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Company registration number: 07433514







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 AUGUST 2023


JT AGRO LIMITED






































img3af5.png                        

 


JT AGRO LIMITED
 


 
COMPANY INFORMATION


Directors
Gurvinder Singh 
Jaitej Walia 




Registered number
07433514



Registered office
Lees Mill Lane
Linthwaite

Huddersfield

West Yorkshire

HD7 5QE




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


JT AGRO LIMITED
 



CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 29


 


JT AGRO LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023

Introduction
 
The directors present their strategic report of the company and the group for the period ended 31 August  2023.

Business review
 
Turnover for the 15 month period to 31 August 2023 was £57.4m, which represents a relative decline in turnover when comparing to the 12 month period to 31 May 2022. This is largely due to external market factors such as poor weather conditions resulting in a fall in demand for agrochemicals during the period. By contrast, there has been an increase in gross profit margins due to management's success in controlling costs. As a result overall profitability has increased significantly during the period. 
The group's key financial and other performance indicators during the year were as follows:
                                                                                                   
31-Aug-23                       31-May-22
Turnover                                                                                 £57,356,960                    £53,432,885
Gross Profit                                                                              £6,351,137                      £5,200,003
As a % of sales                                                                                11.1%                               9.7%
Operating results                                                                     £5,727,006                      £3,126,491
Cash at bank                                                                           £1,459,851                      £2,074,469
Net assets                                                                               £9,951,752                      £6,656,299

Principal risks and uncertainties
 
The directors have considered the principal risks and uncertainties affecting the group as at the balance sheet date and up to the date of this report. 
The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk and liquidity risk. The group has debt finance but does not use derivative financial instruments to manage interest rate and as such, no hedge accounting is applied. 
The group's financial instruments comprise cash and liquid resources, various items such as trade debtors, trade creditors etc, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. It is, and has been throughout the period under review, the group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the group's financial instruments are market risk, credit risk, business and operational risk.

Market risks
 
Market risk includes failure to anticipate pricing and market changes. External influences, such as fluctuations in commodity prices, foreign currency exchange rates and currency values could have a material adverse effect on our results of operation and financial position. The group seeks to manage the risk through diversification of its portfolio of products, geographies into which it sells and the currencies in which it operates.

Credit risk
 
The group trades with only recognised, creditworthy third parties. It is group policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant.

Page 1

 


JT AGRO LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023

Business and Operational risks
 
We sell our products in competitive markets, and the success of our competitive strategy depends on our products and retaining customers and distributors. The group manages business and operational risk by ensuring adequate operating margins are maintained.

Directors' statement of compliance with duty to promote the success of the Group

Section 172 of the Companies Act requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board considers that the decisions they have made during the financial year and the way they have acted have been in the best interests of stakeholders and related parties, having regard for matters set out in s172(1) (a-f) of the Act.
The Board acts in good faith and in a manner that they consider promotes the long-term success of the business for the benefit of its stakeholders. The directors are constantly exploring opportunities to generate additional business. The company's key stakeholders are its clients and suppliers. The Group engages with its clients and suppliers through several means including:
Clients:
Providing support and advice to clients to build sustainable long-term business relationships to help them achieve their goals and objectives.
Suppliers:
Effective communications and updates on contracts to develop sustainable long-term business relationships.


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



Jaitej Walia
Director

Date: 21 October 2024

Page 2

 


JT AGRO LIMITED
 


 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023

The directors present their report and the financial statements for the period ended 31 August 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group in the period under review was that of trading in agro chemicals.

Results and dividends

The profit for the period, after taxation and minority interests, amounted to £4,504,770 (2022 - £2,467,047).

Dividends amounted to £1,196,820 in the period ended 31 August 2023 (2022: £NIL).

Directors

The directors who served during the period were:

Gurvinder Singh 
Jaitej Walia 

Future developments

The Group will continue to adopt its current strategy to deliver strong results that meet and hopefully exceed the expectations of the board.

Page 3

 


JT AGRO LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023

Engagement with suppliers, customers and others

The directors regularly monitor key supplier relationships, relevant developments and engagement activities. Contracts and activity with customers have been reviewed by the directors in the context of the relevant transactions.
The directors have always paid special attention to issues related to customers and suppliers. During the period ended 31 August 2023, the directors regularly monitor the performance of customers and suppliers and the impacts on them of the wider macroeconomic and geopolitical environment.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the period is 40,000kWH or lower.

