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Registered number: 02609249










MILLMAN LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
MILLMAN LIMITED
 
 
COMPANY INFORMATION


Directors
Mr S Ghosh 
Mrs S Ghosh 
Mr S Ghosh 
Mr A Bukhtoiarov (appointed 20 April 2022, resigned 30 November 2023)




Company secretary
R Mew



Registered number
02609249



Registered office
14 St John's Road

Woking

Surrey

GU21 7SE




Independent auditors
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
MILLMAN LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 24


 
MILLMAN LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The principal activity of the company during the year comprised of international chemical trading. There have been no significant changes in the nature of these activities over that of the previous year.

Business review
 
The directors report that the Russian invasion of Ukraine caused extremely difficult trading conditions for the company and resulted in a reduced turnover, by 25%, over that of the previous year. However these same conditions provided opportunities that were otherwise unavailable, and the profitability per trade was maintained. The management team are highly focussed on sourcing from countries other than Russia, and have established new suppliers in China, Malaysia and India. 
The directors are understanding of the performance of the company which has proved to be very difficult, during 2022 we had to deal with the start of the Ukraine conflict which had an adverse effect on our business incurring a loss at the end of 2022.  As the company looks to reduce its exposure to the region they are confident that the company will return to trade profitably in the coming year.
The balance sheet has taken a hit with the losses from 2022 but it remains solvent.
 

Principal risks and uncertainties
 
The company’s operations are exposed to a variety of financial risks which are not material. In addition, the company keeps its exposure to changes in market prices to a minimum by adhering to a strict stock policy. 
The company has in place a risk management programme that seeks to limit any adverse effects of foreign exchange variances or credit risk to the group. The company’s system of internal financial control, including bespoke trade management software, is highly geared towards effective management of its business. 
The number of sales made on letter of credit dropped to 32% during the year, indicative of the difficult trading conditions. However, with the remaining sales based on TT or DP Sight, the company minimises credit risk and reduces the risk of bad debts.  

Financial key performance indicators
 
                                                                                                                                      2022        2021
Gross profit percentage                                                                                                  2.43%      3.45%
Current ratio                                                                                                                  1.09:1       1.07:01

 


Page 1

 
MILLMAN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Directors' statement of compliance with duty to promote the success of the Company
 
Millman Limited was established in 1991, specialising in the supply of chemicals and other raw material commodities in containers, rail tanks, ISO-tanks, and bulk from the CIS countries to countries in South and East Asia, along with the African continent. In doing so, we have established and maintained a reputation for high standards of business conduct. 
We are committed to providing our Suppliers and Customers with the highest quality of service, using innovative logistics solutions and fast turn-around of documentation. 
Despite having offices around the world, all management communicate effectively on a daily basis, with additional weekly management meetings and an annual management conference. Every decision that the Directors take is underpinned by the right consideration after consulting with the managers with the most appropriate knowledge and industry experience. Opportunities are sought whilst mitigating associated risks. 
The company is an equal opportunities employer where everyone receives equal treatment and career development regardless of age, gender, nationality, ethnic origin, religion, marital status, sexual orientation, or disability. Our employees are valuable assets, and remuneration is kept at a level that will enhance the company’s resources by securing and retaining quality staff who can deliver the group’s strategic ambitions in a manner consistent with both its purpose and the interest of the shareholders. 


This report was approved by the board and signed on its behalf.





................................................
Mr S Ghosh
Director
Date: 23 January 2024

Page 2

 
MILLMAN LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are 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 directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The loss for the year, after taxation, amounted to £567,194 (2021 - profit £472,362).

No dividend is recommended.

