Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698075177166.pdf (Guyana)
GUYANA SUGAR CORPORATION INC. 2016 ANNUAL REPORT For the Ministry of Agriculture 1 CONTENTS BOARD OF DIRECTORS ......................................................................................................................................................... 5 AGRICULTURE OPERATIONS ............................................................................................................................................. 6 Overview ................................................................................................................................................................................ 6 Production ............................................................................................................................................................................. 7 Land Preparation and Planting ..................................................................................................................................... 8 Provision of Technical Support ..................................................................................................................................... 9 Agricultural Information Management Systems.................................................................................................. 10 Agricultural Engineering / Capital Works .............................................................................................................. 11 Agriculture Research ....................................................................................................................................................... 11 FACTORY OPERATIONS ...................................................................................................................................................... 12 Production ........................................................................................................................................................................... 12 Weekly Grinding Hours
 .................................................................................................................................................. 12 Overall Time Utilization ................................................................................................................................................. 13 Power Generation ............................................................................................................................................................. 13 ISO Certification ................................................................................................................................................................ 14 Capital Expenditure ......................................................................................................................................................... 14 Packaging Plants ............................................................................................................................................................... 14 Drainage Pumps ................................................................................................................................................................ 14 Technical Support ............................................................................................................................................................. 14 HUMAN RESOURCES ............................................................................................................................................................ 14 Human Resources Management Committee ......................................................................................................... 14 Human Resources Management ................................................................................................................................. 15 Training and Development
 ........................................................................................................................................... 15 Resuscitation of Sports ................................................................................................................................................... 17 Occupational Health and Safety .................................................................................................................................. 17 Health Services .................................................................................................................................................................. 19 Communications ............................................................................................................................................................... 20 Industrial Relations ......................................................................................................................................................... 22 MARKETING............................................................................................................................................................................. 26 European Union Market ................................................................................................................................................. 26 USA .......................................................................................................................................................................................... 26 2 CARICOM and Regional Trade ..................................................................................................................................... 27 Local Market ....................................................................................................................................................................... 27 Customer Service
27 Customer Service .............................................................................................................................................................. 27 DIVERSIFICATION ................................................................................................................................................................. 28 Aquaculture ......................................................................................................................................................................... 28 Seed Paddy Pilot Project ................................................................................................................................................ 28 Other Proposed Activities ............................................................................................................................................. 28 DRAFT UN-AUDITED FINANCIAL STATEMENTS ..................................................................................................... 30 3 TABLE 1: Ten Year Review 4 2006200720082009201020112012201320142015Un-Audited 2016HECTARES HARVESTED42,422 39,757 44,262 43,556 36,510 45,411 43,616 40,676 45,302 42,782 44,311 TONNES CANE MILLED ('000)2,975 3,099 2,767 2,764 2,762 3,196 2,710 2,461 2,837 2,816 2,367 YIELDS:ESTATE - TONNES CANE / HECTARE64.48 71.97 57.71 57.50 66.32 62.58 55.31 53.55 55.66 57.96 53.81 TONNES CANE /TONNE SUGAR 11.46 11.55 12.16 11.67 12.51 13.51 12.43 13.18 13.11 12.19 12.76 TONNE SUGAR / HECTARE5.63 6.23 4.75
 4.93 5.30 4.63 4.45 4.06 4.25 4.76 4.22 PRODUCTION (TONNES)SUGAR259,549 266,482 226,267 233,736 220,818 236,505 218,068 186,755 216,358 231,071 183,615 HOME CONSUMPTION (TONNES):SUGAR23,396 23,480 23,345 23,594 22,341 20,031 22,387 22,141 20,799 21,768 22,828 EXPORT (TONNES):SUGAR237,681 244,865 205,268 217,707 195,745 210,863 196,537 163,330 189,561 212,660 158,404 SALES:DOMESTIC SUGAR ($M)1,644 1,673 1,595 1,906 2,273 1,884 2,048 2,101 2,107 2,184 2,326 AVERAGEPRICE / TONNE($)70,245 71,252 68,328 76,857
 101,757 94,079 91,463 94,872 101,287 100,332 101,900 EXPORT SUGAR ($M)25,509 27,101 23,777 24,398 18,332 23,954 26,211 23,240 17,312 15,202 15,150 AVERAGE PRICE / TONNE ($)107,332 110,676 115,832 112,067 93,652 113,601 133,363 142,288 91,327 71,487 95,641 AVERAGE PRICE / TONNE (US$)538 545 570 552 462 558 654 694 443 347 464 EMPLOYMENT COST/ $M16,067 17,373 17,580 15,571 15,787 18,518 19,413 20,094 22,385 21,673 18,256 (LOSS) / PROFIT BEFORE SUBSIDY AND TAX / $M2,429 2,159 (6,210) (1,949) (5,136) (11,891) (5,863) (8,319) (24,111) (18,886) (12,193) (LOSS) / PROFIT AFTER SUBSIDY BEFORE TAX / $M2,429 2,159 (6,210)(1,949)(5,136)(11,232)(1,863)(2,959)(22,335)(2,662)(1,193) (LOSS) / PROFIT AFTER SUBSIDY AND TAX / $M476 630 (4,089)(1,323)(7,387)(13,896)(1,246)5,736(15,730)(1,868)682 AVERAGE MID MARKETEXCHANGE RATE (G$ / US$ )199.50 202.99 203.34 202.99 202.83 203.63 203.99 204.99 205.98 205.98 205.98 BOARD OF DIRECTORS The Board of Directors of the Guyana Sugar Corporation Inc., as of December 31, 2016 are as follows: Dr. Clive Thomas Mr. Nizam Ali Ms. Louise Bouyea Chairman of the Board of Directors Director, Chairman of the Finance Sub-Committee Director, Chairman of the Central Tender Procurement Sub-Committee Director, Chairman of the Diversification Sub-Committee Mr. Fritz McLean Director, Chairman of the Lands Sub-Committee Mr. John Browman Director Mr. George Jervis Director Mr. Nigel Cumberbatch Mrs. Sharon Roopchand-Edwards Director Director Mr. Vishnu Panday 5
 AGRICULTURE OPERATIONS OVERVIEW Operation during the year was influenced by extreme tropical weather conditions.
During the first crop, the industry experienced a continuing of the El Niño weather phenomenon which began in the second half of 2015.

The second crop was affected, in part by the late cessation of the heavy mid-year rains which forced a delay in the commencement of the crop, and a continuation of the crop into the year-end rains.
As a result of the adverse weather conditions, cane growth; field yields; sugar recoveries; and the achievement of the estates‟ land preparation, replanting, harvesting and crop husbandry work programmes were all negatively affected.

The late start of the second crop ultimately resulted in the carrying-forward of some 3,961.2 hectares of unharvested canes into the first crop of 2017.

A total of 183,615 tonnes of sugar was produced from the harvesting of 44,272.8 hectares.
This represents an achievement of 76.7% of the budgeted sugar production budgeted for 2016.

