Company Registration No. 945345 (England and Wales)
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of scientific research on cocoa. The company continues to support the Mabang Megakarya Selection Programme (MMSP) at the Cocoa Research Institute of Ghana (CRIG).
The four year Consolidation Phase, which was co-funded by the company, Cocoa Research (UK) Ltd ,The Ghana Cocoa Board, The Government of the Kingdom of the Netherlands, Mars and Mondelez
International, was initiated in 2013 and was extended to 2018. Since the end of the Consolidation Phase, the Company and the Ghana Cocoa Board have continued to provide support for MMSP, whilst partners are sought for the next Phase of the programme. The Company continues to be involved in the technical and financial management of the programme.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R A Lass
Dr M.J End
Dr M Gilmour
A Lumor
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
R A Lass
Director
30 September 2020
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors are responsible for preparing the annual 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 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.
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
- 3 -
Opinion
We have audited the financial statements of Ghana Cocoa Growing Research Association Ltd (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 31 December 2019 and of its loss for the year 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.
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
Auditor's
responsibilities 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 UK, including the FRC’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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, 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 our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor’s 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 financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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 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.
Nicolena Lyon (Senior Statutory Auditor)
for and on behalf of Chartwells
30 September 2020
Chartered Accountants
Statutory Auditor
North Benfleet
Wickford
Essex
SS12 9JR
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
2019
2018
Notes
£
£
Turnover
-
25,589
Research expenditure
(235,465)
(54,143)
Administrative expenses
(3,049)
(3,408)
Operating loss
(238,514)
(31,962)
Interest receivable and similar income
31,450
30,769
Fair value gain/loss on investments
136,425
(84,885)
Loss before taxation
(70,639)
(86,078)
Taxation
-
-
Loss for the financial year
(70,639)
(86,078)
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 6 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investments
3
1,007,369
1,033,150
Current assets
Debtors
4
-
25,589
Cash at bank and in hand
93,797
102,402
93,797
127,991
Creditors: amounts falling due within one year
5
(54,146)
(43,482)
Net current assets
39,651
84,509
Total assets less current liabilities
1,047,020
1,117,659
Capital and reserves
Called up share capital
9
9
Profit and loss reserves
1,047,011
1,117,650
Total equity
1,047,020
1,117,659
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2020 and are signed on its behalf by:
R A Lass
Director
Company Registration No. 945345
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
1
Accounting policies
Company information
Ghana Cocoa Growing Research Association Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
North Benfleet, Wickford, Essex, SS12 9JR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
The turnover in 2018 consisted of a contribution from Mars towards the MMSP project paid via CRA Ltd. The contribution is recognised in the year that it is receivable.
1.3
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.5
Research Grant
The company is contributing to the MMSP project with the Cocoa Research Institute of Ghana.
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
-
-
3
Fixed asset investments
2019
2018
£
£
Investments
1,007,369
1,033,150
The investments are shown at market value at the balance sheet date.
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2019
1,033,150
Additions
36,908
Valuation changes
95,765
Disposals
(158,454)
At 31 December 2019
1,007,369
Carrying amount - Market value
At 31 December 2019
1,007,369
At 31 December 2018
1,033,150
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
-
25,589
GHANA COCOA GROWING RESEARCH ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Other creditors
54,146
43,482
6
Events after the reporting date
During 2019, GCGRA continued to financially support the non-permanent staff costs of the long standing MMSP cocoa breeding programme based at the Mabang Station of the Cocoa Research Institute of Ghana (or CRIG). We are very grateful to CRIG (a subsidiary of the Ghana Cocoa Board - the parastatal that manages all aspects of the cocoa industry of Ghana) as they continue to pay the cost of their permanent staff who work on the programme.
The level of COVID-19 infections in the rural areas of Ghana has , so far, been modest and the national lockdown was short lived. Fortunately, the fieldwork of the MMSP programme at Mabang has been able to continue effectively once appropriate social distancing measures had been implemented at, and around, the Mabang Station. Unfortunately, the proposed physical supervisory visits from senior research scientists have, of necessity, been postponed though electronic communications have been successfully enhanced.