Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694828306645.pdf (Fiji)
SUGAR CANE GROWER COUNCIL ANNUAL REPORT 2017 Serving the Cane Growers of 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.
1 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Table of Contents LETTER TO THE MINISTER CEO’ S REPORT ABOUT SCGC ABOUT CANE GROWERS YEAR IN REVIEW CORPORATE GOVERNANCE GOVERNANCE SCGC FINANCIAL SCGC FINANCIAL 3 3 4 4 5 5 8 8 11 11 20 20 STATEMENTS FOR THE STATEMENTS FOR THE YEAR ENDED 31ST YEAR ENDED 31ST 26 26 DECEMBER 2017 DECEMBER 2017 2 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 2.2 SOME OF THE CHALLENGES FACED BY THE GROWERS: Labour Shortage Lack of Communication on Research and development with Growers Lack of Interest from younger generation Mill Inefficiencies High Cost of Harvesting and transport CHALLENGES Ageing group of growers Land Issues- lease expiry, high rental premium, lengthy lease processing time High Farm input cost Adverse Weather Lack of irrigation facilities 10 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 3 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 The Sugar Cane Growers Council remains the sole legal representative body of the cane growers in Fiji.
All the registered cane growers in Fiji are automatically members of the SCGC.

The Council has increased its scope of works and keeps its door open throughout the day to assist growers with their issues.

The Council provides wide range of administrative services to the growers from its Head Office and 8 district offices in the cane belt areas with a strong team of 26 staff.
that Besides effective representation, the SCGC provides various services to its members include: Growers consultation meetings related to cane farming activities, costs reduction plans, yield increase, information and education, grievances and disputes, legal services, distribution of herbicides, preparation of Income Tax Returns and many others.
productivity and The Council is involved in advocacy at all levels as a key stakeholder maintaining, defending, profiling, promoting and assisting the interest of the cane growers’ vis-à-vis the millers, government and all agencies/bodies at the national level.

Concerted continuously maintained to improve SCGC outputs for the growers and industry’s well-being.

effort is forecast for 2017 crop was 2.14m tonnes; however, the actual harvest was 1.63m tonnes which are 24% lower than the expected crop.
Council acknowledges The the tremendous support provided by the Government and comprehensive reform implemented.

The programs being Financial support to the sugar sector in 2017 season was in excess of $60m that included subsidies for herbicide, cane planting grant, cane access roads, farm machineries, cane harvesters, incoming new growers, cane transfer from Penang to Rarawai Mill.

The Council also acknowledges the funds provided by the Government to defray the administrative the Council services.
expenses of Growers are no longer required to pay a levy which is a huge relief for them.

The Sugar Cane Industry is at a crucial point of its development.

While the Government’s support has helped immensely to stabilize the industry, the focus must now be on commercial viability, industry competitiveness and sustainability.

The SCGC will continue to work closely with the growers, Government and all the other stakeholders to ensure the survival of the industry in the long term.
growing 2017 has been another challenging year for the Sugar Cane Industry in Fiji.

The cane experienced significant drier conditions than normal since April 2017.

This had a major impact on the 2017 crop as well as the preparation of the 2018 crop.
The areas CEO’S REPORT CEO’S REPORT SUGAR CANE GROWERS COUNCIL, SUNDRESH CHETTY (MR.) SUGAR CANE GROWERS COUNCIL, SUNDRESH CHETTY [MR.] 4 4 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 5 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 1.0 ABOUT SUGAR CANE GROWERS COUNCIL 1.1 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 operations of the Council are managed by the Chief Executive Officer with the assistance of 25 staff members.

The major functions of the Council are to take all steps as it may consider necessary for the protection and development of the industry and of the interests of registered growers.
The SCGC remains the sole legal representative body of the Cane Growers in Fiji.

All Cane Growers in Fiji are automatically members of the SCGC.
1.2 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: -  encourage and promote cooperation among registered growers, and between registered growers and other engaged in the Industry;  remove or provide redress of all legitimate grievances of registered grower in any particular sector, district or mill area;  provide registered growers with goods and services relating to the business of cane- growing;  establish, hold and administer funds for the benefits of registered growers;  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  perform such other functions as may be assigned to the Council by this Act or any other written law.
6 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 1.3 CURRENT STATUS OF THE INDUSTRY The Fiji sugar cane industry continues to be a significant contributor to our economy.

It provides livelihoods to about 25% of our total population and is still a major foreign exchange earner.

In 2016, our sugar cane industry was badly devastated by a Tropical Cyclone (Winston) which was the first Category 5 Cyclone to ever hit Fiji and the second strongest ever to hit the Southern Hemisphere.
It came with heavy downpour and strong gusting winds of up to 360 kilometers per hour on Saturday, 20th of February, 2016.

Cane belt areas were severely affected in the island of Viti Levu where 3 of the country’s 4 sugar mills are located.

