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Registered number: 13814961 IGI INEX TRADING (UK) LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
IGI INEX TRADING (UK) LTD COMPANY INFORMATION
Directors | Leonardo De Abreu Santos
| W M A Schmidt
Registered number | 13814961
Registered office | Tower 42 - Level 20
| 25 Old Broad Street
| London
| EC2N 1HQ
Independent auditor | MHA
| Statutory Auditor
| 2 London Wall Place
| London
| EC2Y 5AU
IGI INEX TRADING (UK) LTD CONTENTS
| Page
Strategic Report | 1 - 3
Directors' Report | 4 - 6
Independent Auditor's Report | 7 - 10
Statement of Comprehensive Income | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Notes to the Financial Statements | 14 - 21
IGI INEX TRADING (UK) LTD STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Introduction
The Directors present their strategic report for the year ended 31 December 2023.
Business review
During the year to 31 December 2023, the Company performed as management expected, with first year revenues of $107,013k. Operating profit amounted to $2,089k and profit after tax was $1,567k.
Principal risks and uncertainties
The Board of Directors is committed to the effective management of risks that could impact the Company’s ability to achieve its strategic objectives. Recognising the increasing complexity of the Company and the economic and operating environment, during the period management strengthened its risk management oversight, to ensure a more consistent and robust approach to risk identification, assessment and mitigation across a wider range of business risks. Key actions included: • Identifying Principal Risks: Identification and evaluation of the principal strategic, operational, financial and compliance risks facing the group. This process involves an analysis of both internal and external factors and is regularly reviewed by senior management. • Monitoring Risk Exposure: Monitoring the Company's exposure to identified risks and evaluating the effectiveness of existing controls and mitigation measures. Monitoring includes regular consideration of key topics. Discussion of key risks The market in which the Company operates is highly competitive, and subject to disruption from new entrants, and from new technologies. To counter these risks, the Group has long standing relationships with its key clients that are based on deep market expertise and makes investment in technology where necessary. Key to the Company's success is the ability to recruit and retain skilled personnel. This determines the consistency and quality of our service, which is key differentiator for the business. Any decline in the relative attractiveness of the Company as an employer will have an impact on performance. Economic conditions remain uncertain. The Company continues to closely monitor this and the impact it will have on business performance, revenues and the profitability and will take actions available to align the business cost structure and working capital.
Financial key performance indicators
Key financial performance indicators include: • Revenue was $107,013k in the year. • Gross profit margin was 4.5% in the year to 31 December 2023. • Operating profit margin was 2.0% in the year to 31 December 2023. • Working capital and cash: the Company closely monitors its working capital position, with $1,567k in net current assets at 31 December 2023. The Company has no external debt in either year. Page 1
IGI INEX TRADING (UK) LTD STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Other key performance indicators
The Company is in the process of developing non financial key performance indicators but have none to report as at 31 December 2023.
