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Registered number: 05058286









Chint Europe (UK) Limited









Annual Report and Financial Statements

For the year ended 30 June 2024

 
Chint Europe (UK) Limited
 
 
Company Information


Director
Haibin Zheng 




Company secretary
Yuk Chan



Registered number
05058286



Registered office
Units 9 & 11 Spark Business Park
Hamilton Road

Stockport

Greater Manchester

SK1 2AE




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

SK1 3GG





 
Chint Europe (UK) Limited
 

Contents



Page
Strategic report
 
1
Director's report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 24


 
Chint Europe (UK) Limited
 
 
Strategic Report
For the year ended 30 June 2024

Introduction
 
The director presents his strategic report for the year ended 30 June 2024.

Business review
 
The company saw a decrease of 60% in sales, due to customers scaling back their own purchases in line with demand. Consequently, operating profit for the year decreased £3.3m to a profit of £0.3m.
Distribution costs have decreased in line with the fall in sales whilst administration expenses have remained relatively flat.
The company remains in a strong position with net assets of £7,124,349 (2023: £6,853,648) as at 30 June 2024. Stocks are in a healthy position £4,245,405 (2023: £4,925,161) as at the balance sheet date to support future growth in revenue.

Principal risks and uncertainties
 
The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the company's operations.
In respect of bank balances, the liquidity risk is managed by the continuity of funding. All of the company's cash balances are held in such a way that achieves a competitive rate of interest but with no risk to capital loss.
Trade debtors are managed in respect of credit offered to customers and monitoring of amounts outstanding. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due. The director has considered the outlook for the UK economy and the impact of high inflation and interest rates when budgeting and considering impacts on trading in the next twelve months.

Financial key performance indicators
 
The key performance indicators in the company are turnover and profitability. Along with debtor days and the stock turnover, these indicators are used to help the directors monitor the performance of the business. The turnover of the company decreased from £15.4m in 2023 to £6.1m in 2024. The movements seen have been explained in the Business Review above.
       
2024  2023
Turnover      £6.1m  £15.4m
Debtor Days      51.0  14.7
Stock turnover     1.0  2.1


This report was approved by the board and signed on its behalf.



Haibin Zheng
Director

Date: 10 February 2025

Page 1

 
Chint Europe (UK) Limited
 
 
Director's Report
For the year ended 30 June 2024

The director presents his report and the financial statements for the year ended 30 June 2024.

Director's responsibilities statement

The director is responsible for preparing the strategic report, the director's report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Results and dividends

The profit for the year, after taxation, amounted to £270,701 (2023 -£2,906,315).

Director

The director who served during the year was:

Haibin Zheng 

Future developments

The director continues to work closely with the Chinese supplier to source suitable products for the UK market. 

Matters covered in the Strategic Report

Disclosure of Principal risks and uncertainties can be found within the Strategic report.

Disclosure of information to auditors

The director at the time when this director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
Chint Europe (UK) Limited
 
 
Director's Report (continued)
For the year ended 30 June 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



Haibin Zheng
Director

Date: 10 February 2025

Page 3

 
Chint Europe (UK) Limited
 
 
Independent Auditors' Report to the Members of Chint Europe (UK) Limited
 

Opinion


We have audited the financial statements of Chint Europe (UK) Limited (the 'Company') for the year ended 30 June 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 30 June 2024 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Page 4

 
Chint Europe (UK) Limited
 
 
Independent Auditors' Report to the Members of Chint Europe (UK) Limited (continued)

Opinion 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 strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.


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 strategic report or the director's report.


We have nothing to report in respect of the following matters in relation to which 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.


Responsibilities of directors
 

As explained more fully in the director's responsibilities statement set out on page 2, 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 is 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 have no realistic alternative but to do so.


Page 5

 
Chint Europe (UK) Limited
 
 
Independent Auditors' Report to the Members of Chint Europe (UK) Limited (continued)

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 an auditors' report 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
Supporting documentation relating to the Company's policies and procedures for:
Identifying, evaluating, and complying with laws and regulations
Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Antibribery and Corruption.

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

Page 6

 
Chint Europe (UK) Limited
 
 
Independent Auditors' Report to the Members of Chint Europe (UK) Limited (continued)

We have also considered the risk of fraud through management override of controls by:

Testing the appropriateness of journal entries and other adjustments.  We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error. 
Challenging assumptions made by management in their significant accounting estimates, and 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.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 auditors' report.


