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Registered number: 13809781
IGI INEX HOLDING (UK) LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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IGI INEX HOLDING (UK) LTD
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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IGI INEX HOLDING (UK) LTD
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Profit or Loss and Other Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Company Statement of Cash Flows
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Notes to the Consolidated Financial Statements
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IGI INEX HOLDING (UK) LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Directors presents their Group Strategic Report for the year ended 31 December 2023.
During the year to 31 December 2023, the Group performed as management expected, with revenues of $114,018k (2022: $nil). Revenue growth was derived largely from the acquisition of the Group's main trading entity, IGI Inex Trading (UK) Ltd. The Brazilian subsidiaries also contributed towards the turnover and profit after tax in the year, having previously not generated any turnover.
Operating profit amounted to $9,101k (2022: loss $2,568k) and profit after tax was $7,502k (2022: $2,570k).
Financial key performance indicators
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Key financial performance indicators include:
• Revenue was $114,018k (2022: $nil) in the year.
• Gross profit margin was 9.5% (2022: nil) in the year to 31 December 2023.
• Operating profit margin was 8.0% (2022: nil) in the year to 31 December 2023.
• Working capital and cash: the Group closely monitors its working capital position, with $1,005,036k (2022: $997,595k) in net current assets at 31 December 2023. The Group has no external debt in either year.
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IGI INEX HOLDING (UK) LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Principal risks and uncertainties
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The Board of Directors is committed to the effective management of risks that could impact the Group’s ability to achieve its strategic objectives. Recognising the increasing complexity of the Group 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 Group'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 Group 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 Group'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 Group as an employer will have an impact on performance.
Economic conditions remain uncertain. The Group 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.
Going Concern
The Directors have assessed the financial position of the Group and the Company, including projected cash flows and future funding requirements, and have concluded that there is a reasonable expectation that both the Group and the Company have sufficient resources to continue operating for the foreseeable future. The Group’s business model and strategic approach are focused on ensuring long-term sustainability, underpinned by sound financial management and careful monitoring of liquidity and risk.
Other key performance indicators
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The Group is in the process of developing non financial key performance indicators but have none to report as at 31 December 2023.
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IGI INEX HOLDING (UK) LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Directors' statement of compliance with duty to promote the success of the Group
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During the year, the Directors have complied with their duty to act in a way most likely to promote the success of the Group, 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 Group comprises a holding organisation with several subsidiaries in the UK, including IGI Inex Trading (UK) Ltd and IGI Inex Resources (UK) Ltd, as well as an additional group of companies based in Brazil, the principal subsidiary being SouthCapital Holding do Brasil LTDA. All subsidiaries within the UK and Brazil operate collaboratively to advance the Group’s overall strategy of becoming a leading global participant in the coloured gemstone industry and a significant player in other mineral-related activities. The Group functions as a vertically integrated organisation. As a young and developing enterprise, the Group acknowledges that its long-term strategy will continue to evolve in response to emerging opportunities, industry developments, and market conditions, ensuring 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 Group 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 group 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 Group recognises the importance of conducting its activities responsibly and with consideration for the communities and environments in which it operates. As part of its business, the Group provides services to gemstone sellers and engages in the trading of rough gemstones with external parties. In carrying out these operations, the Group 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 Group 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 Group 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
IGI Inex Holding (UK) Ltd recognises the importance of maintaining a strong reputation for high standards of business conduct across all areas of its operations. As a privately owned global investment company overseeing activities in mining, manufacturing, gemstones, real estate, and finance, the Group is committed to upholding integrity, transparency, and sound governance in all its business dealings. Through robust compliance practices and ethical management, the Group 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 of the company make decisions based on all relevant information, making the best decision for the Group.
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IGI INEX HOLDING (UK) LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board and signed on its behalf.
Leonardo De Abreu Santos
Director
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IGI INEX HOLDING (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.
Directors' responsibilities statement
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The Directors are responsible for preparing the Group Strategic Report, Directors' Report and the consolidated financial statements, in accordance with applicable law.
Company law requires the Directors to prepare consolidated and company only financial statements for each financial year. Under that law they have elected to prepare the consolidated and company only financial statements in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom ("UK adopted IFRS") and those parts of the Companies Act 2006 that are relevant to companies which report in accordance with UK adopted IFRS.
