REGISTERED NUMBER: |
Report of the Director and |
Financial Statements for the Year Ended 31 December 2022 |
for |
GROWATT NEW ENERGY TECHNOLOGY LIMITED |
REGISTERED NUMBER: |
Report of the Director and |
Financial Statements for the Year Ended 31 December 2022 |
for |
GROWATT NEW ENERGY TECHNOLOGY LIMITED |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Contents of the Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Report of the Director | 2 |
Statement of Director's Responsibilities | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
GROWATT NEW ENERGY TECHNOLOGY LIMITED |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
154 BISHOPSGATE |
LONDON |
EC2M 4LN |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Report of the Director |
for the Year Ended 31 December 2022 |
The director presents his report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the supply of parts to solar panel manufacturers. |
DIRECTOR |
RESULT AND DIVIDENDS |
The profit for the year, amounted to £6,308,444 (2021-£1,331,022). |
No dividend has been paid or proposed in the current or previous financial year. |
GOING CONCERN |
The financial statements are prepared on a going concern basis. Further information is provided in Note 2 of these financial statements. |
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 |
MAH, Chartered Accountants are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
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: |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Statement of Director's Responsibilities |
for the Year Ended 31 December 2022 |
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; |
-state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
Report of the Independent Auditors to the Members of |
GROWATT NEW ENERGY TECHNOLOGY LIMITED |
Opinion |
We have audited the financial statements of GROWATT NEW ENERGY TECHNOLOGY LIMITED (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 2022 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Report of the Director, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Report of the Director has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
GROWATT NEW ENERGY TECHNOLOGY 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 Report of the Director. |
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. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are United Kingdom Generally Accepted Accounting Practice, the UK Companies Act 2006, and tax legislation (governed by HM Revenue and Customs). |
- We understood how the Company is complying with those frameworks by making enquiries of senior management. We also reviewed any significant correspondence between the Company and regulatory bodies, reviewed any minutes of the Board, and gained an understanding of the Company's approach to governance, demonstrated by the Board's review of the Company's risk management framework and internal control processes. |
- We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by considering the controls that the Company has established to address risks identified by the Company, or that otherwise seek to prevent, deter or detect fraud. |
- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved inquiries of senior management and review of legal and professional fees. |
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 |
GROWATT NEW ENERGY TECHNOLOGY 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. |
for and on behalf of |
154 BISHOPSGATE |
LONDON |
EC2M 4LN |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the director and authorised for issue on |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 | 1 | 5,568,828 | 5,568,829 |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Warranty Provision |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
544,645 |
Cash and cash equivalents at end of year | 2 | 5,909,156 | 1,084,859 |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
£ | £ |
Profit before taxation |
Depreciation charges |
7,857,334 | 1,331,143 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 5,909,156 | 1,084,859 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 1,084,859 | 544,645 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 1,084,859 | 4,824,297 | 5,909,156 |
1,084,859 | 5,909,156 |
Total | 1,084,859 | 4,824,297 | 5,909,156 |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
GROWATT NEW ENERGY TECHNOLOGY LIMITED is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Growatt New Energy Technology Limited is a private limited Company incorporated in England & Wales under the Companies Act. The address of the registered office is given on the contents page. The company's principal activity is the supply of parts to solar panel manufacturers. |
Basis of preparation of financial statements |
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of lreland and the Companies Act 2006. |
The accounts have been prepared using certain of the reduced disclosure exemptions permitted by FRS.102. The accounts therefore do not include: |
-the requirement's of Section 4 Statement of Financial Position paragraph 4.12 (a) (iv)', |
-the requirements of Section 7 Statement of Cash Flows; |
-the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); |
-the requirements of Section 11 Financial statements paragraphs 11.41 (b), 11.41 (c), 11.41 (e),11.41 (f), 11.42, 11 .44, 11.45, 11.47 , 11.48(aXiii), 11.a8(a)(iv), 1 1.4B(b) and 11.48(c); |
- the requirements of Section 33 Related Party Disclosures paragraph 33.7. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3). |
The accounts have been prepared in the company's functional currency, pound sterling. |
Going concern |
As at 31 December 2022, the Company had net current assets of £6,756,228 (2021-net current liablities of £575,102) and net assets of £5,568,829 (2021-net liablities of £739,615). |
Shenzhen Growatt New Energy Co., Ltd, the intermediate parent company of Growatt New Energy Technology Limited, have confirmed that they will not seek substantive repayment of the amount due from them or other group companies for at least 12 months following the approval of these financial statement. |
In addition to Hongkong Growatt New Energy Co., Ltd and Shenzhen Growatt New Energy Co., Ltd, the immediate parent and intermediate parent company of Growatt New Energy Technology Limited have confirmed that they will continue to provide sufficient financial support to the company, to ensure that it is able to fulfil its trading objectives and settle liabilities as they fall due for payment for a period of at least 12 months from the date of signing these accounts. Accordingly, the accounts have been prepared on a going concern basis. |
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, excluding discounts,rebates, value added tax and other sale taxes. |
Revenue from the sale of goods is recognised when the significant risk and rewards of ownership of the goods have passed to the buyer. |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that' is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their useful economic lives, using the straight line method. |
The estimated useful lives range as follows: Computer equipment - 33% per annum |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount are recognized within "administrative expenses" in the Income Statement. |
At each reporting date the company assesses whether there is any indication of impairment. lf such ndication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognized where the carrying amount exceeds the recoverable amount. |
Stock |