One of the three mills in the country (Penang Sugar Mill) was damaged beyond repair and as such could not be operated in the 2016 cane crushing season and has been completely shut down.
In total over 7,000 cane growers out of the 13,000 active cane growers; that is (54%) had been directly affected by Tropical Cyclone Winston.

The total damage to the sugar sector was estimated to be around FJ$163.5 million.

The entire population of the country who were affected by the Tropical Cyclone Winston was assisted with housing assistance to rebuild their homes by the Fijian Government.

The Fijian Government has been providing unwavering support to the Sugar Industry.
Our Prime Minister who is also the Minister responsible for the Sugar Industry remain committed to the continued reforming of our industry so that it remains viable and sustainable for the sake of the 200,000 Fijians who derive their livelihoods from it.

7 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.0 CRUSHING SEASON- 2017 COMMENCEMENT AND TERMINATION DATES & SEASON LENGTH – 2017 The 2017 crushing season started well with all mills commencing crush in the first week of June.
The overall performances of the mills were better compared to 2016 season; however, Viti Levu mills had experienced some mechanical problems while Labasa mill encountered major problems to the cane shredder and number two mill.

A significant improvement in cane supply was also noted with the introduction of 43 mechanical harvesters.

Approximately 19% of the total crop was harvested using the machines.
With growers still facing difficulty in engaging cutters, consistency in cane supply still remains a major concern to the industry.

With permanent closure of Penang mill in 2016, growers have been asked to transfer the cane to Rarawai Mill with no addition cost to them.

Penang mill area cane transfer cost is fully funded by the government.
In 2017 season with the cooperation of lorry transport operators and the industry stakeholders, 100% of Penang mill area crop was successfully transferred to either Rarawai or Lautoka mill for crushing.

follows: The mills terminated crush between October 2017 and November 2017 after finishing all harvestable crop.
The season length for each mill was as  Lautoka mill  Rarawai Mill  Labasa Mill - - - 19 weeks 21 weeks 25 weeks 15 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 CANE GROWERS OF FIJI 8 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Table 4.1 Sugar make and the TCTS Sugar (Tonnes) T.C.T.S Lautoka Rarawai Labasa Average 54,173 55,595 70,604 180,372 8.4 9.0 9.6 9.0 4.2 BURNT CANE There has been a significant decrease in the level of cane burning.
Labasa mill recorded the lowest percentage of burnt cane at 31% and Lautoka recorded the highest at 50%.

Penang and Rarawai recorded 34% and 42 % respectively.

Council and Corporation staff carried out active anti- burning campaigns in the bid to produce better quality sugar for our markets.

However, more awareness needs to be carried out highlighting the benefits and cost savings to the miller and the growers.
BURNT CANE PERCENTAGE FOR LAST 15 YEARS 70% 60% 50% 40% 30% 20% 10% 0% % Burnt Cane Year 16 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 2.0 ABOUT THE GROWERS There are about 16,000 registered cane growers, however close to 13,000 growers actively grow cane individually running very small family cane farms (an average of 4 hectares/ 10 acres), with the majority producing less than 300 tonnes per year.
The vast majority of the farms have a size of 4 hectares, a legacy from the British colonial administration and the end of the indentured labour system in the 1920s.

At this time, a plot of 4 hectares of land was leased to individual farmers, which was considered to be sufficient to support a farmer and his family working alongside him.

Over the years, many farmers have moved to urbanized areas in the quest of easier and better jobs.
Nowadays most of the farm areas are efficiently utilized by farmers of older generation (Fifties to Sixties).

All the younger generations have left to attend the universities to obtain white collar jobs in the urban areas.

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

Mechanization is now being developed: besides the importance of such an investment, small-scale farming and difficult terrains are not appropriate to mechanization.
2.1 REGULATORY FRAMEWORK The structure and the organization of the Sugar Industry in Fiji are extremely regulated, based on the Sugar Industry Act 1984.

The main objectives of the Sugar Industry Act are to establish the various bodies which govern the industry.

The relationship between the millers and growers has been the subject of Master Award, which set out in great detail the rights and obligations of the two parties.
In 2017, the total number of registered growers in the country was 16,583 with 1,875 number of cane harvesting gangs.

Below is the summary of all district growers and gangs.

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

of Growers No.
of Gangs 1,739 1,660 3,674 2,099 2,163 1,155 3,439 654 16,583 189 144 355 216 268 108 426 169 1,875 9 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 2.2 SOME OF THE CHALLENGES FACED BY THE GROWERS: Labour Shortage Lack of Communication on Research and development with Growers Lack of Interest from younger generation Mill Inefficiencies High Cost of Harvesting and transport CHALLENGES Ageing group of growers Land Issues- lease expiry, high rental premium, lengthy lease processing time High Farm input cost Adverse Weather Lack of irrigation facilities 10 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.6 LEGAL SERVICES Council's legal department was established in 2003 and it has continued to provide a range of legal services to the growers at affordable cost.
The Management has continued to operate the legal services on user pay concept to avoid any additional burden on all growers.

