Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697813879764.pdf (Fiji)
9 1 0 2 T R O P E R L A U N N A i 1 Our Organisation Th e Fiji Sugar Corporation Limited was incorporated in Fiji by an Act of Parliament in 1972 to take over the milling activities with eff ect from 1st April 1973.

It is successor to SPSM Limited and CSR Limited.

In 2006, the Fiji Sugar Corporation Act was repealed allowing the Corpoartion to be governed solely under the Companies Act.
Our Shareholders Th e Government of Fiji is a major shareholder which owns 68% of shares while statutory bodies, local companies and individuals own the rest of the shares.

Our Business Th e Corporation owns and operates three sugar mills located at Lautoka, Ba and Labasa.

Th e mills are strategically located on the drier side of the two main islands where conditions are more suited to growing cane.
Th e Corporation is responsible for the manufacture and sale of raw sugar together with molasses as a by-product.

Th e Corporation owns and maintains a railway network which transports sugarcane to the mills.

Th e Corporation is one of the largest sector employers with a workforce of around 2000 individuals during the peak crushing season.
Th e Sugar Industry is important to Fiji’s economy as it contributes about 1.2% of GDP, generated about 4.3% of total exports in 2018 based on the provisional data from the Reserve Bank of Fiji.

Unlike many other export oriented businesses, most production inputs are domestic and have a high regional impact and cross-sectoral linkages.

N O I T A R O P R O C R A G U S I J I F i 2 Financial Results • Corporation’s share of proceeds was $38.8 million compared to $54.2 million in the previous year.
• Consolidated trading loss was $23.1 million, compared to a profi t of $0.8 million in the previous year.

• Loss from operations was $62.7 million, compared to $10.3 million in the previous year.

• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was negative $49.1 million compared to positive $0.5 million in the previous year.

• Operating loss for the year was $80.1 million, compared to a loss of $24.6 million in the previous year.
• A total of $26.7 million was invested in Property Plant and Equipment, compared to $13.3 million in the previous year.

Operations • A total of 1.70 million tonnes of sugarcane was crushed from an area of 37,105 hectares compared to 1.63 million tonnes from 38,040 hectares in the previous year.

• Sugar production was 160,204 tonnes compared to 180,388 tonnes in the previous year.

• Tonnes Cane to Tonnes Sugar (TCTS) ratio was 10.6 compared to 9.0 in the previous year.
• Cane Quality (POCS) was 10.6 compared to 11.5 in the previous season.

• Th e total sugar exported was 111,844 tonnes compared to 144,398 tonnes in the previous year.
9 1 0 2 T R O P E R L A U N N A i 3 Sales and Profi t ($’000) Total sales Trading profi t/(loss) Unrealised exchange gain/(loss) Allowance for impairment loss on CWIP Loss due to fl ooding Operating Profi t/(loss) for the year Cash Flow ($’000) Operating activities Investing activities Financing activities Net increase/(decrease) in cash Financial Position ($’000) Working capital Current assets Total assets Non-current liabilities Current liabilities Shareholders’ equity Additional Information 2019 2018 132,776 (23,116) (3,492) - (1,031) (80,070) (56,215) 4,707 49,534 (1,974) (165,426) 44,361 203,943 315,999 209,787 (321,843) 182,113 844 (1,679) (5,009) (1,030) (24,626) (6,153) (14,231) (2,186) (22,570) (76,803) 46,449 204,084 322,605 123,252 (241,773) Ratio of current assets to current liabilities Ratio of debt to shareholders’ equity 0.2 (1.63) 0.4 (1.84) N O I T A R O P R O C R A G U S I J I F i 4 FSC views corporate governance in widest sense, almost like a trusteeship; it is a philosophy to be professed, a value to be imbibed and an ideology to be ingrained in our corporate culture.
Corporate governance goes much beyond mere compliance; it is not a simple matter of creating checks and balances.

It is in fact a continuous process of realizing the Corporation’s objectives with a view to make of every opportunity.

It involves leveraging its resources and aligning its activities to consumer need, shareholder benefi t and employee growth.

Th ereby the Corporation succeeds in delighting its stakeholders whilst minimizing risks.
Th e primary objective is to create and adhere to a corporate culture of conscientiousness and consciousness, transparency and openness.