Under company law the Directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the Directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom ("UK adopted IFRS"), subject to any material departures disclosed and explained in the financial statements;
∙assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The IGI Inex Holding (UK) Ltd acts as the parent holding company for several subsidiaries in the UK, including IGI Inex Trading (UK) Ltd and IGI Inex Resources (UK) Ltd, as well as for an additional group of entities based in Brazil, the principal subsidiary being SouthCapital Holding do Brasil LTDA.
All subsidiaries within the UK and Brazil work collaboratively to deliver the Group’s overarching strategy to establish itself as a leading global participant in the coloured gemstone industry and a significant player in other mineral related activities. The Group operates as a vertically integrated organisation, conducting transactions primarily on a wholesale, business to business basis. As a young and developing enterprise, the Group anticipates that its strategy will continue to evolve in the coming years in response to emerging opportunities and changing business requirements.
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IGI INEX HOLDING (UK) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The profit for the year, after taxation and minority interests, amounted to $7,246k (2022 - loss $2,486k).
No dividends were payable in respect of either year.
The Directors who served during the year were:
R J S Lee and R Sargent were appointed Directors on 30 April 2023 and resigned on 23 May 2023.
The Group 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.
The Group continues to develop its Group strategy and business model, primarily through sales offerings via IGI Inex Trading (UK) Ltd and services offerings via SouthCapital Trading Services Ltda. Specifically, the Group is assisting the structuring and offering gemstone portfolio purchases and associated servicing tailored to the needs of innovative professional investors and institutional clients. The Group’s order book demonstrates the viability of this strategy, and the potential to satisfy substantial demand for the Group’s trading products and services.
Based on the continued positive developments in coloured gemstone prices and overall coloured gemstone demand observed during 2023, the Directors have a positive outlook for 2024. The Group intends to therefore capitalise on these trends by further strengthening its market position, expanding its trading volumes and increasing its ability to meet the needs of larger institutional portfolios and related client requirements.
In parallel, the Group is broadening its activities in product sourcing, particularly within its traditional gemstone-related business and investment structures.
The Group remains strongly committed to maintaining high standards of governance, transparency, and regulatory compliance across all its operations. The Directors believe that these initiatives, combined with prudent financial management and a growing institutional network, will support the Company’s continued development and profitability over the coming years.
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IGI INEX HOLDING (UK) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group’s financial instruments comprise cash and cash equivalents, trade receivables, trade payables, and various other financial assets and liabilities that arise directly from its operations. Details of the financial risks faced by the Group are detailed in note 20.
Engagement with suppliers, customers and others
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When making ecisions, 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. This demonstrates the board's commitment to maintaining high standards of business conduct and professionalism.
Post-year-end events for the Group and the Company are disclosed in detail in Note 25.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Leonardo De Abreu Santos
Director
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IGI INEX HOLDING (UK) LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX HOLDING (UK) LTD
We have audited the financial statements of IGI Inex Holding (UK) Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 22-30. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion:
∙the financial statements give a true and fair view of the state of the Group's and the Parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
∙the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 the Parent 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
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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 or the 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.
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IGI INEX HOLDING (UK) LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX HOLDING (UK) LTD (CONTINUED)
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
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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IGI INEX HOLDING (UK) LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX HOLDING (UK) LTD (CONTINUED)
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the Parent Company 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 on page 5, 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 Group's and 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 Group or 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.
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.
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IGI INEX HOLDING (UK) LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IGI INEX HOLDING (UK) LTD (CONTINUED)
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.
The financial statements of IGI Inex Holding (UK) Ltd for the year ending 31 December 2022 were unaudited.
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 Auditors
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).
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IGI INEX HOLDING (UK) LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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Profit/(loss) from operations
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Profit/(loss) for the year
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Other comprehensive income:
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Items that will not be reclassified to profit or loss:
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Exchange loss arising on translation on foreign operations
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Total comprehensive income
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Profit/(loss) for the year attributable to:
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Non-controlling interests
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Total comprehensive income attributable to:
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Non-controlling interests
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IGI INEX HOLDING (UK) LTD
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The notes on pages 24 to 48 form part of these financial statements.
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IGI INEX HOLDING (UK) LTD
REGISTERED NUMBER: 13809781
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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IGI INEX HOLDING (UK) LTD
REGISTERED NUMBER: 13809781
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
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Trade and other liabilities
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Trade and other liabilities
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Issued capital and reserves attributable to owners of the parent
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The financial statements on pages 12 to 48 were approved and authorised for issue by the board of Directors and were signed on its behalf by:
The notes on pages 24 to 48 form part of these financial statements.
