Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697796038151.pdf (Guyana)
GUYANA SUGAR CORPORATION INC. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015 DRAFT NOTES COMPANY GROUP Revenue Cost of sales Gross profit/(loss) Other income Administrative expenses Marketing and distribution expenses Operating profit/(loss) Finance cost Employees retirement benefits Income from subsidiary and others Loss before tax Taxation 16 15 17 18 2015 $M 21,451 35,041 2014 $M 23,160 42,004 2015 $M 21,451 35,055 2014 $M 23,160 41,985 (13,590) (18,844) (13,604) (18,825) 16,909 (2,479) (1,712) 3,537 16,909 (2,802) (1,280) (2,495) (1,712) 3,537 (2,818) (1,280) (872) (19,389) (902) (19,386) (689) (1,105) 3 (2,662) (504) (2,459) 17 (22,335) (705) (1,105) 3 (2,708) (517) (2,459) 17 (22,345) 794 6,605 808 6,615 Profit/Loss for the year (1,868) (15,730) (1,900) (15,730) Other Comprehensive income: Net (loss)/gain on revaluation of investments Net loss on revaluation of non-current asset Other comprehensive income net of tax (36) - (36) - (6) (6) (36) - (36) - (6) (6) Total comprehensive loss for the year (1,904) (15,736) (1,937) (15,736) Loss for the year Attributable to:- Equity holders of the parent Non controlling interest Total comprehensive loss for the year Attributable to: Equity holders of the parent Non controlling interest Loss for the year Basic loss per share in dollars 7.3 24 (1,868) - (1,868) (1,904) - (1,904) (0.18) (15,730) - (15,730) (15,736) - (15,736) - (1.46) (1,889) (12) (1,900) (15,721) (9) (15,730) (1,925) (12) (15,727) (9) (1,937) (15,736) (0.18) (1.46) "The accompanying notes form an integral part of these financial statements."
32 Company Balance at January 1, 2014 Other comprehensive income Loss for the year Total comprehensive income for the year GUYANA SUGAR CORPORATION INC. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2015 Notes Stated Capital $M Revaluation Other Reserve Reserves $M $M Retained Earnings $M Total Equity $M 10,800 50,849 399 (23,878) 38,170 - - - - - - (6) - - (6) - (15,730) (15,730) - (6) (15,730) (15,736) Balance as at December 31, 2014 10,800 50,849 393 (39,608) 22,434 Other comprehensive income Loss/Profit for the year Total comprehensive income for the year Balance at December 31, 2015 - - - - - - 10,800 50,849 - - (36) - (36) 356 (36) (1,868) (1,904) (1,868) (1,868) (41,476) 20,530 - Group Attributable to equity holders of the parent Stated Capital $M Revaluation Other Retained Non Controlling Reserve Reserves Earnings Interest $M $M $M $M Total Equity $M Balance at January 1, 2014 10,800 50,849 399 (23,941) (27) 38,080 Other comprehensive income Loss for the year Total comprehensive income for the year - - - - - - (6) - - (6) - (15,721) (6) (15,721) (9) (9) (15,730) (15,736) Balance as at December 31, 2014 10,800 50,849 393 (39,662) (36) 22,344 Other comprehensive income Loss/Profit for the year Total comprehensive income for the year Balance at December 31, 2015 - - - - - - (36) - (36) - (1,889) (1,889) - - (12) (12) (36) (1,900) (1,937) 10,800 0 50,849 0 356 - (41,551) - (48) 20,407 1 "The accompanying notes form an integral part of these financial statements."
33 GUYANA SUGAR CORPORATION INC. CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED DECEMBER 31, 2015 COMPANY GROUP OPERATING ACTIVITIES Adjustments for: Depreciation and write down of assets Gain on disposal of property, plant and equipment Net interest Income from subsidiary and others Operating profit/(loss) before working capital changes Decrease/(increase) in inventories (Increase) in standing cane (Increase) in product stocks Increase/(decrease) in accounts receivable,prepayments Increase/(decrease) in amounts due from related parties Increase in accounts payable and accruals Increase/(decrease) in amounts due to related parties Increase in defined benefit pension liability Cash generated from operations Interest paid Taxes paid/adjusted NET CASH PROVIDED BY OPERATING ACTIVITIES INVESTING ACTIVITIES Interest received Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Dividends received from investments Dividends paid to minority interest NET CASH USED IN INVESTING ACTIVITIES FINANCING ACTIVITIES Proceeds from borrowing Proceeds from Government Grant NET CASH PROVIDED BY FINANCING ACTIVITIES Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period 2015 $M (2,662) 4,571 (7) 689 (3) 2,587 (86) 1,155 26 (1,567) (41) 4,946 198 1,105 8,324 (689) - 7,635 - (1,767) 13 3 - (1,751) 223 (4,304) (4,081) 1,803 (1,274) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 529 CASH AND CASH EQUIVALENT COMPRISED OF:- Cash on hand and at bank Bank overdraft(secured) 1,942 (1,413) 529 2014 $M (22,335) 4,433 34 504 (17) (17,382) 429 5,503 (168) (100) 3,252 19 2,459 (5,988) (504) - (6,492) - (2,263) 17 - (2,245) 859 4,146 5,005 (3,732) 2,458 (1,274) 770 (2,044) (1,274) 2015 $M (2,708) 4,571 (7) 705 (3) 2,558 (86) 1,156 26 (1,561) - 4,946 199 1,105 8,341 (705) - 7,636 - (1,767) 13 3 - (1,751) 222 (4,304) (4,082) 1,804 (1,247) 556 1,969 (1,413) 556 2014 $M (22,345) 4,433 34 517 (17) (17,378) 429 5,479 (168) (106) 3,252 59 2,459 (5,973) (517)
 (6,491) - (2,263) 17 (2,245) 859 4,146 5,005 (3,731) 2,484 (1,247) 797 (2,044) (1,247) "The accompanying notes form an integral part of these financial statements."
34 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 Land $M 44,531 0 0 0 0 -0 44,531 Buildings others $M 22,385 21 0 0 0 -9 22,397 7,338 37,193 44,531 11,962 10,435 22,397 0 0 0 0 0 0 6,166 441 0 0 0 6,607 Freehold Buildings wooden $M Land expansion cost $M 2,776 21 0 0 -0 0 2,797 2,797 2,797 1,241 84 -0 0 0 1,324 4,480 388 30 0 0 0 4,899 4,899 0 4,899 685 395 0 0 0 1,080 Plant, machinery and equipment $M 64,256 1,728 116 0 -80 6 66,027 62,806 3,221 66,027 39,148 3,652 -79 0 0 42,722 Work in progress $M 6,222 -2,159 1,620 0 0 0 5,684 5,684 0 5,684 0 0 0 0 0 0 5.
PROPERTY, PLANT & EQUIPMENT 5.1 COMPANY Cost/valuation As at Jan 01 2015 Transfers Additions Interestate Transfers Disposals Adjustments As at December 31, 2015 Comprising: Cost Valuation Depreciation As at Jan 01 2015 Charge for the period Written back on disposals Interestate Transfers Adjustments As at December 31, 2015 Net book value As at December 31, 2015 44,531 15,790 1,473 3,819 23,305 5,684 As at December 31, 2014 44,531 16,219 1,535 3,795 25,108 6,222 Total $M 144,651 0 1,767 0 -80 -3 146,335 95,486 50,849 146,335 0 47,240 4,571 -79 0 0 51,733 94,602 -0 97,411 -0 Land $M Buildings others $M Buildings wooden $M Land expansion cost $M Plant, machinery and equipment $M Work in progress $M Total $M 5.2 GROUP Cost or valuation As at Jan 01 2015 Transfers Additions Interestate Transfers Disposals Adjustments As at December 31, 2015 Comprising: Cost Valuation Depreciation As at Jan 01 2015 Charge for the period Written back on disposals Interestate Transfers Adjustments As at December 31, 2015 Net book value 44,531 0 0 0 0 -0 44,531 7,338 37,193 44,531 0 0 0 0 0 0 22,385 21 0 0 0 -9 22,397 11,962 10,435 22,397 6,166 441 0 0 0 6,607 2,776 21 0 0 -0 0 2,797 2,797 0 2,797 1,241 84 -0 0 0 1,324 4,480 388 30 0 0 0 4,899 4,899 0 4,899 685 395 0 0 0 1,080 64,256 1,728 116 0 -80 6 66,027 62,806 3,221 66,027 39,148 3,652 -79 0 0 42,722 6,222 -2,159 1,620 0 0 0 5,684 144,651 0 1,767 0 -80 -3 146,335 5,684 0 5,684 95,486 50,849 146,335 0 0 0 0 0 0 47,240 4,571 -79 0 0 51,733 94,602 0 97,411 As at December 31, 2015 44,531 15,790 1,473 3,819 23,305 5,684 As at December 31, 2014 44,531 16,219 1,535 3,795 25,108 6,222 35 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 5.
PROPERTY, PLANT & EQUIPMENT (cont'd) 5.3 If no revaluation of land, buildings and equipment was done, the net book value of property, plant and equipment would have been approximately $95,485,845,133 (2014 - $93,803,326,413).

