Limited Liability Partnership registration No: OC344243 (England and Wales)
KOREL ENERGY LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KOREL ENERGY LLP
CONTENTS
Page
Members' report
1 - 2
Statement of comprehensive income
3
Statement of financial position
4 - 5
Statement of changes in equity
6
Statement of cash flows
7
Notes to the financial statements
8 - 14
KOREL ENERGY LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity continues to be that of the international shipping trade of solid fuels and grain.

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:

AKA Investments Ltd
Kuro Investments Ltd
Policy on members' drawings

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".

On behalf of the members
..............................
..............................
AKA Investments Ltd
Kuro Investments Ltd
Designated Member
Designated Member
By Soller Management Group Ltd
By Soller Management Group Ltd
Sole Director of AKA Investments Ltd
Sole Director of Kuro Investments Ltd
Authorised Signatory
Authorised Signatory
18 July 2024
18 July 2024
KOREL ENERGY LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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.

 

KOREL ENERGY LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
$
$
Revenue
3
9,512,089
3,378,922
Cost of sales
(8,250,019)
(1,744,386)
Gross profit
1,262,070
1,634,536
Administrative expenses
(1,024,150)
(1,726,996)
Operating profit/(loss)
4
237,920
(92,460)
Finance costs
6
(56,016)
(4,352)
Profit/(loss) for the financial year before members' remuneration and profit shares available for discretionary division among members
181,904
(96,812)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

KOREL ENERGY LLP
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
$
$
$
$
Current assets
Trade and other receivables
7
58,898
6,068,898
Cash and cash equivalents
367,085
24,965
425,983
6,093,863
Current liabilities
8
(725,655)
(6,575,439)
Net current liabilities
(299,672)
(481,576)
Represented by:
Loans and other debts due to members within one year
10
Amounts due in respect of profits
(1,400,876)
(1,582,780)
Members' other interests
10
Members' capital classified as equity
1,101,204
1,101,204
(299,672)
(481,576)
Total members' interests
10
Loans and other debts due to members
(1,400,876)
(1,582,780)
Members' other interests
1,101,204
1,101,204
(299,672)
(481,576)

For the financial year ended 31 December 2023 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 in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

KOREL ENERGY LLP
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 5 -
The financial statements were approved by the members and authorised for issue on 18 July 2024 and are signed on their behalf by:
18 July 2024
AKA Investments Ltd
Kuro Investments Ltd
Designated Member
Designated Member
By Soller Management Group Ltd
By Soller Management Group Ltd
Sole Director of AKA Investments Ltd
Sole Director of Kuro Investments Ltd
Authorised Signatory
Authorised Signatory
Limited Liability Partnership Registration No. OC344243
KOREL ENERGY LLP
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Members' capital
Other reserves
Total
$
$
$
Balance at 1 January 2022
1,109,364
-
1,109,364
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(96,812)
(96,812)
Profit allocations
-
96,812
96,812
Other movements
(8,160)
-
(8,160)
Balance at 31 December 2022
1,101,204
-
1,101,204
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
181,904
181,904
Profit allocations
-
(181,904)
(181,904)
Balance at 31 December 2023
1,101,204
-
1,101,204
KOREL ENERGY LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from/(absorbed by) operations
14
398,136
(149,674)
Interest paid
(56,016)
(4,352)
Net cash inflow/(outflow) from operating activities
342,120
(154,026)
Financing activities
Payments to members
-
(160)
Net cash used in financing activities
-
(160)
Net increase/(decrease) in cash and cash equivalents
342,120
(154,186)
Cash and cash equivalents at beginning of year
24,965
179,151
Cash and cash equivalents at end of year
367,085
24,965
KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
1
Accounting policies
Limited liability partnership information

Korel Energy LLP is a limited liability partnership incorporated in England and Wales. The registered office is 19 Leyden Street, London, E1 7LE.

 

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.

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 $1.

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

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership 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
Revenue

Turnover represents amounts receivable for goods net of VAT and trade discounts and is recognised on dispatch from the loading port or receipt of the goods, depending on the contract.

