The financial reports that were revealed at the annual general meeting in Lautoka yesterday showed a $1.8m profit for 2012, $6.2m for 2013 and $6.9m for last year.
Executive chair Abdul Khan says the AGM was successful and they had received positive comments from shareholders.
“If you look at the positives for the company – the actual operating cost is coming down – that is positive – the efficiency gain is there in the form of TCTS, the profitability has been declared at $6.9m for the year 2014.”
Khan says one of the few concerns raised was the challenge of tackling world sugar price in future.
He says the company is in a better position now and the actual operating cost of FSC is coming down.
Abdul Khan says the financial statements for the past 3 years were not released as the report has commercially sensitive information.
He says the industry wasn’t in a good shape for the past 3 to 4 years and they withheld the financial reports to protect the shareholders from compromising their position.
Meanwhile three new directors were appointed to the FSC Board yesterday.
They are Joseph Rodan, Arvind Singh and Tevita Kuruvakadua.
Alipate Qetaki and Dijendra Singh have retired.- See more at: http://www.fbc.com.fj/fiji/29857/fsc-records-profits-for-past-3-years#sthash.o9dr6b8K.dpuf
THE Fiji Sugar Corporation's liabilities exceed its current assets by $225.4million, its 2014 annual report released at the company annual general meeting in Lautoka yesterday revealed.
Independent auditors BDO Chartered Accountants also reported that the corporation incurred losses during recent years.
"During the year ended May 31, 2014, the corporation incurred a loss (before reversal impairment loss) of $28m," the external auditor said.
The corporation, it said, was also not generating adequate cash flows to meet all its commitments and obligations as and when they fell due.
Last week, Parliament agreed to extend the Government guarantee on the company's $120m loan with ANZ Bank.
"As at May 31, 2014, total liabilities of the corporation exceed total assets resulting in net liabilities of $86.9m.
"The current liabilities exceed the current assets by $225.4m," the report stated.
It added that the corporation had significant debt repayment commitments amounting to $213.2m during the financial year ending May 31, 2014.
"Furthermore, the corporation may require funding to meet its working capital and capital expenditure requirements."
It stated that the above conditions and other matters of the financial statements indicated the existence of a material uncertainty that cast significant doubt about the corporations and the group's ability to continue as a going concern.
"The appropriateness of the going concern assumption on which the financial statements are prepared is critically dependent on the government's support to the corporation and the sugarcane industry, the restructuring of the corporation's debt and additional equity to enable the corporation to continue in operation for at least 12 months.
"The appropriateness of the going concern assumption is also dependent on improved quantity and quality of cane supply together with improvements in mill performance and other factors."
In his statement FSC executive chairman Abdul Khan said 2014 was a challenging one for the corporation with even lower world sugar prices and the convergence of the European Union prices towards the lower world prices. He said the company stayed steadfast in its strategy of continuous incremental improvements in its sugar manufacturing operations as it approached world best practice in terms of sugar extraction.
He said a major achievement for the company and the farmers was the record payment of sugarcane, which at $88.49 per tonne of sugarcane was the highest in the history of the industry.
The report said the company recorded a modest profit of $6.9million for the year - a slight increase from the previous year of $6.3million.
"This means that the company has been able to maintain its profitability over the last three years.
"The contributing factors to the retention of profitability over the last three years have been an increase in operating revenue from $199million to $224million. There was an increase in the cost of sales by $19.4million due mainly to the additional payout to the farmers. Source: Fiji Times