5.4 LEASEHOLD LANDS Leasehold land represents 72% of land used to derive economic benefits by the Group.

Since title is not expected to be passed to the group at the end of the lease, these leases are classified as operating leases.
These are subject to several types of lease agreements, the status of which is as follows: Unexpired leases Unexpired Licences Expired leases Expired permissions During the President's pleasure licenses During the President's pleasure permissions Hectares 21,576 181 1,673 992 25,680 407 50,509 The Group has received written confirmation that the Government of Guyana is committed to renewing all leases for lands beneficially occupied by Guyana Sugar Corporation Inc.
Lease rentals will be reviewed from time to time by the Commissioner of Lands and Surveys and must be approved by the Government of Guyana.

Lease payment per hectare per annum has been as follows: Prior to 1985 From January 01, 1985 to May 31, 1998 From June 01, 1998 $ 10.0 18.5 2,471 A valuation prepared by a professional valuer placed a value on these lands of $1,482,600 per hectare at January 01, 1999.
36 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 6.
DEFERRED TAX Recognised deferred tax assets/liabilities are attributable to the following items: Deferred tax liability Property, plant and equipment Standing cane Deferred tax asset Tax value of losses carried forward Property, plant and equipment Inventories provision Defined benefit pension liability Movement in temporary differences Deferred tax liability Property, plant and equipment Standing cane Deferred tax asset Tax value of losses carried forward Inventories provision Defined benefit pension liability Movement in temporary differences Deferred tax liability Property, plant and equipment Standing cane Deferred tax asset Tax value of losses carried forward Property, plant and equipment Inventories provision Defined benefit pension liability COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 15,454 1,239 16,693 (17,132) (9,850) (26,982) 14,074 3,238 17,312 (17,289) - - (9,518) (26,806) 15,454 1,239 16,693 (17,132) (9,850) (26,982) 15,737 1,581 17,317 (17,341) (18) (9,518) (26,877) Balance at Jan 01,2015 COMPANY Recognised in Income Balance at Dec 31,2015 14,074 3,238 17,312 (17,289) - (9,518) (26,806) (272) (347) (619) 156 - (331) (175) 13,802 2,891 16,693 0 (17,133) - (9,849) (26,981) 0 Balance at Jan 01,2015 GROUP Recognised in Income Balance at Dec 31,2015 15,737 1,581 17,317 (17,341) (18) - (9,518) (26,877) (272) (347) (619) 142 (331) (189) 15,465 1,234 16,698 (17,199) (18) - (9,849) (27,066) 37 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 7.
INVESTMENTS 7.1 Investments Available for sale: Republic Bank Limited COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 22 22 22 22 22 22 22 22 In determining the value of investments, quotations from Guyana Association of Securities Companies and Intermediaries Inc. and Directors valuation for unquoted investments were used.

7.2 INVESTMENT IN SUBSIDIARY Lochaber Limited The Corporation holds 36.8% of the share capital of Lochaber Limited.
The Corporation exercises dominant influence over the financial and operating policies of Lochaber Limited through the membership of its Board.

