Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697768136924.pdf (Fiji)
Table of Contents Letter to the Minister......................................................................................................... 3 Corporate Statement ......................................................................................................... 4 Chairman’s Report ........................................................................................................... 5 Chief Executive Officer’s Report .................................................................................... 8 About SCGF ...................................................................................................................... 10 Functions............................................................................................................................ 10 Corporate Governance .................................................................................................... 11 Finance & Administration............................................................................................... 13 Lending Activities ............................................................................................................ 18 Loans Cumulative to 2019 .............................................................................................. 19 District Offices.................................................................................................................. 19 Cane Development Revolving Fund............................................................................... 21 New Farmer Assistance Program................................................................................... 21 Micro Insurance Bundled Product................................................................................. 22 Human Resource Management....................................................................................... 23 Information Technology................................................................................................... 25 Audit Implementation Programs.................................................................................... 26 Marketing & Awareness.................................................................................................. 27 Financial Statements for the Year Ending 31 December 2019.................................... 29 2019 SCGF Annual Report About SCGF The Sugar Cane Growers Fund Authority (Fund) was established by Act No.
9 of 1984 enacted by the Parliament of Fiji on 26 July 1984.

All monies and Assets of the Sugar Cane Price Support Fund were transferred to the Sugar Cane Growers Fund under the Act.

The name has been changed to Sugar Cane Growers Fund (SCGF) by amendment Act 12 of 1996.
Functions The function of SCGF is to provide loans to Sugar Cane Growers for the following purposes: (a) (b) (c) (d) (e) (f) (g) Purposes which, in the opinion of the Board, will increase the production of Sugar Cane; Purposes which, in the opinion of the Board will improve efficiency in the planting, growing, harvesting and transportation of Sugar Cane; The carrying out of work which the Board considers necessary or desirable to rehabilitate farms, buildings and other installations damaged, destroyed or affected by floods, cyclones, droughts or other natural disasters; The carrying out of work which the Board considers necessary or desirable to establish sugar cane farms and to construct buildings and other installations on those farms; The carrying out of work which the Board considers necessary or desirable for crop diversification; The making of provision to such extent as the Board considers necessary, for the personal family needs of Growers during periods of financial distress or hardship; and To enable cane growers to participate in commercial ventures, which, in the opinion of the Board, are intended to benefit the cane growing industry.
9 10 2019 SCGF Annual Report Corporate Governance SCGF aims to build sustainable value for stakeholders and in particular for the sugar cane growers and other industry players.

In carrying out its responsibilities and powers as set in the Act, the Board all time recognizes its overriding responsibility to act honestly, fairly, diligently and in accordance with the law.

It is also the responsibility of the Board to take an active role in discussions and promote sound corporate governance best practices.
The governance of SCGF maps out a pathway of transparency, accountability and oversight of the institution by the Board, embedded through Mission, Vision, Corporate and Strategic Objectives.

The Board in addition, provides strategic guidance and advices to Management ensuring the sound management and good governance are maintained.

The Board comprised of six members and were appointed for period of two years.
Chairman Mr. Ariff Ali and Board Member Mr. Pradeep Lal were appointed on 19 January 2017 and on expiry of the term, they opted for non-renewal due to other pressing responsibilities.

The other four members appointed on 09 January 2019 are: Mr. Sundresh Chetty, Mr. Uday Sen, Professor Anand Chand and Mr. Tevita Madigibuli, Mr. Sen is now the chairman, appointed on 19th January 2020 for two years.
Table 1: Board Attendance Board Meetings and Attendance for the reporting period of 11 February 2019 to 05 December 2019.

Board Members No.
Board Members No.

of Meetings Mr. Ariff Ali Mr. Pradeep Lal Mr. Uday Sen Mr. Anand Chand Mr. Sundresh Chetty Mr. Tevita Madigibuli Held 6 6 6 6 6 6 Attended 5 3 6 6 6 6 2019 SCGF Annual Report Administrative Expenses These expenses consist of the following items such as audit fees and services, depreciation, directors’ fees and insurance, growers’ insurance, provision for impairment – loans and staff costs.
In July 2017, SCGF introduced a Micro Insurance Bundle product for active cane farmers through Fiji Care Insurance Ltd.

Annual insurance premium is $52 per active grower and key benefits covered include Life and Funeral, Personal Accident and Fire.

This commitment by the Fund was done for 3 years.


In 2018, Sugar Cane Growers Council contributed $10,000 towards the premium for the year while United Nations Capital Development Fund (Pacific Financial Inclusion Program) contributed a grant of $103,136 towards the planning and operational costs for the Sugar cane farmers’ insurance awareness campaign.

