited

Report of the Directors/Trustees
for 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 to
31 December 2005.
PRINCIPAL ACTIVITY
The 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 BUSINESS
The results for the period and financial position of the company are as shown in the annexed financial statements.
DIRECTORS/TRUSTEES
The directors/trustees during the period under review were:

Mr A Al - Hajeri
Dr N Al-Kaddo
Mr A Al - Rawi
Mr A S El-Ashaal
Mr I El - Zayat
Dr A Jaballah
Mr A S Mohamed
The following served as trustees:
Dr A Abu Shwaima
Mr N G Misirli

Mr I Al-Naddaf Yalouk
POLITICAL AND CHARITABLE CONTRIBUTIONS
The Europe Trust liaises very closely with the Federation of Islamic Organisations in Europe (FIOE) and other charities and
organisations with similar objects of community development in Europe.
CHARITY
The company is a Registered Charity number 1103290.
OBJECTS AND POLICIES TO ACHIEVE THESE
The objects are:
1)
2)
3)

4)

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

The establishment of facilities for recreation and other leisure time occupation in the interests of social welfare of
deprived communities in Europe and elsewhere with the object of improving the conditions of life of such communities.
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 or
economic circumstances, or by emotional, personal or family problems by the provision of a counselling service or
other services as appropriate.
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 in
the future.

Page 2

Europe Trust Limited

Report of the Directors/Trustees

for the Period 1 November 2004 to 31 December 2005

ORGANISATION OF THE CHARITY

The 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 VOLUNTEERS
The 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.
RESERVES
The Trust attempts to always have available a couple of months of reserves.

STATEMENT OF DIRECTORS'/TRUSTEES' RESPONSIBILITIES

Company 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 of the 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 AUDITORS

So 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.
AUDITORS
The 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:

11

.....I.~./.... .. ..A1..............

Page 3

Report of the Independent Auditors to the Members of

Europe 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 auditors

As 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 opinion
We 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.
Opinion
In our ol iinion the financial statements give a true and fair view of the state of the 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

Repor of the Independent Auditors to the Members of

Europ : Trust Limited - continued

Emph tsis of Matter

In 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
B irmin; ;ham
B120TJ

Date: ..

~I...[R?.............

Page 5

Pr
Trust Limited
Statem -nt of Financial Activities
for the Period 1 December 2004 to 31 December 2005

Notes

Unrestricted
Funds

Restricted
Funds

Total

727
447,921

70,094
-

70,821
447,921

87,743

87,743

536 3 1

00 4

606,485

29,009
7,581
107,796
18,416
10,455

70,035
59
-

99,044
7,581
107,796
18,475
10,455

173,257

70,094

363,134

363,134

363,134

363,134

INCC MING RESOURCES

Donat ons
Donat ons of Property
Activi ies for generating
funds:

Rental Income

EXPE 14DITURE
Organ kation Donations
Studen:Donations
Charit, ble Expenditure
Manag ;ment and Administration
Fundra:sing

Excess of Income over Expenditure

14

Balanca ; brought forward

Balanc i carried forward

The notes form part of these financial statements

Page 6

Period
09.10.03
to 31.10.04

EuroUE Trust Limited

Balanc Sheet
31 Dec ember 2005

31.12.05
Notes

31.10.04

FIXET ASSETS
Tangib e assets
Investn ents
Investn ent property

5
6
7

2,496
100
3,630,415

3,633,011
CURR :NT ASSETS
Debtor.
Cash at bank

2,213
16,568
18,781

CREDI rORS
Amouni 3 falling due within one year

838,504

NET Cl JRRENT LIABILITIES

(819,723)

TOTAI ASSETS LESS CURRENT

LIABII ITIES

2,813,288

CREW rORS
Amount ; falling due after more than one year

10

2,450,154

363,134

NET Ai, SETS

RESER M
Unrestrii 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:

nw
Director

.
1 / d. I ... l ~. ~[............

Approve4 . by the Board on ... .7.

The notes form part of these financial statements

Page 7

IFF-urorpe Trust Limited

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

1.

ACCOUNTIN G POLICIES
Basis of preparing the financial statements
The allocation of costs on the SORP is based on a estimate of time and resources applied to each area of the charity's
activities.