The adverse weather during the year influenced a rodent outbreak that affected the entire industry to varying degrees.

This upsurge in rodent infestation and damage is expected to severely impact yields and recoveries during 2017.

As a result of the difficulties brought on by the unfavourable weather, Estates were forced to commit additional resources in pursuit of their work programmes.
Private farmers were similarly affected, and this was evident in the severe underachievement of their respective production programmes.

Water management during the first crop was very critical, as Estates had to recirculate drainage water into the navigation system to facilitate punt flotation and allow for continuous factory operations.

The Estates were also supported in their water management efforts by the various Conservancies Boards which instituted water rationing measures.
Adequate fertilizers, cane-ripeners and pesticides were available throughout the year.

However, estates continued to struggle with fielding adequate labour for timely implementation of agricultural operations, including field sanitation and the application of agro-chemicals.

Some estates did not have machines and implements fully operable and in the numbers required to compensate for the labour shortage, and to execute field operations as needed.
Machine availability and utilization throughout the year averaged 60.2% and 53.2%, respectively.

In addition to land preparation, other critical operations that have been mechanized over the years, and which includes ratoon drain rehabilitation and mechanical application of fertilizers and herbicides, were also affected adversely.

The Wales estate permanently ceased sugar production the week of December 23, 2016.
During the 2nd crop it had harvested some brought-forward canes that were in better condition than the true-crop canes; as such the 2nd crop closed without all the canes being harvested.

6 PRODUCTION TABLE 2: Estates’ and Farmers’ Hectares Harvested, Cane Yields, Cane and Sugar Production for 2016 The total production achieved for 2016 was 183,615 tonnes sugar.
All estates fell below their budgeted production (tonnes cane and tonnes sugar); yields (tonnes cane per hectare) and sugar recovery (tonnes cane per tonnes sugar) values, possibly resulting from a combination of several factors which included unfavourable weather and growing conditions; water stress; elevated soil salinity; inadequate cane nutrition; extended burning-to-grinding intervals, and the worsening impact of pests, particularly rodent damage.
Private farmers associated with the estates were also affected by the preceding factors.
The first crop production was 56,645 tonnes, falling 7 LocationHectares Havested Cane Yields / tonnes canes per hectare Canes Harvested / tonnes Factory Recoveries / tonnes cane per tonne sugar Sugar Produced / tonnes Skeldon7,734 49.07 379,525 14.21 26,712 Albion8,342 60.42 504,042 11.19 45,050 Rose Hall5,349 52.08 278,592 14.36 19,401 Blairmont5,646 69.17 390,574 11.84 33,000 East Demerara5,772 44.98 259,645 13.85 18,751 Wales 2,421 44.56 107,898 13.54 7,971 Uitvlugt 3,406 47.17 160,648 13.12 12,246 Total38,671 53.81 2,080,925 12.76 163,131 Skeldon1,835 42.31 77,630 15.31 5,070 Albion212 42.69 9,041 12.99 696 Rose Hall502 57.78 29,020 13.17 2,204 BlairmontEast Demerara252 32.39 8,170 13.83 591 Wales 2,298 52.47 120,569 13.64 8,838 Uitvlugt 541 76.60 41,446 13.44 3,085 Total5,640 50.69 285,876 13.96 20,484 Skeldon9,569 47.78 457,155 14.38 31,782 Albion8,554 59.98 513,083 11.22 45,746 Rose Hall5,852 52.57 307,613 14.24 21,605 Blairmont5,646 69.17 390,574 11.84 33,000 East Demerara6,024 44.46 267,815 13.85 19,342 Wales 4,719 48.41 228,467 13.59 16,809 Uitvlugt 3,947 51.20 202,094 13.18 15,330 Total44,311 53.41 2,366,801 12.89 183,615 Estate INDUSTRYFarmers 23,625 tonnes below the budgeted target of 80,270 tonnes.
The second crop realised a production of 126,970 tonnes of sugar, with a deficit of 32,273 tonnes below the target of 159,243 tonnes sugar.

While cane yields in the second crop were significantly better than the first crop, the entire crop could not be taken off.

This happened as a result of a delayed start to the 2nd crop of between two and six weeks on the different estates, due in part to bad weather.
Ultimately, all estates with the exception of Uitvlugt closed their crop in the latter two weeks of December 2016 with unharvested mature canes.

Estates‟ factories continued to suffer extended periods of out-of-cane which resulted mostly from labour shortages among the harvesters, and under-utilization of the mechanical harvesters and Bell cane-loaders.

Harvesters‟ turnout for 2016 averaged 54.4%, with a poorer turnout for the 1st crop.

Strikes resulted in a significant loss of harvester man-days.
The shortage of labour resulted in the extension of both crops into the rainy periods.
TABLE 3: Average Percentage (5) Turnout for Cane Harvesters on Each Estate for 2016 INDUSTRY RHE BCF Estate / Crop 1st Crop 50.2 56.0 46.9 2nd Crop 56.7 56.2 57.7 54.4 56.2 54.1 Year EDE GV 53.9 42.1 57.1 49.4 55.8 46.6 AN/PM 52.8 61.9 58.5 ICBU 48.5 53.0 50.8 SWR 53.0 62.3 60.2 TABLE 4: Out-of-Cane Hours for each Factory/Estate for 2016 Estate / Crop GV 1st Crop 512.6 2nd Crop 598.4 1,111.0 Year SWR AN/PM 391.8 157.3 543.0 245.1 934.7 402.4 RHE 196.5 429.6 626.1 BCF 244.1 293.7 537.9 EDE 406.7 370.7 777.4 ICBU 565.3 536.6 1,101.8 INDUSTRY 2,474.2 3,017.1 5,491.3 LAND PREPARATION AND PLANTING Land Preparation In 2016 the industry completed 4,960.3 hectares of land preparation against a budget of 8,467.9 hectares (58.6% achievement).
Of this total, farmers‟ tillage was 234.5 hectares (24.7% of the farmers‟ tillage programme).

Shortfall in tillage was mainly as a result of a late start of the harvesting and tillage programmes, due to continuing mid-year rainfall, and low availability and utilization of the field machinery fleet.

The average opportunity days available to the estates were of 25 and 42 days for the 1st and 2nd crops, respectively.
At the end of 2016, the estates have a total of 721.6 hectares of prepared land (under wet fallow conditions) that was available for planting.

Planting 8 Estates completed 4,792.3 hectares of planting against a budget of 7.349 hectares (65.2% achievement), while farmers planted 285.4 hectares against a budget of 950.0 hectares (30.0% achievement).
Farmers were, in the main, still hesitant / reluctant to undertake tillage and replanting of their fields, or to take up additional lands that were available, citing their reluctance to do so as being due to the high investment costs, and the continuing low price being paid for sugar.

