Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697794892976.pdf (Fiji)
Our Vision To be the pro-active grower representative organization, that strives to serve the interests of the cane growers of Fiji.

Our Mission The Sugar Cane Growers Council is committed to providing effective representation, leadership and services to the cane growers in order to secure long term viability for them in the industry.
Our Objectives To effectively represent the interest of the cane growers as stakeholders in all aspects of the industry.

To actively pursue and encourage the development of a sustainable and viable sugar industry.

To take necessary measures to provide services to the cane growers to better facilitate their cane farming activities.
To explore ways and means to reducing cost and increasing productivity and yields for the cane growers through better utilization of their existing resources and adopting best practice methods which would encourage and facilitate this.

To conduct research and collect data in respect of cane farming activities and other related areas.

To inform and educate the cane growers and the community on the issues relating to cane farming and the industry.
To represent the growers and make investment on their behalf in areas related to the activities of cane growing and sugar manufacture.

To participate actively and maintain a strong interest in the marketing of our sugar and to keep the cane growers well informed of developments, market- related issues and trends in the international markets.
To represent growers interest, both collectively and individually on matters relating to cane farming and their obligations to the industry and seek redress for their legitimate grievances through the appropriate authorities.
S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 2 Contents Letter to the Minister About Sugar Cane Growers Council Operation Review 2016 Statistics Weather Crop forecast 2016 Crushing Season Cane Payment Activities Cane Planting Grant and Crop Rehabilitation FNPF Voluntary Membership Scheme Land Issues Services Provided by SCGC Weedicide Distribution Growers Consultation Corporate Governance Council Members Composition of the Council SCGC Organizational Chart SCGC Financial statements for the Year ended 31st December 2016 Members report Independent Auditor Report Statements of Comprehensive Income and Accumulated Funds Statement of Financial Position Statement of Cash Flows Notes to the Financial Statements Disclaimer Statement of operations 3 4 5 7 7 8 9 11 11 11 12 13 13 14 15 17 1-2 3-4 5 6 7 8-21 22 23-24 S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 3 Sugar Cane Growers Council HEAD OFFICE: LEVEL 3 CANE GROWERS BUILDING, 75 DRASA AVE, P.O.
BOX 5162, LAUTOKA, FIJI.
PHONE: (679) 6650466, FAX: (679) 6650624,email: sundresh@fsc.com.fj Letter to the Minister July 27, 2017 The Honourable Prime Minister and Minister for Sugar Office of the Prime Minister Government Buildings SUVA Dear Sir, Re: SCGC Annual Report 2016 Pursuant to the requirements of Part IV Section 54 (3) of the Sugar Industry Act, 1984 together with Section 28 Sugar Industry (Amendment) Act 2015, we are pleased to submit the Annual Report on activities and audited financial accounts for the year ended 31st December, 2016.
We wish to take this opportunity to thank you and the Government for the on-going support and assistance.

Chief Executive Officer S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 4 ABOUT SUGAR CANE GROWERS COUNCIL Who We Are Sugar Cane Growers Council (SCGC) was established under the Sugar Industry Act, 1984 with specific functions to protect and further the interests of registered cane growers.
It is the peak Cane Growers’ organization representing the interests of all registered Cane Growers in Fiji.

The Council consists of 9 members appointed by the Minister for Sugar.

The Head Office is situated at 75 Drasa Avenue, Lautoka and has district offices in 8 cane growing districts (6 in Viti Levu and 2 in Vanua Levu).

The operations of the Council are managed by the Chief Executive Officer with the assistance of 25 staff members.
Our Goals The Council shall take all reasonable and necessary steps to protect and develop the Industry and the interests of the registered growers, and in particular:- (a) encourage and p rom o t e c oo pe rat io n am o ng reg is t e red g ro we rs , an d between registered growers and others engaged in the Industry; (b) remove or provide redress of all legitimate grievances of a registered grower in any particular sector, district or mill area; (c) provide registered growers with goods and services relating to the business of cane-growing; (d) establish, hold and administer funds for the benefit of registered growers; (e) encourage and promote research and education with a view to improving the efficiency and productivity of registered growers and to collect, record and distribute information of value to registered growers; and (f) perform such other functions as maybe assigned to the Council by this Act or any other written law.
Our Customers and Partners Our customers and partners include the Cane Growers, Cane Growers Co-operatives, Service Suppliers, Cane Lorry/Tractor Operators, Landowners, Industry Stakeholders, Banks, iTLTB and Government agencies respectively.
S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 5 OPERATIONS REVIEW 2016 Growers Update In 2015, the total number of registered growers in the country was 16,441 compared to the current figure of 16,526 registered cane growers.

District Rakiraki Tavua Ba Lautoka Nadi Sigatoka Labasa Seaqaqa TOTAL No.

of Growers No.
of Growers No.

of harvesting Gangs 1,733 1,650 3,668 2,098 2,162 1,146 3,420 649 16,526 189 144 355 216 268 108 426 169 1,875 Tropical Cyclone Winston The severe Tropical Cyclone Winston had its path through some of the biggest Sugar Cane producing areas in the Western Division.

