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REGISTERED NUMBER: 12612994 (England and Wales)


















FINANCIAL STATEMENTS

FOR THE PERIOD

1 JANUARY 2022 TO 30 DECEMBER 2022

FOR

FLAX PLACE LEEDS LIMITED

FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


FLAX PLACE LEEDS LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022







DIRECTORS: Y Chen
W Zhu





REGISTERED OFFICE: 5 Jardine House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX





REGISTERED NUMBER: 12612994 (England and Wales)





AUDITORS: Arithma LLP Statutory Auditor
Chartered Certified Accountants
5 Jardine House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX

FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

BALANCE SHEET
30 DECEMBER 2022

2022 2021
Notes £    £   
CURRENT ASSETS
Stocks 4 4,500,000 4,550,000
Debtors 5 7,303 3,135
Cash at bank 31,778 19,137
4,539,081 4,572,272
CREDITORS
Amounts falling due within one year 6 5,222,008 5,155,836
NET CURRENT LIABILITIES (682,927 ) (583,564 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(682,927

)

(583,564

)

CAPITAL AND RESERVES
Called up share capital 1 1
Retained earnings (682,928 ) (583,565 )
(682,927 ) (583,564 )

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:





W Zhu - Director


FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022


1. STATUTORY INFORMATION

Flax Place Leeds Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

GOING CONCERN

During the period, the company made a loss of £99,363 and had negative shareholders' funds of £682,927 as of 31 December 2022.

Included in creditors is a balance of £5,169,376 due to group companies. £869,376 of this amount is due to the company's immediate parent company and the balance to a fellow group company.

The company has received confirmation of financial support from an intermediate parent company to enable it to continue trading for the foreseeable future being a period not less than 12 months from the date of approval of these financial statements.

Based on the above, the directors believe it is appropriate to prepare the financial statements on a going concern basis.

RELATED PARTY EXEMPTION
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.

STOCKS AND WORK IN PROGRESS
The company's work in progress comprises the cost of purchase of land, associated stamp duty, professional fees relating to the acquisition and planning applications and costs to maintain the site prior to commencement of development. Costs relating to unsuccessful planning applications is released to the profit and loss account.

The work in progress is valued at the lower of cost and net realisable value.

FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022


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 in the company's statement of financial position 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.


FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022


2. ACCOUNTING POLICIES - continued
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

TAXATION
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period 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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 2 (2021 - 2 ) .

FLAX PLACE LEEDS LIMITED (REGISTERED NUMBER: 12612994)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 JANUARY 2022 TO 30 DECEMBER 2022


4. STOCKS
2022 2021
£    £   
Work-in-progress 4,500,000 4,550,000

The company's stock comprises its development land which is valued at lower of cost and net realisable value. The board acknowledges there are potential claims for loss of light which could be triggered if development proceeds. However, at the balance sheet date, the board are of the opinion the closing carrying value of £4.5 million does not need to need to be adjusted to reflect these as the company intends to sell the land. The realisable value will depend of the risk appetite of the ultimate purchaser and this could materially impact the carrying value of the stock.

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Other debtors 7,303 3,135

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade creditors 48,961 150,323
Amounts owed to group undertakings 5,169,376 4,977,404
Other creditors 3,671 28,109
5,222,008 5,155,836

7. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.


We draw your attention to note 4 of the financial statements, which describes the basis for valuation of the company's carrying value of its closing work in progress. Our opinion is not modified in respect of this matter.

Mr Upen Shah (Senior Statutory Auditor)
for and on behalf of Arithma LLP Statutory Auditor

8. POST BALANCE SHEET EVENTS

At the time of approving the financial statements, the company had agreed terms for sale of its development site, subject to contract.

9. ULTIMATE CONTROLLING PARTY

The company is a member of a group. Consolidated accounts, for the smallest group, are prepared for it's immediate holding company, CIMC MBS Hong Kong Limited. The registered address of CIMC MBS Hong Kong Limited is Unit 41, 15/F, Pacific Trade Centre, 2 Kai Hing Road, Kowloon, Hong Kong. The consolidated accounts are not available to the public.

The ultimate parent company is China International Marine Containers (Group) Co., Ltd which is incorporated in China.

During the period, there was no single person controlling the company.