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Registration number: 01963434

Chung Ying Cantonese Restaurant Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2021

 

Chung Ying Cantonese Restaurant Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 13

 

Chung Ying Cantonese Restaurant Limited

Company Information

Directors

Mrs Yuk Ying Wong

Mr James Wong

Registered office

16-18 Wrottesley Street
Birmingham
West Midlands
B5 4RT

Accountants

RSW Chartered Accountants
Unit 6,
17 Thorp Street
Birmingham
West Midlands
B5 4AT

 

Chung Ying Cantonese Restaurant Limited

(Registration number: 01963434)
Balance Sheet as at 31 May 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

4

1,387

-

Tangible assets

5

170,243

176,381

 

171,630

176,381

Current assets

 

Stocks

6

20,595

21,492

Debtors

7

125,495

109,025

Cash at bank and in hand

 

459,468

291,591

 

605,558

422,108

Creditors: Amounts falling due within one year

8

(2,254,819)

(2,275,882)

Net current liabilities

 

(1,649,261)

(1,853,774)

Total assets less current liabilities

 

(1,477,631)

(1,677,393)

Creditors: Amounts falling due after more than one year

8

(40,488)

(50,000)

Provisions for liabilities

(8,897)

(8,897)

Net liabilities

 

(1,527,016)

(1,736,290)

Capital and reserves

 

Called up share capital

9

5,000

5,000

Retained earnings

(1,532,016)

(1,741,290)

Shareholders' deficit

 

(1,527,016)

(1,736,290)

For the financial year ending 31 May 2021 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.

Approved and authorised by the Board on 29 August 2022 and signed on its behalf by:
 

 

Chung Ying Cantonese Restaurant Limited

(Registration number: 01963434)
Balance Sheet as at 31 May 2021

.........................................
Mr James Wong
Director

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

1

General information

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

The address of its registered office is:
16-18 Wrottesley Street
Birmingham
West Midlands
B5 4RT
England

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 company had another poor year of trade. The Directors continue to pledge the support for the company and has taken action to try and reduce future losses. The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
Goods and services have been supplied to the customer.

Government grants

Government grants are recognised when the company has gained a right to the income. These amounts are matched to the same period as any related expenditure.

Tax

Deferred tax is recognised upon timing differences between the company expenditure and the taxable deduction gained from this expenditure. This difference noted is then applied at the current prevailing tax rate.
However deferred tax is only recognised when the company foresees this liability to arise in the forseeable future. Currently, due to sustained trading deficits, no deferred tax is being recognised.

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

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

15% Reducing balance

Motor Vehicles

25% Reducing balance

Property Improvements

10% Straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Website costs

25% straight line

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 merchandise sold or services performed in the ordinary course of business.

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.

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 43 (2020 - 42).

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

4

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 June 2020

100,000

1,850

101,850

Additions acquired separately

-

1,850

1,850

At 31 May 2021

100,000

3,700

103,700

Amortisation

At 1 June 2020

100,000

1,850

101,850

Amortisation charge

-

463

463

At 31 May 2021

100,000

2,313

102,313

Carrying amount

At 31 May 2021

-

1,387

1,387

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2020

1,186,101

11,317

1,197,418

Additions

25,545

-

25,545

At 31 May 2021

1,211,646

11,317

1,222,963

Depreciation

At 1 June 2020

1,016,085

4,952

1,021,037

Charge for the year

30,092

1,591

31,683

At 31 May 2021

1,046,177

6,543

1,052,720

Carrying amount

At 31 May 2021

165,469

4,774

170,243

At 31 May 2020

170,016

6,365

176,381

6

Stocks

2021
£

2020
£

Other inventories

20,595

21,492

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

7

Debtors

Current

Note

2021
£

2020
£

Trade debtors

 

4,077

6,072

Amounts owed by related parties

11

69,276

68,276

Prepayments

 

27,814

12,155

Other debtors

 

24,328

22,522

   

125,495

109,025

8

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Bank loans and overdrafts

10

516,294

508,604

trade creditors

 

26,269

87,148

Amounts owed to group undertakings and undertakings in which the company has a participating interest

11

1,500,522

1,500,522

Taxation and social security

 

102,974

129,812

Accruals and deferred income

 

70,572

32,433

Other creditors

 

38,188

17,363

 

2,254,819

2,275,882

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £7,753 (2020 - £ 9,708).

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

10

40,488

50,000

2021
£

2020
£

Due after more than five years

After more than five years by instalments

-

10,500

-

-

9

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary Share Capital of £1 each

5,000

5,000

5,000

5,000

         

10

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

40,488

50,000

2021
£

2020
£

Current loans and borrowings

Bank borrowings

9,512

-

Other borrowings

506,782

508,604

516,294

508,604

Bank borrowings

Bounceback loan is denominated in Sterling with a nominal interest rate of 2.5%, and the final instalment is due on 15 May 2026. The carrying amount at year end is £50,000 (2020 - £50,000).

Included in the loans and borrowings are the following amounts due after more than five years:

Bank loans and overdrafts after five years

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

Bounceback - loan interest rate fixed at 2.5%.

11

Related party transactions

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

Directors' remuneration

The directors' remuneration for the year was as follows:

2021
£

2020
£

Remuneration

22,480

23,850

Contributions paid to money purchase schemes

488

527

22,968

24,377

Summary of transactions with entities with joint control or significant interest

RJW Investments Limited provides an interest free loan with no stated terms for repayment.
 

Summary of transactions with other related parties

Chung Ying Central Limited is recharged foodstuffs at cost with balances repayable on demand.
HBK Investments PTE Ltd (Singapore) provides an interest free loan with no stated terms for repayment.

 

Loans to related parties

2021

Other related parties
£

Total
£

At start of period

68,276

68,276

Advanced

1,000

1,000

At end of period

69,276

69,276

2020

Other related parties
£

Total
£

At start of period

146,774

146,774

Repaid

(78,498)

(78,498)

At end of period

68,276

68,276

Terms of loans to related parties

Chung Ying Central Ltd

Loans from related parties

2021

Entities with joint control or significant influence
£

Other related parties
£

Total
£

At start of period

1,349,211

50,000

1,399,211

At end of period

1,349,211

50,000

1,399,211

 

Chung Ying Cantonese Restaurant Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2021

2020

Entities with joint control or significant influence
£

Other related parties
£

Total
£

At start of period

1,349,211

50,000

1,399,211

At end of period

1,349,211

50,000

1,399,211

Terms of loans from related parties

RJW Investments Ltd
 HBK Investments PTE Ltd