Investment in the subsidiary is accounted for by using the cost method in the Corporation's own financial statements.
7.3 Non controlling interest - not updated At January 1 Share of loss At December 31 COMPANY 2015 $M 2014 $M 335 372 GROUP 2015 $M 2014 $M (36) (12) (48) - (27) (9) (36) 38 8 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 8.
CURRENT ASSETS 8.1 Inventory categories Fuel Spares Fertilizers and chemicals Other Gross inventories Less collectively assessed provision for slow moving and obsolete items Net Inventories It is estimated that fuel,fertilizers and chemicals and other inventories will be realised within one year Spares expected to be recovered more than one year $ 1,200M (2014 - $1,500M).

8.2 Standing Cane Standing cane is accounted for in accordance with IAS 41.
The difference between the opening and closing balance is included in cost of sales Balance as at January 01 Adjustment to cost of sales Balance as at December 31 Standing Cane by Age Age of Cane 1-5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months 12 Months COMPANY 2015 Hectares 2014 Hectares GROUP 2015 Hectares 2014 Hectares COMPANY 2015 $M 2014 $M GROUP 2015 $M 2014 $M COMPANY 2015 $M 2014 $M GROUP 2015 $M 2014 $M 64 1,795 430 1,539 3,827 (346) 3,481 98 1,834 521 1,288 3,741 (346) 3,395 64 1,795 430 1,539 3,827 (346) 3,481 98 1,834 521 1,288 3,741 (346) 3,395 COMPANY GROUP 2015 $M 5,289 (1,155) 4,133 2014 $M 10,792 (5,503) 5,289 2015 $M 5,338 (1,155) 4,183 2014 $M 10,817 (5,479) 5,338 - 45 25 297 1,045 1,533 962 276 - 42 14 446 1,306 2,079 805 596 - 45 25 297 1,071 1,533 962 276 - 42 14 446 1,357 2,079 805 596 4,183 5,289 4,209 5,339 $ 58,400 $ 71,885 $ 58,400 $ 71,885 COMPANY GROUP 2015 $M 730 533 16 1,279 45 1,886 9 2 1,942 2014 $M 794 496 15 1,305 241 508 6 15 770 2015 $M 730 533 16 1,279 72 1,886 9 2 1,969 2014 $M 794 496 15 1,305 267 508 6 15 797 Farmers' price per tonne of sugar COMPANY Farmers' Prices Tones Sugar (TS) Values Standing Cane Value (Farmers Price@TS Values) 2015 2014 58,400 71,885 70,755 73,555 4,132,090,633 5,287,505,488 (1,155,414,855) The value of standing cane decreased by 21% due to decreased cane farmers' prices and tonnes sugar value derived from standing cane.
8.3 Product stock categories Sugar Molasses Livestock 9.

CASH AND CASH EQUIVALENTS 9.1 Cash on hand and at bank GYD Dollar US Dollar (Current a/c) GBP Euro 39 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 9.
CASH AND CASH EQUIVALENTS (cont'd) 9.2 Bank overdraft (secured) COMPANY GROUP Guyana Dollar(a) (a) These comprised of:- (i) Guyana Bank for Trade and Industry Limited (ii) Republic Bank Guyana Limited (iii) Demerara Bank Limited (iv) Bank of Nova Scotia 2015 $M 1,413 992 298 122 - 1,413 2014 $M 2,044 1,290 243 269 242 2,044 2015 $M 2,044 992 298 122 - 1,413 2014 $M 3,114 1,290 243 269 242 2,044 Securities held consist of (i) & (ii)- Over property situated at Plantation Ogle, East Coast Demerara (iii) & (iv) - Over properties at Plantation Vryheids Lust, Plantation Montrose, Plantation Felicity, Plantation Better Hope & Plantation Brothers all of East Coast Demerara.
- Over properties at Plantation La Bonne Intention and Plantation Chateau Margot both of East Coast Demerara.

- Over properties at Plantation Le Ressouvenir and Plantation Success both of East Coast Demerara.

(b) Interest rates are as follows:- Guyana Bank for Trade and Industry Limited Republic Bank Guyana Limited Demerara Bank Limited Bank of Nova Scotia 10.
STATED CAPITAL GROUP 2015 9% 8% 8.5% 8.5% 2014 9% 8% 8.5% 8.5% The Corporation has an authorised stated capital of 10,800,000,000 at a minimum issue price of $1 each and an issued stated capital of 10,799,571,775 ordinary shares.

The fully paid ordinary shares have no par value and carry one vote per share and equal rights to dividends.

11.
11.

RESERVES 11.1 Revaluation reserve Revaluation of fixed assets COMPANY 2015 $M 50,849 - 2014 $M 50,849 - GROUP 2015 $M 2014 $M 50,849 50,849 The Corporation revalued its freehold land and buildings and factory plant and machinery as at January 01, 1999.

The valuation of the land and buildings was undertaken by an independent valuer.

The original valuation as at January 01, 1999 of plant and machinery was used as a basis for value in use calculation from 2001 to date.
The valuation is reviewed each year in light of changes in markets, production levels and exchange rate movements.

The value was revised in 2009.

11.2 Other reserves 1.

Amounts received by the Corporation from the Sugar Industry Special Funds for rehabilitation work carried out on the Corporation's factories.

2.

Monies received from the Government of Guyana for the purpose of financing projects in the Corporation's diversification programme.

3.
3.

The value of the net assets of Guyana Agricultural Products Corporation and Demerara Sugar Company Limited which were acquired by the Government of Guyana and transferred to the Corporation.

During 2002 $14M was capitalised as equity.

4.

Adjustment of investments to reflect fair value COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 25 17 2 312 356 25 17 2 348 392 25 17 2 312 356 25 17 2 348 392 40 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 12.
DEFERRED INCOME Income from European Union Income from Government of Guyana COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 2,417 - 2,417 - 2,497 4,224 6,721 - 2,417 - 2,417 2,497 4,224 6,721 Deferred income represents income from the European Union as part of the Guyana National Action Plan (GNAP) submission for the mitigation against the EU price cuts.
Funds received were utilised in the construction of the new packaging plant at Enmore Estate called Enmore Project Gold, which has resulted in the conversion of production into direct consumption sugars for the local and international markets.

Construction works commenced on the US$12M facility in 2009 and was completed and signed in February 2012.
Now that the factory is completed, deferred income is being transferred to the Statement of Comprehensive Income on an annual basis over the plant's useful economic life.

