Financial Statements
Standard Commercial Tobacco Company (UK) Limited
For the year ended 31 March 2023
Registered number: 01411968
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Standard Commercial Tobacco Company (UK) Limited
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Company Information
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Joan Teresa Goulden (resigned 30 September 2023)
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Chartered Accountants & Statutory Auditors
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Standard Commercial Tobacco Company (UK) Limited
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Contents
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Directors' responsibilities statement
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Independent auditor's report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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Standard Commercial Tobacco Company (UK) Limited
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Strategic report
For the year ended 31 March 2023
The directors present their strategic report on the company for the year ended 31 March 2023.
A review of the business and future developments, including key performance indicators and the principal risks and uncertainties is set out below.
Review of activities and future trading developments
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The principal activity of the company is to act as a holding company.
The company expects to remain as a holding company in Malawi and India. The company generated no revenues during the year. The Company is in a strong financial position. There were no significant changes in the Company's principal activity during the financial year 2023 and the directors are not aware at the date of this report of any likely major changes in either the nature or level of the Company's activities in the next year.
Principal risks and uncertainties
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The directors believe that the principal risks and uncertainties facing the company are the carrying value and performance of its investments. The directors review investment balances annually for impairment. In addition, the company is exposed to credit risk on cash balances held and the directors review amounts owed by group undertakings' exposure on a regular basis.
Key performance indicators
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The directors believe the key performance indicator of the company to be the performance of its underlying investments in Malawi and India. A full report on the trading performance of the group and these entities can be found in the financial statements of Pyxus International Inc. Copies of the group financial statements are available from The Corporate Secretary, Pyxus International Inc. (formerly Alliance One International Inc), 8001 Aerial Center Parkway, PO Box 2009, Morrisville NC 27560, USA.
Directors' statement of compliance with duty to promote the success of the company
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The directors have acted in a way that they consider in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the period ended 31 December 2019. The following paragraphs summarise how the directors fulfil their duties:
The directors recognise that their employees are fundamental and core to their business and aim to be a responsible employer in their approach to pay and benefits their employees receive and through training. The health, safety and wellbeing of their colleagues are of the highest importance and ensuring these is one of their primary considerations in the way they do business.
The directors also aim to act responsibly and fairly in their engagement with suppliers, customers, regulators, bankers and insurers and are in direct contact on a regular basis. The directors respond quickly and fully to queries from regulators, bankers and insurers as required.
The directors always intend to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. The directors recognise that the maintenance of their good reputation, founded on responsible behaviour is fundamental to their continuing ability to achieve profitable growth for the benefit of all their stakeholders in the future.
Page 1
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Standard Commercial Tobacco Company (UK) Limited
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Strategic report (continued)
For the year ended 31 March 2023
This report was approved by the board and signed on its behalf.
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Simon Mark Usher
Director
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Page 2
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Standard Commercial Tobacco Company (UK) Limited
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Directors' report
For the year ended 31 March 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The principal activity of the Company is to act as a holding company for the group subsidiaries in Malawi and the United Kingdom.
The profit for the year, after taxation, amounted to $1,258,560 (2022: $352,657).
The directors do not recommend the payment of a dividend for the year (2022: $Nil).
The directors who served during the year were:
Joan Teresa Goulden (resigned 30 September 2023)
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In preparing the financial statements, the directors consider it appropriate to continue to use the going concern assumption, which assumes that the Company will have sufficient resources to enable it to meet its liabilities as they fall due.
There were no significant changes in the Company's principal activity during the year 2023 and the directors are not aware at the date of this report of any likely major changes in either the nature or level of the Company's activities in the next year. The Company is in a strong financial position. After making inquiries, the directors believe the Company has adequate financial resources to continue operating for the foreseeable future.
The directors believe that the going concern basis of preparation is appropriate for the financial statements. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director 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 auditor is aware of that information.
Streamlined energy and carbon reporting (SECR)
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As the Company uses less than 40MWh in the UK per year, the Company is considered to be a low energy user and no further disclosures in relation to emissions from energy use are required
Post balance sheet events
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There are no subsequent events affecting the Company since the year end.
Page 3
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Standard Commercial Tobacco Company (UK) Limited
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Directors' report (continued)
For the year ended 31 March 2023
The auditors, Grant Thornton, continue in office in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Simon Mark Usher
Director
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Page 4
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Standard Commercial Tobacco Company (UK) Limited
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Directors' responsibilities statement
For the year ended 31 March 2023
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
On behalf of the board:
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Simon Mark Usher
Director
Date: 9 November 2023
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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited
We have audited the financial statements of Standard Commercial Tobacco Company (UK) Limited which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the year ended 31 March 2023, and the related notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the 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, Standard Commercial Tobacco Company (UK) Limited's financial statements:
∙give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 March 2023 and of its financial performance for the year then ended; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 'Responsibilities of the auditor 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, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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
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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 the date 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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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited (continued)
Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions 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 Directors' reportand the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' reportand the Strategic Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment we have obtained in the course of the audit, we have not identified material misstatements in the Directors' 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 directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit; or
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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited (continued)
Responsibilities of management and those charged with governance for the financial statements
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Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 and for such internal control as the directors determine 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, management 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
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The objectives of an auditor 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 Auditor's report that includes their 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.