The estimated damage and loss from the cyclone was pegged $1.42 billion for Fiji.

TC Winston wreaked havoc in Rakiraki, Tavua and Ba areas with nearly every Sugar Cane field sustaining extensive damages.
For these cane growing areas, Rakiraki and Tavua were emerging out of two consecutive dry weather spells and had just began to show signs of recovery when the Category 5 cyclone T C Winston hit the Western Division.

Cyclone Winston Assistance The Council noted with appreciation, the assistance provided by the Producers Association to victims of TC Winston soon after the cyclone left our shore.
The Lautoka and Labasa Association provided food rations while the Rarawai/Penang Association issued food vouchers to each of its members.

The South Pacific Fertilisers also aided in providing growers with Rice Packs while the Council staff assisted in identifying the recipients and helped in distribution.

Assistance provided by Sugar Cane Growers Fund (“SCGF”) The Council negotiated the approval of interest free loan in the sum of $1,000.00 to all TC Winston affected Cane Growers.
The loan would be re-paid to SCGF over a period of five years effective from 2017.

SCGF provided other forms of financial assistance to the growers at a minimum interest rate.
S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 6 Statistics Weather 2016 Crop Forecast 2016 Crushing Season Cane Payment S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 7 Weather The year was marked by a number of very significant hydro-meteorological disasters which included Tropical Cyclone Winston, the strongest ever tropical cyclone to affect Fiji and one of the strongest in the Southern Hemisphere.
The tropical cyclone Winston broke all the previous records of maximum winds and gusts.

It hit the country on 20th February 2016.

There were 44 fatalities during Winston with estimate of the disaster effects amounting to FJD$1.99 billion.

Total damage to the sugar cane industry was estimated at FJD $163.5m.

During April 2016 two other significant tropical depressions affected the country, TD14F and TD17F, resulting in major flooding in the Western and Northern divisions respectively.
It was notably dry from May to July with some parts of the country facing very dry spell and water shortages.

The year concluded with another tropical depression TD04F resulting in overwhelming rain and flooding in the cane belt.

Rakiraki was worst affected.

The National average rainfall during 2016 was 2380mmwhich was 56mm above the long term (60years) average of 2324mm.

(Figures obtained from Fiji Met.)


Crop Forecast A crop of 1.8 million tonnes of cane was forecasted for the year, however after the devastating effect of TC Winston (category 5) the production dropped to 1,386,309 tonnes.

Luckily the Labasa mill area did not sustain significant damage.
Table 2.1 2016 Season (Actual) 372,280 268,870 653,353 91,806 Variance (+/-) -41,920 -111,130 53,353 -58,194 -157891 1,544,200 1,386,309 Mill 2016 Forecast 414,200 380,000 600,000 150,000 Lautoka Rarawai Labasa Penang All Mill Crushing Season The 2016 season crop declined compared to previous years in the Western division because of devastated effect of T C Winston.

Unfortunately Penang mill was severely damaged during T C Winston and had to ceased operations.
Therefore, all Penang Mill area Cane had to be transferred to Rarawai Mill.

Thus, additional costs incurred for transportation was gracefully paid by the Government.

S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 8 All three mills jointly crushed 1,386,309 tonnes of cane from an area of 36,724.8 hectares giving an average of 37.71 yields per hectare.

The stand over cane for the season was around 28,665 tonnes against 15,028 tonnes in 2015.
Around 90% of the stand over cane was due to the ongoing problem of non-availability of cane cutters, no interest from Farmers, Cane Access Roads, Absentees’ grower, Farm disputes and Land issues.
Mill Lautoka Rarawai Labasa Penang All Mill Crushed 372,280 268,870 653,353 91,806 Stand over Total Crop 16,080 4,355 7,715 515 388,360 273,225 661,068 92,321 1,386,309 28,665 1,414,974 Table 2.3 Cane Crushed Between 2010 To 2016 District/ Mill Lautoka 2010 216,986 2011 281,071 2012 209,240 2013 177,396 2014 229,365 2015 230,457 2016 148002 Nadi 229,730 262,212 213,783 169,638 247,193 206,644 156936 Sigatoka 80,750 100,258 67,439 58,619 77,655 83,964 67342 Lautoka Mill Total 527,466 643,521 490,462 405,652 554,213 521,065 372,280 Rarawai 378,061 484,243 325,115 360,996 434,458 384,458 217,292 Tavua 142,427 189,199 140,205 137,830 118,556 106,334 51,578 Rarawai Mill Total 520,488 673,442 465,320 498,826 553,014 490,792 268,870 Labasa 417,832 425,284 313,973 429,243 418,106 515,760 502,969 Seaqaqa 136,742 145,187 99,310 116,911 126,242 146,840 150,384 Labasa Mill Total 554,574 570,471 413,283 546,154 544,348 662,600 653,353 Penang Mill Total 175,486 208,307 177,832 159,720 180,571 170,130 91,806 GRAND TOTAL 1,778,014 2,095,741 1,546,897 1,610,353 1,832,146 1,844,587 1,386,309 Labasa Mill commenced crush on 16th June 2016 followed by Lautoka and Rarawai which commenced on 19th and 20th July, 2016 respectively.
Lautoka Mill terminated crush on 19th November 2016 followed by Rarawai on the next day.