Accounting convention
The 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 assets

Depreciation 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 and

20% on cost

:nvestment property
nvestment 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 Properties
Nhere 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 COSTS
Period
1.11.04
to
31.12.05

39,945
3,612

\ /ages and salaries

E ocial security costs

Period
9.10.03
to
31.10.04

43,557

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

Period
1.11.04
to
31.12.05
2

Page 8

Period
9.10.03
to
31.10.04
-

EUroUf Trust Limited

Notes t ) the Financial Statements - continued

for the Period 1 November 2004 to 31 December 2005

3.

OPERATIN G LOSS
The operating loss is stated after charging:
Period
1.11.04
to
31.12.05

Period
9.10.03
to
31.10.04

940
4,000

Depreciation - owned assets

4uditors' remuneration

)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 ASSETS
Fixtures
and
fittings

852

(' OST
t ,dditions

6.

Computer
equipment

2,584

Totals

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 VALUE
A t 31 December 2005

666

1,830

2,496

F [XED ASSET INVESTMENTS

Interest in
associate
undertakings

100

COST
A iditions
A: 31 December 2005

100

N ET BOOK VALUE
A: 31 December 2005

100

Page 9

Europe Trust Limited

Notes t ) the Financial Statements - continued
for 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 Limited
vature of business: Property Investment
%

--lass of shares:
)rdinary

holding
100.00
31.12.05

kggregate capital and reserves

100

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

7.

NVESTMENT PROPERTY
Total

:OST
dditions

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 they
xe 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

31.12.05

2,213

Other debtors

Page 10

31.10.04

Eurone Trust Limited

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

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts

Connected charity
trade creditors
Caxation and social security
)ther creditors

31.12.05

31.10.04

133,040
692,990
2,072
2,930
7,472

838,504

10.

"IREDTTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

fEAR
31.12.05

2,450,154

I lank loans

31.10.04

,~mounts falling due in more than five years:

l :epayable by instalments
l tank loans more 5 years by instalments

11.

1,917,994

; ECURED DEBTS
7 he following secured debts are included within creditors:
31.12.05

2,583,194

I ank loans

31.10.04

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 ESERVES
Unrestricted
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 - continued

for 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:

34,750
1,399
1,194
3,000
2,000
1,500
5,000
5,000
24,000
10,279
4,400
1,300
3,044
2,178

nssan Project - Germany

,eiden University - Holland
iga Islamic Spanish Youth Organisation
Iuslim Student Society - UK
1ur Arabic School - Manchester
Iuslim Students House - Birmingham
rab School - London
rabic School Association - UK
1 uropean Institute Human Sciences - Wales
1?uropean Institute Human Sciences - France
l,iga Vade Islamitissche - Youth Recreational Facilities - Holland
Crescent High School for Girls - UK
1?uropean Muslim Youth - Belgium
' farious Smaller under 1,000

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
Funds

2,496
100
3,630,415
(3,269,877)

7 angible Fixed Assets

I ivestments
I ivestment Properties
P 'et Liabilities

363,134

Page 12

Total
Funds

2,496
100
3,630,415
(3,269,877)
363,134

Europe Trust Limited

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

Charitable
Activities

Rent
Rates
Premise, Insurance
Light & Heat
Propert, Expenses
Agents Commission
Trustee; Expenses
Salaries 16,363
Nationa Insurance
Telepho e
Printing Postage & Stationery
Adverti: ing & Promotions
Travelli: kg
Office Ii isurance
Comput :r Costs
Sundry ] ?xpenses
Subscril tions
Account incy
Professional Fees
Auditor;' Remuneration
Depreci; tion: Fixtures & Fittings
Depre6 tion: Computer Equipment
Bank Cl arges
Currenc., Charges

Governance
Costs

Fundraising

Total

3,900
200
2,711
167
8,260
11,467
1,728
11,984
2,384
3,746
2,945
7,630
270
1,923
148
44
32,350
186
754
192
428

1,598
1,084
1,407
4,000
-

39,945
144
38
8,675
-

3,900
200
2,711
167
8,260
11,467
1,728
3,612
3,784
2,945
8,675
7,630
270
1,923
148
44
1,407
32,350
4,000
186
754
192
428

107.796

18,475

10,455

136 726

Page 13

Period
09.10.03
to 31.10.04