Matters covered in the Group strategic report

The Group has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the Directors' Report, such as the business review, details of the principal risks and uncertainties and subsequent events.

Disclosure of information to auditors

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 and the Group's auditors are 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 and the Group's auditors are aware of that information.

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





Jaitej Walia
Director

Date: 21 October 2024

Page 4

 


JT AGRO LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JT AGRO LIMITED

Opinion


We have audited the financial statements of JT Agro Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 August 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2023 and of the Group's profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 


JT AGRO LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JT AGRO LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


JT AGRO LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JT AGRO LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
 
The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation;
General Data Protection Regulations;
UK tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Group is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. He did not identify any issues in this area.
We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted outside of the normal working patterns of the accounts team, or with unusual descriptions or account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the financial position in the calculation of the year end provisions;
The posting of unusual journals and complex transactions; or
The use of management override of controls to manipulate results.
 
Page 7

 


JT AGRO LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JT AGRO LIMITED (CONTINUED)



Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Robin Hopkins (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

21 October 2024
Page 8

 


JT AGRO LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2023

31 August 2023
31 May
2022
Note
£
£

  

Turnover
 4 
57,356,960
53,432,885

Cost of sales
  
(51,005,823)
(48,232,882)

Gross profit
  
6,351,137
5,200,003

Administrative expenses
  
(1,753,313)
(1,008,639)

Exceptional administrative expenses
 5 
1,129,182
(1,064,873)

Operating profit
  
5,727,006
3,126,491

Interest receivable and similar income
 9 
45
-

Interest payable and similar expenses
 10 
-
(8,170)

Profit before taxation
  
5,727,051
3,118,321

Tax on profit
 11 
(1,234,778)
(576,128)

Profit for the financial period
  
4,492,273
2,542,193

  

Total comprehensive income for the period
  
4,492,273
2,542,193

Profit for the period attributable to:
  

Non-controlling interests
  
(12,497)
75,146

Owners of the parent Company
  
4,504,770
2,467,047

  
4,492,273
2,542,193

Total comprehensive income for the period attributable to:
  

Non-controlling interest
  
(12,497)
75,146

Owners of the parent Company
  
4,504,770
2,467,047

  
4,492,273
2,542,193

The notes on pages 16 to 29 form part of these financial statements.

Page 9

 


JT AGRO LIMITED
REGISTERED NUMBER:07433514



CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023

31 August 2023
31 May
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,468
2,572

  
1,468
2,572

Current assets
  

Stocks
 15 
17,098,181
10,815,809

Debtors: amounts falling due within one year
 16 
8,083,552
20,962,572

Cash at bank and in hand
 17 
1,459,851
2,074,469

  
26,641,584
33,852,850

Creditors: amounts falling due within one year
 18 
(16,690,945)
(27,198,634)

Net current assets
  
 
 
9,950,639
 
 
6,654,216

Total assets less current liabilities
  
9,952,107
6,656,788

Provisions for liabilities
  

Deferred taxation
 19 
(355)
(489)

  
 
 
(355)
 
 
(489)

Net assets
  
9,951,752
6,656,299


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account
 21 
9,874,434
6,566,484

Equity attributable to owners of the parent Company
  
9,874,534
6,566,584

Non-controlling interests
  
77,218
89,715

  
9,951,752
6,656,299


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




Jaitej Walia
Director

Date: 21 October 2024

The notes on pages 16 to 29 form part of these financial statements.