Labasa ended crush on 14th December, 2016.

S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 9 Cane Payment For 2016 season, Growers received a total payment $82.00/ton against a forecast of $65.69/ton.

In comparison to 2015 cane price the growers received $5.34 more per tonne of cane.
This was only possible through a top up of $ 9.15 by the Government in recognition of the on-going difficulties faced by the growers due to damages caused by T C Winston.
Season Forecast Delivery Second Special Third Fourth Final Total CANE PAYMENT S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 10 Activities Cane Planting Grant &Crop Rehabilitation FNPF Voluntary Membership Scheme Land Issues Services Provided by SCGC Weedicide Distribution Growers Consultation S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 11 Cane Planting Grant and Crop Rehabilitation The Government had initially allocated $4.6 million as cane planting grant under the Sugarcane Industry Development Program.
Additional $9.0 million was allocated in the 2016/2017 national budget.

The CPG program was based on a cash back initiative and upon successful completion of land preparation growers received 50% of the grant.

The remaining 50% of the grant was only paid out upon successful planting and germination of the crop.

The scheme also had provisions of providing additional $500 per hectare to hire of bulldozers to clear heavy vegetation and trees on fallow land.
Additionally, agricultural lime was supplied to growers upon soil analysis to correct soil pH and to maintain good soil health.

FNPF Voluntary Membership Scheme The Fiji National Provident Fund (FNPF) Voluntary scheme had been in existent for years.

However, official arrangements for the deduction of growers contribution from the cane proceeds has now been made between SCGC, Fiji Sugar Corporation (FSC) and FNPF.
All Cane Growers and their family members, farm labourers, harvester and lorry/tractors drivers are eligible to join the voluntary FNPF scheme, however only the registered grower’s contributions can be sourced from the cane proceeds by FSC and paid to FNPF directly.

Other voluntary members are at liberty to pay their contributions directly to FNPF.
Individuals who join this voluntary FNPF scheme will be entitled to the same benefits as that of compulsory members The registration and deduction authority forms are available at all SCGC district offices.

The Council staff members are conducting awareness and assisting growers who are willing to register and join the scheme.
Land Issues The SCGC is involved in representing the growers in renewal of leases, rental assessment, delay in processing of lease applications and other related activities with Lands Department and iTaukei Land Trust Board.

S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 12 Services Provided by SCGC In 2016, a total of 69,792 growers were served in the 8 cane growing districts on various issues affecting the cane growers.
The summaries of Council activities are tabulated below:- GROWERS SERVICES FROM JANUARY TO DECEMBER 2016 Rakiraki Tavua Ba Lautoka Nadi Sigatoka Labasa Seaqaqa TOTAL Weedicide Distribution 2,125 1,765 4,142 8,594 8,470 1,178 3,852 1,330 31,456 Income Tax Returns Cane Payment Increase Harvesting Rates Cane Access Road Lorry Wheel Tax Substitute Agreement Legal Services Knife Sale MOGA Additional Ticket Book Cane Planting Program Land Rent Appeal/Renew Gang Matters 610 71 153 117 77 93 108 17 118 38 47 42 Individual Harvesting 147 Substitute Dispute COR amendment VAT returns New Registration Gang Disputes Transfer of Registration COR Replacement Gang Meetings in Office Land rent object/Transfer Burnt Cane Crop Damage Gang Rationalization Split Registration Drainage Harvesting Bond Dispute General Services 1,532 1,109 1,611 1,155 1,675 839 5,673 1,733 15,327 Total 5,505 5,338 8,096 11,413 12,003 3,019 17,418 7,000 69,792 S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 13 Weedicide Distribution The Council facilitates the distribution of weedicide from the 8 district offices located in the Sugar belt.
The distribution is done on orders provided to the growers by FSC.
Weedicide Distribution by District The record for weedicide by each district in the year 2016 is listed below:- DISTRICT Rakiraki Tavua Ba Lautoka Nadi Sigatoka Labasa Seaqaqa TOTAL Diuron (Kg) Glyphosate (5Litres) Amine 720 (5 Litres) Valpar King (Kg) Growers Consultation Consultations with growers are ongoing in the respective mill areas and number of issues raised by the growers during the discussions which are addressed by the Council management and staff.
Some of the major issues are as follows: Crop production Harvesting and transport of cane Upgrading and maintenance of cane access roads Rural Access Road and Associated Infrastructure (RARAI) Project Legal Services Information regarding SCGF loan assistance (Power of Attorney, Wills, Probates, Transfer and other Conveyancing matters) Renewal of Land Leases Awareness on Income tax and VAT Returns FNPF Voluntary Scheme S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 14 Corporate Governance Council Members Corporate Governance Practises SCGC Organisation Chart S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 15 COUNCIL MEMBERS Cr.
Viliame Gucake Chairman Ministry of Sugar Cr.

