China Classification Society - Limited company accounts 16.3

REGISTERED NUMBER: 06830172 (England and Wales)

Report of the Director and

Financial Statements for the Year Ended 31 December 2016

for

China Classification Society

London Co. Limited

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Income Statement

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTOR:

Mr B Hong

SECRETARY:

Mr J Y Zhang

REGISTERED OFFICE:

5th Floor

117-119 Houndsditch

London

EC3A 7BU

REGISTERED NUMBER:

06830172 (England and Wales)

AUDITORS:

Wilson & Co

Chartered Certified Accountants

and Registered Auditors

262 Caledonian Road

London

N1 0NG

The director presents his report with the financial statements of the company for the year ended 31 December 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of providing classification services for shipping,

shipbuilding and related manufacturing industries.

DIRECTORS

The directors who have held office during the period from 1 January 2016 to the date of this report are as follows:

Mr J P Chen - resigned 5 August 2016

Mr B Hong - appointed 5 August 2016

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Report of the Director and the financial statements in accordance with

applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve

the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and

of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the company's auditors are

aware of that information.

AUDITORS

The auditors, Wilson & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Mr B Hong - Director

21 September 2017

We have audited the financial statements of China Classification Society London Co. Limited for the year ended

31 December 2016 on pages five to nine. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),

including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of director and auditors

As explained more fully in the Statement of Director's Responsibilities set out on page two, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the director; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Director to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Report of the

Director for the financial year for which the financial statements are prepared is consistent with the financial statements,

and has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding

of the company and its environment, we have not identified any material misstatements in the Report of the Director.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Julie Wilson (Senior Statutory Auditor)

for and on behalf of Wilson & Co

Chartered Certified Accountants

and Registered Auditors

262 Caledonian Road

London

N1 0NG

21 September 2017

TURNOVER

784,650

549,083

Cost of sales

2,473

2,748

GROSS PROFIT

782,177

546,335

Administrative expenses

690,224

611,364

OPERATING PROFIT/(LOSS)

4

91,953

(65,029

)

Interest receivable and similar income

-

201

PROFIT/(LOSS) BEFORE TAXATION

91,953

(64,828

)

Tax on profit/(loss)

25,302

(9,142

)

PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

66,651

(55,686

)

FIXED ASSETS

Tangible assets

5

3,145

4,546

CURRENT ASSETS

Debtors

6

425,956

329,357

Cash at bank

149,889

174,454

575,845

503,811

CREDITORS

Amounts falling due within one year

7

226,309

222,327

NET CURRENT ASSETS

349,536

281,484

TOTAL ASSETS LESS CURRENT
LIABILITIES

352,681

286,030

CREDITORS

Amounts falling due after more than one
year

8

243,791

NET ASSETS

108,890

42,239

CAPITAL AND RESERVES

Called up share capital

1,000

Retained earnings

107,890

41,239

SHAREHOLDERS' FUNDS

108,890

42,239

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 21 September 2017 and were signed by:

Mr B Hong - Director

1.	STATUTORY INFORMATION

China Classification Society London Co. 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

On the basis of long term financial support from its parent company, the company will continue in operational

existence in the foreseeable future. For this reason, the director continue to adopt going concern basis to

preparing financial statements.

Turnover

Turnover represents net invoiced sales of goods/services, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery etc

-

20% on cost

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 .

4.	OPERATING PROFIT/(LOSS)

The operating profit (2015 - operating loss) is stated after charging:

31.12.16

31.12.15

£

Depreciation - owned assets

2,498

2,530

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2016

83,907

Additions

1,097

At 31 December 2016

85,004

DEPRECIATION

At 1 January 2016

79,361

Charge for year

2,498

At 31 December 2016

81,859

NET BOOK VALUE

At 31 December 2016

3,145

At 31 December 2015

4,546

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

Trade debtors

295,134

216,091

Other debtors

130,822

113,266

425,956

329,357

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

Amounts owed to group

undertakings - UK

Representative Office

120,759

110,759

Taxation and social security

25,737

11,427

Other creditors

79,813

100,141

226,309

222,327

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

31.12.16

31.12.15

£

Amounts owed to group undertakings

243,791

9.	CAPITAL COMMITMENTS

31.12.16

31.12.15

£

Contracted but not provided for in the

financial statements

80,579

10.	OTHER FINANCIAL COMMITMENTS

At the year end the company had total commitments under operation leases expiring after 3 years of £302,172.

11.	RELATED PARTY DISCLOSURES

At the balance sheet date, the amount due to its parent company China Classification Society Beijing was

£114,791 (2015: £114,791) and a long term loan of £129,000 (2015: £129,000).

At the balance sheet date, the amount due to other group undertakings China Classification Society UK

Representative Office was £120,759 (2015: £110,759l).

12.	ULTIMATE CONTROLLING PARTY

The company is a subsidiary of China Classification Society Beijing, a company registered and operated in

People's Republic of China.