FSC records $40.1M loss

The Fiji Sugar Corporation has recorded an operating loss of 40.1 million dollars before income tax for the year ended 31st May 2009.

In the 2009 FSC Annual Report, it is stated that the loss for the year after income tax benefit of 3.3 million dollars is 36.8 million dollars.

FSC Chief Executive, Deo Saran said the corporation incurred a trading loss of 5.9 million dollars compared to a trading loss of 22.8 million dollars in the previous year.

However Saran said after taking into account unrealized exchange loss of 24.4 million dollars in relation to the Exim Bank of India loan due to the devaluation of the Fiji dollar, flood damages of 6.1 million, loss associated with the divestment from South Pacific Fertilizers Limited of 2.4 million and impairment to fixed assets arising from mill upgrade program of 1.3 million dollars, the operating loss before income tax increased to 40.1 million dollars.  

Saran said FSC has a long term loan of 50.4 million US dollars established as line of credit with the Exim Bank of India.

It is through this line of credit the Corporation has been purchasing all of its plant and machinery in relation to the Mill Upgrade Program.

It has been revealed in the 2009 FSC Annual Report that the Corporation has drawn down 39.1 million US dollars as at 31st May 2009 against this Exim Bank of India loan facility. Saran said this is exposed to foreign exchange fluctuations.

With the devaluation of the Fiji dollar in April this year, FSC has incurred an unrealized foreign exchange loss of 24.4 million dollars for the year and as required under the relevant Accounting Standards, this has been charged to the current year's profit and loss account.

THe FSC AGM kicks off in Lautoka at 3 o'clock this afternoon.