Jovesa Vocea Commissioner Northern Division Cr.

Manasa Tagicakibau Commissioner Western Division Cr.

Josefa Cagimaicama Rarawai Penang Cane Producers Association Cr.

Prakash Chandra Labasa Cane Producers Association Cr.

Parbindra Singh Lautoka Cane Producers Association Cr.

Pradip Kumar Labasa Cane Producers Association Cr.

Jai Ram Khelawan Rarawai Penang Cane Producers Association Cr.
Nand Kishore Lautoka Cane Producers Association Sundresh Chetty Chief Executive Officer Nemani Veikoso Secretary S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 16 Composition of the Council The Council consists of the following persons who were appointed by the Minister for Sugar: (a) Two e l e c t e d representatives from each of the following Cane Producers’ Associations— (i) (ii) (iii) Rarawai and Penang Cane Producers’ Association - Mr. Jai Ram Khelawan - Mr Josefa Cagimaicama Labasa Cane Producers’ Association - Mr. Pradip Kumar - Mr. Prakash Chandra Lautoka Cane Producers’ Association - Mr. Parbindra Singh - Mr. Nand Kishore (b) The Commissioner for the Western Division Mr. Manasa Tagicakibau (c) The Commissioner for the Northern Division Mr. Jovesa Vocea (d) And a representative of the Ministry Director Sugar Industry – Mr. Viliame Gucake Council Meetings The Council held 4 meetings during the financial year ended 31st December, 2016.
The regular business of the Council during its meetings covers Corporate Governance, Financial Performance and Risk Management, and Strategic Planning to enhance Cane Production.
S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 17 S U G A R C A N E G R O W E R S C O U N C I L - A N N U A L R E P O R T 2 0 1 6 18 Sugar Cane Growers Council Financial Statements For the year ended 31 December 2016 Sugar Cane Growers Council Contents Members' report Independent auditor's report Statement of comprehensive income and accumulated funds Statement of financial position Statement of cash flows Notes to the financial statements Disclaimer Statement of operations 1 - 2 3 - - 21 22 23 - 24 Sugar Cane Growers Council Members' report The Members of Sugar Cane Growers Council ("the Council") herewith submit the statement of financial position of the Council as at 31 December 2016 and the related statement of comprehensive income and accumulated funds and statement of cash flows for the year ended on that date and report as follows: Members The names of the Members at the date of this report and at any time during the financial year and up until the date the financial statements were authorised for issue are as follows: - Viliame Gucake (Chairman) - Manasa Tagicakibau - Jovesa Vocea - Jai Ram Khelawan - Nand Kishore - Pradip Kumar - Prakash Chandra - Prabindra Singh State of affairs In the opinion of the Members the accompanying statement of financial position gives a true and fair view of the state of affairs of the Council as at 31 December 2016 and the accompanying statement of comprehensive income and accumulated funds and statement of cash flows give a true and fair view of the results, changes in funds employed and cash flows of the Council for the year then ended.
Results The total comprehensive loss for the year amounted to $34,061 (2015: Total comprehensive income of $75,635).

Principal activities The principal activities of the Council are outlined under Section 1.2 of the Sugar Industry Amendment Bill 2015 which is to ensure the protection and development of the sugar cane industry.

There were no significant changes in the nature of the activities of the Council during the financial year.
Current assets The Members took reasonable steps before the Council's financial statements were made out to ascertain that the current assets of the Council were shown in the accounting records at a value equal to or below the value that would be expected to be realised in the ordinary course of business.

At the date of this report, the Members are not aware of any circumstances which would render the values attributable to the current assets in the financial statements to be misleading.
1 Sugar Cane Growers Council Members' report (continued) Receivables The Me1nbers took reasonable steps before the Council's financial state1nents were 1nade out to ascertain that all known bad debts were written off and adequate allowance was 1nade for iinpainnent losses.

At the date of this report, the Members are not aware of any circu111stanccs which would render the above assessn1ent inadequate to any substantial extent.
n.elated party transactions All related pal'ty transactions have been adequately recorded in the financial state1nents.

Events subsequent to year end There has not arisen in the interval between the end of the year and the date of this report any itein, transaction or event of a 1naterial and unusual nature likely, in t11e opinion of the Metnbers, to affect significantly the operations of the Council, the results of those operations or the state of affairs of the Council in subsequent financial years.
Dated at Lautoka this _rf.O _____ day of_,,,J_l{,(~l'f: ___ _ 2017.

