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REGISTERED NUMBER: 11940234 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

Shanghai Electric UK Company Limited

Shanghai Electric UK Company Limited (Registered number: 11940234)






Contents of the Financial Statements
for the Year Ended 31 December 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Statement of Directors' Responsibilities 5

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


Shanghai Electric UK Company Limited

Company Information
for the Year Ended 31 December 2021







DIRECTORS: WF Chen
W Yu
K Zhang





REGISTERED OFFICE: 3 More London Riverside
Room 166
London
W1K 6LX





REGISTERED NUMBER: 11940234 (England and Wales)





AUDITORS: Shinewing Wilson Accountancy Limited
Chartered Certified Accountants
and Statutory Auditors
9 St Clare Street
London
EC3N 1LQ

Shanghai Electric UK Company Limited (Registered number: 11940234)

Strategic Report
for the Year Ended 31 December 2021

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The company has been involved in the engineering, procurement and construction ("EPC") of photovoltaic solar power projects in the United Kingdom (UK) and Greece this year. In the current year, the company has completed the UK project Branston and 51 contracted Greece projects near Volos and Magnesia, Greece. Due to the outbreak of the pandemic Covid 19 resulting in national lockdown measures being enforced in 2020, eight projects in the UK have been delayed to 2021. At the time of signing these financial statements, project WSE has been connected with National Grid and generated income in Feburary 2022 under price purchase agreement ("PPA"). Projects Ingham, Outwood and Bishop are in the process to connect with National Grid. The management constantly monitors the progress of all projects and confident that the rest of four porjects are going to be connected and generating electricity income by the end of 2022.

During the year ended 31 December 2021 the business has grown its revenue by 43% to £49,664K (2020: £34,638K) following the progress of its eight UK projects. The company's profit before taxation for the financial year is £3,331K (2020: £2,072K).

FUTURE DEVELOPMENT
The company is continuously looking for new projects, to create solar power by building responsible and sustainable projects for businesses and local communities. The company expects its solar projects to have a positive impact on the environments and communities.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks. The main risks and uncertainties are as follows:

Health & Safety risk
Inherently working with electricity exposes the company to health and safety risk. Creating and maintaining a long term, continuously safe and healthy environment is always the company's top priority. The company is committed to ensure all safety measures are taken to protect its employees, customers and business partners, to safe delivery of its business to the communities, and continuously creating sustainable solutions that are safe by design.

Liquidity risk
The ability of the company to meet its current obligations needs to be continually considered, particularly more than ever now in the current macro-economic environment and Covid pandemic. The company monitors its liquidity forecasting on a quarterly basis, providing the management information and time to identify and remedy any worse situations before they happy.

Financing risk
The company's activities expose it primarily to the financial risks of continuation of work contracts, and the associated funding, from the parent company. Short-term financing risk is managed by close liaison with the parent company to ensure that loan facility is available and supported in a timely matter.

Foreign exchange risk
The company's profitability may increase or decrease if the change in costs or income due to exchange rate fluctuates from that originally expected, therefore, the management ensures to have a robust foreign exchange strategy along with associated policies and procedures in place to deal with this change.

Ukraine conflict
Following the outbreak of the conflict in Ukraine, the company has acknowledged price risks. As such, the company continues to monitor its contracts, works with its consultants and its customers to ensure the appropriate actions are taken to minimise the impact to the business.


Shanghai Electric UK Company Limited (Registered number: 11940234)

Strategic Report
for the Year Ended 31 December 2021

KEY PERFORMANCE INDICATORS
The key performance indicators of the company were as follows:

31 December 2021 31 December 2020 Change
£'000 £'000
Turnover 49,664 34,638 43%+
Gross profit 5,116 1,138 350%+
Operating profit 3,845 2,619 47%+
As at 31 December 2021, the Company had net current assets amounts to £9,476K (2020: £6,778K).

In conjunction with the management of costs and working capital to improve profit, the company uses a number of KPIs to monitor performance. These KPIs are monitored both on a contract basis and also for the company as a whole, compared to budget.

ON BEHALF OF THE BOARD:





K Zhang - Director


9 September 2022

Shanghai Electric UK Company Limited (Registered number: 11940234)

Report of the Directors
for the Year Ended 31 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of construction of utility projects for electricity and telecommunications.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS
Xiaohong Zheng - resigned 6 August 2021

WF Chen , W Yu and K Zhang were appointed as directors after 31 December 2021 but prior to the date of this report.

Xiaorong Yi ceased to be a director after 31 December 2021 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 4.14C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch.7 to be contained in the directors' report. It has done so in respect of review of the business, future developments and risk management.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director 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, Shinewing Wilson Accountancy Limited, has been accepted for appointment at the Annual General Meeting.