The shortfall in planting on the estates occurred despite an extension of the planting season by four to six weeks in the respective crops.
The deficit was partially a result of the limited amount of land tilled and progressively made available for planting, but more so the inadequacy of labour when required to undertake planting.

Supplying Estates were able to complete 3,217.1 hectares of supplying, against a budget of 3,062.1 hectares (105.1% achievement).

Albion and Uitvlugt estates surpassed their supplying targets by 400.3 and 223.0 hectares, respectively.
Estates took advantage of favourable rainy weather conditions during the mid-year and December periods to maximize supplying, especially in an effort to make up for the shortfall in planting.
TABLE 5: Industry’s Land Preparation, Planting and Supplying Achievements for 2016 PROVISION OF TECHNICAL SUPPORT During 2016 the Agriculture Services Department continued to provide support to Estates and private farmers, ensuring that there was optimal availability of agricultural inputs such as fertilizers and pesticides, and technical skills to address critical issues.
However, the unavailability of sufficient funds affected the replacement and maintenance programmes for the current fleet of field machinery, implements and other equipment, as well as water management and transport infrastructure.

As a result of this inadequate expenditure on equipment and infrastructure, all Estates continue to operate with some amount of deficiency.
During the year the Department was involved in providing technical support and supervision for a number of initiatives, including: 9 Tillage PlantingSupplyingSkeldon1,026 1,016 487 Albion901 1,178 892 Rose Hall454 546 219 Blairmont650 716 334 East Demerara731 580 271 Uitvlugt 911 757 1,014 Industry4,675 4,792 3,217 ha i.
New and ongoing civil works, which included the refurbishment of several buildings at the LBI Estate that when completed will facilitate the relocation and consolidation of all Head Office operations to LBI; and the construction of a new office building at Enmore Estate to facilitate consolidation of the East Demerara Estate‟s administration; ii.

The evaluation of field machinery and equipment that can be adapted and introduced for routine agricultural use; iii.
Conducting cadastral surveys and preparing estimates for (a) developing lands identified for agricultural diversification at Wales Estate, and (b) for establishing road linkages between the Wales farmers and the Uitvlugt factory; iv.
Monitoring the condition of drainage and irrigation (D & I) infrastructure and liaising with the National Drainage and Irrigation Authority (NDIA) for maintenance and improvements where applicable; v. Determining the extent of D & I services currently being provided to communities by Guysuco, and the costs associated with these services; vi.
Determining the cost of providing road access to non-cane farmers and other parties who operate within or aback of estate lands, and preparing a proposal for recovering such costs; and, .

The ASD also facilitated a preliminary review of the Guyana Defence Force‟s farming operations at Garden of Eden, with a view of improving land use, waste disposal, drainage and irrigation.
Staff of the Department were also routinely involved as resource personnel for training programmes conducted by the Estates, and also by the workers‟ union – the Guyana Agricultural and General Workers Union (GAWU).
AGRICULTURAL INFORMATION MANAGEMENT SYSTEMS The Agricultural Statistics arm of the Department continued to aggregate and collate agricultural production data from all Estates, and to facilitate the use of such data as means of monitoring progress, timeliness of agricultural operations and the use of resources on the estates.
The continual improvement of the daily and weekly operation reports and the Field Record System (FRS) and the training of Estate personnel in the use and updating of these in-house monitoring tools, were key areas of focus for this sub-department.

Collaboration with the Information Systems Dept.

in the pilot testing of the CanePro agricultural information system software at the East Demerara Estate, and the transfer of data from the FRS to CanePro was also an important project for the Statistics unit.
Monitoring of work standards; verification of field estimates; agricultural quality control, and investigations of anomalies in agricultural practices and results were also done on a routine basis by the agricultural specialists in the Department.

The agricultural engineers in the Department continually monitored the maintenance, availability and appropriate utilization of field machinery and equipment on the Estates.
They also increased focus on the quality of spares and 10 materials used for machine and equipment repairs, and the quality of workmanship accepted by Estates‟ field workshops.

AGRICULTURAL ENGINEERING / CAPITAL WORKS During 2016, the Central Workshop (CWS) at Albion manufactured 34 new cane punts, and assisted the Albion Estate with re-bottoming another 122 punts.

In addition, the CWS performed 276 major repair and fabrication works for the different estates and other facilities in Guysuco.
A total of 2.204 billion dollars (GYD) was budgeted for capital projects in the agriculture department.

However, due to the severe shortage of funds only 107 million dollars (4.85% of amount budgeted) was approved and expended.

AGRICULTURE RESEARCH In 2016, the Department‟s scientists have contributed monitoring and advisory support to estates where necessary.

The department continues to support the Estates in technical advice and support.
The weather overall in 2016 was reasonable when compared to the very dry 2015, the mean annual rainfall was 2055 mm, just over 2% above the historical mean of 2002 mm.

In terms of annual distribution, extreme dry conditions prevailed during the months of January to March, with the Berbice region being driest and Demerara not far behind, with actual readings for each month recording levels well below the Long Term means for the respective months across the Industry.
Emphasis continued to be placed on the High Quality Selection Programme which is being run with close cooperation with the High Quality programme of the West Indies Sugar Central Sugarcane Breeding Station; the department commenced 2016 with 118,729 seedlings, 1,600 clones and 2,381 varieties under evaluation.

During the year 47,715 seedlings were planted for stage I evaluation, 15,023 of which were established to facilitate analysis of the crosses as family.
In addition, 1,913 clones were advanced to stage III and assigned their permanent identification numbers.

Ten very promising varieties were selected for further evaluation in Stage VI with the prospect of becoming commercial varieties in the near future.

Throughout the year there were no major outbreaks or severe widespread infestation and damages by any of our major or minor insect or rodent pest, throughout the year.
Seasonal rodent outbreak was somewhat widespread across the industry during the November-December.

Weed management in Guysuco continues to emphasise pre-emergent or early post emergent herbicide applications.

When effectively utilised, these chemicals give good control and result in the minimal use of post-emergent spot spraying.

Screening new formulations and combinations, for efficacy and phytotoxicity continued at all estates.
Efforts to bring existing problem weeds to a manageable level continued throughout 2016.

The department continues to work to with the Ministry of Agriculture, the Pesticide and Toxic Chemical Control Board (PTCCB) and Environmental Protection Agency (EPA) on safe 11 working area and practices for aerial application of agrichemicals.
The Central Analytical & Environmental Monitoring Services (CAEMS) Forty Four Thousand Seven Hundred and Ten (44,710) analyses were conducted on Eight Thousand Eight Hundred and Sixty Eight (8,868) samples during the year.

The majority of these analyses were required for the monitoring of routine operations and research projects carried out by the Corporation‟s Agriculture and Factory Departments.

FACTORY OPERATIONS PRODUCTION Sugar production for 2016 totalled 183,615 tonnes.
The „El Nino‟ weather phenomenon in the 1st crop resulted in severe cane shortages and loss of production by 23,624 tonnes to 56,645 tonnes against an estimate of 80,270 tonnes.

