Company Registration No. 10790434 (England and Wales)
PLATINUM COMMODITIES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
PLATINUM COMMODITIES LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
PLATINUM COMMODITIES LTD
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
$
$
$
$
Fixed assets
Investments
3
-
1,779,751
Current assets
Debtors
4
9,718,324
1,497,720
Creditors: amounts falling due within one year
5
(9,699,354)
(3,269,903)
Net current assets/(liabilities)
18,970
(1,772,183)
Total assets less current liabilities
18,970
7,568
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
18,969
7,567
Total equity
18,970
7,568
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 16 November 2020
A Delgoda
Director
Company Registration No. 10790434
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Platinum Commodities Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
27 Old Gloucester Street, London, WC1N 3AX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
US dollars
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest $.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Penfield Group Limited.
These consolidated financial statements are available from
its registered office.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
Platinum Commodities Ltd is a wholly owned subsidiary of Penfield Group Limited, a company registered in Hong Kong and the results of Platinum Commodities Ltd are included in the consolidated financial statements of Penfield Group Limited which are available from Room 604-7, 6/F, Dominion Centre, 43-59 Queen's Road East, Wanchai, Hong Kong.
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The director has considered the effects of the Coronavirus (COVID-19) pandemic, however he is of the opinion that this does not cast significant doubt upon the entity's ability to continue as a going concern. The director confirms that it is his intention to continue to support the company financially and thus
he
continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
To facilitate this, the company employs the practice of offsetting, through agreements and deeds of assignment, its balances due from debtors and due to creditors. This is a commonly adopted practice within the industry.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
1
1
3
Fixed asset investments
2019
2018
$
$
Shares in group undertakings and participating interests
-
1,779,751
Movements in fixed asset investments
Shares in group undertakings
$
Cost or valuation
At 1 January 2019
1,779,751
Disposals
(1,779,751)
At 31 December 2019
-
Carrying amount
At 31 December 2019
-
At 31 December 2018
1,779,751
In July 2019 the company disposed of its investment in Gleann Nam Fiadh Hydro Ltd (Formerly Simec GHR Abhainn Gleann Nam Fiadh Limited) for a consideration of £1,394,824.
4
Debtors
2019
2018
Amounts falling due within one year:
$
$
Trade debtors
9,718,323
1,497,719
Other debtors
1
1
9,718,324
1,497,720
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
5
Creditors: amounts falling due within one year
2019
2018
$
$
Trade creditors
9,666,028
1,469,392
Corporation tax
2,674
1,774
Other creditors
30,652
1,798,737
9,699,354
3,269,903
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Stephen Terence Costar FCCA.
The auditor was Slaven Jeffcote LLP.
7
Events after the reporting date
COVID-19
Following the year end, the world has seen the outbreak of the COVID-19 pandemic and as such market conditions may have changed significantly. As a result of this, trading in commodities has slowed considerably. The director has considered the effects of COVID-19 but does not believe a reliable estimate of its financial impact on the company can be made.
8
Directors' transactions
Dividends totalling $0 (2018 - $0) were paid in the year in respect of shares held by the company's directors.
Following the disposal of the company's subsidiary, amounts due to the director in the sum of $1,779,751 were repaid in full. No amounts were owing to the director as at the balance sheet date.
9
Parent company
The parent company and the smallest group for which consolidated financial statements are drawn up of which Platinum Commodities Ltd is a member is Penfield Group Limited, a company registered in Hong Kong with its registered office at: Room 604-7, 6/F, Dominion Centre, 43-59 Queen's Road East, Wanchai, Hong Kong.
PLATINUM COMMODITIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
10
Non-audit services provided by auditor
In common with many businesses of our size and nature we
may
use our auditor
and its connected companies
to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
In common with many other businesses of our size and nature we
may
use ou
r auditor
to provide tax advice and to represent us, as necessary, at tax tribunals.