Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698075197663.pdf (Guyana)
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Annual .

Report and Accounts 1979 Emblem Our Corporation's which appears on the cover of this of the seal of the is an adaptation Colony of B erbice.

This report ancient during ·200-year-old document the Dutch period and was taken from a seal was used the Colony of Berbice.

of of the Government The ship displayed is the type rum of the Emblem_ used to transport Demerara and Europe.
originally between in the centre GUYANA LIOUOR CORPORATION LTD HIGHLIGHTS OF 1979 Sales including duty and consumption tax Pre Tax Profits Profit after Taxation Gross Assets Shareholders' Funds Dividends Taxation Paid to State Duty and Consumption Tax Total Direct Payment to State Pre-Tax Profits at% of Sales Sales as % of Gross Assets Pre-Tax Profit as% of Net Assets Pre-Tax Profits as% of Gross Assets 1979 1978 $000 66,456 57,175 12,028 9,010 6,576 4,561 57,730 48,475 16,871 14,058 2,077 1,793 26,299 25,044 28,376 26,837 18.1 15.8 115.1 117.9 71.3 64.1 20.8 18.6 Earnings per share 42.Be 29.U Dividend Cover (Times) 2.4 1.9 GUYANA L/OUOR CORPORATION LTD CONTENTS Highlights Contents Statutory Information Statement of Value Added Revenue Analysis Chairman's Statement Four year History PAGE 6-10 11 1979 A Year of Projects and New Products 12-15 Report of the Auditors Profit Consolidated and Loss Account Consotidated Balance Sheet Balance Sheet 16 17 18 19 Consolidated of Funds Statement of Source and Application 20 Notes to the Consolidated Accounts 21-26 Four Year History Inflation Accounting 27 28 2 GUYANA L/OlJOR CORPORATION L TO STATUTORY INFORMATION Directors -Chairman Yesu Persaud R.D.
Webster M.Solomon W. A. Lee C.Hinds K. R. Samaroo Company Secretary K. R. Samaroo Office Registered 61 Avenue of the Republic, Georgetown.

Solicitors Clarke & Martin, 7 Brickdam Georgetown.

& Manget Place, Auditors Dias & Company, Stoll, Thomas, Street, 5 America Georgetown.

Bankers Royal Bank of Canada, Water Street, Georgetown.

Guyana National 1 Lombard Georgetown.
Co-operative Bank, Streets, & Cornhill GUYANA l/OUOR CORPORATION l TO STATEMENT OF VALUE ADDED AND ITS DISTRIBUTION FOR 1979 $000 $000 1978 $000 Turnover 66,456 57,175 Deduct: Purchases of Goods and Services 24,042 19,762 TOTAL VALUE ADDED 42,414 37,413 Distributed as follows:- To Central Government Company Taxes 5,452 4,449 Taxes Duty and Consumption 20,847 20,595 26,299 25,044 To Employees Benefits and Emoluments 6,905 5,337 To Suppliers of Capital Interest on Borrowed Funds Dividends to Shareholders 1,329 2,800 50 � 4,129 3,634 Retained for the Business Depreciation Retained Profits 1,305 3,776 1,187 2,211 5,081 3,398 42,414 37,413 4 GUYANA l/OUOR CORPORATION l TO REVENUE ANALYSIS (Sales: 100%) 1979 Duty• CHI HIiiian .. c111,11U W y,... _, Employa'I Emotum•'II lnda.n.tlll (10A") 1978 GUYANA LIOUOR CORPORATION LTD CHAIRMAN'S TO SHAREHOLDERS STATEMENT V81UPel'NUd Since the incorporation had an impressive have increased $3.3M to $12.0M in the same period.
of the Guyana Liquor Corporation rate of growth in Group Resources in May, 1976, the Group has and Profitability.

from Profit Group Resources from $20.1 M in 1976 to $30.4M in 1979 and Group Pre-Tax has been achieved against molasses, has increased The growth in profitability basic input, the same percentage these factors, the Operating a planned investment and all other inputs Companies programme, costs.
The in price by over 300%, that of Bunker 'C' fuel by substantially a background of rising have also increased have been able to improve cost controls, in price.

Despite their performance by and productivity.

higher production rigid the Corporation In addition, raw materials with a reasonabl vigour in the future.
and greater maximise without productivity, increasing The rallying cry in the Operating sacrificing foreign exports thereby Companies is increased production qua Ii ty, which will enable the Group to exchange earnings and profitability.

has been expanding e degree of success, its base of operations and this will be pursued by using local with increased (a)Disdlleries: Distillery throughout increases.

production increased by 12% in 1979.