The 2nd crop production of 126,970 tonnes against an estimate of 137,764 tonnes was affected by factory problems and delayed start of grinding.

Both crops were also affected by labour shortages particularly in the Demerara locations affecting continuous cane supply.
These challenges also resulted in very high diesel engine use, an extended crop period and a consequential increase in cost.

WEEKLY GRINDING HOURS Average weekly grinding hours for all factories were only 102.45 hours against a budget of 130.0 hours, however, with excellent performance from Blairmont, followed by Albion.
TABLE 6: Average Weekly Grinding Hours for 2016 FACTORY 1st CROP 2nd CROP YEAR 2016 SKELDON 85.48 104.51 100.45 ALBION 97.72 110.57 105.99 ROSEHALL 91.41 100.60 97.68 BLAIRMONT 122.31 121.91 122.05 ENMORE 86.57 106.16 99.56 WALES 84.80 96.12 92.14 12 UITVLUGT 91.04 94.50 92.82 INDUSTRY 95.65 106.00 102.45 OVERALL TIME UTILIZATION Out of cane due to labour shortages and poor weather condition at all locations was significantly greater in 2016 compared to 2015.
TABLE 7: Factory Time Loss (Hours) due to Strikes, Out of Cane and Factory Issues FACTORY STRIKE OUT OF CANE FACTORY TIME LOSS SKELDON 132.50 402.05 674.73 ALBION 136.59 934.74 391.70 ROSEHALL 433.26 626.07 486.80 BLAIRMONT 263.83 537.87 308.98 ENMORE 179.32 777.40 594.82 WALES 126.08 1111.00 392.85 UITVLUGT 32.75 1101.84 200.69 POWER GENERATION Steam generation and power house operation were the major areas of lost time at all locations, more particularly, at Skeldon, Rose Hall and East Demerara.
Achieving the scheduled maintenance of engines and generators timely was a major challenge over the year 2016.

Failure of the 2.5MW turbo alternator, critical to operations at East Demerara Estate, resulted in excessive use of diesel generators and high usage of diesel fuel to generate electrical power in order to allow grinding operations to continue in the 2nd crop.

The ex-Wales 2.5 MW set of similar make is identified as a replacement.
13 The poor state of the Skeldon boilers resulted in a premature end to the 2nd crop grinding operations.

Skeldon Energy Inc. contracted external boiler examiners who pronounced the boilers unsafe for operation and recommended immediate upgrade and replacement of high pressure components for each boiler.

ISO CERTIFICATION ISO 9001 Ratification Audit was successfully retained at Blairmont and Enmore factories.

CAPITAL EXPENDITURE Capital expenditures were limited due to financial difficulties.
Approximately $200M was spent across all factories from a proposed budget of $1.5 Billion.

PACKAGING PLANTS The Enmore and Blairmont packaging plant packaged for local and overseas market a total of 36,335 tonnes of sugar which represent 70% of the sugar produced in 2016 for both locations.

DRAINAGE PUMPS Factory operation continues to overlook the maintenance and operation of the sixty four Drainage pumps located between Uitvlugt and Skeldon factories.
TECHNICAL SUPPORT Three consultants were recruited to lend technical support to the department over the period and additional recruitment is planned, especially in the areas of Electrical Engineering and Instrumentation to boost the capabilities of factories.
HUMAN RESOURCES HUMAN RESOURCES MANAGEMENT COMMITTEE Approval was given by the Board at the meeting of January 12, 2016 for the establishment of the Human Resources Management Committee (HRMC), which was composed of the following:  Human Resources Director – Chairman 14  Finance Director  General Manager, Agricultural Services  General Manager, Technical Services  Head, Agriculture Research Centre  Head, Information Systems Department The Committee was established to oversee the revised Performance Management and Development process and for coordinating a new Corporate Succession Structure, amongst others.
HUMAN RESOURCES MANAGEMENT Workshops were held in the following critical areas of Human Resources Management during 2016 to promote best practices:  To Review the Corporate Human Resources Manual  To Develop a Corporate Communication Strategy  To Review Occupational Health and Safety Policy  To Review Development of Quality Assurance  To Draft an Education, Training and Development Framework  The Implementation of Performance Appraisal System  To Review the Roles of the Industrial Welfare Officers, Community Development Officers, and Industrial Welfare Officers/Community Development Officers Workshop groups consisted of Human Resources Practitioners and counterparts from Finance, Agriculture, Factory, Agriculture Research, Agriculture Services and Factory Operations Departments.
TRAINING AND DEVELOPMENT A renewed emphasis was placed on training and development in 2016 with the reintroduction of induction programmes, along with the achievement of both in-house and external training programmes on the following areas: IT Audit for Non-IT Auditors and Practitioners  Sugar Cane Agronomy  Rodenticides   Maximising Momentum in the Office  Documentation Requirements for Management System  Understanding the Requirements of the ISO 9001:2015 Standards GuySuCo Training Centre – Port Mourant Graduates 15 GTC-PM held its 55th Apprentices Graduation Ceremony on August 3, 2016.
Fifty seven (57) apprentices graduated after successfully completing the four year Apprenticeship Programme, except for Sugar Boilers who completed a three year programme.

The areas of training include:  Electrical  Fitter Machining  Agricultural Mechanic  Auto Electrician   Sugar Boiling Technology Instrument Repair Mechanic - - - - - - 7 17 14 6 8 5 Intake Fifty five (55) Apprentices were enrolled in 2016, inclusive of one (1) female.

Two apprentices subsequently left the programme.
Apprenticeships Management Committee An Apprenticeships Management Committee was established and was tasked with the following:  Conducting an examination of the second year curricula for the various trades considering technicality and relevance in the field, factory and field workshop  Examining the academic capacity and delivery competence of the Instructors  Reviewing the estate programmes for 3rd and 4th year Apprentices  Examining the role of Coordinator for the development of a consistent range of responsibilities and methodologies for delivery of programmes across all locations  Training Instructors and Coordinators in teaching methodologies  Upgrading the capacity of the training for the utilization of computerized technology  Examining the regrading and reclassification scheme for consistency  Addressing any other issues that arise  Preparing a comprehensive report to inform corporate policy and for implementation In-Plant Apprentice Training Twenty seven (27) students participated in a one-day per week In-plant Training at Albion/PM Factory.
Seventeen (17) Fitting and Machining Apprentices also completed a one week In-Plant programme at Albion/PM Factory, while there was a six week In-Plant Training at the same location.

National Training for Youth Empowerment – Evening Class Programme The GuySuCo Training Centre, in collaboration with the Board of Industrial Training, continued to offer its Evening Class Programmes and a 140 persons graduated.
16 Technical Vocational and Educational Training (TVET) Encounter Mr. Sean Hamer and Mr. Delvin Austin, Monitor Inspectors from the Technical TVET Council, conducted a Quality Assurance Inspection at GTC/PM from November 21 – 24, 2016 in order to assess the Centre readiness for TVET.
Collaborative Efforts - Guyana School of Agriculture & The University of Guyana The Training Unit conducted discussions with the Academic Staff of the Guyana School of Agriculture with regard to the performance of GuySuCo‟s students.