Directors

The directors who served during the year were:

Mr S Ghosh 
Mrs S Ghosh 
Mr S Ghosh 
Mr A Bukhtoiarov (appointed 20 April 2022, resigned 30 November 2023)

Page 3

 
MILLMAN LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Engagement with suppliers, customers and others

Millman Limited is an international commodities trading company. Our business development is subject to global commodities prices and macroeconomic dynamics.
Our business strategy is focused on having dedicated colleagues, ‘on-the-ground’, engaging directly with customers, storage facilities, freight counterparties and suppliers and understanding their value/supply chains. As commodities is a dynamic business impacted by global supply and demand balances, our business development will adjust and pivot to meet customer demands and supplier capacity constraints. This is also applied to freight markets which have been heavily constricted due to both the availability of fuel oil and vessels arising from the COVID-19 global pandemic.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group is office-based with energy consumption in the United Kingdom less than 40,000kWh during the
reporting period so is therefore exempt from providing information in respect of greenhouse gas emissions and
energy consumption and action taken to improve energy efficiency.





Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board and signed on its behalf.
 





................................................
Mr S Ghosh
Director
Date: 23 January 2024

Page 4

 
MILLMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILLMAN LIMITED
 

Opinion


We have audited the financial statements of Millman Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 2022 and of its loss 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 United Kingdom, including the Financial Reporting Council'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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
MILLMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILLMAN LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are 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 directors determine is 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 directors are 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
MILLMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILLMAN LIMITED (CONTINUED)


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 an Auditors' report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to , the Companies Act 2006 and UK tax legislation. 
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' report.


Page 7

 
MILLMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MILLMAN LIMITED (CONTINUED)


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 2006Our 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 an Auditors' report 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.







Mark Dickinson FCA (Senior statutory auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

24 January 2024
Page 8

 
MILLMAN LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
60,138,644
80,438,417

Cost of sales
  
(58,676,217)
(77,664,756)

Gross profit
  
1,462,427
2,773,661

Administrative expenses
  
(1,746,973)
(2,167,003)

Exceptional administrative expenses
  
(310,002)
-

Operating (loss)/profit
 5 
(594,548)
606,658

Interest receivable and similar income
 9 
90
-

Interest payable and similar expenses
 10 
(72,736)
(16,662)

(Loss)/profit before tax
  
(667,194)
589,996

Tax on (loss)/profit
 11 
100,000
(117,634)

(Loss)/profit for the financial year
  
(567,194)
472,362

Other comprehensive income for the year
  

Foreign currency retranslation
  
104,490
17,389

Other comprehensive income for the year
  
104,490
17,389

Total comprehensive income for the year
  
(462,704)
489,751

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
MILLMAN LIMITED
REGISTERED NUMBER: 02609249

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 13 
367
367

Investments
 14 
116,677
116,677

  
117,044
117,044

Current assets
  

Stocks
 15 
822,696
144,344

Debtors: amounts falling due within one year
 16 
16,212,903
17,047,533

Cash at bank and in hand
 17 
611,835
258,785

  
17,647,434
17,450,662

Creditors: amounts falling due within one year
 18 
(16,200,160)
(16,358,050)

Net current assets
  
 
 
1,447,274
 
 
1,092,612

Total assets less current liabilities
  
1,564,318
1,209,656

Creditors: amounts falling due after more than one year
  
(817,411)
-

Provisions for liabilities
  

Other provisions
 21 
(6,393)
(6,438)

  
 
 
(6,393)
 
 
(6,438)

Net assets
  
740,514
1,203,218


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
  
740,414
1,203,118

  
740,514
1,203,218


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr S Ghosh
Director
Date: 23 January 2024

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
MILLMAN LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
100
713,367
713,467


Comprehensive income for the year

Profit for the year

-
472,362
472,362

Foreign currency retranslation
-
17,389
17,389


Other comprehensive income for the year
-
17,389
17,389


Total comprehensive income for the year
-
489,751
489,751



At 1 January 2022
100
1,203,118
1,203,218


Comprehensive income for the year

Loss for the year

-
(567,194)
(567,194)

Foreign currency retranslation
-
104,490
104,490


Other comprehensive income for the year
-
104,490
104,490


Total comprehensive income for the year
-
(462,704)
(462,704)


At 31 December 2022
100
740,414
740,514


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Millman Limited (2609249) is a private company limited by shares and incorporated in England. Its registered office is 12 St John's Road, Woking, Surrey GU21 7SE. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Machap Holdings Limited as at 31 December 2022 and these financial statements may be obtained from Registrar of Companies, Crown Way, Cardiff, CF14 3UZ..

