REGISTERED COMPANY NUMBER: 00477145 (England and Wales) REGISTERED CHARrrY NUMBER: 210066 ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR EI¥DED31 DECEMBER 2022 FOR INTERNATIONAL FOU]WATION FOR AIDS TO NAVIGATION AC54DPAI• 061C612023 COMPANIES HOUSE A10 #154 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Company infomiation Chainnan's Ststemeni 4t05 Report of the Directors 6tolJ Independ¢Ttt Auditor's ReF 12to14 consolid￿ed Statement of Financial Activitie5 15 Consolidated and Charitable Company Balance Sheets 16 Consolidat¢d Cash Flow Ststement 17 Notes io the Consolidated Financial Statements 18to29 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION COMPANY IIYFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022 The Directors ollniemaiional Foundation for Aids io Navigation C'the Company") the Company's charity tNsce¢s und¢r charity law and the dire¢tofs of the ¢haritable company. The members of the Board who served in office as Director5 durtng the year and subsequenrly are detailed b¢low'. KEY MANAGEMENT PERSONNEL: DIRECTORS R. G. Ma50n l - Chairnian from 29 November (Appoinied 3 March 2022) A. K W. Marsh MBE FICS- Chainnan until 29 NovernE¢r R. C. J. Brummer l (Res)￿ed 3 Ma￿h 2022) Captain"J.R. Evans S L. M. Evans * Captain J. W. Hughes A. Ross (Appoinied 3 March 2022) Captain l. Scally Cawain Y. Y. Al Saqer D. Summ¢rtJiil S P. Stsnley_ Company Secretary S MembErof Audit Committee CHIEF EXECUTIVE P. Stanky REGISTERED OFFICE 4th Flo 8-9 tA)vai tane ndon EC3R 8DW CHAIUTY STATUS Company Lirnited by Guarnitee not having a share capital RegIs￿red in England and Wales No. (KH77145 Registeffd Charity No. 210066 The word Limited is OTnitted by licence of the Boord of Trade, Li)nd¢)n BANKERS. HSBC. London and Balnin INDEPENDENT AUDITORS Azets Audit Services, 2 Floor. Regis House. 45 King William Streei London EC4R 9AN SOLICITORS: Farrer & Co. London 66 Lin¢o]n's Inn Fields. Imdon, WC2A 3LH Carnpbell Johnston Clark Solicitors 59 Mansell StyeeL London. El SAN INVESTI¥￿NT MANAGERS Evelyn & Pdrtner5 25 Moorgate. L￿1￿. EC2R 6AY INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022 DIRECTORS Guy Mason IChairm*n) Mr Mason wa5 aprM)inted Ch￿￿an in November 2022. He joined the Board in Marth 2022 h8￿ng rttired from BP at the end of 2020 &8 Senior VP and Global Head of BP Shipping. Whilst in BP Shippin& he served on sup¢rvistyy iwds at UK Chamber of Shippin& P&I Clubs ITOPF and Oil Spill Respon5c Lirnti¢d. Prior to hi5 lime in stlipping. he worked In BP'S Alternative Energy business building ncw global low-¢arknn cnergy busincsscs. He currently Serv￿ a5 an Indcpendent Dircctorort the Board of AB Klaijxdos nafta and Windward Limited. He has first cla55 degree in Engineering ScieJKe Technology from Lou8hFAYou8h University ar¥J is a chanered en8inttr qnd a Fellow ofthe of Me¢hanica] Ert8lrt¢¢rs. Alan Marsh Mr. Marsh was appjinied to the B09rd in Au8USt 2018 and #eprrtd down as Chairnian afterthree ytars in the posi. He is a Trustee and Council Memt¢r of The Marine Society and Sea Cadas IMSSCI. a Vice President of the RNLI. He sits 00 the development board of Wetwheels UK and 15 an A550ciai¢ M¢mbcT of thr St¢lios Philanthroptc Foundation. a UK Charity. He is a Fellow of the Instiwte of Chartered Shipbrokcrs for whom he is a form¢r Presideni. He is a150 a Younger Brother of Trinity Hotsse. Pa51 Prirne Warden of the Worshipful Ctynpany of Shipwrights fornKdy CEO of Br￿rnar Shipping Group PLC as wcll &$ a Dirtctor of ITIC. Peter Stanley Mr. St3nl¢y was appointed CEO in July 2020 and a DireC￿T in Septemtr*r2020. Fomi¢rly with BP for 30 years working in BP Shippin& HSE, Refinin8 Manufacturiag arbd Supply. Ch¢rniC￿s and finally as Head of Control of BP'S Corporaie segmeni. He is an external advisor 10 the Audit Cornmittce of Addenbrooke's ChaTitabl¢ Tnw. Hc graduaied from New￿￿1¢ University obtsining a first cILE5 honours degree in Marine Engineering and an MBA from the Judge Business Schty)l. CambTidg¢ UniYeTsity. He is a CharteTed Engin¢¢r and Fellow of ihe Ins(itu* olmarine Engirttrin& s¢￿¢¢ and Ttthnolw. Aslak Ross MT. Ross app)irf¢d as a direcior in M￿Ch 2022. He 15 CUTreritly Head of MaTint Standxrds in Macrsk AIS and i$ T¢sponsibl¢ for411 Health. Safety. Security. EnviTonmental and Quality mattets for th¢ Macr5k managed container fletL including navigational and c￿0 safety policie5. In &ddiiion, he acts the DesI￿ated Person AslK>re foi th¢ Ma¢r5k fleth. Mr. Ros5 Swted hi5 car¢¢r in Maersk in 1994 Is an engineer appreniice and a degrct in marine engineerin8 has ￿50 ￿mplet￿ a rn￿er mariner dcgree C¥ptsin John Hughes Captain Hughes w&$ appointed a5 a director in November 21)08. Fonncrly 0￿￿konS Vice President and Director of Exxon's intemati¢naJ oil aDd ga5 tsnker fleet. from 1999 10 2(K14 Director of ihe Oil Companies Internation￿ Maritime Forum. He is a Fcllow of the Nautical Institut¢, Past Chairnian of m￿l￿Me CHJRP. Pu MI%￿ of the Hothounble Cotnp8ny of MasteT Marirters, Past Chairman a[￿ Tru51¢e of the Shipwrecked Mariners Society. Youn8ei Broth¢r of Trinity HOU￿ amd in 2018 awarded the Merchani Navy Med81. C*ptsin Youstf Al Saqer Captsin Al Saqer was appoirtted LS a Director in No¥emttr2010. Hc is p[￿ntly Dcputy CEO Fleet O￿tatIOnS Kufc. fornierly Managcr Flcet newbuilding projects and Prior to thal Manager flrrf maTine ormiions where he w&5 xcountsble for iht day-to-day OPEfdlion5, 5afcty & security of KOTC Fleffl. He stsrttd his caTeeT as Navigation OffJ¢¢r. l¢wJing io Master on board KOTC'S VLCC. LPG and Preduct tankers. H¢ 5¢rvtd krt numerou5 ro1¢5 ¢Jn s￿re in Fkci operaiioft& Marine Aff￿r$ #nd risk &ssessment. He holds a Bsc in Maritime TTartsport Technology artd is a Master Mariner. C*ptlkn John Evans Caprain Evans w&$ apFx>inted as a Dire¢tor in Augu5¢ 2013. He is currenily GloFAI M8na8er MaTittme Srcurity Fjert Q&HSSE Global Manager ShippÈn8 Emer8erKy Respon￿ Shell Ttansport & Trading Company. Prior to this appoinThtnL he w&$ Fleet MMager. Shell Tanker5 Ausira]i& Followkftg a sea-going career up to th¢ r•)k of mas￿ within ShelL Captsin Evansgained wide exp¢Tienc¢ within senior marine positions ashorc. L￿ul$t Ev#tt$ Ms Evans w&5 appointed to th¢ Board Jurt 2020. s￿ is currcnily Mn-execuiive dirtttor