13.
BORROWINGS 13.1 Current a) Government of Guyana Drainage and Irrigation financed by CDB b) Consortium of local banks and Jamaican Bank (NCB Jamaica Ltd) c) Government of Guyana Debenture d) xxxxxxxxxxxxxxxxxxxx Total current loans 13.2 Non Current a) Government of Guyana Drainage and Irrigation financed by CDB b) Government of Guyana SSMP c) Government of Guyana SSMP financed by CDB d) Government of Guyana SSMP financed by EXIM Bank Total non- current loans COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 141 4,763 144 - 5,048 - 688 15,489 5,553 8,255 29,985 - 141 4,549 144 - 4,833 - 688 15,489 5,544 8,255 29,977 - 141 4,763 144 5,048 688 15,489 5,553 8,255 29,985 5,048 4,116 25,869 29,985 141 4,549 144 4,833 688 15,489 5,544 8,255 29,977 4,833 5,981 23,996 29,977 Repayments due in one year and included in current liabilities 5,048 4,833 Repayment due within 2-5 years Repayment due after five years a) Government of Guyana Drainage and Irrigation financed by CDB 4,116 25,869 29,985 - 5,981 23,996 29,977 - The loan from the Government of Guyana represents an on-lending of a loan from the Caribbean Development Bank for US$5,050,000 to finance various drainage and irrigation projects.
Total funds received amounted to US$5,026,395.

Interest is charged at the rate of 3% per annum on the principal and is paid on semi annual basis.

The repayment of the loan was due to commence 5 years after the date of the first disbursement and is to be paid in 34 equal semi - annual installments.

The first disbursement was received in July 2002.


The maturity date of the loan is June 2024. b) Government of Guyana SSMP This is an on - lending facility from the Government of Guyana for US$56M to finance the new Skeldon factory.

The full amount was deposited in an Escrow account with ING Bank.

Interest is charged at a rate of 6.5% per annum on the principal and is to be paid on a semi-annual basis.
The repayment of the loan was due to commence 5 years after the date of the first disbursement and will be paid in 34 equal installments.

A grace period of 3 years was granted in 2010 on the repayments by the Government of Guyana.

The first disbursement was received in March 2005.

The maturity date of the loan is February 2027. c) Government of Guyana SSMP financed by CDB This is an on - lending facility from the Government of Guyana for US$24.8M financed by CDB.
This facility is divided into two sections, Ordinary Capital Resources (OCR) for US$ 11.8M and Special Funds Resources (SFR) for $13.0M.

These funds were used for the agricultural component of the new Skeldon factory.

Drawdowns are made based on submission of contractors' certificates.

To date a drawdown of US$24.167M was made.

The repayment of the loan was due to commence 5 years after the date of the first disbursement and will be paid in 34 equal semi - annual installments.
A grace period of 3 years was granted in 2010 on the repayments by the Government of Guyana.

The first disbursement was received in May 2005.

The maturity date of the loan is April 2027.

Interest is charged at the rate of 6.5% on the OCR portion and 3% on the SFR portion per annum on the principal amount.

d) Government of Guyana SSMP financed by EXIM Bank This is an on - lending facility from the Government of Guyana for US$35M financed by the Export and Import Bank of China (EXIM).
These funds are to be used for the Co-generation Facility of the new Skeldon factory.

Drawdowns are made based on submission of contractors' certificates.

To date a drawdown of US$35M was made.

The repayment of the loan wasd ue to commence 5 years after the date of the first disbursement and will be paid in 24 equal installments.

A grace period of 3 years has been granted in 2010 on the repayments by the Government of Guyana.

The first disbursement was received in March 2005.


The maturity date of the loan is February 2022.

Interest is charged at a rate of 4.5% per annum.

e) Consortium of local banks and Jamaica Bank (NCB Jamaica Limited) This is a short term line of credit as part of a consortium lending arrangement by participating Licensed Financial Institutions of Guyana totaling G$788M.

Funds were also received as a short term line of credit from NCB Jamaica Limited totaling $3,975M.
f) Government of Guyana debenture This is a convertible Government of Guyana debenture.

The Government of Guyana is the major shareholder and issuer of the debenture on which no interest is charged.

41 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 14.
RELATED PARTIES 14.1 Amounts due to related parties Government of Guyana - Lease rentals Sugar Industry Labour Welfare Fund 14.1 Amount due from related party Lochaber COMPANY 2015 $M 2014 $M GROUP 2015 $M 422 1,372 1,793 331 1,264 1,595 422 1,372 1,793 COMPANY 2015 $M 2014 $M GROUP 2015 $M 2014 $M 331 1,264 1,595 2014 $M 298 258 - - Total rent payable for the lease lands to the Government of Guyana was $421.8M(2014 - $331.2), no payment was made in 2015.
Total levies payable to Sugar Industry Welfare Fund was $1,372M whilst claims made by Guysuco for work done on behalf of the welfare was $313M.
This was paid in 2015 14.2 Related parties transactions 14.2.1 Key Management Personnel The company's key management personnel is comprised of the Chief Executive Officer, Deputy Chief Executive Office, Functional Directors and The remuneration paid to key management personnel during the year was as follows: Short term employee benefit 14.2.2 Directors' fees and expenses Directors Mrs. Geeta Singh -Knight Dr. Rajendra Singh Mr. Keith Burrowes Dr. Dindyal Permaul Mr. Badrie Persaud Mr. Dunstun Barrow Dr. Clive Thomas Mr. George Jervis Mr. Earl John Taxes Paid COMPANY GROUP 2015 $M 2014 $M 2015 $M 2014 $M 396 398 396 398 COMPANY GROUP 2015 2014 2015 2014 Fees $000 Expenses $000 Fees $000 Expenses $000 Fees $000 Expenses $000 Fees $000 Expenses $000 - 48 48 48 48 65 46 54 12 78 445 - - - - - - - - - - - 71 69 71 71 71 67 421 - - - - - - - 48 48 48 48 65 46 54 12 78 445 - - - - 71 69 71 71 71 67 421 - - - - All directors' expenses have been incurred on corporate business.
Directors' fees comprise those amounts paid to or on behalf of directors in respect of services as directors.

42 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 15.