~ r;./1, ·1 Signed in accordance with a resolution of the Me1nbers.
Council member 2 Sugar Cane Growers Council Statement of comprehensive income and accumulated funds For the year ended 31 December 2016 Sale of weedicide Cost of Sales - weedicide Gross profit Other income Administrative expenses Other operating expenses Finance income (Deficit) / surplus before income income tax Note 2016 $ 1,948,076 2015 $ 1,970,264 4 5 6 8 (1,835,447) (1,863,440) 112,629 106,824 939,824 807,307 (540,526) (529,757) (562,506) (326,101) (50,579) 16,518 (34,061) 58,273 17,362 75,635 - Income tax expense 3(g) - (Deficit) / surplus for the year (34,061) 75,635 Other comprehensive income - - Total comprehensive (loss) / income for the year (34,061) 75,635 Accumulated funds at the beginning of the year 3,141,699 3,066,064 Accumulated funds at the end of the year 3,107,638 3,141,699 The notes on pages 8 to 21 are an integral part of these financial statements.
5 Sugar Cane Growers Council Statement of cash flows For the year ended 31 December 2016 Operating activities Receipts of growers levy from Fiji Sugar Corporation Receipts from weedicide sales Government grant received Other receipts Payments to suppliers and employees Note 2016 $ 2015 $ 6,004 1,836,220 600,000 332,941 (2,763,562) 647,159 1,905,782 - 109,450 (2,811,704) Net cash from / (used in) operating activities 11,603 (149,313) Investing activities Interest received Acquisition of property, plant and equipment Cash from investing activities 8 9/17 16,518 (11,797) 4,721 17,362 (15,619) 1,743 Net increase / (decrease) in cash and cash equivalents 16,324 (147,570) Cash and cash equivalents at 1 January 731,617 879,187 Cash and cash equivalents at 31 December Material non-cash investing activity 11 17 747,941 731,617 The notes on pages 8 to 21 are an integral part of these financial statements.
7 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 1.

Reporting entity Sugar Cane Growers Council (the "Council") is a body corporate domiciled in Fiji, established under the Sugar Industry Amendment Bill 2015.

The address of the Council's registered office is 75 Drasa Avenue, Lautoka.
The principal activities of the Council are outlined under Section 1.2 of the Sugar Industry Amendment Bill 2015 which is to ensure the protection and development of the sugar cane industry.

There were no significant changes in the nature of the activities of the Council during the financial year.

2.

Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).
financial The 28 June 2017. statements were authorised for issue by the Council Members on (b) Basis of measurement The financial statements have been prepared on the historical cost basis except where stated.

(c) Functional and presentation currency The financial statements are presented in Fiji dollars, rounded to the nearest dollar, which is the Council's functional currency.
(d) Use of estimates and judgments The preparation of financial statements in conformity with IFRS for SMEs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future period affected.

8 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 2.
Basis of preparation (continued) (d) Use of estimates and judgments (continued) Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following note: - Note 3(c) - Recoverability of receivables 3.

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements by the Council.
(a) Financial instruments (i) Non-derivative financial assets The Council generally recognises loans and receivable on the date that they are originated.

All other financial assets (including assets designated as at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Council becomes a party to the contractual provisions of the instrument.
The Council derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of the ownership of the financial asset are transferred.

Any interest in the transferred financial asset that is created or retained by the Council is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when and only when, the Council has a legal right to offset the amounts and intends either to offset the amounts and settle on a net basis or to realise the asset and settle the liability simultaneously.
The Council classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held to maturity financial assets and loans and receivables.

Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.

Such assets are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, financial assets and liabilities are measured at amortised cost using the effective interest method, less any impairment losses (see note 3 (c) (i) ).

Loans and receivables comprise cash and cash equivalents and receivables.

9 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 3.
Significant accounting policies (continued) (a) Financial instruments (continued) (i) Non-derivative financial assets (continued) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank for the purposes of the statement of cash flows.

Held to maturity financial assets If the Council has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held to maturity.
Held to maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs.

Held to maturity financial assets comprise term deposits.

Financial assets at fair value through profit and loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or designated as such upon initial recognition.
Financial assets are designated at fair value through profit or loss if the Council manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Council's documented risk management or investment strategy.

Attributable transaction costs are recognised in profit or loss as incurred.

Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.
Financial assets at fair value through profit or loss comprise investments in Unit Trust of Fiji.

(ii) Non-derivative financial liabilities Financial liabilities are recognised initially on the trade date at which the Council becomes a party to the contractual provisions of the instrument.

The Council derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.
The Council classifies non-derivative financial liabilities into the other financial liabilities category.

Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

Other financial liabilities comprise other payables and accruals.
10 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 3.

Significant accounting policies (continued) (b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognised net within other income/other operating expenses in profit or loss.
(iii) Depreciation Items of property, plant and equipment are depreciated in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Council will obtain ownership by the end of the lease term.
(ii) Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Council.

