Fu­ture Forests In­curs $5.3m Loss

SAYS TROP­I­CAL CY­CLONE WIN­STON HAS HAD SIG­NIF­I­CANT IM­PACT ON THE COM­PANY’S OP­ER­A­TIONS AND AS­SETS

Fiji Sun - - Weather / Tv, Movie Guide - Feed­back: rach­nal@fi­jisun.com.fj RACHNA LAL

The losses in­curred by Fu­ture Forests (Fiji) Lim­ited has widened sig­nif­i­cantly for its fi­nan­cial year ended June 30, 2016 mainly due to the im­pact of Trop­i­cal Cy­clone Win­ston.

The com­pany posted a net loss of $5.33 mil­lion com­pared to $383,207 for the past year.

In­cluded in the net loss for 2016 was a write­down of plan­ta­tions of $4.66 mil­lion against a gain in fair value of plan­ta­tion of $148,115 in 2015. Its rev­enue also dropped to $321,194 com­pared to $450,645 the pre­vi­ous year.

Fu­ture Forests is Fiji’s first com­mer­cial hard­wood for­est plan­ta­tion com­pany spe­cial­is­ing in the grow­ing of teak trees (Tec­tona gran­dis) for tim­ber pro­duc­tion and ex­ports.

The sale of teak seedlings is the other core ac­tiv­ity of the com­pany.

The com­pany, in its fi­nan­cial state­ment dis­clo­sure said Trop­i­cal Cy­clone Win­ston has had sig­nif­i­cant im­pact on the com­pany’s op­er­a­tions and as­sets. Given the re­sults, the Direc­tors rec­om­mended that no amounts be paid as div­i­dend in re­spect of the year ended June 30, 2016. The Direc­tors also rec­om­mended that no amounts be trans­ferred to re­serves for the same year ended.

In­de­pen­dent au­di­tor re­port

Mean­while, com­pany au­di­tors, Price­wa­ter­house­Coop­ers (PwC) drew at­ten­tion to the com­pany hav­ing neg­a­tive cash flows from op­er­at­ing ac­tiv­i­ties of $158,945, and mak­ing an op­er­at­ing loss of $5,334,440 for the year ended June 30, 2016.

It also drew at­ten­tion that as at year end, Fu­ture Forests’ cur­rent li­a­bil­i­ties ex­ceeded its cur­rent as­sets by $1,087,596 and the com­pany has net li­a­bil­i­ties of $1,681,072 as at that date.

PwC stated: “This, along with other mat­ters, in­di­cate the ex­is­tence of a ma­te­rial un­cer­tainty that may cast sig­nif­i­cant doubt about the com­pany’s abil­ity to con­tinue as a go­ing con­cern.”

How­ever, it said PwC’s opin­ion is not qual­i­fied in re­spect of this mat­ter.

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