EMPLOYEES RETIREMENT BENEFITS The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 December 2015 by Becon Woodrow & De Souza.
The present valuation of the defined benefit obligation and the related current service cost were measured by the actuaries at 31 December 2015 using the Projected Unit Credit Method.
15 The amounts recognized in the Statement of Financial Position are as follows: Present value of defined benefit obligation Fair value of assets (Surplus)/Deficit Effect of Asset Ceiling Net defined benefit liability/(Asset) 15 Reconciliation of opening and closing defined benefit liability Defined benefit liability at the beginning of the year Unrecognised gain/(loss) from 2011 Unrecognised gain/(loss) 2012 Opening Defined Benefit Liability/(Asset) Net Pension Cost Re-measurements Less company contribution/benefits paid Closing defined benefit liability/(Asset) 15 The amounts recognized as staff costs in the Statement Of Income are as follows: Current service cost Net Interest on net defined benefit liability/(Asset) Past Service Cost/(Credit) Administrative Expenses Net Pension Cost 15 Actual return on Plan Assets Expected return on Plan assets Actuarial (Gain)/loss on Plan Assets/ Interest Income Actual return on Plan Assets 16 Actuarial assumptions (i) Funded Scheme Discount rate Salary increases Pension increases Rate of return on Pension Plan assets (ii) Unfunded Scheme Discount rate Salary increases Pension increases Rate of return on Pension Plan assets There is no Pension Scheme for the subsidiary company.
Experience History Defined benefit obligation Fair Value Plan Assets (Surplus)/Deficit Experience Adjustment on Plan Liabilities Experience Adjustment on Plan Assets Expected Company Contributions in 2016 2015 Post Retirement Medical $M STEPS Scheme $M Ex Gratia Scheme $M 574 - - 574 - - 574 574 - - 574 - - - 574 - - - - - - - - 12,362 (10,499) - 1,863 - - 1,863 1,093 - - 1,093 549 265 (43) 1,863 489 60 - - 549 (532) 638 106 30,389 - - 30,389 - - 30,389 30,055 - - 30,055 2,944 (1,839) (770) 30,389 1,164 1,781 - - 2,944 - - - Total $M 43,325 (10,499) 32,826 - - 32,826 31,721 - - 31,721 3,493 (1,574) (814) 32,826 1,652 1,840 - - 3,493 (532) 638 106 2014 Post Retirement Medical $M STEPS Scheme $M Ex Gratia Scheme $M 574 574 11,945 (10,852) 30,054 1,093 - 30,054 - Total $M 42,573 (10,852) 31,721 574 1,093 30,054 31,721 574 341 28,347 574 341 507 245 574 1,093 28,347 2,829 (378) (743) 30,055 - - 1,150 1,679 - 2,829 - - - 490 16 - - 507 (478) 654 177 2015 6% 6% 2% 7% 6% 6% 5% N/A 29,262 - - 29,262 3,335 (132) (743) 31,721 1,640 1,695 - - 3,335 (478) 654 177 2014 6% 6% 2% 7% 6% 6% 5% N/A Ex Gratia Scheme Steps Scheme 2015 G$ 000 2014 G$ 000 2013 G$ 000 2012 G$ 000 2011 G$ 000 2015 G$ 000 2014 G$ 000 2013 G$ 000 2012 RESTATED G$ 000 30,389 30,054 28,347 27,331 26,117 12,362 11,945 11,459 10,899 0 0 0 0 0 -10,499 -10,852 -11,119 -9,890 30,389 30,054 28,347 27,331 26,117 1,863 1,093 341 1,009 -378 0 -1,061 0 -818 0 -3,259 0 -1,839 0 809 -232 654 -221 595 -448 532 -267 638 1123 Data given to the actuaries included the Corporation's best possible estimations of details where precision was not possible.
This was required for them to calculate liabilities according to IAS 19.

The actuaries have cautioned that the figures are subject to change after a more complete assessment is carried out on the scheme in 2016 43 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 15.
EMPLOYEES RETIREMENT BENEFITS (cont'd) 15.6 Asset Allocation Equity Securities Debt Securities Property Other Total 2015 18.20% 24.20% 7.20% 50.40% 2014 18.20% 24.20% 7.20% 50.40% 100.00% 100.00% The Scheme does not directly hold any assets of Guyana Sugar Corporation Inc 16.
REVENUE Revenue by products Sugar Molasses Co-generation Electricity Total Sales Revenue by major markets Europe North America Caribbean Guyana Other Markets COMPANY 2015 $M 18,434 2,799 218 21,451 10,775 2,526 4,668 3,409 73 21,451 2014 $M 20,227 2,692 241 23,160 14,425 1,356 3,281 4,021 77 23,160 GROUP 2015 $M 18,434 2,799 218 21,451 10,775 2,526 4,668 3,409 73 21,451 2014 $M 20,227 2,692 241 23,160 14,425 1,356 3,281 4,021 77 23,160 All expenditures are incurred in Guyana, with the exception of marketing expenses.
All assets and liabilities are based in Guyana, with the exception of foreign cash balances and some trade receivables and payables.

44 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 17.
LOSS BEFORE TAXATION After charging - Employment Costs Wages and salaries Social security contributions Employees retirement benefits Materials and services purchased Research and development expenses Directors' fees & expenses Depreciation Auditors' remuneration-audit services Interest expense - After crediting Available for sale income (Republic Bank dividends) 18.
TAXATION - not updated Reconciliation of corporation tax expense and accounting loss: COMPANY 2015 $M 2014 $M GROUP 2015 $M 2014 $M (2,662) (22,335) (2,708) (22,345) Accounting loss (2,662) (22,335) (2,708) (22,345) Corporation tax @30% Add: Tax effect of expenses not deductible in determining taxable profits Depreciation for accounting purposes Defined benefit pension cost Deduct: Depreciation for tax purposes Standing Cane Tax losses Corporation Tax Deferred Tax Property Tax - current year - prior year Taxation - current - prior year - deferred (799) (6,700) (813) (6,703) 1,371 331 904 (1,071) (347) (281) (795) - (794) (794) - - (794) - - (794) (794) 1,330 738 (4,633) (2,783) (1,651) 2,462 (6,605) - (6,605) (6,605) - - (6,605) - - (6,605) (6,605) 1,371 331 890 (1,071) (347) (281) (809) - (808) (808) - - (808) - - (808) (808) 1,330 738 (4,636) (2,783) (1,651) 2,455 (6,615) - (6,615) (6,615) - - (6,615) - - (6,615) (6,615) No deferred tax liability has been recognised in relation to capital gains taxes which would become payable on factory plant, machinery and equipment should the revaluation surplus be realised upon disposal of the revalued assets.
This is because the Corporation does not intend to dispose of these assets other than in the normal course of business.