Th e Corporation aims to develop capabilities and identify opportunities that serve goals of value creation, thereby creating an outstanding organization.

BOARD RESPONSIBILITIES Th e Board remains committed to upholding the highest standards of integrity and transparency in its governance of the Corporation.
Th e importance and the value of a balanced interplay between management, board and shareholders within the company remain a major principle governing the conduct of the Corporation.

Th e Corporation aims to be at the forefront of internationally recognized best governance practice.

Th e Corporation complies in all material respects with the generally accepted governance principles.
Corporate governance, as a dynamic interplay of forces, has its own sets of challenges and continues to evolve, especially in a small country like Fiji.

Central to the Corporation’s sound governance practices is the management of relationships and interests of its stakeholders.

Th e Corporation embraces these challenges through its strategy, people, teamwork, leadership, experience and skills, relationships and proper identifi cation and control of business risk.
In doing so, the Board is required to determine sound management information and reporting system to the shareholders.

Th e Board supports a strong disclosure regime acknowledging transparency as a key element of an eff ective corporate governance system.
Th is includes timely and accurate information to be disclosed on matters such as the Corporation’s fi nancial and operating results, its objectives, major share ownership and voting rights, remuneration for directors and material foreseeable risk factors.

In addition to disclosure on commercial objectives, the Board encourages disclosure of policies relating to the environment and the communities in which the Corporation operates.
Th e Board meets regularly and receives full information in advance to help it discharge its duties.

A Director’s Package comprising pertinent background information and critical information on major risks, global industry trends and future direction of the Corporation is made available to all new directors.

Th e Board also supports the policies, principles and standards set out in the Companies Act, the accountancy profession and relevant statutory reporting requirements.
While these do not determine the detailed course of conduct by directors, they support the need for the highest standards of behavior and accountability.

COMPOSITION OF THE BOARD Th e Board aims to bring people of the right caliber with a wide and diverse range of business experience and expertise.

Th ere are eight directors on the Board, appointed by the shareholders.

Board representation also includes key stakeholders.
9 1 0 2 T R O P E R L A U N N A i 5 ROLE OF SHAREHOLDERS Th e Board ensures that shareholders are fully informed of all major developments aff ecting the Corporation’s business.

Information is communicated to shareholders in the Annual Report, special reports and forum.

Th e Board encourages full participation of shareholders to ensure a high level of accountability in determination of the Corporation’s direction, strategies and goals.
MANAGEMENT RESPONSIBILITY Th e information presented in this report is prepared by the Corporation’s Management which maintains systems of internal accounting controls, policies and procedures to provide reasonable assurance as to the reliability of the fi nancial records and the safeguarding of its assets.

Management regularly seeks independent assessment and reviews of its internal accounting controls, policies and procedures.
BOARD COMMITTEES Th e Board appoints board subcommittees to undertake specifi c functions as required under internationally accepted governance practices and on the needs of the Corporation.

Each Board Committee operates under a Charter.


Th e Finance & Audit Committee, which is a signifi cant committee of the Board reviews the fi nancial reporting process, the system of internal control and management of fi nancial risks, the audit process and the company’s process for monitoring compliance with the laws and regulations.

Th e members of the Finance & Audit Committee are Mr. Pradeep Lal (Chairman), Mr. Viliame Gucake and Mr. Tevita Kuruvakadua.
Th e Remuneration & Nomination Committee is tasked with assisting the Board discharge its responsibilities by providing an oversight of the Human Resource strategy of the Company including organization structure, remuneration policies, performance management, succession planning and development and monitoring all matters relating to terms and conditions of employment of staff and staff remuneration.

Its members are Mr. Ariff Ali (Chairman), Mr. Vishnu Mohan and Mr. Hari Raniga.
Th e Governance & Risk Committee has been set up to assist the Board discharge its responsibilities through oversight of the enterprise risk management, control and compliance framework established by the Board and management, formulation and review of the company’s policies and insurance, formulation and review of the governance policies, framework and compliance of the Company, development and monitoring of codes of conduct and any reported breaches of the code of conduct.
Its members are Mr. Hari Raniga (Chairman), Mr. Viliame Gucake and Mr. Vishnu Mohan.

N O I T A R O P R O C R A G U S I J I F i 6 VISHNU MOHAN Chairman Appointed as Chairman of the Board in July 2016.