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 2006Our 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 an auditors' report 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.



Anthony Woodings (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG

10 February 2025
Page 7

 
Chint Europe (UK) Limited
 
 
Statement of Comprehensive Income
For the year ended 30 June 2024

2024
2023
Note
£
£

  

Turnover
 4 
6,126,471
15,432,529

Cost of sales
  
(4,423,720)
(10,106,525)

Gross profit
  
1,702,751
5,326,004

Distribution costs
  
(130,882)
(321,878)

Administrative expenses
  
(1,309,514)
(1,391,507)

Operating profit
 5 
262,355
3,612,619

Interest receivable and similar income
 9 
123,482
58,524

Interest payable and similar expenses
 10 
(9,169)
-

Profit before tax
  
376,668
3,671,143

Tax on profit
 11 
(105,967)
(764,828)

Profit for the financial year
  
270,701
2,906,315

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
Chint Europe (UK) Limited
Registered number:05058286

Balance Sheet
As at 30 June 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
131,994
129,090

Current assets
  

Stocks
 13 
4,245,405
4,925,161

Debtors: amounts falling due after more than one year
 14 
1,700,000
-

Debtors: amounts falling due within one year
 14 
1,298,287
1,224,578

Cash at bank and in hand
 15 
1,049,873
3,641,065

  
8,293,565
9,790,804

Creditors: amounts falling due within one year
 16 
(1,277,322)
(3,036,167)

Net current assets
  
 
 
7,016,243
 
 
6,754,637

Total assets less current liabilities
  
7,148,237
6,883,727

Provisions for liabilities
  

Deferred tax
 17 
(23,888)
(30,079)

  
 
 
(23,888)
 
 
(30,079)

Net assets
  
7,124,349
6,853,648


Capital and reserves
  

Called up share capital 
 18 
1,000
1,000

Profit and loss account
 19 
7,123,349
6,852,648

  
7,124,349
6,853,648


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Haibin Zheng
Director

Date: 10 February 2025

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
Chint Europe (UK) Limited
 

Statement of Changes in Equity
For the year ended 30 June 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
1,000
3,946,333
3,947,333


Comprehensive income for the year

Profit for the year
-
2,906,315
2,906,315
Total comprehensive income for the year
-
2,906,315
2,906,315



At 1 July 2023
1,000
6,852,648
6,853,648


Comprehensive income for the year

Profit for the year
-
270,701
270,701
Total comprehensive income for the year
-
270,701
270,701


At 30 June 2024
1,000
7,123,349
7,124,349


The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
Chint Europe (UK) Limited
 

Statement of Cash Flows
For the year ended 30 June 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
270,701
2,906,315

Depreciation of tangible assets
26,267
22,257

Loss on disposal of tangible assets
4,046
6,255

Interest paid
9,169
-

Interest received
(123,482)
(58,524)

Taxation charge
105,967
764,828

Decrease/(increase) in stocks
679,756
(1,778,761)

(Increase)/decrease in debtors
(1,773,709)
2,943,565

(Decrease) in creditors
(1,412,983)
(1,987,979)

Corporation tax (paid)
(458,020)
(709,029)

Net cash (used)/generated from operating activities

(2,672,288)
2,108,927

Cash flows from investing activities

Purchase of tangible fixed assets
(40,467)
(18,477)

Sale of tangible fixed assets
7,250
-

Interest received
123,482
58,524

Net cash from investing activities

90,265
40,047

Cash flows from financing activities

Interest paid
(9,169)
-

Net cash used in financing activities
(9,169)
-

Net (decrease)/increase in cash and cash equivalents
(2,591,192)
2,148,974

Cash and cash equivalents at beginning of year
3,641,065
1,492,091

Cash and cash equivalents at the end of year
1,049,873
3,641,065


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,049,873
3,641,065


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
Chint Europe (UK) Limited
 

Analysis of Net Debt
For the year ended 30 June 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

3,641,065

(2,591,192)

1,049,873

Debt due within 1 year

(665)

(13,511)

(14,176)


3,640,400
(2,604,703)
1,035,697

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

1.


General information

Chint Europe (UK) Limited is a private company limited by shares and is incorporated in the United Kingdom, company number 05058286. The address of the registered office is Units 9 & 11 Spark Business Park, Hamilton Road, Stockport, Greater Manchester, SK1 2AE.
The principal activity of the company during the year continued to be that of wholesale of electrical parts and equipment.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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 following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.3

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 or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

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 is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
15%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
15%
reducing balance

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 and are recognised in profit or loss.