45 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 19.
ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS COMPANY ASSETS Available for sale $M Loans and Receivables $M 2015 Financial Assets and Liabilities at Amortised cost $M Investments Trade receivables Other receivables and prepayments Cash on hand and at bank Total assets LIABILITIES Employees retirement benefit Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities ASSETS Investments Trade receivables Other receivables and prepayments Cash on hand and at bank Total assets LIABILITIES Employees retirement benefit Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities 335 - - - 335 - - - - - - - - - 3,714 3,377 - 7,091 - - - - - - - - - - - 1,942 1,942 32,826 9,585 17,253 1,793 35,033 2,623 1,413 100,527 Available for sale $M Loans and Receivables $M 2014 Financial Assets and Liabilities at Amortised cost $M - 2,271 3,253 - 5,524 - - - - - - - - 372 - - - 372 - - - - - - - - 46 - - - 770 770 31,721 9,563 12,329 1,595 34,810 2,623 2,044 94,685 Total $M 335 3,714 3,377 1,942 9,368 32,826 9,585 17,253 1,793 35,033 2,623 1,413 100,527 Total $M 372 2,271 3,253 770 6,666 31,721 9,563 12,329 1,595 34,810 2,623 2,044 94,685 29 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 19.
ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS GROUP 2015 ASSETS Investments Trade receivables Other receivables and prepayments Taxes recoverable Cash on hand and at bank Total assets LIABILITIES Employees retirement benefit Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities 2014 ASSETS Investments Trade receivables Other receivables and prepayments Taxes recoverable Cash on hand and at bank Total assets LIABILITIES Employees retirement benefit Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities Total $M 335 3,738 3,377 34 1,969 9,453 32,826 9,587 17,252 1,794 - 2,637 1,413 65,509 Total $M 372 2,300 3,254 34 797 6,757 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 Available for sale $M Loans and Receivables $M Financial Assets and Liabilities at Amortised cost $M 335 - - - - 335 - - - - - - - - - 3,738 3,377 34 - 7,150 - - - - - - - - - - - - 1,969 1,969 32,826 9,587 17,252 1,794 2,637 1,413 65,509 Available for sale $M Loans and Receivables $M Financial Assets and Liabilities at Amortised cost $M - 2,300 3,254 34 - 5,588 - - - - - - - - - - - - 797 797 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 372 - - - - 372 - - - - - - - - 47 17 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 20.
CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES Expenditure authorised by the Directors Capital expenditure 4,154 6,134 4,154 6,134 COMPANY 2015 $M 2014 $M GROUP 2015 $M 2014 $M The capital expenditure for 2015 will be funded by a combination of facilities lent by the Government of Guyana, provided by other suppliers of finance and from self generated funds.
Contrary to previous practice, the Commissioner of Internal Revenue in 2000 sought to assess the Corporation on additional income for the years of assessment 1995, 1996 and 1997 arising from the remission of sugar levies by the Government of Guyana for the years 1994, 1995 and 1996.

The Corporation does not accept this amended tax treatment and objected to the computations on the grounds that the levies have been correctly treated for tax purposes.
No provision has been made in the financial statements for taxation arising from any such computations.

21.

PENDING LITIGATION There are several actions for which the liability of the Group, if any, has not been determined.

The maximum potential liability at the end of the year is estimated at $250M (2014 $1,176M) 48 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.
FINANCIAL RISK MANAGEMENT Financial risk management objectives The Group's management monitors and manages the financial risk relating to the operations of the Group through internal risk reports which analyse exposure by degree and magnitude of risks.

These risks include market risk (currency risk, interest risk and price risk), credit risk and liquidity risk.
The Group seeks to minimise the effects of these risks by the use of techniques that are governed by management's policies on foreign exchange risk, interest rate risk and credit risk which are approved by the board of directors.
(a) Market Risk Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market.

The Group's exposure to market risk arises from its local and foreign securities.

Management continually identifies, evaluates, underwrites and diversifies risks in order to minimise the total cost of carrying such risk.
(i) Foreign currency risk The Group's exposure to the effects of fluctuations in foreign currency exchange rates arise mainly from bank balances, other assets and loans in United States Dollars, Sterling and Euros.

The financial statements at December 31 include the following assets and liabilities denominated in foreign currency stated in the Guyana dollar equivalent.
Assets Liabilities Net Asset/(liability) Assets Liabilities Net Asset/(liability) US Dollar $M Group 2015 Euro $M GBP $M 3,970 (5,192) (1,222) 1,029 (5,314) (4,285) 9 (269) (260) Group 2014 6 (210) (204) 11 (0) 11 25 (1) 24 Total $M 3,990 (5,462) (1,471) 1,060 (5,524) (4,465) 49 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.
FINANCIAL RISK MANAGEMENT (cont'd) (a) Market Risk (cont'd) (i) Foreign currency risk (cont'd) Foreign currency sensitivity analysis The following table details the Group's sensitivity to a 5% increase and decrease in the Guyana dollar (GYD) against the relevant currencies, 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

A positive number indicates an increase in profit where the currency strengthens 5% against the GYD.

For a 5% weakening of the currency against GYD there would be an equal and opposite impact on the profit and the balances below would be reversed.
US$ Impact 2015 $M 2014 $M Sterling Impact 2015 $M 2014 $M Euro Impact 2015 $M 2014 $M Profit/(loss) -61.12 (214.67) -13.00 (10.18) 0.55 1.22 50 20 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.

FINANCIAL RISK MANAGEMENT (cont'd) (a) Market Risk (cont'd) (ii) Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates.
The Group is exposed to various risks that are associated with the effects of variations in interest rates.

This impacts directly on its cash flows.