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IGI INEX HOLDING (UK) LTD
REGISTERED NUMBER: 13809781
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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Property, plant and equipment
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Other non-current investments
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Trade and other receivables
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IGI INEX HOLDING (UK) LTD
REGISTERED NUMBER: 13809781
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
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Trade and other liabilities
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Issued capital and reserves attributable to owners of the parent
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The Company's profit for the year was $920k (2022 - loss $nil).
The financial statements on pages 12 to 48 were approved and authorised for issue by the board of Directors and were signed on its behalf by:
The notes on pages 24 to 48 form part of these financial statements.
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IGI INEX HOLDING (UK) LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Total attributable to equity holders of parent
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Total contributions by and distributions to owners
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Unaudited
At 31 December 2022
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Comprehensive income for the year
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Other comprehensive income
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Total comprehensive income for the year
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Contributions by and distributions to owners
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The notes on pages 24 to 48 form part of these financial statements.
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IGI INEX HOLDING (UK) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Total contributions by and distributions to owners
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Unaudited
At 31 December 2022
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
The notes on pages 24 to 48 form part of these financial statements.
|
|
|
IGI INEX HOLDING (UK) LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Cash flows from operating activities
|
|
|
|
Profit/(loss) for the year
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment
|
|
|
|
|
|
|
|
|
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|
|
Movements in working capital:
|
|
|
|
Increase in trade and other receivables
|
|
|
|
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|
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|
|
Increase in trade and other payables
|
|
|
|
Cash generated from operations
|
|
|
|
|
|
|
|
|
Net cash from/(used in) operating activities
|
|
|
|
Cash flows from investing activities
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
Net cash (used in)/from investing activities
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Net cash from financing activities
|
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of year
|
|
|
|
Cash and cash equivalents at the end of the year
|
|
|
|
The notes on pages 24 to 48 form part of these financial statements.
|
|
IGI INEX HOLDING (UK) LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Cash flows from operating activities
|
|
|
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|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment
|
|
|
|
|
|
|
|
|
Movements in working capital:
|
|
|
|
(Increase)/decrease in trade and other receivables
|
|
|
|
Increase in trade and other payables
|
|
|
|
Cash generated from operations
|
|
|
|
|
|
|
|
|
Net cash from operating activities
|
|
|
|
Cash flows from investing activities
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
Cash flows from financing activities
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year
|
|
|
|
The notes on pages 24 to 48 form part of these financial statements.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group's consolidated and the Company's individual financial statements have been prepared in accordance with International Financial Reporting Standards as adopted for use in the United Kingdom ("UK adopted IFRS") and those parts of the Companies Act 2006 that are relevant to companies which report in accordance with UK adopted IFRS.They were authorised for issue by the Company's board of directors.
Details of the Group's accounting policies are included in note 2.
The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of Comprehensive Income in these financial statements.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 5.
1.1 Basis of measurement
The financial statements have been prepared on the historical cost basis.
1.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 January 2023
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2023. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
The accounting standards and interpretations which the Group are considering are:
Definition of Accounting Estimates - Amendments to IAS 8
The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
In line with the amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, the company discloses material accounting policies rather than significant ones. The amendments provide guidance and examples to help entities apply materiality judgements so that accounting policy disclosures are useful and relevant to users of the financial statements.
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|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1.1 Basis of measurement (Continued)
1.2 Changes in accounting policies (Continued)
ii) New standards, interpretations and amendments not yet effective
The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Group's future financial statements:
The accounting standards and interpretations which the Group are considering are:
∙Lack of exchangeability - amendments to IAS 21;
∙Presentation and disclosure in financial statements - IFRS 18;
∙Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
∙Non-Current Liabilities with Covenants ( Amendments to IAS 1)
∙Subsidiaries without public accountability: disclosures - IFRS 19; and
∙Amendments to classification and measurement requirement for financial instruments - amendments to IFRS 9 and IFRS 7
The Directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.
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|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies
The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
∙has power over the investee;
∙is exposed, or has rights, to variable returns from its involvement with the investee; and
∙has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
∙the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
∙potential voting rights held by the Company, other vote holders or other parties;
∙rights arising from other contractual arrangements; and
∙any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
The financial statements of both the Group and the Company have been prepared on a going concern basis. In adopting this basis, the Directors have assessed the Group’s and the Company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
As part of this assessment, the Directors have reviewed detailed cash flow forecasts, available cash resources, forecast expenditure commitments, and the timing of expected income and funding inflows. The assessment also considered the availability of financial support from the parent company and other group entities, where required.