Page 10

 


JT AGRO LIMITED
REGISTERED NUMBER:07433514



COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023

31 August 2023
31 May
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
-
516

Investments
 14 
166
166

  
166
682

Current assets
  

Stocks
 15 
-
1,280,759

Debtors: amounts falling due within one year
 16 
3,584,768
3,680,485

Cash at bank and in hand
 17 
269,250
579,703

  
3,854,018
5,540,947

Creditors: amounts falling due within one year
 18 
(2,207,466)
(3,687,642)

Net current assets
  
 
 
1,646,552
 
 
1,853,305

Total assets less current liabilities
  
1,646,718
1,853,987

  

Provisions for liabilities
  

Deferred taxation
 19 
-
(98)

  
 
 
-
 
 
(98)

Net assets
  
1,646,718
1,853,889


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account brought forward
  
1,853,789
1,404,749

Profit for the period
  
989,649
449,040

Dividends paid

  

(1,196,820)
-

Profit and loss account carried forward
  
1,646,618
1,853,789

  
1,646,718
1,853,889


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


Jaitej Walia
Director

Date: 21 October 2024

The notes on pages 16 to 29 form part of these financial statements.

Page 11

 


JT AGRO LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


At 1 June 2021
100
4,099,437
4,099,537
14,569
4,114,106


Comprehensive income for the year

Profit for the year
-
2,467,047
2,467,047
75,146
2,542,193
Total comprehensive income for the year
-
2,467,047
2,467,047
75,146
2,542,193



At 1 June 2022
100
6,566,484
6,566,584
89,715
6,656,299


Comprehensive income for the period

Profit for the period
-
4,504,770
4,504,770
(12,497)
4,492,273
Total comprehensive income for the period
-
4,504,770
4,504,770
(12,497)
4,492,273


Contributions by and distributions to owners

Dividends paid
-
(1,196,820)
(1,196,820)
-
(1,196,820)


Total transactions with owners
-
(1,196,820)
(1,196,820)
-
(1,196,820)


At 31 August 2023
100
9,874,434
9,874,534
77,218
9,951,752


The notes on pages 16 to 29 form part of these financial statements.

Page 12

 


JT AGRO LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2021
100
1,404,749
1,404,849


Comprehensive income for the year

Profit for the year
-
449,040
449,040
Total comprehensive income for the year
-
449,040
449,040



At 1 June 2022
100
1,853,789
1,853,889


Comprehensive income for the year

Profit for the period
-
989,649
989,649
Total comprehensive income for the period
-
989,649
989,649


Contributions by and distributions to owners

Dividends paid
-
(1,196,820)
(1,196,820)


Total transactions with owners
-
(1,196,820)
(1,196,820)


At 31 August 2023
100
1,646,618
1,646,718


The notes on pages 16 to 29 form part of these financial statements.

Page 13

 


JT AGRO LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023

31 August 2023
31 May
2022
£
£

Cash flows from operating activities

Profit for the financial period
5,727,051
3,118,321

Adjustments for:

Depreciation of tangible assets
1,104
1,744

Interest paid
-
8,170

Interest received
(45)
-

(Increase) in stocks
(6,282,372)
(7,960,962)

Decrease/(increase) in debtors
12,879,020
(16,012,963)

(Decrease)/increase in creditors
(11,145,367)
21,654,360

Corporation tax (paid)
(597,234)
(505,573)

Interest paid
-
(8,170)

Interest received
45
-

Net cash generated from operating activities

582,202
294,927


Cash flows from investing activities

Purchase of intangible fixed assets
-
(2,350)

Net cash from investing activities

-
(2,350)

Cash flows from financing activities

Amount withdrawn by directors
(16,803)
(909)

Dividends paid
(1,196,820)
-

Foreign exchange
5,967
-

Net cash used in financing activities
(1,207,656)
(909)

Net (decrease)/increase in cash and cash equivalents
(625,454)
291,668

Cash and cash equivalents at beginning of period
2,074,469
1,782,801

Cash and cash equivalents at the end of period
1,449,015
2,074,469


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
1,449,015
2,074,469

1,449,015
2,074,469


The notes on pages 16 to 29 form part of these financial statements.

Page 14

 


JT AGRO LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 AUGUST 2023




At 1 June 2022
Cash flows
At 31 August 2023
£

£

£

Cash at bank and in hand

2,074,469

(625,454)

1,449,015


2,074,469
(625,454)
1,449,015

The notes on pages 16 to 29 form part of these financial statements.

Page 15

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

1.