These included three (3) Field Foremen and one (1) Field Chargehand.
The main areas of discussion included the following:  Overview of the two (2) year course curriculum  Duration of Sugar Cane Agronomy course one term is considered too short to fully benefit GuySuCo‟s Cadets  Quality of lectureship in Fisheries and Micro Biology A similar meeting was held with the GuySuCo‟s cadets at the University of Guyana.
Assistance to Study Nine (9) employees benefitted from the scheme in the sum of $687,346 to pursue studies in the following disciplines: accounting, information technology and human resources development Bursary Awards Forty-two (42) children of employees throughout the Industry who wrote the National Grade Six Assessment were awarded bursaries by the Corporation.

The total sum awarded to the selected students was $252,000, and will amount to $1,680,000 for the full five years.
RESUSCITATION OF SPORTS The Chief Executive was instrumental in the resuscitation of the Sports Committee, which is involved in coordinating and facilitating sports activities across the Corporation.

The Human Resources Department also provided support to the coordination of sports activities in observance of the Jubilee and Agriculture Month Celebrations.

The GuySuCo Pheasants emerged as the winners of the Ministry of Agriculture Inter-Agency Sports.
OCCUPATIONAL HEALTH AND SAFETY Safety Committees Programmes 17 There were 265 Occupational Health and Safety Committees meetings, where 1,660 hazards were identified during the reporting year.

Approximately 78 % of the safety violations were corrected.

Fire Safety Fire incidents responses fell to 71; representing 29% fewer calls than in 2015.

These incidents resulted in fire crews responding to 48 calls on the estates and 23 in the neighbouring communities.
Training A total of 5,633 employees attended OHS education and training sessions.

The topics covered essential information relating to the OHS Act 32/1997, Safe System of Work, Safety Statistics, Fire Safety, Incident Reporting and Investigation, inter alia.

452 employees attended counselling sessions, primarily in relation to frequent personal injuries, and related absenteeism.
Workshops were also done to review the structure, role and responsibilities of Occupational Health and Safety Committees, and Estate Health and Safety Officers, Training and Awareness Programmes, medical surveillance and substance abuse, medical management of injury cases, and to update the Safety Booklet, The recommendations from the Workshop were compiled into a revised Manual to be distributed for use in 2017.
Injuries/Accident Statistics Lost Time Accidents per 100,000 man-hours worked was 4.24 - the second best achievement in 17 years.

However, it represented a meagre improvement of 2.7% on 2015.

There were four (4) serious accidents in the factories: Rose Hall Estate (2), Skeldon and Blairmont Estates (1) each.

Lost Man Days The average Lost Time per Lost Time Accidents was 17 days, representing an increase of 21.4 % when compared to 2015.
Fatal Injuries During the year, two fatal injuries were caused by bee stings in the Agriculture operations at Blairmont and Skeldon Estates.

18 HEALTH SERVICES Health Programme GuySuCo‟s Health Services Department provides appropriate, effective and timely medical care to employees, their dependents and pensioners.

It continued to be a vital part of the benefits offered to workers, staff and their families.
Important aspects of the function of the Health Service included:  Periodic and Pre-employment Medical Examinations  Health Education and Health Promotion amongst the Workforce  First- Aid and Emergency  Disease Surveillance/Monitoring and Evaluation  Determination of Fitness for Duty  Improving quality of working life Contributory Hospitalisation & Maternity Scheme (CH&MS) Due to increasing costs in recent years, a comprehensive review of the CH&MS was undertaken and resulted in Board approval on October 4, 2016 for increased benefits, and as a consequence, adjustments in contributions.
The CH&MS Booklet was revised accordingly.

Health Education & Health Promotional Activities Health issues discussed at Primary Health Care Centres included Diabetes, HIV/Aids, Diet and Nutrition, Work Stress, Obesity, Tobacco, Physical Fitness and Exercise and Cancer.

Statutory Medical Examinations A total of 6,288 annual medical examinations were conducted across the Corporation.
Man Days Lost – Sickness/Injuries Man-days lost to sickness and injuries had a significantly negative impact on production and productivity.

Total Man Days Lost (Sickness and Injuries) in 2016 was 84,824, as compared to 84,892 in 2015.

Medical Discharges A total of 85 employees were evaluated and medically discharged, compared with 86 in 2015.
Drug Abuse 19 In keeping with the Corporation‟s commitment to a safe and healthy work environment, it is the Corporation‟s aim, through its Alcohol and Drug Abuse Policy and supporting programmes, to manage, control and ultimately eliminate the hazards to health and safety created by alcohol and drug abuse, from the workplace.

Throughout 2016, Estate Medical Officers and Medexes held eighteen (18) sessions on Alcohol and Substance Abuse at Primary Health Care Centres.
The Chief Medical Officer and Estate Medical Officers delivered presentations to workers at the GAWU Labour College.

The Alcohol and Substance Abuse Policy was being revised and work initiated for the establishment of the Employee Assistance Programme (EAP) to address substance abuse and workplace stress.

Disease Trends Hypertension, Diabetes, Respiratory Tract Infections and Arthritis were the four most common diseases seen at the Primary Health Care Centres in 2016.
This has been the trend over the past several years and is not likely to change significantly in the near future.

In spite of their dominance, Hypertension and Diabetes were better controlled - 78% control of Diabetes and 84% of Hypertension.

Total number of visits for Hypertension and Diabetes in 2016 was 30,635 and 17,158 respectively.
These figures represent an increase in visits for Hypertension and Diabetes in 2016 when compared with 2015, for which Hypertension was 27,512 and Diabetes was 16,785 visits.

First-Aid & Emergency Service All Primary Health Care Centres are equipped to handle emergencies.

Primary Health Care Centres Staff were trained in the use of protocols to manage emergencies.

In 2016 common emergencies were trauma and lacerations to lower extremities and low back injuries.
Serious cases were treated and transferred to hospitals by Estate Ambulances.

A fleet of nine ambulances made 5186 trips to hospitals transporting patients.

First Aiders on all locations benefited from first-aid refresher courses conducted by Medexes.

First Aid supplies were adequate except for a brief shortage of Oral Rehydration Salts, which is used for cramps and diarrhoea.
COMMUNICATIONS With the appointment of the Senior Communications Officer, a new Corporate Communications Strategy was created, and approved by the Board of Directors.