It is also noted that Chairman (Mr. Ariff Ali) and Director (Mr. Pradeep Lal) have opted not to receive board fees and allowances.
Board fees for Director (Mr. Sundress Chetty) are paid directly to his employer – SCGC.

IFRS 16 Implementation – Leases (SCGF Office Rentals) IFRS 16 ‘Leases’ is applicable for annual reporting periods beginning on or after 1 January 2019.

Previously, leases in which substantially all the risks and rewards of ownership were retained by the lessor were classified as operating leases.
These liabilities were measured at the present value of the remaining lease payments, discounted using the Group and Fund’s incremental borrowing rate as at 1 January 2019.

The weighted average incremental borrowing rate applied to lease liabilities as at 1 January 2019 was 7.19%.

The lease liability recognised as at 1 January 2019 was $445,236 and $347,307 for the Group and Fund respectively as set out below.
The associated right-of-use assets have been recognised at an equivalent amount (note 29(a)), and accordingly there was no adjustment required to retained earnings as at 1 January 2019.

Leased assets previously classified as finance leases under IAS 17 and included within property, plant and equipment have been reclassified to right-of-use assets at their carrying amount as at 1 January 2019.
In applying IFRS 16 for the first time, the Group and Fund have used the following practical expedients permitted by the standard: - - - - accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases excluding initial direct costs for the measurement of right-of-use assets as at 1 January 2019 single discount rate is applied to a portfolio of leases with reasonably similar characteristics the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease The Group and Fund have also elected not to reassess whether a contract is, or contains a lease at the date of initial application.
There was no impact on the Group and Fund’s retained earnings on adoption of IFRS 16 as at 1 January 2019.
14 15 16 17 2019 SCGF Annual Report LENDING ACTIVITIES Currently, SCGF has the following loan facilities available for cane growers: Table 4: SCGF Products Type of Loans Portfolio Priority Loans Maximum lending of $5,000 for Farm Development and Planting for Sugar Cane, Repair of Farm Equipment, House Repairs, Education Expenses, Wedding , Drainage, Roading, Weedicides, Borehole Drilling, Medical and Purchase of Working Bullocks and Horses, etc.
Specialised Lending Maximum lending of $75,000 for the Purchase of Cane Farms, Farm Machinery, Cane Trucks, Construction of Farm House, Refinance from other banks and for other purposes provided in the Act.

Loans in excess of $75,000 is referred to the Board.

Loans to Tenants for New Leases Loans to enable growers to acquire New Leases from the iTaukei Land Trust Board, Department of Lands and other Landowners.
Cane Development Revolving Fund Maximum lending of $5,000 for Farm Development and Planting for Sugar Cane granted at zero percent interest rate, repayable over 5 years, with first year being grace period The table below provides the breakdown of loans disbursed to cane growers as at 31 December 2019.

Table 5: Disbursement & Approval The table below provides the breakdown of loans approved with partially disbursed and fully undrawn to cane growers as at 31 December 2019.
Loan Type Priority CDRF Specialised Total Disbursement Approved Jan – Dec 2019 Value 1,202 45 1,568 2,815 Count $1,697,372.81 $ 34,680.80 $5,797,622.91 $7,529,676.52 Value 1,162 57 1,160 2,379 Count $2,698,866.39 $138,295.13 $5,580,794.58 $8,417,956.10 17 18 2019 SCGF Annual Report Loans Cumulative to 2019 Table 6: Accumulative Details Particulars No.
of Application Value Priority Loans 4,606 Specialised Loans New Leases 9,265 4,685 Refinance 701 $43,599,823 $57,878,696 $21,702,509 $8,250,652 Table 7: Arrears Report The tables below provide the arrears movements at macro levels.

The growers have been consulted, given chances, the repayments leakage verified and implemented with FSC, where required followed up with letters and visitation.

In the worst case, SCGF had to exercise the enforcement means.
The total arrears trends in the period has been as follows: Mar 4,913 Jun 4,265 Oct 3,930 Dec 2,850 $ 6,488,849.18 $ 10,697,401.70 $ 4,593,232.99 $ 7,959,665.08 $ 4,068,862 $ 6,679,558 $ 3,221,008 $ 5,266,465 $ 29,319,259.84 36% $ 29,051,089.11 27% $27,395,382 24% $27,545,977 19% No.

of Default Grower Total Arrears Total Loan- Default Total Portfolio % Balance Arrears District Offices SCGF has offices in Lautoka, Labasa, Seaqaqa, Rakiraki, Tavua, Ba and Nadi to provide services to sugar cane growers.
Growers from the Sigatoka districts are provided services by the Nadi staff once a week from the Sugar Cane Growers Council office, in Sigatoka.

Loans applications are received at the district offices, the approvals and payments are processed at the Head Office.