and *udit¢OTnmittee choir of AB Dynamics plc and Gooch & Houst80 PLC. Ms Evans previously hcld Gr￿P FinarK¢ Director roles at Brwnar ShippinE Scrvi¢¢s plr and Williarns Grand Prix Holdings plc. She h¥ 21so held Senior position$ at RPS Group pl¢ and Rcynard Molofspott Sht qualified LS a ehartercd accountant whil# working with Emst & Youn& M5 Evans graduated from the Univctsiry of Wales with a first cl&%s degree in Mana8erttent Scien￿ and 15 a Fellow ofthc Instiwtr of Chartertd A¢eow]iants in England & Wa] INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION COMPANY JNFORMATION FOR THE YEAR Ef4DED 3A DECEMBER 2022 Doug Summerhill Appointed a Dire¢ior ID November 2020. He is PTes¢ntly Vice Presidcni of Chartcring for BP Shipping Limitd. &￿tsu￿table for the global chartering activity and monctisatson of BP'S oil and ga5 fte¢r. He 15 a suppty, shipping and trnding spccialsst, having worka in this 5eaor forover 20 yeats and holds a Bac￿lOr of Business dcgrte frorn RMJT Urtiversity. Australi& C*ptsin 14in Scally Captsin Scally w35 appoint¢d a DirecioT in Novcrnbcr 2021. He 15 presenily scrying &$ Marine Advisor ro NYK'S Global Tanker Quality Group in Tokyo. Forn)CTly wilh Exxonmobtl for 28 years s¢rving Is M&%ter and ihen a v8ri¢ry of 5hore-based rrtTrsitions including HSQE Marine Opetatiotjs and Shipping Managv within LNG op¢Mion$. Cawain Scally wrnTn¢nced his 5ugoing career with Sh¢ll in 1970. He is founding rnembcr and Fellow of tbe Nautical Inmitutcand serve5 on te¢hnIC￿ ¢ommittee5 within Interranko and SIGTto. INTERPIATIONAL FOUNDA TION FOR AtDS TO NAVIGAT1014 CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 In 2022, the charity maintained a sound and susrainabie fmancial position despite the challenges and unceTtainties brought about by turbulent markets. ri5Lng and volatile energy markets and geopolitical uncertainty. tFAN's charitable objects have driven a continued f￿ll$ on our thrr¢ ¢or¢ activiti¢S.' the manag¢m¢nt of our fvnds and their distn"bution to projects which enhance safety ai sea and pr￿e¢t the environment. the reliable operation of navigational aid8 and associated communication systems in the Gulf, and the commercial operation of th¢ R¢lume. ow offshore support vessel. Management (Jf funds and distributions to projects We continue io be active in the managemeni of our inves*d fjjnds aiming for improved income. Our Investmeni Collunittee Tnonitor5 the performance of OUT fvnd manager5 againsl our investmeni objects. Though there has been significant 105s in value caused by overall market declin&8. our benchmarks show p¢rfonnance equal or better than (￿er compaTabl¢ organisations. During 2022, we disbursed Sl.6m to projects which seek to improve safety at s¢a and protect the marine environment. sorne of these project5 are planned to continue through 2023. W¢ have our own guid¢lines to d¢teTmin¢ which projects we will support having regard ￿ legal imperatives. our resources, and our ability to monitor projects appropriately. We continue io find ways w iniegrdte tFAN into marine regulatory organisations io both unders￿nd better the requiremenis for aids io navigaiion globally and contribute to the decision-making and guidelin¢s for ¢llhancing safety at sea and F￿1￿ling the environmeni and are now considering poteniial environmenthl development projects in their own righi. Since early 2012. we have supported the International Associal￿n of Marine Aids io Navigation and Lighthouse Authorities (IALA) in developing its Worldwide Academy (WWA) with contribution5 amowjting to an average of S706k equivalent each year. The WWA provides training packages designed to Spread knowledge arnongst gov¢rnmenl representstive5. Instruction is given both in resF¢¢i of a Coastsl s￿le's obligations under international law and the benefits to commerce of having ¢ff¢ctiv¢ aids io navigation. The IALA progrdmme is a Tolling programme. prowssively expanding ihe knowledge of aids to navigation throughoui the world. Over time, continually improying 5ervtC¢5 will become available to better asslst navigators to 5af¢ly operate their ve55els. During 2022. WWA activilies increased after a pandemic-induced slow down in 2021, wilh activities now iaking place in person as well &s online. this has required a resuM￿lon of the previous levels of financial support. We haye helped The Marine Society and Sea Cadets (MSSC) develop and commission teaching modules io improve mathematical, English language aftd marine v(xational skills amongst rnariners, committing an average of S109k equiwalent per annum since 2013. We have also funded a SI￿lficant outreach progrdmme that The Nauti¢al Instit￿¢ (Nl) Pro￿01ed to improv¢ navigators, tec1￿1¢?1 skills. commining S192k equivalent since 2014. Since 2016, we hav¢ jointly funded a projeci to improve the aids io navigation and tecknical wability present iti the Pacifj Ocean for Th¢ sO￿h Pacific CoTnmuniry, the pan-governmeni agency responsible formarinematt¢rs in thai Tegion. An initial survey was a pre-requisite to the proj¢d lo improve posiiioning infrastsiJc)Jre in a region heavily dependent upon marine transport but poorly supplied with aids to nayigaiion. A Second phase was cornpleied in 2021, albeit reduced in scope due to the pandemic. We agreed io fijnd a third ph&e of the proje¢L which aims to estsblish a sustainable funding M￿tI for the provision of navigational aids in the 13 target island c(Knmunities. To date. S2.78m has been donated with a fiffth¢r S756k provided from January 2023 10 July 2024. The F￿0jeCt is subject w annual reviews. In (he past we have supported The Straits of Malacca #nd Singapore Fund. The core actjviiies atr now io maintsin the existing Aids io Navigation within the tratTic separation scheme and executed by the littoral States. We actively monitor the ongoing progrdmme of mainlenanc¢ and improvemeni through our participation in th¢ Aids io Naviwion Fund Committee. Beyond our existing projects. we continue io seek new opport￿ltIeS aligned to our charithble objects, and examine fjjnding requests to determine appropriate levels of support to improve the saf¢ passage of ships using global sea routes. INTERNATIONAL FOUNDATION AIDS TO NAVJGATIOI¥ CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 