Tayside Grain Company Limited - Limited company accounts 16.1

REGISTERED NUMBER: SC078924 (Scotland)

Report of the Directors and

Financial Statements for the Period 31 December 2014 to 31 December 2015

for

Tayside Grain Company Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Profit and Loss Account

4

Statement of Total Recognised Gains and Losses

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTORS:

N M W Aitken

M Paton

R J Aitken

G Anderson

SECRETARY:

Dr R M Aitken

REGISTERED OFFICE:

Errol Granaries

Errol

Perthshire

PH2 7TD

REGISTERED NUMBER:

SC078924 (Scotland)

AUDITORS:

Gibson McKerrell Brown LLP

Chartered Accountants and Statutory Auditors

14 Rutland Square

Edinburgh

Midlothian

EH1 2BD

The directors present their report with the financial statements of the company for the period 31 December 2014 to 31 December 2015.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of grain and agricultural merchants.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 December 2014 to the date of this

report.

N M W Aitken

M Paton

R J Aitken

G Anderson

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The 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

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have

taken as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Gibson McKerrell Brown LLP, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

N M W Aitken - Director

21 June 2016

We have audited the financial statements of Tayside Grain Company Limited for the period ended 31 December 2015

on pages four to eleven. The financial reporting framework that has been applied in their preparation is applicable law

and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 a Report of the Auditors 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances

and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates

made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Directors to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial statements

are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where 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

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Andrew Gibson CA (Senior Statutory Auditor)

for and on behalf of Gibson McKerrell Brown LLP

Chartered Accountants and Statutory Auditors

14 Rutland Square

Edinburgh

Midlothian

EH1 2BD

21 June 2016

TURNOVER

7,485,068

10,726,294

Cost of sales

7,064,177

10,173,764

GROSS PROFIT

420,891

552,530

Administrative expenses

365,643

357,742

OPERATING PROFIT

3

55,248

194,788

Interest receivable and similar income

2,160

1,360

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

57,408

196,148

Tax on profit on ordinary activities

4

15,508

46,322

PROFIT FOR THE FINANCIAL PERIOD

41,900

149,826

CONTINUING OPERATIONS

None of the company's activities were acquired or discontinued during the current period or previous period.

PROFIT FOR THE FINANCIAL PERIOD

41,900

149,826

Unrealised surplus on revaluation of properties

-

14,498

TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THE PERIOD

41,900

164,324

NOTE OF HISTORICAL COST PROFITS AND LOSSES

The difference between the results as disclosed in the profit and loss account and the results on an unmodified historical

cost basis is not material.

FIXED ASSETS

Tangible assets

5

686,690

706,006

CURRENT ASSETS

Stocks

6

2,710

7,053

Debtors

7

1,543,327

1,239,657

Cash at bank and in hand

44,746

91,183

1,590,783

1,337,893

CREDITORS

Amounts falling due within one year

8

539,098

345,357

NET CURRENT ASSETS

1,051,685

992,536

TOTAL ASSETS LESS CURRENT LIABILITIES

1,738,375

1,698,542

PROVISIONS FOR LIABILITIES

9

3,804

5,871

NET ASSETS

1,734,571

1,692,671

CAPITAL AND RESERVES

Called up share capital

10

500,000

500,000

Revaluation reserve

11

342,514

351,800

Profit and loss account

11

892,057

840,871

SHAREHOLDERS' FUNDS

15

1,734,571

1,692,671

The financial statements were approved by the Board of Directors on 21 June 2016 and were signed on its behalf by:

N M W Aitken - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention as modified by the revaluation

of certain fixed assets and financial instruments, in accordance with the Companies Act 2006 and applicable

accounting standards.

Financial reporting standard number 1

Exemption has been taken from preparing a cash flow statement on the grounds that the company qualifies as a

small company.

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 8 Related

Party Disclosures, not to disclose related party transactions with the parent company and other wholly owned

subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

30 years

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to the profit and loss account in the period to which they relate.

Profits and losses on grain futures

Grain futures contracts are valued at the market price ruling at the balance sheet date, resultant profits and

losses are taken to the profit and loss account.

2.	STAFF COSTS

Period

Period

31.12.14

1.1.14

to

to

31.12.15

30.12.14

£

£

Wages and salaries

183,456

173,066

Social security costs

16,960

19,111

Other pension costs

9,740

1,570

210,156

193,747

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

Period

Period

31.12.14

1.1.14

to

to

31.12.15

30.12.14

Admin

4

4

Manual work

1

1

Directors

4

4

9

9

3.	OPERATING PROFIT

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

Period

Period

31.12.14

1.1.14

to

to

31.12.15

30.12.14

£

£

Depreciation - owned assets

47,847

64,232

Loss/(profit) on disposal of fixed assets

1,159

(3,472

)

Auditors' remuneration

3,200

3,000

Other non- audit services

3,200

3,000

Directors' remuneration

58,726

52,288

4.