Directors' statement of compliance with duty to promote the success of the Company
During the year, the Directors have complied with their duty to act in a way most likely to promote the success of the Company, as per section 172(1) of the Companies Act 2006. In doing so they have had regard to: The likely consequences of any decision in the long term In considering the likely long-term consequences of its decisions, the Company, whose principal activity is gemstone trading, serving the wider gemstone-related trading activities. Over time, the Company also intends to expand its operations to include trading in other minerals and products that fall within the IGI Inex Group’s areas of expertise. Activities related to gemstone trading remain a central part of the Company’s remit, which is expected to become increasingly sophisticated as trading volumes and market presence grow. The Company’s long-term strategy continues to evolve in response to emerging opportunities, industry developments, and market conditions, supporting sustainable growth and value creation for all stakeholders. The interest of the company’s employees The Directors believe that the employees serve an integral part in carrying out the strategic direction of the company. Our focus is to maintain a culture that supports and encourages a healthy lifestyle and provide a high quality affordable benefits package that is truly valued by our employees. The need to foster the company’s business relations with suppliers, customers and others The Company promotes clear and regular communcation with suppliers and aims to develop an open and collaborative relationship with them by means of long-term partnerships where appropriate. Also the Company uses trusted organisations and mantains a relationship with them over the longer term, ensures that they provide value for money and gives clarity to customers over the pricing of goods and services . The impact of the company’s operations on the community and environment The Comapny recognises the importance of conducting its activities responsibly and with consideration for the communities and environments in which it operates. In carrying out its operations, the Company seeks to promote ethical and sustainable practices across the gemstone supply chain. This includes maintaining transparent relationships with suppliers, encouraging responsible sourcing, and supporting fair trade principles within the gemstone market. The Company is also mindful of the potential environmental impact associated with the extraction and trade of natural resources and aims to minimise its footprint by engaging only with reputable partners who adhere to recognised environmental and social standards. Within its business environment, the Company fosters a culture of integrity, accountability, and respect for local communities, contributing to the long-term sustainability and reputation of the gemstone industry. The desirability of the company maintaining a reputation for high standards of business conduct The Company recognises the importance of maintaining a strong reputation for high standards of business conduct across all areas of its operations. The Company is committed to upholding integrity, transparency, and sound governance in all its business dealings. Through robust compliance practices and ethical management, the Company seeks to ensure that its operations reflect professionalism and responsibility, reinforcing stakeholder confidence and supporting sustainable long-term success. The need to act fairly as between members of the company The directors make decisions based on all relevant information, making the best decision for the Company. Page 2
IGI INEX TRADING (UK) LTD STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 This report was approved by the board on 7 November 2025 and signed on its behalf.
Leonardo De Abreu Santos Director
Page 3
IGI INEX TRADING (UK) LTD DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The directors present their report and the financial statements for the year ended 31 December 2023.
Principal activity
The company’s principal activity is gemstone trading, serving the wider gemstone related trading activities of IGI Inex Holding (UK) Ltd and its subsidiaries and affiliates. Over time, the company intends to also trade other minerals and products that are within the IGI Inex group companies sphere of competence. Activities related to gemstone trading are also a part of the company’s remit, and this remit can be expected to become more sophisticated as trading activity expands.
Results and dividends
The profit for the year, after taxation, amounted to $1,567,007 (2022 - $NIL). No dividends were paid or proposed.
Directors
The directors who served during the year were:
Leonardo De Abreu Santos
W M A Schmidt
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. 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 to 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. Page 4
IGI INEX TRADING (UK) LTD DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Future developments
During 2024, the Company continued to consolidate its position within the international trading market, strengthening its relationships with key suppliers and clients across multiple jurisdictions. The year also marked important developments within the Group, including the execution of a cost-sharing agreement with IGI Inex Holding (UK) Limited to optimise administrative and operational efficiencies. In addition, the Company benefitted from the secured senior term facility entered into in June 2024, which provided additional liquidity to support trading activities and group operations. Looking ahead, the directors expect 2025 to be a year of further expansion and operational integration. The Company plans to continue building on its trading activities, particularly in the commodities and gemstones sectors, while pursuing new strategic contracts with institutional clients and fund partners. The management will also focus on strengthening compliance and governance frameworks to ensure adherence to UK and international regulations, as the scale and complexity of its operations continue to grow. The directors remain confident that the strategy in place will sustain growth and position the Company for long-term success within its market segment.
Engagement with suppliers, customers and others
When making decisions, the directors consider what is likely to lead to the success of the company and to be of benefit to the members as a whole over the long term. When making such decisions, the directors also consider the interests of other key stakeholders and seek to arrive at conclusions which do not adversely impact those groups as a whole. For the purposes of decision making, the directors have identified key stakeholder groups, evaluated their interests, and responded to them. This demonstrates the board's commitment to maintaining high standards of business conduct and professionalism.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Company consumed less than 40,000kWh in the year under review this qualifies them as a low energy user under SECR guidelines and therefore information on greenhouse gas emissions has not been reported.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
On 6 June 2024, the Group in which IGI Inex Trading (UK) Ltd is a member, entered into a Secured Senior Term Facility Agreement to provide additional liquidity to the Group. The Facility was arranged through a private lender and is intended to strengthen working capital and support ongoing operational and investment activities across the Group. Page 5
IGI INEX TRADING (UK) LTD DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Auditor
The auditor, MHA Audit Services LLP, was appointed by the directors during the year. MHA offer themsleves for reappointment. This report was approved by the board and signed on its behalf.