Mr Mohan is a career Banker and the former Australia and New Zealand (ANZ) Banking Group Chief Executive Offi cer (CEO) for the Pacifi c and Fiji.

He is also the Chairman of Fiji’s Public Service Commission.

VILIAME GUCAKE Appointed to the Board on 26 November 2008.
Mr Gucake was previously the Director Sugar at the Ministry of Sugar Industry, until 30 June 2017.

Now retired.

RATU WILIAME KATONIVERE Appointed to the Board on 27 May 2015.

Ratu Wiliame is a former Civil Servant.

He is now a businessman and a Director of Fiji Pine Limited and Airports Fiji Limited.

TEVITA KURUVAKADUA Appointed to the Board on 27 May 2015.

A career Accountant, Mr Kuruvakadua is the General Manager for the iTaukei Land Trust Board.

HARI RANIGA Appointed to the Board in January 2017.
Mr Raniga is the Director of famous sweets company out of Ba, Maganlal Jiwa and Sons.

ARVIND SINGH Appointed to the Board on 27 May 2015.

Mr Singh is a businessman and sugar cane farmer.

PRADEEP LAL Appointed to the Board in November 2016.

Mr Lal is the Regional Chief Executive Offi cer for Vodafone and a Chartered Accountant by profession.

ARIFF ALI Appointed to the Board in January 2017.

An Economist by profession, Mr Ali is the Governor of the Reserve Bank of Fiji.
9 1 0 2 T R O P E R L A U N N A i 7 GRAHAM CLARK Chief Executive Offi cer MANOJ RAM Chief Financial Offi cer/ Company Secretary KAMELI BATIWETI General Manager Corporate services N O I T A R O P R O C R A G U S I J I F i 8 SACHIN DEO Head Of Business Intergration In the fi nancial year ended 31st May 2019, Fiji Sugar Corporation (FSC) faced some unexpected challenges.
Firstly, it was the oversupply in the global sugar market caused mainly by India’s record output followed by heavy stockpiling thus suppressing the price of sugar in the global markets.

I am sure most of you are aware of the recent World Trade Organization (WTO) appointment of an independent panel to look into the Government’s pricing policies, which the other major sugar producing countries such as Brazil, Australia and Guatemala allege are in violation of global trade rules.
Additionally, they are also alleging that India provides trade-distorting production subsidies to the sugar industry which not only is impacting global supply but notably also the global prices.

WTO involvement now to address the issue therefore is a welcome development.

Fiji can only benefi t from this exercise if the WTO rules against what is considered India’s unreasonable Government minimum guaranteed prices and subsidy programs.

Secondly our own natural disasters and varying weather conditions.
Our sugar cane crop was negatively impacted by the damage brought about by the two successive tropical cyclones Josie and Keni in April 2018 which signifi cantly impacted the sugar cane quality, thus resulting in lower sugar output for the year.

Th is situation was further exasperated by reduced mill effi ciency especially the old boiler at the Rarawai Mill.

If you recall the Rarawai mill was totally submerged in water when the Ba river burst its banks following the cyclones and the related fl oods.
I have said before that our age-old mills are always a cause for concern and considerable time and eff orts are spent not only in keeping them in good working conditions but also in making sure that the sugar extraction is maintained to the maximum.

Th e Board in November 2018 approved a capital budget of FJD 30 million for major equipment upgrades and refurbishment at all three mills.

In the ensuing period Rarawai Mill completed a project whereby the boiler was refurbished at a cost of FJD9.3 million.
Th e Mill’s 5 Mega Watt Generator was also repaired, thereby opening the opportunity for Rarawai to export power to the grid.

Th e boiler refurbishment work was carried by the Indian engineering fi rm Avant Guarde who were awarded the contract following an open tender process that elicited a lot of interests.

Lautoka mill received an upgrade in controls and instrumentation to improve effi ciency.
Lautoka’ s 12 Mega Watt Generator was also refurbished enabling the Mill to start exporting power to the grid in 2019.

Th e total cost of these upgrades was FJD6.25 million.

Similar upgrades were carried out at the Labasa Mill where the mill’s shredder was re-installed.

Th e total capital spend in Labasa was FJD7.96 million.

Mechanization and consolidation of the transport fl eet is a part FSC’s ongoing management agenda.
At the time of writing, the industry had 71 mechanical 9 1 0 2 T R O P E R L A U N N A i 9 harvesters operating across the country.

