‘Uncertainty’ surrounds corporation

THE Fiji Sugar Corporation will not be able to operate without the continued support of Government, according to auditors Ernst & Young.

The auditors prepared the 2019 FSC annual report on the “assumption that the corporation will continue to receive ongoing support from the Government”, stated auditors Ernst & Young.

In 2017, Government increased its guarantee of $120 million to the miller to $322m.

The auditors also outlined FSC’s debt status.

“The corporation’s current liabilities exceeded its current assets by $164.8 million.

“The corporation also has debt repayment commitments amounting to $134.6m during the financial year ending 31 May, 2020.”

The auditors said Government’s support towards FSC in the “foreseeable future” would enable the corporation to continue to operate.

“The extent to which the existing Government guarantee and potential further support are required is dependent on, amongst other things, the future sugar price, the quality and quantity of cane supply.”

However, the auditors also said these were “uncertain factors”.

“A material uncertainty exists that may cast significant doubt on the corporation’s ability to continue as a going concern.”

... uncertainty exists that may cast significant doubt on the corporation’s ability to continue as a going concern. – Ernst & Young