Denastar Commodity Trading Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05853263 (England and Wales)

Report of the Director and

Financial Statements

for the Year Ended 31 December 2019

for

Denastar Commodity Trading Limited

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10

DIRECTOR:

R A Clark

REGISTERED OFFICE:

1 Charterhouse Mews

London

EC1M 6BB

REGISTERED NUMBER:

05853263 (England and Wales)

AUDITORS:

Anstey Bond LLP

Statutory Auditors &

Chartered Accountants

1-2 Charterhouse Mews

London

EC1M 6BB

The director presents his report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of trading in the commodities industry.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2019.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

R A Clark held office during the whole of the period from 1 January 2019 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they 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 these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he 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, Anstey Bond LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R A Clark - Director

23 December 2020

Opinion

We have audited the financial statements of Denastar Commodity Trading Limited (the 'company') for the year ended 31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Report of the Director, but does not include the financial statements and our Report of the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Director has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Director.

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

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

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page two, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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 Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 a Report of the Auditors 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.

Colin Ellis FCCA CF (Senior Statutory Auditor)

for and on behalf of Anstey Bond LLP

Statutory Auditors &

Chartered Accountants

1-2 Charterhouse Mews

London

EC1M 6BB

23 December 2020

Anstey Bond LLP

1 Charterhouse Mews. London. EC1M 6BB

TURNOVER

3

64,126,805

23,160

Cost of sales

(62,243,332

)

-

GROSS PROFIT

1,883,473

23,160

Distribution costs

(3,000

)

(5,226

)

Administrative expenses

(1,779,927

)

(32,177

)

100,546

(14,243

)

Other operating income

51,034

-

OPERATING PROFIT/(LOSS)

5

151,580

(14,243

)

Interest receivable and similar income

79,984

-

PROFIT/(LOSS) BEFORE TAXATION

231,564

(14,243

)

Tax on profit/(loss)

6

(34,398

)

-

PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

197,166

(14,243

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

197,166

(14,243

)

CURRENT ASSETS

Debtors

8

16,041,200

504,403

Cash at bank

69,050

-

16,110,250

504,403

CREDITORS

Amounts falling due within one year

9

(15,415,753

)

(7,072

)

NET CURRENT ASSETS

694,497

497,331

TOTAL ASSETS LESS CURRENT
LIABILITIES

694,497

497,331

CAPITAL AND RESERVES

Called up share capital

11

128

Retained earnings

12

694,369

497,203

SHAREHOLDERS' FUNDS

694,497

497,331

The financial statements were approved by the director and authorised for issue on 23 December 2020 and were signed by:

R A Clark - Director

Called up

share

Retained

Total

capital

earnings

equity

$

Balance at 1 January 2018

100

511,446

511,546

Changes in equity

Issue of share capital

28

-

28

Total comprehensive income

-

(14,243

)

(14,243

)

Balance at 31 December 2018

128

497,203

497,331

Changes in equity

Total comprehensive income

-

197,166

Balance at 31 December 2019

128

694,369

694,497

Cash flows from operating activities

Cash generated from operations

1

(10,978

)

(28

)

Net cash from operating activities

(10,978

)

(28

)

Cash flows from investing activities

Interest received

79,984

-

Net cash from investing activities

79,984

-

Cash flows from financing activities

Share issue

-

28

Net cash from financing activities

-

28

Increase in cash and cash equivalents

69,006

-

Cash and cash equivalents at beginning of
year

2

-

Cash and cash equivalents at end of year

2

69,006

-

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

$

Profit/(loss) before taxation

231,564

(14,243

)

Finance income

(79,984

)

-

151,580

(14,243

)

(Increase)/decrease in trade and other debtors

(15,536,797

)

12,143

Increase in trade and other creditors

15,374,239

2,072

Cash generated from operations

(10,978

)

(28

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2019

31.12.19

1.1.19

$

Cash and cash equivalents

69,050

-

Bank overdrafts

(44

)

-

69,006

-

Year ended 31 December 2018

31.12.18

1.1.18

$

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.19

Cash flow

At 31.12.19

$

Net cash

Cash at bank

-

69,050

Bank overdrafts

-

(44

)

(44

)

-

69,006

Total

-

69,006

1.	STATUTORY INFORMATION

Denastar Commodity Trading Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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 accounts are prepared in US Dollars, the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financial transaction, like the payment of a trade debt deferred beyond normal business terms or financed, at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument, and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for an asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Trade and other debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Trade and other creditors

Short term creditors are measured at transaction price, less any impairment. Loans payable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2019

2018

$

Outside the UK

64,126,805

23,160

Total income

64,126,805

23,160

4.	EMPLOYEES AND DIRECTORS

2019

2018

$

Wages and salaries

3,000

5,226

The average number of employees during the year was as follows:

2019

2018

Director

1

2019

2018

$

Director's remuneration

3,000

5,226

5.	OPERATING PROFIT/(LOSS)

The operating profit (2018 - operating loss) is stated after charging/(crediting):

2019

2018

$

Auditors' remuneration

7,000

6,296

Foreign exchange differences

(51,034

)

(644

)

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

$

Current tax:

UK corporation tax

34,398

-

Tax on profit/(loss)

34,398

-

7.	PROVISION FOR DOUBTFUL DEBTS

Included within the Other debtors balance of $16,041,200 is an impairment loss adjustment amounting to $1,594,258.

8.

DEBTORS

2019

2018

$

Amounts falling due within one year:

Other debtors

16,041,200

1

Amounts falling due after more than one year:

Trade debtors

-

504,402

Aggregate amounts

16,041,200

504,403

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

$

Bank loans and overdrafts (see note 10)

44

-

Tax

34,398

-

VAT

1,203

2,072

Other creditors

15,370,108

5,000

Accruals and deferred income

10,000

-

15,415,753

7,072

10.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

$

Amounts falling due within one year or on demand:

Bank overdrafts

44

-

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

$

100

Ordinary

£1

128

12.

RESERVES

Retained

earnings

$

At 1 January 2019

497,203

Profit for the year

197,166

At 31 December 2019

694,369

13.	RELATED PARTY DISCLOSURES

At the balance sheet date, included within Other creditors, is an amount of $323,967 (2018: NIL) due to Ormet Metal Ticaret A.S, the parent company.

14.	POST BALANCE SHEET EVENTS

Subsequent to the year end, there was an outbreak of a global pandemic (Novel Coronavirus disease) resulting in significant financial and economic impact on major economies across the globe and affecting wide range of industries. At the date of the approval of the financial statements, the directors are in the process of assessing the impact of the above-mentioned event on its subsequent period's financial results. The directors concluded that the going concern basis was appropriate.

This is a non-adjusting event, the directors have not considered any adjustments to the financial statements for the year ended 31 December 2019.

15.	ULTIMATE CONTROLLING PARTY

As at the balance sheet date the immediate controlling undertaking is Ormet Metal Ticaret A.S., a company incorporated in Turkey. Copies of the consolidated financial statements for Ormet Metal Ticaret A.S. are available from the company secretary. The registered company address is Marmara apt. No: 4 D.:8, Macka Istanbul 34357 Turkey.

As at the balance sheet date the ultimate controlling undertaking is Ormet Dis Ticaret Ve Danismanlik A.S., a company incorporated in Turkey. Copies of the consolidated financial statements for Ormet Dis Ticaret Ve Danismanlik A.S. are available from the company secretary. The registered company address is Marmara apt. No: 4 D.:8, Macka Istanbul 34357 Turkey.