FSC also took delivery of the fi rst set of 11 Isuzu six-wheeler trucks in June 2019.

Th e FSC haulage fl eet will comprise 117 6-wheeler trucks.

Th e total investment in these trucks is FJD 15.55 million of which FJD 5.9 million will be borne by the Government.
We are expecting theses trucks to be actively deployed during the 2019 harvesting season and to be used in distributing fertilizers and weedicides during the off season.

I am pleased to say that all the trucks are compliant with the new Land Transport Authority Weight and Loading Guidelines.
While we are obviously disappointed with the output for the fi nancial year under review we are however very encouraged by FSC’s -performance thus far this year and are quietly confi dent that the negative impact of the past year will have been signifi cantly reversed when the current fi nancial year’s performance is announced.

Cane production close to 2.0 million tonnes and a sugar output in excess of 200 tonnes are envisaged for the current year.
Meanwhile I do want to emphasize that the Board is actively addressing the impact of past legacy issues especially the Indian EXIM Bank loan and how the loan proceeds were grossly mis managed.

Th e value destruction to the business has been signifi cant while servicing of the loan remains a drain on FSC’s cash fl ow.
Th e current Board and Management which have inherited this legacy issue are actively working on a balance sheet restructuring programme including debt/equity conversion and capital optimization, details of which will be revealed at the appropriate time.

Th e Government of Fiji as the major shareholder of FSC is actively involved in these discussions.
On behalf of the Board, I take this opportunity to thank our stakeholders for their patience and support while also appreciating the immense dedication and commitment of our staff .

It is no secret that the challenges at FSC are multi fold, but the Board and Management are increasingly determined to steer FSC on a viable footing for the future, noting the importance of the sugar industry for Fiji’s continuing economic prosperity.

In concluding, I want to thank the Hon.


Prime Minister and the Government of Fiji for their confi dence in the Board of FSC and their ongoing fi nancial and moral support to the Sugar Industry.
................................................... ...................................... ....... ........................................................................................................................................... ................................... ...................... Vishnu Mohan Vishnu Mohan Chairman Ch i N O I T A R O P R O C R A G U S I J I F i 10 “I fi rmly believe in obtaining results, and will do my utmost to combine resolute leadership with sound Corporate Governance to meet the quantitative targets agreed with our stakeholders and our Board of directors”.
CANE PRODUCTION In the year ended May 31, 2019, FSC was aff ected negatively by the damage caused by Tropical Cyclones Josie and Keni.

Th is led to consequences for our cane development resulting in a crop harvest of 1,697,370 tonnes against a pre-crush estimate of 1,863,700 tonnes.

Another attributing factor towards the decline in harvest was the substantial drop in total area harvested which stood at 37105 ha, a decrease of 1875 ha from 2017 actual area harvested.
However, despite the uncontrollable setback, the Agricultural Service Division accomplished a planting target of 5078 ha, during the year.

Th e bulk of the cane planting activities took place in the period September to December, recording 65% of 2018 actual planting.

Figure 1.0 Graph of 5 years actual planting against annual production Th e Corporation recorded a 9% improvement in crop yield in 2018, which amounted to 46 tonnes cane per hectare.
Th e increase was as a result of concerted eff orts by growers’ in improving their fertilizer ratios, specifi cally the NPK ratio of 25%, 21% and 23% respectively.

Growers continued to take good advantage of the Government subsidy on fertilizers.

9 1 0 2 T R O P E R L A U N N A i 11 A total of 24,830 tonnes of Blended Fertilizer was delivered by South Pacifi c Fertilizers.
An improvement in the weedicide application was clearly evident for the three major types, being Diuron, Glyphosate and Amine where improvements were 82%, 134% and 78% respectively as compared to 2017.

Th rough consolidated eff orts to enhance crop yield in Plant and Ratoon cane, the government funded Cane Planting Grant was deployed in all cane areas to assist cane farmers re plant fi elds and improve cane yields.
HARVESTING AND TRANSPORTATION Th e Fiji Sugar Industry has been able to address critical questions about productive, profi table and sustainable sugarcane growing and milling.
A notable example was the introduction of Mechanical Harvesters in our bid to improve harvesting effi ciencies through a collaborative approach, and looking at innovations in technology MECHANICAL HARVESTING Harvesting Progress by Mechanical Harvesters Mechanical Harvesters greatly aided the growers and the Corporation by improving harvesting effi ciencies and this was through the introduction of 7 new Mechanical Harvesters in the year under review.
Summary of the Mechanically Harvested Cane for 2018 Season Mechanically Harvested Cane contributed to around 29.23% of total cane harvested during the season.