The Group's management continually monitors and manages these risks through the use of appropriate tools and implements relevant strategies to hedge against any adverse effects.
COMPANY Assets Investments Trade receivables Other receivables and prepayments Cash and cash equivalents Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) effective average interest rate 3.75 8.50 8.50 2015 Maturing Over 5 years $M - - - - - - 1 to 5 years $M - - - - - - - 4,116 - - 4,116 - 25,869 - - 25,869 Within 1Year $M - - 1,942 1,942 - - - 5,048 - 2,044 7,091 Interest sensitivity gap (5,150) (4,116) (25,869) COMPANY Assets Investments Trade receivables Other receivables and prepayments Cash and cash equivalents Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) 2014 Maturing Over 5 years $M - - - - - - 1 to 5 years $M - - - - - - - 5,981 - - 5,981 - 23,996 - - 23,996 Within 1 Year $M - - 770 770 - - - 4,833 - 2,044 6,877 3.75 8.50 8.50 Interest sensitivity gap (6,107) (5,981) (23,996) Non - interest bearing $M 335 3,714 3,377 - 7,426 32,826 9,585 17,253 1,793 - 2,623 - 64,081 Non- interest bearing $M 372 2,271 3,253 - 5,896 31,721 9,563 12,328 1,595 - 2,623 - 57,830 Total $M 335 3,714 3,377 1,942 9,368 32,826 9,585 17,253 1,793 35,033 2,623 2,044 101,157 Total $M 372 2,271 3,253 770 6,666 31,721 9,563 12,328 1,595 34,810 2,623 2,044 94,684 51 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.
FINANCIAL RISK MANAGEMENT (cont'd) (a) Market Risk (cont'd) (ii) Interest rate risk GROUP effective average interest rate Assets Investments Trade receivables Other receivables and prepayments Tax recoverable Cash and cash equivalents Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) 3.75 8.50 8.50 2015 Maturing Over 5 years $M Non - interest bearing $M 1 to 5 years $M - - - - - - - - - - - - - - 4,116 - - 4,116 - - 25,869 - - 25,869 335 3,738 3,377 34 - 7,484 32,826 9,587 17,252 1,794 - 2,637 - 64,095 Within 1Year $M - - - 1,969 1,969 - - - 5,048 - 1,413 6,460 Interest sensitivity gap (4,492) (4,116) (25,869) GROUP Assets Investments Trade receivables Other receivables and prepayments Tax recoverable Cash and cash equivalents Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) 3.75 8.50 8.50 2014 Maturing Over 5 years $M Non- interest bearing $M 1 to 5 years $M - - - - - - - - - - - - - - 4,116 - - 4,116 - - 25,861 - - 25,861 372 2,300 3,254 34 - 5,960 31,721 9,565 12,328 1,595 - 2,637 - 57,846 Within 1 Year $M - - - 797 797 - - - 4,834 - 2,044 6,878 Interest sensitivity gap (6,081) (4,116) (25,861) 52 Total $M 335 3,738 3,377 34 1,969 9,453 32,826 9,587 17,252 1,794 35,033 2,637 1,413 100,541 Total $M 372 2,300 3,254 34 797 6,757 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.FINANCIAL RISK MANAGEMENT (cont'd) (a) Market Risk (cont'd) (ii) Interest rate risk cont'd (ii) Interest rate sensitivity analysis ` The table below analyses the sensitivity of interest rates exposure for both financial assets and liabilities at the end of the reporting period.
For floating rate instruments, the analysis is prepared assuming the amount of the instrument outstanding at the end of the reporting period was outstanding for the whole year.

A fifty (50) basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managements assessment of the reasonably possible change in interest rate.
Apart from the foregoing with respect to the other financial assets and liabilities, it was not possible to determine the expected impact of a reasonable possible change in interest rates on profits or equity as other factors such as credit risks, market risks, political and disaster risks can affect the value of the asset and liabilities The impact on the profit for the year is the effect of changes in interest rates on the floating interest rates of financial assets and liabilities.
This impact is illustrated on the following table: Increase/ decrease in basis point Cash & cash equivalent Borrowings + /-50 + /-50 (iii) Price risk Impact on loss for the year Company Group 2014 2015 Company Group 2014 2015 G$M 19 364 G$M 8 369 G$M 19 364 G$M 8 369 Price risk is the risk that the value of the financial instruments will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market.
Management continually identifies, underwrites and diversifies risk in order to minimize the total cost of carrying such risk.

53 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.

FINANCIAL RISK MANAGEMENT (cont'd) (b) Liquidity risk (cont'd) Liquidity risk is the risk that the Group will encounter difficulty in raising funds to meet its commitments associated with financial instruments.
The Group manages its liquidity risk by maintaining an appropriate level of resources in liquid or near liquid form.

The Group’s policy is to maintain a strong liquidity position and to manage the liquidity profile of assets, liabilities and commitments so that cash flows are appropriately balanced and all funding obligations met when due.

The information given below relates to the major financial assets and liabilities based on the remaining period at 31 December to the contractual maturity dates.
GROUP 2015 Maturing Within 1 year on due in due 3 - 12 demand 3 months months $M $M $M 2 to 5 years $M Over 5 years $M Total $M - 1,200 1,650 - 1,969 4,819 - 9,587 17,252 - - - 1,413 28,252 - 2,538 1,727 - - 4,265 - - - - - - - - - - - 34 - 34 - - - 1,794 5,048 2,637 - 9,478 - - - - - - - - - 335 - - - - 335 32,826 - - - 4,116 25,869 - - - - 335 3,738 3,377 34 1,969 9,453 32,826 9,587 17,252 1,794 35,033 2,637 1,413 4,116 58,695 100,541 Assets Investments Trade receivables Other receivables and prepayments Taxes recoverable Cash on hand and at bank Total assets Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities Net asset/(liabilities) (23,433) 4,265 (9,444) (4,116) (58,360) (91,088) 54 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.
FINANCIAL RISK MANAGEMENT (cont'd) (b) Liquidity risk (cont'd) GROUP 2014 Maturing Within 1 year on due in due 3 - 12 demand 3 months months $M $M $M 2 to 5 years $M Over 5 years $M Total $M - 1,012 1,930 - 797 3,739 - 9,565 12,328 - - - 2,044 23,937 - 1,288 1,324 - - 2,612 - - - - - - - - 34 34 - - - - - - - 1,595 4,834 2,637 - 9,066 - - - - - - - - - 372 - - - - 372 31,721 - - - 5,981 23,996 - - - - 5,981 55,717 372 2,300 3,254 34 797 6,757 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 Assets Investments Trade receivables Other receivables and prepayments Taxes recoverable Cash on hand and at bank Total assets Liabilities Employees retirement benefits Trade payables Other payables Related parties Borrowings Taxation Bank overdraft(secured) Total liabilities Net asset/(liabilities) (20,198) 2,612 (9,032) (5,981) (55,345) (87,944) 55 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 22.
FINANCIAL RISK MANAGEMENT (cont'd) (c) Credit risk The table below shows the company's maximum exposure to credit risk: Cash on hand and at bank Investments Investment in subsidiary Trade, other receivables and prepayments Tax recoverable Company Group Maximum exposure Maximum exposure 2015 $M 1,942 335 22 7,091 - 2014 $M 770 372 22 5,524 - 2015 $M 1,969 335 - 7,115 34 2014 $M 797 372 - 5,554 34 Credit risk refers to the risk that a customer will default on its contractual obligations resulting in financial loss to the group.
The Company and Group face credit risk in respect of their receivables and cash and cash equivalents.