DLL worked at full capacity the year, and both Enmore and Uitvlugt recorded very impressive (b)Bottting Plant: problems, Plant at GDL was commissioned The new Bottling initial teething The new DLL Line was to have been completed became operational operated (c)Bulk Terminal: in Mid April, the year well beyond the rated capacity the Line is now working 1980, and therefore, throughout in November satisfactorily.

and after the the old Line had to be of the Plant.


in November 1979, but only is of tremendous the year and 2.5 million throughout in May from the date of its opening facility was fully utilised of rum went through the Terminal The Bulk Terminal gallons 1978, to the end of 1979.

The Terminal of barrels has virtually used for shipping rum in bulk tank ships in order The Bulk Terminal facility would have that are now being developed.

of the new markets significance to to reduce unit freight rum.
Moreover, for export and special tank ships are now of and freight rates are moving upwards all the time.

The Terminal eliminated to be increased in 1980 to take advantage the Operating Companies the use of barrels as the cost costs.

buyers in Europe are insisting on shipment 6 GUYANA l/OUOR CORPORATION l TD CHAIRMAN'S STATEMENT TO SHAREHOLDERS (Continued) MARKETS (a)Local: sales on the local market fell by 4%.
Rum sales declined away from Gins, as Gilbeys by 3% while ) Booths and Blue Seal Hard liquor there seemed to be a shifting declined by 35% in the year.

The trend is towards Vodka, and Smirnoff Richemond, Bardinet and La France Brandies and Cossack of 29%.

recorded showed an upward movement of 20% increases (b)Caricom: increased by 27%.

Smirnoff Vodka has been the leading brand and Sales in Caricom recorded an increase of 74%.
Bardinet Richemond, with the previous motional efforts and La France Brandies showed marginal decreases are on the decline and pro­ compared year.

Sales of our Gin in Caricom are being made Jo i_�prove the performance of Booths and Gilbeys.

(c)Export Rum: competition from other Caribbean Despite the severe exceedingly E.E.C.

and Canadian markets, distributors and the promotional visits well in bulk rum sales.
Sales volumes increased competitors, the Group did by over 30% in the to the hard work of our from Guyana.

vvhich is due principally of senior personnel MARKETS FOR RUM The ACP Quota in the E.E.C.

the Quota will be extended for another It should be noted that the export market for rum is restricted Europe and North America.

from all reports, comes into force.


As a result of representat� maae�ttv WIRSPA-, the Canadian duty on Rum was abolished in 1.976,,� Rum rwvier,ters expires year until the Alcohol the-Canadtart�t'free to the U.K., Western on June 30, 1980, but of any impart duty .

regime .• .

This was don&·despift tN!.

fac"t�Jt-�anada hat.a dom9\t1Q rum.industrv countries well-known from.

Europe.

Vodka, Gin anct; Bnildy is almost four times the duty on The.
U.S. has the most liberal in favour of d�veloping by the Admlnistration.

could have been an and this anornaly It i� �<>P@<j'th(U it will be.�died in 1990, aapecially so much so that · TNe- U.S., on the other bane,�-in1�s6i a penal dtJtY on.

W .. t_lndian R�m .in order to l'l"Otect ·Puerto ·Riean Rums: :t� ·dut).

it so penai that tt · Scotch Whisky, trading policy' oversight ,r o( tbe:fact:tAat'Puerto irfthe'ligt,t one particular single brand seller The ·u.s.
but'the countries of Europe will Caricom a more liberal policy would then be in line with Canada and the E.E.C.

A move in this direction tremendous directions.


be more entrenched have-very few products period is so long_that at the end ofit, the products imported from from the Region which will have a trade in other Rican Rums are 'nowweH'etrtrenched, a well�known has made an attempt to reduce the duty on Rum over a period of eight years impact on the economy of Caricom developing countries the duty on Rum imported Rum brand has replaced and will stimulate by abolishing and the U.S. could adopt Whisky as the No.
1 to export, than ever.

in the U.S. the developed Eastern Europe In the last few years the Corporation Eastern Block made in Eastern but, to date, no business Europa ii, 1980. has been in touch with all the countries has materiaJised.

We are hopeful that sales will be in the GUYANA l/OUOR CORPORATION l TD CHAIRMAN'S STATEMENT TO SHAREHOLDERS (Continued) NEW DEVELOPMENTS DURING THE VEAR Demerara Food Products Ltd. (a)Vinegar Plant: The Vinegar Plant commenced very high standard companies.
national and comparable operations in April, 1979.

