Denastar Commodity Trading Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 05853263 (England and Wales)

Financial Statements

for the Year Ended 31 December 2022

for

Denastar Commodity Trading Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

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

BANKERS:

UBS Switzerland AG

PO Box,CH-8098 Zurich

CURRENT ASSETS

Debtors

5

3,170,437

2,815,032

Cash at bank

1,354,738

3,394,334

4,525,175

6,209,366

CREDITORS

Amounts falling due within one year

6

(2,457,178

)

(4,196,365

)

NET CURRENT ASSETS

2,067,997

2,013,001

TOTAL ASSETS LESS CURRENT LIABILITIES

2,067,997

2,013,001

CAPITAL AND RESERVES

Called up share capital

128

128

Retained earnings

2,067,869

2,012,873

SHAREHOLDERS' FUNDS

2,067,997

2,013,001

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 10 July 2023 and were signed by:

R A Clark - Director

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" including the provisions of Section 1A "Small Entities" 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

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 to 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.

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.

Revenue from the sale of raw materials 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 commodities 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 Income Statement, 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.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2021 - 1 ) .

4.	AUDITORS' REMUNERATION

31.12.22

31.12.21

$

$

Fees payable to the company's auditors for the audit of the company's financial statements

6,000

7,000

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

$

$

Other debtors

3,170,437

2,815,032

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

$

$

Taxation and social security

12,900

248,896

Other creditors

2,444,278

3,947,469

2,457,178

4,196,365

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Colin Ellis FCCA CF (Senior Statutory Auditor)

for and on behalf of Anstey Bond LLP

Anstey Bond LLP

1 Charterhouse Mews. London. EC1M 6BB

8.	RELATED PARTY DISCLOSURES

At the balance sheet date, included within Other debtors, is an amount of $804,000 (2021: $176,762) due from Ormet Metal Ticaret A.S, the parent company.

At the balance sheet date, included within Other debtors, is an amount of $1,672,329 (2021: $1,164,228) due from Delima Commodity Trading Ltd, the subsidiary company.

At the balance sheet date, included within Other debtors, is an amount of $357,290 (2021: included within Other creditors was an amount of $198,842 due to Delima Resources SA.) due from Delima Resources SA.

At the balance sheet date, included within Other creditors, is an amount of $1,898,758 (2021: $1,728,825) due to Delima Ores Corporation.

At the balance sheet date, included within Other debtors, is an amount of $142,939 (2021: $106,721) due from Asrometal Maden ve Ticaret S.A.

9.	ULTIMATE CONTROLLING PARTY

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.