Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697791171702.pdf (Fiji)
Annual Report 2010 ORGANISATION PROFILE The Sugar Cane Growers Council was established under the Sugar Industry Act No.8 of 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 is fully funded by the cane growers themselves.

In August 2009 the Government of the day decided to dissolve the Council to remove politics from the Sugar Industry.
The 38 elected Councilors were terminated effective from November 2009 and the Administration Arm of the Council consisting of 26 employees was retained.

The Administrative Arm took over the reigns and continued to steer the Council forward and continued to provide the required services to the growers on a daily basis.

The Council is now managed by the Acting Chief Executive Officer Mr. Sundresh Chetty with assistance from Head office and district office staff in the eight cane growing districts.
The Government had agreed to appoint a growers representative from each of the 8 cane growing districts on certain criteria in the reformed Council.

The Legislative changes are now being drafted and is expected to be finalized in due course.

The present Administrative Arm of the Council reports to the Ministry of Sugar on a timely basis.

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.

 To effectively represent the interest of the cane growers as stakeholders in all aspects of the industry.

OUR GOALS  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.

1 Annual Report 2010  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.

THE GROWERS There are about 15,000 active growers running small family cane farms (an average of 4 hectares/ 10 acres), with majority producing less than 300 tonnes per year.
The vast majority of the growers have farm size of 4 hectares, a legacy from the British colonial administration and the end of indentured labourer system in the 1920’s.

At that time, a plot of 4 hectares of land was leased to individual growers which was considered to be sufficient to support a grower and his family alongside him.

Over the years many growers have moved to urbanized areas in the quest of easier, better jobs.
Nowadays most of the plots are farmed by a middle-aged generation of growers in their fifties and sixties; their children left to attend universities to get white collar jobs in the cities.

Most growers plant and harvest manually, using hired laborers (casual workers).

Mechanization is not well developed: besides the importance of such an investment for a grower, the small size of the plots is not adapted to mechanization.
Income diversification is not very developed and other crops are mainly grown for self consumption.

2 Annual Report 2010 ACTIVITIES REPORT 2010 The Acting Chief Executive Officer and Staff of Sugar Cane Growers Council takes pleasure in presenting its 2010 Report of Activities that includes the Audited Financial Statement for the year ended 31st December 2010.

1.
1.

WEATHER The 2010 year started with rainfall over the months of January to March period recording generally below average across the sugar cane growing districts.

The month of January was however hotter and drier as the effects of El Nino phenomena continued from September 2009.

The rainfall pattern for the wetter months from November to April was quite different from previous years due to the said El Nino.
Conditions were drier than normal across the sugarcane belts in the western division over April to June period.

However, rainfall was recorded across the Northern sugar cane belts experiencing average to above average rainfall in the same period.

Rainfall in the entire cane growing districts recorded significantly below average rainfall in August 2010.

In summary the drought like condition prevailed from October 2009.
In October 2010 all the four mill areas recorded mainly below average rainfall however above average rainfall were recorded during troughs of low pressure from time to time.

The October weather was influenced by the convergence zone situated on the north of Fiji moved over the group.

Lautoka mill recorded (206.2mm), Penang mill (248.8mm), Labasa mill (165.0mm), and Rarawai mill (141.4mm) with a percentage of 202%, 230%, 143% and 137% above average rainfall respectively.
The month of November was wetter than normal as the trough of low pressure continued moving slowly above the group.

The rainfall varied in December as Lautoka, Rarawai and Labasa mill area received above average rainfall however Penang received below average.

Overall Labasa Mill area received the highest rainfall in 2010 whilst Lautoka recorded the lowest.
3 Annual Report 2010 The following is the rainfall record from January 2010 to December 2010 Table 1 MONTH January February March April May June July August September October November December Total RAINFALL (MM) RAINFALL (MM) Monthly Rainfall (mm) 2010 R A R A W A I RAIN DAYS 13 8 15 15 6 2 3 4 5 17 23 23 L A U T O K A RAIN DAYS 11 12 12 13 6 1 2 3 5 17 18 21 94.8 93.2 137.5 144.0 23.6 3.4 54.6 6.8 10.4 206.2 299.3 225.6 121 1299.4 (Av.108) 134 122.5 141.4 166.2 166.7 57.0 0.8 53.0 23.5 31.6 141.4 484.7 266.6 1655.4 (Av.
138) LAB A S A P E N A N G RAIN DAYS 12 11 17 13 12 6 3 5 6 18 20 23 146 RAINFALL (MM) 213.1 73.3 314.4 325.2 108.0 104.0 88.1 41.9 16.8 165.2 425.1 400.5 2275.6 (Av.

189) RAIN DAYS 11 18 17 15 11 11 6 6 9 14 20 24 162 RAINFALL (MM) 59.3 306.8 83.9 153.7 61.8 39.6 22.7 13.9 57.4 248.8 430.2 165.0 1643.1 (Av.137) 2.

2010 SEASON FORECAST OF CROP The Council and the Corporation had forecast a crop of 1.85million tonnes for the 2010 season.
Due to the effects of the El Nino and the unusual weather pattern during the season the actual crop dropped too far below the forecast.
Table 2.1 Mill Lautoka Rarawai Labasa Penang All Mill Table 2.2 Mill Lautoka Rarawai Labasa Penang All Mill 2009 Season (Forecast) 535,000 545,000 580,400 185,000 1,845,400 Crushed 527,466 520,488 554,574 175,486 1,778,014 2010 Season (Actual) 527,466 520,488 554,574 175,486 1,778,014 Stand over 12,885 25,900 38,000 7,010 83,795 Variance (+/-) -7,534 -24,512 -25,826 -9,514 -67,386 Total Crop 540,351 546,388 592,574 182,496 1,861,809 4 Annual Report 2010 Table 2.3 Cane Production 2002 – 2010 District/ Mill Lautoka Nadi Sigatoka Lautoka Mill Total Rarawai Tavua Rarawai Mill Total Labasa Seaqaqa Labasa Mill Total Penang Mill Total GRAND TOTAL Table 2.4 Mill Lautoka Rarawai Labasa Penang Total SEASON LENGTH AND AVERAGE WEEKLY CRUSH- 2010 Cane (Tonnes) 527,466 520,488 554,574 175,486 1,778,014 Termination Date 03/12/10 11/01/11 29/12/10 20/11/10 Average Wkly Crush (Tonnes) 21,978 17,948 19,806 7,019 66,751 Start Date 20/06/10 29/06/10 22/06/10 01/06/10 No of Wks 24 29 28 25 3.
MILL PERFORMANCE 5 Annual Report 2010 4.