Navigation Aids and ctsmmuDi¢atiOn syslerns in Iht G￿lf The navigational services provided by MENAS in the Gulf depend on the colleciion of Navigation Dues from ship ownen. These charge5, which have not changed since 2CrfJ6. fund the COSLS of proyiding navigational aids, essential for safety and continued trdde in the Gulf. We continually seek to ensure awareness of our activities in the Gulf with ship owners through the use of media carnpaigns and targeted communications. Some elements of our Differential Global Positioning System IDGPS) service in the Gulf are Teaching the end of their serviceable life. We have look¢d at different way$ to provide ￿¢￿rat¢ positioning system5 in the Gulf and Concluded that a DGPS remains the best solution. As a rtsull we have committed to recapitalise some tsf this equiprnent, fvnded by Navigational Du¢s,"and a new DGPS site will be commissioned during 2023. During 2021 MENAS successfully a¢hi¢ved Accr¢dit¢dTraining Organiwion (A TO) thsignation. We are offering technical skills and education course5 to clients, such as Port Authorities, 50 thai they can develop their own resou￿¢$ over lime. We previously indicated we would h05t our own IALA guided training course for Middle E&st gulf participants, but the slow resumption of nomial activities after the pandeTnic has meant that delivery of our first Courses will Ttow take place in 2023. Cornmereial operntlon of the Relume OUT offshore support vessel Relume. originally buili as a bJoy handler for ouraids to navigation 5ervic¢ in the Gulf, has been undertaking commercial work in North Eurokxan w*ers for many yeaTS now. As has been re￿rted in previous annual accounts. IFAN chose io retain the ve&%el to keep the option of further aid5 to navigation work open for the Relume in the future. During 2022. market condilions were right io realise re&wnable value for the vessel and im late 2022 we a￿d 8 tirne- charter followed by a sale obligaiÉon of the vessel which will ¢cAnple* during 2023. W¢ ¢oniinu¢ to seek ever improving ¢tTiciency throughoutthe group by reviewing pro¢es$es and rtduciThg our operatingcosts, ensuring we aTe 1*5t positioned to respond to any future variability in mthet wnditions whilsi also delivering more ro our objert causes. l thank all our dedicai¢d staff and parttws. both ashore and afloat, fortheircommitment to IFAN'5 objKiives during a period of turbuleni and volatile mark¢ts and geopoliiical wwest. On behalf of the entire Board, I wish to thank Rob Brummer for his k)yal Servi￿ to IFAN as 4 Director for over 13 years. The Board welcomes Aslak to the IFAN Board. Our thanks also go to Alan Marsh foT ¢hairing the IFAN Board for the past 3 year5 through this p¢ri(wJ of vol*ility and geopolitical unrest. l am delighi¢d that Atan has ¥gr¢¢d io remain on the Boar R. G. Ma50n Dale= 25 May 2023. INTERNATIONAL FOUNDATION FOR AIDS TO NA VICATION REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 Th¢ Directors of Intemaiional Foundairon for Aids to Navigation ('the Company,) present their Annual Report together with the audited financial sratements for the year ended 31 December 2022 which comply with the Charities Act 2011, the Companies Act 2006 and Atcounting and Reporting by Charities.. s￿eMen1 of Recommended Practice ISORP) applicable to charities preparing theii aGcounts in a￿ordanCe with the Financial R¢portin8 Stsndard applicable in the UK and Republi of Jreland (FRS 102) (effedive l January 2015). REFERENCE AND ADMINISTRATIVE INFORMA TION The Company is constituted as a cotnpany lirnited by guarantee with hvo wholly owned opernting subsidiary undertaking Menas Marine Services Limited and Oman Marine Services Limi￿d. The charitable objective of The International Foundation for Aids to Navigation ("IFAN"). as slated in the Articles ofAssociation. is th¢ prornijtion of saf¢ry at $4 m￿]tiMe edu¢ation & tyaining and the protection of the marine environmenL STRUCTURE, GOVERNANCE AND MANAGEMEKr Governing documents The Company is governed by its Articles of Association. Governing Body The DirectOTS are appointed in accordance with the Article5 of A550ci*iw by the Member5 and are mosily drawn from the shipping, mtiritime and oil indusrries. Re¢ruitment and trnining of Direetors New Directors are brieted on their legal obligations undercharity and company law. Luiii¢iii of tlie ￿liC]eS of Association and the workings of the Board of DirethoTS and the decision making pnKess. OrgaRis8tiottal management The Board of Dtrectors, as the charity trustees. are legally r¢spon5ible forthe overnll management and control of the Company. The Board of Direct¢)rs meets at least four times a year. The Audit Committee is responsible for ensuring that the financial Ftrfornan¢e of the Company is properly reporte& that adequate internal control sysi¢ms are mainfained and managing the Telaiionship with the exiemal audittsrs. Day to day administration is carried out by the Chief Executive OITicer. The ow&ion of the Bahrain facility is undeTtsken by a senior manager reporting to the CEO in LA)ndon. TherernuneAtion of key management personnel is set by the Board amdthe aPPTopriateness and relevance ofthe remuneration policy is reviewed annually by th¢ Remuneration Comrnitt¢e_ Group structure and r¢lation$hips The Compatjy h&5 two wholly owned nontluding debi a))d equity in ¢mer8ing markets io improve yields whilst mainraiThing a low risk profile. E&P's ¢ontinue5 to a¢¢ively manage the ￿n(L creating greater elyiciency and to continue to invest in more secure stturities and disinvest in securitie5 more exposed because of greater debt levels whrlst maintsining a diversified porrfolio and matching non-functional currency flows. The application of the investment policy is re8ularly monitored by the Investrnent sulpcommittee. The portfolio experienced Si￿])fiCant uncertainty and volatility during the year because of financial volatility and ihe Ukrainian war. However. perfomiance is in line or better than investtneni ￿nChMa￿S with similar assds and risk profiles. As of 31 December 21f22, the market value of invesied funds. including uncornmitted detM)siw was the equivalent of $44.2m (2021.. $53.Om). against an historic cosl of $42.7m (2021: S42.Om). Reserve5 L£vel Policy and Financial Viability The FK)licy in respect of ihe Gulf navigational aids service continues to be one of matching inGome wtth expendittlre allowing for uncertainiies and capital requirements. Provision is made fortht progressive 5horter]in8 of the operatiilg lives of the OSV Relume and navigational aids a5 environmental deman(ts increase artd trchnological developments acceleTatr. Group reserves held as at 31 December 2022 arnounied tg s61.jrn (2021-. S72.6rn) ofwhich fr¢¢ re5erv¢s amowJt¢d to S47.5m (2021= $59.4m). The charity's own reseryes amounied to $74.8m {2021.. $84.6m). The Directors consider that reserves will need io be maintained at a level that will provide tFAN with a sustainable future whilst deliv¢ring against ils objertiV¢5. Allgwance will be made for ihe Teplacemeni and enhan¢ement of Current operational and navigational aids assets and the longer-temi possibility of further expansion of navigational aids services into other geographical areas worldwide which would entail significant l¢ve15 of wital ¢xpendiwr¢ and working capital. Printipal Ri$ks 8Trd Uncertainties The Directors have undertaken reviews and organised from time-tfrtime investigations to be reasonably certain thai tbe Company is operating efficiently at]d effectively. its assets are properly safeguarded against unauthorised u5¢ or disposal, proper records are mainrained, and ihai r]nancial infomaiion used within the Cornpany, or forpublication. is reliable and that the Company Cornplies with relevant laws and regulations_ The system of internal controls includes a strategic plan and annual budgeis with regular financial and perftsrniance reports as apwpriate with clear delegation of authority and s¢gregation of duties. Ri$k associated wrth the activities undertaken and objectives laKI down by the Board are regularty reviewed, prioritised &$ to likely impact and lthelihood of OCCUTTtnce and management are Sati5fi¢d that the applied str￿egi¢S are appropriate to mitigate those risks. INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATJON REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 The Directors are satisfied that during the year all aGtiviti¢s hove been condurted in compliance with the Company's HSE policy. Adherence and improvements to the HSE wlicy has ensured that all 0￿￿tiOnS are con(lucted in a rnanner which safeguards the health and safety of employees and avoids darnage toth¢ environment. During2022. tFAN rernained ci)mpliani with the UK Governmenr small business guidelines lor cyber security. The Company has adopted a policy of 5pr¢ading its investrn¢nts ov¢r a rdng¢ of in$tnLm¢nts both UK pound st¢rling and US dollars with the aim of protecting ihe capitsl against iM￿rted inflation, whilst miÉigaiing ihe effect of currency movements. F¥ture PlaD$ The charity has a global remii and focuses its OUt1￿)k th supwt pmjects of intern*ional scope. The charity has a branch in Bahrain undertaking marine contractin8 adivitie5 as part of the provision of a r¢gional aid to navigation service and also has two trading SubS￿larIcs. The Middl¢ E&%t¢rn bran¢h in Bahrain has existed for many yeats and recently efforts have beth] successfully rnade 10 modemise, expand its resourc¢5 and offerings. The branch is manag¢d locally with in.house trained personnel and is ¢xpanding its skill base to allow a build-up of marine engineering work and AtoN trnining ¢ourses. There is a150 an office in the United Arab Emirates. Improv¢d services cumtly being considered include upgraded AIS technology to both moniior (he position and perfonnante of floating ai(ts to navigation and coll¢¢i vessel movement dak for billing puwes. We coniinue to investigate the suitability of tl&sticatrd rnoorings in place of traditional metal chains. We have begun to execute plans to upgrade the DGPS'S which aTe now over twenty years old. Researth ha5 ￿en undertaken over several year5 to ensure that the reliability and perfornance of new equipment will be optimal. We are. in ¢onjun¢tion with IALA. res¢8Tching problems suffered by DGPS systetns in connection with si￿￿1 reliability and then Tesearchingsuitsbl¢ solutions. We are now in a position to deliver IALA a￿reditIng training courses as an Accredited Training Organisation (A TO). One of the tradin8 subsidiaries operates an offshore seTVRC¢S vessel (OSV Relurn¢) originally built to service physi¢al navigational aids in the Gulf. During late 2022 we agreed a time-charter followed by a sale obligation of the vessel which will complete during 2023. io INTERNATIONAL FOUNDATION FOR AIDS TO NA VIGATION REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 STATEMENT OF ACCOUP4TING AND REPORTING RESPONSIBILITIES The member5 of the Governing Body (who also the DireC[￿S of Intern￿lonal Foundaiion for Aids ro Navigation for the purposes of cornpany law) are responsible for preparing the Annual Repon and the financial slatement5 with app]i￿bI¢ law and Uniled Kingd(mi Generally Accepted Accijunting Practic¢ (Unit¢d Kingdom Accounting Standards). Company law rtquires the Directors to prepar¢ financial slatements for each fmancial year. Under that law the Directots must not approve ihe financial 5tal¢ments unl¢ss they are swisfied that they give a irue and fair view of ihe stste of affairs of the ¢haritsble company and the group and of the incorning resources and application of resources, including th¢ income and ¢xp¢rJditure, of the charitable group for thai penod. kn Preparing these financial sts*ments, the Directijts are wuired to.. select the most suitsble accounting polici¢5 and then lo apply them ￿ls￿ently. observe the methods and principle5 in the Chariries SORP. make judgements and ac¢ounting estimates thai are re&sonable Jnd prudent. stste whether applicable UK Accounttng Standards have been followed, subject to any rnaterial departures disclosed and ¢xplained in the fmancial S￿leMents- and prepare the financial sts*ments on the going ¢on¢ern basis unkss li ts inappropriate to p￿SUme that the Company will continue ￿ busines5. The DwecioTS are responsible for keeping ad¢quat¢ accounting records that are sufficient to show and explain the Company's transactions, disclose with r￿Onable accuAcy