annual report for the year ended 30 june 2018
TRANSCRIPT
Since 1950
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LTD
ANNUAL REPORT
FOR THE YEAR
ENDED
30 JUNE 2018
MCAF LTD - ANNUAL REPORT 2018
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THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LTD
Registered as a secondary Co-operative Society in August 1950, The Mauritius Co-operative
Agricultural Federation Ltd (MCAF Ltd) was founded to act as the spokesman of small sugar
cane planters who were facing a lot of difficulties, which they could not solve or discuss neither
individually nor at a level of primary societies, that is, Cooperative Credit Societies (CCS).
The Federation currently regroups 155 Co-operative Credit Societies with a total membership
of around 7,000 small sugar cane planters, who are cultivating approximately 7,250 hectares of
land and producing a total of 36,146 Tons of sugar for the crop 2017.
The MCAF Ltd has, in its quest to provide a better service to the planting community,
established a network of thirteen sales points across the island to provide a wide range of agri-
inputs to cater for the needs of planters of all regions.
OUR VISION
Effectively assisting affiliated co-operative societies and cane planters in responding to the
challenges facing the sugar sector and pursuing each and every opportunity that may be
beneficial to member planters.
OUR MISSION
To provide quality agro-input at a reasonable price to member planters around the island and
ensure adherence to good agricultural practices while promoting the use of eco-friendly
fertilisers and pesticides.
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THE CHAIRMAN’S
REPORT
Mr. Nundlall Basant Roi,
PDSM
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THE CHAIRMAN’S REPORT
Dear Fellow co-operators,
It is a great privilege for me to present the 58th Annual Report of The Mauritius Co-operative
Agricultural Federation Ltd (MCAF Ltd) for the financial year ended 30 June 2018 in my capacity
as Chairman.
Overview
The turnover of the society for the year under review is Rs 177,695,113 compared to last year’s
performance which was Rs 179, 551,672. The net profit after tax amounts to Rs 2,285,507 which
is less than last year’s profit which amounted to Rs 3,199,921. This fall is mainly attributed to
the overall drop in turnover of sales of fertilizers by almost Rs 6M. This drop can be explained
by the fact that many planters have abandoned their sugarcane fields due to the fall in revenue
and shortage of labour.
The year 2018, has also been earmarked by several events. Amongst which the Federation has
supplied 400T of fertilizers to vegetable planters whose fields were affected by the cyclone
Berguitta under the scheme implemented by FAREI. The Federation has also signed an MOU
with the Ministry of Business, Enterprise and Cooperatives for the allocation of 60 perches of
land at La Marie to implement a vegetable seedling production project. The year 2018 has also
been earmarked by the Supply of Fertilizers to Sugarcane Planters Cultivating < 100 ha – Crop
2019 through the MCIA. The main purpose of this scheme is to encourage planters to stay in
the cane business.
Concerning the construction of the new Head Office and warehouse of the MCAF Ltd, the
Government has compensated the Federation with the amount of Rs 3.5 M for the building and
has also reimbursed one year rent. As promised, the Government is also working on the
allocation of a portion of land in the region of Jin Fei, Riche Terre for the construction of the
Head Office and warehouse of the Federation.
Review of Activities
1. Cane to Diesel Project
In August 2018, An MOU has been signed between the MCAF Ltd with QUAMM AG, a
Swiss Company. The latter, has a patented SWISS technology and has now completed
the development of the third generation of the «Catalytic Depolymerization». This
technology converts all hydrocarbons in cane biomass into Diesel. The solution is so
efficient that one ton of cane produces about 350 liters of Diesel. It is worth to note this
project does not and will not disturb the current ecosystem of sugar production. The
project also encourage cane farmers for recovery of abandoned plantation land.
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2. Moryza Project
An MOU will be signed between the Federation and MORYZA Agro Estates Limited
Company, represented by Mr. R.Jatooa, Executive Director and the MCAF Ltd will be a
partner in the project. The main objective of the project is the Sustainable Development
of Small Planters’ Agricultural Land for Production of Rice and other Crops. The project aims at
cultivating 5,000 ha of lands by 2023 for the production of Rice, as primary crop, through small
planters’ co-operatives as investment partner. And at the same time, contribute significantly to
increase the local food self-sufficiency above 50 % by year 2025.
3. Seedling Production Unit
In view of diversifying the business activities of the MCAF Ltd, the Federation has a particular
focus on vegetable planters. The MCAF Ltd will implement very soon, the production of high
quality organic vegetables seedlings production at La Marie. The total cost of the project is Rs
2M. An MOU has been signed between the Federation and the Ministry of Business, Enterprise
and Cooperatives on 13 November 2018 for the allocation of 60 perches of land at Maison des
Eleveurs, La Marie to implement this project.
4. Visit of Fiji Delegation.
In December 2017, the Federation has received the visit of a delegation from Sugar Cane
cooperatives from Fiji. Several pertinent information was shared amongst which was
the rise in cost of production of sugarcane planters and the scarcity of labour. The Fijian
also stated that they are also facing the same problems as planters in Mauritius,
however, to our astonishment, they pointed out that the problem of scarcity of labour
is alleviated by mechanisation and as well as using prisoners for harvest of sugarcane.
5. Visit of Indian Expert, Shri A.S Patil, Soil Chemist in Mauritius
The Federation has the opportunity to welcome Shri, A.S Patil, Soil Chemist through the
Ministry of Business, Enterprise and Cooperatives in August 2017. The main objective of
his visit is to establish a protocol worked by his team in India to increase sugar cane yield
of small planters. He claimed by using this protocol, yield of sugarcane can goes up to
144 T per Acre. A trial will be effected soon in Mauritius by using the same protocol with
the collaboration of the MSIRI.
6. Visit of Mr Abdullah M. Alshehhi, Executive Director, AgriSoil Organic Fertilizer
Trading, Dubai.
In July 2018, we have got the visit of Mr Mr Abdullah M. Alshehhi, Executive Director,
AgriSoil Organic Fertilizer Trading, Dubai. The objective of his visit is to establish a new
business venture with Agrisoil by being his official distributor of Organic Silicon based
fertilizer in Mauritius. Samples have already been sent and Trials will begin this year
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with the collaboration of the MSIRI and FAREI for Sugarcane and vegetables
respectively. We have also started working with the company in terms of supplying high
quality peat moss with silica mix on the market from Evergreen Company of North
Ireland which is reputed to be the best Irish peat for seedling production.
7. Visit of Mr K.P Tripathi, Sales and Marketing Manager, Tirth Agro Pvt Ltd -India.
We got the visit of Mr K.P Tripathi, Sales and Marketing Manager at Tirth Agro Pvt Ltd
in May 2018. The company manufactures various farm equipment amongst which is the
Cane Harvester under the brand of SHAKTIMAN which is adapted to the fields of small
sugarcane planters. Two working sessions and field visits were effected with him to see
the feasibility of purchasing a sugarcane harvester so as to offer a harvesting service to
planters to alleviate the scarcity and high cost of labour to work in sugarcane fields.
8. National Award for Cooperatives -2018
The Ministry of Business, Enterprise and Cooperatives has organised a National Award
for Cooperatives in September 2018. The Award aimed at gearing cooperatives to
business excellence while adhering to cooperative principles and values. It also aimed
at continual improvement for the emergence of sustainable cooperative organisations.
The Federation had participated in the Award and the MCAF Ltd has won the award
once again for best Federation in its category together with a cash prize of Rs 35,000
during the award ceremony held on 14 November 2018. I seize this opportunity to
congratulate the management and all the staff of the MCAF Ltd for their dedication and
hard work for this achievement.
9. Mission Overseas
a. Visit to Tirth Agro Pvt Ltd –Pune Rajkot (02-08 December 2018)
In December 2018, a delegation of Directors together with the General Manager, Mr
D.Goburdhun and the Marketing Manager, Mr S.Sookna were invited to India (Pune and
Rajkot) by Tirth Agro Pvt Ltd to have field visits where the cane harvester is working, sugar
mills visit and Tirth Agro Pvt Ltd manufacturing plant in Rajkot-Gujarat. Mr R.K Soniah, Director
of the FSC was also invited to form part of the delegation. The main purpose of this visit was to
understand the operation of the harvester in field and how it will adapt to small planters fields
and also to carry out a feasibility study for the purchase of a cane harvester.
b. AFRICAN-ASIAN RURAL DEVELOPMENT ORGANIZATON (AARDO), NEW DELHI -10
Dec 2018
During our visit to India, a delegation comprising, Mr S.Ghurhoo, Treasurer, Mr
S.Gopal, Director, Mr D.Goburdhun, General Manager of the MCAF and myself as
Chairman of the Federation were in Delhi to pay a courtesy visit to Dr. Manoj
Nardeosing, Assistant Secretary General of AARDO on 10 December 2018. We have
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discussed various issues on the cooperative development in Mauritius and also
concerning the Cane Harvester as a solution for small planters. Dr M.Nardeosing
stated that the Indian Technical and Economic Cooperation ITEC can be consulted
to support the purchase of the machine.
c. Courtesy call at the Mauritius High Commission, New Delhi with H.E. Mr. J.