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.

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.

1.5
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
1.6
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.

1.7
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 trade and other receivables 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.

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.

KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
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, bank loans 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 receipts 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 payables 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 payables 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.

1.8
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs.

1.9
Foreign exchange

The Limited Liability Partnership's accounting records are maintained in US Dollars.

 

Monetary assets and liabilities denominated in foreign currencies are translated into US Dollars at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.10
Taxation

The taxation payable on profits is the sole liability of the members during the year. Consequently, these financial statements do not include any calculation of taxes payable by the members.

 

Furthermore, none of the LLP's activities during the period under review take place in the United Kingdom. The LLP is owned and controlled by parties outside of the United Kingdom, therefore no UK tax liability arises on the profits generated.

1.11

Exchange rates

Balances denominated in foreign currencies as at 31 December 2022 have been translated at the following rates:

 

1 British Pound = 1.273 US Dollars (2022 - 1 British Pound = 1.204 US Dollars)

 

1 Euro = 1.104 US Dollars (2022 - 1 Euro = 1.068 US Dollars)

 

 

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.

In the opinion of the members there are no key judgements, estimates or assumptions which affect the financial statements.

3
Revenue

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

2023
2022
$
$
Turnover
Solid Fuels
8,609,089
2,475,922
Management services
903,000
903,000
9,512,089
3,378,922
Revenue analysed by geographical market
2023
2022
$
$
Europe, Middle East and Africa
9,512,089
3,378,922
KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
$
$
Exchange gains
98,470
(7,430)
Fees payable to the LLP's auditors for the audit of the LLP's annual accounts
-
0
6,622
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was Nil (2021 - Nil)

6
Finance costs
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Other interest
56,016
4,352
7
Trade and other receivables
2023
2022
Amounts falling due within one year:
$
$
Trade receivables
57,680
57,680
Other receivables
1,218
1,218
Prepayments and accrued income
-
6,010,000
58,898
6,068,898
8
Current liabilities
2023
2022
$
$
Trade payables
718,807
570,619
Deferred income
-
2,992,780
Other payables
-
3,000,000
Accruals and deferred income
6,848
12,040
725,655
6,575,439
9
Loans and other debts due to members
2023
2022
$
$
Analysis of loans
Amounts falling due within one year
(1,400,876)
(1,582,780)

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

KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
10
Reconciliation of Members' Interests
Equity
Debt
Total
Members' other interests
Members'
interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
2023
$
$
$
$
$
Amount due to members
(1,582,780)
Members' interests at 1 January 2023
1,101,204
-
1,101,204
(1,582,780)
(481,576)
Profit for the financial year available for discretionary division among members
-
181,904
181,904
-
181,904
Members' interests after profit for the year
1,101,204
181,904
1,283,108
(1,582,780)
(299,672)
Allocation of profit for the financial year
-
(181,904)
(181,904)
181,904
-
Members' interests at 31 December 2023
1,101,204
-
1,101,204
(1,400,876)
(299,672)
Amounts due to members
(1,400,876)
11
Related party transactions
Transactions with related parties

During the year the limited liability partnership entered into the following transactions with related parties:

Management charge income
Representative office expenses
2023
2022
2023
2022
$
$
$
$
-
862,000
-
1,535,750
12
Members' transactions

No guarantees have been given or received.

13
Ultimate controlling party

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

KOREL ENERGY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
14
Cash generated from/(absorbed by) operations
2023
2022
$
$
Profit/(loss) for the year
181,904
(96,812)
Adjustments for:
Finance costs recognised in profit or loss
56,016
4,352
Movements in working capital:
Decrease/(increase) in trade and other receivables
6,010,000
(5,571,911)
(Decrease)/increase in trade and other payables
(2,857,004)
2,521,917
(Decrease)/increase in deferred income
(2,992,780)
2,992,780
Cash generated from/(absorbed by) operations
398,136
(149,674)
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