Lautoka/ Rarawai Mill crushed a total of 1,076,966 tonnes of which 280,329 tonnes was harvested by Mechanical Harvesters, constituting 26.02% of total cane harvested.

Labasa Mill crushed 620,330 tonnes of cane with 215,551 tonnes being supplied by mechanical harvesters, representing 34.7 % of cane crushed.
Mechanical Harvester Trend (2015-2018) N O I T A R O P R O C R A G U S I J I F i 12 In 2019 the total number of mechanical harvesters increased further to 71 machines capable of harvesting nearly 40% of the expected cane crop.

Harvesting Summary FACTORY OPERATIONS Th e start of the season was impacted by the damage caused by Tropical Cyclone Josie in early April and whilst the Industry was still recovering from the aft ermath the damage was further compounded by TC Keni on the 10th of April.
Th ere was severe fl ooding at both the Rarawai and Labasa Mills, aff ecting maintenance of plant and equipment.

Rarawai Mill was the most unfortunate with fl ood waters entering the factory on both occasions.

Close to 5-6 weeks was spent on cleaning and repeating maintenance work at Rarawai.

2018 Key Operating Data for the Mills Th e 2018 crushing season commenced in June with Labasa Mill starting operations on 19th June, Lautoka on 3rd July and Rarawai on 17th July.
Th e 2018 crushing season concluded in December, with Labasa Mill closing down on 17th December, Lautoka Mill on 12th December and Rarawai fi nishing on 24th December.

Th e fl oods on the fl at lands of the Western Division that followed the natural disasters stalled sugar cane growth and maturity trends – this directly impacted cane quality received at the factories.

Poor husbandry coupled with the infl ux of weeds and debris brought by the Tropical Cyclones gave rise to indiscriminate burning of cane.
High volumes of burnt cane led to a decline in quality of sugar cane being processed, thus negatively infl uencing our sugar recovery eff orts for the year.
9 1 0 2 T R O P E R L A U N N A i 13 N O I T A R O P R O C R A G U S I J I F i 14 Technical Capacity Building In our eff orts to bridge competency gaps in the Mills and reinforce capacity building, several strategies were employed to ensure the development of the right skillsets for the future; a) Engineers in Training (EIT’s) Considering the exodus of engineers leaving for greener pastures, there was a seemingly huge competency gap created in the engineering ranks.
And with current changes in the engineering/technological arena, it became prudent to attract Engineering Graduates with aptitude on analytical and technical skills.

As such, we on-boarded 4 EIT’s in the latter part of 2018 who will undergo a rigorous training program which would involve structured on-the-job training and a well outlined mentoring program.

Two EIT’s were deployed to Labasa and two were engaged in Lautoka.
b) Apprenticeship Aft er a lapse of years, the Apprenticeship Scheme was revived to mitigate the loss of Trade skills.

A total of 35 apprentices were draft ed across the 3 Mills in 7 trade disciplines.

c) Trainee Tradesman Th e Trainee Tradesman Scheme was instituted to allow the Corporation to recruit and fast track individuals to full tradesman status.

Th is scheme involved recruiting individuals with Trade Qualifi cation and at least 1-3 years’ industry experience.
Upon completing their traineeship with FSC which could range from 6 months to a year depending on their performance, they were absorbed as tradesman with the Corporation.

Performance Management To make our employees more accountable for their actions and manage their own performance, a new Performance Management Framework, was rolled out for the Field Division in the three mill areas.

Th e framework was to: • Provide clarity on expectations.
• Enable better quality conversations with the team and People Leader.

• Enable growth and development.

• Help the individual to be the best they can be.

Performance Plans have been fi nalized, together with Individual Development Plans.

Induction A companywide Induction programme was rolled out to embed the strategic vision of FSC in our employees, which included all existing staff working in the Maintenance Season.
Th e learning outcomes of the workshop were; • Understand the vision and strategy and how each individual contributes to this through their role.

