CNM Chemicals And Minerals Trading Co. Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 10664214 (England and Wales)
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Company Information
Directors
Hanri Levi
Yusuf Rafael
Jean Lammiman
John Hinkley
Company number
10664214
Registered office
6th Floor 9 Appold Street
London
United Kingdom
EC2A 2AP
Auditor
Moore Kingston Smith LLP
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 20
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Fair Review of the Business

Trading conditions in 2023 had commenced the year stronger than in 2022 with good volumes of trading.

 

The directors consider the key performance indicators of the Company to be level of gross profit and volume of trading. The company’s results for the year ended 31 December 2023 were in line with revised budgets, reflecting good performances in all product ranges.

 

 

 

$

 

$

 

 

2023

 

2022

Tonnes ('000)

 

103

 

140

Average tonne

 

889

 

1628

Gross margin

 

2%

 

4%

 

The company continues to make good progress on its product sourcing and ranges, and the short term cash holdings are in place to meet the proposed commitments. Our operational focus remains firmly on maintaining our long-established reputation combined with a strong balance sheet, the directors believe the company continues to be well positioned for the future despite some economic problems in the market.

Principal Risks and Uncertainties

The financial risk management policy of the company is determined by the directors, and kept under review to enable the company to achieve its long term growth objectives.

 

The company adopts a policy of financing working capital through retained earnings and borrowings. The main financial assets are cash, amounts owed by group undertakings that can be repaid quickly.

 

The directors consider the principal risk and uncertainties facing the company to be industry-wide material supply issues as the result of geopolitics, Russian Ukraine war and a potential reduction in activity in the current period of economic uncertainty. The directors regularly monitor these matters and believe there are adequate plans in place to mitigate the risks to ensure the company’s continued success.

 

Currency risk

The company’s trade and monetary assets and liabilities are largely undertaken in USD so has limited foreign currency risk. Some of the company’s customers trade in Turkish lira, the weakening of the Turkish lira may reduce demand.

 

Liquidity and credit risk

The company considers its liquidity and credit risk to be quite low and manageable. The company usually requires payments for goods up front from customers, which together with the retained profits allows the company to maintain adequate cash and working capital. In addition, shareholder loans can be accessed by the company when required to fund business opportunities and to support our existing businesses as and when required.

Future development

The company remains focused on its wholesale of chemical products. Maybe a diversification or (depending on the possibilities and demand of the market), new sources and products should be sought in 2024.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

On behalf of the board

Hanri Levi
Director
3 September 2024
CNM Chemicals And Minerals Trading Co. Limited
Directors' Report
For the year ended 31 December 2023
Page 3

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

Principal activities

The principal activity of the company was that of the wholelsale of chemical products.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Hanri Levi
Yusuf Rafael
Jean Lammiman
John Hinkley
Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, the directors have taken the exemption not to report on its emissions, energy consumption or energy efficiency activities as the company qualifies as a low energy user under these regulations.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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

CNM Chemicals And Minerals Trading Co. Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Hanri Levi
Director
3 September 2024
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Independent Auditor's Report
To the Members of CNM Chemicals and Minerals Trading Co. Limited
Page 5
Opinion

We have audited the financial statements of CNM Chemicals and Minerals Trading Co. Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, 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 FRS 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:

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 Auditor's 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 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 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.

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 directors 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.

 

We have nothing to report in this regard.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Independent Auditor's Report (Continued)
To the Members of CNM Chemicals and Minerals Trading Co. Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Independent Auditor's Report (Continued)
To the Members of CNM Chemicals and Minerals Trading Co. Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Independent Auditor's Report (Continued)
To the Members of CNM Chemicals and Minerals Trading Co. Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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.

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 2006. Our 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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Darren Jordan (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
4 September 2024
Chartered Accountants
4 Victoria Square
Statutory Auditor
St Albans
AL1 3TF
CNM Chemicals And Minerals Trading Co. Limited
Profit and Loss Account
For the year ended 31 December 2023
Page 9
2023
2022
Notes
$
$
Turnover
3
91,768,084
227,953,889
Cost of sales
(90,271,510)
(218,765,659)
Gross profit
1,496,574
9,188,230
Administrative expenses
(977,424)
(8,112,106)
Operating profit
4
519,150
1,076,124
Interest payable and similar expenses
8
(39,918)
(5,709)
Profit before taxation
479,232
1,070,415
Tax on profit
9
(112,718)
(311,379)
Profit for the financial year
366,514
759,036