The products are of a to the Vinegar produced by well-known inter­ The Plant is gearing itself to increase production well accepted in the local market and two shipments Caricom.

in 1980, as the products have been have already been made to The Corporation has also launched Table Vinegar new products.

and Caramel.
and Caramel.

under the 'Three Counties' label, a brown It is too early to guage market reaction to these two (b)Spark-I-On: an industrial Spark-I-On, during the year and market response launch this product cleaner later in the year in Caricom.

for glass, chrome and other materials has been very encouraging.
It is intended to was launched Cc) Wines: The Winery at Diamond has been completed brand name 'Heritage Rose' was launched in February, 1980. and the first batch of wines under the Because of the difficulty in obtaining product would be available stepped only in limited up as soon as there are larger volumes of fruit.

the special type of fruit for this wine, the quantities will be in 1980.
Production Tests are now being carried types of wines will be on the market later in the year .. out on Wines produced from other fruits and other (d)Rum Punch: A rum punch was developed indicated that the product is of good quality by the Technical Unit, and test marketing has to consumers.
and acceptable OTHER DEVELOPMENTS IN TRAIN (a)Seals & .Corrugated Cartons Project -Estimated Cost $16M The Seals and Corrugated Development Bank, and tenders Cartons Project has been approved by the Caribbean have been sent to various manufacturers.

It is hoped that construction work will commence before the middle of June, 1980.

(b)Yeast: Research be producing (c)Power Alcohol: is continuing would in this area, and by the end of 1980, the pilot project Yeast for general testing purposes.
The price of molasses of producing tion of shelving power alcohol the project has more than quadrupled in the last 18 months and the cost has gone up substantially.

as we are still awaiting the feasibility there is no inten­ study from Brazil.

However, '1 The mechanic three vehicles alcohol would arrive sent to Brazil which were donated by the Brazilian has since returned, and it is hoped that the powered by Government for training in the country during 1980.
PROFIT ABI LITV The Group's increase of 33%, which is a satisfactory for the year was $12.0M compared increase Pre-Tax Profit by any standard, bearing in mind that with $9.0M in 1978 -an 8 GUYANA l/Ol/OR CORPORATION l TD CHAIRMAN'S STATEMENT TO SHAREHOLDERS (Continued) BARREL FURNITURE The Barrel Furniture very well accepted, and export markets.

Department has been improving its range.


The products have been and it is hoped that sales would increase in 1980 -both in the local CAPITAL EXPENDITURE It is absolutely quality Expenditure iture in 1979/1980.

programme.
programme.

necessary to rehabilitate and expand our facilities in order to produce products at competitive prices and this can only be done by a planned Capital The Group is and will be spending $14M in Capital Expend­ (i)Bottling Plant at GDL Costing $1.3M was completed The Bottling Plal'lt This Line would enable GDL 1979, and is now operating satisfactorily.

to produce the products markets.


and commissioned in November in demand in the local and international (ii)Bottling $1M Line at DLL Costing This Line became operational enable Diamond to improve Caricom markets plant capacity.

in the middle of April, 1980, and will its sales performance both on the local and as a major constraint at DLL in 1979 was bottling (iii)Additional Column at GDL Uitvlugt Costing $1M The additional give GDL the flexibility market place.
Column will be operational of producing several in April, 1980 and would other blends for the (iv)New Still at DLL Costing $3.5M Work has already commenced The Still is expected Diamond.

enable DLL to produce not only the traditional lighter type spirits, neutral industrial on the Tri Canada/John to be completed Dore Still at in July 1980, and will type of spirits, for its franchised products, and alcohol alcohol.
but also (v)Boiler at GDL -Uitvlugt Costing $200,000 at Uitvlugt was installed A new boiler This will enable the Stills as a replacement in April, 1979. to be operational throughout the year.

(vi)Bond and Wharf - New Amsterdam The Bond and Wharf were acquired The facilities cost of $287,000.

job had to be undertaken.

rehabilitation the Corentyne serving tional, and East Berbice areas.
were in a state of disrepair The facilities and a major are now opera­ from Transport and Harbours at a RETURN ON INVESTMENTS The Return of Gross Assets was 20.8% and Net Capital able rates of return especially in the light that the assets represent current 39.6% -very reason­ values.
Employed, GUYANA LIOUOR CORPORATION LTD CHAIRMAN'S STATEMENT TO SHAREHOLDERS (Continued) DIVIDENDS, DUTY, TAXATION & CONSUMPTION TAX Dividends the State, Consumption $26.8M in 1978. paid by the Operating in addition Tax and to which, Taxation Companies the Operating - a total direct totalled $2.8M of which $2.1 M was paid to in Excise Duty, Companies paid $26.3M· contribution of $28.4M compared with DIVERSI Fl CATION The Group is carrying a planned in processing where possible out research programme diversification is underway.
elements into a number of areas and The aim is to use local raw materials in other cases.

and development and imported INDUSTRIAL RELATIONS The Industrial 1979, and we hope't'haf .

this would continue .

in 1980.