at any time the fJnan¢ial p05ition of the C¢)mpany and enable them to ensure that the financial stst¢rn¢nts comply with the Companies Act 2006 and the provisions of the charity's ctsnstifution. They are also responsible for safettuarding the a5seiS of the ¢harity and the group and hence for taking reasonable sieps for the prtv¢ntion and detection of fraud artd otheT irregularities. Relev8llt A￿di¢ InformatioTh In so far as each of the Directors. as members of the Governing Body. at the date of aPFKoval of this report is aware, there is no rel¢vant audit infonnation (inforn)aiion needed by the Company'5 auditor in connection with preparing the audit report) of which the Ctstnpany's audiior is unaware. Each DiTecwr ha5 thken all the sreps that he should have tsken as a Director in order to make himself aware of the relevant audit infoTmalion and to e5tsblish that the Compgny's auditor is aware of that infomiation. Approved by the Board on 25 May 2023 including, in theircapacity as company directors, approving the D]r￿lor5. ¥nd Strategic Reports contsined th¢Tein. and signed on its behalf by.. L. M. Evans Director and Audit Committe¢ Chairm*n INDEPEf4DENT AUDITOR'S REPORT TO THE MEMBERS OF li￿rERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED) Opinion We have audited the financial stsiements of Iniernaiional Foumdaiion for Aids to Navigation (the 'charitsble company,) and its subsidiaries (the 'group'} for the year ended 31 December 2022 which comprise the consolidated ststernent of financial activiti¢s, the consolidated and charitsble company swement of fmancial ￿sItIon, the consolidated cash flow staleTn¢nt and notes to the Consolidated f￿ancIal statrments. including siw)ificani accounting policie5_ The F￿ancIal reporting frarnework thai has E¢en applied in their preparation TS applicabk law and Uniied Kingdom Acwunting Standard5. in¢luding FRS 102 'The Financial Reporting Standard applicable ID the UK and Republic of tr¢land' (United Kingdom Genernlly Accepted Accouniing Practice). tn our opinion the financi￿ 5tstements". give a tru¢ and fair view of the sthie of the group's and of the tharitable company's affairs as at 31 D¢cember 2022 and of the group's incoming resources and application of resourtts, including its inwme and expenditur¢, for the year then have b¢¢n properly prep￿ed in accordan¢¢ with United Kingd(Jn Generalty Accepted Accounting PrdCtirK' pnd have b¢¢n prepared in a￿ordanCe with the requirements of the Companies Aci 2(X)6. Basis for opinion W¢ conducted ow audit in a¢¢ordarKe with International Standard5 on Auditing (UK) (ISAS (UK)) and appl)￿ble law. Our responsibilities under those standards are further described in the 'Auditor'5 respon5ibiliti¢5 for the audit of the financial sratements. section of our report. We are independent of the chaTitable company and of the group in accordance with the ethical requiremenis that are relevant to ouraudit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fvlfilled our other ethical re5ponsibiliti¢s in accordance with these requirements. We b¢lieve that the audit evidence we hav¢ obtsined is suffi¢i¢nt and aPFryriate to provid¢ a bosis f(Y our opinion. CoDclusioD$ relating to going conttrn In auditing the financial statements, we have concluded thai th¢ Director5. us¢ ofth¢ going concern basis of accounting in the preparation of the financial siatements is appropriate. Bas¢d on the work we have perfornied, we have not ideniified any material uncertainties Telating to events or condition5 thal individually or colleciively, may cast signifi¢ani doubt on the Ch￿1[able c¢)mpany's ability to continue a5 a going ¢0￿cern for period of ￿ least twelve Month5 from wh¢n the fIn￿¢tal 51alements aTe authorised foT issue. OUT responsibilities and th¢ responsibilities of the Direaors with reS￿¢tt08oin8Cortcern aye descnlyed in the ￿levant sections of this report. Other Information The other infomiation Comprises the infom*ion irtcluded in the annual lE￿rt other than the fin￿¢1￿[ statern¢nts and ow auditor's report thereon. The D]r￿Or5 are r¢sponsible for the other infomiation contsined within the annual report. Our opinion on che financial ststements does not cover the other inforrnation and, excepl to the eM¢ni otherwis¢ explicitly ststed in our reporL we do noi express any fom of assurance conclusion thereon. Our responsibility is to read the other inforniation and, in doing 50. ¢onsider whether ihe other infom)aiion is materially inconsisteni with the financial statements or our knowledge obtained in the course of th¢ audi4 or i)therwise aFvear5 to ￿ maierially misststed. If we identify such material inconsistencies or apparent material Tnisstaten*nts. we are required to detemiin¢ wheth¢r this give5 rise to a M￿erial mis5tsEemeni in the financial siateTnents themselves. If, bwd on the WQTk we have performe￿ we conclu(k thai there is a material TYLiSStat¢menl of this other inforniaiion, we are Yequired to report thai fact. We have nothing to report in this regard. OpinioN5 on other rnatters prescribed by the Companies Att 2006 In our opinion, based ort the work undertak¢n in the course of the audii.. the infoTmaiion given in the Report of the DirectQf5 for th¢ financi#l yw for whith the financial stal¢ments are prepared 19 consistent with the flnancial swements. and the Report of ihe Direct￿$ has been prepared in accordance with applicable legal requirements. 