Goburdhun, GOSK, High Commissioner of the Republic of Mauritius to India.
On the same occasion, we made a courtesy call at the Mauritius High Commission,
New Delhi to H.E. Mr. J. Goburdhun, GOSK, High Commissioner of the Republic of
Mauritius to India. We explained our main presence in India and elaborated on the
Cane Harvester Project to the high commissioner. H.E Mr J.Goburdhun stated that
he will give the Federation his full support to realise this project.
d. Signing of MOU between the MCAF and the Indian Farmers Fertiliser Cooperative
Limited (IFFCO) (11 December 2018)
The same delegation as above went to the Indian Farmers Fertiliser Cooperative
Limited (IFFCO) on 11 December 2018 to sign for the renewal of MOU with IFFCO
concerning a bilateral exchange programme which include new business avenues
in terms of Agro-Chemicals as well as training. The signing of the MOU was made
in the presence of Dr.U.S Awasthi, the Managing Director of IFFCO.
Mr. Nundlall Basant Roi, PDSM
Chairman of the MCAF Ltd
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BOARD OF DIRECTORS 2018-2019
NAME DESIGNATION
Mr. Nundlall BASANT ROI, PDSM Chairman
Mr. Satidanan GHURHOO Treasurer
Mr. Ellanah Pathereddy Appannah
Director
Mr. Arun Kumar BHOLAH
Director
Mr. Chabilall KHELAWON Director
Mr. Ravindranath Roopah
Director
Mr. Kamless SEEAM Director
Mr. Satyvanoo GOPAL Director
Mr. Jugdutt RAMPERSAD Director (Suspended as from 31 may 2018)
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AUDIT COMMITTEE 2018-2019
NAME DESIGNATION
Mr. Ellanah Pathereddy Appannah
Chairman
Mr. Kamless SEEAM Member
Mr. Chabilall KHELAWON Member
Mr. Ravindranath Roopah
Member
Mr. Arun Kumar BHOLAH
Member
Mr. Vikash Patansingh Internal Controller
STAFF APPOINTMENT AND DISCIPLINARY SUB-COMMITTEE
(Corporate Governance Committee)
NAME DESIGNATION
Mr. Satyvanoo GOPAL Chairman
Mr. Satidanan GHURHOO Member
Mr. Nundlall BASANT ROI, PDSM Member
Mr. Ellanah Pathereddy Appannah
Member
Mr. Kamless SEEAM Member
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PESTICIDES IMPORTATION & SALES SUB-COMMITTEE
NAME DESIGNATION
Mr. Chabilall KHELAWON Chairman
Mr. Kamless SEEAM Member
Mr Ravindranath Roopah
Member
Mr Arun Kumar BHOLAH
Member
Mr. Satyvanoo GOPAL Member
MARKETING COMMITTEE
NAME DESIGNATION
Mr. Nundlall BASANT ROI, PDSM Chairman
Mr. Ellanah Pathereddy APPANNAH Member
Mr. Satidanan GHURHOO Member
Mr. Dineshsing Goburdhun Member
Marketing Manager Member
Sales Executive Member
Senior Sales Officers Member
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BIO FERT COMPANY LTD
NAME DESIGNATION
Mr. Nundlall BASANT ROI, PDSM Chairman
Mr. Ellanah Pathereddy APPANNAH Director
Mr. Dineshsing Goburdhun Director
EXTERNAL BOARD AND COMMITTEES
Mauritius Chamber of Agriculture Mr. S. Ghurhoo (Bureau)
Mr. A. Bholah
Mr. K. Seeam
Mr. R. Roopah
Mr. C. Khelawon
Irrigation Authority Mr. K. Seeam
Mauritius Sugar Syndicate Mr. S. Sheoraj
FANRPAN Mr. A.K. Ramnarain
Mauritius Cane Industry Authority (MSIRI) Mr. N. Basant Roi
Mauritius Cane Industry Authority (CAD) Mr. S. Ghurhoo
Mauritius Co-operative Alliance Ltd Mr. D. Goburdhun
Mount Planters Fund Mr. E.P. Appannah
Mr. Bolah Beharry
Beau Plan Planters Fund Mr. Arun Bholah
Mr. K. Ellapah
St. Antoine Trust Fund Mr. D. Goburdhun
Sugar Insurance Fund Board Mr. N. Basant Roi, PDSM
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Altromercato Mr. N. Basant Roi, PDSM
FSC Liaision Committee:
Solitude Mr. K. Ramsurrun
L’Unite Mr. S. Ghurhoo
St Pierre Mr. C. Roopah
Rose Belle Mr. C. Khelawon
HEAD OFFICE STAFF
NAME DESIGNATION
Goburdhun Dineshsing General Manager
Sookna Sachin Marketing Manager
Burosee Navin Accountant/Secretary
Arjoon Sandiah (Mrs) Accounts Clerk/Senior Accounts Clerk
Sobnauth Hurrykrishianand IT Support Officer/Supplies Officer
Golam Subita (Mrs) Clerk/WPO/Telephonist
Ramkhelawon Neemwatee (Mrs) Clerk/WPO/Telephonist (as from January
2018)
Seenundun Kamaljeet Senior Attendant
Bundhoo Mitra Attendant/Driver
Jakhun Vishal Driver - Goods Vehicle
Lothay Arvin General Worker
Sanjeev Kumar Mutty General Worker (Contractual)
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SALESPOINT STAFF
SENIOR SALES OFFICERS
Ruggoo Prakash Sales Executive
NAME SALESPOINTS
Mungur Vedanand
SOLITUDE
GOODLANDS
RIVIERE DU REMPART
D’EPINAY
Dhukhi Hurrysurnand
BON ACCUEIL
L’UNITE
ST PIERRE
CAROLINE
Rungasamy Dharmarajen
UNION PARK
ST FELIX
L’ESCALIER
LA MARIE
Sookna Sachin/ Ruggoo Prakash ST MARTIN
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SALES STAFF
SALESPOINT NAME DESIGNATION
Solitude Kaundun Keerun Kumar Sales Officer
Mungur Doorvanand Assistant Sales Officer
Goodlands Baldee Teerathrajsing Sales Officer
Gunesh Shiv Atma Sales Officer
R.du Rempart Nursing Ravindranath Sales Officer
Bon Accueil Sookdeal Soobanand Sales Officer
Ghuroo Yash Akshay Assistant Sales Officer
L'Unité Ramchurn Vishal Assistant Sales Officer
Caroline Narraynen Jaysen
Assistant Sales Officer
St Pierre Bansee Teeran Assistant Sales Officer
Goorjhun Dhanyrao Assistant Sales Officer
Union Park Gunnoo Ramjee Sales Officer
Bhuruth Darasingh Sales Officer
St Felix Gopala Ashvind Assistant Sales Officer
Gowardun Ritish Kumar Assistant Sales Officer
D'Epinay Gangaram Veekash Sales Officer
L'Escalier Boodoo Gowtam Sales Officer
St Martin Lodah Kaviraj Sales Officer
La Marie Dhakoo Yegesh Sales Officer
Hurree Bajeerao Assistant Sales Officer
Biofert Co Ltd Chooramun Ashwinsingh Lab Technician
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REPORT OF THE BOARD OF
DIRECTORS
By Mr Dineshsing Goburdhun
General Manager of MCAF Ltd
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REPORT OF THE BOARD OF DIRECTORS
The Board of Directors has the pleasure in submitting its 58th Annual Report as at 30th June
2018.
MEETINGS
The number of times the Board met from 01 July 2017 to 30 June 2018 are summarised in the
table below.