20 The approaches included in the strategy were Communications, Social Mobilization and Advocacy, while the techniques used were Corporate and Strategic Communications, Social Mobilization, knowledge management, change management, partnership building and team building.
The aim was to provide support for the execution of the wider corporate strategic initiative.
Its overall goal was to:  Develop relevant communiques for a variety of purposes  Disseminate information to internal and external audiences as appropriate  Support the corporate strategy the execution of communications, management, investors relations; and promote corporate responsibility relations, crisis communications, such as media through various modes of reputation  Support behavioural change and build strategic partnerships The following modes of communications were used to disseminate information to the relevant stakeholders: Press Releases Approximately sixty (60) Press Releases and Letters to the Editor were disseminated to various media agencies, both print and broadcast.
These included Stabroek News, Kaieteur News, Guyana Chronicle, Guyana Times; Capital News, Demerara Waves, News Room, Nightly News, Six O‟clock News, News Update, inter alia.

GuySuCo Round Up The format for the television programme, GuySuCo Round Up, was changed to reflect the range of the Corporation‟s operations, history, personalities, human interest and contributions to community and national development.
The weekly production is aired on Sundays at 18:30 hrs and rebroadcast on Wednesdays at 08:00 hrs on NCN 11.

Estates’ Newsletters Most Estates have resumed production of newsletters.

The Communications Department provided support in developing a common template for all estates, in addition to editing on a monthly basis.

While all estates have not yet developed the rhythm of a monthly production, some have been performing exceptionally in ensuring that their production is regular.
The Communications Department produced 11 Newsletters and a total of 12 were produced by estates.

News Bulletin - Insight The Insight - news bulletin, produced by the Communications Unit, is a product primarily for internal audience.

However, it is also distributed externally since it contains relevant information 21 which would be of interest to the media and other stakeholders.

Currently, it is produced bi- monthly but ideally; the aim is to circulate it on a weekly basis.
Campaigns Three campaigns were launched in June 2016:  In June, the New GuySuCo concept was launched.

This attempted to capture the essence of the direction of a Diversification Division that would focus on a variety of projects, including aquaculture, fruit crops, dairy farming, livestock farming and rice cultivation.

 The One GuySuCo concept was also launched in June, as a part of the social mobilization programme.
It is an aspiration and promotes greater internal collaboration, synergies, partnerships and team building and will be used to bring on board employees at all locations and divisions, and to promote shared values within the Corporation.

 At the same time the Putting GuySuCo First internal campaign was launched.

This was a mechanism initiated to achieve the One GuySuCo and realize the goals and objectives of the New GuySuCo.

New Website A new website was constructed to replace the old one.
The reconstruction addressed three key areas; these are technology, layout and content.

Communications and Team Building Training The Senior Communications Officer facilitated two (2) training sessions on Team Building and Communication.

These were held under the theme “Using Communications to Improve Results”.

The Communications Training was done with both Senior and Junior Managers.
The aim of this training was to equip participants with the skills to communicate effectively to both internal and external target groups.

Over 200 participants were trained in Team Building.

INDUSTRIAL RELATIONS Integration of Enmore & LBI Estates The Corporation and the Unions (GAWU and NAACIE) met during the period April to June 2016 on the integration of the LBI and Enmore Estates into East Demerara Estate.
The matter was discussed and agreed of a total of 822 employees, 780 were absorbed into jobs within East 22 Demerara Estate and Head Office, resulting in 24 Junior Staff and 18 Mill Dock employees being made redundant.

They were paid severance benefits at a value of G$36.9M in August.
GuySuCo/GAWU/ NAACIE Wages and Salaries Negotiations The GAWU and NAACIE submitted their respective Memorandum of Claims on May 18, 2016, for an 8%, and on March 21, 2016, for 10% increase in wages and salaries, along with fringe benefits for 2016.

Inaugural meetings were held with the GAWU and NAACIE on September 19 and 29, 2016 respectively.

The Corporation presented and discussed its 2016 financial, production and marketing projections with the Unions.
Subsequent meetings were held with GAWU on October 13 and 19, 2016 and with the NAACIE on October 17 and November 7, 2016.

Bilateral discussions with GAWU on October 19 and with NAACIE on November 7 respectively were deadlocked, after the Corporation informed both Unions that due to its dire financial situation it could not afford to offer any increases in 2016.
Conciliations In keeping with the extant recognition agreements between the parties, both Unions applied to the Chief Labour Officer for conciliation.

However, NAACIE‟s application was made outside the stipulated timeline stated in their Recognition Agreement.

Consequently, the matter was not discussed at conciliation.

Further, GuySuCo and GAWU met on three (3) occasions at conciliation, under the auspices of the Department of Labour, to discuss the Union‟s claims.
After presentations from both parties, with no inclination to change positions, the Labour Officer declared the matter deadlocked.

GuySuCo/GAWU Annual Production Incentives Negotiations 2016 The GAWU submitted its proposal for Annual Production Incentive (API) on November 8, 2016, proposing a payment of one day‟s pay (API) for every 32,500 tonnes of sugar produced.

The parties met on November 24, 2016, when the Corporation informed the Union of its inability to award any API for 2016.
The parties agreed that they had reached an impasse and the Union applied for conciliation.

The parties met at conciliation under the auspices of the Department of Labour on December 22, 2016 and after presentations from both parties, who remained steadfast in their respective positions as stated at the bilateral, the conciliator informed the parties that they had reached an impasse and the matter was declared deadlocked.
Minimum Rate 23 As a result of Order 15 of 2016 made under Section 8 of the Labour Act Cap: 90:01 the minimum rate per hour was increased from $202 to $255, resulting in the Corporation‟s minimum for both the Guyana Agricultural and General Workers‟ Union (GAWU) and Guyana Labour Union (GLU) categories being increased to $255 per hour effective January 1, 2017.

Demerara Sugar Terminal (DST) Discussions began with DST employees and GLU to have a partial review of some of the jobs values.
Terms of Reference were agreed, and two meetings were held but ever since the Union‟s team has not attended further meetings.

In the meantime, the representational status of the GLU was challenged via a Poll conducted under the purview of the Trades Union Recognition Board.

Preliminary results indicated that GLU lost at the polls.

Work Stoppages The Corporation recorded a total of 148 strikes resulting in 44,472 mandays lost in 2016, compared to 193 strikes resulting in 70,129 mandays lost in 2015.
This is the lowest in five (5) years.

There were two one-day strikes across the industry in October for wages, salaries and fringe benefits increases which contributed significantly to the increase in mandays lost for the year with 5,845 and 4,105 mandays respectively.

The intensity of these strikes has been significantly reduced in 2016 when compared to 2015, when 19,799 and 24,802 mandays were lost to general strikes across the industry for Wages and API.