A further description of an auditor's 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 auditor's report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulation that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited (continued)
Responsibilities of the auditor for the audit of the financial statements (continued)
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)
In response to these principal risks, our audit procedures included but were not limited to:
∙inquiries of management and board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
∙inspection of the Company’s legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
∙gaining an understanding of the internal controls established to mitigate risk related to fraud;
∙discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
∙identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
∙designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
∙challenging assumptions and judgements made by management in their significant accounting estimates, including impairment assessment of investments and debtors; and
∙review of the financial statements disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
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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 2006. Our 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 auditor’s 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.
Tracey Sullivan (Senior statutory auditor)
for and on behalf of
Grant Thornton
Chartered Accountants &
Statutory Auditors
13 - 18 City Quay
Dublin 2
9 November 2023
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Standard Commercial Tobacco Company (UK) Limited
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Statement of comprehensive income
For the year ended 31 March 2023
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Interest receivable and similar income
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All amounts relate to continuing operations.
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There was no other comprehensive income for 2023 (2022: $Nil).
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The notes on pages 13 to 23 form part of these financial statements.
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Page 10
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Standard Commercial Tobacco Company (UK) Limited
Registered number:01411968
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Statement of financial position
As at 31 March 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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Simon Mark Usher
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The notes on pages 13 to 23 form part of these financial statements.
Page 11
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Standard Commercial Tobacco Company (UK) Limited
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Statement of changes in equity
For the year ended 31 March 2023
Statement of changes in equity
For the year ended 31 March 2022
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The notes on pages 13 to 23 form part of these financial statements.
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Page 12
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
Standard Commercial Tobacco Company (UK) Limited is a private company limited by shares incorporated in England and Wales. Its registered office is Building A, Riverside Way, Camberley, Surrey, GU15 3YL, United Kingdom.
The principal activity of the Company is to act as a holding company for the group subsidiaries in Malawi and the United Kingdom.
2.Accounting policies
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Basis of preparation of financial statements
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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 judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In preparing the financial statements, the directors consider it appropriate to continue to use the going concern assumption, which assumes that the Company will have sufficient resources to enable it to meet its liabilities as they fall due.
There were no significant changes in the Company's principal activity during the year 2023 and the directors are not aware at the date of this report of any likely major changes in either the nature or level of the Company's activities in the next year. The Company is in a strong financial position. After making inquiries, the directors believe the Company has adequate financial resources to continue operating for the foreseeable future.
The directors believe that the going concern basis of preparation is appropriate for the financial statements. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.
These financial statements are prepared as the Company’s separate financial statements. The Company has taken advantage of s401 of the Companies Act 2006 to claim exemption from producing group accounts for the year. The consolidation is completed at the top level by Pyxus International Inc since September 2018, (formerly Alliance One International Inc.), the Company's ultimate parent, in the USA.
Page 13
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is USD.
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'.
Interest income is recognised in profit or loss using the effective interest method.
A defined benefit pension plan is operated for all eligible employees of Standard Commercial Tobacco Company (UK), and fellow subsidiary, Alliance One International Services Limited. The plan is funded by contributions from the employer determines in accordance with the advice of a professionally qualified actuary. The plan's assets are held separately from the Company's assets and form no part of these financial statements.
The Company participates in a defines benefit plan, which is a multi-employer plan that due to insufficient information is accounted for as if the plan were a defined contribution plan. Where the Company has entered into an agreement with the multi-employer plan that determines how the Company will fund a deficit, the entity shall recognise a liability for the contributions payable that arise from the agreement and the resulting expense in profit or loss, but only to the extent that they relate to the deficit. If the scheme is in surplus the Company recognise contributions as paid unless there is sufficient evidence to their recoverability and then an asset would be recognised.
Page 14
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
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 reporting 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 Statement of financial position 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 reporting date.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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.
Page 15
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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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 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.
Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.
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.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expires, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Page 16
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these judgments and estimates have been made include:
Impairment of investments
In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate. No impairment loss has been recognised during the year. See note 7 for the carrying value of investments.