ON BEHALF OF THE BOARD:





K Zhang - Director


9 September 2022

Shanghai Electric UK Company Limited (Registered number: 11940234)

Statement of Directors' Responsibilities
for the Year Ended 31 December 2021

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

Report of the Independent Auditors to the Members of
Shanghai Electric UK Company Limited

Opinion
We have audited the financial statements of Shanghai Electric UK Company Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2021 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Shanghai Electric UK Company Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Shanghai Electric UK Company Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law and Tax legislation.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, General Data Protection Regulation (GDPR), Electricity Act 1989, The Town and Country Planning Act 1990, The Energy Act 2013 and Construction legislation 2015.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Shanghai Electric UK Company Limited


Use of our report
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.




Julie Zhuge Wilson (Senior Statutory Auditor)
for and on behalf of Shinewing Wilson Accountancy Limited
Chartered Certified Accountants
and Statutory Auditors
9 St Clare Street
London
EC3N 1LQ

13 September 2022

Shanghai Electric UK Company Limited (Registered number: 11940234)

Income Statement
for the Year Ended 31 December 2021

31.12.21 31.12.20
as restated
Notes £    £   

TURNOVER 4 49,663,913 34,637,561

Cost of sales 44,547,840 33,499,928
GROSS PROFIT 5,116,073 1,137,633

Administrative expenses 1,271,039 (1,480,858 )
3,845,034 2,618,491

Other operating income - 304
OPERATING PROFIT 6 3,845,034 2,618,795

Interest receivable and similar income - 211
3,845,034 2,619,006

Interest payable and similar expenses 7 514,425 546,564
PROFIT BEFORE TAXATION 3,330,609 2,072,442

Tax on profit 8 632,881 393,727
PROFIT FOR THE FINANCIAL YEAR 2,697,728 1,678,715

Shanghai Electric UK Company Limited (Registered number: 11940234)

Other Comprehensive Income
for the Year Ended 31 December 2021

31.12.21 31.12.20
as restated
Notes £    £   

PROFIT FOR THE YEAR 2,697,728 1,678,715


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,697,728

1,678,715

Shanghai Electric UK Company Limited (Registered number: 11940234)

Statement of Financial Position
31 December 2021

31.12.21 31.12.20
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 792 1,010

CURRENT ASSETS
Debtors 11 83,852,130 50,385,820
Cash at bank and in hand 2,649,718 2,902,757
86,501,848 53,288,577
CREDITORS
Amounts falling due within one year 12 77,025,774 46,510,449
NET CURRENT ASSETS 9,476,074 6,778,128
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,476,866

6,779,138

CAPITAL AND RESERVES
Called up share capital 14 5,000,000 5,000,000
Retained earnings 4,476,866 1,779,138
SHAREHOLDERS' FUNDS 9,476,866 6,779,138

The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2022 and were signed on its behalf by:





K Zhang - Director


Shanghai Electric UK Company Limited (Registered number: 11940234)

Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 5,000,000 100,423 5,100,423

Changes in equity
Total comprehensive income - 1,678,715 1,678,715
Balance at 31 December 2020 5,000,000 1,779,138 6,779,138

Changes in equity
Total comprehensive income - 2,697,728 2,697,728
Balance at 31 December 2021 5,000,000 4,476,866 9,476,866

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements
for the Year Ended 31 December 2021

1. STATUTORY INFORMATION

Shanghai Electric UK Company 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Going concern
The company's profit before tax for the year ended 31 December 2021 was £3.33mil and its net current assets as at 31 December 2021 amounted to £9.48mil (2020: £6.78mil). In addition, the immediate parent has confirmed to continuously provide financial support to the company for at least twelve months from the date of signing these financial statements to meet the company's liabilities. At the time of approving the financial statements, the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Turnover
The company generates income from its construction contracts.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognized by reference to the stage of completion of the contract activity at the reporting date, measured as the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer. Where the outcome of the construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that it is probable will be recoverable.

Accrued income represents turnover recognised in excess of payments on accounts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 20% on cost

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

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.


Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

Operating leases: the company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years that are affected.

Revenue recognition and accrued income

In order to apply the company's revenue recognition policy for contract income, management has made judgements as to the stage of completion of work in progress and the likely outcome of each contract. Normally, these contracts take between 12 and 24 months to complete. However, there have been delays in completing contracts due to Covid 19, and accordingly the revenue shown in note 3 is estimated.