During the year some 1059 legal services were provided to the cane growers throughout the country and the demand for this service is increasing as more growers benefit from the comparatively cheaper services.

Legal services listed below are provided with only disbursement cost.
PROBATES OTHER CONVENYANCE MATTERS LAST WILL & TESTAMENT RECORD OF DEATH POWER OF ATTORNEY INSTRUMENT OF TENANCY TRANSMISSION BY DEATH LETTERS OF ADMINISTRATION TRANSFER MORTGAGE, CROP LIEN SALES & PURCHASES AGREEMENT DEED- Family, Renounciation 18 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 OPERATIONS REVIEW Cane Production Cane Delivery Crop Yield MechanicalHarvesting Crop Damage 11 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 3.0 OPERATIONS REVIEW 2017 3.1 ACTIVITIES REPORT 2017 The Management of the Sugar Cane Growers Council takes pleasure in presenting its 2017 Report on Activities.
3.2 WEATHER This year was no different than previous years as the entire cane belt experienced sporadic weather patterns.

Intense rainfalls and flash flooding was experienced in the early months of 2017.

Then followed the meteorological drought whereby many cane growing areas received very low rainfall for prolonged duration.

The adverse weather conditions had a very devastating effect on the season's crop, affecting young plant crops and it also prevented growers from planting new crop for 2018 season.
Despite doing substantial investments for crop development, the sugar industry is still battling to mitigate adverse weather challenges in the bid to meet the national cane production objective and to maintain sustainability.

The following is the rainfall record from January 2017 to December 2017.
TABLE 3.2 MONTHLY RAINFALL (mm) 2017 LAUTOKA RARAWAI LABASA PENANG MONTH January RAINFALL (MM) 102.3 RAINFALL (MM) 392.8 RAINFALL (MM) 320.6 RAINFALL (MM) 170.9 February 760.4 March 440.3 April May June July August 31.3 80.2 35.0 5.0 17.3 September 14.0 October 18.3 November 110.5 December Total 1671.4 2170.2 2481.5 1799.1 12 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Source: SRIF 3.3 2017 CROP The crop forecast for 2017 season was 2.14 million tonnes, as the industry anticipated to harvest significantly higher crop compared to 2016 season.
However the below average rainfall in the cane growing region and the prolonged dry spell adversely affected the crop development.

The actual crop harvested for the season was only 1.63 million tonnes which was 24% lower than the 2017 season initial crop forecast.

While the overall crop was 0.244 million tonnes higher than 2016 season crop, the crop yield remained very low.

The total area under cane was about 38,000 hectares and the average yield was 43 tonnes per hectare.
TABLE 3.3: CROP FORECAST AGAINST ACTUALS Mill Lautoka Rarawai Labasa Penang All Mill 2017 Season (Forecast) 527,000 600,000 830,000 185,000 2,142,000 2017 Season (Actual) 429,551 407,860 675,730 118,231 1,631,372 3.4 STANDOVER CROP The total stand-over crop for 2017 season was approximately 13,740 tonnes.

This was mainly due to non availability of cutters, absentee growers or lack of interest and heavy rainfall during the last two weeks of the season.
Table 3.4 CRUSHED AND STAND-OVER CROP Mill Lautoka Rarawai Labasa Penang All Mill Crushed 429,551 407,860 675,730 118,231 1,631,372 Stand Over 3,630 0 10,000 140 13,740 Total Crop 433,181 407,860 685,730 118,371 1,645,142 13 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Table 3.5 CANE PRODUCTION 2010 - 2017 2010 2011 2012 2013 2014 2015 2016 2017 216,986 281,071 209,240 177,396 229,365 230,457 148,002 193,166 District/ Mill Lautoka Nadi 229,730 262,212 213,783 169,638 247,193 206,644 156,936 169,436 Sigatoka 80,750 100,258 67,439 58,619 77,655 83,964 67,342 66,949 Lautoka Mill Total Rarawai 527,466 643,521 490,462 405,652 554,213 521,065 372,280 429,551 378,061 484,243 325,115 360,996 434,458 384,458 217,292 312,979 Tavua 142,427 189,199 140,205 137,830 118,556 106,334 51,578 94,881 Rarawai Mill Total Labasa 520,488 673,442 465,320 498,826 553,014 490,792 268,870 407,860 417,832 425,284 313,973 429,243 418,106 515,760 502,969 527,503 Seaqaqa 136,742 145,187 99,310 116,911 126,242 146,840 150,384 148,227 Labasa Mill Total Penang Mill Total 554,574 570,471 413,283 546,154 544,348 662,600 653,353 675,730 175,486 208,307 177,832 159,720 180,571 170,130 91,806 118,231 GRAND TOTAL 1,778,014 2,095,741 1,546,897 1,610,353 1,832,146 1,844,587 1,386,309 1,631,372 14 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 COUNCIL MEETING The Council had regular meetings during the year to deliberate on policy issues for SCGC and issues pertaining the Sugar Industry such as cane planting, harvesting and transport, milling operations, cane quality and sugar marketing.
Council also deliberates on challenges and concerned raised by the growers and tries to find gracious resolution to develop sustainable sugar industry.
Standing L-R: J Cagimaicama, P Chandra, S Chetty, S Chaudhary, N Kishore, P Singh Sitting L-R: J Khelawan, V Gucake, J Vocea, P Kumar 22 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.0 CRUSHING SEASON- 2017 COMMENCEMENT AND TERMINATION DATES & SEASON LENGTH – 2017 The 2017 crushing season started well with all mills commencing crush in the first week of June.
The overall performances of the mills were better compared to 2016 season; however, Viti Levu mills had experienced some mechanical problems while Labasa mill encountered major problems to the cane shredder and number two mill.