Going concern
After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
Impairment of debtors
The Company estimates the allowance for doubtful debtors based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty the certain debtors are unable to meet their financial obligations. In these cases, judgment used was based on the best available facts and circumstances including but not limited to, the length and nature of the relationship.
Recognition of deferred tax asset
The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Company's future taxable income against which the deferred tax assets can be utilised.
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The operating profit/(loss) is stated after charging:
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The Company has no employees other than the directors, who did not receive any remuneration (2022: $Nil).
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Current tax on profits for the year
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Taxation on profit on ordinary activities
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Page 17
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
6.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 19% (2022:19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022: 19%)
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Expenses not deductible for tax purposes
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Adjustment in respect to prior period
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Total tax charge for the year
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Factors that may affect future tax charges
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A deferred tax asset has not been recognised in respect of income losses of $Nil and capital losses of $646,764 (2022: $646,764) as the Company does not expect the amounts to be recoverable.
Page 18
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
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Investments in subsidiary companies
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Investments in associates
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The following was a subsidiary undertaking of the Company:
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Alliance One Tobacco (Malawi) Limited
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P.O Box 30522, Capital City, Lilongwe 3, Malawi
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The shares in all the companies are held by Standard Commercial Tobacco Company (UK) Limited.
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Associates and Joint Ventures
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Alliance One Industries (Pvt) Ltd
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Narendra Nagar, Pottur - 522 055, Guntur, Andhra Pradesh, India
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Tobacco handling and processing
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Voting rights in all these companies are as per the share holdings.
Page 19
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
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Debtors: Amounts falling due within one year
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Amounts owed by group undertakings
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Amounts owed by group undertakings bear interest at 3%.
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Creditors: Amounts falling due within one year
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1,000,000 Ordinary shares of $1.629 each
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Called up, alloted and fully paid
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480,000 Ordinary shares of $1.629 each
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Page 20
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
Called up share capital
Represents the nominal value of shares that have been issued.
Profit and loss account
Includes all current and prior period retained profit and losses.
The Company operates a Defined benefit pension scheme.
A defined benefit pension plan is operated for all eligible employees of Standard Commercial Tobacco Company (UK), and fellow subsidiary, Alliance One International Services Limited. The plan is funded by contributions from the employer determines in accordance with the advice of a professionally qualified actuary. The plan's assets are held separately from the Company's assets and form no part of these financial statements.
The assets and liabilities of the scheme are not separately identifiable, therefore the Company accounts for the scheme as a defined contribution scheme. The charge recorded by the Company in the year in respect of this scheme was $Nil (2022: $Nil) which equals the amount paid in both years. The following information is given in respect of the scheme as a whole.
The scheme is in an asset position, however, this asset is not believed to be fully recoverable and therefore no asset has been recognised within the financial statements.
A full actuarial valuation was carried out as at 29 June 2023 by a qualified actuary. The major assumptions used for the actuarial valuation are presented below.
There were no changes to the scheme during the year and no amounts owing to the scheme at the year end.
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Reconciliation of present value of plan liabilities:
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Reconciliation of present value of plan liabilities
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At the beginning of the year
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Remeasurements - effects of changes in assumptions
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Effect of experience adjustments
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Page 21
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
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Pension commitments (continued)
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Reconciliation of present value of plan assets:
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At the beginning of the year
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Interest income on plan assets
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Return on plan assets (excluding interest income)
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Movement in exchange rate
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Composition of plan assets:
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Fair value of plan assets
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Present value of plan liabilities
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Net pension scheme assets
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The amounts recognised in profit or loss are as follows:
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Actual return on plan assets
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Page 22
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Standard Commercial Tobacco Company (UK) Limited
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Notes to the financial statements
For the year ended 31 March 2023
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Pension commitments (continued)
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Principal actuarial assumptions at the Statement of financial position date (expressed as weighted averages):
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Related party transactions
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The Company has availed of the exemptions under FRS 102.33 Related Party Disclosures not to disclose transactions with fellow wholly owned group companies.
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Post balance sheet events
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There are no subsequent events affecting the Company since the year end.
The ultimate parent company is Pyxus International, Inc. (formerly Alliance One International Inc.), a company incorporated in the United States of America. The largest and smallest group in which the results of the Company are consolidated is that headed by Pyxus International, Inc. (formerly Alliance One International Inc.). Copies of the group financial statements of the ultimate parent company are available from The Corporate Secretary, Pyxus International Inc (formerly Alliance One International Inc.), 8001 Aerial Center Parkway, PO Box 2009, Morrisville NC 27560, USA.
The immediate parent company undertaking is Alliance One International GmbH (formerly Alliance One International AG) which is incorporated in Switzerland. The accounts of Alliance One International GmbH (formerly Alliance One International AG) are not available to the public.
Page 23
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