Denastar Commodity Trading Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05853263 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 December 2020

for

Denastar Commodity Trading Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

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 strategic report for the year ended 31 December 2020.

REVIEW OF BUSINESS

The company trades raw materials mainly for steel production & petrochemicals for fiber production. Due to outbreak of a global pandemic and conservative strategy during this period, the turnover dropped substantially however the company managed to increase profitability ratio during this period with the booming commodity market at the second half of 2020:

2020$

2019$

Turnover

12,374,146

64,126,808

Profit for financial year

257,421

197,166

Utilization rates on every production reduced around the world due to pandemic closures & lockdowns, therefore there is a substantial downward turn in sales.

The profit of the company has increased from $197,166 to $257,421 and the directors' aim is to keep the profitability ratio same with intention of restoring turnover to those achieved in earlier years.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces a number of business risks and uncertainties due to competitive trading conditions and sudden changes in government regulations around the globe. In view of this, the directors are looking carefully at both existing and potential new markets and commodities.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and continues risk evaluation, as well as review of the state of the commodity market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations. Company looking to increase the volume of the business in various new markets by adhering to strict risk management principles. To support the potential increase in the volumes company seeking to increase it's credit lines with various banks.

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are fully conducted in US Dollars. The company does not enter into any formally designated hedging arrangements as all trade conducted in same currency, however if there would be a current exposure the company will use hedging facilities to avoid any risk. Company also reviewing various credit insurance options.

RESEARCH AND DEVELOPMENT

The company is currently undertaking research and development to improve the quality of the traded commodities.

ON BEHALF OF THE BOARD:

R A Clark - Director

7 September 2021

The director presents his report with the financial statements of the company for the year ended 31 December 2020.

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 2020.

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 2020 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, 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

7 September 2021

Opinion

We have audited the financial statements of Denastar Commodity Trading Limited (the 'company') for the year ended 31 December 2020 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 2020 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

In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Emphasis of matter

We draw your attention to note 14 of the financial statements; emphasising the non-adjusting post balance sheet event, in relation to the global coronavirus pandemic.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and 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 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.

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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have 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 Strategic Report or 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 three, 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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

.

the nature of the industry and sector, control environment and business performance including the design of
the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance
targets;

.

results of our enquiries of management about their own identification and assessment of the risks of
irregularities;

.

any matters we identified having obtained and reviewed the Company's documentation of their policies and
procedures relating to:

.

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of noncompliance;

.

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;

.

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

.

the matters discussed among the audit engagement team and involving relevant internal specialists, including
tax and IT specialists regarding how and where fraud might occur in the financial statements and any potential
indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

Audit response to the risks identified

Our procedures to respond to risks identified included the following:

.

reviewing the financial statement disclosures and verifying through obtaining supporting documentation to
assess compliance with provisions of relevant laws and regulations described as having a direct effect on the
financial statements;

.

enquiring of management and external legal counsel concerning actual and potential litigation and claims;

.

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;

.

reading minutes of meetings of those charged with governance, and reviewing regulatory correspondence

.

obtained an understanding of provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions; and

.

obtained an understanding of provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions; and

.

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the judgements made in making accounting estimates are
indicative of a potential bias; and evaluating the business rationale of any significant transactions that are
unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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

7 September 2021

Anstey Bond LLP

1 Charterhouse Mews. London. EC1M 6BB

TURNOVER

3

12,374,146

64,126,805

Cost of sales

(11,441,444

)

(62,243,332

)

GROSS PROFIT

932,702

1,883,473

Distribution costs

(3,000

)

(3,000

)

Administrative expenses

(695,962

)

(1,779,927

)

233,740

100,546

Other operating income

-

51,034

OPERATING PROFIT

5

233,740

151,580

Interest receivable and similar income

95,823

79,984

PROFIT BEFORE TAXATION

329,563

231,564

Tax on profit

6

(72,142

)

(34,398

)

PROFIT FOR THE FINANCIAL YEAR

257,421

197,166

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

257,421

197,166

CURRENT ASSETS

Debtors

8

4,345,850

16,041,200

Cash at bank

109,644

69,050

4,455,494

16,110,250

CREDITORS

Amounts falling due within one year

9

(3,503,576

)

(15,415,753

)

NET CURRENT ASSETS

951,918

694,497

TOTAL ASSETS LESS CURRENT
LIABILITIES

951,918

694,497

CAPITAL AND RESERVES

Called up share capital

11

128

Retained earnings

12

951,790

694,369

SHAREHOLDERS' FUNDS

951,918

694,497

The financial statements were approved by the director and authorised for issue on 7 September 2021 and were signed by:

R A Clark - Director

Called up

share

Retained

Total

capital

earnings

equity

$

Balance at 1 January 2019

128

497,203

497,331

Changes in equity

Total comprehensive income

-

197,166

Balance at 31 December 2019

128

694,369

694,497

Changes in equity

Total comprehensive income

-

257,421

Balance at 31 December 2020

128

951,790

951,918

Cash flows from operating activities

Cash generated from operations

1

(11,262

)