CANE QUALITY AND SUGAR PRODUCTION As per the graph above, Lautoka Mill has registered the highest sugar content (POCS) in cane whilst Penang Mill records the best TCTS (tonnes cane to tonnes sugar) ratio for the 2010 season.

The TCTS was the highest in Rarawai standing at 15.5 followed by Labasa at 14.5 and Lautoka at 12.2 with an annual average standing at 13.5 for the second consecutive year.
Rarawai mill recorded the lowest POCS at 9.90 followed by Labasa at 10.19 and Penang at 10.58.

Average POCS was 10.36 for the year.
Table 4.1 Cane Quality and Sugar Production 2010 Mill Lautoka Rarawai Labasa Penang TOTAL Table 4.2 TCTS POCS Cane (Tonnes) 527,466 520,488 554,574 175,486 1,778,014 Cane Purity % 81.10 76.80 79.00 80.50 79.20 Pure Obtainable Cane Sugar & Tonne Cane Tonne Sugar Sugar (Tonnes) 44,617 30,710 38,183 17,996 131,506 Molasses (Tonnes) 31,482 32,412 40,615 8,485 12.20 15.50 14.50 11.20 13.50 10.87 9.90 10.19 10.58 10.36 112,993 Burnt Cane % 30.4 34.6 8.1 18.3 23.40 6 Annual Report 2010 2007 SEASON TCTS 10.20 9.70 11.50 10.80 10.44 POCS 11.25 11.60 10.44 11.45 11.19 2008 SEASON TCTS 10.70 11.30 11.80 10.80 POCS 10.70 10.80 10.99 10.54 10.79 11.20 2009 SEASON TCTS 14.80 15.00 12.20 10.20 13.40 POCS 10.19 9.93 10.75 10.62 10.37 2010 SEASON TCTS POCS 12.20 10.87 15.50 9.90 14.50 10.19 11.20 10.58 13.50 10.36 GREEN CANE PERCENTAGE BURNT CANE 367,116 340,399 509,653 143,372 1,360,540 69.6 65.4 91.9 81.7 76.6 160,350 180,089 44,921 32,114 417,474 PERCENTAGE 30.4 34.6 8.1 18.3 23.4 Mill Lautoka Rarawai Labasa Penang Average Table 4.3 MILL LAUTOKA RARAWAI LABASA PENANG TOTAL 5.
HARVESTING GANG PERFORMANCE Harvesting and cane supply during the weekends and towards the tail end of the season was below par for all mill areas.

It has become a tradition for cane cutters to take leave during the weekends for sports, festivals, religious and social activities.

Council’s attempts to encourage the harvesting gangs for continuous supply of cane during the weekends have not been very successful.
As growers representatives this is one of the biggest challenges that the Council is facing, which is to provide sufficient cane to the mill over the weekends .

6.

OTHER GROWERS SERVICES The Council continues to provide a wide range of other services to the growers through its cane district and head offices.

Services provided by the Council have helped the growers to save thousands of dollars.

Some of the key services provided by Council on a district by district basis during the year are shown below.
7 Annual Report 2010 GROWERS SERVICE AS AT 31ST DECEMBER 2010 PARTICULARS INCOME TAX RETURN VAT RETURN POWER OF ATTORNEY WILL SUBSTITUTE AGREEMENT TRANSFER OF REGISTAR LAND RENT OBJECTION GANG DISPUTE COR AMENDMENT NEW REGISTRATION VAT/ TAX REFUND CANE ACCESS ROAD GANG MATTERS CANE PAYMENT REVOCATION OF POWER OF ATTORNEY GANG MEETING INCREASE HARVESTING RATES LORRY WHEEL TAX FBA RENT APPEAL BOND GANG RATIONALISATION ADDITIONAL TICKET BOOK BURNT CANE INDIVIDUAL HARVESTING SPLIT OF REGISTRATION WEEDICIDE SALES CROP DAMAGE REPORT DROUGHT REPORT LEGAL SERVICES MOGA DRAINAGE SUBSTITUTE DISPUTE COR REPLACEMENT GENERAL ENQUIRIES TOTAL RAKIRAKI 83 4 38 35 237 16 35 0 16 23 - 25 61 96 16 54 83 107 0 0 2 21 0 95 132 0 1057 0 0 7 0 13 0 20 3190 5466 TAVUA 23 0 41 56 310 5 21 19 16 5 - 25 33 109 11 65 63 99 0 30 3 31 5 14 45 2 703 8 4 7 113 2 37 8 1122 3035 BA 85 19 92 39 361 21 6 35 70 26 - 13 17 47 26 49 140 244 1 2 1 0 0 5 0 0 1712 4 0 45 245 6 26 28 1696 5061 LAUTOKA NADI 200 6 53 38 384 2 4 0 10 5 - 6 48 154 10 47 31 213 0 3 0 0 0 8 0 0 1271 27 0 32 235 5 33 4 1097 3926 SIGATOKA 61 6 27 41 66 0 0 8 13 0 - 19 0 26 4 0 0 28 0 0 0 0 0 0 0 0 341 0 0 5 7 0 14 0 1161 1827 LABASA SEAQAQA 351 0 95 45 310 11 25 67 36 56 - - 20 4 9 1 2 155 101 0 12 0 0 28 1 0 0 362 47 42 18 0 2 0 2 1179 2155 TOTAL 7.
LEGAL SERVICES Annual Report 2010 The Council legal department which was established on 3rd February 2003 has continued to provide a range of legal services to the growers at affordable cost.

