Company registration number 3117815 (England and Wales)
RICHMOND COMMODITIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
RICHMOND COMMODITIES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
RICHMOND COMMODITIES LIMITED
COMPANY INFORMATION
Directors
B Morrison
C Horn
R B B Morrison
A M G Pearson
Secretary
Caitlin Horn
Company number
3117815
Registered office
3rd Floor
114a Cromwell Road
London
SW7 4AG
Auditors
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
RICHMOND COMMODITIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
3
8,474
1,546
Current assets
Debtors
4
86,062
92,829
Cash at bank and in hand
328,059
487,160
414,121
579,989
Creditors: amounts falling due within one year
5
(63,059)
(68,064)
Net current assets
351,062
511,925
Total assets less current liabilities
359,536
513,471
Creditors: amounts falling due after more than one year
6
(24,351)
(35,074)
Provisions for liabilities
(1,318)
-
0
Net assets
333,867
478,397
Capital and reserves
Called up share capital
7
145,283
145,283
Profit and loss reserves
188,584
333,114
Total equity
333,867
478,397

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A- small entities.

The financial statements were approved by the board of directors and authorised for issue on 25 April 2024 and are signed on its behalf by:
R B B Morrison
Director
Company Registration No. 3117815
RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Richmond Commodities Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 114a Cromwell Road, London, SW7 4AG.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The 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 $.

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

1.2
Turnover

Turnover, which is stated net of value added tax, represents the net profit on commodity contracts and amounts invoiced to third parties in respect of net commission and net fees.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Office Equipment
25% p.a on reducing balance basis
Computer Equipment
33.3% p.a on straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of income and retained earnings.

RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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.

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.

RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

 

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

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.

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Foreign exchange

The currency of the majority of trading transactions is the United States Dollar (US$) and these financial statements are therefore denominated in that currency.

 

Where contracts are entered into for the forward purchase or sale of other currencies, the related transactions are translated into US$ at the contract rates. Where such currency contracts are not entered into, transactions other than US$ are translated into US$ at the average exchange rate for the year.

 

Non-monetary assets and liabilities denominated in currencies other than US$ have been translated at their historical rate of exchange.

 

Other non-US$ denominated assets and liabilities not covered by foreign currency contracts are translated into US$ at the closing rates of exchange at the balance sheet date. All differences arising are taken to the profit and loss account. The exchange rate used at the year end was US$1.3545:£1 (2020: US$1.3606:£1).

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
2
3
3
Tangible fixed assets
Office Equipment
Computer Equipment
Total
$
$
$
Cost
At 1 January 2023
1,865
87,329
89,194
Additions
-
0
9,320
9,320
At 31 December 2023
1,865
96,649
98,514
Depreciation and impairment
At 1 January 2023
1,865
85,783
87,648
Depreciation charged in the year
-
0
2,392
2,392
At 31 December 2023
1,865
88,175
90,040
Carrying amount
At 31 December 2023
-
0
8,474
8,474
At 31 December 2022
-
0
1,546
1,546

 

RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
44,265
67,497
Amounts owed by group undertakings
20,030
7,132
Other debtors
21,767
18,137
86,062
92,766
Deferred tax asset
-
0
63
86,062
92,829

Trade debtors disclosed above are measured at amortised cost.

Total trade debtors (net of allowances) held by the company at 31 December 2023 amounted to $44,265 (2022 - $67,497), comprising the amount presented above and trade debtors classified as held for sale amounting to $- (2022 - $-).

5
Creditors: amounts falling due within one year
2023
2022
$
$
Bank loans
12,820
11,799
Trade creditors
11,293
13,394
Corporation tax
9,475
5,494
Other taxation and social security
7,436
7,346
Other creditors
22,035
30,031
63,059
68,064
6
Creditors: amounts falling due after more than one year
2023
2022
$
$
Bank loans and overdrafts
24,351
35,074
7
Called up share capital
2023
2022
$
$
Ordinary share capital
Issued and fully paid
100,000 Ordinary Shares of $1.45283 each
145,283
145,283
RICHMOND COMMODITIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Robert Moore
The auditor was Bright Grahame Murray
9
Related party transactions

Included in debtors is an amount of $20,030 (2022: $7,132) due from Areca Trading Limited, the company's parent undertaking. The loan is repayable on demand and is secured by a fixed and floating charge over the assets of Areca Trading Limited.

 

 

 

10
Parent undertaking

The company's ultimate parent undertaking is Areca Trading Limited, a company registered in England and Wales, whose registered office is 3rd Floor, 114a Cromwell Road, Kensington, London SW7 4AG.

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