The Directors have further evaluated a range of downside scenarios to assess the potential impact on liquidity and funding. Based on these analyses, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis, and no material uncertainties have been identified that would cast significant doubt on the Group’s or the Company’s ability to continue as a going concern..
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
Management should authorise a contract with a customer only when all of the following criteria are met:
a. The parties approved and signed the contract and committed to fulfilling their respective obligations.
b. The rights of each party with respect to the services to be transferred can be identified
c. The payment terms with respect to the services to be transferred can be identified.
d. The contract has commercial substance, i.e., it is expected to affect the Company's future cash flows in terms of risk, timing, or amount.
e. The consideration is likely to be received in exchange for the services to be transferred to the client.
The Group, through its subsidiaries IGI Inex Trading (UK) Ltd and South Capital Trading Services Ltda., recognises revenue from contracts with customers in accordance with the transaction price allocated to each identified performance obligation.
The Group recognises revenue from the following principal sources:
-Trading of rough gemstones; and
-Provision of trading and related services through its subsidiary, South Capital Trading Services Ltda., to prepare gemstones owned by customers for the market and facilitate their successful sale.
Revenue is measured based on the consideration to which the Group expects to be entitled under a contract with a customer, excluding any amounts collected on behalf of third parties. Revenue is recognised when control of goods or services is transferred to the customer.
Trading of Rough Gemstones
Revenue from the sale of rough gemstones is recognised at the point in time when control of the goods passes to the buyer, which is generally upon delivery in accordance with the agreed terms of sale. At this stage, the performance obligation is satisfied, and the Group has an enforceable right to payment.
Provision of Trading Services
South Capital Trading Services Ltda. provides services to ensure gemstones owned by customers are market-ready and appropriately positioned for successful sale. Revenue from these contracts is recognised progressively over time, based on the stage of completion of services and achievement of contractual milestones, as this reflects the transfer of benefits to the customer.
If there is a significant deterioration in a client’s ability to settle outstanding invoices, the responsible business area shall reassess the probability of collecting the consideration related to services rendered or to be rendered. Any adjustment required to reflect revised expectations of collectability is recognized accordingly.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
(i) Retirement benefit costs and termination benefits
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
(ii) Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date.
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.
Income tax expense represents the sum of the tax currently payable.
|
|
|
Property, plant and equipment
|
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
|
|
|
Impairment of non-financial assets
|
Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs').
Impairment testing is performed annually, or when indicators of impairment exist. Any impairment charges identified are recognised in profit or loss, except to the extent that they reverse gains previously recognised in other comprehensive income.
Costs are the direct costs of producing goods or services sold, which includes the total inventory expense under IAS 2 plus costs directly associated with fulfilling performance obligations under IFRS 15.
For the Group, expenses primarily comprise:
(i) Service-related expenses
These are recognised based on the stage of completion of services provided to customers in accordance with the terms of the service contracts. These services primarily relate to activities undertaken to ensure that gemstones owned by customers are market-ready and appropriately positioned for successful sale;
(ii) Product related expenses
These includes the purchase cost of gemstones and all related logistics, transportation, and handling expenses incurred in bringing the gemstones to a saleable condition.
Expenses that do not generate future economic benefits are recognised immediately in profit or loss when incurred.
|
|
|
Other non-current investments
|
This represents investments in subsidiary companies and is stated at cost less impairment.
|
|
|
Cash and cash equivalents
|
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
|
|
|
Financial instruments (continued)
|
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at amortised cost.
|
|
|
Financial liabilities and equity instruments
|
|
(i) Classification as debt or equity
|
Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Material accounting policies (continued)
|
|
|
Financial liabilities and equity instruments (continued)
|
|
|
(ii) Financial liabilities
|
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
Financial liabilities subsequently measured at amortised cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) designated as at FVTPL, are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.