Leonardo De Abreu Santos Director
Date: 7 November 2025
Page 6
IGI INEX TRADING (UK) LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX TRADING (UK) LTD
Opinion
We have audited the financial statements of IGI Inex Trading (UK) Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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: ∙give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 United Kingdom, including the Financial Reporting Council'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. Page 7
IGI INEX TRADING (UK) LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX TRADING (UK) LTD (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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. Page 8
IGI INEX TRADING (UK) LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX TRADING (UK) LTD (CONTINUED)
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. 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: ∙Enquiry of management and those charged with governance around actual and potential litigation and claims; ∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropiateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Other matters
The financial statements of IGI Inex Trading (UK) Ltd for the year ending 31 December 2022 were unaudited. Page 9
IGI INEX TRADING (UK) LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX TRADING (UK) LTD (CONTINUED)
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. Stephen Poleykett BA (Hons) FCA (Senior Statutory Auditor) for and on behalf of MHA Statutory Auditor London, United Kingdom 10 November 2025 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). Page 10
IGI INEX TRADING (UK) LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023
| 2023 | Unaudited 2022
Note | $ | $
Turnover | 4 | 107,013,000 | -
Cost of sales |  | (102,243,530) | -
Gross profit |  | 4,769,470 | -
Administrative expenses |  | (2,680,128) | -
Operating profit | 5 | 2,089,342 | -
Tax on profit | 8 | (522,335) | -
Profit for the financial year |  | 1,567,007 | -
There was no other comprehensive income for 2023 (2022:$NIL).
The notes on pages 14 to 21 form part of these financial statements.
Page 11
IGI INEX TRADING (UK) LTD REGISTERED NUMBER: 13814961 BALANCE SHEET AS AT 31 DECEMBER 2023
|  | 2023 |  | Unaudited 2022
Note |  | $ |  | $
Current assets |  |  |  |  |
Stocks | 9 | 5,907 |  | - |
Debtors: amounts falling due within one year | 10 | 107,013,207 |  | 121 |
|  | 107,019,114 |  | 121 |
Creditors: amounts falling due within one year | 11 | (105,451,986) |  | - |
Net current assets |  |  | 1,567,128 |  | 121
Net assets |  |  | 1,567,128 |  | 121
Capital and reserves |  |  |  |  |
Called up share capital | 12 |  | 121 |  | 121
Profit and loss account | 13 |  | 1,567,007 |  | -
|  |  | 1,567,128 |  | 121
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Leonardo De Abreu Santos
Director
Date: 7 November 2025
The notes on pages 14 to 21 form part of these financial statements. Page 12
IGI INEX TRADING (UK) LTD STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Profit and loss account | Total equity
| $ | $ | $
Unaudited At 1 January 2022 | - | - | -
Shares issued during the year | 121 | - | 121
At 1 January 2023 | 121 | - | 121
Comprehensive income for the year |  |  |
Profit for the year | - | 1,567,007 | 1,567,007
At 31 December 2023 | 121 | 1,567,007 | 1,567,128
| The notes on pages 14 to 21 form part of these financial statements.
Page 13
IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. | General information
IGI Inex Trading (UK) Ltd is a company limited by shares and registered in England and Wales. Its registered office is Tower 42 - Level 20, 25 Old Broad Street, London, EC2N 1HQ. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The financial statements are presented in USD, the functional currency. rounded to the nearest $. The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of IGI Inex Holding (UK) Ltd as at 31 December 2023 and these financial statements may be obtained from the Company's registered office. Page 14
IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.3 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is USD. Transactions and balances Foreign currency transactions are 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.