Relations · climate in the Operating Companies was extremely good in EMPLOYEES and for that mattl?r a company, depends on the application of its human resources imperative in attaining in the creation the objectives of wealth.

Human resource plan­ of the Company.


The success of a country, and utilisation ning is, therefore, G LC has recognised tion in the achievements I am worried that certain affect will definitely skills done to retain well as a company these factors and employees have made a very meaningful contribu­ of the Group, in the last three years.

skills performance and make it attractive are in very short supply, Something to acquire skills.

and production.
and production.

tangible will have to be as This is both a national and unless corrected, responsibility.

PROSPECTS tax imposed cost increases continuing Despite Hf80 looks very promising consumption contraction Promotional rather Europe last year, and at the beginning export performance.

excellent of the local market.

heartening to report and the very competitive The Corporation state of the export market, was exempted from the 8% for exports.
in the last Budget and this should help in avoiding further visits to buyers and distributors that promotional would be intensified visits by Minister of this year, have contributed Kennard and myself to significantly in 1980, and it is to our The Group can only remain as a viable entity prices, competitive fact and every effort thereby unit cost and improving and I am certain reducing would be made to increase production profitability.
that our employees by producing at all levels high quality at products of this are conscious and improve productivity, ACKNOWLEDGEMENTS I would like to thank employees the year, the Board of Directors support support and guidance, and, above all, our customers these results would not have been possible.
at all levels and also the Minister for the contribution they made throughout of Agriculture for their continued whose without at home and abroad, 10 GUYANA .. llOUOR CORPORATION l TD FOUR-YEAR HISTORY AT A GLANCE SALES KEY KEY RETAINED PROFITS MINORITY INTERESTS DIVIDENDS TAXATION INTEREST 1976 1977 1978 1979 PROFITS 1976 1977 1978 1979 $M 70 60 50 40 30 20 10 0 14 12 10 8 6 4 2 0 1979 - A year of Projects and New Products The Year 1979 saw the implementation of a number of major expansion projects of the Corporation.
These projects are aimed at guaranteeing and increasing supplies of the high-quality products which are marketed in bottled and bulk fonn.

The washing macrune of the new GDL Line is in operation.

The bottom conveyor feeds the dirty bottles in to the machine while the top conveyor takes washed bottles to the filling machine.

Botti in g Facilities In November, 1979, a new Bottling Line capable of producing 600 dozen bottles per hour was com missioned.
This Line would enable Guyana Distilleries Ltd. to fully satisfy demands for its bottled products on a single-shift basis.

transferred The old Bottling Line from Guyana Distilleries Ltd., was rehabilitated and to Diamond Liquors Ltd., so as to bring that Company's production capacity in line with demands for its products.
With its existing bottling facilities, the Corporation will be in a posi tion to increase its Caricom Sales and to introduce branded rums on the international market when glass becomes available from the local glass factory.

The former GDL Line was rehabilitated and installed at Diamond.

Picture shows the Line in operation.

12 Distillery Facilities from At Diamond, an obsolete Still is being replaced by a new one.
Equipment is being pur chased two suppliers John Dore & Co. Ltd., in - the U. K. and Tri Canada Ltd., in Canada.

The Still will en sure adequate supplies of high quality neutral spirits for the franchised bottled products produced by Diamond Liquors Ltd., as well as giving the Company the advantagf!

of producing, in addition to its traditional spirits, lighter types of spirits depending on market demands.
lighter spirits, One of the Stills at Uitvlugt Distillery could only produce the heavy types of spirits and because of market changes towards the Still was under-utilised.

With addition of another the Column, the Still will be capable of producing a wider range of spirits, thus giving Guyana Distilleries Ltd., the ability to take greater advant age of market conditions.

The equipment was supplied by Sodecia, a French company.
- TOP 8dditional The Colum11 installed et Uitvlugt Distillery the control panel for the Column.

along with BOTTOM - Picture shows two columns of the New Still at Diamond.

These columns are made from Stainless Steel and supplied by Tri Canada Ltd. New Products the completion of the With Vinegar Plant in 1979, the Corporation, through its sub sidiary, Demerara Food Pro launched EHP ducts Ltd., white vinegar on local the market and 'Three Counties' white vinegar on the Caricom market.
Later, it introduced a brown vinegar and Caramel the Food Colouring under 'Three Counties' brand name on the local market.

fermentation As part of its diversification programme, the Corporation commenced the production of wines from local fruits using process the which is also used in the pro duction of rum.