It is the aim of the Management to operate the legal services on user pay concept to avoid any additional burden on all growers.
During the year various types of services were provided to the cane growers throughout Fiji and the demand for this service is increasing as more growers benefit from the comparatively cheaper service.
Documents RakiRaki Tavua Ba Lautoka Nadi Sigatoka Labasa Seaqaqa Total Power of Attorney Revocation Power of Attorney 38 16 41 11 Agreements Transfer Probates & Letter Administration Deed Renunciation Transfer of Certificate of Registration Crop Lien Transmission by death Mortgage/ bill of sale Instrument of Tenancy Provisional Title/ Lease Registration of Will Caveat Record of Death/ Trustees Will Easement Deed of Retirement & Appointment Total Annual Report 2010 8.
WEEDICIDE SALES The Council sells the following types of weedicides to growers from its district offices at cost with marginal handling charges.

o Glyphosate 360 ( 5 litres & 20 litres) o Amine 720 (5 litres & 20 litres) o Diuron 80 (1 kg pack) Bulk of these weedicides and agro-chemicals are available from the South Pacific Fertilizers Co. and made accessible to all cane growers nation wide from suitably located SCGC outlets in their own districts and towns.

A total sale for 2010 season was $385,697.70.


9.

KNIFE/ FILES / HAND GLOVE SALES The Council introduced the sale of Knives, files and gloves to growers at a combo deal price of $15-00 per set in 2008 season.

This has been a very successful deal as the demand has been increasing year in year out with our 2010 sale recording 1519 sets surpassing the 2009 sale which stood at 914 sets.
The Management is negotiating the price from the supplier and will provide the opportunity to the growers to purchase knives, file and hand gloves at the same cost.

10.

GROWERS RICE SUPPLY The Council has been facilitating the arrangement to supply rice to the growers.

Tender for supply of rice is advertised in the daily news papers, potential suppliers are identified and agreements are made amongst the suppliers, FSC and the Council.
However due to lack of response from the suppliers, delivery of rice to the growers was arranged through the South Pacific Fertilizers Ltd. Rice is a price controlled item and SPF being cane Growers Company provided efficient service at affordable costs.

11.

FERTILIZER The price of fertilizer continues to be a topic around all growers meetings.

As noted the price of fertilizer remains an all time high of $45.59 per bag however the Government has been subsidizing it by $14.09 per bag.
Growers pay at the rate of $31.50 a bag.

The Council is thankful to the Government for its continued support for the sugar industry.

10 Annual Report 2010 12.

LTA CONCESSIONS The Council has been closely associated with the various cane lorry associations and at their request has been having successful negotiations for concessions of LTA regulations on cane Lorries such as waiver of wheel tax, reduction in road tax levy and minor infringements.
The lorry association members are mostly growers and these costs has been very high compared to the income for the 6 monthly operations during crushing.

The Council is indebted to the Government and LTA for their continuous support.

13.

FAIRTRADE CERTIFICATION Council’s application for Fair Trade was approved by FLO-CERT on 19th January 2009.

And later SCGC was certified as an organization for Fair Trade.
An introduction to Fair Trade for the growers of Fiji leaflet was prepared and distributed to growers via the district offices.

However due to some technicalities the industry leaders had to get together and form small producer organizations to operate Fairtrade supported by the Government.

Fairtrade Initiative for Labasa growers was launched by the Prime Minister and the Minister for Sugar in June 2010.
Following successful certification Labasa growers will be receiving their share of proceeds from the 2010 season sugar produced at Labasa Mill.

Council is hopeful that Fair-trade will be introduced in all Viti Levu Mills in 2011.

14.

CBUL TASK FORCE The Council as an organization has been included in the newly formed Committee on Better Utilization of Land (CBUL) Task Force in the Western Division.
The said committee was formed by the Government entirely to assist the Industry in getting the most available land to plant cane with a view to increase the production and making the Industry viable.

There were meetings conducted in all the cane growing districts and the Council played its part in promoting good husbandry practices and its willingness to assist growers in all aspects.

11 Annual Report 2010 15.


COUNCIL LEVY The Ministry of Sugar approved an Administrative Budget of $600 000.00 for the 2010 financial year.

The cane production for the year was 1,778,014 tonnes resulting in a chargeable levy of 0.34 cents per tonne of cane produced in the season.
Table 15.1 Last 6 years Annual Levy and Cane Production YEAR Levy Production Levy/ tonne 2005 $883,384 2,788,740 $0.32 2006 $910,510 3,225,551 $0.28 2007 $1,058,538 2,478,853 $0.42 2008 $870,879 2,321,783 $0.38 2009 $992,691 2,246,722 $0.44 2010 $600,000 1,778,014 $0.34 It must be noted that Council Levy per tonne is based on the size of crop each year and a decline in crop will result in a marginal increase in chargeable levy.
The Council has continued to endeavor to provide maximum service to all registered cane growers, despite maintaining the annual “general levy” almost the same over last 6 years.

