Årsrapport33771231PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabStrandvejen 442900 Hellerup2020-07-012019-02-272021-06-302020-06-3040300937Union Bulk A/SStrandvejen 169 - 171, 1.2900Hellerup2019-02-27Gentofteunionbulk.dkPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab33771231Strandvejen442900HellerupDanmark2021-11-15Jens Riis BoesenRegnskabsklasse BRevisionspåtegningThe Executive Board and Board of Directors have today considered and adopted the Annual Report of Union Bulk A/S for the financial year 1 July 2020 - 30 June 2021.The Annual Report is prepared in accordance with the Danish Financial Statements Act.In our opinion the Financial Statements give a true and fair view of the financial position at 30 June 2021 of the Company and of the results of the Company operations for 2020/21.In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review.We recommend that the Annual Report be adopted at the Annual General Meeting.Hellerup2021-11-15Jens Riis BoesenRikke Birgitte SkovJens Riis BoesenAnders Nis SvarrerTo the Shareholders of Union Bulk A/SOpinionIn our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 30 June 2021 and of the results of the Company’s operations for the financial year 1 July 2020 - 30 June 2021 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Union Bulk A/S for the financial year 1 July 2020 - 30 June 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financials Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines 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, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. 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 and the additional requirements applicable in Denmark 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. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Hellerup2021-11-15Hellerup2021-11-15PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabFlemming EghoffState Authorized Public Accountantmne30221Key activities The principal activities are shipping activities Development in the year The income statement of the Company for 2020/21 shows a profit of USD 12,511,094, and at 30 June 2021 the balance sheet of the Company shows equity of USD 15,345,003. This is our second annual accounts, and we can report a result that exceeds expectations. The management is very satisfied with the result, which gives us a sound outset for our continued execution of our strategy to expand our activities in the handysize and supramax drycargo markets. The main part of the result has been accumulated in the second half of the financial year where a significant upturn in the dry cargo freight rates began in February 2021. The high freight market has continued well into the new financial year. Union Bulk A/S have ben well positioned to profit from this upturn which is shown by the underlying activity in our company: both measured in individual voyages and in ship days our activity has nearly doubled compared to our first financial year (that lasted 15 months) proving our commitment to expand in the market. Apart from expanding our activity we have focused on developing our relations with our clients and are well positioned to continue our growth. Targets and expectations for the year ahead With the increase in freight rates, risk has also increased, and the risk of losses - should the market drop - has increased significantly compared to the same time last year. Our strategy is to not increase activity at any cost, and we will continue to weigh the market risk into our decisions going forward. Our ambition is still to expand our activity. The management has firm belief that our financial results also next year 2021/2022 will be satisfactory. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.9200751036411996771947053327986537738231260514435423281952612890376812641314638621382622125223213383868206081327504021497877639461486781251109420011098000000667200451109413339091954901954901954902507218900805223742849923402762824012897917171317612243576774616262178414390844307966423672678660225323692227660225391803918039180391803725320027421068000000667200153450033501109104193680000875562514867811290775272865420586162517283472243101144834722431011442369222766022539180327421066672000-66720045110948000000918037253200800000012389246761312141955479724178128903768126464763946148678763946148678Prepayments comprises prepaid expenses concerning charter, insurance premiums, etc. Deferred income consist of payments received in respect of income in subsequent years.Rental and lease obligations The company´s contractual obligations relating to chartering of vessels amounts total (short term kUSD 42.778 more than 1 year kUSD 5.122) 47.900.000 6.040.000 Other contingent liabilities The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group.The Compamy is included in the Group Annual Report of Bradley Cairns ApS Name Place of registered office Bradley Cairns ApS GentofteThe Annual Report of Union Bulk A/S for 2020/21 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B. The accounting policies applied remain unchanged from last year. The Financial Statements are presented in USD with exchange rate as 30 June 2021 usd 625,73 (30 June 2020 - USD 665,53).Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Vessel operating costs comprise the raw materials and consumables consumed to achieve revenue for the year.Other external expenses comprise expenses for premises and office expenses etc.Staff expenses comprise wages and salaries as well as payroll expenses.Financial income and expenses are recognised in the income statement at the amounts relating to the financial year.The Company is comprised by the tonnage tax regime. No provision is made for deferred tax since no deferred tax is expected to arise under the tonnage tax regime. The Company is jointly taxed with the ultimative parent company. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes.Fixed asset investments consist of deposits (rents).Bunkers are measured at the lower of cost under the FIFO method and net realisable value.Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts.Prepayments comprise prepaid expenses concerning charter, insurance premiums, etc..Dividend distribution proposed by Management for the year is disclosed as a separate equity item.Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses.Debts are measured at amortised cost, substantially corresponding to nominal value.Deferred income comprises payments received in respect of income in subsequent years.The share capital consists of 600,000 shares of a nominal value of DKK 1. 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