Foreign exchange gains and losses
The Group’s consolidated financial statements are presented in USD, which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
On consolidation, the assets and liabilities of foreign operations are translated into USD at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
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|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
IGI Inex Holding (UK) Ltd (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at Tower 42 - Level 20, 25 Old Broad Street, London,EC2N 1HQ, which is also the principal place of business. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Company acts as a holding company, and its consolidated financial statements cover the holding company itself and its subsidiaries (jointly referred to as The Group). The Group develops activities and provides specialized services aimed at the mining sector, with emphasis on the production chain of precious stones excluding diamonds, adopting sustainable practices and in compliance with the highest international standards of governance, integrity and socio-environmental responsibility. The ultimate parent undertaking of this Company is W.S. Intimorato Capital Limited.
|
|
Functional and presentation currency
|
These consolidated financial statements are presented in US dollars, which is the Company's functional currency. All amounts have been rounded to the nearest thousand dollar, unless otherwise indicated.
|
|
Accounting estimates and judgments
|
In applying the Group’s accounting policies, management exercises judgment in areas that have a significant impact on the amounts recognized in the financial statements.
Judgments primarily relate to the determination of the timing of revenue recognition, specifically, assessing whether revenue should be recognized over time or at a point in time.
The Group recognises revenue from contracts with customers based on the transfer of control of goods or services to the client, in an amount that reflects the consideration expected in exchange for those goods or services.
For South Capital Trading Services Ltda., management has exercised judgement in determining the timing of revenue recognition under its service contracts. The Group’s contracts for gemstone-related services are structured around defined milestones, which represent distinct stages in ensuring gemstones owned by customers are market-ready and appropriately positioned for successful sale.
Under the service agreement signed with customers, revenue is recognised based on the achievement of contractual milestones. In accordance with the contract terms, 20% of the total contract value is recognised at the initial stage, 70% upon completion of the second stage, and the remaining 10% upon final completion of the contract.
Revenue is recognised and accrued progressively as each milestone is achieved, reflecting the transfer of service benefits to the customer, rather than deferring revenue recognition until the entire contract is completed.
The increase in revenue during 2023 for the Brazilian subgroup is primarily attributable to the services rendered under an initial milestone of a key client contract. This milestone corresponds to the initial phase of the preparation process, which includes the evaluation of rough stones, identification of optimal processing locations, and the selection, contracting, and subcontracting of related services and personnel, such as operators, security, logistics, brokers, cutting and polishing, insurance, and the assessment of local and international legal requirements. For the UK subgroup no judgements or estimates have been identified.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
|
|
|
|
The following is an analysis of the Group's revenue for the year from continuing operations:
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Analysis of revenue by country of destination:
|
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|
|
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|
|
Timing of revenue recognition:
|
|
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|
|
Goods and services transferred at a point in time
|
|
|
|
|
Goods and services transferred over time (Brazilian sales)
|
|
|
|
|
|
|
|
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
|
|
|
|
During the year, the Group obtained the following services from the auditor:
|
|
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|
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|
|
|
|
|
|
|
|
Fees payable to the auditor for the audit of the consolidated and parent Company's financial statements
|
|
|
|
|
Fees payable to the auditor for other services
|
|
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|
|
Employee benefit expenses
|
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|
|
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|
|
Employee benefit expenses (including Directors) comprise:
|
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|
|
|
|
|
|
|
|
Employers' national insurance
|
|
|
|
|
Defined contribution pension cost
|
|
|
|
|
|
|
|
|
|
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Group as listed on page 2 and the senior executives. Key management remuneration amounted to $418,000 (2022: $nil).
|
|
|
The monthly average number of persons, including the Directors, employed by the Group during the year was as follows:
|
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|
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|
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|
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
|
Employee benefit expenses (including Directors) comprise:
|
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|
|
|
|
|
|
|
|
Employers' national insurance
|
|
|
|
|
|
|
|
|
|
The monthly average number of persons, including the Directors, employed by the Company during the year was as follows:
|
|
|
|
|
|
|
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|
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|
|
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|
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
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|
|
9.1 Income tax recognised in profit or loss
|
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Current tax on profits for the year
|
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
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Profit/(loss) for the year
|
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Income tax expense (including income tax on associate, joint venture and discontinued operations)
|
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Profit/(loss) before income taxes
|
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Tax using the Company's domestic tax rate of 23.5% (2022:19%)
|
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Unprovided deferred tax asset
|
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Overseas tax at lower rates
|
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|
Other differences leading to a decrease in the tax charge
|
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|
|
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Changes in tax rates and factors affecting the future tax charges
The 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.
|
|
IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
9.Tax expense (continued)
|
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|
|
9.2 Current tax assets and liabilities
|
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Property, plant and equipment
|
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Accumulated depreciation and impairment
|
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
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|
|
|
|
Accumulated depreciation and impairment
|
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
|
|
|
|
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Details of the Group's material subsidiaries at the end of the reporting period are as follows:
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Place of incorporation and operation
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Proportion of ownership interest and voting power held by the Group (%)
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1) IGI Inex Trading (UK) Ltd
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2) IGI Inex Resources (UK) Ltd
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3) IGI Inex Finance (UK) Ltd
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4) South Capital Holding do Brasil LTDA
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5) SouthCapital Real Estate LTDA
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6) SouthCapital Mining Holding S.A.