TABLE 8: Strikes by Estates - 2016.
Location Skeldon Albion Rose Hall Blairmont East Demerara Wales Uitvlugt Total 1st Crop Strikes Mandays Lost 3,783 13 2,855 13 3,557 13 2,533 9 2,709 21 5,053 9 1,877 5 22,367 83 2nd Crop Strikes Mandays Lost 2,896 7 3,380 11 6,580 15 4,716 13 2,623 13 846 2 1,064 4 22,105 65 Cane Harvesters accounted for a total of 92 strikes in 2016 with 29,261 mandays lost (62.2 % and 65.8% respectively), as they continued to demand exorbitant prices for obstacles, non- acceptance of work, and to cut and stack, etc.
24 TABLE 9: Comparative Analysis of Strikes from 2011 – 2016 Year Work Stoppages Mandays Lost Wages Lost ($M) 2011 221 37,639 73.5 2012 203 50,230 117.5 2013 233 38,121 104.5 2014 194 32,064 96.3 2015 193 70,129 181.5 2016 148 44,472 116.2 Production Incentives A total of 21 tax free days‟ pay was awarded to qualified employees as Weekly Production Incentive (WPI) across the industry, comprising 7 and 14 days for the 1st and 2nd crop respectively in 2016.
In 2015, employees benefited from 94.4 days as WPI, with 25.50 days in the 1st crop and 68.91 days in the 2nd crop.

The data is indicative of the estates‟ failure to work towards achieving their respective weekly production targets in 2016.

The circular that awarded prorated Weekly Production Incentives on 90 to 99% achievement of the targets was repealed prior to the commencement of 1st Crop, 2016.

Disciplinary Matters There was a total of 234 incidents in which employees had to be disciplined.
Corrective measures were instituted in respect of 164 cases, of which 70 resulted in punitive actions being taken – 57 suspended and 13 dismissed.

GuySuCo’s Disciplinary Procedure and Code Guide A review exercise was initiated for the update of GuySuCo‟s Discipinary Procedure and Code Guide.

The revised document would be completed in 2017.


Transition – From Wales Estate In January 2016, Stakeholders were informed that Wales Estate would be going out of sugar production at the end of 2016 and would move into diversified projects.

The employees from the various categories who would not be utilized in these diversified products would be offered redeployment to Uitvlugt or be deemed redundant, where applicable.
Union Interventions – re Diversification In May the GAWU & NAACIE filed an injunction preventing the payment of severance to employees who were affected by the Wales diversification out of sugar.

Further, on August 2, the GAWU held a candle light vigil at the Factory and on August 9, 2016 a picketing exercise at the President‟s Office, pertaining to the closure of Wales Estate.

Severance 25 The first phase of separation saw 94 Crop Husbandry employees made redundant.
Those employees received their redundancy payment at a total cost of G$81M in October 2016.

Further, other employees that accepted redeployment were transferred.

The second phase of transition to determine the placement and reaction of the remaining employees from within the Field, Factory and Administration is on-going, with the engagement of the Unions going into 2017.
The Corporation and the Unions met on December 14, 2016 to formalise the process and document the format to guide and facilitate future discussions.

MARKETING EUROPEAN UNION MARKET Bulk Raws The Guyana Sugar Corporation Inc.‟s sugar exports to the European Union (E.U) benefits from duty free access.

Bulk sugars to the E.U have been exported to Tate and Lyle Sugars with the Corporation had signed a long term commercial contract.
During 2016 a total of 99,094 tonnes of bulk sugar was exported of which 18,558 tonnes went to Portugal and 80,536 went to the United Kingdom.

With a smaller than anticipated 2016 crop production the Corporation was unable to take advantage of the higher spot price that was available to Europe in August 2016.

Special Sugars The export in special sugars to Europe was only 480 tonnes compared to 638 tonnes in 2015.
The decline in export to special sugar can be attributed to the breakages of Turbo Alternator sets at Enmore Estate which resulted in our inability to produce the specified sugar that was requested by our customer in Italy.

These further hindered our Marketing Brokers effort to further penetrate this segment of the market.
USA Pursuant to its obligations under the World Trade Organization the United States of America (USA) granted to Guyana a duty free tariff rate quota of 12,636 metric tonne of raw value sugar for Financial Year 2017 (1 October 2016 – 30 September 2017).

The Industry also benefitted from a waiver by the United States Department of Agriculture to deliver additional increases of sugar from Fiscal Year 2016 in Fiscal Year 2017.

This amounted to 2,803 MTRV.


26 As such, in year 2016 the Corporation was able to export to the USA 15,439 metric tonnes raw value of sugar or 14,728 metric tonnes of sugar.

All sugars exported to the USA in 2016 were in raw bulk form.

CARICOM AND REGIONAL TRADE The inevitable erosion of the traditional trade preference in Europe the Corporation has heightened its effort to focus on meeting the needs of the markets within the Caribbean.
Being a part of the regional trade block Caribbean Community (CARICOM) the Corporation is able to trade its sugars without restrictions inside the block.

In 2016 the Corporation supplied 23,973 tonnes of bagged sugars to member states an increase of 23.69% over 2015.

The countries supplied were namely: Trinidad, Suriname, St Lucia, Jamaica, Dominica, Grenada, Antigua, Nevis and St Vincent.

The tonnage of bagged sugars supplied in 2015 to CARICOM amounted to 19,863 tonnes.
There however, was a marked decline in supply of packaged sugar to the CARICOM market.

The packaged sugar supplied to CARICOM in 2016 amounted to 2,449 tonnes as opposed to 4,106 tonnes in 2015 representing a decline in sales of 40.35%.

This decline is attributed to several factors.

Most notably being the breakage of our Turbo Alternator sets at Enmore which impacted negatively on the production and delivery of packaged sugars to customers.
Additionally sales to our Barbadian customers were curtailed due to a levy being charged on the importation of packaged sugars from Guyana.

The sachet market has become competitive regionally and in 2016 the Corporation sold 365,000 sachets LOCAL MARKET The sales performance of sugar on the local market continues to be dominated by the sale of bagged sugars.

In 2016 the Corporation sold 17,282 tonnes of bagged sugars as opposed to 18,137 tonnes in 2015.
The sale of packaged sugar in 2016 was 4,101 tonnes compared to 2,974 tonnes in 2015.

Totals sales to the local market amounted to 21,383 tonnes.

All sugars disposed on the local market were sold to wholesalers, bakeries, food processors, supermarkets and our distributors.

One new product, Blairmont Crystal was launched in 2016 on the local market for the Guyana‟s 50th Independence with good response from the consumers.
CUSTOMER SERVICE The Marketing Department has continued to function in line with the Quality Management System of ISO 9001 with great emphasis on customer satisfaction.

Research activities continue 27 to assist the Corporation improving on its products and services which are an integral element of the department's work.

DIVERSIFICATION In May 2016 the Diversified Products Division was established in the Corporation.
A Diversification Sub-Committee of the Board was also established to oversee the Diversification Project Products Division.

