Caseware UK (AP4) 2022.0.179 2022.0.179 All amounts relate to continuing operations. There was no other comprehensive income for 2023 (2022: $Nil).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. 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.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: 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.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. 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.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. 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. 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.falsetrue2022-04-0100truefalse 01411968 2022-04-01 2023-03-31 01411968 2021-04-01 2022-03-31 01411968 2023-03-31 01411968 2022-03-31 01411968 2021-04-01 01411968 1 2022-04-01 2023-03-31 01411968 d:CompanySecretary1 2022-04-01 2023-03-31 01411968 d:Director1 2022-04-01 2023-03-31 01411968 d:Director1 2023-03-31 01411968 d:Director2 2022-04-01 2023-03-31 01411968 d:Director3 2022-04-01 2023-03-31 01411968 d:RegisteredOffice 2022-04-01 2023-03-31 01411968 d:Agent1 2022-04-01 2023-03-31 01411968 c:CurrentFinancialInstruments 2023-03-31 01411968 c:CurrentFinancialInstruments 2022-03-31 01411968 c:UKTax 2022-04-01 2023-03-31 01411968 c:UKTax 2021-04-01 2022-03-31 01411968 c:ShareCapital 2022-04-01 2023-03-31 01411968 c:ShareCapital 2023-03-31 01411968 c:ShareCapital 2022-03-31 01411968 c:ShareCapital 2021-04-01 01411968 c:SharePremium 2022-04-01 2023-03-31 01411968 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 01411968 c:RetainedEarningsAccumulatedLosses 2023-03-31 01411968 c:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 01411968 c:RetainedEarningsAccumulatedLosses 2022-03-31 01411968 c:RetainedEarningsAccumulatedLosses 2021-04-01 01411968 d:OrdinaryShareClass1 2022-04-01 2023-03-31 01411968 d:OrdinaryShareClass1 2021-04-01 2022-03-31 01411968 d:OrdinaryShareClass1 2023-03-31 01411968 d:FRS102 2022-04-01 2023-03-31 01411968 d:Audited 2022-04-01 2023-03-31 01411968 d:FullAccounts 2022-04-01 2023-03-31 01411968 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 01411968 c:Subsidiary4 2022-04-01 2023-03-31 01411968 c:Subsidiary4 1 2022-04-01 2023-03-31 01411968 2 2022-04-01 2023-03-31 01411968 6 2022-04-01 2023-03-31 01411968 c:Associate1 2022-04-01 2023-03-31 01411968 c:Associate1 1 2022-04-01 2023-03-31 xbrli:shares iso4217:GBP xbrli:pure

img4e7e.png






Financial Statements
Standard Commercial Tobacco Company (UK) Limited
For the year ended 31 March 2023





































Registered number: 01411968

 
Standard Commercial Tobacco Company (UK) Limited
 

Company Information


Directors
Joan Teresa Goulden (resigned 30 September 2023)
Simon Mark Usher 
Paul Thornton 




Company secretary
Amanda Kaberle



Registered number
01411968



Registered office
Building A
Riverside Way

Camberley

Surrey

GU15 3L

United Kingdom




Independent auditor
Grant Thornton
Chartered Accountants & Statutory Auditors

13-18 City Quay

Dublin 2




Bankers
Lloyds TSB Bank plc
49 High Street

Godalming

Surrey

GU7 1AT

United Kingdom





 
Standard Commercial Tobacco Company (UK) Limited
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23


 
Standard Commercial Tobacco Company (UK) Limited
 

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

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
 
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
 
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

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

 
Standard Commercial Tobacco Company (UK) Limited
 

Strategic report (continued)
For the year ended 31 March 2023


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



................................................
Simon Mark Usher
Director

Date: 9 November 2023

Page 2

 
Standard Commercial Tobacco Company (UK) Limited
 
 
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.

Principal activity

The principal activity of the Company is to act as a holding company for the group subsidiaries in Malawi and the United Kingdom.

Results and dividends

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).

Directors

The directors who served during the year were:

Joan Teresa Goulden (resigned 30 September 2023)
Simon Mark Usher 
Paul Thornton 

Going concern

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

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)

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

There are no subsequent events affecting the Company since the year end.

Page 3

 
Standard Commercial Tobacco Company (UK) Limited
 

Directors' report (continued)
For the year ended 31 March 2023

Auditor

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.
 