It should be noted that the Council Levy has now been reduced to $600 000.00 after the termination of the Councilors.
12 Annual Report 2010 SUGAR CANE GROWERS COUNCIL ORGANISATION CHART BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER GENERAL MANAGER OPERATIONS EXECUTIVE ACCOUNTS OFFICER PERSONAL ASSISTANT EXECUTIVE OFFICER HEAD OFFICE EXECUTIVE OFFICER LEGAL HEAD OFFICE SENIOR EXECUTIVE OFFICER PENANG/RARAWAI MILL SENIOR EXECUTIVE OFFICER LAUTOKA MILL SENIOR EXECUTIVE OFFICER LABASA MILL RECEPTIONIST TYPIST HEAD OFFICE SECURITY OFFICER HEAD OFFICE EXECUTIVE OFFICER RAKIRAKI EXECUTIVE OFFICER TAVUA EXECUTIVE OFFICER BA EXECUTIVE OFFICER LAUTOKA EXECUTIVE OFFICER NADI EXECUTIVE OFFICER SIGATOKA EXECUTIVE OFFICER LABASA EXECUTIVE OFFICER SEAQAQA CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST CLERK / TYPIST Sugar Cane Grorvers Council Irina ncial Sta ternents For the year ended 31 December 2010 Sugar Cane Growers Council Contents Directors' report Report ofthe independent auditor Statement of comprehensive income Statement of changes in funds employed Statement of fiqancial position Statement of cash flows Notes to the financial statements Disclaimer Statement of operations l-2 J -25 26 27 -28 Sugar Cane Growers Council Directors' report The directors present their report together with the financial statements of the Sugar Cane Growers Council ("Council") for the year ended 3l December 2010 and the auditols report thereon.
Directors The directors of the Council in office at the date of this report are: Villiame Gucake - Director of Sugar Sundresh Chetty - Acting Chief Executive Officer State of affeirs In the opinion of the directors the accompanying statement of financial position gives a true and fair view of the state of affairs of the Council as at 31 December 2010 and the accompanyng statement of comprehensive income, statement of changes in funds employed 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 surplus for the year amounted to $96,148 (2009: deficit 5284,997).

Principal activities The principal activities of the Council are outlined under Section 42 of the Sugar Indusfry Act of 1984, which includes generally all such things and undertaking all such steps as it may consider necessary for the protection and development of the sugar industry.
The following significant events occurred during the prior and current year: (i) On I I August 2009 a Cabinet decision was made to dissolve the Council; (ii) On I I November 2009 a Cabinet decision was made that the services of the 38 councillors be terminated effective from 1l November 2009, the adminishative arrn of the Council be retained until end of 2009 crush or when a successor body to the Council is established whichever comes earlier and the Registrar of the Sugar Industry Tribunal was appointed to co-sigr cheques with the Acting CEO of the Council.
(iii) As at the date of the financial statements, there have been no further action taken with regard to the dissolution of the Council or appointrnent of a successor body.

(iv) The financial statements do not include any adjustnents relating to the recoverability or classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary as a result of the dissolution of the Council.
Sugar Cane Growers Council Directorr' rcport (eontinucd) Events subccqucnt to behncc detc Thcne has not arisen in tile int€mal betn'ccn the end of the ycar and the date of this rcport any item, tansaction or event of a matcrial and musual naturc likely, in the opinion of the directors, to affect significantly the operations of the Cormcil, thc results of those opcrations or the statc of atrairs of the Cormcil in su@ucNrt financialyean.

DatcdatLautokathis oS+h dav of fi,a1t/\sl ZOn.


Signed in accordance with a resolution of the directon.
\)b Dircctor INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUGAR CANE GROWERS COUNCIL Scope We were engaged to audit the financial statements of Sugar Cane Growers Council for the year ended 3l December 2010, consisting of the statement of financial position, statement of comprehensive income, statement of changes in funds employed, statement of cash flows, and accompanying notes set out on pages 4 to 25.
The Council's directors are responsible for the preparation and presentation ofthe financial statements and the information contained therein.

Limitation of scope As stated in Note 2l to the accounts, a Cabinet decision was made to dissolve the Council on l l August 2009.

As at the date of the financial statements, there have been no further actions taken with regard to the dissolution of the Council or appointment of a successor body.
We have not been able to obtain sufficient appropriate audit evidence to determine whether the Council will continue as a going concern.