(10,978

)

Tax paid

(43,923

)

-

Net cash from operating activities

(55,185

)

(10,978

)

Cash flows from investing activities

Interest received

95,823

79,984

Net cash from investing activities

95,823

79,984

Increase in cash and cash equivalents

40,638

69,006

Cash and cash equivalents at beginning of
year

2

69,006

-

Cash and cash equivalents at end of year

2

109,644

69,006

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

$

Profit before taxation

329,563

231,564

Finance income

(95,823

)

(79,984

)

233,740

151,580

Decrease/(increase) in trade and other debtors

11,695,350

(15,536,797

)

(Decrease)/increase in trade and other creditors

(11,940,352

)

15,374,239

Cash generated from operations

(11,262

)

(10,978

)

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 2020

31.12.20

1.1.20

$

Cash and cash equivalents

109,644

69,050

Bank overdrafts

-

(44

)

109,644

69,006

Year ended 31 December 2019

31.12.19

1.1.19

$

Cash and cash equivalents

69,050

-

Bank overdrafts

(44

)

-

69,006

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

$

Net cash

Cash at bank

69,050

40,594

109,644

Bank overdrafts

(44

)

44

-

69,006

40,638

109,644

Total

69,006

40,638

109,644

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 $.

Going concern

As set out in the strategic report, the directors believe that the company is experiencing good levels of sales growth and profitability, and that it is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 1, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 ot the accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There critical judgment made by management that have a significant effect on the amounts recognised in the financial statement are described below.

Critical judgement

Bad debt provision

Upon review of the trade receivables balance at the end of the financial period the directors identified old and slow moving debts which relates to counter parties that are in financial difficulty and therefore the directors judge these debts to be irrecoverable. A bad debt provision of $405,040 (2019: $1,594,258) has been included in these financial statements.

Revenue recognition

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT.

Revenue from the sale of raw materials, as specified in the strategic report, is recognised when all the following conditions are satisfied:

1) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

2) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

3) the amount of revenue can be measured reliably

4) it is probably that the economic benefits associated with the transaction will flow to the Company; and

5) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of components is recognised when the goods are delivered and legal title has passed.

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.

Related parties

For the purposes of these financial statements, a party is considered to be related to the Company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company;

(ii) the Company and the party are subject to common control;

(iii) the party is an associate of the Company or a joint venture in which the Company is a venture;

(iv) the party is a member of key management personnel of the Company or the Company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals;

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company; or

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who ma be expected to influence or be influence by, that individual in their dealings with the entity.

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:

2020

2019

$

Outside the UK

12,374,146

64,126,805

Total income

12,374,146

64,126,805

4.	EMPLOYEES AND DIRECTORS

2020

2019

$

Wages and salaries

3,000

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

2020

2019

Director

1

2020

2019

$

Director's remuneration

3,000

5.	OPERATING PROFIT

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

2020

2019

$

Auditors' remuneration

6,695

7,000

Foreign exchange differences

(17,485

)

(51,034

)

6.

TAXATION

Analysis of the tax charge

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

2020

2019

$

Current tax:

UK corporation tax

72,142

34,398

Tax on profit

72,142

34,398

7.	PROVISION FOR DOUBTFUL DEBTS

Included within the Other debtors balance of $4,442,929 is an impairment loss adjustment amounting to $405,040.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

$

Other debtors

4,345,850

16,041,200

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

$

Bank loans and overdrafts (see note 10)

-

44

Tax

62,617

34,398

VAT

-

1,203

Other creditors

3,427,959

15,370,108

Accruals and deferred income

13,000

10,000

3,503,576

15,415,753

10.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

$

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

2020

2019

value:

$

100

Ordinary

£1

128

12.

RESERVES

Retained

earnings

$

At 1 January 2020

694,369

Profit for the year

257,421

At 31 December 2020

951,790

13.	RELATED PARTY DISCLOSURES

At the balance sheet date, included within Other creditors, is an amount of $150,084 (2019: $323,967) due to Ormet Metal Ticaret A.S, the parent company.

At the balance sheet date, included within Other debtors, is an amount of $2,649,444 (2020: NIL) due from Delima Commodity Trading Ltd, the subsidiary company.

At the balance sheet date, included within Other debtors, is an amount of $155,493 (2020: NIL) due from Delima Resources SA.

At the balance sheet date, included within Other creditors, is an amount of $1,781,672 (2020: NIL) due to Delima Ores Corporation.

At the balance sheet date, included within Other debtors, is an amount of $359,798 (2020: NIL) due from Asrometal Maden ve Ticaret S.A.

14.	POST BALANCE SHEET EVENTS

During the year to 31st December 2020, 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. This pandemic continued in to the 2021 financial year, with further lockdowns in the United Kingdom and across the globe.

At the date of the approval of the financial statements, the directors assessed 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 2020.

15.	ULTIMATE CONTROLLING PARTY

As at the balance sheet date the immediate 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.

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