Committee Number of meetings
Board Meetings 12
Staff Appointment & Disciplinary Committee 5
Pesticides Importation & Sales sub committee 3
Audit Committee 4
Marketing Committee 8
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ATTENDANCE AT BOARD MEETING
Director Total number of
meetings
convened
Total number of
meetings attended
Sheoraj, OSK ( up to 26 February 2018) 8 8
Mr B. Beharee (up to 26 February 2018) 9 9
Mr S. Muniah (up to 26 February 2018) 8 8
Mr E.P Appannah 12 10
Mr S. Ghurhoo 12 11
Mr C. Khelawon 12 12
Mr A. K. Bholah 12 11
Mr R. Roopah 12 12
Mr N. Basant Roi, PDSM 12 11
Mr K.Seeam (as from 26 February 2018) 4 4
Mr J.Rampersad (as from 26 February 2018) 3 3
Mr S.Gopal (as from 26 February 2018) 4 4
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MEMBERSHIP
A total of 155 Co-operative Credit Societies (CCS’s) were affiliated to the MCAF Ltd at the
close of the financial year under review.
THE MOUNT AND BEAU PLAN PLANTERS FUNDS
Since 2013, the management of the Mount and Beau Plan Planters Funds are now under the
charge of the MCAF Ltd. Mr E.P Appannah and Mr A.K Bholah have been nominated as
Chairman of the Mount and Beau Plan Planters Fund respectively. A disbursement committee
comprising of the following members have been set up to monitor the activities of the two
funds:
Mount Planters Fund
Mr E.P Appannah representing MCAF Ltd, Chairman of Mount Planters Fund
Mr M. Monvoisin Registrar, Ministry of Business, Enterprise and
Co-operatives
Mr B.Beharee representing Mount Planters Fund, Member
Mr R.K Soniah representing the MCIA
Mr N de Rosnay representing Terra Milling Company Limited
Beau Plan Planters Fund
Mr A.K Bholah representing MCAF Ltd, Chairman of Beau Plan Planters Fund
Mr R.K Ellapah representing Beau Plan Planters Fund, Member
Mr M. Monvoisin Registrar, Ministry of Business, Enterprise and
Co-operatives
Mr R.K Soniah representing the MCIA
Mr N de Rosnay representing Terra Milling Company Limited
The day to day activities of these funds are carried out by a pool of 5 staff of the MCAF Ltd
including the General Manager who extend their support to the sub-committee. Both funds
cater for the welfare of planters in these factory areas. For road mending, Rs 64,400 and Rs
160,300 has been disbursed for the Mont and Beau Plan Planter’s Fund respectively. On top of
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that, both funds provide subsidy to planters when purchasing sprayers, land preparation and
purchase of fertilizer for new plantations. For the financial year 2017-2018, Rs 19,154 of subsidy
has been allocated to both funds for the purchase of sprayers.
ACCOUNTS
The net profit after tax for the financial year 2017-2018 of the society amounts to Rs 2,285,507
compared to 2016-2017 which was Rs 3,199,921. There was also a decrease in turnover of the
society by Rs 1,856,559 compared to last financial year. This drop is mainly attributed to a fall
in turnover of sales of fertilizers which amounts to Rs 79,069,940 compared to that of 2016-
2017 which amounted to Rs 85,019,974. According to a report prepared by the Ministry of
Business, Enterprise and Cooperative on a survey of abandoned land by Cooperative Societies,
1066 planters have abandoned their land which represent 1,490 ha. This decrease has impacted
largely on the turnover of sales of fertilizers.
Figure 1 Turnover 2018 by Segment
However, the sales of pesticides and seeds have increased by Rs 1,243,432 and Rs 2,850,043
respectively. This is mainly attributed to the increase in product portfolio as well as new
marketing strategies. Figure 2 shows the trend for the last five years in the sales of pesticides
and other Agro-input.
Fertilizers47%
Pesticides & Other Agro-
input46%
Seeds7%
TURNOVER BY CATEGORY TOTAL TURNOVER: Rs 177,695,113.00
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Figure 2 Sales of Pesticides and other Agro-input for the last five years.
The total surplus for the year 2018 amounts to Rs 2,228,507 which is less by Rs 914,414
compared to that of 2017. As mentioned earlier, this is mainly attributed to a drop in sales of
fertilizers resulting from an increase in area of abandoned land by sugarcane planters.
BIOFERT CO. LTD
The Biofert Co. Ltd, a subsidy of MCAF Ltd is a joint venture between the MCAF Ltd and the
Mauritius Chemical and Fertilizer Industry Ltd (MCFI) where the MCAF Ltd holds the majority
of shares. The company is now under the Management of the MCFI which includes operation,
sales and marketing as well as the R&D segment. For the financial year under review, the
company has registered a turnover of Rs 1,255,245 compared to Rs 1,313,247 for the previous
year and has recorded a loss of Rs 48,227. The management team is working on a strategy so
as to give the company a boost in 2019.
MISSIONS OVERSEAS
1. Global Trade Leader’s Club- Spain - 02-03 July 2017
In July 2017, the Chairman of the MCAF, Mr S.Sheoraj, OSK and Mr D.Goburdhun, General
Manager, MCAF Ltd went to Spain, Madrid to receive an International Award for Excellence &
Leadership by the Global Trade Leader’s Club.
61,663,405
65,454,075
73,780,764
81,692,735
82,936,167
2014
2015
2016
2017
2018
Sales of Pesticides and other Agro-input (Rs)
Amount (Rs)
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2. Canton Fair, China – 15-16 October 2017
Mr S.Sookna, Marketing Manager went to Guangzhou, China on 15-16 October 2017 to attend
the 122nd Canton Fair. The purpose of his visit was to explore the China Market in terms of
agricultural products and eventually potential business ventures with suppliers.
3. 19th China International Agrochemical & Crop Protection Exhibition (CAC), Shanghai,
China -07-09 March 2018
A delegation comprising of Messrs, S.Sheoraj, D.Goburdhun and S.Sookna, Chairman, General
Manager and Marketing Manager respectively went to Shanghai, China on 07-09 March 2018
to attend the 19th China International Agrochemical & Crop Protection Exhibition (CAC). The
main objectives of the visit was to meet potential suppliers of agro-chemicals and fertilizers and
to establish possible business ventures. During the visit, the delegation also met Mr Jordan Li,
Commercial Manager of Spring Agrochem, supplier of Ammonium Sulphate fertilizer to the
MCAF Ltd to strengthen business relationship. It was indeed a great experience to see how the
China Market is evolving and also various contact has been established through this exhibition
which has resulted an increase in imported Agro-input.
4. Visit of MCAF Delegation to India - 02-12 December 2018
A delegation of the MCAF comprising of the Chairman, Directors, General Manager and
Marketing Manager went to India for the following missions.
(i) Visit to Tirth Agro Pvt Ltd –Pune Rajkot - 02-08 December 2018
Tirth Agro Pvt Ltd, under the brand of SHAKTIMAN has approached the Federation for the
possibility of purchasing Sugarcane Harvesters so as harvest of sugarcane in planters fields can
be mechanised. Two working sessions were carried out with the Shaktiman Team in May and
August 2018 and in December 2018, Tirth Agro Pvt Ltd has invited a delegation of all MCAF
Directors, the General Manager and the Marketing Manager to visit the company. Mr R.K
Soniah, Director of the FSC was also invited to form part the delegation. The visit included the
followings
1. Field Visits to see the Harvester in full operations in a sugarcane field in Pune.
2. Visit of a Sugar Mill (Pune)
3. Meeting with Shaktiman Team –Regional Office in Pune
4. Field and Factory Visit of Tirth Agro Pvt Ltd and meeting with Management Team –
Rajkot (Gujarat)
According to us, this harvester will adapt to work in the field of small planters, as it is smaller in
size than the actual one purchased by Sugar Estates. In terms of efficiency, economics, it suits
best to our local situation. However, fields should be free from stones so as to avoid damage
to the blade and with time fields operations will be fully mechanized.
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(ii) Visit Of MCAF Delegation To New Delhi (08-Dec 2018 – 12 Dec 2018)
A delegation comprising of Mr N.Basant Roi, Chairman of the MCAF, Mr S.Ghurhoo, Treasurer,
Mr S.Gopal, Director and Mr D.Goburdhun, General Manager MCAF were in Delhi as from 08
Dec 2018 and the followings mission were accomplished.
(a) African-Asian Rural Development Organisation (AARDO), New Delhi -10 Dec 2018
The delegation paid a courtesy visit to Dr. Manoj Nardeosing, Assistant Secretary General of
AARDO on 10 December 2018. The delegation has discussed various issues on the cooperative
development in Mauritius and also concerning the Cane Harvester as a solution for small
planters. Dr M. Nardeosing stated that the Indian Technical and Economic Cooperation ITEC
can be consulted to support the purchase of the machine.
(b) Courtesy call at the Mauritius High Commission, New Delhi, H.E. Mr. J. Goburdhun, GOSK,
High Commissioner of the Republic of Mauritius to India.
