Company registration number 12972001 (England and Wales)
MACHAP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MACHAP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr Sushovan Ghosh
Mr Sukanta Ghosh
Secretary
Mr Richard Mew
Company number
12972001
Registered office
14 St. Johns Road
Woking
Surrey
GU21 7SE
Auditor
Elliotts Shah
5th Floor
37 High Holborn
London
WC1V 6AA
MACHAP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
MACHAP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The directors report that the Russian invasion of Ukraine continues to cause extremely difficult trading conditions for the group and resulted in a reduced turnover, by 34%, over that of the previous year. However these same conditions provided opportunities that were otherwise unavailable, and the profitability per trade was maintained. The management team are highly focussed on sourcing from countries other than Russia, and have established new suppliers in China, Malaysia and India.

The directors are understanding of the performance of the group which has dropped over the past two years. During 2023 we had to deal with the continuation of the Ukraine conflict together with stricter banking regulations which causes banking transactions to take much longer than they have in the past. However, as the group looks to reduce its exposure to the region they are confident that the company will return to trade profitably in the coming year.

The balance sheet has taken a hit with the losses from 2023 but it remains solvent.

Principal risks and uncertainties

The company’s operations are exposed to a variety of financial risks which are not material. In addition, the company keeps its exposure to changes in market prices to a minimum by adhering to a strict stock policy.

The company has in place a risk management programme that seeks to limit any adverse effects of foreign exchange variances or credit risk to the group. The company’s system of internal financial control, including bespoke trade management software, is highly geared towards effective management of its business.

Key performance indicators

 

2023 2022

Gross profit percentage                          3.91% 2.38%

 

Directors' statement of compliance with duty to promote the success of the Group

The group of companies held by Machap was established in 1991, specialising in the supply of chemicals and other raw material commodities together with consulting and admin support as the opportunities present themselves. In doing so, we have established and maintained a reputation for high standards of business conduct.

We are committed to providing our Suppliers and Customers with the highest quality of service, using innovative logistics solutions and fast turn-around of documentation.

Despite having offices around the world, all management communicate effectively on a daily basis, with additional weekly management meetings and an annual management conference. Every decision that the Directors take is underpinned by the right consideration after consulting with the managers with the most appropriate knowledge and industry experience. Opportunities are sought whilst mitigating associated risks.

The company is an equal opportunities employer where everyone receives equal treatment and career development regardless of age, gender, nationality, ethnic origin, religion, marital status, sexual orientation, or disability. Our employees are valuable assets, and remuneration is kept at a level that will enhance the company's resources by securing and retaining quality staff who can deliver the group's strategic ambitions in a manner consistent with both its purpose and the interest of the shareholders.

 

MACHAP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr Sushovan Ghosh
Director
28 May 2025
MACHAP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr Sushovan Ghosh
Mr Sukanta Ghosh
Supplier payment policy

Millman Limited is an international commodities trading company which generates in excess of 90% of the groups turnover. Our business development is subject to global commodities prices and macroeconomic dynamics.

 

Our business strategy is focused on having dedicated colleagues, ‘on-the-ground’, engaging directly with customers, storage facilities, freight counterparties and suppliers and understanding their value/supply chains.

As commodities is a dynamic business impacted by global supply and demand balances, our business development will adjust and pivot to meet customer demands and supplier capacity constraints. This is also applied to freight markets which have been heavily constricted due to both the availability of fuel oil and vessels arising from the COVID-19 global pandemic.

Energy and carbon report

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

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Sushovan Ghosh
Director
28 May 2025
MACHAP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MACHAP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MACHAP HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Machap Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 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 group and parent 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 group's and parent 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.

Opinions on other matters prescribed by the Companies Act 2006

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

MACHAP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACHAP HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent company 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 gained an understanding of the legal and regulatory framework applicable to the company and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These laws and regulations included but were not limited to compliance with the Companies Act 2006.

 

We considered compliance with laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to:

 

- agreement of the financial statement disclosures to underlying supporting documentation;

- enquiries of management;

- Testing of journal postings made during the year to identify potential management override of controls.

 

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and discussed how and where these might occur and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

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.

MACHAP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACHAP HOLDINGS LIMITED
- 7 -

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.