A significant improvement in cane supply was also noted with the introduction of 43 mechanical harvesters.

Approximately 19% of the total crop was harvested using the machines.
With growers still facing difficulty in engaging cutters, consistency in cane supply still remains a major concern to the industry.

With permanent closure of Penang mill in 2016, growers have been asked to transfer the cane to Rarawai Mill with no addition cost to them.

Penang mill area cane transfer cost is fully funded by the government.
In 2017 season with the cooperation of lorry transport operators and the industry stakeholders, 100% of Penang mill area crop was successfully transferred to either Rarawai or Lautoka mill for crushing.

The mills terminated crush between October 2017 and November 2017 after finishing all harvestable crop.
The season length for each mill was as follows:  Lautoka mill  Rarawai Mill  Labasa Mill - - - 19 weeks 21 weeks 25 weeks 15 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Table 4.1 Sugar make and the TCTS Sugar (Tonnes) T.C.T.S Lautoka Rarawai Labasa Average 54,173 55,595 70,604 180,372 8.4 9.0 9.6 9.0 4.2 BURNT CANE There has been a significant decrease in the level of cane burning.

Labasa mill recorded the lowest percentage of burnt cane at 31% and Lautoka recorded the highest at 50%.
Penang and Rarawai recorded 34% and 42 % respectively.

Council and Corporation staff carried out active anti- burning campaigns in the bid to produce better quality sugar for our markets.

However, more awareness needs to be carried out highlighting the benefits and cost savings to the miller and the growers.
BURNT CANE PERCENTAGE FOR LAST 15 YEARS 70% 60% 50% 40% 30% 20% 10% 0% % Burnt Cane Year 16 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.3 HISTORY OF CANE PRODUCTION 4.4 GROWER EDUCATION MEETINGS In 2017, Council organized number of Grower Education and Consultation Meetings in various sectors to educate growers on cane development, government initiatives, harvesting and transportation together with various other issues affecting the industry.
In most of the meetings, other industry stakeholders were also invited to address any concerns raised by the growers and to create awareness on new developments affecting the sugar industry.

4.5 CANE ACCESS ROADS A total of 2,840 cane access roads with a total length of 3,320km across the entire cane belt was maintained in 2017 season to assist growers to transport their produce to the sugar mills.
The project cost was approximately $3m and funds were derived from the government 2016/2017 budget for repair and maintenance of cane access roads.

The administration of the grant was done by the Ministry of Sugar Industry, while SCGC and FSC provided the support in the implementation and monitoring of the project.
17 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.6 LEGAL SERVICES Council's legal department was established in 2003 and it has continued to provide a range of legal services to the growers at affordable cost.

The Management has continued to operate the legal services on user pay concept to avoid any additional burden on all growers.
During the year some 1059 legal services were provided to the cane growers throughout the country and the demand for this service is increasing as more growers benefit from the comparatively cheaper services.

Legal services listed below are provided with only disbursement cost.
PROBATES OTHER CONVENYANCE MATTERS LAST WILL & TESTAMENT RECORD OF DEATH POWER OF ATTORNEY INSTRUMENT OF TENANCY TRANSMISSION BY DEATH LETTERS OF ADMINISTRATION TRANSFER MORTGAGE, CROP LIEN SALES & PURCHASES AGREEMENT DEED- Family, Renounciation 18 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 4.7 OTHER GROWERS SERVICES Various types of Administrative services are being provided as illustrated in the table 4.7.