TAXATION

Analysis of the tax charge

The tax charge on the profit on ordinary activities for the period was as follows:

Period

Period

31.12.14

1.1.14

to

to

31.12.15

30.12.14

£

£

Current tax:

UK corporation tax

17,575

44,038

Deferred tax

(2,067

)

2,284

Tax on profit on ordinary activities

15,508

46,322

UK corporation tax has been charged at 20.25% (2014 - 21.20%).

Factors affecting the tax charge

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

Period

Period

31.12.14

1.1.14

to

to

31.12.15

30.12.14

£

£

Profit on ordinary activities before tax

57,408

196,148

Profit on ordinary activities

multiplied by the standard rate of corporation tax

in the UK of 20.250% (2014 - 21.200%)

11,625

41,583

Effects of:

Expenses not deductible for tax purposes

3,850

4,816

Capital allowances in excess of depreciation

-

(2,284

)

Depreciation in excess of capital allowances

1,797

-

Adjustments to tax charge in respect of previous periods

280

-

Effect of different rates of tax

23

(77

)

Current tax charge

17,575

44,038

5.	TANGIBLE FIXED ASSETS

Land and

Plant and

Motor

buildings

machinery

vehicles

Totals

£

£

£

£

COST OR VALUATION

At 31 December 2014

610,000

98,084

62,768

770,852

Additions

9,812

5,580

20,522

35,914

Disposals

-

(278

)

(17,500

)

(17,778

)

At 31 December 2015

619,812

103,386

65,790

788,988

DEPRECIATION

At 31 December 2014

-

39,981

24,865

64,846

Charge for period

19,153

15,934

12,760

47,847

Eliminated on disposal

-

(278

)

(10,117

)

(10,395

)

At 31 December 2015

19,153

55,637

27,508

102,298

NET BOOK VALUE

At 31 December 2015

600,659

47,749

38,282

686,690

At 30 December 2014

610,000

58,103

37,903

706,006

Cost or valuation at 31 December 2015 is represented by:

Land and

Plant and

Motor

buildings

machinery

vehicles

Totals

£

£

£

£

Valuation in 2014

610,000

-

-

610,000

Cost

9,812

103,386

65,790

178,988

619,812

103,386

65,790

788,988

If land and buildings had not been revalued they would have been included at the following historical cost:

31.12.15

30.12.14

£

£

Cost

654,321

644,509

Land and buildings were valued on an open market basis on 30 December 2014 by Deloitte Real Estate .

6.

STOCKS

31.12.15

30.12.14

£

£

Finished goods

2,710

7,053

7.

DEBTORS

31.12.15

30.12.14

£

£

Amounts falling due within one year:

Trade debtors

393,595

90,755

VAT

-

9,652

Prepayments and accrued income

5,125

111,634

398,720

212,041

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,144,607

1,027,616

Aggregate amounts

1,543,327

1,239,657

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.15

30.12.14

£

£

Trade creditors

450,728

195,483

Corporation tax

17,295

44,037

Social security and other taxes

4,432

4,269

VAT

28,995

-

Accruals and deferred income

37,648

101,568

539,098

345,357

9.	PROVISIONS FOR LIABILITIES

31.12.15

30.12.14

£

£

Deferred tax

Accelerated capital allowances

3,804

5,871

Deferred

tax

£

Balance at 31 December 2014

5,871

Credit to Profit and Loss Account during period

(2,067

)

Balance at 31 December 2015

3,804

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.15

30.12.14

value:

£

£

500,000

Ordinary

£1

500,000

500,000

11.

RESERVES

Profit

and loss

Revaluation

account

reserve

Totals

£

£

£

At 31 December 2014

840,871

351,800

1,192,671

Profit for the period

41,900

41,900

Transferred to P&L reserve

9,286

(9,286

)

-

At 31 December 2015

892,057

342,514

1,234,571

12.	PENSION COMMITMENTS

The company was committed to continue funding the pension scheme administered by Scottish Widows.

13.	CONTINGENT LIABILITIES

Macquarie Bank Ltd hold a bond and floating charge over the assets of the company in respect of the group's

banking facilities.

A standard security over the heritable property of the Company is held by the Clydesdale Bank plc in respect of

loans to the parent company, Alexander Inglis & Son Limited.

14.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company is Alexander Inglis & Son Limited, a company registered in

Scotland. Copies of these financial statements are available from Companies House, 4th Floor Edinburgh Quay

2, 139 Fountainbridge, Edinburgh, EH3 9FF.

The ultimate parent company, Alexander Inglis & Son Limited, was controlled by the chairman, Mr J. Aitken, and

his sons, N. & R. Aitken.

15.	RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

31.12.15

30.12.14

£

£

Profit for the financial period

41,900

149,826

Other recognised gains and losses relating to the period (net)

-

14,498

Net addition to shareholders' funds

41,900

164,324

Opening shareholders' funds

1,692,671

1,528,347

Closing shareholders' funds

1,734,571

1,692,671