Page 15

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Financial instruments

The Company only enters into basic financial instrument 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 ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the
Page 16

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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 the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no estimates considered to have a significant effect on the amounts recognised in the financial statements.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(578)
391

Other operating lease rentals
225,540
152,860

Page 17

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Audit and related services
11,200
8,900


Non-audit services
6,900
5,400

7.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
625,069
688,052

Social security costs
68,134
78,829

Cost of defined contribution scheme
17,888
18,495

711,091
785,376


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
16
18


8.


Director's remuneration

2024
2023
£
£

Director's emoluments
71,998
53,334

Company contributions to defined contribution pension schemes
1,321
1,215

73,319
54,549


During the year retirement benefits were accruing to 1 director (2023 -NIL) in respect of defined contribution pension schemes.

Page 18

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

9.


Interest receivable

2024
2023
£
£


Other interest receivable
123,482
58,524


10.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
9,169
-


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
112,158
768,074


Total current tax
112,158
768,074

Deferred tax


Origination and reversal of timing differences
(6,191)
(3,246)

Total deferred tax
(6,191)
(3,246)


Taxation on profit on ordinary activities
105,967
764,828
Page 19

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -lower than) the standard rate of corporation tax in the UK of 25% (2023 -25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
376,668
3,671,143


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
94,167
917,786

Effects of:


Unrecognised deferred tax in relation to prior periods
(2,299)
-

Change in CT rates
-
(168,758)

Depreciation on ineligible assets
345
-

Super-deduction pool adjustment
-
(169)

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
13,754
15,969

Total tax charge for the year
105,967
764,828


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost 


At 1 July 2023
91,577
20,149
275,624
387,350


Additions
4,257
27,318
8,892
40,467


Disposals
(38,114)
(20,149)
(5,572)
(63,835)



At 30 June 2024

57,720
27,318
278,944
363,982



Depreciation


At 1 July 2023
53,221
11,751
193,288
258,260


Charge for the year on owned assets
5,753
6,830
13,684
26,267


Disposals
(35,642)
(11,751)
(5,146)
(52,539)



At 30 June 2024

23,332
6,830
201,826
231,988



Net book value



At 30 June 2024
34,388
20,488
77,118
131,994



At 30 June 2023
38,356
8,398
82,336
129,090


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
4,245,405
4,925,161



14.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
1,700,000
-

1,700,000
-


2024
2023
£
£

Due within one year
Page 21

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

14.Debtors (continued)


Trade debtors
857,791
623,163

Other debtors
-
134,494

Prepayments and accrued income
440,496
466,921

1,298,287
1,224,578



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,049,873
3,641,065



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,018,345
2,237,023

Corporation tax
94,712
440,574

Other taxation and social security
91,902
43,746

Other creditors
20,043
65,270

Accruals and deferred income
52,320
249,554

1,277,322
3,036,167



17.


Deferred taxation




2024
2023


£

£






At beginning of year
(30,079)
(33,325)


Charged to profit or loss
6,191
3,246



At end of year
(23,888)
(30,079)

Page 22

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024
 
17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(24,625)
(31,079)

Other timing differences
737
1,000

(23,888)
(30,079)

Page 23

 
Chint Europe (UK) Limited
 
 
Notes to the Financial Statements
For the year ended 30 June 2024

18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 -1,000) Ordinary shares of £1.00 each
1,000
1,000



19.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately to those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £17,888 (2023: £18,495). Contributions totalling £2,947 (2023: £3,998) were payable to the fund at the balance sheet date and are included in creditors.


21.


Commitments under operating leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
271,461
218,661

Later than 1 year and not later than 5 years
1,075,200
864,000

Later than 5 years
246,400
414,000

1,593,061
1,496,661


22.


Related party transactions

During the year, the company had revenue transactions with a company with a common director totalling £536,254 (2023: £435,649); expenses totalling £1,639,045 (2023: £3,608,817) and has lent the company £1,700,000. At the year end, the total debtor balance with this party was £47,533 (2023: £13,079), the total creditor balance was £3,000 (2023: £232,000) and there is an outstanding loan amount of £1,700,000 which is disclosed in Note 14.


23.


Controlling party

The ultimate controlling party is H Zheng.

 
Page 24