The wine is marketed under the brand 'Heritage' and early name reports indicate wide accept ance of this new product.
13 'HERITAGE ROSE' - THE WINE PRODUCED FROM LOCAL FRUITS THEPRODUCTSOF DEMERARAFOODPRODUCTSLTD.

l TD GUYANA l/OUOR CORPORATION REPORT OF THE AUDITORS To the Members of Guyana Liquor Corporation Limited the accounts set out on page 17 to 26 which are in agree­ We have examined ment with the books of the company and have convention, 23.
We have obtained the revaluation all the including of the fixed assets as explained been prepared under the historical in Note 6 on page cost information and explanations we have required.
these accounts give under the accounting In our opinion, of the company and group at 31 December true and correct view of the state of affairs 1979 and of the net income, source and application of funds for the year then ended, in accordance with generally with that of the preceding accepted accounting stated above, a convention applied principles on a basis consistent year.

THOMAS, STOLL, DIAS & CO. Certified Accountants Street, 5 America Georgetown, Guyana 27 Apri I, 1980.
16 LTD GUYANA LIOUOR CORPORATION CONSOLIDATED FOR THE YEAR ENDED DECEMBER 31, 1979 PROFIT AND LOSS ACCOUNT Notes $000 1978 $000 Turnover including excise duty Profit before interest and taxation 2 3 66,456 = 13,357 57,175 10,294 Interest 1,329 1,284 Profit before Taxation 12,028 9,010 Taxation 4 5,452 4,449 Net Profit after Taxation 6,576 4,561 Minority Interest 1,686 1,164 Net Profit attributable to Group Dividend Proposed Retained Profit for Year Retained Profit at 1st January Retained Profit at 31st December 4,890 3,397 2,077 1,793 2,813 1,604 2,485 881 5,298 2,485 -- Earnings p�r share 5 42.8 e 29.
7 ,i GUYANA l/OUOR CORPORATION L TO CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1979 Notes $000 $000 $000 1978 $000 FIXED ASSETS INVESTMENTS FORMATION EXPENSES 6 7 24,430 77 22 20,355 77 27 CURRENT ASSETS Stocks and Work-in-Progress 18,506 Debtors Deposit on External Payments Investment Cash on hand and at Bank 10,744 1,521 1,021 1,409 and Prepayments - Treasury Bills 8 16,113 8,208 774 2,045 876 33,201 28,016 CURRENT LIAB1LITIES Creditors and.
Accruals Loans due within 12 months 9 Proposed Taxation Bank Overdraft Dividends 11,814 2,954 2,077 4,902 5,606 8,765 2,791 1,793 3,077 5,026 27,353 21,452 NET CURRENT ASSETS 5,848 6,564 30,377 ======== 27,023 FINANCED BY: Share Capital -15,000 ,000 Authorised (1978 - 15,000,000) ordinary $1 shares 15,000 and fully paid Issued {1978-11,427,086)ordinary$1 shares 11,427,086 11,427 Capital Reserves Retained Earnings 10 FUNDS SHAREHOLDERS Interests Minority Oeferred Taxation Loans due after 12 months 9 Pension Provision 11 146 5,298 16,871 6,382 1,496 5,573 55 30,377 -- 15,000 -- 11,427 146 2,485 14,058 5,392 1,106 6,403 64 27,023 = ·18 GUYANA LIOUOR L TO CORPORATION BALANCE SHEET AT 31 DECEMBER, 1979 Notes $000 $000 $000 $000 1978 FIXED ASSETS 5- 599 308 INTERESTS IN SUBSIDIARIES 12 16,534 14,038 F ORMATION EXPENSES CURRENT ASSETS Debtors Dividends Investment Cash on hand and at Bank Receivable -Treasury Bills 4 1,171 1,021 793 73 1,166 2,045 874 2,989 4,158 CURRENT LIABILITIES Creditors and Accruals Loans due within 12 months 9 Proposed Bank Overdraft Dividend 1,158 761 2,077 451 404 594.
1,793 12 4,447 2,803 NET CURRENT ASSETS (LIABILITIES) (1,458) 15,684 1,3?5 15,718 === FINANCED BY Share Capital Authorised ordinary $1 shares 15,000,000 15,000 -- 15,000 ::z:::= Issued and fully paid 11,427,086 Ordinary $1 shares 11,427 11,427 Capital Reserves 10 84 84 SHAREHOLDERS FUNDS Loans due within 12 months 9 11,511 4,173 15,684 11,511 4,207 15,718 === Y.Persaud K. Samaroo) ) Directors GUYANA LIOUOR CORPORATION LTD CONSOLIDATED APPLICATION OF FUNDS FOR 1979 STATEMENT OF SOURCE AND SOURCE OF FUNDS Profit before interests Taxation less minority Adjustments movement of funds: for items not involving the expenses Formation Depreciation Minority for year profits interests in retained 1978 $000 $000 $000 10,342 7,846 5 1,305 8 1,186 991 829 TOTAL GENERATED FROM OPERATIONS 12,643 9,869 FUNDS FROM OTHER SOURCES Net proceeds Loans on sale of fixed assets OF FUNDS Paid APPLICATION Dividends Tax Paid Purchase Loan repayment Pension Formation expenses of fixed assets INCREASE IN WORKING CAPITAL 2,110 80 3,068 14,753 13,017 1,793 3,238 5,380 2,777 9 784 1,618 2,557 3,454 9 10 13,197 8,432 1,556 -- 4,585 -- REPRESENTED BY Increase Increase Increase Increase in stocks in debtors in external in creditors and work-in-progress 2,393 2,536 747 and prepayments payments deposits and accruals 4,019 2,192 (3,049) (2,428) Movement in net liquid funds: -Treasury in cash balances in bank overdraft (580) Investment Increase Increase Bills (1,024) 533 2,045 303 (1,546) (1,071) 802 1,556 = 4,585 -- 20 GUYANA LIOUOR L TO CORPORATION
 NOTES TO THE CONSOLIDATED ENDED 31 DECEMBER, 1979 ACCOUNTS FOR THE VEAR 1.
ACCOUNTING POLICIES (a)B•is of Consolidation (i)The consolidated the consolidated and Diamond Liquors erara Food Products Ltd., accounts incorporate accounts of the subsidiaries, the accounts of the Company, Ltd., Dem­ ltd., and the accounts of its subsidiary, Guyana Distilleries which commenced trading in April, 1979.