Arvind Shah (Senior Statutory Auditor)
For and on behalf of Elliotts Shah, Statutory Auditor
Chartered Accountants
5th Floor
37 High Holborn
London
WC1V 6AA
29 May 2025
MACHAP HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
39,842,298
60,385,976
Cost of sales
(38,285,674)
(58,947,174)
Gross profit
1,556,624
1,438,802
Administrative expenses
(3,202,896)
(2,694,342)
Other operating (expenses)/income
(413,142)
69,150
Fair value movements
200,000
262,500
Operating loss
4
(1,859,414)
(923,890)
Interest receivable and similar income
7
30
(220)
Interest payable and similar expenses
8
(32,184)
(72,736)
Profit/loss on disposal
9
-
417
Loss before taxation
(1,891,568)
(996,429)
Tax on loss
10
(155,083)
53,470
Loss for the financial year
24
(2,046,651)
(942,959)
Loss for the financial year is all attributable to the owners of the parent company.
MACHAP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Loss for the year
(2,046,651)
(942,959)
Other comprehensive income
Currency translation gain taken to retained earnings
-
0
1,184,246
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
(2,046,651)
241,287
Total comprehensive income for the year is all attributable to the owners of the parent company.
MACHAP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
21,841
16,844
Investment property
12
2,837,500
2,637,500
2,859,341
2,654,344
Current assets
Stocks
15
846,331
822,696
Debtors
16
9,978,596
16,438,038
Cash at bank and in hand
6,138,446
784,872
16,963,373
18,045,606
Creditors: amounts falling due within one year
17
(11,929,410)
(10,733,425)
Net current assets
5,033,963
7,312,181
Total assets less current liabilities
7,893,304
9,966,525
Creditors: amounts falling due after more than one year
18
(774,255)
(817,411)
Provisions for liabilities
Provisions
20
6,393
6,393
Deferred tax liability
21
99,415
82,829
(105,808)
(89,222)
Net assets
7,013,241
9,059,892
Capital and reserves
Called up share capital
23
8,279
8,279
Revaluation reserve
24
964,256
964,256
Merger reserve
24
(8,177)
(8,177)
Profit and loss reserves
24
6,048,883
8,095,534
Total equity
7,013,241
9,059,892

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
28 May 2025
Mr Sushovan Ghosh
Director
Company registration number 12972001 (England and Wales)
MACHAP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
3,431,257
5,008,912
3,431,257
5,008,912
Current assets
Debtors
16
100
100
Creditors: amounts falling due within one year
17
(5,005,733)
(5,000,733)
Net current liabilities
(5,005,633)
(5,000,633)
Net (liabilities)/assets
(1,574,376)
8,279
Capital and reserves
Called up share capital
23
8,279
8,279
Profit and loss reserves
24
(1,582,655)
-
0
Total equity
(1,574,376)
8,279

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,582,655 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
28 May 2025
Mr Sushovan Ghosh
Director
Company registration number 12972001 (England and Wales)
MACHAP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
8,279
729,881
(8,177)
8,088,622
8,818,605
Year ended 31 December 2022:
Loss for the year
-
-
-
(942,959)
(942,959)
Other comprehensive income:
Currency translation differences
-
-
-
1,184,246
1,184,246
Total comprehensive income
-
-
-
241,287
241,287
Transfers
-
234,375
-
(234,375)
-
Balance at 31 December 2022
8,279
964,256
(8,177)
8,095,534
9,059,892
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(2,046,651)
(2,046,651)
Balance at 31 December 2023
8,279
964,256
(8,177)
6,048,883
7,013,241
MACHAP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
8,279
-
0
8,279
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2022
8,279
-
0
8,279
Year ended 31 December 2023:
Profit and total comprehensive income
-
(1,582,655)
(1,582,655)
Balance at 31 December 2023
8,279
(1,582,655)
(1,574,376)
MACHAP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
5,760,154
2,366,324
Interest paid
(32,184)
(72,736)
Income taxes paid
(138,382)
(51,410)
Net cash inflow from operating activities
5,589,588
2,242,178
Investing activities
Purchase of tangible fixed assets
(15,822)
(12,313)
Proceeds from disposal of investments
-
417
Loan advances
(190,507)
-
Interest received
30
(220)
Net cash used in investing activities
(206,299)
(12,116)
Financing activities
Repayment of other loans
(43,156)
(152,832)
Repayment of bank loans
-
(1,715,421)
Net cash used in financing activities
(43,156)
(1,868,253)
Net increase in cash and cash equivalents
5,340,133
361,809
Cash and cash equivalents at beginning of year
784,872
423,063
Cash and cash equivalents at end of year
6,125,005
784,872
Relating to:
Cash at bank and in hand
6,138,446
784,872
Bank overdrafts included in creditors payable within one year
(13,441)
-
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Machap Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 14 St Johns Road, Woking, Surrey, GU21 7SE.