Ongoing repairs and maintenance is expensed as incurred.
The depreciation rate for the current and comparative year is as follows: Asset Fixtures and fittings Plant and equipment Motor vehicles Land and building (c) Impairment Rate 25% 25% 25% 1.25% - 5% (i) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired.
A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

11 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 3.
Significant accounting policies (continued) (c) Impairment (continued) (i) Non-derivative financial assets (continued) Financial assets measured at amortised cost The Council considers evidence of impairment for financial assets at amortised cost at a specific asset level.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate.

Losses are recognised in profit or loss and reflected in an allowance account against loans.

When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
(ii) Non-financial assets The carrying amounts of the Council's non-financial assets excluding inventories are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or cash generating unit (CGU) exceeds its recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit, or CGU”).

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.

Impairment losses are recognised in profit or loss.
(d) Employee benefits i) Defined contribution plan / superannuation Contributions are paid to the Fiji National Provident Fund on behalf of employees to secure retirement benefits.

Costs are included in profit or loss as the service is provided by the employee.
ii) Annual leave and long service leave Annual leave and long service leave with respect to employees' services up to the reporting date, measured at the amounts expected to be paid when the liabilities are settled, are accrued for under employee benefits.

12 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 3.
Significant accounting policies (continued) (d) Employee benefits (continued) iii) Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed in profit or loss as the related service is provided.

Liabilities for wages and salaries expected to be settled within 12 months of the reporting date are recognised in other payables on the statement of financial position.

(e) Inventories Inventories include weedicide.


Inventories are stated at the lower of cost and net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less selling expenses.

The cost of inventories is based on the first-in-first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.
(f) Revenue (i) Levy income Levy income for any financial year is approved by the Council and certified by the Tribunal Accountant at the beginning of the crushing season in accordance with Sections 51 and 53 of the Sugar Industry Act of 1984 and recorded in profit or loss on an accrual basis.

Growers levies are determined under the Master Award and regulated under the Sugar Industry Act 1984 s(53).
The collection of levies by FSC is deducted from the growers' share of proceeds of sale of sugar, molasses and other by- products.

(ii) Sale of weedicide Revenue from sale of weedicide is measured at the fair value of the consideration received or receivable.

Revenue is recognised when significant risks and rewards of ownership have been transferred to the buyer.
(iii) Government grants Grants from the Government are recognised at their fair value where there is a reasonable assurance that the grants will be received and the entity will comply with all attached conditions.

Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they intended to compensate.
(iv) Other income Dividend income and other revenue from operating activities are recognised in profit or loss on an accrual basis.

13 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 3.

Significant accounting policies (continued) (f) Revenue (continued) (v) Rental income Rental income from hire of hall and office premises are recognised in profit or loss on an accrual basis.
(g) Income tax The Council is exempt from income tax by virtue of Part 7(2) of the Income Tax (Exempt Income) Regulations 2016.

(h) Financing income Finance income comprises interest received on the term deposits held.

Interest income is recognised as it accrues in profit or loss.

(i) Value Added Tax (VAT) The financial statements have been prepared on a gross basis (VAT inclusive).

4.
4.