These services are provided promptly and free of charge to all registered growers.
Growers Services Table 4.7 Activity Report January to December 2017 Ba Total Sigatoka Total RakiRaki Total Lautoka Total Tavua Total Nadi Total Labasa Seaqaqa Total Total Gang Consultaions Meeting Weedicide Sales/Distribution IncomeTax Return Substitute/Cutters Agreement MOGA Increase Harvesting Rates Lorry Wheel Tax Declaration CPG Verification Cane Payment Cane Access Road Knife Sale/Distribution Individual Harvesting Additional Ticket Book VAT returns COR amendment Application New Registration Substitute Dispute Burnt Cane Report Legal Services Transfer of Registration Gang Disputes COR replacement Gang Matters Land Rent Appeal/Renew Land rent object/Trnsfer Crop Damage Report Gang Rationalization Drainage Report Split Registration Harvesting Bond General Services/Enquires Total Total SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Corporate Governance 20 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 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) Rarawai and Penang Cane Producers’ Association - Mr. Jai Ram Khelawan - Mr Josefa Cagimaicama (ii) Labasa Cane Producers’ Association - Mr. Pradip Kumar - Mr. Prakash Chandra (iii) 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 21 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 COUNCIL MEETING The Council had regular meetings during the year to deliberate on policy issues for SCGC and issues pertaining the Sugar Industry such as cane planting, harvesting and transport, milling operations, cane quality and sugar marketing.
Council also deliberates on challenges and concerned raised by the growers and tries to find gracious resolution to develop sustainable sugar industry.

Standing L-R: J Cagimaicama, P Chandra, S Chetty, S Chaudhary, N Kishore, P Singh Sitting L-R: J Khelawan, V Gucake, J Vocea, P Kumar 22 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 COUNCIL MEMBERS COUNCIL MEMBERS Cr.

ViliameGucake Cr.

ViliameGucake Chairman Chairman Ministry of Sugar Ministry of Sugar Cr.

JovesaVocea Cr.
JovesaVocea Cr.

JovesaVocea Commissioner Commissioner Northern Division Northern Division Cr.

ManasaTagicakibau Cr.

ManasaTagicakibau Commissioner Commissioner Western Division Western Division Cr.

Josefa Cagimaicama Cr.

Josefa Cagimaicama Rarawai Penang Cane Rarawai Penang Cane Producers Associaon Producers Associaon Cr.

Prakash Chandra Cr.

Prakash Chandra Labasa Cane Producers Labasa Cane Producers Associaon Associaon Cr.

Parbindra Singh Cr.
Parbindra Singh Cr.

Parbindra Singh Lautoka Cane Producers Lautoka Cane Producers Associaon Associaon Cr.

Pradip Kumar Cr.

Pradip Kumar Labasa Cane Producers Labasa Cane Producers Associaon Associaon Cr.

Jai Ram Khelawan Cr.

Jai Ram Khelawan Rarawai Penang Cane Rarawai Penang Cane Producers Associaon Producers Associaon Cr.

Nand Kishore Cr.
Nand Kishore Lautoka Cane Producers Lautoka Cane Producers Associaon Associaon Sundresh Che Sundresh Che Chief Execuve cer Chief Execuve cer Sunil Deo Chaudhary Sunil Deo Chaudhary Secretary Secretary 23 23 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 HEAD OFFICE MANAGEMENT & STAFF HEAD OFFICE MANAGEMENT & STAFF HEAD OFFICE MANAGEMENT & STAFF HEAD OFFICE MANAGEMENT & STAFF Sundresh Chey Sundresh Chey Sundresh Chey Sundresh Chey Chief Exve cer Chief Exve cer Chief Exve cer Chief Exve cer Sunil Deo Chaudhary General Manager ons Sunil Deo Chaudhary Sunil Deo Chaudhary Sunil Deo Chaudhary General Manager ons General Manager ons General Manager ons Sheetal S Chey Sheetal S Chey Sheetal S Chey Sheetal S Chey In-House Legal Counsel In-House Legal Counsel In-House Legal Counsel In-House Legal Counsel Shivasna Sivan Shivasna Sivan Shivasna Sivan Exeve Accounts cer Exeve Accounts cer Exeve Accounts cer Shivasna Sivan Exeve Accounts cer Rejieli Marama Rejieli Marama Rejieli Marama Rejieli Marama PA to the CEO PA to the CEO PA to the CEO PA to the CEO Kevin Achari Kevin Achari Kevin Achari Exeve Ocer - HO Exeve Ocer - HO
 Kevin Achari Exeve Ocer - HO Zillah Prakash Zillah Prakash Zillah Prakash Reconist Reconist Reconist Zillah Prakash Reconist 24 24 24 24 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 25 SUGAR CANE GROWERS COUNCIL- ANNUAL REPORT- 2017 Sugar Cane Growers Council Financial Statements For the year ended 31 December 2017 Sugar Cane Growers Council Contents Members' report Independent auditors' 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 2017 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 2017 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 income for the year amounted to $504,784 (2016: total comprehensive loss $34,061).

