Limited Liability Partnership registration number OC310907 (England and Wales)
MARSHELL OIL LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
MARSHELL OIL LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Lupine Logistics Ltd
LS Trading Partners Inc
LLP registration number
OC310907
Registered office
Suite 6021
128 Aldersgate Street
Barbican
London
EC1A 4AE
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
MARSHELL OIL LLP
CONTENTS
Page
Members' report
1 - 2
Members' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Reconciliation of members' interests
10 - 11
Statement of cash flows
12
Notes to the financial statements
13 - 20
MARSHELL OIL LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 1 -

The members present their annual report and financial statements for the year ended 31 January 2023.

Principal activities

The principal activity of the limited liability partnership continued to be the trade and transportation of petroleum products.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

Crond Consult Ltd
(Resigned 15 December 2023)
Headway Invest Ltd
(Resigned 15 December 2023)
Lupine Logistics Ltd
(Appointed 15 December 2023)
LS Trading Partners Inc
(Appointed 15 December 2023)
Auditor

The auditor, Bright Grahame Murray, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the LLP has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Ukraine war: Overall risk to operations

The Ukraine conflict which started in February 2022, is a very challenging time for the LLP but the members are of the opinion that with the business' strong liquidity position, the LLP will be able to sustain the business throughout this crisis.

 

The duration and impact of the Ukraine war continues to cause disruptions to business. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the LLP for future periods.

MARSHELL OIL LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 2 -
Approved by the members on 29 January 2024 and signed on behalf by:
29 January 2024
Lupine Logistics Ltd
LS Trading Partners Inc
Designated Member
Designated Member
MARSHELL OIL LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MARSHELL OIL LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARSHELL OIL LLP
- 4 -
Qualified opinion

We have audited the financial statements of Marshell Oil LLP (the 'limited liability partnership') for the year ended 31 January 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

At the year end, the LLP has trade debtors of $15,685,029 and other debtors of $2,337,379.

 

We were unable to obtain sufficient appropriate evidence on the carrying amounts of the trade debtors of $4,297,060 and other debtors of $2,337,379. Consequently, we were unable to determine whether any adjustments to these amounts were necessary.

 

The management of the LLP have not made a specific assessment of the entity's ability to continue as a going concern. As a result, the financial statements have not been prepared, in all material respects, in accordance with the requirements of the applicable financial reporting framework.

 

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 qualified opinion.

Emphasis of matter - War in Ukraine

We draw attention to the going concern accounting policy note 1.2 and note 16 of the financial statements which describes the impact of the war in Ukraine on the business operations. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.

MARSHELL OIL LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARSHELL OIL LLP
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our 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.

 

As described in the basis for qualified opinion section of our report, our audit opinion is qualified as we were unable to obtain sufficient appropriate evidence on the carrying amounts of trade debtors of $5,219,505 and other debtors of $2,301,379 and for the non specific assessment of the entity's ability to continue as a going concern by the management of the LLP.

Matters on which we are required to report by exception

Except for the matters described in the basis of qualified opinion section of our report, we have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

MARSHELL OIL LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARSHELL OIL LLP
- 6 -

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's 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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ahsan Miraj (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
14 March 2024
MARSHELL OIL LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2023
- 7 -
2023
2022
Notes
$
$
Turnover
3
5,756,940
49,962,793
Cost of sales
(5,392,650)
(49,202,740)
Gross profit
364,290
760,053
Administrative expenses
(172,916)
(566,456)
Bad debt written off
(13,000,000)
-
Operating (loss)/profit
4
(12,808,626)
193,597
Interest receivable and similar income
6
36,000
-
Interest payable and similar expenses
7
(90,000)
(153,119)
Impairment loss on investment
8
(174,398)
-
(Loss)/profit for the financial year before members' remuneration and profit shares
(13,037,024)
40,478
(Loss)/profit for the financial year before members' remuneration and profit shares
(13,037,024)
40,478
Members' remuneration charged as an expense
5
-
-
(Loss)/profit for the financial year available for discretionary division among members
(13,037,024)
40,478

