The Fiji Sugar Corporation’s board of directors believe that with government support, the corporation will be able to continue operating for at least 12 months from May 31, 2023.
According to the FSC’s 2023 annual report which was released last week at its AGM, the corporation has been incurring significant losses in recent years.
“During the year ended 31 May, 2023, the corporation incurred a loss from operations of $5 million (2022: $30.1 million) and net loss before income tax of $23 million (2022: $44.3million),” the annual report said.
“As at 31 May 2023, total liabilities of the corporation exceeded total assets resulting in net liability of $400 million (2022: $377m). The current liabilities exceed the current assets by $175.1 million.
“The corporation has debt repayment commitments amounting to $147.2 million during the financial year ending 31 May 2023. Furthermore, the corporation requires further funding to meet its working capital requirements, capital expenditure and fund the operating losses.”
The Government approved a loan guarantee of $75m in Parliament on July 28 last year.
“The directors believe that with the support of the Government, the corporation will be able to continue in operation for at least 12 months from the date of this statement and the classification and carrying amounts of assets and liabilities as stated in these accounts are appropriate.”