The delegation paid a courtesy call to the Mauritius High Commissioner, New Delhi, H.E. Mr. J.
Goburdhun, GOSK. During the visit, the delegation explained their main presence in India and
explained the Cane Harvester Project to the high commissioner who stated that he will give the
Federation his full support to realise this project.
(c) Indian Farmers Fertilizer Cooperatives Ltd (IFFCO -New Delhi) – Signing Of MOU on
Twinning Program – 11 Dec 2018
A delegation comprising of Mr N.Basant Roi, Chairman of the MCAF, Mr S.Ghurhoo, Treasurer,
Mr S.Gopal, Director and Mr D.Goburdhun, General Manager MCAF were in Delhi on 10
December 2018 to sign an MOU with IFFCO concerning a bilateral exchange programme which
include new business avenues in terms of Agro-Chemicals as well as training. On behalf of
IFFCO, the MOU was signed by Mr A.K Singh, Director (CD& Tech), Mr Tarun Bhargava, Deputy
General Manager (CR) and as witness, Mrs Madhavi Vipradas, Senior Manager (CR)
CROP 2017
For the Crop 2017, the total area of harvested sugarcane is 49,974 ha island wide which has
produced 3,713,331 Tons of Sugarcane. The total sugar produced (tel quel) amounted to
355,213 Tons. When compared to last year’s performance, the area harvested was 51,476 ha
and 3,798,448 Tons of sugarcane were harvested producing 386,277 Tons of Sugar which
represents about 8% reduction in sugar produced. The extraction rate for crop 2017 has
attained 9.57 which was relatively low to that of crop 2016 which was 10.18. It was also
observed that the cane yield per hectare, island wide is 74.31 which was superior to that of
Crop 2016 which was 73.79.
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The above is explained by the fact that during the initial cane growth stage, elongation of
stalk was delayed due to an inadequate rainfall during that period. The elongation by January
2017 was 15% below normal. In addition, in the month of February, we have got the visit of
cyclone and as well as long period of heavy rainfall. High rainfall together with below normal
temperature amplitudes and solar radiation during the maturity phase favoured further
stalked growth thereby increase in sucrose accumulation.
As regard to the Co-operative Credit Societies (CCS’s), the extent harvested by CCS planters is
7,217 ha which is represented by 7,037 planters where 36,146 T of sugar was produced. The
table below shows a comparative performance figures for Crop 2016 and Crop 2017 for the
whole Island and CCS planters.
CROP REGION AREA HARVESTED (ha) CANE HARVESTED
(Tons)
SUGAR PRODUCED
(Tons)
CROP 2016 Island of Mauritius
51,476 3,798,448 386,277
CROP 2017 49,974 3,713,331 355,213 CROP 2016
CCS Planters 7,443 494,120 39,393
CROP 2017 7,217 524,258 36,146
PRICE OF SUGAR
For Crop 2017, the ex- Syndicate price per ton of sugar has been fixed at Rs 10,717. In fact, this
price is the lowest ever recorded since the abolition of quota. However, we must be thankful
to the Government, being sensitive to the financial constraints facing our planters have took
two major decisions. The first one, the Sugar Insurance Fund Board has been requested to
provide an assistance of Rs 1,250 per ton of sugar produced and secondly the waiving the
Global Cess payable to Mauritius cane Industry Authority (MCIA) which would be another Rs
429 additional per ton of sugar. In addition, Mauritius sugar Syndicate (MSS) has paid Rs 1,450
per ton of sugar as support to planters.
The above mentioned support brings the total payment of sugar for Crop 2017 to Rs 13,417
per ton of sugar.
Crop Price (Rs/T sugar) Crop 2013 Rs 15,829.86
Crop 2014 Rs 12,693.50
CROP 2015 Rs 13,166.36
CROP 2016 Rs 15,571.50
CROP 2017 Rs 13,417.00
MCAF LTD - ANNUAL REPORT 2018
23
PRICE OF MOLASSES
The final price of Molasses determined by the Control and Arbitration Department (CAD) of
the MCIA for Crop 2017 is Rs 2,390.88 per ton of molasses, equivalent to some MUR 800/- per
ton sugar.
The price of molasses at 86° Brix and the tonnage produced for the past five years together
with the value are given below:
Crop Year CCS Production/
Ton molasse
Price of Molasses
(Rs/Ton)
2013 11,244 1,970.98
2014 13,104 2,316.15
2015 15,834 2,074.58
2016 16,105 2,242.89
2017 13,012* 2,390.88
*final tonnage will be known after CAD publishes the final extraction rates
15,829.86
12,693.50
13,166.36
15,571.50
13,417
Crop 2013 Crop 2014 CROP 2015 CROP 2016 CROP 2017
Price of Sugar /Rs/TPrice of Sugar /Rs/T
MCAF LTD - ANNUAL REPORT 2018
24
CONTRIBUTION OF DISTILLERS/BOTTLERS
For the Crop 2017, the Mauritius Sugar Syndicate has paid a total of Rs 1,152.32 per ton of
molasses for the contribution of distillers and bottlers which is equivalent to Rs 500 per Ton of
sugar. Molasses & Distiller / Bottler Fee (Consolidated) paid to CCSs is Rs.37, 474,560 however
this value is provisional.
PRICE OF BAGASSE
Payment of Bagasse proceeds for Crop 2017 by the syndicate amounted to Rs 164.81 per Ton
of Sugar.
Crop Year Price of Bagasse (Rs/Ton)
2013 119.48
2014 124.17
2015 1,262.29 (Rs 162.29 + Rs 1,100 – Sugarcane Sustainability Fund)
2016 1,249.83 (Rs 149.83 + Rs 1,100 – Sugarcane Sustainability Fund)
2017 1,264.81 (164.81 + Rs 1,100 – Sugarcane Sustainability Fund)
SUGARCANE HARVESTED AND SUGAR PRODUCED BY CCS’s
Crop year Sugar Cane (tons) Sugar Produced (tons)
2013 358,647 30,310
2014 374,873 28,578
2015 491,376 34,773
2016 494,120 39,393
2017 524,2578 36,146
The decrease in sugar cane harvested and eventually sugar in the Crop 2017 is mainly attributed
to the fact that there has been an increase in abandoned land by planters due to a drastic fall
in revenue and a lower extraction rate at 9.57% compared to Crop 2016 which was 10.58% due
to climatic factors.
MCAF LTD - ANNUAL REPORT 2018
25
LAND AREA HARVESTED AND NUMBER OF PLANTERS (CCS)
Crop year Extent harvested (Hectares) Number of planters
2013 5,623 7,961
2014 5,123 7,129
2015 6,847 7,315
2016 7,443 7,299
2017 7,217 7,037
ACKNOWLEDGEMENTS
The Board of directors would like to thank Mr Dineshsing Goburdhun, the General Manager of
the MCAF Ltd, the management team and all the MCAF’s staff for their commitment,
innovations and hard work for the continuous growth of the business despite local and
international market challenges.
By order of the Board of Directors D. Goburdhun General Manager
MCAF LTD - ANNUAL REPORT 2018
26
APPROPRIATION OF SURPLUS FOR THE YEAR 2017/2018
Amount
Rs
Statutory Reserve (10%) 228,551.00
Dividend on shares (20%) 37,200.00
Staff Bonus 805,050.00
Bonus to Planters (10%) 228,551.00
Bonus to Secretaries (5%) 114,275.00
IT Fund 200,000.00
Building Reserve 535,993.00
Corporate Social Responsibility
135,887.00
2,285,507.00
MCAF LTD - ANNUAL REPORT 2018
27
THE MAURITIUS CO-OPERATIVE
AGRICULTURAL FEDERATION LTD
AUDITED FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2018
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2018
ASSETS Notes 2018 2017 2018 2017
Non-current assets Rs. Rs. Rs. Rs.