................................................
Simon Mark Usher
Director

Date: 9 November 2023

Page 4

 
Standard Commercial Tobacco Company (UK) Limited
 

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 2006They 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: 


 
................................................
Simon Mark Usher
Director

Date: 9 November 2023
Page 5

 
 
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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited
 
Opinion


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.


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 '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


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.




Page 6


 
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Independent auditor's report to the members of Standard Commercial Tobacco Company (UK) Limited (continued)
 
Other information


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 statementsour 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


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


Page 7


 
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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
 

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
 

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.
 
Page 8


 
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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
 

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
Page 9

 
Standard Commercial Tobacco Company (UK) Limited
 

Statement of comprehensive income
For the year ended 31 March 2023

2023
2022
Note
 $
$

  

Administrative expenses
  
(24,363)
(8,827)

Other operating income
  
631,730
-

Operating profit/(loss)
 4 
607,367
(8,827)

Interest receivable and similar income
  
651,193
362,349

Profit before tax
  
1,258,560
353,522

Tax on profit
 6 
-
(865)

Profit for the year
  
1,258,560
352,657

All amounts relate to continuing operations. 

There was no other comprehensive income for 2023 (2022: $Nil).

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
Standard Commercial Tobacco Company (UK) Limited
Registered number:01411968

Statement of financial position
As at 31 March 2023

2023
2022
Note
$
$

Fixed assets
  

Investments
 7 
38,672,207
38,672,207

  
38,672,207
38,672,207

Current assets
  

Debtors: amounts falling due within one year
 8 
13,540,847
12,281,372

Cash at bank
 9 
17,073
17,797

  
13,557,920
12,299,169

Current liabilities
  

Creditors: amounts falling due within one year
 10 
(2,040)
(1,849)

Net current assets
  
 
 
13,555,880
 
 
12,297,320

Net assets
  
52,228,087
50,969,527


Capital and reserves
  

Called up share capital 
 11 
781,759
781,759

Profit and loss account
 12 
51,446,328
50,187,768

Shareholders' funds
  
52,228,087
50,969,527



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





................................................
Simon Mark Usher
Director

Date: 9 November 2023

The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
Standard Commercial Tobacco Company (UK) Limited
 

Statement of changes in equity
For the year ended 31 March 2023


Called up share capital
Profit and loss account
Total equity

$
$
$

At 1 April 2022
781,759
50,187,768
50,969,527



Profit for the year
-
1,258,560
1,258,560


At 31 March 2023
781,759
51,446,328
52,228,087



Statement of changes in equity
For the year ended 31 March 2022


Called up share capital
Profit and loss account
Total equity

$
$
$

At 1 April 2021
781,759
49,835,111
50,616,870



Profit for the year
-
352,657
352,657


At 31 March 2022
781,759
50,187,768
50,969,527


The notes on pages 13 to 23 form part of these financial statements.

Page 12

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

1.


General information

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

 
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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

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.

  
2.3

Basis of consolidation

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

 
Standard Commercial Tobacco Company (UK) Limited
 
Notes to the financial statements
For the year ended 31 March 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

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'.

 
2.5

Interest income

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

 
2.6

Pensions

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

 
Standard Commercial Tobacco Company (UK) Limited
 
Notes to the financial statements
For the year ended 31 March 2023

2.Accounting policies (continued)

 
2.7

Taxation

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.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.9

 Debtors

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.

 
2.10

 Cash and cash equivalents

Cash is represented by deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.11

 Creditors

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.

 
2.12

 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.

Page 15

 
Standard Commercial Tobacco Company (UK) Limited
 
Notes to the financial statements
For the year ended 31 March 2023

2.Accounting policies (continued)


2.12
 Financial instruments (continued)

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.

  
2.13

 Impairment of assets

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

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

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.


4.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
$
$

Exchange differences
20,751
2,550


5.


Employees

The Company has no employees other than the directors, who did not receive any remuneration (2022: $Nil).


6.


Taxation


2023
2022
$
$

Corporation tax


Current tax on profits for the year
-
865



Taxation on profit on ordinary activities
-
865
Page 17

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023
 
6.Taxation (continued)


Factors affecting tax charge for the year

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:

2023
2022
$
$


Profit on ordinary activities before tax
1,258,560
353,522


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022: 19%)
239,126
67,169

Effects of:


Expenses not deductible for tax purposes
262
-

Other timing differences
(53,602)
741

Group relief
(185,786)
(67,910)

Adjustment in respect to prior period
-
865

Total tax charge for the year
-
865


Factors that may affect future tax charges

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

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

7.