Other income Dividend income - Unit Trust of Fiji Growers levy Government grant Gain on investments carried at fair value (Note 10) Legal income Knife sales Other income Share of profit from Sugar House Rental income 5.
Administrative expense Bank charges Meeting costs Personnel expenses (refer note 7) 2016 $ 17,592 - 550,459 36,832 43,638 20,454 64,932 140,000 65,917 939,824 2015 $ 16,527 650,000 - 27,245 18,358 4,119 25,215 - 65,843 807,307 1,392 18,911 520,223 540,526 1,381 5,966 522,410 529,757 14 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 6.
Other operating expenses Advertising Auditor's remuneration - audit services Auditor's remuneration - other services City rates Cleaning Depreciation Donations Doubtful debts Electricity Fringe benefit tax General expenses Growers accountant's fees Hospitality Insurance Information technology Legal department expenses Medical expenses Motor vehicle expenses Office expenses Postage Professional services Purchase of knives Rent Repairs and maintenance Security expenses Staff training Stationery and printing Subscriptions Telephone Water rates Website costs 15 2016 $ 2015 $ - 562,506 598 7,000 3,912 842 9,510 64,000 400 12,163 24,132 - 5,767 5,750 1,160 23,583 - - - 52,903 6,954 2,466 1,747 - 32,752 13,586 9,567 791 9,840 2,507 29,091 405 4,675 326,101 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 7.
Personnel expenses Annual and long-service leave Fiji National Provident Fund (FNPF) contributions Key management compensation - short term benefits Key management compensation - FNPF Fiji National University Levy Wages and salaries 8.
Finance income Interest income 2016 $ 57,507 36,316 121,645 14,270 7,027 283,458 520,223 2015 $ 48,827 40,474 121,645 14,270 2,092 295,102 522,410 16,518 17,362 16 $ l a t o T ) 0 0 0 , 4 ( 7 9 7 , 3 1 9 1 6 , 5 1 8 4 4 , 9 7 1 , 2 7 6 0 , 5 9 1 , 2 0 8 7 , 2 - 0 8 1 , 7 9 1 2 , 2 4 3 , 1 9 9 3 , 9 4 3 , 1 4 6 8 , 4 0 2 , 2 9 7 1 , 2 5 3 , 1 ) 0 0 0 , 4 ( 8 5 3 , 9 4 0 0 0 , 4 6 9 3 2 , 4 5 0 , 1 9 3 2 , 8 1 1 , 1 4 6 4 , 1 2 6 5 4 , 0 0 3 0 2 9 , 1 2 3 5 6 7 , 0 2 - 7 9 5 , 3 6 1 , 1 5 8 6 , 2 4 3 8 2 8 , 6 7 0 , 1 9 7 4 , 7 2 0 , 1 8 6 2 , 1 4 0 , 1 4 9 4 , 9 0 0 , 1 - 5 2 3 , 9 6 2 5 2 3 , 9 6 2 - 5 2 3 , 9 6 2 5 7 6 , 0 3 8 5 8 , 8 0 2 3 3 5 , 9 3 2 9 1 2 , 9 1 - 2 5 7 , 8 5 2 2 9 7 , 9 2 4 7 5 , 0 1 9 0 0 8 , 9 3 5 , 6 4 4 8 4 5 4 5 4 , ) 0 0 0 4 ( , 8 6 5 , 0 1 6 1 1 1 6 4 , 0 5 8 , 1 1 0 6 5 3 2 4 , 0 1 4 5 3 4 , 6 4 2 9 , ) 0 0 0 4 ( , 6 5 6 0 4 4 , 8 3 1 9 1 , 0 6 4 0 2 , 7 1 9 4 4 - 0 3 4 5 6 3 , 1 2 1 5 9 7 1 2 1 , 4 4 2 2 2 1 , 1 1 5 6 3 1 2 1 , 6 7 3 1 2 1 , - 8 2 1 4 0 5 1 2 1 , $ $ $ $ u
, y t r e p o r P .
9 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 10.

Investments Non-current investment Financial assets designated at fair value through the statement of comprehensive income.

Unit Trust of Fiji This represents investment in Unit Trust of Fiji of 293,988 units (2015: 283,326 units) at $1.65 (2015: $ $1.52).
Reconciliation of investment in Unit Trust of Fiji Balance at 1 January Additional units acquired during the year Gain on remeasurement of investment to fair value Balance at 31 December Financial assets designated at cost are as follows: Fiji Sugar Corporation This represents investment in Fiji Sugar Corporation Less provision for impairment 11.
Cash and cash equivalents Cash at bank Cash on hand Cash and cash equivalents in the cash flow statements 2016 $ 485,079 430,655 17,592 36,832 485,079 38,931 (38,931) - 745,911 2,030 747,941 2015 $ 430,655 386,883 16,527 27,245 430,655 38,931 (38,931) - 729,587 2,030 731,617 12.

Held to maturity investments Term deposits 550,000 550,000 The average interest rate on term deposits in 2016 is 3.375% (2015: 3.165%).

The deposits have an average maturity of 365 days (2015: 365 days).

13.
Receivables Growers levy receivable from The Fiji Sugar Corporation Limited Less: Provision for doubtful debts Receivable from The Fiji Sugar Corporation Limited for sale of weedicide Receivable from South Pacific Fertilizers Limited Receivable from Sugar Cane Growers Fund Other receivables 2016 $ 704,395 (704,395) - 537,735 1,614 4,525 49,545 593,419 2015 $ 710,399 (504,827) 205,572 463,961 3,228 375 13,999 687,135 18 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 13.
Receivables (continued) Movement in provision for doubtful debts Balance as at 1 January Created during the year Balance as at 31 December 14.
Other payables and accruals Payables and accruals VAT payable (refer (a) below) South Pacific Fertilizers Limited 2016 $ 504,827 199,568 704,395 53,104 49,541 226,963 329,608 2015 $ 492,664 12,163 504,827 48,569 - 315,676 364,245 (a) VAT payable On 7 December 2016, the Council received a demand letter from Fiji Revenue and Customs lodging VAT returns from January 2010.
Authority (FRCA) as a result of the Council not Management is currently liasing with FRCA in relation to whether the Council should be subject to VAT.

FRCA is yet to provide an assessment on the matter as at the date of signing of the financial statements.
Since the outcome of the discusions is not known, management has booked an accrual for the amount of VAT payable on Government grant received during the year as an uncertain tax position only, all the other transactions are recorded on a gross basis (VAT inclusive).

15.
15.