Property, plant and equipment 5 20,159,430 20,666,200 15,822,164 15,629,854
Intangible assets 6 430,851 777,763 430,851 777,764
Available for sale financial assets 7 1,465,172 3,099,690 1,465,172 3,099,690
Investment in subsidiary 8 - - 6,000,000 6,000,030
Deposits 9 65,000,000 - 65,000,000 -
Deferred tax assets 14 171,458 78,508 584,405 484,564
87,226,911 24,622,161 89,302,592 25,991,902
Current assets
Inventories 10 25,500,427 24,010,786 25,180,969 23,695,095
Trade and other receivables 11 22,692,216 29,241,783 25,509,048 34,131,328
Deposits 9 8,250,000 71,250,000 8,250,000 71,250,000
Cash and cash equivalents 12 23,587,426 12,534,142 23,587,426 12,534,142
80,030,069 137,036,711 82,527,443 141,610,565
TOTAL ASSETS 167,256,980 161,658,873 171,830,034 167,602,467
EQUITY AND LIABILITIES
Equity
Stated capital 13 187,400 187,400 187,400 187,400
Retained earnings 89,453,806 87,202,749 91,669,901 89,384,394
Non - controlling interest 1,927,287 1,941,066 - -
Total equity 91,568,494 89,331,215 91,857,301 89,571,794
Non-current liability
Defined benefit obligations 19 8,826,282 8,152,210 8,826,282 8,152,210
Other grants 16 28,746,088 28,746,088 28,746,088 28,746,088
37,572,370 36,898,298 37,572,370 36,898,298
Current liabilities
Trade and other payables 17 28,010,133 23,305,965 32,294,380 29,008,980
Bonus payable 18 5,654,176 6,399,728 5,654,176 6,399,728
Bank overdraft 12 3,583,493 4,943,235 3,583,493 4,943,235
Taxation 14 868,314 780,431 868,314 780,431
38,116,115 35,429,359 42,400,362 41,132,374
TOTAL EQUITY AND LIABILITIES 167,256,980 161,658,873 171,830,034 167,602,467
Approved by the Board Members on ……………………………and signed on its behalf by:
……………………………….. ……………………………….. ………………………………
N.Basant Roi - PDSM D.Goburdhun S.Ghurhoo
Chairman General Manager Treasurer
The notes on pages 11 to 30 form an integral part of these financial statements.
The SocietyThe Group
6
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Notes 2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Turnover 3 178,950,358 179,551,672 177,695,113 179,551,672
Cost of sales (155,747,177) (156,775,956) (155,634,706) (157,923,515)
Gross profit 23,203,182 22,775,717 22,060,408 21,628,157
Other income 7,316,170 9,713,861 7,316,170 9,713,861
Administrative expenses (23,380,146) (24,497,722) (22,895,115) (23,254,230)
Depreciation and amortisation (1,723,476) (1,814,394) (1,024,396) (1,115,314)
Profit before taxation 5,415,729 6,177,461 5,457,066 6,972,474
Taxation 14 (1,058,381) (632,208) (1,051,491) (569,227)
Profit for the year 4,357,348 5,545,254 4,405,575 6,403,248
Other comprehensive income
Items that will not be classified subsequently to profit or loss:
(485,550) (3,203,327) (485,550) (3,203,327)
Items that may be classified subsequently to profit or loss:
Available for sale investments:
Increase in fair value of available for sale
investments 94,500 - 94,500 -
Decrease in fair value of available for sale
investments (1,729,018) - (1,729,018) -
(2,120,068) (3,203,327) (2,120,068) (3,203,327)
2,237,280 2,341,927 2,285,507 3,199,921
Owners of the company 2,251,057 2,606,666 2,285,507 3,199,921
Non-controlling interests (13,778) (264,739) - -
2,237,280 2,341,927 2,285,507 3,199,921
The notes on pages 11 to 30 form an integral part of these financial statements.
Remeasurement of defined benefit obligations
Other comprehensive income, net of income tax
Total comprehensive income for the year
Total comprehensive income for the year attributable to:
The SocietyThe Group
7
The Group
Stated
capital
Statutory
reserves
Special
reserve
Building
reserve
Revaluation
reserve
IT fund
reserve
Equipment
reserve
Fair value
reserve
Other
reserves
Retained
earnings
Non-
Controlling
interests
Total
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
As at 01 July 2016 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,584,319 162,000 25,933,520 2,205,804 86,989,287
Transfers - - - - - - - - - - - -
Issue of shares - - - - - - - - - - - -
Dividend - - - - - - - - - - - -
Bonus planters - - - - - - - - - - - -
Bonus secretaries - - - - - - - - - - - -
Bonus staff - - - - - - - - - - - -
Fair Value Adjustment - - - - - - - - - - -
Profit for the the year - - - - - - - - - 2,606,666 (264,739) 2,341,927
Capital Contribution from non- - - - - - - - - - - - -
controlling shareholders - - - - - - - - - - - -
As at 30 June 2017 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,584,319 162,000 28,540,187 1,941,065 89,331,214
Transfers - - - - - - - - - - - -
Issue of shares - - - - - - - - - - - -
Dividend - - - - - - - - - - - -
Bonus planters - - - - - - - - - - - -
Bonus secretaries - - - - - - - - - - - -
Bonus staff - - - - - - - - - - - -
Profit for the the year - - - - - - - - - 2,251,057 - 2,251,057
Non controlling interest (13,778) (13,778)
As at 30 June 2018 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,584,319 162,000 30,791,244 1,927,287 91,568,494
The notes on pages 11 to 30 form an integral part of these financial statements.
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
STATEMENT OF CHANGES IN SHAREHOLDERS' FUND
FOR THE YEAR ENDED 30 JUNE 2018
8
The Society
Stated
capital
Statutory
reserves
Special
reserve
Building
reserve
Revaluation
reserve
IT fund
reserve
Equipment
reserve
Fair value
reserve
Other
reserves
Retained
earnings
Total
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
As at 01 July 2016 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,610,567 162,000 30,695,583 89,571,794
Transfers - - - - - - - - - - -
Issue of shares - - - - - - - - - - -
Dividend - - - - - - - - - - -
Bonus planters - - - - - - - - - - -
Bonus secretaries - - - - - - - - - - -
Bonus staff - - - - - - - - - - -
Fair Value Adjustment - - - - - - - - - - -
Profit for the the year - - - - - - - - - - -
As at 30 June 2017 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,610,567 162,000 30,695,583 89,571,794
Transfers - - - - - - - - - - -
Issue of shares - - - - - - - - - - -
Bonus planters - - - - - - - - - - -
Bonus secretaries - - - - - - - - - - -
Bonus staff - - - - - - - - - - -
Profit for the the year - - - - - - - - - 2,285,507 2,285,507
As at 30 June 2018 187,400 28,188,279 6,736,588 14,420,065 3,000,000 3,871,312 700,000 1,610,567 162,000 32,981,090 91,857,301
The notes on pages 11 to 30 form an integral part of these financial statements.
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
STATEMENT OF CHANGES IN SHAREHOLDERS' FUND
FOR THE YEAR ENDED 30 JUNE 2018
9
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017 2018 2017
Cash flows from operating activities Note
Profit before taxation 5,415,729 6,177,461 5,457,066 6,972,474
Adjustments for:-
Interest received (3,380,966) (381,291) (3,380,966) (381,291)
Retirement benefit obligations 833,021 (37,855) (26,296) (37,855)
Gain on disposal - (2,225,779) - (2,225,779)
Other adjustments 101,052 1,837,631 214,848 -
Depreciation and amortisation 1,723,476 1,814,394 1,024,396 1,115,314
Operating profit before working capital changes 4,692,312 7,184,561 3,289,048 5,442,863
(Increase)/ decrease in inventories (1,489,641) 1,553,063 (1,485,874) 1,518,818
Decrease / (Increase) in trade and other receivables 6,549,568 (7,545,449) 8,622,281 (13,310,170)
Increase / (decrease) in trade and other payables 3,958,616 (5,914,057) 3,285,400 1,626,607
Cash generated from / (absorbed into) operations 13,710,854 (4,721,882) 13,710,854 (4,721,882)
Interest received 3,380,966 381,291 3,380,966 381,291
Taxation and CSR paid (1,063,449) (1,337,091) (1,063,449) (1,337,091)
Net cash flows (absorbed into) / generated from
operating activities 16,028,371 (5,677,682) 16,028,371 (5,677,682)
Cash flows from investing activities
Acquisition of plant and equipment (869,793) (320,299) (869,793) (320,299)
Acquisition of intangible asset - (139,130) - (139,130)
Proceed from sales of land and building - 3,500,000 - 3,500,000
Net cash flows generated (absorbed into) /
generated from investing activities (869,793) 3,040,571 (869,793) 3,040,571
Cash flows from financing activities
Movement in deposits (2,000,000) - (2,000,000) -
Bonus and dividend paid (745,552) (715,852) (745,552) (715,852)
Net cash flows used in financing activities (2,745,552) (715,852) (2,745,552) (715,852)
Net decrease in cash and cash equivalents 12,413,026 (3,352,963) 12,413,026 (3,352,963)
Movements in cash and cash equivalents
Cash and cash equivalents at the start of the year 7,590,907 10,943,870 7,590,907 10,943,870
Cash and cash equivalents at the end of the year 12 20,003,933 7,590,907 20,003,933 7,590,907
Net decrease in cash and cash equivalents 12,413,026 (3,352,963) 12,413,026 (3,352,963)
The notes on pages 11 to 30 form an integral part of these financial statements.
