EATON-UPON-TERN_SOLAR_LIM - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Eaton-Upon-Tern Solar Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 & 3, Whiteside Business Park Station Road, Holmes Chapel, Crewe, CW4 8AA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

During the period the company made a loss trueof £15,297 and and at the period end the balance sheet had a deficit of £15,296. The company is in the early stages of developing its solar farm project and is therefore reliant on the financial support of its parent company, Kingdom Energy Limited. The ability of Kingdom Energy Limited to provide such financial support is itself dependent upon that company's own liquidity and the timely collection of advance receipts relating to the sale of that company's power projects. Kingdom Energy Limited is also dependent upon its shareholders, Shanghai Electric Hong Kong International Engineering Company Limited and United Renewables Limited (both companies are registered in Hong Kong) for financial support. The above uncertainties give rise to a material uncertainty that may cast doubt on the company's ability to continue as a going concern. Notwithstanding this uncertainty, the directors consider it appropriate to adopt the going concern basis in preparing the financial statements.

These financial statements relate to a period of less than 12 months, from 1 November 2020 to 31 December 2020. The comparatives relate to a period from incorporation, on 25 October 2019, to 31 October 2020.

Tangible fixed assets which include assets under construction are initially measured at cost and subsequently measured at cost net of any impairment losses.

No depreciation is charged on assets under construction.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 in the company's balance sheet 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, which include #tErm6, 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

There were no employees during the period.

During the period the company received loans and services from its parent company. Interest payable during the period on the interest bearing loans amounted to £4. The total balance due to Kingdom Energy Limited at the balance sheet date was £218,242.

During the period the company obtained an advance payment of £1,350,000 from Shanghai Electric Hong Kong International Engineering Company Limited, a significant shareholder of Kingdom Energy Limited, towards a warranty bond, which was received and held by Kingdom Energy Limited. This amount was outstanding at the period end and included in debtors under amounts owed by group undertakings, and in creditors due after more than 1 year.

At the balance sheet date the company was owed by Peplow Solar Limited, a fellow subsidiary company, an amount of £9,023. This balance is interest free and repayable on demand.

The immediate parent company is Kingdom Energy Limited whose registered office address is 20 North Audley Street, London, W1K 6LX.

The ultimate parent company is United Renewables Limited, a company incorporated in Hong Kong, and the ultimate controlling party is Arthur Chien.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Material uncertainty relating to going concern

We draw your attention to note 1.2 in the financial statements, which indicates that the company is dependent upon the financial support of its parent company, Kingdom Energy Limited. The ability of Kingdom Energy Limited to provide such financial support is itself dependent upon that company's own liquidity position and the timely collection of advance receipts relating to the sale of that company's power projects. Kingdom Energy Limited is also dependent upon the financial support of its shareholders, Shanghai Electric Hong Kong International Engineering Company Limited and United Renewables Limited (both companies are registered in Hong Kong) for financial support. The above uncertainties give rise to a material uncertainty, that may cast doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.