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 To the Honourable Josaia Voreqe Bainimarama Minister for Sugar Industry PO Box 2100 Government Buildings Suva Independent Auditors’ Report Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Sugar Cane Growers Council (“the Council”), which comprise the statement of financial position as at 31 December 2017, the statements of comprehensive income and accumulated funds and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information as set out in notes 1 to 20.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Council as at 31 December 2017, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs).

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Council in accordance with International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) and the ethical requirements that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Council or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Council’s financial reporting process.
KPMG, a Fiji partnership, is part of the KPMG International network.

KPMG International Cooperative ("KPMG International") is a Swiss entity.
Document classification: KPMG Confidential 3 Independent Auditors’ Report (continued) Report on the Audit of the Financial Statements (continued) Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISAs) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Council’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Council’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.

However, future events or conditions may cause the Council to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
3 October, 2018 Nadi, Fiji KPMG Chartered Accountants KPMG, a Fiji partnership, is part of the KPMG International network.

KPMG International Cooperative ("KPMG International") is a Swiss entity.
Document classification: KPMG Confidential 4 Sugar Cane Growers Council Statement of comprehensive income and accumulated funds For the year ended 31 December 2017 Sale of weedicide Cost of Sales - weedicide Gross profit Other income Administrative expenses Other operating expenses Finance income Note 2017 $ 2016 $ 2,086,823 1,948,076 (2,066,681) (1,835,447) 20,142 112,629 1,409,909 939,824 (514,448) (540,526) (430,610) (562,506) 484,993 (50,579) 19,791 16,518 4 5 6 8 Surplus / (deficit) before income tax 504,784 (34,061) Income tax expense 3(g) - - Surplus / (deficit) for the year 504,784 (34,061) Other comprehensive income - - Total comprehensive income / (loss) for the year 504,784 (34,061) Accumulated funds at the beginning of the year 3,107,638 3,141,699 Accumulated funds at the end of the year 3,612,422 3,107,638 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 2017 Note 2017 $ 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 Net cash from operating activities Investing activities Interest received Acquisition of property, plant and equipment Proceeds from term deposits Proceeds from disposal of property, plant and equipment 8 9/17 12 Cash from investing activities 3,725 1,290,140 891,898 368,807 (1,762,815) 6,004 1,836,220 600,000 332,941 (2,763,562) 791,755 11,603 19,791 (451,515) 100,000 185,129 (146,595) 16,518 (11,797) - - 4,721 Net increase in cash and cash equivalents 645,160 16,324 Cash and cash equivalents at 1 January 747,941 731,617 Cash and cash equivalents at 31 December Material non-cash investing activity 11 17 1,393,101 747,941 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 2017 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 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 2017 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 2017 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 2017 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.
(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.

(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.
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 2017 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 2017 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 Fiji Sugar Corporation is deducted from the growers' share of proceeds of sale of sugar, molasses and other by-products.

Effective 1 January 2016, the growers levy was replaced by the government grant to meet the administrative and operational expenses of the Council.

(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 2017 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.

4.
4.