The SocietyThe Group
10
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
1. Reporting entity
2. New and revised IFRSs in issue but not yet effective
Effective dates
Financial Instruments Effective for annual periods beginning on or after
1 January 2018, with earlier application permitted.
Revenue from Contracts
with Customers (and the
related Clarifications)
Effective for annual periods beginning on or after
1 January 2018, with earlier application permitted.
Leases Effective for annual periods beginning on or after
1 January 2019, with earlier application permitted.
Disclosure amended Effective for annual periods beginning on or after
1 January 2017, with earlier application permitted.
Recognition of Deferred
Tax Assets for Unrealised
Losses
Effective for annual periods beginning on or after
1 January 2017, with earlier application permitted.
Key requirements of IFRS 9:
•
IFRS 16
Amendments to IAS 7
Amendments to IAS 12
IFRS 15
The Mauritius Co-operative Agricultural Federation Limited (the “Society”) was founded on 16 August 1950 with the
main objective of promoting the economic interests of its affiliated societies. The main activities of the Society consist of
sale and distribution of agro-inputs, namely fertilizers, pesticides, seeds and other planters materials. It operates a
network of 13 retail outlets located in regions with a high concentration of planters. The registered office of the Society is
situated at Caudan, Port Louis.
The Company has not applied the following new and revised IFRSs that have been issued but not yet effective:
Standards and interpretations
IFRS 9
All Standards and Interpretations will be adopted at their effective date (except for those Standards and Interpretations
that are not applicable to the entity).
IFRS 9 Financial Instruments
IFRS 9 issued in November 2009 introduced new requirements for the classification and measurement of financial assets.
IFRS 9 was subsequently amended in October 2010 to include requirements for the classification and measurement of
financial liabilities and for derecognition, and in November 2013 to include the new requirements for general hedge
accounting. Another revised version of IFRS 9 was issued in July 2014 mainly to include a) impairment requirements for
financial assets and b) limited amendments to the classification and measurement requirements by introducing a ‘fair
value through other comprehensive income’ (FVTOCI) measurement category for certain simple debt instruments.
all recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and
Measurement are required to be subsequently measured at amortised cost or fair value. Specifically, debt
investments that are held within a business model whose objective is to collect the contractual cash flows, and that
have contractual cash flows that are solely payments of principal and interest on the principal outstanding are
generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are held
within a business model whose objective is achieved both by collecting contractual cash flows and selling financial
assets, and that have contractual terms that give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding, are generally measured at FVTOCI. All other debt
investments and equity investments are measured at their fair value at the end of subsequent accounting periods. In
addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of
an equity investment (that is not held for trading) in other comprehensive income, with only dividend income
generally recognised in profit or loss;
11
11
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
2. New and revised IFRSs in issue but not yet effective (continued)
Key requirements of IFRS 9:
•
IFRS 15 Revenue from Contracts with Customers
• Step 1: Identify the contract(s) with a customer.
• Step 2: Identify the performance obligations in the contract.
• Step 3: Determine the transaction price.
• Step 4: Allocate the transaction price to the performance obligations in the contract.
• Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.
IFRS 16 Leases
with regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9
requires that the amount of change in the fair value of the financial liability that is attributable to changes in the
credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of
changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch
in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently
reclassified to profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability
designated as fair value through profit or loss is presented in profit or loss;
The standard is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted under
IFRS.
The Company is assessing the potential impact on its financial statements resulting from the application of IFRS 15.
The core principle of IFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services. Specifically, the Standard introduces a 5-step approach to revenue recognition:
In May 2014, IFRS 15 was issued which establishes a single comprehensive model for entities to use in accounting for
revenue arising from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance
including IAS 18 Revenue, IAS 11 Construction Contracts and the related Interpretations when it becomes effective.
Under IFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the
goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive
guidance has been added in IFRS 15 to deal with specific scenarios. Furthermore, extensive disclosures are required by
IFRS 15. The directors of the Company anticipate that the application of IFRS 15 in the future may have a material
impact on the amounts reported and disclosures made in the Company’s financial statements. However, it is not
practicable to provide a reasonable estimate of the effect of IFRS 15 until the Company performs a detailed review.
IFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for
both lessors and lessees. IFRS 16 will supersede the current lease guidance including IAS 17 Leases and the related
interpretations when it becomes effective.
IFRS 16 distinguishes leases and service contracts on the basis of whether an identified asset is controlled by a customer.
Distinctions of operating leases (off balance sheet) and finance leases (on balance sheet) are removed for lessee
accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognised for
all leases by lessees (i.e. all on balance sheet) except for short-term leases and leases of low value assets.
The directors of the Company do not anticipate that the application of IFRS 16 will have a significant impact on the
amounts recognised in the financial statements.
12
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2. New and revised IFRSs in issue but not yet effective (continued)
Amendments to IAS 7 Disclosure Initiative
Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses
The amendments clarify the following:
1)
2)
3)
4) In evaluating whether sufficient future taxable profits are available, an entity should compare the deductible
temporary differences with future taxable profits excluding tax deductions resulting from the reversal of those
deductible temporary differences.
The amendments apply retrospectively for annual periods beginning on or after 1 January 2017 with earlier application
permitted. The directors of the Company do not anticipate that the application of these amendments will have a material
impact on the financial statements.
The amendments require an entity to provide disclosures that enable users of financial statements to evaluate
changes in liabilities arising from financing activities.
The amendments apply prospectively for annual periods beginning on or after 1 January 2017 with earlier application
permitted. The directors of the Company do not anticipate that the application of these amendments will have a material
impact on the financial statements.
Decreases below cost in the carrying amount of a fixed-rate debt instrument measured at fair value for which the tax
base remains at cost give rise to a deductible temporary difference, irrespective of whether the debt instrument’s
holder expects to recover the carrying amount of the debt instrument by sale or by use, or whether it is probable that
the issuer will pay all the contractual cash flows;
When an entity assesses whether taxable profits will be available against which it can utilise a deductible temporary
difference, and the tax law restricts the utilisation of losses to deduction against income of a specific type (e.g. capital
losses can only be set off against capital gains), an entity assesses a deductible temporary difference in combination
with other deductible temporary differences of that type, but separately from other types of deductible temporary
differences;
The estimate of probable future taxable profit may include the recovery of some of an entity’s assets for more than
their carrying amount if there is sufficient evidence that it is probable that the entity will achieve this; and
13
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
(b) Basis of preparation
(c) Basis of consolidation
(d) Investment in subsidiaries
(e) Revenue recognition
(f) Expense recognition
(g) Property, Plant and equipment
Building 4%
Freehold building 2%
Office equipment 20%
Furniture, fixtures and fittings 10%
Motor vehicles 20%
The financial statements have been prepared in accordance with International Financial Reporting Standards.
The consolidated financial statements comprise the financial statements of the Group and its subsidiary as at 30
June 2018. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date when such control ceases. The financial statements
of the subsidiaries are prepared for the same reporting period as the parent Society, using consistent accounting
policies. All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions
and dividends are eliminated in full. Where ownership of a subsidiary is less than 100%, and therefore a non-
controlling interest/s exists, any losses of that subsidiary are attributed to the non-controlling interest/s even if that
results in a deficit balance. A change in ownership interest of a subsidiary, without a loss of control, is accounted
for as an equity transaction.
Investments in subsidiaries are initially recognised at cost (which includes transaction costs) in the financial
statements of the Society. When indication of impairment exists, the recoverable amount of the investment is
assessed. Where the recoverable amount of an investment is less than its carrying amount, the investment is written
down immediately to its recoverable amount and the impairment loss is recognised as an expense in the statement
of profit or loss and other comprehensive income .
Turnover generally reflects invoiced values of the sale of agro products net of value added tax, rebates, discounts,
allowances and returns. Revenue from the sale of agro products is recognised when significant risks and rewards
of ownership of the products are transferred to the buyer.
Depreciation is calculated to write off the cost or revalued amount of the assets on a straight line basis over
the expected useful lives as follows:-
The financial statements have been prepared under the historical convention except for the revaluation of certain
non-current assets and financial instruments. Historical cost is generally based on the fair value of the
consideration given in exchange for assets.
All property, plant and equipment are initially recorded at cost.
Expenses are accounted for on an accrual basis in the statement of profit or loss and other comprehensive income.
