Company Registration No. 10905029 (England and Wales)
OROSUR MINING (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2019
PAGES FOR FILING WITH REGISTRAR
OROSUR MINING (UK) LIMITED
CONTENTS
Page
Director's report
1
Balance sheet
2
Notes to the financial statements
3 - 5
OROSUR MINING (UK) LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 MAY 2019
- 1 -
The director presents his annual report and financial statements for the period ended 31 May 2019.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
Mr P I Salazar Blanco
Mr J Walmsley
(Resigned 16 March 2019)
Auditor
In accordance with the company's articles, a resolution proposing that Mercer & Hole be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr P I Salazar Blanco
Director
27 February 2020
OROSUR MINING (UK) LIMITED
BALANCE SHEET
AS AT 31 MAY 2019
31 May 2019
- 2 -
2019
2018
Notes
$
$
$
$
Current assets
Cash at bank and in hand
19,847
11,706
19,847
11,706
Creditors: amounts falling due within one year
3
(834,705)
(436,834)
Net current liabilities
(814,858)
(425,128)
Capital and reserves
Called up share capital
4
130
130
Profit and loss reserves
(814,988)
(425,258)
Total equity
(814,858)
(425,128)
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 by the board of directors and authorised for issue on 27 February 2020 and are signed on its behalf by:
Mr P I Salazar Blanco
Director
Company Registration No. 10905029
OROSUR MINING (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MAY 2019
- 3 -
1
Accounting policies
Company information
Orosur Mining (UK) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
21 Lombard Street, London, EC3V 9AH.
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
dollars
which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest $
1
.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
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
following a confirmation of ongoing support from the parent company, on which the company is dependent
.
In the latest consolidated financial statements of the parent company Orosur Mining Inc. and its subsidiaries, the parent company included extensive going concern disclosure. The disclosure highlighted that the parent company's continuance as a going concern is dependent upon its ability to obtain adequate financing and to reach profitable levels of operations. The parent company has been successful in the past in obtaining sufficient funding and although there is no assurance that it will be able to obtain adequate financing in the future, having reviewed current trading performance and future cash flow projections, the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
These financial statements have been prepared for a period of nine months to 31 May 2019 as the company shortened its reporting period end to match that of its parent company. Therefore the
comparative amounts presented in the financial statements (including
the related notes)
cover a period of thirteen months from incorporation to 31 August 2018, and are there
not entirely comparable.
1.4
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
OROSUR MINING (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2019
1
Accounting policies
(Continued)
- 4 -
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.
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 1 (2018 - 1).
OROSUR MINING (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MAY 2019
- 5 -
3
Creditors: amounts falling due within one year
2019
2018
$
$
Bank loans and overdrafts
-
511
Trade creditors
-
10,538
Amounts owed to group undertakings
829,409
326,674
Taxation and social security
-
1,401
Other creditors
5,296
97,710
834,705
436,834
4
Called up share capital
2019
2018
$
$
Ordinary share capital
Issued and fully paid
100 Ordinary shares of $1.30 each
130
130
5
Audit report information
As the
profit and loss account
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
:
Material uncertainty related to going concern
Attention was drawn to note 1.2 in the financial statements which describes matters and conditions that indicate the existence of a material uncertainty that may cast significant doubt over the company's ability to continue as a going concern. The audit report was not modified in respect of this matter.
The auditor's report was unqualified.
The senior statutory auditor was Miss Helen Cain BA FCA.
The auditor was Mercer & Hole.
6
Parent company
The immediate and ultimate parent company of Orosur Mining (UK) Limited is Orosur Mining Inc., a company registered in Canada. The corporate office is located at Saldanha Da Gama 3622 of. 509, Montevideo, Uruguay, and the address of its registered office is Suite 1010 - 1075 West Georgia Street, Vancouver, British Columbia, Canada, V6E 3C9.