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
| 2.5 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Page 15
IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.6 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.7 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.8 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.9 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of Page 16
IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.9 | Financial instruments (continued)
the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The directors consider the recoverability of trade debtors to be the only key judgment in respect of these financial statements. They have based their assessment that these amounts are recoverable in full on the basis of group trading arrangements. Page 17
IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Sale of Rough Precious Gemstones | 107,013,000 | -
|  | 107,013,000 | -
Analysis of turnover by country of destination:
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| United Kingdom | 18,995,000 | -
| Rest of Europe | 88,018,000 | -
|  | 107,013,000 | -
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Exchange differences | 176 | -
6. | Auditor's remuneration
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Fees payable to the Company's auditor and its associates in respect of: |  |
| The auditing of the accounts of the Company | 20,000 | -
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IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
7. | Employees
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2023 | Unaudited 2022
|  |  | No. | No.
|  | Directors | 2 | 2
| There are no staff costs incurred by the company, and the directors are paid through the immediate parent company IGI Inex Holding (UK) Ltd.
8. | Taxation
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Corporation tax |  |
| Current tax on profits for the year | 522,335 | -
| Total current tax | 522,335 | -
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Profit on ordinary activities before tax | 2,089,342 | -
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%) | 490,995 | -
| Effects of: |  |
| Differences leading to an increase in the tax charge | 31,340 | -
| Total tax charge for the year | 522,335 | -
| Factors that may affect future tax charges
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IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 8.Taxation (continued) he rate of corporation tax was increased to 25% from 1 April 2023 and this will apply in full from the year ended 31 December 2024.
9. | Stocks
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Finished goods and goods for resale | 5,907 | -
|  | 5,907 | -
10. | Debtors
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Trade debtors | 18,995,000 | -
| Amounts owed by group undertakings | 88,018,121 | 121
| Other debtors | 86 | -
|  | 107,013,207 | 121
11. | Creditors: Amounts falling due within one year
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
| Trade creditors | 4,207 | -
| Amounts owed to group undertakings | 104,855,586 | -
| Corporation tax | 522,335 | -
| Other creditors | 63,492 | -
| Accruals and deferred income | 6,366 | -
|  | 105,451,986 | -
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IGI INEX TRADING (UK) LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
12. | Share capital
|  |  |  |  | 2023 | Unaudited 2022
|  |  |  |  | $ | $
|  | Allotted, called up and fully paid |  |
|  | 100 (2022 - 100) Ordinary shares of £1.00 each | 121 | 121
13. | Reserves
Profit and loss account The profit and loss account represents the Company's accumulated profits and losses net of any dividend paid.
14. | Related party transactions
| During the year, IGI Inex Trading (UK) Ltd entered into sales transactions amounting to $88,018,000 (2022: $nil) with South Capital Trading Ltd, a subsidiary under common ownership (registered in Malta). At the balance sheet date, IGI Inex Trading (UK) Ltd was owed $88,018,000 (2022:$nil) by South Capital Trading Ltd in respect of sales made during the year, which has been included in amounts owed by group undertakings. The balance is unsecured, interest-free, and repayable on demand. As at the balance sheet date During the year, IGI Inex Trading (UK) Ltd purchased goods from Mantovani Participações Ltda, a supplier in which Mr Werner Schmidt (the ultimate beneficial owner of the Group) is a shareholder. At the balance sheet date, IGI Inex Trading (UK) Ltd owed $102,182,000 (2022:$nil) to Mantovani Participações Ltda in respect of the purchases made during the year, which has been included in amounts owed to group undertakings. The balance is unsecured, interest-free, and payable on demand.
15. | Post balance sheet events
On 6 June 2024, the Group in which IGI Inex Trading (UK) Ltd is a member, entered into a Secured Senior Term Facility Agreement to provide additional liquidity to the Group. The Facility was arranged through a private lender and is intended to strengthen working capital and support ongoing operational and investment activities across the Group.
16. | Parent entity
The Company's immediate parent undertaking is IGI Inex Holding (UK) Ltd. The ultimate parent undertaking is W.S Intimorato Capital Limited. Both of these companies are registered in England and Wales and prepare consolidated accounts which are publicly available and have a registered office of Tower 42 - Level 20, 25 Old Broad Street, London, EC2N 1HQ.
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