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MARSHELL OIL LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023
- 8 -
2023
2022
$
$
(Loss)/profit for the financial year available for discretionary division among members
(13,037,024)
40,478
Other comprehensive income
-
-
Total comprehensive income for the year
(13,037,024)
40,478
MARSHELL OIL LLP
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 9 -
2023
2022
Notes
$
$
$
$
Fixed assets
Investments
9
325,602
1,705,000
Current assets
Debtors
10
18,152,408
36,323,009
Cash at bank and in hand
2,454,096
1,353,477
20,606,504
37,676,486
Creditors: amounts falling due within one year
11
(47,497)
(2,039,307)
Net current assets
20,559,007
35,637,179
Total assets less current liabilities and net assets attributable to members
20,884,609
37,342,179
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
21,059,650
20,730,196
Other amounts
(11,425,041)
1,611,983
9,634,609
22,342,179
Members' other interests
Members' capital classified as equity
11,250,000
15,000,000
20,884,609
37,342,179
The financial statements were approved by the members and authorised for issue on 29 January 2024 and are signed on their behalf by:
29 January 2024
Lupine Logistics Ltd
LS Trading Partners Inc
Designated member
Designated Member
Limited Liability Partnership Registration No. OC310907
MARSHELL OIL LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 10 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Members' capital (classified as debt)
Other amounts
Total
Total
2023
$
$
$
$
$
$
Amount due to members
1,611,983
Members' interests at 1 February 2022
15,000,000
-
15,000,000
20,730,196
1,611,983
22,342,179
37,342,179
Loss for the financial year available for discretionary division among members
-
(13,037,024)
(13,037,024)
-
-
-
(13,037,024)
Members' interests after loss for the year
15,000,000
(13,037,024)
1,962,976
20,730,196
1,611,983
22,342,179
24,305,155
Allocation of loss for the financial year
-
13,037,024
13,037,024
-
(13,037,024)
(13,037,024)
-
Repayments of capital
(3,750,000)
-
(3,750,000)
-
-
-
(3,750,000)
Repayment of debt (including members' capital classified as a liability)
-
-
-
329,454
-
329,454
329,454
Members' interests at 31 January 2023
11,250,000
-
11,250,000
21,059,650
(11,425,041)
9,634,609
20,884,609
MARSHELL OIL LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 11 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors]
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Members' capital (classified as debt)
Other amounts
Total
Total
2022
$
$
$
$
$
$
Amount due to members
1,571,505
Members' interests at 1 February 2021
15,000,000
-
15,000,000
20,730,196
1,571,505
22,301,701
37,301,701
Profit for the financial year available for discretionary division among members
-
40,478
40,478
-
-
-
40,478
Members' interests after profit for the year
15,000,000
40,478
15,040,478
20,730,196
1,571,505
22,301,701
37,342,179
Allocation of profit for the financial year
-
(40,478)
(40,478)
-
40,478
40,478
-
Members' interests at 31 January 2022
15,000,000
-
15,000,000
20,730,196
1,611,983
22,342,179
37,342,179
MARSHELL OIL LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023
- 12 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
1,190,619
(251,747)
Interest paid
(90,000)
(153,119)
Net cash inflow/(outflow) from operating activities
1,100,619
(404,866)
Cash and cash equivalents at beginning of year
1,353,477
1,758,343
Cash and cash equivalents at end of year
2,454,096
1,353,477
MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 13 -
1
Accounting policies
Limited liability partnership information

Marshell Oil LLP is a limited liability partnership incorporated in England and Wales. The registered office is 65 Compton Street, London, England, EC1V 0BN.

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.

The financial statements are prepared in US Dollars, which is the functional currency of the limited liability partnership. 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

Although the Ukraine war caused significant disruption to businesses in Latvia and adversely affected the results of the LLP, the members consider that the LLP maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external debt liabilities.

 

At the time of approving the financial statements, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue is measured at the fair value of the consideration received or receivable net of sales tax, trade discounts and customer returns. The LLP recognises revenue from sales when the goods are transported or delivered and when the LLP has transferred to the buyer the significant risks and rewards of ownership of the goods.

1.4
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.

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.

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 14 -
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.

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.

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 15 -
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, 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.

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
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

1.8
Foreign exchange

Transactions in currencies other than US Dollars 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.

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing the functional currency

The members are required to identify the functional currency of the limited liability partnership. In making this judgement the members have considered factors such as the currency which mainly influences both sales and cost prices, and the countries whose competitive forces and regulations affect those prices. Where the functional currency is not clearly identifiable, the members use judgement to determine which currency most faithfully represents the economic effects of the underlying transactions, events and conditions.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Establishing recoverable values of impaired assets

Other investments and loans receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If an asset’s recoverable amount is less than the asset’s carrying amount, an impairment loss is recognised. Loans and receivables are evaluated based on collectability. Changes in estimates could impact recoverable values of these assets.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2023
2022
$
$
Turnover
Petroleum trading
5,756,940
49,962,793
Other significant revenue
Interest income
36,000
-

The members are of the opinion that disclosing an analysis of turnover by geographical market would be unfairly prejudicial to the interests of the limited liability partnership. This information is therefore not disclosed.

