Consulting Engineers Group UK Ltd |
Strategic Report |
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Review of the Business |
Consulting Engineers Group UK Ltd ("the CEG UK"), its parent company Consulting Engineers Group Ltd India and group companies ("CEG Group”) are a leading international infrastructure engineering consulting organization that delivers design, planning, engineering, consulting and construction management solutions for Highways, Bridges, Railways, Metros, Tunnels, Airports, Buildings and water resources. They also provide services & solutions for Urban Development, Capacity Building, Environmental Engineering & Social issues and undertake construction material testing and Geotechnical Investigations. Started in 1984 and headquartered in India, CEG has spread its reach in multiple countries across Europe, Middle east and Africa. The total revenue for the year ended 31st March 2024 for CEG UK is £252,811 and the profit for the year ended 31st March 2024 is £12,220. The board considers the results for the period are in line with the estimates given that this is the first year of the business operation in UK. CEG UK has got the new contracts in South Korea and Africa which started in 2024-25. |
Key performance indicators |
The Company compiles and assesses its key financial and non-financial performance indicators (KPI's) that assist in evaluating the performance of the Company. Considered together, the KPI's provide a comprehensive view of the underlying performance of the Company. The financial KPI's include revenue growth, margins, operating expenses and profit before tax. |
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Principal risks and uncertainties |
The company provides Engineering Consultancy Services on infra projects undertaken by governments and private parties where the principal is the government. This mitigates recovery risk but increases the risk of delayed payment. |
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Credit risk |
Credit risk is the potential for loss caused by a debtor failing to meet their obligations as they become due. The limited risk for company is managed by regular monitoring and reviewing the limits of the debtors before and after the actual sales are carried out. |
Liquidity risk |
Liquidity risk is the risk that net cash flow is insufficient to meet the funding demands of the business on an ongoing basis. Net cash flow is adequate to meet the funding requirements and the company is well capitalised to meet the future funding requirements. There is no requirement for term or working capital loan. |
Future developments |
The Company forecasts increased levels of business activity in the forthcoming years. |
This report was approved by the board on 27 September 2024 and signed on its behalf. |
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Dr B N Obika |
Director |
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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 Auditor’s 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. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' 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 directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the strategic report and the directors’ report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
After consideration of the above risks we then carried out audit procedures including the following: |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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reading minutes of management meetings; |
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reviewing correspondence with H M Revenue & Customs; |
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enquiring of management and reviewing any correspondence with legal advisors concerning actual and potential litigation and claims; |
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reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in our audit procedures described above. The more removed that the laws and regulations are from financial transactions the less likely it is that we would be aware on non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
Consulting Engineers Group UK Ltd |
Statement of Cash Flows |
for the period from 13 February 2023 to 31 March 2024 |
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Notes |
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2024 |
£ |
Operating activities |
Profit for the period |
12,220 |
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Adjustments for: |
Depreciation |
759 |
Increase in debtors |
(58,228) |
Increase in creditors |
63,014 |
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17,765 |
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Cash generated by operating activities |
17,765 |
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Investing activities |
Payments to acquire tangible fixed assets |
(17,556) |
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Cash used in investing activities |
(17,556) |
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Financing activities |
Proceeds from the issue of shares |
50,000 |
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Cash generated by financing activities |
50,000 |
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Net cash generated |
Cash generated by operating activities |
17,765 |
Cash used in investing activities |
(17,556) |
Cash generated by financing activities |
50,000 |
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Net cash generated |
50,209 |
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Cash and cash equivalents at 13 February |
- |
Cash and cash equivalents at 31 March |
50,209 |
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Cash and cash equivalents comprise: |
Cash at bank |
50,209 |
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Consulting Engineers Group UK Ltd |
Notes to the Accounts |
for the period from 13 February 2023 to 31 March 2024 |
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1 |
Summary of significant accounting policies |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
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Going Concern |
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The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making the assessment. Based on these assessments the directors have concluded that there is no material uncertainty and that the company can continue to adopt the going concern basis in preparing the annual report and accounts. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Critical accounting estimates and judgements |
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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 relevant. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an on going 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. |
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3 |
Analysis of turnover |
2024 |
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£ |
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Services rendered |
252,811 |
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By geographical market: |
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UK |
9,393 |
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Rest of world |
243,418 |
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252,811 |
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4 |
Operating profit |
2024 |
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£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
759 |
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Auditors' remuneration for audit services |
4,800 |
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5 |
Directors' emoluments |
2024 |
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£ |
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Emoluments |
98,564 |
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Highest paid director: |
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Emoluments |
98,564 |
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Company contributions to defined contribution pension plans |
771 |
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99,335 |
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6 |
Staff costs |
2024 |
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£ |
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Wages and salaries |
121,942 |
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Social security costs |
9,494 |
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Other pension costs |
6,624 |
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138,060 |
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Average number of employees during the year |
Number |
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Administration |
1 |
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Marketing |
1 |
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Sales |
1 |
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3 |
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7 |
Taxation |
2024 |
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£ |
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Analysis of charge in period |
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Tax on profit on ordinary activities |
- |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2024 |
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£ |
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Profit on ordinary activities before tax |
12,220 |
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Standard rate of corporation tax in the UK |
19% |
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£ |
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Profit on ordinary activities multiplied by the standard rate of corporation tax |
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2,322 |
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Effects of: |
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Expenses not deductible for tax purposes |
144 |
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Capital allowances for period in excess of depreciation |
(2,466) |
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Current tax charge for period |
- |
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8 |
Tangible fixed assets |
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Plant and machinery |
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Fixtures and fittings |
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Total |
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At cost |
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At cost |
£ |
£ |
£ |
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Cost or valuation |
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Additions |
2,680 |
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14,876 |
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17,556 |
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At 31 March 2024 |
2,680 |
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14,876 |
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17,556 |
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Depreciation |
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Charge for the period |
73 |
|
686 |
|
759 |
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At 31 March 2024 |
73 |
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686 |
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759 |
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Carrying amount |
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At 31 March 2024 |
2,607 |
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14,190 |
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16,797 |
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9 |
Debtors |
2024 |
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£ |
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Amounts owed by group undertakings |
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39,525 |
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Other debtors |
5,734 |
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Prepayments and accrued income |
12,969 |
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58,228 |
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10 |
Creditors: amounts falling due within one year |
2024 |
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£ |
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Trade creditors |
25,306 |
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Other taxes and social security costs |
20,912 |
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Other creditors |
9,821 |
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Accruals and deferred income |
6,975 |
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63,014 |
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11 |
Share capital |
Nominal |
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2024 |
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2024 |
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value |
Number |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
£1 each |
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50,000 |
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50,000 |
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12 |
Profit and loss account |
2024 |
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£ |
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At 13 February |
- |
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Profit for the period |
12,220 |
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At 31 March |
12,220 |
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13 |
Related party transactions |
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During the year the company received income of £230,625 from the parent company, Consulting Engineers Group Ltd (India), and the balance on the debtors ledger at the year end, attributable to the parent company was £39,525. |
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14 |
Controlling party |
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The Controlling party is Consulting Engineers Group Limited, registered in India. |
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15 |
Presentation currency |
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The financial statements are presented in Sterling, and rounded up to the nearest pound. |
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16 |
Legal form of entity and country of incorporation |
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Consulting Engineers Group UK Ltd is a private company limited by shares and incorporated in England. |
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17 |
Principal place of business |
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The address of the company's principal place of business and registered office is: |
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2 Meridian Cross |
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Ocean Way |
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Ocean Village |
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Southampton |
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SO14 3TJ |