General information

JT Agro Limited is a private company, limited by shares, registered in England and Wales. The company’s registered number and registered office address can be found on the General Information page.
The current period relates to the 15 months from 1 June 2022 to 31 August 2023 whereas the prior period related to the 12 month period from 1 June 2021 to 31 May 2022. Therefore the comparative period is not directly comparable.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

These financial statements have been prepared on the going concern basis.
The directors are confident, after reviewing cash flow forecasts for the 12 month period after the date of approval of these financial statements, that the Group has adequate financial resources which will enable the Company and Group to pay their debts as they fall due for the foreseeable future.

 
2.4

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue is recognised on the sale of goods when the significant risks and rewards of ownership of goods have passed to the buyer and the amount of revenue can be measured reliably. Revenue on goods delivered is recognised when the customer accepts delivery.
Invoices issued in the year for delivery after the year end have been excluded from sales.

Page 16

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 
2.6

Finance costs

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

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Current and deferred taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


  
2.9

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Page 17

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
on cost
Computer equipment
-
25%
on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

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

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

 
2.14

Debtors

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

 
2.15

Cash and cash equivalents

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

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

Page 18

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.16

Creditors

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

 
2.17

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price.Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period.

Page 19

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

4.


Turnover

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

31 August 2023
31 May
2022
£
£

United Kingdom
7,536,916
15,667,518

Europe
49,820,044
37,763,441

Rest of the world
-
1,926

57,356,960
53,432,885



5.


Exceptional items

31 August
2023
31 May
2022
£
£


Foreign exchange (gain)/loss
(1,129,182)
1,064,873

(1,129,182)
1,064,873


6.


Auditors' remuneration

During the period, the Group obtained the following services from the Company's auditors and their associates:


31 August
2023
31 May
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
9,000
4,750

Fees payable to the Company's auditors and their associates in respect of:

The auditing of accounts of associates of the Company
30,250
19,800

Non-audit services
14,802
24,385

Page 20

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£


Wages and salaries
76,544
27,079
76,544
27,079

Social security costs
6,942
-
6,942
-

Cost of defined contribution scheme
1,462
328
1,462
328

84,948
27,407
84,948
27,407


The average monthly number of employees, including the directors, during the period was as follows:



Group
Group
Company
Company
   31 August
2023
     31 May
2022
   31 August
2023
     31 May
2022
            No.
            No.
            No.
            No.









Administrative
3
3
3
3


8.


Directors' remuneration

31 August 2023
31 May
2022
£
£

Directors' emoluments
44,274
8,886

44,274
8,886



9.


Interest receivable

31 August 2023
31 May
2022
£
£


Other interest receivable
45
-

45
-

Page 21

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

10.


Interest payable and similar expenses

31 August 2023
31 May
2022
£
£


Bank interest
-
8,170

-
8,170


11.


Taxation


31 August 2023
31 May
2022
£
£

Corporation tax


Current tax on profits for the period/year
1,234,912
597,222

Adjustments in respect of previous periods
-
(21,209)


1,234,912
576,013


Total current tax
1,234,912
576,013

Deferred tax


Origination and reversal of timing differences
(134)
115

Total deferred tax
(134)
115


Tax on profit
1,234,778
576,128
Page 22

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is higher than (2022 -lower than) the standard rate of corporation tax in the UK of 21% (2022 -19%). The differences are explained below:

31 August 2023
31 May
2022
£
£


Profit on ordinary activities before tax
5,727,051
3,118,321


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21% (2022 -19%)
1,202,681
592,481

Effects of:


Expenses not deductible for tax purposes
13,894
3,365

Capital allowances in excess of depreciation
24
(115)

Adjustments to tax charge in respect of previous periods
(1,790)
(21,209)

Deferred tax
(24)
115

Losses carried forward
-
1,491

Deferred tax not recognised
19,993
-

Total tax charge for the period/year
1,234,778
576,128


12.


Dividends

31 August
31 May
2023
2022
£
£


Dividends
1,196,820
-

1,196,820
-

Page 23

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

13.


Tangible fixed assets

Group








Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 June 2022
2,350
5,798
8,148



At 31 August 2023

2,350
5,798
8,148



Depreciation


At 1 June 2022
294
5,282
5,576


Charge for the period on owned assets
588
516
1,104



At 31 August 2023

882
5,798
6,680



Net book value



At 31 August 2023
1,468
-
1,468



At 31 May 2022
2,056
516
2,572

Page 24

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

           13.Tangible fixed assets (continued)


Company









Computer equipment

£

Cost or valuation


At 1 June 2022
5,798



At 31 August 2023

5,798



Depreciation


At 1 June 2022
5,282


Charge for the period on owned assets
516



At 31 August 2023

5,798



Net book value



At 31 August 2023
-



At 31 May 2022
516







14.