During the year, the Fund approved loans under Priority Loans to the value of $2,698,866.39 and loans under Specialised Lending to the value of $5,580,794.58.
Table 8: Applications Received at District office District Lautoka Nadi Application Count 404 318 Value of Loans Paid $1,339,360.38 $1,243,175.37 18 19 20 2019 SCGF Annual Report Cane Development Revolving Fund The Board of Management of the Sugar Cane Growers Fund agreed to provide $3million towards establishment of a Cane Development Revolving Fund initiated by the Fiji Sugar Corporation Limited with the $6 million the Government allocated in the 2011 Budget for Sugar Cane Planting.
The Industry Stakeholders – the Fiji Sugar Corporation Limited, Sugar Cane Growers Fund, Sugar Cane Growers Council, the Sugar Industry Tribunal, South Pacific Fertilizers Pte Limited and the Sugar Research Institute of Fiji signed a Memorandum of Agreement to support the initiative taken by the Fiji Sugar Corporation Limited.

Loan provided through Revolving Fund is interest free and is repayable over four-year period.
Recovery would commence from the second year and deductions shall take place from the delivery payments.

Under the Cane planting grant scheme, loan of $1,500 per hectare is granted to a limit of $5,000 where 50 percent of the approved funds is released on acceptance of the offer and balance of the 50 percent after verification and inspection jointly carried out by SCGF and FSC upon successful germination.

However, those who have been in default in repayment, 5% interest rate is applied.
Table 9: Accumulative CDRF CDRF Loan Applications Paid Count 53 Value $46,556.37 New Farmer Assistance Program The New Farmer Assistance (NFA) program started in 2018 and the whole objective of this government funding is to entice new farmers in sugar cane farming.
The application by individuals are made to Ministry of Sugar Industry and the selection of the farmers is carried with initial evaluation of the application by Sugar Industry Tribunal and recommendation to the Project Steering Committee, which consists of the chief executive officers or the industry representative.

SCGF facilitates the disbursement of the funding on the request of the Ministry of Sugar Industry after duly approved by Honourable Minister of Sugar Industry.
SCGF is also responsible for the post funding inspection and verification and such reports are presented to the Ministry of Sugar Industry with appropriate recommendations and conclusions.
20 21 22 2019 SCGF Annual Report Table 10: Growers Assisted No of Growers 79 12 91 2017/2018 79,000 231,000 36,000 346,00 603,512 $ $ $ Nil $ $ No of Growers 2018/2019 Total $113,000 $369,000 $ 18,000 $ 3,000 $192,000 $600,000 $ 54,000 $ 3,000 $ 503,000 $849,000 119 6 1 126 $ 892,528 $1,496,040 Funeral Term Life Fire Permanent Disability Claims Paid Up to 31/12/19 Premium paid by SCGF Total Growers Total Growers Total Growers Assisted Total Payout Total Payout Total Claims Paid to Growers Total Premium Paid to Fiji Care 2017 2018/2019 31/12/2019 2017 31/12/2019 HUMAN RESOURCE MANAGEMENT 37 180 217 $ 136,000 $ 713,000 $ 849,000 $1,496,040 SCGF has a total of 29 permanents and 1 temporary staff for 2019.
23 Staffs are members of Fiji Bank & Finance Sector Employees Union.

Staff and Social Club Staff and Management are also member of Staff and Social Club.

The Club also provides charitable services to the needy and under privileged citizens under the banner of Care All National Equally [CANE].
The Human Resource Management with appointment of Human Resource Officer ensured that effective HR function and activities were executed including the following but not limited to: • Implementation of the policy environment with Human Resource policy; • Fiji Bank & Finance Sector Employees Union agreement signing/ registration; • Reward and Recognition by on-the-spot awards, monthly performance awards and year end award which was awarded to Mr. Sarvesh Prasad Vidya Sagar; and 22 23 24 25 26 2019 SCGF Annual Report Table 12: Internal Audit – Lending Function Particulars Issues Implemented Pending Lending Functions Site Visits IFRS 6 5 Not applicable Arrears Management Reports in progress Total 11 5 5 10 1 Nil 1 Marketing & Awareness We continue to build our marketing and awareness with grower visitations, press releases, radio interview including the social media platform to reach the growers and public.
The details are as follows: Table 13: Facebook Update SCGF Facebook Positive Comments Negative Comments Likes Followers Total Views Total Share Enquiries and Issues Solved Work In Progress Table 14: Media Release 2019 SCGF Media Fiji Sun Fiji Times Fiji Village FBC News Islands Business Radio Commercial Jan-Dec 2019 1,213 2 10,307 1,552 1,553 671 1 1 0 Jan-Dec Notes 90 Notes 91 Notes 92