Fiji Coconut Millers Ltd is unable to generate sufficient cash to meet its operating expenditure.
This, according to the Auditor-General’s 2019-2020 Audit Report on Public Enterprises and Other Entities that was tabled in Parliament last week.
The audit of the company in 2019 showed the company had “cash flow inefficiency”.
“As at 31 December 2019, the company had a bank overdraft limit of $125,000 with a commercial bank,” the report said.
“We noted that the company had exceeded its bank overdraft limit on various occasions during the year.
“The findings indicate that the company is unable to generate sufficient cash to meet its operating expenditure.”
The company informed the OAG their cash flow was affected by the price of crude coconut oil in the world market had hit a low during the financial year 2019.
“Furthermore, the company informed us that delays in getting refunds from the Copra Price Stabilisation Fund also contributed towards cash flow constrains of the company.
“The company further agreed to employ proper cash management system to meet operational costs through the operating cash flow.”