14
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Property, Plant and equipment (Continued)
(h) Cash and cash equivalents
(i) Functional and presentation currency
(j) Taxation
Income tax expense represents the sum of tax currently payable and deferred tax.
Current tax
Deferred tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
statement of profit or loss and other comprehensive income because it excludes items of income or expense that are
taxable or deducible in other years but it further excludes items that are never taxable nor deducible. The Society's
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of the
reporting period.
Deferred Taxation is provided using the liability method on all temporary differences at the end of the reporting
period between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Where assets have been acquired during the year, charges to the statement of profit or loss and other comprehensive
income have been pro-rated.
Cash comprises cash at bank and in hand, demand deposits, term deposits and bank overdrafts. Cash equivalents are
short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of change in value.
Reporting currency
The financial statements are presented in Mauritian rupees (Rs), which is the Group's functional and presentation
currency and represents the currency of the primary economic environment in which the entity operates.
Foreign currency transactions are accounted for at the exchange rates prevailing at the dates of the transactions.
Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and
liabilities in foreign currencies at year end exchange rates are recognised in the profit or loss.
15
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(j) Taxation (Continued)
Deferred tax (Continued)
(k) Borrowing costs
(l) Financial instruments
▪ Categories of Financial Assets
▪
The Society classifies its financial assets in the following categories: loans and receivables, cash and cash
equivalents and available-for-sale financial assets. The classification depends on the purpose for which the
investments were acquired. Management determines the classification of the investments at initial recognition.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They arise when the Society provides money or services directly to a debtor with no
intention of trading the receivable. They are included in the current assets when maturity is within twelve months
of the reporting period or non-current assets for maturities greater than twelve months. They are stated at cost
less provision for estimated irrecoverable or doubtful debts.
Provisions are required to be made by the Society for deferred income taxes on the revaluation of certain non-
current assets and in relation to acquisitions on assets acquired and their tax base.
Temporary differences arise mainly from depreciation on property, plant and equipment, revaluation of certain
non-current assets, tax losses carried forward and on retirement benefit obligations. Recognition of deferred tax
assets relating to the carry forward of unused tax losses are to the extent that it is probable that future taxable profit
will be available against which the unused tax losses can be utilised.
Borrowing costs are recognised as an expense in the period in which they are incurred, except for those costs
which are directly attributable to the acquisition, construction or production of qualifying assets which are
capitalised as part of the cost of that asset until such time as the assets are substantially ready for their intended use
or sale.
The Society, however, has opted to recognise borrowing costs as an expense in the period in which they are
incurred regardless of how the borrowings are applied.
Financial assets and liabilities are recognised on the statement of financial position when the Group has become party
to the contractual provisions of the financial instruments.
Except where stated seprately, the carrying amounts of the Group's financial instruments approximates their fair
values. These instruments are measured as set out below:
16
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Financial instruments (Continued)
▪
Unrealised gains and losses arising from changes in the fair value of financial assets classified as available-for-sale
are recognised in other comprehensive income and accumulated in equity in the investment revaluation reserve with
the exception of impairment losses, interest calculated using the effective interest method and foreign exchange gains
and losses on monetary assets, which are recognised directly in profit or loss. Where the investment is disposed of or
is determined to be impaired, the cumulative gain or loss previously recognised in the investment revaluation reserve
is transferred to profit and loss for the year.
Th fair value of AFS monetary assets denominated in a foreign currency is determined in that foreign currency and
translated at mid rate at the end of the reporting period. The change in fair value attributable to translation
differences that result from a change in amortised cost of the asset is recognised in profit or loss, and other changes
are recognised in equity.
Available-for-sale investments which do not have a quoted market price and whose fair value cannot be reliably
measured, are carried at Net Asset Value.
Dividends on available-for-sale equity instruments are recognised in profit or loss when the Society’s right to receive
payments is established.
Available-for-sale financial assets
Available-for-sale (AFS) financial assets are non-derivatives that are either designated in this category or not
classified in any of the other categories. They are included in non-current assets unless management intends to
dispose of the assets within twelve months of the end of the financial reporting period.
17
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Financial instruments (Continued)
▪ Trade and other receivables
▪
▪ Trade and other payables
(n) Inventories
(o) Ordinary share capital
(p) Retirement benefit obligations
Ordinary shares are classified as equity.
The Society contributes to a pension scheme, which is a “Defined Benefit” plan. The assets of the fund are held
independently and administered by the State Insurance Society of Mauritius Ltd (SICOM). A defined benefit plan
is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of
pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age,
years of service and compensation.
The liability recognised in the statement of financial position in respect of defined benefit pension plan is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, together
with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is
calculated annually by independent actuaries using the projected unit credit method.
Trade receivables are stated at their fair value as reduced by appropriate allowances for estimated irrecoverable
amounts.
Trade and other payables are stated at their fair value.
Inventories are valued at the lower of cost or net realisable value. Cost is determined on the FIFO basis. Cost
of finished goods comprise all costs of purchase, cost of conversion and other costs incurred in bringing such
stocks to their present condition. Net realisable value is the estimate of the selling price in the ordinary course of
business, less the costs of completion and selling expenses.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a
provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented in profit or loss net of any reimbursement.
18
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(q) Related parties
(r) Intangible assets
Computer software
(s) Impairment of assets
4.
Computer software that is not considered to form an integral part of any hardware equipment is recorded as intangible
assets. The software is capitalised at cost and is amortised over its useful life of 3 to 7 years on a straight line basis.
Related parties are considered to be related if one party has the ability to control the other party or exercise
significant influence over the other party in making financial and operating decisions.
Where applicable, the notes to the financial statements set out areas where management has applied a higher degree of
judgement that have a significant effect on the amounts recognised in the financial statements, or estimations and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the year in which the estimate is revised if the revision affects only that year, or in the period of the revision
and future periods if the revision affects both current and future periods.
Fixed and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of the assets may not be recoverable.
Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the
statement of comprehensive income for items of fixed and intangible assets carried at cost. The recoverable amount is the
higher of an asset's net selling price and the value in use.
The net selling price is the amount obtainable from the sale of an asset in an arm's length transaction. Value in
use is the present value of estimated future cash flows expected to arise from the continuing use of an asset from
its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if it not
possible, for the cash-generating unit to which the asset belongs. Reversal of an impairment loss recognised in prior
years is recorded when there is an indication that the impairment loss recognised for an asset no longer exists or has
decreased. The reversal is recorded as income.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group’s accounting policies, which are described in note 3, the directors are required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
4.1 Key sources of estimation uncertainty
With regards to the nature of the Society's business, there were no key assumptions concerning the future, and other key
sources of estimation uncertainty at the end of the reporting period, that may have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.
19
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5. PROPERTY, PLANT AND EQUIPMENT
The Group
Furniture,
Freehold Freehold Office fixtures and Motor
land building equipment fittings vehicles Total
COST/ VALUATION Rs Rs Rs Rs Rs Rs
At 01 July 2017 4,213,192 11,291,614 10,164,228 2,699,421 1,950,250 30,318,705
Additions - 725,623 129,724 14,446 - 869,793
Disposals - - - - - -
At 30 June 2018 4,213,192 12,017,237 10,293,952 2,713,867 1,950,250 31,188,498
DEPRECIATION
At 01 July 2017 - 1,172,076 5,171,020 1,828,114 1,481,295 9,652,505
Charge for the year - 234,306 831,936 116,271 194,050 1,376,563
Disposals - - - - - -
At 30 June 2018 - 1,406,382 6,002,956 1,944,385 1,675,345 11,029,068
NET BOOK VALUE
At 30 June 2018 4,213,192 10,610,855 4,290,996 769,482 274,905 20,159,430
At 30 June 2017 4,213,192 10,119,538 4,993,208 871,307 468,955 20,666,200
Note : The land and building at D’Epinay which was donated to the Society was revalued by Mr P.G Bruno Dumazel – D.I.N.S.T (Paris) M.B.A (U.K), an independent and qualified property
valuer, based on open market value.