12 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IIYTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED) Matter5 on whith we Are required to report by exceptio In ihe light of the knowledge and understanding of the group and the charitable company and its environm¢nt ob¢ain¢d in the course of the audit, we have not id¢ntified rnaterial misststements in the Report of the Direcrors. We have nothing to report in respeci of ihe following matters where the Cornpanies Act 2006 r¢quire5 US to report to you if, in our opinion.. adequate accounting recor(L% have not been kept. or returns ad4uate for owaudit have not been received from branche5 noi visited by us" or the financial statements ar¢ not in agr¢emenl with the accounting recorts and reThums; or certain disclosur¢s of Directors, remuneration specified by law are not made= or we have noi received all the inforniation and explanation5 we require for our audit. Responsibilities of Directors As explained more fully in th¢ Stat¢m¢nt of Accounting and Reporting Responsibilities. the DiTtdOTS aTe Ttsponsible for the preparation of the fmancial ststemertts and for being satisfied that they give a true and fair view. and for such internal control as the Dir￿tOrs deierniine is necessary to enable the prepaTrtion of financial stsi¢ments that fr¢¢ fr¢)m rnaterial misststement, wh¢th¢r due to fr￿L￿ or eTror. ID PTeparing the financial ststements, the Directors are re5wAsible for assessing the group's and ihe charitsble company's ability io continue as a going concern. disclosing. a5 applicable, matters related to going concern and using the going concern basis of accouniing unless the Directors either iniend to liquidate the group or the ¢haritable company or to cease operdtions. or have no realt5tic alternative bui io do so. Auditor's responsibilities for the audit of the finanei*l ststements Our objectives are ro obthin reasonable assurance about whether the fiDan¢ial siatements as a whole ar¢ fr¢¢ from material mi55taiement, wh¢th¢r due to fraud or ¢rror, and to issu¢ an auditor'5 report that include5 (m￿ ¢)pinion. Reasonable &%surance is a high level of assurance. bul is noi a guaTanttt thai an audii conducted in aecotdance with ISAS IUK) will always detect a material misstai¢m¢nt when li exists. MI￿ratements can arise from fraud or error and are considered malerial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of user4 ￿k￿lI Oti dje b&sis of the5¢ financial siatements. A further description of our responsibilities is available on the Financial Reporting Council's w¢b5it¢ at -uklaudit res ilities. Thi5 description f(m5 part of our auditor's report. Extent to whieh tbe audit was eottsidtrtd eapable of dtie¢tlDg irreeul*rities ineluding fraud irregularities. including fraud. are insthnces of non-compliance wtth laws and regulations. We design procedures in Itne with our re5POll5ibilitie5, Outlined above and ¢)n the Financial Rewjrting Coun¢il'5 websit¢, to delect maierial misstaiements in re5pe¢t of Irregul￿7t1eS, including fraud. We obtain and updaie our understanding of the entity. its activities, its control environmeni and Ihkely futhre developmenis, including in ttlaiion to the legal and Tegulatory framework applicable and how the entity is complying with that frarnework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due lo fraud Ore￿Or, design and perforni audit procedures resFM)nsive to those risks. and obthin audii evidence that is sufficieni and appropriate to provide a basi5 for our opinion. This includes consiikTation of the risk of acts by th¢ entity thai were ontrdry io applicable laws and regulations. including fraud. In response io the risk of iTr¢gulariti¢$ and non-compliarKx with laws and regulation5. including fraud. we designed procedures which included: Enquiry of management and those char8¢d with 8ov¢rnan¢¢ an)und arts￿1 and FM)lential litigation and claims as well as actual, suspected and alleged fraud- Reviewing min￿e$ of meetings of those charged with governance" A55¢55ing th¢ exi¢nt of complian¢e with the laws and Tegulations considered to have a direci material effect on the financial statements or the operdtion5 of the ¢haritsble company through enquiry and inspection. Reviewing financial statem¢ni dis¢knure5 and testing io supwjrting documentaiion to &ssess compliance with applicabk laws and regulations. 13 INDEPENDEIYT AUDITOR'S REPORT TO THE MEMBEILS OF IKrERNAT]ONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED) Perforniing audit WO￿ over ihe risk of management bias and oYeTYide of controls, including testing of joumal erttrie5 and other adjustments for appropriateness. evaluating the Ixtsiness raiionale of significant transactions outside the nornial course of business and reviewing accounting ¢stimaies for indicators of potential bias. Becaus¢ of the inherent limitations of an audit, there is a risk that we will not deiett all iTregulaTiii¢s, intluding those leading to a material misstaternent in the financial stsiements or rton-compliance with Tegulation. This rtsk increases the more thai compliance with a law or regulation is removed from the events and transactions reflecied in the financial statements, as we will be1¢5s 1￿ClY to become aware of instanc¢s of non- wmpl1a￿e. Th¢ risk of not detectinga material misSts￿Ment resulting from frdud is hI￿)¢r ihan for one resuliing from error, as fraud may involve collusion. forgery, int¢ntlODal omissions. misrepresentations. or the override of internal control. Use of our report This report is mad¢ solely to the charitable company's members, &% a body, In accordance with Chapier 3 of Part 16 of the Companies Act 2006. Our audit work been underraken so that we migh¢ stste to the chan"table comp?￿Y'S members those matters we are required to slate to them in an auditor'5 rep(irt and for no other purpose. To the fvllest extent pemitted by law, we do not accept or ¥sum¢ responsibility to anyone oiherthan the charitsblecompany and the charitable tompany's members as a body. for our audit wo￿. for this reNJr4 or for the opinions we have fo￿ed. 4.& A.L7 S£s4-< John Howard (Senior Ststuttsry Ayditor) For and on behalf of Azets Audit Services Chartered A¢¢ountants Statutory Auditor 2. Floor, Regis House 45 King William Styeei London EC4R 9AN 14 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION CONSOLIDATED STATEMENT OF FINANCIAL ACTtvtTIES ONCORPORATING AN INCOME AND EXPENDITURE ACCOUIYT) FOR THE YEAR ENDED 31 DECEMBER 2022 Note 2022 2021 INCOME FROM: Charitsble actLVities Non contractual navigation dues Contractual navigation dues Buoy maintenance and projeci income 2,810261 536,888 579,365 2.647,473 573,426 740.635 Other trading activities Ship charter and management income Rental income Other incorne 4.696,019 144.396 101,638 5.772.415 132,719 Inve$tm¢Trts Investtnenl income 680,199 877.420 Total ineorne 9548,766 10,744,088 EXPE14DITURE ON: Gtnerating funds Ship ¢harter incom¢ costs Rental property costs 5.348,718 23,451 5,203,152 21.925 Charitable #ctivities 6,005.913 4.722.018 Totsl expenditure I lJ78.082 9,947,095 Net fuDds from oper4tioMs (lJ29J16) 796,993 L055 on disposal of inwestsnents (Decreaseyincrease in value of investrnents (79,010) (9.593,443) (139.694) 3,899,185 NET MOVEMENT JN FUNDS FOR THE YEAR (11.5111,769) 4,556,484 Total fimd5 brought forward 72.554.694 67,998,210 Total funds earrled forward $61,OS2,925 $72.554,694 The statement of finan¢ial activities include5 all gains and I(￿$¢S recognised in the year. All income and expenditure is unrestyicted. The notes on pages 18 to 29 forni part of these financial starements. 