However, this risk is controlled by close monitoring of these assets by the Group.

The maximum credit risk faced by the Group is the balance reflected in the financial statements.

Cash and cash equivalents are held by commercial banks.

These banks have been assessed by the Directors as being credit worthy, with very strong capacity to meet their obligation as they fall due.
The related risk is therefore considered very low.

Investments reflected in the Company and Group Statement of Financial Position are assets for which the likelihood of default is considered minimal by the Directors.

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas.

Ongoing credit evaluation is performed on the financial condition of accounts receivables on a regular basis.
Company 2015 $M 2014 $M Group 2015 $M 2014 $M Trade and other receivables (excluding prepayments) 6,577 4,726 6,601 4,756 The above balances are classified as follows: Current Past due but not impaired 4,683 1,895 6,577 1,400 3,327 4,726 4,683 1,919 6,601 1,400 3,356 4,756 Aging of trade and other receivables which was pass due but not impaired Past Due up to 29 days Past Due 30 - 59 days Past Due 60 - 89 days Past Due 90 - 179 days Past Due over 180 days but less than 1 year Past Due more than 1 year Collectively assessed provision for bad debts 459 27 36 75 1,318 18 1,933 (15) 1,919 1,982 290 153 18 135 793 3,371 (15) 3,356 435 27 36 75 1,318 18 1,909 (15) 1,895 1,953 290 153 18 135 793 3,342 (15) 3,327 56 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 23.
CAPITAL RISK MANAGEMENT The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Group's overall strategy remains unchanged from 2014.

The capital structure of the Group consists of issued capital, reserves and retained earnings.

Gearing ratio The Group’s management reviews the capital structure on an on-going basis.
As part of this review management considers the cost of capital and the risks associated with each class of capital.

The corporation have not set a target gearing ratio .
The gearing ratio at the year end was as follows: Company Group Debt (i) Cash in hand and at bank Net debt 2015 $M 36,446 (1,942) 34,504 2014 $M 36,854 (770) 36,084 Equity (ii) 20,528 22,432 2015 $M 36,446 (1,969) 34,477 20,454 2014 $M 36,855 (797) 36,058 22,380 Net debt to equity ratio 1.68:1 1.68086052 1.68086052 1.61:1 1.60857842 1.60857842 1.69:1 1.685620819 1.685620819 1.61:1 1.611185524 1.611185524 (i) Debt is defined as long- and short-term borrowings and bank overdraft.
(ii) Equity includes all capital and reserves of the Group.

24.
Basic loss per share Profit/(Loss) for the year Ordinary share issued and fully paid Basic Profit/(loss) per share COMPANY 2015 $ 2014 $ (1,867,708,417) (15,730,116,065) Units 10,799,571,775 Units 10,799,571,775 (0.17) (1.46) GROUP 2015 2014 Profit/(Loss) attributable to equity holders of the parent (1,888,536,555) (15,721,283,473) Ordinary share issued and fully paid 10,799,571,775 10,799,571,775 Basic Profit/(loss) per share (0.17) (1.46) 57 GUYANA SUGAR CORPORATION INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 25.
European Union Sugar Protocol The Econmic Partnership Agreement (EPA), effective from October 1, 2008, replacing the Sugar Protocol, includes all the benefits of access, price and unlimited duration transposed into Duty - Free - Quota - Free (DFQF) access.

The key component of the EPA is the reciprocity which removes all establised trade preferences between the EU and Guyana resulting in bilateral commerical contracts.
The EPA also hopes to improve the investment in the sector while promoting public-private partnerships.

The Group is assessing all the strategic options available in the open market for sugar trade after 2015.

26.
Fair value of financial instruments The following table details the carrying costs of financial assets and liabilities and their fair values Financial assets Available for sale investments Trade receivables Other receivables and prepayments Taxes Recoverable Cash and cash equivalents Financial liabilities Employee retirement benefits Trade payables Other payables Related Parties Borrowings Taxation Bank overdraft(secured) Carrying Value $M 335 3,738 3,377 34 1,969 9,453 32,826 9,587 17,252 1,794 35,033 2,637 1,413 100,541 GROUP 2015 GROUP 2014 Fair Value $M Carrying Value $M 335 3,738 3,377 34 1,969 9,453 32,826 9,587 17,252 1,794 35,033 2,637 1,413 100,541 372 2,300 3,254 34 797 6,757 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 Fair Value $M 372 2,300 3,254 34 797 6,757 31,721 9,565 12,328 1,595 34,811 2,637 2,044 94,701 Valuation techniques and assumptions applied for the purposes of measuring fair value The fair values of financial assets and financial liabilities are determined as follows.
(a) For available for sale financial assets,the fair values were determined with reference to quoted market prices.

Quoted market prices are obtained from independent market valuators using level 1 fair value measurements.

(b) Financial instruments where the carrying amounts are equal to fair value:-Due to their short-term maturity, the carrying amounts of certain financial instruments are assumed to approximate their fair values.
These include cash and cash equivalent, trade & other receivables and prepayments, borrowings and trade and other payables, employee 58