The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts and classification of liabilities that misht be necessarv as a result of the dissolution of the Council.
Disclaimer of opinion Because of the significance of the matters discussed in the preceding paragraph, we do not express an opinion on the financial statements.
5 August 2011 Nadi, Fiji Islands Y-PAb KPMG Chartered Accountants Sugar Cane Growers Council Statement of comprehensive income For the year ended 31 December 2010 Growers Levy Dividend income Other income Less expenses Administrative expenses Personnel expenses Other operating expenses Surplus from operations Finance income Finance expense Operating surplus Share ofloss ofequity accounted investee Impairment of investments Surplus/(Loss) for the year Other comprehensive income Note 2010 $ 2009 $ 5 6 8 7 9 9 ll ll 600,000 992,691 13,265 8,321 154,890 106,231 768,155 1,107,243 (4,262) (185,392) (297,587) (343,526) (365,651) (495,020) 100,655 83,305 33,300 (7,957) 21,269 (9,571) 125,998 95,003 (81,619) (29,850) (298,381) 96,149 (284,997) Total comprehensive surplus/(loss) for the year 96,148 (284,997) The above statement of comprehensive income is to be read in statements set out on pages 8 to 25. conJuncuon with notes to the financial Sugar Cane Growers Council Statement of changes in funds employed For the year ended 31 December 2010 2010 $ 2009 $ Opening funds employed 2,713,345 2,999,342 Total comprehensive incomefor the year Surplus(Loss) for the year Other comprehensive income Balance at 3l December 96,148 (284,997) 2,809,493 2,713,345 The above statement of changes in funds employed is to be read in conjunction with notes to the financial statements set out on pages 8to25.
Sugar Cane Growers Council Statement of financial position As at 31 December 2010 Assets Non-current assets Property, plant and equipment Other investments Total non-current assets Current assets Cash at bank and on hand Term deposits Other receivables Prepayments Total current assets Total assets Funds balance Funds employed Total funds employed Non current liability Loans and borrowings Total non current liabilitv Current liabilities Loans and borrowings Other payables and accruals Employee benefits Total current liabilities Total liabilities Total funds employed and liabilities Signed on behalf of the Board Note 2010 s 2009 $ l0 1l l2 t2 l3 t4 14 l5 16 1,163,757 286,092 l,44g,g4g 701,852 550,000 505,751_ 1,757,603 _3ew,a9 1,213,966 330,669 1,544,535 470,861 450,000 740,375 11,767 1,673,003 3217,538 2,909,493 2,gog,4g3 2,713,345 2,713,345 229,000 228,000 152,000 95,1 55 29,038 276,193 504,193 3217,538 152,000 152,000 76,000 134,200 35,759 245,959 397,959 3207,452 tit\ Ir- 2 1.- - -*.
;f I \l) I)irector The above statement of financial position is to be read in conjunction with notes to the financial statements set out on pages 8 to 25.
Sugar Cane Growers Council Statement of cash flows For the year ended 31 December 2010 Operating activities Receipts from stakeholders Payments to suppliers and employees Interest and other finance charges paid Note 2010 $ 2009 $ 984,214 (516,206) (7,957) 822,783 (940,554) (9,571) Cash flows (used in) / from operating activities 460,051 (127,342) Investing activities Interest received Transfer of funds from term deposits Acquisition of additional shares in associate Acquisition of property, plant and equipment Cash flows (used in) investing activities Financing activities hoceeds from/ (repayment of) loan 33,300 (100,000) (10,360) 21,269 100,000 (380,000) (58,370) (77,060) (3 l7,l0l) (152,000) 390,000 Cash flows from financing activities (152,000) 380,000 Net (decrease) / increase in cash and cash equivalents 230,991 (64,443) Cash and cash equivalents at I January Cash and cash equivalents at 31 December Non-cash investing activity t2 l8 470,961 535,304 70t,952 470,861 The above cash flow statement is to be read in conjunction with notes to the financial statements set out on pages 8 to 25.
Sugar Cane Growers Council Notes to the financial statements For the vear ended 31 December 2010 l. Reporting entity Sugar Cane Growers Council ("Council") is a body corporate domiciled in Fiji, established under the Sugar Industry Act of 1984.

The address of the Council is 75 Drasa Avenue, Lautoka.
The principal activities of the Council are outlined under Section 42 of the Sugar Industry Act of 1984, which include generally all such things and undertaking all such steps as it may consider necessary for the protection and development of the sugar industry.

The principal accounting policies adopted understanding of the financial statements.

The otherwise indicated.


by the Council are stated to assist in a general policies have been consistently applied except where Basis of preparation (a) Statement of compliance The financial statements have been prepared Standards (IFRS) adopted by the International FiiiLaw.
in accordance with Intemational Financial Reporting Accounting Standards Board and the requirements of The financial statements were authorised for issue by the Board of Directors on 5 Aueust 20 I l (b) Going concern basis of accounting The Council's financial statements have been prepared on a going concern basis, which assumes that the Council will continue in its present form.

As disclosed in Note 21, a Cabinet decision was made to dissolve the Council on I I August 2009.
As at the date of the financial statements, there have been no further actions taken with regard to the dissolution of the Council or appointment of a successor body.

(c) Basis of measurement The financial statements have been prepared on the historical cost basis except where otherwise stated.

(d) Functional and presentation currency The financial statements are presented in Fiji dollars, which is the Council's functional currency.
(e) Use of estimates and judgments The preparation of financial statements in conformity with IFRS 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.

Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 2.
Basis of preparation (continued) (e) Use of estimates and judgments (continued) 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.
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 notes: - Note l0 -Note ll -Note 13 -Note 16 Property, plant and equipment Other investments Other receivables Employee benefits 3.
Signifi cant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the Council.

(a) Equity accounted investees Associates are those entities in which the Council has significant influence, but not control, over the financial and operating policies.
lnvestrnent in Associates are accounted for using the equity method (equity accounted investees) and are recognised initially at cost.

The cost of investment includes transaction cost.

The financial statements include the Council's share of the income and expenses and other comprehensive income, after adjustments to align the accounting policies with those of the Council, from the date that significant influence cornmences until the date that significant influence ceases.
When the Council's share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest is reduced to nil and the recognition of further losses is discontinued except to the extent that the Council has an obligation or has made payments on behalf of the investee.

(b) Financialinstruments (l) Non-derivativefinancialassets The Council generally recognises loans and receivable and deposits on the date that they are originated.
All other financial assets are recognised initially on the trade date, which is the date that the Council becomes aparty to the contractual provisions of the instrument.

Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 3.
Significantaccountingpolicies(continued) (b) (i) Financial instruments (continued) Non-derivative financial assets (continued) 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 transferred financial asset that is created or retained by the Council is recognised as 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 liabilitv 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, loans and receivables and available-for-sale financial assets.

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, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses.

Loan and receivables comprise cash and cash equivalents, and other receivables.

Cash and cash equivalents comprise cash on hand and cash at bank for the purposes ofthe statement of cash flows.

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

Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses.
Any sale or reclassification of a more than insignificant amount of held-to- maturity investments not close to their maturity would result in the reclassification of all held to maturity investments as available for sale, and prevent the Council from classifying investment securities as held to maturity for the current and the following financial year.

Held-to-maturity fi nancial assets comprise term deposits.
l0 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 3.