Fixed asset investments

Company








Shares in group undertakings

£



Cost or valuation


At 1 June 2022
166



At 31 August 2023
166




Page 25

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Cropthetics Limited
Lees Mill Lane, Linthwaite, Huddersfield, West Yorkshire, HD7 5QE
Ordinary
100%
60BC Limited
Lees Mill Lane, Linthwaite, Huddersfield, West Yorkshire, HD7 5QE
Ordinary
75%
JT Agro Ireland Limited
Ardsallagh Lane, Navan, County Meath, C15 XOF9, Ireland
Ordinary
100%

The aggregate of the share capital and reserves as at 31 August 2023 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Cropthetics Limited
8,065,772
4,517,411

60BC Limited
308,871
(49,988)

JT Agro Ireland Limited
(69,418)
(38,763)


15.


Stocks

Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£

Stocks
17,098,181
10,815,809
-
1,280,759

17,098,181
10,815,809
-
1,280,759


Page 26

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

16.


Debtors

Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£


Trade debtors
7,458,537
20,375,976
-
2,609,140

Amounts owed by group undertakings
-
-
3,570,832
1,046,054

Amounts owed by related parties
21,651
485,473
13,891
4,082

Other debtors
125,284
21,309
33
21,209

Tax recoverable
478,080
79,814
-
-

Deferred taxation
-
-
12
-

8,083,552
20,962,572
3,584,768
3,680,485



17.


Cash and cash equivalents

Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,459,851
2,074,469
269,250
579,703

1,459,851
2,074,469
269,250
579,703



18.


Creditors: Amounts falling due within one year

Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£

Trade creditors
9,347,137
21,767,283
388,605
1,564,042

Corporation tax
1,234,912
597,234
25,873
101,979

Other taxation and social security
1,363,089
773,335
187,109
883,381

Other creditors
1,708,641
1,121,161
1,586,228
1,121,161

Accruals and deferred income
3,036,772
2,939,227
19,375
16,803

Directors' current accounts
394
394
276
276

16,690,945
27,198,634
2,207,466
3,687,642


Page 27

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

19.


Deferred taxation


Group



31 August
2023
31 May
2022


£

£






At beginning of period
(489)
(374)


Credited/(charged) during period
134
(115)



At end of year
(355)
(489)

Company


31 August
2023
31 May
2022


£

£






At beginning of period
(98)
(374)


Provided during period
110
276



At end of year
12
(98)

The provision for deferred taxation is made up as follows:

Group
31 August
Group
31 May
Company
31 August
Company
31 May
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
355
489
(12)
98

355
489
(12)
98


20.


Share capital

31 August
31 May
2023
2022
£
£
Allotted, issued and fully paid



100 (2022 -100) Ordinary shares of £1.00 each
100
100


Page 28

 


JT AGRO LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

21.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.


22.


Non-controlling interests

Non-controlling interest represents 25% minority interest in 60BC Limited. 


23.


Contingent liabilities

A Group guarantee has been given in favour of HSBC Bank by JT Agro Limited, Cropthetics Limited, Widecover Limited, Widecover Holdings Limited and J T Grosvenor Limited guaranteeing the obligations for each other to the bank.
Widecover Limited, Widecover Holdings Limited and J T Grosvenor Limited are related by virtue of common control.


24.


Related party transactions


31 August
31 May
2023
2022
£
£

Sales
941,955
6,680,479
Purchases
21,376,209
28,019,708
Amount due from related party
4,797,127
9,257,939
Amount due to related party
8,043,350
16,643,067

The above amounts relate to transactions and balances with Widecover Limited, Widecover Holdings Limited, J T Grosvenor Limited and Cropnosys (India) Pvt Limited, companies related by virtue of common control. 
All related party transactions were carried out under normal commercial terms.


25.


Controlling party

The controlling party is G Singh. 

 
Page 29