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Balance Sheet
As at 31 December 2023
31 December 2023
Page 10
2023
2022
Notes
$
$
$
$
Current assets
Stock
10
5,240,933
8,114,943
Debtors
11
65,686,036
57,201,545
Cash at bank and in hand
305,254
43,410
71,232,223
65,359,898
Creditors: amounts falling due within one year
12
(67,320,650)
(61,814,839)
Net current assets
3,911,573
3,545,059
Capital and reserves
Called up share capital
13
400,000
400,000
Profit and loss reserves
3,511,573
3,145,059
Total equity
3,911,573
3,545,059
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Hanri Levi
Director
Company Registration No. 10664214
CNM Chemicals And Minerals Trading Co. Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 11
Share capital
Profit and loss reserves
Total
$
$
$
Balance at 1 January 2022
400,000
2,386,023
2,786,023
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
759,036
759,036
Balance at 31 December 2022
400,000
3,145,059
3,545,059
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
366,514
366,514
Balance at 31 December 2023
400,000
3,511,573
3,911,573
CNM Chemicals And Minerals Trading Co. Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 12
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from operations
15
504,416
783,138
Interest paid
(39,918)
(5,709)
Income taxes paid
(202,654)
(262,132)
Net cash inflow from operating activities
261,844
515,297
Financing activities
Repayment of bank loans
-
0
(1,055,200)
Net cash used in financing activities
-
(1,055,200)
Net increase/(decrease) in cash and cash equivalents
261,844
(539,903)
Cash and cash equivalents at beginning of year
43,410
583,313
Cash and cash equivalents at end of year
305,254
43,410
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 13
1
Accounting policies
Company information

CNM Chemicals and Minerals Trading Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, United Kingdom, EC2A 2AP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In addition, common controlled service providers have indicated that they will provide financial support to the company for a minimum of 12 months from the date of signing the report and this can be extended if the circumstance is required. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Stock

Stock 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 stock to their present location and condition.

 

Stock 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 stock 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.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 14
1.5
Cash at bank and in hand

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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 company 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.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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 being measured at 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 company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors 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.

CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 17
3
Turnover
2023
2022
$
$
Turnover analysed by class of business
Chemical sales
91,768,084
227,953,889
2023
2022
$
$
Turnover analysed by geographical market
Turkey
91,768,084
227,953,889
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
$
$
Exchange differences
50,751
(154,090)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
$
$
For audit services
Audit of the financial statements of the company
45,533
25,484
For other services
Taxation compliance services
2,611
2,412
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was 4 (2022: 4). The key management personnel are made up of the 4 directors.

2023
2022
Number
Number
Management
4
4

Their aggregate remuneration comprised:

2023
2022
$
$
Wages and salaries
7,007
7,768
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 18
7
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
7,007
7,768
8
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
39,918
5,709
9
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
112,718
203,379
Deferred tax
Origination and reversal of timing differences
-
0
108,000
Total tax charge
112,718
311,379

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
$
$
Profit before taxation
479,232
1,070,415
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
112,718
203,379
Change in unrecognised deferred tax assets
-
0
108,000
Taxation charge for the year
112,718
311,379
10
Stock
2023
2022
$
$
Finished goods and goods for resale
5,240,933
8,114,943
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 19
11
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
62,767,058
55,358,966
Other debtors
2,911,378
1,841,260
Prepayments and accrued income
7,600
1,319
65,686,036
57,201,545
12
Creditors: amounts falling due within one year
2023
2022
$
$
Trade creditors
43,176,321
34,179,529
Corporation tax
112,718
202,654
Other creditors
5,365,943
9,259,066
Accruals and deferred income
18,665,668
18,173,590
67,320,650
61,814,839
13
Share capital
2023
2022
$
$
Ordinary share capital
Issued and fully paid
400,000 shares of $1 each
400,000
400,000
400,000
400,000
14
Related party transactions
Included in creditors is $55,397,037 (2022: $47,447,309) due to companies with common directors. Included in creditors is $728,675 (2022: $728,675) due to two of the directors.
Included in debtors is $64,181,498  (2022: $52,256,439) due from companies with common directors.
Expenditure in the year from companies of common directors totalled to $20,994,051 (2022: $26,954,816).
Revenue in the year from companies of common directors totalled to $12,568,676 (2022: $45,352,676).
CNM Chemicals and Minerals Trading Co. Limited
CNM Chemicals And Minerals Trading Co. Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
15
Cash generated from operations
2023
2022
$
$
Profit for the year after tax
366,514
759,036
Adjustments for:
Taxation charged
112,718
311,379
Finance costs
39,918
5,709
Movements in working capital:
Decrease in stock
2,874,010
25,582,199
Increase in debtors
(8,484,491)
(30,696,588)
Increase in creditors
5,595,747
4,821,403
Cash generated from operations
504,416
783,138
16
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
43,410
261,844
305,254
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