(ii)All inter-company balances and transactions on con­ are eliminated solidation.

(b)Depreciation No depreciation progress.
their estimated useful Other fixed assets are depreciated on freehold land and construction line basis over on the straight work in is provided lives as follows:- -Distillery building Freehold Plant and machinery Plant and machinery -Others Office Equipment fixtures Furniture, Sundry equipment Vehicles & fittings 2% 6%% 7%% 12%% 10% 20% 25% (c)Stocks, Stores and work-in-progress Stocks and stores are valued at the lower of cost and net realisable Cost includes materials value.

and freight.
and freight.

Work-in-progress insurance and direct overheads.

is valued at cost of (d)Defarred Taxation Taxation Deferred is provided at current book values of these assets which qualify written for tax purposes.

down values rates on the amount by which the for tax allowances exceeded their (e) Foreign Currency Translation Foreign exchange ruling currency at the dates of such transactions.
transactions are converted to Guyana dollars at the rates of At balance translated sheet date all amounts denominated in foreign currencies are to Guyana dollars at exchange rates ruling at that date.

Gains and losses in net profit.

arising from the translation of foreign currencies are included (f)Formation Expenses Formation expenses are written-off over a period of five years.

(g)Currency These accounts have been prepared in Guyana dollars.
GUYANA LIOUOR CORPORATION L TO NOTES TO THE ACCOUNTS (Continued) 2.

TURNOVER Turnover represents the value of goods and services sold to third parties.

3.

PROFIT BEFORE INTEREST AND TAXATION 1979 1978 $000 is arrived at after accounting for: Depreciation 1,305 1,186 Directo rs' remuneration Auditors' remuneration 25 17 54 46 4.
TAXATION Taxation the year is made up as follows: based on profits -- charge for Income and Corporatio11Tax @45% 4,908 4,031 Property Tax Deferred Tax Prior year adjustments 154 138 -- 390 282 5,452 4,451 (2) 5,452 4,449 = 5.

