Misnak International (UK) Limited

	Page
Statement of Financial Position	1
Notes to the Financial Statements	2—6

1. Accounting Policies

1.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

1.2. Going Concern Disclosure

During the period there was decrease in sales and associated gross profit. The company made a net profit of £48,765 (2024: £99,210). At the year end the current liabilities exceeded its current assets by £220,912 (2024: £270,227).

The directors recognise the importance of improving profitability and liquidity.The company is actively looking for new customers and projects with a view to increasing sales and improve profitability. The directors of Misnak International (UK) Limited have prepared prudent forecast which give a reasonable expectation that the company has sufficient resources to improve it's liquidity and operational existence for the foreseeable future. The directors have received a confirmation from the parent company Misnak International DWC LLC that it will provide all the necessary financial support to the company for a period of 12 months from the date of approval of these financial statements. Enquiries made by the directors indicate that the parent company has the ability to provide such ongoing support. As with any company placing reliance on other parent entity for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

In the year ended 31 December 2018, the company entered into a dispute with a customer. The case was decided in favour of the company in the year ended 31 December 2019. As a result of the legal proceedings, the company became entitled to exercise its contractual rights of lien in respect of the indebtedness.

In March 2020, the customer filed a civil suit disputing the original judgment and seeking to restrain Misnak International (UK) Limited from exercising its contractual lien. The civil suit was dismissed by the Court. Following the dismissal of that case, the customer commenced further proceedings against the company (see note 7). An application challenging the jurisdiction of the court was made by the company; however, the court held that it had jurisdiction. The company has appealed that ruling and is awaiting directions from the court regarding the hearing of the appeal. The outcome of the proceedings remains uncertain and, accordingly, no provision has been made in the accounts. The directors remain confident that the company will be successful in the legal dispute. The amount due from the customer, being £69,397, was settled during the year ended 31 December 2025 through the exercise of the company's contractual lien.

The directors have carefully considered these risks including an assessment on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Therefore, after making relevant enquiries, the directors have reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

1.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Revenue from contracts for freight brokerage services is recognised by reference to the stage of completion of each assignment and by the shipment date. For individual shipments revenue is usually recognised at the time of shipment i.e. when the shipping documents such as bill of lading are raised, and for ongoing project work revenue is recognised on an ongoing basis when the service is provided and risks and rewards of ownership is transferred to the customers.

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Misnak International (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

1.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures & Fittings	15% Reducing balance
Computer Equipment	15% Reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exists. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

1.5. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.

1.6. Financial Instruments

Short term debtors and creditors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade debtors are assessed for impairment at the end of each reporting period and amounts impaired are deducted and charged to the Profit and Loss Account.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised costs using the effective interest method unless the effect of discounting would be immaterial in which case they are stated at cost.

1.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

1.8. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

...CONTINUED

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Misnak International (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

1.8. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

1.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.

1.10. Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

1.11. Employee benefits

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

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

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

1.12. Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

2. Average Number of Employees

Average number of employees, including directors, during the year was: 5 (2024: 5)

3. Tangible Assets

	Fixtures & Fittings	Computer Equipment	Total
	£	£	£
Cost
As at 1 January 2025	8,352	5,276	13,628

As at 31 December 2025	8,352	5,276	13,628

Depreciation
As at 1 January 2025	6,638	3,329	9,967
Provided during the period	258	292	550

As at 31 December 2025	6,896	3,621	10,517

Net Book Value
As at 31 December 2025	1,456	1,655	3,111

As at 1 January 2025	1,714	1,947	3,661

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Misnak International (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

4. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	336,745	370,459
Prepayments and accrued income	1,004	757
Other debtors	1,801	2,282

	339,550	373,498

5. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	17,403	47,046
Other taxes and social security	19,252	8,611
Other creditors	2,248	1,283
Accruals and deferred income	35,058	29,749
Amounts owed to parent undertaking	495,547	586,968

	569,508	673,657

The amounts owed to parent company is £495,547 (2024: £586,968). Although the amount is payable on demand the company has received assurances from Misnak International DWC LLC, the holding company, that it will not call upon the company to repay the amount of £495,547 until such time as this can be done without it adversely affecting the company's financial position.The amount is available to the company on an interest free basis.

6. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	1,000	1,000

7. Contingent Liabilities

In the year ended 31 December 2018 the company had entered into a dispute with a customer. The case was decided in favour of the company in year ended 31 December 2019.

In March 2020 the customer filed a new civil suit disputing the original judgement and restraining Misnak International (UK) Limited from exercising a contractual lien.The new civil suit was dismissed by the Court. Following the dismissal of the case the customer has further sued the company for the value of the goods, purported loss of the income plus legal cost of the suit. An application to challenge jurisdiction of the suit has been made by the company. Ruling was delivered whereby the court declined to dismiss the suit and held that it had jurisdiction. An appeal against the court ruling has been filed by the company. The company is awaiting direction from the court on the hearing of the appeal. The outcome of the case is uncertain and as a result no provision has been made by the company in the accounts.

8. Ultimate Controlling Party

The company is a 100% subsidiary undertaking of Misnak International DWC-LLC incorporated in United Arab Emirates. The ultimate beneficial owner is Mr Fuat Miskavi, resident of Turkey.

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Misnak International (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

9. Audit Information

The auditor's report on the accounts of Misnak International (UK) Limited for the year ended 31 December 2025 was unqualified.

The auditor's report was signed by Milena Mitova (Senior Statutory Auditor) for and on behalf of Zenith Audit Ltd , Statutory Auditor.

Zenith Audit Ltd

3rd Floor North

Warwick House

65/66 Queen Street

London

EC4R 1EB

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	3		3,111		3,661

			3,111		3,661
CURRENT ASSETS
Debtors	4	339,550		373,498
Cash at bank and in hand		9,046		29,932

		348,596		403,430
Creditors: Amounts Falling Due Within One Year	5	(569,508 )		(673,657 )

NET CURRENT ASSETS (LIABILITIES)			(220,912 )		(270,227 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(217,801 )		(266,566 )

NET LIABILITIES			(217,801 )		(266,566 )

CAPITAL AND RESERVES
Called up share capital	6		1,000		1,000
Income Statement			(218,801 )		(267,566 )

SHAREHOLDERS' FUNDS			(217,801)		(266,566)