Company registration number 07972336 (England and Wales)
SHIJI (UK) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
Sobell Rhodes Audit Limited
The Kinetic Centre
Theobald Street
Elstree
Borehamwood
Hertfordshire
WD6 4PJ
SHIJI (UK) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
SHIJI (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
14,258
17,813
Current assets
Stocks
186,196
130,004
Debtors
5
853,721
931,112
Cash at bank and in hand
867,596
433,152
1,907,513
1,494,268
Creditors: amounts falling due within one year
6
(4,186,464)
(3,033,565)
Net current liabilities
(2,278,951)
(1,539,297)
Net liabilities
(2,264,693)
(1,521,484)
Capital and reserves
Called up share capital
7
1,000
1,000
Share premium account
24,000
24,000
Capital contribution
118,091
118,091
Profit and loss reserves
(2,407,784)
(1,664,575)
Total equity
(2,264,693)
(1,521,484)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
N M M Singh
Director
Company Registration No. 07972336
SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Shiji (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Poultry, London, SE1 7ND.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.

 

Shiji UK Limited is a wholly owned subsidiary of Shiji (Singapore) Pte Ltd, a company incorporated in Singapore, which is turn is a wholly owned subsidiary of Beijing Shiji Information Technology Co. Ltd. a company incorporated in China. The way in which the group is organised and carries out its activities, means that the company is able to obtain financial support of its ultimate parent company, Beijing Shiji Information Technology Co. Ltd.

 

At 31 December 2023, the company had net liabilities of £2.2m of which £2.8 is represented by group indebtedness. On 2 September 2024 papers were signed to convert £2.6m of group indebtedness to a capital contribution and note 9 to these accounts provides additional information in respect of the transaction. The result of this conversion is that the company’s financial position has significantly improved.

 

For these reasons, and although at 31 December 2023 the company is reporting net losses of £743,209 (2022: £701,739), the directors consider that whilst adequate funds will continue to be available to finance the company's working capital requirements where needed for the foreseeable future, that the company has adequate resources to meet its liabilities as they fall due, within 12 months from the date of the approval of the financial statements.

 

Whilst the company no longer depends on day-to-day financial support provided by the ultimate parent company, in order to continue in operational existence, the directors acknowledge the facility to obtain such support may still be required. This funding has been agreed via a letter of support and there are no plans to discontinue any financial support to the company for at least 12 months from approval of these financial statements. Also, that repayment of any support will only be requested to the extent that such repayment does not affect the company’s ability to continue its activities for a period of at least 12 months from approval of these financial statements.

 

As a result of this review, the directors have taken appropriate measures to enable them to have a reasonable expectation that the company will have sufficient working capital for a period of at least 12 months from the date these financial statements have been approved.

 

On the basis of the above, the directors are of the opinion that there is no material uncertainty relating to going concern and it is therefore appropriate to prepare these financial statements on a going concern basis.

SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the provision of technology products and services for the hospitality sector, provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue is recognised when the significant risks and rewards of ownership have passed to the customer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from intercompany transactions is recognised at the fair value of the consideration received for intercompany services.

Most services are charged on a cost-plus basis, while implementation services are billed at a fixed daily rate across the group.

Revenue is recognised when it is probable that the economic benefits will flow to the entity, the amount of revenue can be reliably measured, and the associated costs can be reliably determined.

All transactions are presented net of VAT, and any trade discounts, settlement discounts, or volume rebates and are considered within the group when determining the fair value of the consideration.

1.4
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Office equipment
25% Straight line

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.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
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.

SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.7
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 debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

 

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

 

The company recognises revenue on the delivery of the product and the related services performed. The company invoices in full at the point the contract between the company and the customer is signed by both parties. The invoice is included in Trade Debtors. The net value of that invoice is immediately deferred and is included in the Deferred Income balance until such time as the product has been delivered and the related services have been performed and the project has completed.

 

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.10
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.14

Comparatives

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.

1.15

Capital Contribution

Capital contributions are recognised when the entity obtains control over the contributed resources. Control is achieved when Shiji (UK) Limited has the power to direct the use of the resources and obtain future economic benefits from them.

The contribution in question is a cash contribution and these are recognised at their nominal value, which is the amount of cash received.

Capital contributions are presented separately from revenue in the statement of financial position.

Cash contributions are presented within shareholders' equity, under a separate line "Capital Contributions."

Capital contributions are not treated as income and are not recognised in the income statement.

Any expenses incurred in obtaining capital contributions are recognised as expenses in the period incurred.

Capital contributions are not subject to subsequent measurement, except in cases where conditions or obligations attached to the contributions require subsequent recognition or measurement adjustments.

SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Going concern

As indicated in note 1.2 it is the directors assessment that the company continues to be a going concern.

Accordingly, the assets and liabilities have been valued on the basis that the company will continue in business.

Deferred tax

Deferred tax assets are recognised only to the extent that the directors are confident and consider it probable that sufficient future taxable profit will be available against which the deductible temporary difference or unused tax losses or credits can be recovered or utilised.

In making their assessment, the directors have based their assumptions on the forecasts to 31 December 2025 which indicate that the company will generate sufficient future taxable profits from 2025 onwards.

This involves an assessment of when those unused losses are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the losses when they do reverse. This requires assumptions regarding future profitability and is therefore inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets as well as in the amounts recognised in the Profit and loss account in the period in which the change occurs.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
22
21
SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
43,516
Additions
7,083
At 31 December 2023
50,599
Depreciation and impairment
At 1 January 2023
25,703
Depreciation charged in the year
10,638
At 31 December 2023
36,341
Carrying amount
At 31 December 2023
14,258
At 31 December 2022
17,813
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
549,470
461,973
Amounts owed by group undertakings
192,437
226,098
Other debtors
690
4,455
Prepayments
111,124
238,586
853,721
931,112
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
18,961
32,811
Amounts owed to group undertakings
2,958,182
1,935,678
Taxation and social security
106,650
105,859
Deferred income
679,976
775,071
Other creditors
227
9,404
Accruals
422,468
174,742
4,186,464
3,033,565
SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Trusha Bhanderi FCCA
Statutory Auditor:
Sobell Rhodes Audit Limited
Date of audit report:
31 October 2024
9
Operating lease commitments
Lessee

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

2023
2022
£
£
-
0
23,760
10
Events after the reporting date

On 2 September 2024, the company received a capital contribution of £2,626,000, via the intercompany debt conversion to equity, from Shiji (Singapore) Pte Ltd, its immediate parent company.

 

This contribution was made after the balance sheet date of 31 December 2023 and as such, it has not been recognised in the financial statements for the year ended 31 December 2023.

 

The capital contribution will enhance the company's equity base and improve the financial position of the company for the upcoming year. However, this is classified as a non-adjusting event and does not affect the reported financial position as at 31 December 2023.

11
Related party transactions

The company has taken advantage of the exemption contained in FRS102 section 1AC.35 from disclosing transactions and balances with other wholly owned group entities.

SHIJI (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Parent company

At the balance sheet date the immediate parent company of Shiji (UK) Limited is Shiji (Singapore) PTE Ltd, a company incorporated in Singapore.

 

At the balance sheet date, the ultimate parent company of Shiji (UK) Limited is Beijing Shiji Information Technology Co.,Ltd. a company which is incorporated in China. Its registered office address is 15F, Beijing INN, No.5 East Shui Jing Hu Tong, Chao Yang Men Nei, Dongcheng District, 100010, Beijing, China.

The financial statements for Shiji (UK) Limited form part of the consolidated accountsof its immediate and ultimate parent companies.

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