Tayside Grain Company Limited - Limited company accounts 16.3

REGISTERED NUMBER: SC078924 (Scotland)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2016

for

Tayside Grain Company Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

4

Other Comprehensive Income

5

Statement of Financial Position

6

Statement of Changes in Equity

7

Statement of Cash Flows

8

Notes to the Statement of Cash Flows

9

Notes to the Financial Statements

10

Reconciliation of Equity

17

Reconciliation of Profit

19

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 year ended 31 December 2016.

PRINCIPAL ACTIVITY

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2016 will be £ 630,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 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), 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 and then apply them consistently;

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

-	state whether applicable 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

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.

ON BEHALF OF THE BOARD:

N M W Aitken - Director

31 August 2017

We have audited the financial statements of Tayside Grain Company Limited for the year ended 31 December 2016 on

pages four to nineteen. 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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 2016 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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, based on the work undertaken in the course of our audit, 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, and has been prepared in accordance with applicable legal requirements. In the light of the knowledge and

understanding of the company and its environment, we have not identified any material misstatements in the Report of

the Directors.

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.

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

31 August 2017

TURNOVER

6,954,282

7,485,068

Cost of sales

6,570,016

7,064,177

GROSS PROFIT

384,266

420,891

Administrative expenses

332,222

365,643

OPERATING PROFIT

4

52,044

55,248

Interest receivable and similar income

826

2,160

PROFIT BEFORE TAXATION

52,870

57,408

Tax on profit

5

5,499

15,508

PROFIT FOR THE FINANCIAL YEAR

47,371

41,900

PROFIT FOR THE YEAR

47,371

41,900

OTHER COMPREHENSIVE INCOME

Revaluation of property

138,213

1,857

Deferred tax on revaluation

49,680

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

187,893

1,857

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

235,264

43,757

FIXED ASSETS

Tangible assets

7

1,651,198

686,690

CURRENT ASSETS

Stocks

8

1,600

2,710

Debtors

9

483,538

1,543,327

Cash at bank and in hand

147,453

44,746

632,591

1,590,783

CREDITORS

Amounts falling due within one year

10

967,036

539,098

NET CURRENT (LIABILITIES)/ASSETS

(334,445

)

1,051,685

TOTAL ASSETS LESS CURRENT LIABILITIES

1,316,753

1,738,375

PROVISIONS FOR LIABILITIES

11

45,421

72,307

NET ASSETS

1,271,332

1,666,068

CAPITAL AND RESERVES

Called up share capital

12

500,000

500,000

Retained earnings

13

771,332

1,166,068

SHAREHOLDERS' FUNDS

1,271,332

1,666,068

The financial statements were approved by the Board of Directors on 31 August 2017 and were signed on its behalf by:

N M W Aitken - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 31 December 2014

500,000

1,122,311

1,622,311

Changes in equity

Total comprehensive income

-

43,757

43,757

Balance at 31 December 2015

500,000

1,166,068

1,666,068

Changes in equity

Dividends

-

(630,000

)

(630,000

)

Total comprehensive income

-

235,264

235,264

Balance at 31 December 2016

500,000

771,332

1,271,332

Cash flows from operating activities

Cash generated from operations

1

17,789

142,401

Tax paid

(17,295

)

(44,317

)

Net cash from operating activities

494

98,084

Cash flows from investing activities

Purchase of tangible fixed assets

(851,080

)

(35,914

)

Sale of tangible fixed assets

5,000

6,224

Interest received

826

2,160

Net cash from investing activities

(845,254

)

(27,530

)

Cash flows from financing activities

Loans with group undertakings in year

1,577,467

(116,991

)

Equity dividends paid

(630,000

)

-

Net cash from financing activities

947,467

(116,991

)

Increase/(decrease) in cash and cash equivalents

102,707

(46,437

)

Cash and cash equivalents at beginning of year

2

44,746

91,183

Cash and cash equivalents at end of year

2

147,453

44,746

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Profit before taxation

52,870

57,408

Depreciation charges

17,065

47,847

Loss on disposal of fixed assets

2,720

1,159

Finance income

(826

)

(2,160

)

71,829

104,254

Decrease in stocks

1,110

4,343

Increase in trade and other debtors

(67,523

)

(186,679

)

Increase in trade and other creditors

12,373

220,483

Cash generated from operations

17,789

142,401

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect

of these Statement of Financial Position amounts:

Year ended 31 December 2016

31.12.16

1.1.16

£

£

Cash and cash equivalents

147,453

44,746

Period ended 31 December 2015

31.12.15

31.12.14

£

£

Cash and cash equivalents

44,746

91,183

1.	STATUTORY INFORMATION

Tayside Grain Company Limited is a private company, limited by shares , registered in Scotland. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Tangible fixed assets are initially measured at cost. Cost includes the original purchase price and costs directly

attributable to bringing the asset to its present location and into its present condition. After initial recognition,

tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment

losses.