 

The group consists of Machap Holdings Limited and all of its subsidiaries.

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 sterling, which is the presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Machap Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The consolidated financial statements incorporate the results of business combinations using the merger accounting method. On 30 December 2020 Machap Holdings Limited acquired 100% of the share capital of A.P. (Holdings) Limited through a share for share transfer. In the Statement of financial position, the assets and liabilities of the merged operations are recognised at book value from the beginning of the financial year in which the combination occurred. The results of merged operations are included in the Consolidated income statement from the beginning of the financial year in which the combination occurred. The comparative information has been restated for all combining entities for the previous reporting period and their statement of financial position for the previous reporting date.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

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

1.5
Turnover
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.6
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:

Fixtures and fittings
25% straight-line
Computers
33% straight-line
Motor vehicles
25% straight-line

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 recognised in the profit and loss account.

1.7
Investment property

Investment property is carried at fair value determined annually by the directors. The basis of the valuation is a by taking into consideration movements in the market and property yields. No depreciation is provided. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks 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 stocks to their present location and condition.

 

Stocks 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 stocks 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.

1.11
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.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments

The group 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 group's balance sheet when the group 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 group 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 group after deducting all of its liabilities.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Foreign exchange

 

Functional and presentation currency

The Group's functional currency is USD. This differs from the presentational currency which is GBP. The reason for the difference is that the trading of the Group is carried out predominately in USD but the accounts are presented within the United Kingdom.

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated income statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
International chemicals trading
39,830,298
60,309,726
Management and administrative consultancy
12,000
76,250
39,842,298
60,385,976
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
Rest of World
39,842,298
58,658,456
Rest of Europe
-
1,727,520
39,842,298
60,385,976
2023
2022
£
£
Other revenue
Interest income
30
(220)
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Exchange losses
304,425
422,467
Fees payable to the group's auditor for the audit of the group's financial statements
2,250
4,895
Depreciation of owned tangible fixed assets
10,825
2,619
Operating lease charges
79,029
75,755
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
30
33
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,747,146
1,180,977
-
0
-
0
Social security costs
117,130
111,533
-
-
Pension costs
6,620
7,538
-
0
-
0
1,870,896
1,300,048
-
0
-
0
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
390,900
60,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
30
(220)
8
Interest payable and similar expenses
2023
2022
£
£
Interest payable on financial liabilities
32,184
72,736
9
Amounts written off investments
2023
2022
£
£
Gain on disposal of financial assets held at fair value through profit or loss
-
417
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
136,019
(81,595)
Adjustments in respect of prior periods
2,478
-
0
Total current tax
138,497
(81,595)
Deferred tax
Origination and reversal of timing differences
16,586
28,125
Total tax charge/(credit)
155,083
(53,470)
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 25 -

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

2023
2022
£
£
Loss before taxation
(1,891,568)
(996,429)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(472,892)
(189,322)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
124,282
Gains not taxable
12,500
-
0
Unutilised tax losses carried forward
491,496
-
0
Adjustments in respect of prior years
1,037
-
0
Group relief
(81,474)
-
0
Permanent capital allowances in excess of depreciation
1,550
(2,591)
Other permanent differences
191
35,911
Under/(over) provided in prior years
103,982
-
0
Changes in provisions leading to an increase (decrease) in the tax charge
4,086
(49,875)
Unrealised gains
-
0
28,125
Effects of inter company adjustments
94,607
-
0
Taxation charge/(credit)
155,083
(53,470)
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
30,378
37,076
69,586
137,040
Additions
2,688
11,303
1,831
15,822
Disposals
-
0
(292)
-
0
(292)
At 31 December 2023
33,066
48,087
71,417
152,570
Depreciation and impairment
At 1 January 2023
27,079
32,955
60,162
120,196
Depreciation charged in the year
1,594
5,073
4,158
10,825
Eliminated in respect of disposals
-
0
(292)
-
0
(292)
At 31 December 2023
28,673
37,736
64,320
130,729
Carrying amount
At 31 December 2023
4,393
10,351
7,097
21,841
At 31 December 2022
3,299
4,121
9,424
16,844
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 26 -
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
2,637,500
-
Fair value movements
200,000
-
At 31 December 2023
2,837,500
-

The investment properties were revalued on a fair value basis at the balance sheet date by the directors of the company. The historical cost of the investment properties is £1,813,899 (2022: £1,813,899).