Significant accounting policies (continued) (b) (D Financial instruments (continued) Non-derivative financial assets (continued) Financial assets at fair value through profit and loss A financial asset is classified at fair value through profit or loss ifit 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 pwchase and sale decisions based on their fair value in accordance with the Council's documented risk management or investment stratery.

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 designated at fair value through profit or loss comprise equity securities that otherwise would have been classified as available for sale.

(ii) Non-derivativefinancialliabilities The Council initidly recognises debt securities issued on the date that they are originated.

All other financial liabilities are recognised initially on the trade date at which the Council becomes paxry ro the conkactual provisions of the instrument.
The Council derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

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 settle on a net basis or to realise the asset and settle the liability simultaneously.
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 loans and borrowings, other payables and accruals.
(c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.

ll Sugar Cane Growers Council Notes to the financial statements For the year ended 3L December 2010 3.

Significant accountingpolicies (continued) (c) Property, plant and equipment (continued) (i) Recogrrition and measurement (continued) Cost includes expenditure that is directly attributable to the acquisition of the asset.
The cost of self- constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted as separate items (major components) of property, plant and equipment.
The 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 expenses in profit or loss.When revalued assets are sold, any related amount included in the revaluation reserve is transferred to retained earnings.
(ii) Subsequent expenditure The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Council and its cost can be measured reliably.

The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

(iii) Depreciation Depreciation is based on the cost of an asset less its residual value.
Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component ofan item ofproperty, 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.

Freehold land is not depreciated.

The estimated useful lives for the current and comparative years are as follows: Asset Fixtures & fittings Plant & equipment Rate 2s% 25% t2 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 3.
Significantaccountingpolicies(continued) (c) Property, plant and equipement (continued) Asset Motor vehicles Land & building Leasehold land Rate 25% r.25% - 5% over the period of lease Depreciation methods, useful lives and residual values are reviewed at each reporting date and adj usted if appropriate.
(d) Impairment (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 ofthe asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
Loans and receivables The Council considers evidence of impairment for loans and receivables at both a specific asset and collective level.

All individually significant receivables are assessed for specific impairment.

All individually significant loans and receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.
Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables and held-to-maturity invesfinent securities with similar risk characteristics.

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 and receivables.

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 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.

l3 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 3.

Significant accounting policies (continued) (d) Impairment (continued) (ii) Non-financial assets (continued) 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-tar 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 CGtf').

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount.

Impairment losses are recognised in the profit or loss.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit (group of units) on pro rata basis.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(e) (0 Provisions A provision is recognised il as a result of a past event, the Council has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

The unwinding of the discount is recognised as finance cost.

Employee benefits (i) Superannuation Contributions are paid to the superannuation fund on behalf of employees to secure retirement benefits.

Costs are included in profit or loss.


(ii) Short term benefits Outstanding annual leave liabilities due to employees at reporting date are brought to account based on current legal and contractual entitlements.

t4 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 3.
Significant accountingpolicies (continued) (g) Revenue (i) Lerry 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 Section 51 and 53 of the Sugar lndustry Act of 1984.

The collection of levies by FSC is deducted from the growers' share of proceeds ofsale ofsugar, molasses and other by-products ofsugar.
(ii) Other income Revenue from dividend and other operating activities are recognised in profit or loss on an accrual basis.

(-iii) Grant income An unconditional govemment grant related to a asset is recognised in profit or loss as other income when the grant becomes receivable.
Grants are recognised initially as deferred income at fair value when there is reasonable a:isurance that they will be received and the Council will comply with the conditions associated with the grant and are then recognised in profit or loss as other income on a systematic basis over the useful life of the asset.

Grants that compensate tlte Council for expenses incurred are recognised in profit or loss as other income on a systematic basis in the same periods in which the expenses are recognised.
(h) (i) 0) (k) Income tax The Council is exempt from income tax under the provision of section 17 (4) of the lncome Ta< Act, Cap20l.

Financing income and expenses Financing income and expenses comprises bank charges and interest received on the term deposits held.

Value Added Tax (VAT) The financial statements have been prepared on a gross basis (VAT inclusive) since the organization is not registered for VAT.
Comparative information Comparative information has been restated, where necessary, to align with the current year presentation.

l5 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 4.
Financial risk management policies Overview The Council has exposure to the following risks: (i) Credit risk (iD Liquidity risk (iii) Market risk This note presents information about the Council's exposure to each of the above risks, t}te Council's objectives, policies and processes for measuring and managing rislq and the Council's management of capital.

Further quantitative disclosures are included throughout these financial statements.
Risk management framework The Board of Directors have overall responsibility for the establishment and oversight of the Council's risk management framework.

The Council's risk management policies are established to identiff and analyse the risks faced by the Council, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Council's activities.
The Council, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

(D Credit risk Credit risk is the risk of financial loss to the Council if The Fiji Sugar Corporation Limited (FSC) fails to meet its contractual obligations, and arises principally from the Council's receivables from sugarcane growers which are collected by FSC from cane proceeds.
Other receivables The Council establishes an allowance for impairment that represents its estimate of incurred losses in respect of other receivables and investments.

The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified.
The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.