Fixed asset investments





Investments in subsidiary companies
Investments in associates
Total

$
$
$



Cost or valuation


At 1 April 2022
37,000,000
1,672,207
38,672,207



At 31 March 2023
37,000,000
1,672,207
38,672,207





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Alliance One Tobacco (Malawi) Limited
P.O Box 30522, Capital City, Lilongwe 3, Malawi
Tabacco trading
Ordinary
99.99%

The shares in all the companies are held by Standard Commercial Tobacco Company (UK) Limited.


Associates and Joint Ventures
Registered office
Principal activity
Class of
shares
Holding

Alliance One Industries (Pvt) Ltd
Narendra Nagar, Pottur - 522 055, Guntur, Andhra Pradesh, India
Tobacco handling and processing
Ordinary
49%

Voting rights in all these companies are as per the share holdings.

Page 19

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

8.


Debtors: Amounts falling due within one year

2023
2022
$
$


Amounts owed by group undertakings
13,540,682
12,255,493

Other debtors
165
169

Tax recoverable
-
25,710

13,540,847
12,281,372


Amounts owed by group undertakings bear interest at 3%. 


9.


Cash at bank

2023
2022
$
$

Cash at bank
17,073
17,797



10.


Creditors: Amounts falling due within one year

2023
2022
$
$

Other creditors
-
5

Accruals
2,040
1,844

2,040
1,849



11.


Share capital

2023
2022
$
$
Authorised



1,000,000 Ordinary shares of $1.629 each
1,628,665
1,628,665

Called up, alloted and fully paid



480,000 Ordinary shares of $1.629 each
781,759
781,759


Page 20

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

12.


Reserves


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. 


13.


Pension commitments

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.

Reconciliation of present value of plan liabilities:

2023
2022
$'000
$'000

Reconciliation of present value of plan liabilities


At the beginning of the year
31,122
34,529

Interest cost
800
684

Benefits paid
(1,102)
(1,272)

Remeasurements - effects of changes in assumptions
(8,270)
(2,546)

Effect of experience adjustments
1,678
1,308

Exchange rate movement
(1,849)
(1,581)

At the end of the year
22,379
31,122

Page 21

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

13.


Pension commitments (continued)

Reconciliation of present value of plan assets:

2023
2022
$'000
$'000



At the beginning of the year
43,009
45,713

Interest income on plan assets
1,110
910

Asset write-down
(3,761)
-

Benefits paid
(1,102)
(1,272)

Return on plan assets (excluding interest income)
(10,362)
(252)

Movement in exchange rate
(2,555)
(2,090)

At the end of the year
26,339
43,009

Composition of plan assets:

2023
2022
$'000
$'000



Debt instruments
-
36,287

Cash
3,960
6,722

Buy-in contract
22,380
-

Total plan assets
26,340
43,009

2023
2022
$
$



Fair value of plan assets
26,339
43,009

Present value of plan liabilities
(22,379)
(31,122)

Net pension scheme assets
3,960
11,887
The amounts recognised in profit or loss are as follows:

Current service cost


Actual return on plan assets
(9,252)
658

Page 22

 
Standard Commercial Tobacco Company (UK) Limited
 
 
Notes to the financial statements
For the year ended 31 March 2023

13.


Pension commitments (continued)

Principal actuarial assumptions at the Statement of financial position date (expressed as weighted averages):





2023
$'000
2022
$'000

Discount rate
4.87
2.78

Future salary increases
N/A
N/A

Inflation assumption
3.20
3.70

Mortality rates

- aged 65 now
23.3 (M)/ 25.7 (F)
23.5 (M)/ 24.6 (F)

- aged 45 now

24.8 (M)/ 26.9 (F)
25.2 (M)/ 26.4 (F)

14.


Related party transactions

The Company has availed of the exemptions under FRS 102.33 Related Party Disclosures not to disclose transactions with fellow wholly owned group companies.


15.


Post balance sheet events

There are no subsequent events affecting the Company since the year end.


16.


Controlling party

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