ACCOUNTS - Final Accounts preparation

Company Registration Number 13062774
(England & Wales)

	CG UK HOLDINGS LIMITED

	FINANCIAL STATEMENTS

	31 DECEMBER 2022

CG UK HOLDINGS LIMITED

REGISTERED NUMBER: 13062774

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Intangible assets	4		26,436		38,831
Current assets
Stocks	5	2,198,909		330,192
Debtors: amounts falling due within one year	6	586,789		83,350
Cash at bank and in hand	7	103,491		10,931
		2,889,189		424,473
Creditors: amounts falling due within one year	8	(3,281,147)		(592,871)
Net current liabilities			(391,958)		(168,398)
Total assets less current liabilities			(365,522)		(129,567)

Net liabilities			(365,522)		(129,567)

Capital and reserves
Called up share capital	9	-	-
Profit and loss account		(365,522)	(129,567)
		(365,522)	(129,567)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

A Zambelli Almeida

Director

Date: 29 September 2023

The notes on pages 2 to 8 form part of these financial statements.

Page 1

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1.	General information

CG UK Holdings Limited is a private company limited by shares, incorporated in England and Wales, registered number 13062774. The registered office and principal place of business is Fieldfisher Riverbank House, 2 Swan Lane, London, United Kingdom, EC4R 3TT.
The principal activity of the Company is the sale of car detailing products and accessories within the motor vehicle industry.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise
specified within these accounting policies and in accordance with Section 1A of Financial Reporting
Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and
the Companies Act 2006.
The functioning currency of the Company is Pounds Sterling as this is the currency of the primary economic environment in which the Company operates.
The comparatives presented in these financial statements are for the period from incorporation on 4 December 2020 to 31 December 2021.
The following principal accounting policies have been applied:

2.2

Going concern

These financial statements have been prepared on a going concern basis. The directors have considered the financial position of the company for a period of at least twelve months from the date of signing these financial statements. The company remains in an early, growth stage. As such it continues to rely on its parent and the wider group of which it is a part to fund its operations. A willingness to continue to offer that funding and support has been indicated, and the directors believe that this will be sufficient to enable the company to continue its operations for a period of at least 12 months from the date of signing these accounts.
Accordingly the directors have a reasonable expectation that the company will continue in operational existence and thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 2

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is recognised on dispatch from the warehouse.

Page 3

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following bases:

Computer software

25%

straight line

2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

Purchased stock is recognised at the point at which the risks and rewards of ownership transfer to the company. This is generally at the point of dispatch from the supplier.

2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 4

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Employees

The average monthly number of employees, including directors, during the year was 2 (2021 - 2).

Page 5

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

4.	Intangible assets

		Website
		£
	Cost
	At 1 January 2022	44,372
	At 31 December 2022	44,372
	Amortisation
	At 1 January 2022	5,541
	Charge for the year on owned assets	12,395
	At 31 December 2022	17,936
	Net book value
	At 31 December 2022	26,436
	At 31 December 2021	38,831

The intangible asset consists of the capitalised costs of developing the company's website.

5.	Stocks
		2022	2021
		£	£

	Finished goods for resale	2,198,909	330,192

Debtors

					2022	2021
					£	£


Trade debtors	580,180	41,221
Other debtors	-	42,129
Deferred taxation	6,609	-
	586,789	83,350

Page 6

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

7.	Cash and cash equivalents
		2022	2021
		£	£

	Cash at bank and in hand	103,491	10,931

8.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	53,543	15,000
Amounts owed to group undertakings	3,174,584	558,521
Other taxation and social security	25,022	-
Accruals and deferred income	27,998	19,350
	3,281,147	592,871

Page 7

CG UK HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

9.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

1 (2021 - 1) Ordinary share of £0.01	-	-

10.	Related party transactions
	The Company has taken advantage of the exemption in Section 33 'Related Party Disclosure' from disclosing transactions with other members of the group, as permitted by FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

11.	Controlling party

The immediate and ultimate parent company is CG International Group Inc, a company incorporated in Delaware, USA. CG International Group Inc is the parent of the smallest and largest group for which consolidated financial statements are prepared.
There is no ultimate controlling party.

12.	Auditor's information

The auditor's report on the financial statements for the year ended 31 December 2022 was unqualified.

The audit report was signed on 29 September 2023 by Joanna Gray (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.

Page 8