EARNINGS PER SHARE This is based on the net profit shares issued and fully paid at the end of the year.
attributable to the Group divided by the ordinary calculated as follows: -- Net profit attributable to group Ordinary fully paid shares and of $1 each issued 1979 1978 $000 $000 4,890 3,397 11,427 11,427 Earnings per $1 share in cents 42.8 29.7 22 GUYANA l/OUOR CORPORATION LTD NOTES TO THE ACCOUNTS (Continued) 6.
FIXED ASSETS Group Company Lands and Equip- Buildings ment Total Lands and Equip· Buildin91 ment Total $000 $000 $000 $000 $000 $000 Valuation Cost or At 1 January, 1979 12,175 14,900 27,075 53 311 364 1,371 4,009 5,380 301 53 354 Additions Disposals (36)(36) At 31 December, 1979 13,546 18,873 32,419 354 364 718 Comprising Valuation Cost 6,435 6,435 7,111 18,873 25,984 354 364 718 13,546 18,873 32,419 354 364 718 ---- ---- Accumulated At 1 January, Depreciation 1979 653 6,067 6,720 19 37 56 Provision for Year Retired on Disposals � � 240 1,065 1,305 11 52 63 893 7,096 7,989 30 89 119 Net Book Values At 31 December, 1979 12,653 11,777 24,430 324 275 599 At 31 December, 1978 11,522 8,833 20,355 34 274 308 = = ===s = - ·=== = --- Lands and Buildings 1974 and those of Diamond The Freehold December, 1977 in accordance Certain equipment to reflect the Directors The surpluses created which has since been partly utilised with professional acquired current from these revaluations Liquors advice to reflect values.
to issue bonus shares.

market by Guyana Distilleries of Guyana Distilleries Limited Limited were revalued were revalued on 9 on 31 December, market values.

by Limited in 1978 were revalued have been transferred to capital reserves 2 GUYANA L/OUOR CORPORATION LTD NOTES TO THE ACCOUNTS (CONTINUED) GROUP COMPANY 1979 1978 1979 1978 $000 $000 $000 $JOO 7.

INVESTMENTS (Canada) Ltd. at C$100 each at cost Guyana Distilleries 10 Shares 3%% Guyana National in 1987 redeemable Defence Bonds 8.
EXTERNAL PAYMENTS DEPOSITS This amount represents cash deposit pending from the Bank of Guyana for the Company to remit to its overseas creditors.

permission 2 2 75 75 77 77 -- .s::= - 9.
LOANS (a)Offshore loan (US$2.6M) from Guyana in 3 equal State Corporation annual instalments commencing September repayable 1978 19 2,193 4,393 (b)Offshore loan (US$0.9M) from Royal in four Bank of Canada repayable equal annual instalments 1978 ing 31 December, commenc- 1,155 1,732 1,155 1,732 tc) Offshore loan (US$1.132M) from Royal Bank of Canada repayable instalments in 6 semi-annual mencing 1981 April, com- 2,905 2,905 2,905 2,905 Goods from for Capital Bank Limited (d)Finance Lloyd's Guyana National Bank repayable instalments 25 October, commencing 1979 through Co-operative in 10 half-yearly 874 164 874 164 (e)Local loan from GNCB Trust Corporation (unsecured) at 11 %% per annum and principal is repayable ing 1981 in 3 years commenc- interest 1,400 8,527 9,194 4,934 4,801 Repayments classified due in 1980 as current liabilities 2,954 2,791 761 594 5,573 6,403 4,173 4,207 ----- -- 24 GUYANA l/OUOR CORPORATION l TD NOTES TO THE ACCOUNTS (Continued) GROUP COMPANY 1979 1978 1979 1978 $000 $000 $1)00 surplus, 10 CAPITAL RESERVE At 1 January Revaluation interest Revaluation of shares Limited Distilleries Capitalised by the issue of one bonus share for each share held in Guyana less minority 146 5,802 84 58 5,798 (5,714) (5,714) At 31 December 146 146 84 84 � 11.MINORITY INTEREST share capital Ordinary Reserves Dividend proposed 4,169 2,784 1,825 2,246 388 362 6,382 5,392 12.INTEREST IN SUBSIDIARIES $1 shares held in Diamond Limited shares 4,729,968 Ordinary Liquors at cost Guyana Distilleries at 1978 valuation
 shares Ltd. 6,601,150 of $1.35 each 2,600 2,600 8,912 8,912 11,512 11,512 Amounts owing by Diamond Ltd. Liquors Guyana Distilleries Demerara Seals and 2,905 1,412 1,870 777 Food Products Ltd. 236 320 Packaging lndustdes Ltd. 11 Limited 8 16,534 14,038 GUYANA l/OUOR l TD CORPORATION NOTES TO THE ACCOUNTS (Continued) GROUP COMPANY 1979 1978 $)00 $)00 1979 1978 $000 $000 13.CAPITAL EXPENDITURE Authorised contraoted by the Directors for and 793 3,935 Authorised contracted for by the Directors and not 8,882 3,982
 1,362 180 14.CONTINGENT LIABILITY Bonds in respect warehoused of duty on spirits of goods and exportation 2,196 2,195 Guarantee other parties in respect of borrowing of 41 62 of duty on goods Bonds in respect imported and Encouragement 95:01 under the Industries Aid Act Chapter 467 467 15.PARTICULARS OF SUBSIDIARIES 37 467 467 Name of Company Registration Country of Incorporation Identity of each Class of Shares held Proportion of issued shares held by the Group Diamond Liquors Guyana Limited 4,729,968 shares of $1.00 each ordinary 63.1% Guyana Distilleries Guyana 6,601,150 shares of $1.00 each ordinary Guyana 260,000 ordinary of $1.00 each, shares being held in equal amounts subsidiaries by the above 82.6% 72.8% Limited Food Demerara Products Limited 26 GUYANA LIQUOR CORPORATION l TD FOUR-YEAR HISTORY 1976 1977 1978 1979 $000 $000 $000 $000 Sales 45,796 50,774 57,175 66,456 Operating Profit 4,113 4,416 10,294 13,357 Interest Profit Tax Before Taxation After Tax Profit 3,315 3,452 9,010 12,028 1,557 1,724 4,449 5,452 1,758 1,728 4,561 6,576 798 964 1,284 1,329 Employed Gross Assets Employed Capital Funds Shareholders' 31,123 38,555 48,475 57,710 20,168 23,973 27,023 30,357 10,229 12,397 14,058 16,871 % % % % as % of Sales as % of Capital Operating Operating Return Return Profit Profit of Gross Assets on Shareholders' Funds 9.0 8.7 18.0 20.1 20.4 18.4 38.1 44.0 10.7 9.0 18.6 20.8 30.0 20.3 47.6 71.3 Employed " " " " Shareholders' per Share Earnings Cover (Times) Dividend
 Funds per Share 179.0 217.0 123.0 147.6 11.8 11.1 29.7 42.8 1.7 1.4 1.9 2.4 27 LTD GUYANA LIOUOR CORPORATION INFLATION ACCOUNTING The Corporation and has been including adjusting money.
Historical has always been aware of the effect of inflation on reported earnings in its reports over the last few years a supplementary Cost Profits to take account of the declining purchasing statement power of bodies there has been a great deal of debate amongst accounting In the meantime, throughout the traditional Historical U.K. and the Corporation will be adopting which has been issued.