Stocks are valued at the lower of cost and net realizable value. Cost is based on the weighted average cost of purchase on a first in, first out basis. Net realizable value is based on estimated selling price less additional costs to completion and disposal. |
At each reporting date stocks are assessed for impairment. lf inventory is impaired, the carrying value is reduced to its recoverable amount. |
Financial instruments |
The company only. enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other account receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets |
Financial assets comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors; these are initially recorded at cost on the date they originate and are subsequently recorded at amortized cost under the effective interest method. The company considers evidence of impairment for all individual trade and other debtors, and any subsequent impairment is recognized in the Income Statement. |
Financial liabilities |
Financial liabilities comprise trade creditors, other creditors and amounts due to group undertakings; these are initially recorded at cost on the date they originate, and are subsequently carried at amortized cost unclear the effective interest method. |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date. |
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base. |
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. |
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. |
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. |
Cash and cash equivalent |
Cash is represented by cash in hand and deposit with financial institutions repayable without penalty on notice of not more than 24 hours. |
Leases |
Rentals-paid under operating leases are charged to the Income Statement on a straight-line basis over the term of the lease. |
Foreign currency |
Foreign currency transactions are translated into sterling al the rates ruling when they occurred. |
Foreign currency monetary assets and liabilities are translated at the rates ruling at the Balance Sheet date. Any differences are taken to the Income Statement. |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
ln preparing these financial statements, the director has had to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, income and expenses. |
The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying value's of. assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are: |
Stock provisions |
The company has recognized provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. ln the case of the provision for the impairment of stock, this covers obsolescence through technological or customer specific reasons. This provision is based on the assessment of stock value and ageing, quantities on hand, usage, changes in the market, technical developments and warranty periods. The value of stock in note 10 is net of the provision for the impairment of stock. |
Bad debt provisions |
The company has recognized provisions for bad debts. This is based on an assessment of ageing and due date of receivables and other risk indicators. The judgement of management is then applied to provide for debts which are no longer considered recoverable. |
Warranty provisions |
ln the case of provisions for the future cost of meeting obligations under product warranties, this covers provisions for the material component element of the future anticipate warranty work. This is based upon a percentage of turnover adjusting for warranty periods and other factors. |
4. | TURNOVER |
All turnover arose within the United Kingdom and relates to the principal activity of the company. |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 136,318 | 42,868 |
Social security costs | 10,289 | - |
Pension costs | 9,627 | 2,282 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Staff | 4 | 2 |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration | - | - |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
6. | OPERATING PROFIT |
OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.22 | 31.12.21 |
£ | £ |
Depreciation - owned assets | 242 | 121 |
Foreign exchange differences | (20,496 | ) | 960 |
7. | AUDITORS' REMUNERATION |
31.12.22 | 31.12.21 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
11,100 |
5,750 |
Total audit fees | 11,100 | 5,750 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
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: |
31.12.22 | 31.12.21 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Tax losses not recognised | (138,862 | ) | (252,917 | ) |
Total tax charge | 1,548,648 | - |
Factors that may affect future tax charges |
There are significant tax losses that have not been recognized as a deferred tax asset due to the uncertainty of future taxable profits. |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
9. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
10. | STOCKS |
31.12.22 | 31.12.21 |
£ | £ |
Finished goods | 13,442,404 | 4,151,066 |
There is no material difference between the replacement cost of stocks and the amounts stated above. |
The costs of inventories expenses in the period and included within cost of sales was £28,744,195 (2021-£5,817,220).There are impairment provisions in relation to inventories recognised of -£20,391 (2021-£251,730). |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade debtors |
Other debtors |
Amounts owed from group |
undertakings | 490,165 | 2,299,353 |
Prepayments and accrued income |
All amounts shown under debtors fall due for payment within one.year. |
The impairment loss recognized in respect of bad and doubtful debts was £2,689 (2021-£Nil) |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 2,415,354 | 77,852 |
Other creditors |
Amounts owed to group |
undertakings | 13,390,390 | 8,968,653 |
Accrued expenses |
The amounts owed to group undertakings are free from interest and have no fixed date of repayment. |
There is no expectation that the amounts due to group companies will be paid within the 12 months from the date of approval of these financial statements. |
13. | PROVISIONS FOR LIABILITIES |
31.12.22 | 31.12.21 |
£ | £ |
Other provisions |
Warranty Provision | 1,188,254 | 164,754 |
Warranty |
Provision |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary Share Capital | £1 | 1 | 1 |
GROWATT NEW ENERGY TECHNOLOGY LIMITED (Registered number: 08660706) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 | ( |
) |
Profit for the year |
At 31 December 2022 |
Share capital |
This reserve represents the nominal value of allotted and fully paid up ordinary share capital. |
Profit and loss account |
This reserve represents cumulative profits or losses net of dividends paid and other adjustments. |
16. | ULTIMATE PARENT COMPANY |
The company is a subsidiary of Hong Kong Growatt New Energy Co Limited. The ultimate parent company is Growatt Technology Co., Ltd, a company incorporated in Cayman Islands. |
The largest and smallest group into which the results of the company are consolidated is that headed by the ultimate parent undertaking, Growatt Technology Co., Ltd. The consolidated financial statements of the group are available from Growatt Technology Co., Ltd, PO Box 309, Ugland House, Grand Cayman, KYI-1104, Cayman Islands. |
The company had a number of transactions and balances with members of the same group, as follows: |
During the year, the intercompany sales aggregate value was Nil (2021: £231,808) and the intercompany purchases aggregate value was £37,948,925 (2021: £7,242,703). |
As at 31 December 2022, the intercompany debtors was £490,165 (2021: £2,299,353). |
As at 31 December 2022, the intercompany creditor was £13,390,389 (2021: £8,968,653). |