15 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION CONSOLIDATED AND CHARITABLE COMPANY STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2022 Group 2022 Group 2021 Comp9￿Y 2022 coM￿nY 2021 Note FIXED ASSETS Tangible assets Investhjents 13.573,470 44,159,126 13.145.543 53,016,663 877,773 44.159,130 685.747 53,016,667 57,732,596 66,162206 45.036,903 53,702,414 CURRENT A￿ETs Stock Debtors Cash and depc&its 10 1.399.386 2,378.123 2,779.31 .488.633 2.660.434 5.687.967 282,866 29,704.151 2,678.368 291,254 29,379,602 3,906,827 12 6,556.809 9.837.034 32,665,385 33.577.683 CURRENT LIABILITIES Creditors payabl¢ within one year 13 (3,236.480) (3.444.546) (2.940,754) (2,734,373) NET CURRENT ASSETS 3,320.329 6.392.488 29.724,631 30,843.310 NET ASSETS $61,052,925 $723X694 $74761,534 584,545,724 Fuf4DS Unrestritted fund$ General reserve Currency trdnslati¢)n reserve 14 14 57.141.864 3.911,061 68,643,633 3.911.061 69.303.938 5,457,596 79.088,128 5,457,596 TOTAL FUNDS $61.052.925 57U54,694 4761,534 $84,545.724 The financial stakments were approved by the Board M 25 May 2023 aDd were signed on its khalf by R. G. M*so Chaimian L M. Ev*M Audit Cornmittee Chairman Comp*ny No". (MM77145 The notes on pages 18 to 29 fomi part of these financial ststements. 16 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGA TION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 Note 21122 2021 Cash generated from operating #ctivities J9 (1.273.501) .163,973 Cash flow from investing aetivities Payments for tangible fixed asseis Prtsceeds on disposal of tangible fixed assets Iljrchases of investment% Proex¢ds on Sale of inv¢smients Invesm)ent income receipts Rental illCOTn¢ receipts (1,723,855) 79,010 (4.618,470) 3,803,554 680.199 144,396 (344,456) (7.901,238) 7,994,048 877.420 132,719 C85h %eD¢r*¢ed from investing •ctivities (1,635.166) 760,137 (Decrea$eVincrease in c4sh in the year 2.908.667) $1,924,110 Reconciliation of eash flow to net movement in Det (Decreaseyincre&8e in in th¢ yeaT 12.908.667) 1.924.110 Net funds at the ￿gInning of the year S,0¥7.￿7 3,763.857 Jyet funds at the end ofthe year S2.779J(M) $5,687.967 The not¢s on pages 18 to 29 form pan of ihese financial 5txt¢menlS. 17 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER 2022 COMPANY STATUS The Company is a charitable Company limited by guaramttt, registered in England and Wales and governed by its Articles of Association. It h&5 no share capitsl. tn the eveni of the cornpany being wound up the liability of the member5 is limited to a maximum of £1 ¢a¢h. The Company's registered number and registered office address can be found on page l. The pres¢Dtstional curre￿Y of th¢ financial statern¢nts 15 the US Dollar (S) which is also the fun¢tional ¢urren¢y forthe grovp. The International Foundation for Aids to Navigation meets th¢ definition of a public benefit ¢ntity under FRS 102. ACCOUNTING POLICIES Ba51$ of prtparation These financial stat¢m¢nts have Eyen prepared under the Companie5 Act 2LK16 and in accordance with the Charities Ststement of RecomTnended Practice C'Chariti¢s SORP (FRS102}") and Financial Reporting Standard 102. The finartc￿ siaremenis have been prepared underthe historical costC(XLvention. 8$ modified bythe revaluation ofcertain tsngible &sset5 and securities investments. Going concern The directOTS have considered the impact of the COVtD-19 vinL%. the unwtainty in T¢lation to th¢ UK withdrawal from the Eur(>pean Union and geopolitical uncertainty on the Via￿.]1ry of the company. Having reviewed the funding facilities available to the Company together with the expected ongoing trading condiiions and the Company's projected future cash flow5. the direct¢)rs have a ￿ asonable expectstion that the company will have sufficient funds to continue to meet its liabilities as they frdll due for the foreseeable fvwre and therefore have prepared the financi￿ swements on a going concern basis. Accordingly. the Board cortlinues io adopt the going concern basis in preparing its financial statements as outlined in th¢ Staternent of Accowiting and ReFM)rting Responsibilities on pag¢ I l. Basis of consolidation The consolidated financial siatements incorp)rdie ihe fmaneial ststements of the Company and its wholly owned subsidiaries Menas Marine Services Limited and Oman Marine SeThices Limiied. Control is achieved where the Group has the power to govern the financial and operdting FX)lici¢s of an entity so as to (kn¢ain benefits from its activitie5. All intrd-group tr3nsactions, balances. income and eX￿nseS are elitninaied in full on consolidation. No Separate SOFA has be¢n presented for ihe Company alone. as perniitt¢d by Section 408 of the Compani&s Act 2006. Income Income i5 th¢ omount derived from the provision of Charitsble ￿l¥ll1e$ and other trading activities. and from investment8 and is slated net of VA T. Incomefrom ChtsriÉable AuEvEiies Charitsble income represents navigation aid5 due5 r¢ceivabk. ith contractual and nort-contractual, as well as buoy maknfenance and project incoTne. Navigation aid5 due5 are xcoiinted for at the point aship enters the port. Buoy maintenanc¢ and project income is accounted for in accordance with th¢ contracthal *rnisof each projectand income isaccrued ordeletred accordingly. In¢omefrom Olher TToding A¢t￿lti Ship charter and management in¢ome represents third party iM)me from th¢ OSV R¢lum¢ and 1$ a¢counted for in the period in which the vessel is Chartered for us¢. Incomefrom Ipwesrmenis Investment income from fixed asset securities is accounted for on an xcruab b¥is. R¢ntal incom¢ is accounted for in the period to which the rentsl in¢ome relates. 