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 17 -
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
$
$
Exchange losses
103,020
2,639
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
22,887
24,591
5
Information in relation to members
2023
2022
Number
Number
Average number of members during the year
2
2
6
Interest receivable and similar income
2023
2022
$
$
Interest income
Other interest income
36,000
-
7
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
90,000
153,119
8
Impairment loss on investment
2023
2022
$
$
Other gains and losses
(174,398)
-
9
Fixed asset investments
2023
2022
$
$
Unlisted investments
325,602
1,705,000

 

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
9
Fixed asset investments
(Continued)
- 18 -
Movements in fixed asset investments
Investments
$
Cost or valuation
At 1 February 2022
1,705,000
Disposals
(1,205,000)
At 31 January 2023
500,000
Impairment
At 1 February 2022
-
Impairment losses
174,398
At 31 January 2023
174,398
Carrying amount
At 31 January 2023
325,602
At 31 January 2022
1,705,000
10
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
15,685,029
29,766,778
Other debtors
2,337,379
6,556,231
Prepayments and accrued income
130,000
-
18,152,408
36,323,009
11
Creditors: amounts falling due within one year
2023
2022
$
$
Other creditors
-
2,039,307
Accruals and deferred income
47,497
-
47,497
2,039,307
12
Loans and other debts due to members
2023
2022
$
$
Analysis of loans
Amounts falling due within one year
9,634,609
22,342,179

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

MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 19 -
13
Members' transactions

In April 2022, one member who had 25% interest and contributed to $3,750,000 of capital of the LLP withdrew from the partnership. A net amount of $3,420,546 was repaid to him. The repayment of his interest in the LLP was done through the transfer of the LLP's investment of $1,205,000, loan receivable of $4,254,852 and loan payable of $2,039,306.

14
Related party transactions
Transactions with related parties

During the year, an amount of $Nil (2022: $222,264) was payable to Marshell International Limited for advertising and presentational services. Marshell International Limited is a company controlled by one of the members of the LLP.

15
Ultimate controlling party

In the opinion of the members, there is no overall controlling party.

16
Events after the reporting date

After the balance sheet date, the members have seen macro-economic uncertainty with regards to prices and demand for oil, gas and products as a result of the invasion of Ukraine. Furthermore, recent global developments and uncertainty in oil supply have caused further abnormally large volatility in commodity markets. The scale and duration of these developments remain uncertain but could impact earnings, cash flow and financial condition.

 

Depending on the duration of the Ukraine war and continued negative impact on economic activity, the LLP may experience further liquidity restraints in 2023-2024. The war in Ukraine continues and could cause further disruption to trade if the conflict continues. The exact impact on the business activities in the remainder of 2023 and thereafter cannot be predicted.

 

 

17
Analysis of changes in net funds
1 February 2022
Cash flows
31 January 2023
$
$
$
Cash at bank and in hand
1,353,477
1,100,619
2,454,096
Loans and other debts due to members:
- Members' capital
(20,730,196)
(329,454)
(21,059,650)
- Other amounts due to members
(1,611,983)
13,037,024
11,425,041
Balances including members' debt
(20,988,702)
13,808,189
(7,180,513)
MARSHELL OIL LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 20 -
18
Cash generated from/(absorbed by) operations
2023
2022
$
$
(Loss)/profit for the year
(13,037,024)
40,478
Adjustments for:
Finance costs recognised in profit or loss
90,000
153,119
Impairment of investment
174,398
-
Disposal of investments
1,205,000
-
Transfer of capital or debt to members
(3,420,546)
-
Movements in working capital:
Decrease/(increase) in debtors
18,170,601
(524,893)
(Decrease)/increase in creditors
(1,991,810)
79,549
Cash generated from/(absorbed by) operations
1,190,619
(251,747)
2023-01-312022-02-01falseCCH SoftwareCCH Accounts Production 2024.100falsefalseOC3109072022-02-012023-01-31OC310907bus:PartnerLLP32022-02-012023-01-31OC310907bus:PartnerLLP42022-02-012023-01-31OC310907bus:PartnerLLP12022-02-012023-01-31OC310907bus:PartnerLLP22022-02-012023-01-31OC3109072023-01-31OC3109072021-02-012022-01-31OC310907bus:LimitedLiabilityPartnershipLLP2022-02-012023-01-31OC310907bus:FRS1022022-02-012023-01-31OC310907bus:Audited2022-02-012023-01-31OC310907bus:FullAccounts2022-02-012023-01-31xbrli:purexbrli:sharesiso4217:GBP