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,431,257
5,008,912
Movements in fixed asset investments
Company
Investments in subsidiaries
Total
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,008,912
5,008,912
Impairment
At 1 January 2023
-
-
Impairment losses
1,577,655
1,577,655
At 31 December 2023
1,577,655
1,577,655
Carrying amount
At 31 December 2023
3,431,257
3,431,257
At 31 December 2022
5,008,912
5,008,912
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
A P (Holdings) Limited
Guernsey
Ordinary
100.00
SGI Group Limited
England
Ordinary
100.00
Alman Limited
England
Ordinary
100.00
Millman Limited
England
Ordinary
100.00
UMS Property Limited
England
Ordinary
100.00
Millman (India) Private Limited
India
Ordinary
99.00
Millman Shanghai Limited
China
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
846,331
822,696
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,175,738
6,136,117
-
0
-
0
Other debtors
7,451,322
3,857,772
100
100
Prepayments and accrued income
1,351,536
6,444,149
-
0
-
0
9,978,596
16,438,038
100
100

Included within debtors are counter party debts receivable of £6.8m which have risen due to the Ukraine war whereby trading arrangements via the banks diminished significantly. As an alternative, the company arranged financing facilities with known entities to act as counter parties to enable trading activities.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
13,441
-
0
-
0
-
0
Trade creditors
474,504
508,103
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
5,005,733
5,000,733
Corporation tax payable
133
18
-
0
-
0
Other taxation and social security
138,920
36,695
-
-
Other creditors
10,439,288
9,637,953
-
0
-
0
Accruals and deferred income
863,124
550,656
-
0
-
0
11,929,410
10,733,425
5,005,733
5,000,733
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Creditors: amounts falling due within one year
(Continued)
- 28 -

Included within creditors are counter party debts payable of £7.5m which have risen due to the Ukraine war whereby trading arrangements via the banks diminished significantly. As an alternative, the company arranged financing facilities with known entities to act as counter parties to enable trading activities.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
774,255
817,411
-
0
-
0
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
13,441
-
0
-
0
-
0
Other loans
774,255
817,411
-
0
-
0
787,696
817,411
-
-
Payable within one year
13,441
-
0
-
0
-
0
Payable after one year
774,255
817,411
-
0
-
0

The loan is repayable in five years from date of drawdown, August 2022. Interest is payable at 4% per annum.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
6,393
6,393
-
-

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

Movements on provisions:
Group
£
At 1 January 2023 and 31 December 2023
6,393
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
(11,329)
-
Unrealised gain on investment property
110,744
82,829
99,415
82,829
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
82,829
-
Charge to profit or loss
16,586
-
Liability at 31 December 2023
99,415
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,620
7,538

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,279
8,279
8,279
8,279
24
Reserves
MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Reserves
(Continued)
- 30 -

Investment property reserve

Fair value adjustments to investment properties net of deferred tax provision.

Merger Reserve

Arising from a business combination where the nominal value of shares issued exceeds the nominal value of the shares received in exchange.

Profit and loss account

Includes accumulated results for the group and foreign currency retranslation movements net of dividends.

 

25
Operating lease commitments
Lessee

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023      2022

£ £

 

Not later than 1 year                          30,930     31,250

Later than 1 year and not later than 5 years                  12,500 31,250

                                                                                 43,430      62,500

 

 

26
Related party transactions

As at the year end A.P. (Holdings) Limited owed The Annapurna Trust £2,405,224 (2022: £2,539,286).

27
Controlling party

The ultimate controlling party of Machap Holdings Limited is S Ghosh by virtue of his shareholding as Trustee of the Annapurna Trust.

MACHAP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Cash generated from group operations
2023
2022
£
£
Loss after taxation
(2,046,651)
(942,959)
Adjustments for:
Taxation charged/(credited)
155,083
(53,470)
Finance costs
32,184
72,736
Investment income
(30)
220
Fair value gain on investment properties
(200,000)
(262,500)
Depreciation and impairment of tangible fixed assets
10,825
2,619
Foreign exchange gains on cash equivalents
-
1,184,246
Other gains and losses
-
(417)
Decrease in provisions
-
(45)
Movements in working capital:
Increase in stocks
(23,635)
(678,353)
Decrease in debtors
6,649,949
794,888
Increase in creditors
1,182,429
2,249,359
Cash generated from operations
5,760,154
2,366,324
29
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
784,872
5,353,574
6,138,446
Bank overdrafts
-
0
(13,441)
(13,441)
784,872
5,340,133
6,125,005
Borrowings excluding overdrafts
(817,411)
43,156
(774,255)
(32,539)
5,383,289
5,350,750
2023-12-312023-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.100No description of principal activityMr Sushovan GhoshMr Sukanta GhoshMr Richard 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