• Put the values into action – everyday.

• Abide by the FSC Code of Conduct.

• Appreciate the HR and OHS Policies and Procedures.

Training & Development Based on a Training Needs Analysis, several training solutions were developed and rolled out targeting improvements in the knowledge/skills of our employees.
Th ere was a particular emphasis on Management Development & Field Training.

9 1 0 2 T R O P E R L A U N N A i 15 ITEC Funded VSI Workshops Twenty of our employees attended two workshops at Vasantdada Sugar Institute, Pune, India from January 15th.
Th e two programmes were; • Certifi cate in Sugar Cane Development • Certifi cate in Sugar Boiling HEALTH & SAFETY Th e FSC Safety team focused on addressing the most important priorities, which were: Safety Culture • Th ere was an increase in Safety Training, such as Behavioral Safety, Risk Assessments & OHS Inductions.

• Th e Health & Safety Policy has been revised to now include commitment to Health & Wellbeing.
• Th e 2018/2019 OHS Celebrations were held in all three Mills, including a Talanoa Session with the Chief Executive Offi cer at each Mill.

• Occupational Health & Safety Committee Meetings were held on a monthly basis.

Safety Risk Management In April 2018, the Health & Safety Team initiated two new programs, “Hazard ID and Safe moves check” during our World OHS day Celebration.
Th e program details require Employees to identifying a hazard, or an unsafe situation or unsafe condition using a Hazard ID or the safe moves check document.

At the end of every quarter, prizes were awarded for best performance.

Th e idea behind this initiative was to get everyone to: • participate in identifying hazards, understand what hazards and risks mean.
• determine risky workplace conditions, ascertain whether they are performing their task safely, take ownership and responsibility in identifying and controlling hazards.

• participate in creating a safe working environment for all.

Th is resulted in improved reporting in 2018 with a total of 337 hazards and unsafe moves recorded compared to only 24 hazards reported in 2017.
Safety Compliance • Engaged the Ministry of Employment to conduct Noise and Dust monitoring to determine and standardize appropriate Protective Equipment where necessary.

• Change in Fit for Purpose personal safety wear is the focus this year as part of continuous improvement processes.

• A work protocol now required for the issuance of Work Permits before any work commences.

Incident & Injury Data Th ere have been 52 loss time injuries and 41 First Aid injuries in total in 2018.
31% was due to slip, trip and fall, and this indicated a great need to start behavioural safety training where employees are informed on ways of making safe decisions.

N O I T A R O P R O C R A G U S I J I F i 16 MARKETING World Market Price Trend Th e world sugar market remains heavily oversupplied which has caused volatility in sugar pricing.
Th e increasing production of sugar in India and Brazil and over supply in the world market caused a global sugar surplus, resulting in depressing world sugar prices which remained in a range between 11.50 and 13.50 US cents per round.

Th is is shown below: Bulk Raw Sugar Export A total of 111,844 metric tons of bulk raw sugar was exported during the year.
Th is was made to the following destinations: Direct Consumption Raw Sugar Sales to the Domestic Market and Pacifi c Island Countries Sugar sales to domestic and Pacifi c Island Countries has seen a positive trend as compared to past year.

FSC sold 27,560MT and 4,300MT of sugar to domestic markets and Pacifi c Island Countries respectively.

With the establishment of a new Sales and Marketing team, FSC visited several countries in the Pacifi c Region.
Good demand resulted from Solomon Islands and Samoa and the team continues to market and meet potential buyers.

Molasses Exports Th e fi nancial year saw 4 shipments of bulk molasses exported to the Caribbean and Asia with a total volume of 85,560MT.

Th e balance of the 2018 crop molasses will be shipped at the beginning of 2019 Crushing season.

A small amount of 54 metric tons of molasses was shipped to buyers in the PIC’s.
Domestic Molasses Sales Domestic sales of molasses for the fi nancial year totalled 3,649 metric tonnes.

