Arakatu LLP
Annual Report and Unaudited Financial Statements
For the year ended 31 December 2022
Pages for Filing with Registrar
Limited Liability Partnership Registration No. OC316425 (England and Wales)
Arakatu LLP
Limited Liability Partnership Information
Designated members
Arakatu LLC
T R Williams
Limited liability partnership number
OC316425
Registered office
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
United Kingdom
UB3 1HA
Accountants
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Business address
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
UB3 1HA
Arakatu LLP
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Arakatu LLP
Balance Sheet
As at 31 December 2022
31 December 2022
Page 1
2022
2021
Notes
$
$
$
$
Fixed assets
Investments
4
950,231
950,231
Current assets
Debtors
6
1,015,190
961,491
Cash and cash equivalents
466
-
1,015,656
961,491
Creditors: amounts falling due within one year
7
(1,811,394)
(1,704,943)
Net current liabilities
(795,738)
(743,452)
Total assets less current liabilities
154,493
206,779
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
(17,163,765)
(17,079,971)
Members' other interests
Members' capital classified as equity
17,318,258
17,318,258
Other reserves classified as equity
-
(31,508)
154,493
206,779
Total members' interests
Loans and other debts due from members
(17,163,765)
(17,079,971)
Members' other interests
17,318,258
17,286,750
154,493
206,779

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

Arakatu LLP
Balance Sheet (Continued)
As at 31 December 2022
31 December 2022
Page 2

For the financial year ended 31 December 2022 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 2 October 2023 and are signed on their behalf by:
02 October 2023
Arakatu LLC
T R Williams
Designated member
Designated Member
Limited Liability Partnership Registration No. OC316425
Arakatu LLP
Notes to the Financial Statements
For the year ended 31 December 2022
Page 3
1
Accounting policies
Limited liability partnership information

Arakatu LLP is a limited liability partnership incorporated in England and Wales. The registered office is The Shipping Building, The Old Vinyl Factory, Blyth Road, Hayes, London, United Kingdom, UB3 1HA.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 majority of the partnership's transactions are denominated in United States Dollars ($). The members are therefore of the view that this currency is the best basis for presenting the partnership's results.

 

Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The Partnership had net assets at the 31 December 2022 of $154,493 (2021: $206,779). The members believes that the partnership will have sufficient funds to settle all of its liabilities as they fall due for at least 12 months from signing the accounts.

1.3
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 4

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

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 limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
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.

1.6
Financial instruments

The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 5
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 limited liability partnership 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 payments 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. Amounts 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.

Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 6
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.7
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 in the period are included in profit or loss.

2
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
Total
-
0
-
0
3
Information in relation to members
2022
2021
Number
Number
Average number of members during the year
5
5
4
Fixed asset investments
2022
2021
$
$
Shares in group undertakings and participating interests
950,231
950,231
Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 7
5
Subsidiaries

Details of the limited liability partnership's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Agromercantil Arakatu Ltda
Brazil
Cultivation, raising commercialisation, import and export of crops and livestock and participation as associate partner in other companies.
Ordinary
99.00
-
Agropecuaria Arakatu Ltda
Brazil
Cultivation, raising commercialisation, import and export of crops and livestock and participation as associate partner in other companies.
Ordinary
89.15
-
Cotton Placas Ltda
Brazil
Cultivation, raising commercialisation, import and export of crops and livestock and participation as associate partner in other companies.
Ordinary
-
88.26
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
$
$
Agromercantil Arakatu Ltda
15,699
-
Agropecuaria Arakatu Ltda
2,263,476
557,850
Cotton Placas Ltda
297,901
62,112

Agromercantil Arakatu Ltda remained dormant throughout the year.

 

Cotton Placas is a 99% owned subsidiary of Agropecuaria Arakatu Ltda.

 

The amounts stated for Profit for the year are stated in United States Dollar and translated at the average rate of 5.1681 for the year ended 31 December 2022 from Brazilian Real.

 

The amounts stated Capital and Reserves are stated in United States Dollar and translated at closing rate of 5.2870 at 31 December 2022 from Brazilian Real.

Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 8
6
Debtors
2022
2021
Amounts falling due within one year:
$
$
Amounts owed by group undertakings
994,313
940,644
Other debtors
20,877
20,847
1,015,190
961,491
7
Creditors: amounts falling due within one year
2022
2021
$
$
Amounts owed to group undertakings
284,976
256,546
Other creditors
1,079,146
1,048,413
Accruals and deferred income
447,272
399,984
1,811,394
1,704,943
8
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

Arakatu LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 9
9
Related party transactions

Included within amounts due to group undertakings within one year is an amount payable to Agropecuaria Arakatu Ltda, a subsidiary incorporated in Brazil, of $284,976 (2021: $256,546). This balance is interest free and is repayable on demand.

 

Included within amounts due from group undertakings is a loan made to Agropecuaria Arakatu Ltda, a subsidiary incorporated in Brazil, of $535,500 (2021: $535,500). Interest is charged at 10% (2021: 10%) per annum and this balance is repayable with 3 months notice. The interest accrued in the year was $53,669 (2021: $53,669) and the total interest outstanding at year end was $458,812 (2021: $405,114).

 

At the year end Timothy Williams, a designated member, had loan balances amounting to $624,000 (2021: $624,000) due from the LLP. These amounts are repayable with 3 months notice and incur interest at 7% per annum. The interest accrued for the year was $43,680 (2021: $43,680) and the total interest outstanding at the year end was $412,508 (2021: $368,828). These amounts are included in other creditors and accruals and deferred income respectively. The interest payable on these loans is included in interest payable and similar expenses.

 

During the year, $14,628 (2021: $40,766) of expenses was paid on behalf of the LLP by Haym Investments LLP, a LLP in which Arakatu LLC and Harm Burema are members. At the balance sheet date $469,772 (2021: $424,411) was outstanding as owed to Haym Investments LLP and is included within creditors falling due within one year which included accrued interest to date at 7% per annum. The total interest outstanding at the year end was $30,733 (2021: $27,765). The loan is repayable on demand.

 

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense has been recognised in the year (2021: $nil) in respect of bad debts from related parties. There are no provisions for uncollectible receivables related to the amounts outstanding.

 

2022-12-312022-01-01false03 October 2023CCH SoftwareCCH Accounts Production 2023.200OC3164252022-01-012022-12-31OC316425bus:PartnerLLP12022-01-012022-12-31OC316425bus:PartnerLLP22022-01-012022-12-31OC3164252022-12-31OC3164252021-01-012021-12-31OC316425bus:LimitedLiabilityPartnershipLLP2022-01-012022-12-31OC316425bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-31OC316425bus:FRS1022022-01-012022-12-31OC316425bus:AuditExemptWithAccountantsReport2022-01-012022-12-31OC316425bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:shares