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7) SouthCapital Trading Services LTDA
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8) SouthCapital Finance LTDA
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11.1 Composition of the Group
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Information about the composition of the Group at the end of the reporting period is as follows:
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During the year, the Company acquired 100 Ordinary shares of £10,000 each on incorporation of IGI Inex Resources (UK) Ltd.
The composition is a UK based 100% Group, as listed 1-3 above and a Brazilian Group, as listed 4-8 above, where there is 95% ownership and a 5% minority interest.
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Investments in subsidiary companies
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Finished goods and goods for resale
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The amount of inventories recognised as an expense during 2023 was $103,239,000 (2022 - $-).
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Trade and other receivables
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Receivables from related parties
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Total financial assets other than cash and cash equivalents classified as loans and receivables
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Total trade and other receivables
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Receivables from related parties
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Total trade and other receivables
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
13.Trade and other receivables (continued)
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The trade and other receivables, as well as intercompany receivables, detailed below are past due but have not been subject to impairment.
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Payables to related parties
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Other payables - tax and social security payments
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Total trade and other payables
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Less: current portion - trade payables
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Less: current portion - payables to related parties
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Less: current portion - other payables
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Less: current portion - accruals
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Total non-current position
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Payables to related parties
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Other payables - tax and social security payments
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Total trade and other payables
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The Group’s and Company’s authorised and issued share capital consists of 100,000,000 ordinary shares of $10 each, which are fully paid on a trust basis. The cash consideration for the shares is held in trust and therefore has not been recognised as cash received by the Company.
The ordinary shares carry full voting rights, rights to receive dividends, and rights to participate in the distribution of capital in the event of winding up. The shares do not confer any rights of redemption. Each shareholder also has the right to nominate individuals to serve as directors.
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Foreign exchange reserve
The foreign exchange reserve represents differences on the retranslation of foreign subsidiaries between the current and comparative years.
Retained earnings
The profit and loss account represents the accumulation of retained profits, net of dividends, which are in
the form of distributable reserves.
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Non-controlling interests
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Balance at beginning of the year
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Share of profit/(loss) for the year
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Financial instruments - fair values and risk management
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18.1 Foreign currency risk management
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The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
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Foreign currency sensitivity analysis
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The Group is mainly exposed to the movement in US dollars and Brazilian reals exchange rates.
The following table details the Group's sensitivity to a 10% increase and decrease in the US dollars against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the US dollars strengthens 10% against the relevant currency. For a 10% weakening of the US dollars against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
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Brazilian reals 10% increase impact
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Brazilian reals 10% decrease impact
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IGI INEX HOLDING (UK) LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
18.Financial instruments - fair values and risk management (continued)
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18.2 Interest rate risk management
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The Group and Company's assets and liabilities are not interest bearing and therefore the Company is not exposed to significant interest rate risk has no significant exposure to interest rate risk.
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18.3 Credit risk management
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Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group and Company. The Group and Company's credit risk is primarily attributable to trade receivables. The Group and Company's exposure to credit risk arising from cash and cash equivalents is limited because the counterparties are banks with a credit rating that represents a low credit risk.
The Group and Company has established a credit risk management policy under which individual credit evaluations are performed on all customers requiring credit over a certain amount. These evaluations focus on the customer's past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Trade receivables are due within 30 days from billing. Receivables with amounts owing that are more than 1 months past due are requested to settle these before further credit is granted. Usually, the Group and Company does not obtain collateral from customers.
The Group and Company has no significant concentration of credit risk in industries or countries in which the customers operate. Significant concentrations of credit risk arise primarily where the Group and Company has significant exposure to individual customers. At the end of the reporting period 98% of the total trade receivables was from the Group and Company's related party.
The Group and Company measures loss allowances for trade receivables on the basis of individual assessment of each customer with geographic and industry-specific factors taken into consideration where appropriate. Management have assessed the history of defaults, the amount exposed with individual customers and their individual credit risks and determined that the expected credit losses are insignificant.
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