Th e major buyers included alcohol producers, the dairy industry and stockfeed buyers.
9 1 0 2 T R O P E R L A U N N A i 17 N O I T A R O P R O C R A G U S I J I F i 18 9 1 0 2 T R O P E R L A U N N A i 19 FIJI SUGAR CORPORATION LIMITED DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 20 FIJI SUGAR CORPORATION LIMITED DIRECTORS’ REPORT (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 21 FIJI SUGAR CORPORATION LIMITED DIRECTORS’ REPORT (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 22 FIJI SUGAR CORPORATION LIMITED DIRECTORS’ REPORT (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 23 FIJI SUGAR CORPORATION LIMITED DIRECTORS’ DECLARATION FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 24        9 1 0 2 T R O P E R L A U N N A i 25 N O I T A R O P R O C R A G U S I J I F i 26 9 1 0 2 T R O P E R L A U N N A i 27       Independent Auditor’s Report (continued) Auditor’s Responsibilities for the Audit of the Financial Statements (continued) We communicate with the Directors’ and management regarding, among other matters, the planned scope and timing of the audit and signifi cant audit fi ndings, including any signifi cant defi ciencies in internal control that we identify during our audit.
We also provide the Directors’ and management with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements In our opinion, the fi nancial statements have been prepared in accordance with the requirements of the Companies Act 2015 in all material respects, and; a) we have been given all information, explanations and assistance necessary for the conduct of the audit; and b) the Corporation has kept fi nancial records suffi cient to enable the fi nancial statements to be prepared and audited.
Ernst & Young Chartered Accountants Shaneel Nandan Partner Lautoka, Fiji 23rd July 2019 N O I T A R O P R O C R A G U S I J I F i 28  FIJI SUGAR CORPORATION LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2019 Notes Revenue Exports, sugar and molasses Local, sugar and molasses Less: Cost of milling and sales Gross (loss)/profi t Other income Realised exchange gain, net Administrative and operating expenses Guaranteed cane price Reversal of non-current inventory obsolescence Loss from operations Finance costs, net Unrealised exchange loss, net Allowance for impairment loss on capital works in progress Allowance for impairment of Joint Venture Receivable Loss due to fl ooding 8 2019 $’000 98,383 34,393 2018 $’000 147,676 34,437 132,776 182,113 (155,892) (181,269) (23,116) 844 25,006 1,592 (18,112) (48,119) - 388 1,044 (15,354) - 2,788 (62,749) (10,290) (11,695) (3,492) - (1,103) (1,031) (6,618) (1,679) (5,009) - (1,030) (80,070) (24,626) Loss before income tax Income tax expense Loss for the year Other comprehensive income 10(a) - - (80,070) (24,626) - - Total comprehensive loss for the year (80,070) (24,626) Th e above statement of profi t or loss and other comprehensive income should be read in conjunction with the accompanying notes.
9 1 0 2 T R O P E R L A U N N A i 29 FIJI SUGAR CORPORATION LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 30 FIJI SUGAR CORPORATION LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2019 Balance at 1 June 2017 Loss for the year Other comprehensive income Balance at 31 May 2018 Loss for the year Other comprehensive income Balance at 31 May 2019 Share Capital $’000 Accumulated Losses $’000 Total $’000 22,200 (239,347) (217,147) - - (24,626) (24,626) - - 22,200 (263,973) (241,773) - - (80,070) (80,070) - - 22,200 (344,043) (321,843) Th e above statement of changes in equity should be read in conjunction with the accompanying notes.
9 1 0 2 T R O P E R L A U N N A i 31 FIJI SUGAR CORPORATION LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 32 Th e accompanying notes form an integral part of the statement of cash fl ows.
FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 33 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 34 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 35 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 36 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 37 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 38 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 39 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 40 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 41 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 42 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE
 YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 43 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 44 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 45 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 46 FIJI SUGAR
 CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 47 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 48 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 49 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 50 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 51 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 52 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 53 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 54 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 55 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 56 FIJI SUGAR CORPORATION LIMITED NOTES
 TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 57 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 58 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 59 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A
 R O P R O C R A G U S I J I F i 60 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 61 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 62 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 63 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 64 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 65 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 66 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 67 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 68 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 69 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J
 I F i 70 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 71 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 N O I T A R O P R O C R A G U S I J I F i 72 FIJI SUGAR CORPORATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FOR THE YEAR ENDED 31 MAY 2019 9 1 0 2 T R O P E R L A U N N A i 73 FIJI SUGAR CORPORATION LIMITED 10-YEAR STATISTICAL REVIEW N O I T A
 R O P R O C R A G U S I J I F i 74