Other income Dividend income - Unit Trust of Fiji Government grant Gain on investments carried at fair value (Note 10) Gain on sale of property, plant and equipment Legal income Knife sales Directors fees and hall hire Share of profit from Sugar House Rental income 5.
Administrative expense Bank charges Meeting costs Personnel expenses (refer note 7) 2017 $ 67,264 841,898 73,498 105,441 34,529 103,568 113,114 - 70,597 1,409,909 2016 $ 17,592 550,459 36,832 2,000 43,638 20,454 62,932 140,000 65,917 939,824 1,221 10,735 502,492 514,448 1,392 18,911 520,223 540,526 14 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 6.
Other operating expenses 2017 $ 2016 $ 2,085 7,525 640 2,092 681 10,032 80,162 500 - 21,681 4,311 5,450 1,509 19,469 3,216 21,261 12,396 27,928 9,245 3,058 12,200 85,137 37,385 9,993 4,307 - 17,736 3,697 21,184 3,278 2,452 430,610 2,818 6,300 8,509 - 714 9,160 49,358 100 199,568 23,911 5,850 10,900 1,460 22,896 2,789 37,977 13,320 42,817 4,636 3,330 5,725 17,497 31,158 24,051 3,862 1,276 3,808 3,260 24,539 338 579 562,506 Advertising Auditor's remuneration - audit services Auditor's remuneration - other services Bad debts City rates Cleaning Depreciation Donations Doubtful debts Electricity Fringe benefit tax Growers accountant's fees Hospitality Insurance Information technology Legal department expenses Medical insurance 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 Uniform Water rates 15 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 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 2017 $ 2016 $ 41,384 35,586 116,378 15,603 4,644 288,897 502,492 57,507 36,316 121,645 14,270 7,027 283,458 520,223 19,791 16,518 16 $ l a t o T 7 6 0 , 5 9 1 , 2 ) 0 0 0 , 4 ( 7 9 7 , 3 1 4 6 8 , 4 0 2 , 2 5 1 5 , 1 5 4 ) 6 7 1 , 8 5 3 ( 3 0 2 , 8 9 2 , 2 9 3 2 , 8 1 1 , 1 ) 0 0 0 , 4 ( 8 5 3 , 9 4 2 6 1 , 0 8 ) 8 8 4 , 8 7 2 ( 1 7 2 , 5 6 9 7 9 5 , 3 6 1 , 1 9 9 3 , 9 4 3 , 1 5 2 3 , 9 6 2 - 9 5 4 - 0 8 7 , 2 9 7 1 , 2 5 3 , 1 8 3 6 , 2 5 3 , 1 5 6 7 , 0 2 0 2 9 , 1 2 3 - 1 4 1 , 0 2 5 8 6 , 2 4 3 - 6 2 8 , 2 6 3 - - 5 2 3 , 9 6 2 5 0 5 , 5 3 4 ) 6 7 9 , 0 5 3 ( 4 5 8 , 3 5 3 - 9 1 2 , 9 1 3 3 5 , 9 3 2 1 8 8 , 8 4 2 5 7 , 8 5 2 2 9 8 , 5 3 ) 1 4 7 , 1 7 2 ( 8 6 2 , 1 4 0 , 1 4 9 4 , 9 0 0 , 1 4 7 5 , 0 1 2 3 9 , 2 3 3 , 1 2 1 8 , 9 8 9 2 6 9 , 7 1 3 8 4 5 , 4 5 4 ) 0 0 0 , 4 ( 8 6 5 , 0 1 6 1 1 , 1 6 4 ) 0 0 2 , 7 ( 9 3 1 , 4 1 5 5 0 , 8 6 4 0 1 4 , 5 3 4 6 4 2 , 9 ) 0 0 0 , 4 ( ) 7 4 7 , 6 ( 8 4 8 , 0 1 6 5 6 , 0 4 4 7 5 7 , 4 4 4 0 6 4 , 0 2 8 9 2 , 3 2 7 1 5 9 7 , 1 2 1 - 9 4 4 2 1 4 , 1 4 4 2 , 2 2 1 - 6 5 6 , 3 2 1 6 7 3 , 1 2 1 - 8 2 1 - 2 9 2 4 0 5 , 1 2 1 6 9 7 , 1 2 1 0 4 7 0 6 8 , $ s g n i d l i u b d n a d n a L $ s e l c i h e v r o t o M $ d n a t n a l P t n e m p i u q e $ s
r o t o M $ d n a t n a l P t n e m p i u q e $ , y t r e p o r P .
9 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 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 304,564 units (2016: 293,988 units) at $1.90 (2016: $1.65).
2017 $ 2016 $ 578,842 485,079 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 12.
Held to maturity investments Current Non-current 485,079 20,265 73,498 578,842 29,850 (29,850) - 1,391,151 1,950 1,393,101 350,000 100,000 450,000 430,655 17,592 36,832 485,079 38,931 (38,931) - 745,911 2,030 747,941 550,000 - 550,000 The interest rate on term deposits ranges from 3.6% to 5.25% per annum (2016: average of 3.375% per annum).

The deposits have an average maturity ranging from 365 days to 720 days (2016: 365 days).
18 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 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 Labasa Cane Producers Association Dividend receivable from South Pacific Fertilizers Limited Receivable from Sugar Cane Growers Fund Other receivables Movement in provision for doubtful debts Balance as at 1 January Created during the year Recoveries Balance as at 31 December 14.
Other payables and accruals Payables and accruals Deferred income VAT payable South Pacific Fertilizers Limited 15.
Employee benefits Balance at 1 January Created during the year Leave utilised during the year Balance at 31 December 2017 $ 700,671 (700,671) - 1,263,191 68,541 47,000 - 7,645 1,386,377 704,395 - (3,724) 700,671 44,641 50,000 14,445 1,398,295 1,507,381 57,507 30,590 (46,713) 41,384 2016 $ 704,935 (704,935) - 537,735 - 1,614 4,525 49,545 593,419 504,827 199,568 - 704,395 53,104 - 49,541 226,963 329,608 48,827 57,507 (48,827) 57,507 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.

19 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 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 (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) 2017 $ (1,398,295) 1,263,191 700,671 47,000 - 2016 $ (226,963) 537,735 704,395 1,614 4,525 (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: Purchase of weedicide from South Pacific Fertilizers Limited Sale of weedicide to The Fiji Sugar Corporation Limited Rental income from Sugar Cane Growers Fund 2017 $ 1,907,568 1,827,029 63,228 2016 $ 1,828,210 1,835,448 62,892 20 Sugar Cane Growers Council Notes to the financial statements For the year ended 31 December 2017 16.
Related parties (continued) (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.
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 2017 $ 20,265 - 2016 $ 17,592 (2,000) 18.