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

or, if held under finance lease, over the lease term, whichever is shorter. Land is not depreciated.

Land and buildings

- nil to over 30 years

Plant and machinery

- 25% on reducing balance

Motor vehicles

- 25% on reducing balance

Depreciation and impairment losses are charged to the Statement of Comprehensive Income within

administrative expenses.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

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 payables, loans from banks and other third

parties.

At the end of each reporting period, financial assets that are measured at cost are assessed for objective

evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the

Income Statement. If there is a decrease in the impairment loss arising from an event occurring after the

impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount

does not exceed what the carrying amount would have been had the impairment not previously been

recognised. The impairment reversal is recognised in the Income Statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows arising from the asset expire

or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to

another party, or (c) control of the asset has been transferred to another party.

Financial liabilities are measured at amortised cost less any accumulated impairment losses. Financial liabilities

are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,

cancelled or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax

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

statement of financial position 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme for its employees. A defined contribution plan is a

pension plan under which the company pays fixed contributions into a separate entity.

Contributions payable to the company's pension scheme are charged to the Income Statement on the period to

which they relate. Once the contributions have been paid the company has no further payment obligations.

3.	EMPLOYEES AND DIRECTORS

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Wages and salaries

195,852

186,275

Social security costs

17,481

16,960

Other pension costs

9,605

6,921

222,938

210,156

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

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

Admin

3

4

Manual work

1

1

Directors

4

4

8

9

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Directors' remuneration

55,244

58,726

Directors' pension contributions to money purchase schemes

5,150

2,917

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Depreciation - owned assets

17,065

47,847

Loss on disposal of fixed assets

2,720

1,159

Auditors' remuneration

3,387

3,200

Other non- audit services

3,388

3,200

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Current tax:

UK corporation tax

(17,295

)

17,575

Deferred tax

22,794

(2,067

)

Tax on profit

5,499

15,508

UK corporation tax has been charged at 20% (2015 - 20.25%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Profit before tax

52,870

57,408

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.250%)

10,574

11,625

Effects of:

Depreciation in excess of capital allowances

166

3,666

Utilisation of tax losses

12,054

-

Adjustments to tax charge in respect of previous periods

(17,295

)

-

Effect of different rates of tax

-

217

Total tax charge

5,499

15,508

Tax effects relating to effects of other comprehensive income

31.12.16

Gross

Tax

Net

£

£

£

Revaluation of property

138,213

-

138,213

Deferred tax on revaluation

49,680

-

49,680

187,893

-

187,893

31.12.14 to 31.12.15

Gross

Tax

Net

£

£

£

Deferred tax on revaluation

1,857

-

1,857

1,857

-

1,857

6.

DIVIDENDS

Period

31.12.14

Year Ended

to

31.12.16

31.12.15

£

£

Interim

630,000

-

7.	TANGIBLE FIXED ASSETS

Land and

Plant and

Motor

buildings

machinery

vehicles

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2016

619,812

103,386

65,790

788,988

Additions

829,308

2,552

19,220

851,080

Disposals

-

-

(18,300

)

(18,300

)

Revaluations

94,312

-

-

94,312

Transfers

56,568

(56,568

)

-

-

At 31 December 2016

1,600,000

49,370

66,710

1,716,080

DEPRECIATION

At 1 January 2016

19,153

55,637

27,508

102,298

Charge for year

-

4,620

12,445

17,065

Eliminated on disposal

-

-

(10,580

)

(10,580

)

Eliminated on revaluation

(43,901

)

-

-

(43,901

)

Transfers

24,748

(24,748

)

-

-

At 31 December 2016

-

35,509

29,373

64,882

NET BOOK VALUE

At 31 December 2016

1,600,000

13,861

37,337

1,651,198

At 31 December 2015

600,659

47,749

38,282

686,690

Cost or valuation at 31 December 2016 is represented by:

Land and

Plant and

Motor

buildings

machinery

vehicles

Totals

£

£

£

£

Valuation in 2016

1,600,000

-

-

1,600,000

Cost

-

49,370

66,710

116,080

1,600,000

49,370

66,710

1,716,080

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

31.12.16

31.12.15

£

£

Cost

1,540,197

654,321

Land and buildings were valued on an open market basis on 22 November 2016 by Savills (UK) Limited, MRICS.

.

8.

STOCKS

31.12.16

31.12.15

£

£

Finished goods

1,600

2,710

9.

DEBTORS

31.12.16

31.12.15

£

£

Amounts falling due within one year:

Trade debtors

465,680

393,595

Tax

17,295

-

Prepayments and accrued income

563

5,125

483,538

398,720