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REGISTERED NUMBER: 10568015 (England and Wales)















Financial Statements for the Year Ended 30 November 2023

for

Lingyun Facade UK Ltd

Lingyun Facade UK Ltd (Registered number: 10568015)






Contents of the Financial Statements
for the Year Ended 30 November 2023




Page

Balance Sheet 1

Notes to the Financial Statements 2


Lingyun Facade UK Ltd (Registered number: 10568015)

Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 4,066 7,825

CURRENT ASSETS
Debtors 5 1,232,736 1,332,486
Cash at bank and in hand 74,665 1,572,121
1,307,401 2,904,607
CREDITORS
Amounts falling due within one year 6 3,044,943 3,972,914
NET CURRENT LIABILITIES (1,737,542 ) (1,068,307 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,733,476

)

(1,060,482

)

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings (1,733,576 ) (1,060,582 )
SHAREHOLDERS' FUNDS (1,733,476 ) (1,060,482 )

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2024 and were signed on its behalf by:





Mr W T F Lee - Director


Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

Lingyun Facade UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 10568015

Registered office: 22 - 24 Victoria Parade
London
SE10 9FR

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern
As of 30 November 2023, the company reported a net current liability of £1,737,542 (2022: £1,068,307). In March 2024, the company has secured a new contract. Therefore, the financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The validity of this assumption depends on the company being able to trade profitably in the future and the continued support of its parent company. The financial statements do not include any adjustments that would result if the company continued to make losses, and such support was withdrawn. If the company was unable to continue to trade, adjustments would have to be made to reduce the value of assets to their recoverable amounts, provide for further liabilities that may arise and to reclassify fixed assets and long-term liabilities as current assets and liabilities. The parent company has expressed its willingness to continue supporting the company for at least 12 months from approval of the financial statements and hence it is appropriate for the financial statements to be prepared 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.

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from a contract is recognised in the period of services provided in accordance with the stages of completion of contract when the amount of revenue and costs can be measured reliably.

The customers made payments based on progress billing certified by external professional. If the services rendered by the company exceeds the payment, a contract asset (accrued income) is recognised. If the payments exceed the services rendered, a contract liability (deferred income) is recognised.

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Computer equipment - 25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.


Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

Leases
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.

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 debtors 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. Financial assets classified as receivable within one year are not amortised.

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.

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

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.

Basic financial liabilities
Basic financial liabilities, including trade creditors and loan from parent company 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Estimates of contract revenue and contract costs

On fixed price contract, the percentage of completion is determined by management best estimates at each reporting date taking into account of any events change. The measurement may be affected by a variety of uncertainties that depend on the outcome of future events. As a result, the amount of revenue and costs recognised in the period might increase or decrease.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2022 - 13 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 December 2022 2,850 2,535 17,377 22,762
Disposals (2,850 ) (2,169 ) - (5,019 )
At 30 November 2023 - 366 17,377 17,743
DEPRECIATION
At 1 December 2022 1,361 1,466 12,110 14,937
Charge for year 372 267 1,317 1,956
Eliminated on disposal (1,733 ) (1,483 ) - (3,216 )
At 30 November 2023 - 250 13,427 13,677
NET BOOK VALUE
At 30 November 2023 - 116 3,950 4,066
At 30 November 2022 1,489 1,069 5,267 7,825

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

5. DEBTORS
30.11.23 30.11.22
£    £   
Amounts falling due within one year:
Amounts owed by group undertakings 909 909
Amounts recoverable on contract - 81,539
Other debtors 1,231,827 161,844
1,232,736 244,292

Amounts falling due after more than one year:
Other debtors - 1,088,194

Aggregate amounts 1,232,736 1,332,486

Included in other debtors an amount of £1,097,682 (2022: £1,088,194 due after more than one year) relating to retention money held by the customer.

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Trade creditors 47,933 41,782
Amounts owed to group undertakings 2,701,297 3,440,260
Taxation and social security 26,956 49,791
Other creditors 268,757 441,081
3,044,943 3,972,914

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

The Auditors' Report was unqualified.

Goh Yong Chong (Senior Statutory Auditor)
for and on behalf of Silver Levene (UK) Limited

8. CONTINGENT LIABILITIES

The company is currently dealing with a claim on rectification work on a completed project. The management is investigating the claim to ascertain whether the company is responsible in this matter. As the outcome is uncertain, no provision has been recognised in the financial statements.

Lingyun Facade UK Ltd (Registered number: 10568015)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

9. OPERATING LEASE COMMITMENTS
30.11.23 30.11.22
£    £   
Contracted but not provided for in the
financial statements 135,913 279,167

Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as above.