Capital commitments Capital commitments as at 31 December 2017 amounted to $nil (2016: $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 2017 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 Directors fees and hall hire 2017 $ 2,086,823 (2,066,681) 20,142 2016 $ 1,948,076 (1,835,447) 112,629 - 841,898 - 67,264 73,498 105,441 19,791 70,597 34,529 103,568 113,114 550,459 140,000 17,592 36,832 2,000 16,518 65,917 43,638 20,454 62,932 Total income 1,449,842 1,068,971 Expenditure Advertising Auditor's remuneration - audit services Auditor's remuneration - other services Bad debts Bank charges City rates Cleaning Depreciation Donations Doubtful debts Electricity Fiji National Provident Fund contributions Fiji National University Levy Fringe benefit tax Uniform Growers accountant's fees Hospitality Insurance 2,085 7,525 640 2,092 1,221 681 10,032 80,162 500 - 21,681 51,189 4,644 4,311 3,278 5,450 1,509 19,469 2,818 6,300 8,509 - 1,392 714 9,160 49,358 100 199,568 23,911 50,586 7,027 5,850 338 10,900 1,460 22,896 Expenses balance carried forward 216,469 400,887 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 2017 Expenses balance brought forward 216,469 400,887 2017 $ 2016 $ Information technology Legal department expenses Meeting costs - other 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 Total expenditure Operating surplus / (deficit) 3,216 21,261 10,735 12,396 27,928 9,245 3,058 12,200 85,137 37,385 9,993 4,307 - 17,736 3,697 21,184 446,659 2,452 2,789 37,977 18,911 13,320 42,817 4,636 3,330 5,725 17,497 31,158 24,051 3,862 1,276 3,808 3,260 24,539 462,610 579 945,058 1,103,032 504,784 (34,061) The above statement of operations is to be read in conjunction with the disclaimer report set out on page 22.
24 SUGAR CANE GROWERS COUNCIL -SERVING THE CANE GROWERS OF FIJI We’re very approachable and would love to speak to you.

Feel free to call, send us an email.
HEADOFFICE 3rd floor Cane Growers Building 75 Drasa Avenue, P. O Box 5162, Lautoka Sundresh Kumar Chetty Chief Executive Officer Tel/Fax:6650466 Mob: 9928857 Sunil Deo Chaudhary General Manager Operations Mob: 9997275 Sheetal Swastika Chetty In-House Legal Counsel Shivasna Sivan Executive Accounts Officer Reijeli Susi Marama Personal Assistant to CEO Kevin Kunal Achari Executive Officer- HO Zillah Prakash Tel:6650466/6650395 Fax: 6650624 Mob: 9928859 LAUTOKA Ground floor Cane Growers Building, 75 Drasa Avenue, P O Box 3696, Lautoka Sashi Kant Chandra Senior Executive Officer Tel/Fax: 6663549 Mob: 9928832 Mohammed Imran Buksh Executive Officer Ganga Ashwin Reddy Customer Care Officer Tel/Fax: 6663549 Mob: 9066594 NADI Nadi Town Council Building, P O Box 1503, Nadi Shaneel Datt Executive Officer Praveet Singh Customer Care Officer Tel/Fax: 6700499 Mob: 9047605 SIGATOKA ArunaWati Raju Building, P O Box 450, Sigatoka Sunit Kumar Executive Officer Farisha Begum Customer Care Officer Tel/Fax: 600879 Mob: 9066596 BA Vinod Patel & Co. Building, P O Box 1694, Ba Shailendra Prakash Senior Executive Officer Tel/Fax: 6680052 Mob: 9928875 Arveen Kumar Executive Officer Keshmi Sharma Customer Care Officer Tel/Fax: 6674744 Mob: 9066592 TAVUA Tavua College Building, P O Box 620, Tavua Abdul Jifraan Executive Officer Shivagni Sima Chand Customer Care Officer Tel/Fax: 6680052 Mob: 9066568 RAKIRAKI Global Cargo Traders Building, P O Box 262, RakiRaki Durga Chand Executive Officer Iliseva Tilatila Customer Care Officer Tel/Fax: 6694533 Mob: 9066595 LABASA Niranjan Building, Nasikula Road, Labasa P O Box 1429, Labasa Rajnesh Ram Senior Executive Officer Tel/Fax: 8811595 Mob: 9928893 Anish Narayan Executive Officer Zureen Hussain Customer Care Officer Tel/Fax: 8811595 Mob: 9066585 SEAQAQA Natua, Babauwalu Rd, Seaqaqa P O Box 61, Seaqaqa Karam Deo Chand Executive Officer Rehana Bi Customer Care Officer Tel/Fax: 8860084 Mob: 9066591