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

  
2.4

Cashflow statement exemption

The company has taken the exemption not to prepare a cashflow statement on the grounds there is a consolidated cashflow statement in the group accounts as prepared by Machap Holdings Limited.

Page 12

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional currency is USD. This differs from the presentational currency which is GBP. The reason for the difference is that the financial statements of this company are consolidated within a Group whose functional currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 14

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.14

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.

 
2.15

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.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

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 profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash
Page 15

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.18
Financial instruments (continued)

equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 16

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, 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 upon historical experience and other factirs 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 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 are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements. 


4.


Turnover

The whole of the turnover is attributable to international chemical trading.

Analysis of turnover by country of destination:

2022
2021
£
£

Rest of Europe
1,727,520
-

Rest of the world
58,411,124
80,438,417

60,138,644
80,438,417



5.


Operating (loss)/profit

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

2022
2021
£
£

Exchange differences
47,794
(12,164)


6.


Auditors' remuneration

2022
2021
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
11,900
11,330

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
140,906
999,272

140,906
999,272


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
3
4


8.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
41,426
-

41,426
-


The directors are the only key management personnel.


9.


Interest receivable

2022
2021
£
£


Other interest receivable
90
-


10.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
72,736
16,662

Page 18

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
(100,000)
117,634


(100,000)
117,634


Total current tax
(100,000)
117,634


Taxation on (loss)/profit on ordinary activities
(100,000)
117,634

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(667,195)
589,996


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(126,767)
112,099

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,386
5,533

Capital allowances for year in excess of depreciation
-
2

Other differences leading to an increase (decrease) in the tax charge
4,990
-

Group relief
18,391
-

Total tax charge for the year
(100,000)
117,634


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Exceptional items

2022
2021
£
£


Irrecoverable advance payment to supplier
310,002
-


13.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 January 2022
14,816



At 31 December 2022

14,816



Depreciation


At 1 January 2022
14,449



At 31 December 2022

14,449



Net book value



At 31 December 2022
367



At 31 December 2021
367


14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
116,677



At 31 December 2022
116,677




Page 20

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Millman (Shanghai) Limited
Ordinary
100%
Millman (India) Private Limited
Ordinary
99%


15.


Stocks

2022
2021
£
£

Finished goods and goods for resale
822,696
144,344



16.


Debtors

2022
2021
£
£


Trade debtors
5,969,869
13,095,335

Amounts owed by group undertakings
190,690
675,578

Other debtors
3,639,191
12,396

Prepayments and accrued income
6,413,153
3,264,224

16,212,903
17,047,533



17.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
611,835
258,785

Less: bank overdrafts
-
(7)

611,835
258,778


Page 21

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
-
7

Bank loans
-
1,715,421

Trade creditors
363,956
4,426,667

Amounts owed to group undertakings
8,636,050
8,821,589

Corporation tax
-
109,730

Other creditors
6,956,523
283,644

Accruals and deferred income
243,631
1,000,992

16,200,160
16,358,050



19.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Other loans
817,411
-

817,411
-



20.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
-
1,715,421


-
1,715,421


Amounts falling due 2-5 years

Other loans
817,411
-


817,411
-


817,411
1,715,421


Page 22

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

21.


Provisions





Provisions

£





At 1 January 2022
6,438


Charged to profit or loss
(45)



At 31 December 2022
6,393

The company holds a provision equal to $10,000 to cover any possible claims made for shortages in goods shipped just prior to the year end. 

Page 23

 
MILLMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary shares of £1.00 each
100
100



23.


Related party transactions

The company has taken advantage of the exemption conferred by Financial Reporting Standard 102 not to disclose transactions with members of the group headed by Machap Holdings Limited on the grounds that not 100% of the voting rights in the company are controlled within that group.


24.


Controlling party

The parent company of the smallest and largest group for which the financial statement are prepared, is Machap Holdings Limited, a company incorporated in England and Wales.  The registered office of Machap Holdings Limited is 14 St John's Road, Woking, Surrey GU21 7SE. 
The intermediate parent undertaking is SGI Group Limited and their parent company is Machap Holdings Limited. 

 
Page 24