The Council held cash and cash equivalent of $1,251,852 at3l December 2010 (2009: $920,861), which represents its maxium credit exposure on these assets.
t6 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 Financial risk management policies (continued) Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk at the reporting date was: Cash at bank Term deposits Other receivables Total (iD Liquidity risk 2010 o/o 40% 700,023 550,000 3l% 29Yo 505,751 1,755,774 100% 2009 469,032 450,000 740.375 1,659,407 Vo 28Yo 27% 45% l00Yo Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Council's approach to managing liquidity is to ensure, as far as possible, that it will always have sufFtcient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incuning unacceptable losses or risking damage to the Council's reputation.
2010 Financial assets Cash and cash equivalents Term deposits Other investments Other receivables Financial liabilities Loans and borrowings Other payables and accruals Employee benefits Carrying amount $ 6 months or less s 6 -12 months $ 1- 2years 2-5 years $ $ 701,952 550,000 286,092 505,751 701,852 sos,zs r 550,000 zte,o_gz (228,000) (76,000) (76,000) (76,000) (134,200) (134,200) (35,759) (35,759) 1,645,736 1,037,644 474,000 (76,000) 210,092 t7 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 Financial risk management policies (continued) (ii) Liquidity risk 2009 Financial assets Cash and cash equivalents Term deposits Other Investments Other receivables Financial liabilities Loans and borrowings Other payables and accruals Employee benefits Carrying amount 6 months or less $ $ 6 -12 months $ l- 2years $ 2-5 years $ 470,961 450,000 330,669 740,375 470,861 740,375 450,000 330,669 (380,000) (76,000) (76,000) (228,000) (95,155) (95,155) (29,038) (29,038) 1,487,712 1,097,043 374,000 (76,000) 102,669 (iii) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Council's income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk The Council adopts a policy of ensuring that its exposure to changes in interest rates on borrowings is on a fixed-rate basis, taking into account assets with exposure to changes in interest rates.
At the reporting date the interest rate profile of the Council's interest-bearing financial instruments was: Variable rate instruments Term deposits Sensitivity analysis 2010 $ 2009 $ 550,000 ls0,qgg_ 450,000 __1s0,009_ The approximate impact of a l% change in the interest is: 5,500 4,500 l8 Sugar Cane Growers Council Notes to the financial For the year ended 31 statements December 2010 J.
6. Dividend income Unit Trust of Fiji Other income Gain on disposal of property, plant & equipment Other income Rental income Sundry income - legal services Sale of Durion 7.

Other operating expenses Included in other operating expenses are the following items: Allowance for uncollectibility Auditor's remuneration - audit services - other services Depreciation Directors'fees Loss on remeasurement of investments to fair value Legal fees 8.
Personnel expenses Annual leave Fiji National Provident Fund contributions Key management compensation - Short term benefits Training and Productivity Authority of Fiji Wages and salaries 20lo $ 13,265 2009 $ 8,321 5,300 7,322 90,360 10,245 41,663 l54,gg0 42,742 7,000 721 65,769 27,991 17,5gg 22,747 53,750 2,775 200,716 297,597 4,500 3,884 70,490 6,026 21,331 106,231 15,957 6,500 3,762 62,105 68,691 24,404 1,362 21,913 23,505 53,750 3,786 240,572 343,526 The average number of employees during the year was: 24 26 9. Financing income and expenses Finance income Interest income Finance exoense Bank charges Interest expense 33,300 1,877 6,090 7,957 2,450 7,121 9,571 t9 a E !
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1 : E E E T o r )N r a o \ ov a ou s\ l .s f - c o \ \c o1 a F r € € € € € € € € € € € € € € € Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 11.

Other investments Non-current invesfrnent Financial assets designated at fair value through the statement of comprehensive income.

(i) The Fiji Sugar Corporation Limited This represents investment in The Fiji Sugar Corporation Limited of ll9,40l ordinary shares at $Nil (2009: $0.25).
The company was delisted from the South Pacific stock exchange on 24 February 2011.

(ii) Unit Trust of Fiji This represents investnent in Unit Trust of Fiji of 234,502 units (2009:224,492 units) at$1.22 (2009: $1.3a).
(i) Reconciliation of investment in The Fiji Suear Corporation Limited Balance at I January Provision for impairment Balance at 3l December (ii) Reconciliation of investnent in Unit Trust of FUi: Balance at I January Additional units acquired during the year (Loss)/gain on remeasiurement of invesfrnent to fair value 2010 $ 2009 $ 29,850 286,092 300,819 286,092 330,669 -- 29,850 (29,850) 300,819 13,264 (27,991) 42,984 (13,134) 29,850 303,768 8,321 (rr,270) Balance at 3l December _x6,0n _100,819_ 2l Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 11.
Other investments (continued) Investnent - South Pacific Fertilizers Limited Balance at I January Additional shares acquired during the year Equity share of loss during the year Nil% (2009:9.4%) Balance at 31 December Provision for impairment of investrnent 2009 $ 380,000 (81,619) 298,381 2010 $ 298,391 298,381ee The Council holds9.4Yo (2009:9!%) shares in South Pacific Fertilizers Limited (SPFL).

12.
12.

Cash and short term deposits Cash at bank Cash on hand 700,023 1,829 469,032 1,829 Cash and cash equivalents in the cash flow statements 701,852 470,861 Term deposits 550,000 450,000 _1251,952_ _920,861 The average interest rate on term deposits in 2010 was 6.65Yo (2009:7.25%).The deposits had an average maturity of365 days (2009: 365 days).

13.
13.

Other receivables Growers levy receivable from The Fiji Sugar Corporation Other receivables Less: Provision for doubtful debt 521,908 26,585 (42,742) 731,572 9,903 _lql,?sl_ _1N37s_ Growers levy 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 ofsugar.

14.
14.

Loans and borrowings Current liabilities Secured loan from Sugar Cane Growers Fund Non current liabilities Secured loan from Sugar Cane Growers Fund 76,000 152,000 152,000 228,000 228,000 380,000 :: 22 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 14.

Loans and borrowings (continued) The loan is repayable by annual repayments of $76,000 and interest is being charged at the rate of 2Vo for the first three years and 3% for the remaining term.
The loan from Sugar Cane Growers Fund is secured by a first registered mortgage over CT7926 with improvements thereon.

15.

Other payables and accruals Payables South Pacific Fertilizers Limited 16.