Employee benefits Balance at 1 January Created during the year Leave utilised during the year Balance at 31 December 2016 $ 48,827 57,507 (48,827) 57,507 2015 $ 32,508 48,827 (32,508) 48,827 Employee benefits is comprised of annual leave and long service leave.

Generally these leaves are taken within one year of entitlement and accordingly it is expected that a significant portion of the total balance will be utilised within the next financial year.

16.
16.

Related parties (a) The Members The names of the Members at any time during the financial year are as follows: - Viliame Gucake (Chairman) - Manasa Tagicakibau - Jovesa Vocea - Jai Ram Khelawan - Nand Kishore - Pradip Kumar - Prakash Chandra - Prabindra Singh 19 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 16.
Related parties (continued) (b) Identity of related parties The Fiji Sugar Corporation Limited (FSC) and South Pacific Fertilizers Limited are related parties by virtue of common directorship and shareholding.

Other related parties of the Council include key stakeholders in the Fiji Sugar Industry, namely, the Government of Fiji, Sugar Research Institute of Fiji and Sugar Cane Growers Fund.
(c) Amounts receivable from / (payable to) related parties Payable to South Pacific Fertilizers Limited Receivable from The Fiji Sugar Corporation Limited for sale of weedicide (Note 13) Growers levy receivable from The Fiji Sugar Corporation Receivable from South Pacific Fertilizers Limited (Note 13) Receivable from Sugar Cane Growers Fund (Note 13) 2016 $ (226,963) 537,735 704,395 1,614 4,525 2015 $ (315,676) 463,961 710,399 3,228 375 (d) Transactions with related parties During the year, the Council entered into various transactions with related parties which were at normal commercial terms and conditions.
The aggregate value of material transactions with the related parties during the year is as follows: Levy income – The Fiji Sugar Corporation Limited Purchase of weedicide from South Pacific Fertilizers Limited Sale of weedicide to The Fiji Sugar Corporation Limited Rental income from Sugar Cane Growers Fund 2016 $ - 1,828,210 1,835,448 62,892 2015 $ 650,000 1,861,747 1,170,532 62,303 (e) Transactions with key management personnel Key management personnel includes the Chief Executive Officer and General Manager Operations.
In addition to their salary, the Council also provides non-cash benefits to key management personnel.

Key management compensation is disclosed in Note 7.

17.

Material non-cash investing activity Re-investment of dividend income earned in Unit Trust of Fiji Acquisition of property, plant and equipment via trade-in 2016 $ 17,592 (2,000) 2015 $ 16,527 - 20 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2016 18.
Capital commitments Capital commitments as at 31 December 2016 amounted to $nil (2015: $nil).

19.

Contingent liabilities The Council is a defendant in a third party claim.

The Members do not expect the outcome of these actions to have a material effect on the Council's financial position.

20.
20.

Events subsequent to year end There has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Members, to affect significantly the operations of the Council, the results of those operations or the state of affairs of the Council in subsequent financial years.
21 Sugar Cane Growers Council Statement of operations For the year ended 31 December 2016 Sales Cost of Sales Gross Profit Growers levy Government grant Proceeds from sugar house Dividend income Gain on investments carried at fair value Gain on sale of property, plant and equipment Interest income Rental income Legal income Knife sales Other income Total income Expenditure Advertising Auditor's remuneration - audit services Auditor's remuneration - other services Bank charges City rates Cleaning Depreciation Donations Doubtful debts Electricity Fiji National Provident Fund contributions Fiji National University Levy Fringe benefit tax General expenses Growers accountant's fees Hospitality Insurance Information technology Legal department expenses Meeting costs - other Expenses balance carried forward 2016 $ 1,948,076 (1,835,447) 112,629 - $ 1,970,264 (1,863,440) 106,824 650,000 - - 16,527 27,245 - 17,362 65,843 18,358 4,119 33,302 939,580 598 7,000 3,912 1,381 842 9,510 64,000 400 12,163 24,132 54,744 2,092 - 5,767 5,750 1,160 23,583 - - 5,966 223,000 The above statement of operations is to be read in conjunction with the disclaimer report set out on page 22.
23 Sugar Cane Growers Council Statement of operations (continued) For the year ended 31 December 2016 Expenses balance brought forward Medical expenses Motor vehicle expenses Office expenses Postage Professional services Purchase of knives Rent Repairs and maintenance Security expenses Staff training Stationery and printing Subscriptions Telephone Wages and salaries Water rates Website costs Total expenditure 2016 $ 460,564 13,320 42,817 4,636 3,330 5,725 17,497 31,158 24,051 3,862 1,276 3,808 3,260 24,539 462,610 579 - 2015 $ 223,000 - 53,990 6,954 2,466 1,747 - 32,752 13,586 14,567 791 11,840 2,507 29,091 465,574 405 4,675 1,103,032 863,945 Operating (deficit) / surplus (34,061) 75,635 The above statement of operations is to be read in conjunction with the disclaimer report set out on page 22.
24