Company Registration No. 11787682 (England and Wales)
CSE CROSSCOM UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
CSE CROSSCOM UK LIMITED
COMPANY INFORMATION
Directors
Mr William Roy Rowe
Mr Boon Kheng Lim
Mr John Christopher Caldwell
Mr Eddie Foo
Secretary
Mr Neill Bailey
Company number
11787682
Registered office
No. 1, St Paul's Square
Liverpool
Merseyside
L3 9SJ
Auditor
MHA MacIntyre Hudson
6th Floor, 2 London Wall Place
London
EC2Y 5AU
CSE CROSSCOM UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
CSE CROSSCOM UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investments
4
3,065,865
1,402,902
Current assets
Debtors
6
908,119
1,233,809
Cash at bank and in hand
32,625
44,249
940,744
1,278,058
Creditors: amounts falling due within one year
7
(3,807,243)
(2,128,172)
Net current liabilities
(2,866,499)
(850,114)
Total assets less current liabilities
199,366
552,788
Creditors: amounts falling due after more than one year
8
(241,600)
(613,252)
Net liabilities
(42,234)
(60,464)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(42,235)
(60,465)
Total equity
(42,234)
(60,464)
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 27 July 2022 and are signed on its behalf by:
Mr John Christopher Caldwell
Director
Company Registration No. 11787682
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
CSE Crosscom UK Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
No. 1, St Paul's Square, Liverpool, Merseyside, L3 9SJ.
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 a
mounts
in these financial statements are
rounded to the nearest
£1
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Going concern
The company had net current liabilities of £
true
2,866
,
499
and total net liabilities of £
42
,
234
at the balance sheet date. The directors consider that it is appropriate that the financial statements should be prepared on a going concern basis, as the parent company has confirmed its willingness and ability to support the company for at least 12 months from the date of approval of the financial statements to enable the company to meet its liabilities as they fall due.
1.3
Fixed asset investments
Interests in subsidiarie
s
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.4
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.
1.5
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
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
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.
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
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts 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. A
m
ounts 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.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.7
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
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.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
4
4
4
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
3,065,865
1,402,902
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
4
Fixed asset investments
(Continued)
- 5 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
1,402,902
Additions
1,658,577
Legal Fees
4,386
At 31 December 2021
3,065,865
Carrying amount
At 31 December 2021
3,065,865
At 31 December 2020
1,402,902
5
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Chatterbox Limited
England & Wales
Radio Communications
Ordinary
100.00
Zycomm Electronics Limited
England & Wales
Radio Communications
Ordinary
100.00
Radiotek Limited
England & Wales
Radio Communications
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Chatterbox Limited
479,331
75,402
Zycomm Electronics Limited
724,267
251,211
Radiotek Limited
730,065
158,183
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
136,105
3,038
Other debtors
541,600
200,000
677,705
203,038
2021
2020
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Debtors
(Continued)
- 6 -
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
230,414
739,172
Other debtors
291,599
230,414
1,030,771
Total debtors
908,119
1,233,809
7
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
18,955
Amounts owed to group undertakings
3,505,328
1,860,016
Taxation and social security
1,316
3,460
Other creditors
300,599
245,741
3,807,243
2,128,172
Included in other creditors is £300,000 (2020 - £200,000) balance secured against an escrow bank account account included in other debtors.
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Amounts owed to group undertakings
321,652
Other creditors
241,600
291,600
241,600
613,252
Included in other creditors is £241,600 (2020 - £291,600) secured against an escrow bank account account included in other debtors.
9
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.
The senior statutory auditor was Stephen Poleykett BA (Hons) FCA and the auditor was MHA MacIntyre Hudson.
CSE CROSSCOM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
10
Events after the reporting date
New Acquisition
On 3
1
J
anuary
202
2
, CSE Crosscom UK Limited acquired 100% of the share capital of
DTS.Solutions (U.K)
L
td
for for a consideration of £2,
600,
000, excluding deferred consideration that is subject to exceeding a net asset target of £2,001,549 in the 31 January Closing Accounts.
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Interest charged by / (to)
2021
2020
£
£
Other companies in the group
(160,321)
(17,638)
Parent company
111,567
19,204
Following further loan transactions in the year, the following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Other companies in the group
458,328
528,668
Parent company
3,047,000
1,653,000
Following further loan transactions in the year, the following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Other companies in the group
366,519
742,210
12
Parent company
The company is a wholly owned subsidiary of CSE Crosscom (International) PTE. Limited, an investment holding company based in Singapore with a registered office
50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623.
The ultimate holding company is CSE Global Limited, an international technology group registered in
Singapore and listed on the Singapore Stock Exchange.