the world as to what kind of accounting Cost ·System.
system should replace or supplement There has recently been some consensus in the reports, the Accounting in its future Standard Like last year, the Corporation preciation, of inflation out below Current is setting Cost of Sales and gearing so as to give interested in the year.
Cost Adjustments to de­ parties an idea of the impact .$000 $000 $000 $000 1978 Tumover 66,456 57,175 Profit before Tax as in historical costs accounts 12,028 9,010 Adjustments depreciation Cost of Sales (Note 2) 1,268 (Note 1) 2,880 2,148 646 4,148 2,794 Less Gearing (Note 3) 1,786 -- 1,260 --- 2,362 1,534 Cost Profit before Taxation 9,666 Current Taxation after Taxation Profit Minority Interest Dividends Retained Profit Notes 5,452 4,214 1,080 3,134 2,077 7,476 4,449 3,027 769 2,258 1,793 1,057 465 ( 1)Depreciation: Fixed assets are revalued at the estimated replacement costs which are used to calculate depreciation.
(2)Costs of Sales: Cost of Sales have been adjusted to reflect the period.

stocks consumed during average current cost of (3)Gearing: allowing is the net This adjustment for the change in the value of money.

gain from holding monetary liabilities after 28 GUYANA .·LIQUOR CORPORATION LTD COMPANIES THAT MAKE UP THE GROUP GUYANA LIQUOR CORPORATION Head Office and Administration LIMITED Bulk Terminal 61 Avenue of the Republic, Georgetown .. 8/11 Water Street, Georgetown.
DIAMOND LIQUORS LIMITED Administration, and Distillery Plant Bottling Diamond, East Bank Demerara.

GUYANA DISTILLERIES Administration, And Warehouse Bottling Plant LIMITED Cooperage and Stores Distillery DEMERARA DISTILLERIES Distillery· LIMITED Administration DEMERARA FOOD PRODUCTS LIMITED Vinegar Plant Administration 8/11 Water Street, Georgetown.

La Penitence East Bank Demerara Uitvlugt, West Coast Demerara.

Enmore, East Coast Demerara.

61 Avenue of the Republic, Georgetown.


Enmore, East Coast Demerara.

61 Avenue of the Republic, Georgetown,