WSE West Holcombe Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08524134 (England and Wales)

Financial Statements for the Year Ended 31 December 2021

for

WSE West Holcombe Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTOR:

K Zhang

REGISTERED OFFICE:

3 More London Riverside

C/O Shanghai Electric UK Company Limited

Room 166, More London Place

London

SE1 2RE

REGISTERED NUMBER:

08524134 (England and Wales)

AUDITORS:

Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

FIXED ASSETS

Tangible assets

4

3,335,503

221,173

CURRENT ASSETS

Debtors

5

152,475

594,852

Cash at bank

117,817

-

270,292

594,852

CREDITORS

Amounts falling due within one year

6

3,629,693

319,042

NET CURRENT (LIABILITIES)/ASSETS

(3,359,401

)

275,810

TOTAL ASSETS LESS CURRENT LIABILITIES

(23,898

)

496,983

CREDITORS

Amounts falling due after more than one year

7

-

491,400

NET (LIABILITIES)/ASSETS

(23,898

)

5,583

CAPITAL AND RESERVES

Called up share capital

250

250

Other reserves

64,795

64,795

Retained earnings

(88,943

)

(59,462

)

(23,898

)

5,583

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 1 September 2022 and were signed by:

K Zhang - Director

1.	STATUTORY INFORMATION

WSE West Holcombe Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

The company incurred a loss before tax of £29K (2020 loss: £9K) during the year, had net current liabilities and net liabilities of £3.63mil and £23.9K respectively (2020 net current assets and net : assets £275K and £5.6K) at the balance sheet date, mainly due to £3.30mil due to its fellow subsidiary, which were used to fund its construction work. The director considered the immediate parent's ability to facilitate the company's working capital and expected electricity income in the end of 2022, and concluded that the company has adequate resource in operational existence for the next 12 months from the date of signing these financial statements. The financial statements are therefore prepared on a going concern basis without reflecting the material uncertainty existence that may cast significant doubt on the company's ability to continue as a going concern.

Comparative figures

Certain comparative figures have been restated where necessary to conform with current period presentation.

Tangible asset - assets under construction

Tangible fixed assets represent assets under construction, which are stated at cost. These assets are not depreciated until they are available for use.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, and loans from group undertakings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Share capital

Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

The company's ordinary shares are classified as equity instruments.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Income Statements on a straight line basis over the period of lease.

Contingencies: decommissioning provision

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Decommissioning provision is not recognised until commencement date under the term.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2020 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Asset

Under

Construction

£

COST

At 1 January 2021

221,173

Additions

3,114,330

At 31 December 2021

3,335,503

NET BOOK VALUE

At 31 December 2021

3,335,503

At 31 December 2020

221,173

Construction in progress is stated at cost and not depreciated until it is available for use.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Amounts owed by group undertakings

28,154

28,154

Other debtors

124,321

566,698

152,475

594,852

All amounts owed by group companies are unsecured, interest free and repayable on demand.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Trade creditors

699,548

-

Amounts owed to group undertakings

493,988

2,522

Other creditors

2,436,157

316,520

3,629,693

319,042

The trade creditors of £699,548 and an accrued expenses of £2,108,487 included in other creditors were payable to the EPC contractor, which is the company's fellow subsidiary in the UK.

In the amounts owed to group undertakings, a balance of £491,400 represents the EPC deposit held and due to the company's fellow subsidiary in Hong Kong. This deposit is going to be released and/or returned upon issuance of the provisional acceptance certificate for the project. The project is expected to be completed in year 2022. The remaining balance is due to other UK project companies, which are the company's fellow subsidiaries. Balances are unsecured, interest free, and repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Amounts owed to group undertakings

-

491,400

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.21

31.12.20

as restated

£

£

Within one year

30,579

15,290

Between one and five years

122,317

122,317

In more than five years

1,281,901

1,314,910

1,434,797

1,452,517

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Julie Zhuge Wilson (Senior Statutory Auditor)

for and on behalf of Shinewing Wilson Accountancy Limited

10.	CONTINGENT LIABILITIES

As per lease agreement, prior to the 35th year of the lease term, the company must obtain estimates from third party contractor appointed by landlord of (i) the cost of removing the solar farm equipment and yielding up the Property with vacant possession ("Estimated Costs") and (ii) the estimated value of the solar farm equipment (the "Estimated Value"). On the 35th anniversary of the Term Commencement Date, the company will need to contribute 5 payments to build up a sum equal to the Required Security before the end of the Term.

Therefore, decommissioning provision is not provided until 2055.

11.	CAPITAL COMMITMENTS

31.12.21

31.12.20

as restated

£

£

Contracted but not provided for in the

financial statements

1,855,621

4,663,656

12.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

13.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Projectpower UK Limited, a company incorporated and registered in Hong Kong, Room 4306-4307 43/F, Far East Finance Centre, No.16 Harcourt Road, Hong Kong.

The ultimate parent company is Project Power Limited, a company incorporated and registered in 190 Elgin Avenue, George Town, Grand Cayman KY1-9008, Cayman Islands.

There is no one ultimate controlling party.