Shanghai Rainbow Estate Limited - Period Ending 2019-12-31

SHANGHAI RAINBOW ESTATE LIMITED - Company Information

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Registration number: 04429371

Shanghai Rainbow Estate Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2019

Shanghai Rainbow Estate Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Statement of Changes in Equity	4
Notes to the Unaudited Financial Statements	5 to 10

Shanghai Rainbow Estate Limited

Company Information

Directors

Mrs Janet Treacy Pierce

Ms Xiaohong Liu

Company secretary

Ms Xiaohong Liu

Registered office

Suite LG
11 St James's Place
London
SW1A 1NP

Accountants

Charter Tax Consulting Limited
11 St. James's Place
London
SW1A 1NP

Shanghai Rainbow Estate Limited

(Registration number: 04429371)
Balance Sheet as at 31 December 2019

	Note	2019 €	2018 €
Fixed assets
Tangible assets	5	3,500,000	3,500,000
Other financial assets	6	249,125	242,214
		3,749,125	3,742,214
Current assets
Debtors	7	4,814	41,198
Cash at bank and in hand		33,756	196,014
		38,570	237,212
Creditors: Amounts falling due within one year	8	(4,240,270)	(4,164,615)
Net current liabilities		(4,201,700)	(3,927,403)
Net liabilities		(452,575)	(185,189)
Capital and reserves
Called up share capital	9	1,616	1,616
Other reserves		497,902	510,196
Profit and loss account		(952,093)	(697,001)
Shareholders' deficit		(452,575)	(185,189)

For the financial year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Shanghai Rainbow Estate Limited

(Registration number: 04429371)
Balance Sheet as at 31 December 2019

Approved and authorised by the Board on 30 December 2020 and signed on its behalf by:

.........................................

Mrs Janet Treacy Pierce
Director

Shanghai Rainbow Estate Limited

Statement of Changes in Equity for the Year Ended 31 December 2019

	Share capital €	Non-distributable reserve €	Profit and loss account €	Total €
At 1 January 2019	1,616	510,196	(697,001)	(185,189)
Loss for the year	-	-	(267,386)	(267,386)
Total comprehensive income	-	-	(267,386)	(267,386)
Transfers	-	(12,294)	12,294	-
At 31 December 2019	1,616	497,902	(952,093)	(452,575)

	Share capital €	Non-distributable reserve €	Profit and loss account €	Total €
At 1 January 2018	1,616	-	(633,152)	(631,536)
Loss for the year	-	-	(63,849)	(63,849)
Total comprehensive income	-	-	(63,849)	(63,849)
Transfers	-	510,196	-	510,196
At 31 December 2018	1,616	510,196	(697,001)	(185,189)

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales .

The address of its registered office is:
Suite LG
11 St James's Place
London
SW1A 1NP
United Kingdom

These financial statements were authorised for issue by the Board on 30 December 2020.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	25% Straight line
Security equipment	25% Straight line
Arbour	25% Straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for rental income due.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2018 - 0).

Taxation

Tax charged/(credited) in the income statement

	2019 €	2018 €
Deferred taxation
Deferred Tax on property revaluations	12,294	-
Tax expense in the income statement	12,294	-

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

5	Tangible assets

	Land and buildings €	Furniture, fittings and equipment €	Other property, plant and equipment €	Total €
Cost or valuation
At 1 January 2019	3,500,000	17,800	7,000	3,524,800
At 31 December 2019	3,500,000	17,800	7,000	3,524,800
Depreciation
At 1 January 2019	-	17,800	7,000	24,800
At 31 December 2019	-	17,800	7,000	24,800
Carrying amount
At 31 December 2019	3,500,000	-	-	3,500,000
At 31 December 2018	3,500,000	-	-	3,500,000

Included within the net book value of land and buildings above is €3,500,000 (2018 - €3,500,000) in respect of freehold land and buildings. The valuation of the investment property was carried out by an independent valuer.

Revaluation

The fair value of the company's Land and buildings was reconsidered by the directors as at 31 December 2018 and they consider that there would have been no material change in value. An independent valuer was not involved.

The valuation has remained unchanged and has been based on the current market value of the property based on the market trends in its location, Via San Michele di Pagana.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been €2,885,306 (2018 - €2,885,306).

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

6	Other financial assets (current and non-current)

	Financial assets at fair value through profit and loss €	Total €
Non-current financial assets
Cost or valuation
At 1 January 2019	242,214	242,214
Additions	62,212	62,212
Disposals	(69,460)	(69,460)
Fair value adjustments	14,159	14,159
At 31 December 2019	249,125	249,125
Carrying amount
At 31 December 2019	249,125	249,125

Debtors

	2019 €	2018 €
Trade debtors	-	36,000
Prepayments	3,971	3,815
Other debtors	843	1,383
	4,814	41,198

Creditors

Creditors: amounts falling due within one year

	2019 €	2018 €
Due within one year
Trade creditors	81,575	138,215
Taxation and social security	116,792	104,498
Other creditors	4,041,903	3,921,902
	4,240,270	4,164,615

Shanghai Rainbow Estate Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2019

9	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	€	No.	€
Ordinary shares of €1.62 each	1,000	1,616.00	1,000	1,616.00

10	Related party transactions

Summary of transactions with other related parties

Ms X Liu (Shareholder)
During the year, the shareholder increased their loan to the company by €120,001 (2018 - €364,838). At the balance sheet date, the amount due to Ms X Liu was €4,041,903 (2018 - €3,921,902).

11	Financial instruments

Financial assets measured at fair value

Edmond de Rothschild - Investment Portfolio
Listed investment bonds, where fair value is readily available. The change in value listed below includes the fair value movement and revaluation gain on foreign exchange.

The fair value is €249,125 (2018 - €242,214) and the change in value included in profit or loss is €2,002 (2018 - €7,484).