The members of the Sub-Committee include two Board Members and the Chief Executive Officer.
AQUACULTURE With the plans for sugar operations to conclude as of December 31, 2016 and the estate to transition into diversification, the Corporation contracted the US based company, Aquasol, Inc., fish farming consultants, to execute a site analysis at Wales Estate and prepare a detailed feasibility study on the potential of aquaculture farming, utilising 300 ha of land.
Aquasol, Inc. successfully completed the site analysis and with promising results commenced work on the full feasibility study which is expected to be completed in the 1st half of 2017.
SEED PADDY PILOT PROJECT GUYSUCO has undertaken to do a pilot project on the cultivation of premium priced seed paddy on approximately 350 – 400 acres of land at Wales Estate, based on the suitability of the soils (virgin soils to rice cultivation), the short maturity time of rice compared to other crops, yielding revenues within 1 year, and the eventual requirements of its by-products such as the rice bran for aquaculture feed which will assist in reducing aquaculture‟s cost of production.
This pilot project will be supervised and funded by the Guyana Rice Development Board.

Land clearing activities began in 2016 with planting of the 1st crop of seed paddy anticipated by the first half 2017.

OTHER PROPOSED ACTIVITIES The Ministry of Agriculture commissioned a Task Force to conduct a detailed evaluation of the diversification options for Guysuco.

The Task Force submitted its report in October 2016.
In addition to aquaculture and seed paddy, the report recommended the following feasible diversification options: 28 Livestock inclusive of beef and dairy cattle, pigs, small ruminants Value added processing – juice and milk plants Ducks Apiculture Fruit crops Other high value crops such as rambutan, acai berry i. ii.

iii.

iv.

v. vi.

vii.

Grains and legumes viii.

Aromatic rice Implementation of these activities will commence in 2017 pending financing.
29 DRAFT UN-AUDITED FINANCIAL STATEMENTS The audit of the following financial statements has not yet been completed and as such, the figures stated are subject to change.
30 20162015$M$MASSETSNon current assetsProperty, plant and equipment89,049 94,602 Deferred tax asset28,367 26,981 Investments272 335 Investment in subsidiary22 22 Total non current assets117,710 121,940 Current assetsInventories3,414 3,481 Standing cane6,961 4,132 Product stock1,643 1,279 Trade receivables2,957 3,714 Other receivables3,117 2,864 Prepayments150 514 Related parties336 298 Taxes recoverable- - Cash on hand and at bank776 1,942 Total current assets19,354 18,224 TOTAL ASSETS137,064 140,164 EQUITY AND LIABILITIESShareholder's equity Stated capital10,800 10,800 Revaluation reserve50,849 50,849 Other reserves293 357 Accumulated deficit(40,794) (41,476) 21,147 20,530 Non controlling interest- - Total equity21,147 20,530 Non current liabilitiesDeferred tax liability16,203 16,693 Deferred income2,357 2,417 Borrowings29,985 29,985 Employees retirement benefits32,852 32,826 Total non-current liabilities81,397 81,921 Current liabilitiesTrade payables9,613 9,584 Other payables and accruals17,117 17,252 Related parties1,960 1,794 Taxation2,701 2,623 Borrowings2,742 5,048 Bank overdraft(secured)385 1,412 Total current liabilities34,520 37,713 TOTAL EQUITY AND LIABILITIES137,064 140,164 GUYANA SUGAR CORPORATION INC.CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT DECEMBER 31, 2016COMPANY 31 20162015$M$MRevenue20,183 21,451 Cost of sales27,449 35,041 Gross profit/(loss)(7,266) (13,590) Other income11,720 16,909 Administrative expenses(3,458) (2,479) Marketing and distribution expenses(1,652) (1,712) Operating
 profit/(loss)(656) (872) Finance cost(531) (689) Employees retirement benefits(27) (1,105) Income from subsidiary and others21 3 Loss before tax(1,193) (2,662) Taxation1,875 794 Profit/Loss for the year682 (1,868) Other Comprehensive income:Net (loss)/gain on revaluation of investments(63) (36) Net loss on revaluation of non-current asset- - Other comprehensive income net of tax(63) (36) Total comprehensive Profit for the year619 (1,904) Profit for the year Attributable to:-Equity holders of the parent682
 (1,868) Non controlling interest- - 682 (1,868) Total comprehensive Profit for the yearAttributable to:Equity holders of the parent619 (1,904) Non controlling interest- - Profit for the year619 (1,904) - Basic loss per share in dollars0.06 (0.18) GUYANA SUGAR CORPORATION INC.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016COMPANY 32 CompanyStatedRevaluationOtherRetainedTotalCapitalReserveReservesEarningsEquity$M$M$M$M$MBalance at January 1, 201510,800 50,849 393 (39,608) 22,434 Other comprehensive income- - (36) - (36) - Loss for the year- - - (1,868) (1,868) - Total comprehensive income for the year- - (36) (1,868) (1,904) Balance as at December 31, 201510,800 50,849 357 (41,476) 20,530 Other comprehensive income- - (63) (63) Loss/Profit for the year- - - 682 682 Total comprehensive income for the year- - (63) 682 619 Balance at December 201610,800 50,849 294 (40,794) 21,149 GUYANA SUGAR CORPORATION INC.CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED DECEMBER 31, 2016 33 20162015OPERATING ACTIVITIES$M$M(1,193) (2,662) Adjustments for: Depreciation and write down of assets4,757 4,571 Gain on disposal of property, plant and equipment(14) (7) Net interest531 689 Income from subsidiary and others(21) (3) Operating profit/(loss) before working capital changes4,061 2,587 Decrease/(increase) in inventories68 (86) (Increase) in standing cane(2,829) 1,155 (Increase) in product stocks(364) 26 Increase/(decrease) in accounts
 receivable,prepayments868 (1,566) Increase/(decrease) in amounts due from related parties(37) (41) Increase in accounts payable and accruals(105) 4,945 Increase/(decrease) in amounts due to related parties166 199 Increase in defined benefit pension liability27 1,105 Cash generated from operations1,853 8,324 Interest paid(531) (689) Taxes paid/adjusted78 - NET CASH PROVIDED BY OPERATING ACTIVITIES1,400 7,635 INVESTING ACTIVITIESInterest received- - Purchase of property, plant and equipment(759) (1,767)
 Proceeds from sale of property, plant and equipment1,569 12 Dividends received from investments21 3 Dividends paid to minority interest- - NET CASH USED IN INVESTING ACTIVITIES831 (1,751) FINANCING ACTIVITIESProceeds from borrowing(2,309) 224 Proceeds from Government Grant(60) (4,304) NET CASH PROVIDED BY FINANCING ACTIVITIES(2,369) (4,080) Increase/(decrease) in cash and cash equivalents(139) 1,804 Cash and cash equivalents at beginning of the period530 (1,274) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD391 530 CASH AND CASH EQUIVALENT COMPRISED OF:-Cash on hand and at bank776 1,942 Bank overdraft(secured)(385) (1,412) 391 530 GUYANA SUGAR CORPORATION INC.CONSOLIDATED STATEMENT OF CASHFLOWSFOR THE YEAR ENDED DECEMBER 31, 2016COMPANY