Employee benefits Balance at I January Expense recognised in the profit or loss Leave utilised Balance at 3l December r7.
Related parties 2010 $ 64,468 69,732 _r34200_ 2009 $ 65,986 29,169 29,039 17,599 (10,878) 19,146 21,913 (12,02r) 35,759 29,038 (a) Directors The following were directors for the Council during the year: Villiame Gucake - Director of Sugar Sundresh Chetty - Acting Chief Executive Officer Directors' fees are disclosed in Note 7.

(b) Identity of related parties Fiji Sugar Corporation (FSC) and South Pacific Fertilizers are related parties by virtue of common directorship and shareholding.
Other related parties of the Council include key stakeholders in the Fiji Sugar Indusbry, namely, the Government of Fiji, Sugar Research lnstitute of Fiji and Sugar Cane Growers Fund.

23 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 17.
Related parties (continued) (c) Amounts receivable from (payable to) related parties South Pacific Fertilizers Limited (Note l5) Growers levy receivable from Fiji Sugar Corporation Limited (Note 13) 2010 $ 2009 $ (6e,732) (29,169) 52l,g0g 731,572 (d) Transactions with related parties During the year, the Council entered into various tansactions with related parties which were at normal commercial terms and conditions.
The aggregate value of material tansactions with the related parties during the year is as follows: Acquisition of additional shares in South Pacific Fertilizers Levy income - The Fiji Sugar Corporation Limited 2010 $ 2009 $ eoo,ooo iil,li?

(e) Transactions with key management personnel Key management personnel includes the Acting Chief Executive Officer.

In addition to his salary, the Council also provides non-cash benefits to key management personnel.
Key management compensation is disclosed in Note 8. lE.

Non-cash investing activity Trade-in of property, plant & equipment 2010 $ 5,300 2009 $ 19.

20.

Capital commitments Capital commitrnents as at 3l December 2010 amounted to $Nil (2009: $Nil) Contingent liabilities The Council is a defendant in various third party claims and employee related cases.

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

21.
21.

Significant events during the prior and current year The following significant events occurred during the prior year: (D On I I August 2009 a Cabinet decision was made to dissolve the Council; 24 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2010 21.
Significant events during the prior and current year (continued) (iD On I I November 2009 a Cabinet decision was made that the services of the 38 councillors be terminated effective from 11 November 2009, the administrative arm of the Council be retained until end of 2009 crush or when a successor body to the Council is established whichever comes earlier and the Registrar of the Sugar Indusby Tribunal was appointed to co-sign cheques with the Acting CEO of the Council.
(iiD As at the date of the financial statements, there have been no further actions taken with regard to the dissolution of the Council or appointnent of a successor body.

(iv) The financial statements do not include any adjustnents relating to the recoverability or classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary as a result of the dissolution of the Council.

22.
22.

Events subsequent to balance date 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 directors, 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.
25 Disclaimer The additional financial information presented on pages 27 to 28 is in accordance with the books and records of Sugar Cane Growers Council which have been subjected to the auditing procedures applied in our statutory audit of the Council for the year ended 3l December 2010.

It will be appreciated that our statutory audit did not cover all details of the additional financial information.
Accordingly, we do not express an opinion on such financial information and no warranty of accuracy or reliability is given.

In accordance with our firm policy, we advise that neither the firm nor any member or employee of the firm undertakes responsibility arising in any way whatsoever to any person (other than the Council) in respect of such information, including any erors or omissions therein, arising through negligence or otherwise however used.
5 August 2011 Nadi, Fiji Islands w4G KPMG Chartered Accountants 26 Sugar Cane Growers Council Statement of operations For the vear ended 3L December 2010 Income Dividend income Gain on disposal of property, plant & equipment Gain on remeasurement of investments to fair value Interest income Growers Levy Rental income Sundry income - legal services Sundry income - service fees Sale of Durion Other income 2010 $ 2009 $ 13,265 5,300 33,300 600,000 90,360 10,245 41,663 7,322 8,321 4,500 21,269 992,691 70,490 6,026 21,331 3,894 Total income 801,455 l,l2g,5l2 Expenditure Advertising Doubtful debts Auditor's remuneration - audit services - other services Bank charges City rates Cleaning Computer maintenance and network Councillors travel and subsistence Depreciation Directors'fees Donations Electricity Fiji National Provident Fund contributions General expenses Growers accountant's fees Hospitality Industry seminar and workshop Insurance Interest expense 396 42,742 7,000 72r 7,977 721 9,322 65,76; 410 27,104 22,747 5,352 5,625 1,070 22,470 6,090 2,000 15,957 6,500 3,762 2,450 721 12,164 l0l,3l3 62,105 68,691 310 23,229 23,505 ll,9l7 5,625 966 50 22,990 Expenses balance carried forward 219,406 371,375 The above statement of operations is to be read in conjunction with the disclaimer report set out on page 26.
27 Sugar Cane Growers Council Statement of operations For the year ended 31 December 2010 Expenses balance brought forward Legal fees Loss on remeasurement of investments to fair value Meeting costs - board Meeting costs - council Meeting costs - other Motor vehicle expenses Office expenses Postage Professional services Rent Repairs and maintenance Research and development Security expenses Stationery and printing Subscriptions Telephone Training and Productivity Authority of Fiji Wages and salaries Water rates Total expenditure Operating surplus 2010 s 2009 s 219,406 371,375 27,991 426; 38,939 5,594 2,844 4,100 30,489 18,264 10,098 8,227 4,243 24,239 2,775 272,065 2,023 1,362 24,404 10,397 4,ggl 33,245 6,223 2,547 19,369 31,969 153,704 1,794 10,292 6,274 5,226 29,556 3,786 316,235 770 675,457 1,033,509 125,999 95,003 The above statement of operations is to be read in conjunction with the disclaimer report set out on page 26.
28