18 INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION NOTES TO THE CONSOLIDATED Fif4ANCIAL STATEMEf4TS (CONTINUED) FOR THE YEAR EiYDED31 DECEMBER2022 2. ACCOUNTING POLICIES (eontinued) Expenditurt Expendinjre is accnjed once there is a legal constructive oblisation to make a payment to a third party, it is probable that settlernent will be rrquired and the arnount of the obligation can be rne&sured reliably. Exptnditute attributed to more than one cosr caiegory in the SOFA is allo¢aied to activities on a prow)rtional b&8is. Dirtri Costs. i￿lUdIng directly atrributable salaries, are allocated on an acwal basis to the key styaiegic areas of acbvity. Overheads and other salaries are a150 allocated between exkxnse headings on a proportional basis. Governance costs comprise the costs of complying with constityjtional and ststutory r¢quirem¢nts. Hire purchase and l¢a5ing commitmtnts Rentals payabl¢ under opeTating lease5 are Charged to the Sthternenl of Financial Activitie5 on a straight line iHsis over th¢ lease cenn. Lease incentives are recognised over th¢ [￿e tern on a Straight line b&5i5. Employ¢t benefjts Short term employee benefits, including holiday entiilernent and other nim-tnonetary benefits. ¥nd contributions to defined contribution plans are recognised as an expense in the peric4J in which they are incuntd. The Company's defined benefit scheme has now beert wound up. The Company is also required io Contribute towards a deficit in th¢ Merchant Nawy Officers Pension Funl and any future deficits which may ¢xcur in th¢ foreseeable ￿tUre will Ix relieved agaTnst amounts a]ready expensed. Foreign currency translation Assets and liabilities in foreign currencies are translated into US Dollats at the rates of exchange p￿vallIng at the balance Sheet dale. Trans￿riOnS in foreign currencies are translated into US Dollars ai the Tate of exchange njling ai the date of tran50¢tion. Exchange differences are taken tnto a¢¢ount in arriving at the operating resuh. T?x8tion The Company is an exempt charity within the Tneaning of schedule 3 of the Charities Act 2011 and is considered to pass ihe test5 set out in Parngraph I Schedule 6 Finance Aci 2010_ Therefore li meets the definirion of a Charitable Company for UK corporation tax purposes. Fund gccounting Unrestricied funds represent those fimds which can be used in accordan¢e with the Charitsble Cornpany's objects at the discr¢tion of the DireC￿r$. TAngible fixed 8ssets Tangible fixed asseis are staled at cL6t or valuaiiijn less depreciation. in accordance with FRS102 the lan4 whieh is held in perp¢tuity in Bahrain, is not deprecia*d. Fixed assets are subjectto an annual impairnjenr review. Any pernianeni diminutiQTtS in value are recorded. Depreciation IS PTovided to write off the cost of all relevanttangible r￿ed ass¢ts. less estirnated residua] Yalue, in equal annual instalments over their expE¢ted w8eful ¢wn(Mnic lives ￿ follows.- Buildings OSV R¢lume Navigation aids, plani and equTpment-. DGPS Computers and equipment Vehicles, plant and rnachinery and office equipment Other navigation aids and equipmeni 20 years 15 years 5 years 2yea 4 years Up lo 10 years 19 INTERTr4ATIONAL FOUNDATION FOR AIDS TO NAVIGATION OTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 2. ACCOUNTING POLICIES (cootsnued) Investments Listed investtnents are valued at market value a5 ai the balance Sheet date. Unr¢alised gains and losse5 arising on the revaluation of investtnents aT¢ credited or charged to the Sw¢ment of Financial Activities. Gains and loss¢s arising from changes in fair value are included in the StateTner]t of Financial Adivities as either an wireali5¢d gain or loss on investtnentS. iniere5t detem)ined using the effective inieresi metho¢ impaimient losses and translation difference5 on monetary iiems are Tecognised In the Sthtement of Financial Activiiies. Stocks Stocks are valued at the lower of cost and nei realisab]e value. Trade and other debtors Trdde and other d¢btors are musured at transaction price, ks5 any impairmenL Cash and cash equivalettts Cash and Gash equivalents in th¢ consolidated and charitsble company statement of fmancial position and in the consolidated cash flow statement comprise cash at bank and in hand and shortterm deposits wtth an original maturity date of three months or less. Trade and other ¢r¢ditors Trade and other creditors are melsured at theiT transaction price. Judgements and key sourets of estimation uncertainty Accounting estirnates and judgetThent5 are Coniinually evalua*d and are based on historical experience and other facts￿S, including expectations of fll￿re events that are ￿lieVed to be reasonabl¢ under the circumstance5. The Company makes estimates and &sswnprions concerning the futt￿e. The resulting accounting estimates and assumptions will, by def]nition, seldom equal the ￿ lated actual r&sulis. The e5timat¢5 and aSSUTllPtions that have a SI￿lfiCant risk of causing a material adjustment lo the carying amounts of assets and liabilihes within rhe ne￿ financial year are discussed below. Usefvl ecop¥omic lThes oftongible assets Th¢ annual depreciation charge for tangible assets is sensitiv¢ ts) changes in the estimated us¢fvl economic liv¢5 and residual values ofth¢ as5¢ts. The usefvl e¢onomi¢ lives and residual values are reassessed annually. They ajr amended when necessary to reflect current estirnat¢5. based on technological advancemenL futsre investments. economic utili5aiion and the physical ¢ondiiion of the assets. Vttluaiion of OSV Relzlme The valuati (132,719) 104.365 529,047 (366,027) Net Ash inflow l (ourtlow) from operations 91273JOI) Sl,163.973 20. CASH AND CASH EQUIVALENTS Al l J*ttu#ry 2022 N¢t ea$b now At 31 D¢cernb¢r 2022 Cash and depc6its 5,687J67 Q,90&667) 2,779JOO Cash and cash equivalents are made up entiffly of cash and depsits in both the current and prior year. 21. RELATED PARTY TRANSAcfioNS There are no related party transactions that require disc105ure during the year. 21 ULTIMATE coNfROLLING PARTY A5 at the balance sheei dale there is no one ultimat¢ rontrolling paTty. EVENTS AFTER THE REPORTING DATE OSV Relume- in late 2022 w¢ agreed a 6 month time-charter followed by a sale Oblig￿lon of the vessel which will ¢ornpl¢te during 2023. 29