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.21 31.12.20
as restated
£    £   
United Kingdom 49,548,643 22,614,148
Europe 115,270 12,023,413
49,663,913 34,637,561

5. EMPLOYEES AND DIRECTORS
31.12.21 31.12.20
as restated
£    £   
Wages and salaries 119,265 102,899
Social security costs 10,630 8,730
Other pension costs 769 656
130,664 112,285

The average number of employees during the year was as follows:
31.12.21 31.12.20
as restated

Admin 3 4

31.12.21 31.12.20
as restated
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.21 31.12.20
as restated
£    £   
Other operating leases 205,731 235,381
Depreciation - owned assets 218 80
Auditors' remuneration 6,000 6,000
Auditors' remuneration for non audit work 3,829 -
Foreign exchange differences 880,776 (1,979,013 )

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.21 31.12.20
as restated
£    £   
Bank interest 448 16
Loan interest 513,977 546,548
514,425 546,564

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.21 31.12.20
as restated
£    £   
Current tax:
UK corporation tax 632,881 393,727
Tax on profit 632,881 393,727

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.21 31.12.20
as restated
£    £   
Profit before tax 3,330,609 2,072,442
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

632,816

393,764

Effects of:
Expenses not deductible for tax purposes 22 115
Capital allowances in excess of depreciation - (192 )
Depreciation in excess of capital allowances 41 -
Other tax 2 40
Total tax charge 632,881 393,727

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

9. PRIOR YEAR ADJUSTMENT

Comparative figures have been restated in the Statement of Financial Position, and the related notes, and in the Income Statement in the prior year accounts. Details of the balance sheet and income statement adjustments and their effect on the financial statements of the prior year, are provided below:

i) An amount of £15,209K previously included in the amounts owed to group undertakings as at 31 December 2020, has been reclassified to trade creditors.

ii) VAT of £272K was previously included in both turnover and cost of sale in 2020; this has now been netted off.

These adjustments did not affect the retained earnings shown in the prior year financial statements.

10. TANGIBLE FIXED ASSETS
Computer
equipment
£   
COST
At 1 January 2021
and 31 December 2021 1,090
DEPRECIATION
At 1 January 2021 80
Charge for year 218
At 31 December 2021 298
NET BOOK VALUE
At 31 December 2021 792
At 31 December 2020 1,010

11. DEBTORS
31.12.21 31.12.20
as restated
£    £   
Amounts falling due within one year:
Trade debtors 28,513,558 37,119,829
Amounts owed by group undertakings 475 179
Other debtors 8,752,862 8,744,576
Payment on account 638,475 3,336,289
VAT 3,918,107 17,450
Prepayments and accrued income 41,987,153 1,125,997
83,810,630 50,344,320

Amounts falling due after more than one year:
Office rental deposit 41,500 41,500

Aggregate amounts 83,852,130 50,385,820

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

11. DEBTORS - continued

Trade Debtors31.12.2131.12.20
££
Bishops Waltham PV2 Limited2,446,588.80-
Butyric Holdings Limited--
Ingham Renewables Limited--
WEL Solar 24 Limited835,596.00-
WEL Solar 25 Limited675,475.20-
WEL Solar 26 Limited674,017.20-
WEL Solar 27 Limited--
WSE West Holcombe Limited699,548.40-
Total5,331,225.60-



Accrued Income31.12.2131.12.20
££
Bishops Waltham PV2 Limited1,812,319.40-
Butyric Holdings Limited3,985,482.48-
Ingham Renewables Limited8,384,234.59-
WEL Solar 24 Limited4,480,267.12-
WEL Solar 25 Limited1,943,029.58-
WEL Solar 26 Limited7,699,112.47-
WEL Solar 27 Limited11,440,207.68-
WSE West Holcombe Limited2,108,487.34-
Total41,763,140.66-

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

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
as restated
£    £   
Other loans (see note 13) 29,210,758 28,387,416
Trade creditors 41,314,514 15,262,125
Amounts owed to group undertakings 5,477,865 2,434,149
Tax 436,016 393,727
Social security and other taxes 32 32
Accruals and deferred income 586,589 33,000
77,025,774 46,510,449

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Trade Creditors31.12.2131.12.20
££
Shanghai Electric Hongkong Int'l Engineering Company Ltd37,386,201.5010,998,900.00
Shanghai Electric Group Co. Ltd3,789,977.344,060,982.19
Total41,176,178.8415,059,882.19

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

13. LOANS

An analysis of the maturity of loans is given below:

31.12.21 31.12.20
as restated
£    £   
Amounts falling due within one year or on demand:
Other loans 29,210,758 28,387,416

Loans from group undertakings are unsecured and repayable on demand. Interest is charged at 3% per annam. Interest of £513,977 (2020: £546,548) were accrued on the principal amount of £ 28,150,233 during the year. (see note 7).

14. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 31.12.21 31.12.20
value: as restated
£    £   
5,000,000 ordinary share 1 5,000,000 5,000,000

15. 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.

Shanghai Electric UK Company Limited (Registered number: 11940234)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

16. ULTIMATE CONTROLLING PARTY

The immediate parent company is Shanghai Electric Hongkong International Engineering Company Limited, a company registered in Hong Kong.

The smallest and largest undertaking for which the company is a member and for which group financial statements are prepared is the company's intermediate parent company Shanghai Electric Group Company Limited, a company registered in the P.R. China and listed on the Hong Kong Stock Exchange. Copies of the consolidated financial statements can be obtained from their registered office, No.110 Middle Sichuan Road, Shanghai, P.R. China.

The ultimate controlling party of the company is the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government, a government organisation in the P.R. China.