20
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
5. PROPERTY, PLANT AND EQUIPMENT
The Society
Furniture,
Freehold Freehold Office fixtures and Motor
land building equipment fittings vehicles Total
COST/ VALUATION Rs Rs Rs Rs Rs Rs
At 01 July 2017 4,213,192 11,291,614 4,112,566 1,785,021 1,950,250 23,352,643
Additions - 725,623 129,724 14,446 - 869,793
Disposals - - - - - -
At 30 June 2018 4,213,192 12,017,237 4,242,290 1,799,467 1,950,250 24,222,436
DEPRECIATION
At 01 July 2017 - 1,172,076 3,462,314 1,607,104 1,481,295 7,722,789
Charge for the year - 234,306 224,296 24,831 194,050 677,483
Disposals - - - - - -
At 30 June 2018 - 1,406,382 3,686,610 1,631,935 1,675,345 8,400,272
NET BOOK VALUE
At 30 June 2018 4,213,192 10,610,855 555,680 167,532 274,905 15,822,164
At 30 June 2017 4,213,192 10,119,538 650,252 177,917 468,955 15,629,854
Note : The land and building at D’Epinay which was donated to the Society was revalued by Mr P.G Bruno Dumazel – D.I.N.S.T (Paris) M.B.A (U.K), an independent and qualified property
valuer, based on open market value.
21
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017 2018 2017
6. INTANGIBLE ASSETS Rs. Rs. Rs. Rs.
Computer Computer Computer Computer
Software Software Software Software
Cost
At 1 July 2,001,708 1,862,578 2,001,708 1,862,578
Additions - 139,130 - 139,130
At 30 June 2,001,708 2,001,708 2,001,708 2,001,708
Amortisation
At 1 July (1,223,945) (872,675) (1,223,944) (872,674)
Charge for the year (346,913) (351,270) (346,913) (351,270)
At 30 June (1,570,858) (1,223,945) (1,570,857) (1,223,944)
Carrying amount
At 30 June 430,851 777,763 430,851 777,764
7.
2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Quoted
Mauritius Chemical and Fertiliser Industry Ltd 85,050 85,050 85,050 85,050
Unquoted
Sugar Investment Trust 110,000 110,000 110,000 110,000
SIT Land Holdings Ltd* 150,000 150,000 150,000 150,000
Maubank** 2,743,300 2,743,300 2,743,300 2,743,300
Chemco Limited 5,340 5,340 5,340 5,340
Ebene Tower Multipurpose Co-operative Limited 1,000 1,000 1,000 1,000
Other 5,000 5,000 5,000 5,000
3,099,690 3,099,690 3,099,690 3,099,690
Fair value gain* 94,500 - 94,500 -
Fair value loss** (1,729,018) - (1,729,018) -
1,465,172 3,099,690 1,465,172 3,099,690
8.
2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Cost
At 01 January - - 6,000,000 6,000,030
Additions - - - -
At 31 December - - 6,000,000 6,000,030
Name of subsidiary
Country of
incorporation Class of shares % holding No. of Shares
2017
Rs
BioFert Co. Ltd. Mauritius Ordinary 66.70 60,030 6,000,030
The Society
The Group SocietyThe Society has quoted and unquoted investments in
the following companies.
AVAILABLE FOR SALE FINANCIAL ASSETS
The Group
Biofert Co. Ltd was incorporated on 18th February 2015 and is engaged in the manufacturing of fertilisers and nitrogen
compounds.
Note: The above investment is unquoted. The directors are of the opinion that there is no indication of impairment. Accordingly
no provision has been made in the financial statements for any possible diminution in the value of the investment.
INVESTMENT IN SUBSIDIARY The Group The Society
22
22
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017 2018 2017
9. DEPOSITS Rs Rs Rs Rs
Maturing:
Current Assets
up to 3 months - 10,250,000 - 10,250,000
3 to 6 months - 28,500,000 - 28,500,000
6 to 12 months 8,250,000 32,500,000 8,250,000 32,500,000
8,250,000 71,250,000 8,250,000 71,250,000
Non-current Assets
> 12 months 65,000,000 - 65,000,000 -
73,250,000 71,250,000 73,250,000 72,450,000
10. INVENTORIES
Fertilizers 3,157,009 3,587,066 3,157,009 3,587,066
Pesticides 19,030,359 17,287,767 19,030,359 17,287,767
Seeds 2,993,601 2,820,262 2,993,601 2,820,262
Raw materials 319,458 315,691
25,500,427 24,010,786 25,180,969 23,695,095
Note: - All stocks are at cost
11. TRADE AND OTHER RECEIVABLES
Trade receivables 15,648,993 15,362,430 15,648,993 15,362,430
Other receivables 6,087,575 12,934,840 8,904,407 17,824,385
Advance and staff loan 213,563 230,313 213,563 230,313
Other deposits 122,147 144,647 122,147 144,647
Prepayments 619,938 569,553 619,938 569,553
Share application monies - - - -
22,692,216 29,241,783 25,509,048 34,131,328
12. CASH AND CASH EQUIVALENTS
Current and savings accounts 23,587,426 12,534,142 23,587,426 12,534,142
Bank overdraft (3,583,493) (4,943,235) (3,583,493) (4,943,235) 20,003,933 7,590,907 20,003,933 7,590,907
2018 2017 2018 2017
13. STATED CAPITAL Rs Rs Rs Rs
At 1 July and 30 June 187,400 187,400 187,400 187,400
14. TAXATION 2018 2017 2018 2017
Charge to statement of comprehensive income Rs. Rs. Rs. Rs.
Current tax liabilities 1,019,150 991,359 1,019,150 991,359
Deferred tax (release) / charge for the year (92,950) (531,713) (99,841) (594,695)
Adjustment - - - -
CSR liabilities 132,181 172,562 132,181 172,562 =
Statement of comprehensive income 1,058,381 632,208 1,051,491 569,227
The Society has one class of ordinary shares,which carry no right to fixed income.
The bank overdraft and other banking facilities are secured by fixed charges of Rs 35,450,000 (2017: Rs 35,450,000) on the assets of the
Society.
The SocietyThe Group
23
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
14. TAXATION (Continued) 2018 2017 2018 2017
Statement of financial position
As at 1 July 780,431 1,165,532 780,431 1,165,532
Current tax liabilities 1,019,150 991,359 1,019,150 991,359
CSR liabilities 132,181 172,562 132,181 172,562
Paid during the year (947,790) (1,377,412) (947,790) (1,377,412)
CSR paid during the year (115,659) (171,610) (115,659) (171,610)
Balance payable as at 30 June 868,314 780,431 868,314 780,431
Reconciliation of tax to current tax expense
The Society is taxed at the rate of 15 % on its
adjusted taxable profits.
Profit as per accounts 5,415,729 6,177,461 5,457,066 6,972,474
Tax at the applicable rate of 15% 812,359 926,619 818,560 1,045,871 Disallowed expenses in the determination of
taxable profits 149,823 329,993 149,823 219,453
Disallowed income in the determination of
taxable profits - (333,867) - (333,867)
Unutilised losses 13,091 77,403 5,678
Timing differences 43,877 (8,789) 50,767 54,224
As at 30 June 1,019,150 991,359 1,019,150 991,359
Deferred tax (asset) / liability
At 1 July (78,508) 453,205 (484,564) 110,131
Charge / (release) for the year (92,950) (531,713) (99,841) (594,695)
At 30 June (171,458) (78,508) (584,405) (484,564)
15. CAPITAL GRANT
At 01 July 3,192,848 3,192,848 3,192,848 3,192,848
Additions - - - -
Release to Income Statement (3,192,848) (3,192,848) (3,192,848) (3,192,848)
As at 30 June - - - -
Grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. When the grant relates to an expense item, it is recognised as income over the period necessary
to match the grant on a systematic basis to the costs that it is intended to compensate. When the grant relates to an
asset, it is recognised as deferred income and released to income in equal amounts over the expected useful life of the
related asset.
The Group The Society
24
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017 2018 2017
16. OTHER GRANTS Rs. Rs. Rs. Rs.
Grant (on closure of Beau Plan Sugar Factory) 13,746,088 13,746,088 13,746,088 13,746,088
Grant (on closure of Mount Sugar Factory) 15,000,000 15,000,000 15,000,000 15,000,000
28,746,088 28,746,088 28,746,088 28,746,088
17. TRADE AND OTHER PAYABLES 2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Trade payables 20,295,721 18,362,730 24,579,968 24,065,745
Other payables and accruals 7,714,412 4,943,235 7,714,412 4,943,235
28,010,133 23,305,965 32,294,380 29,008,980
18. BONUS PAYABLE
At 1 July 6,399,728 6,430,107 6,399,728 6,430,107
Net surplus for the year apportioned to:
Planters - 685,472 - 685,472
Secretaries CCS - - - -
Staff - - - -
6,399,728 7,115,578 6,399,728 7,115,579
Paid to:
Secretaries CCS (9,355) (71,165) (9,355) (71,165)
Passage benefit paid to staff -
Staff (736,197) (644,686) (736,197) (644,686)
5,654,176 6,399,728 5,654,176 6,399,728
19. DEFINED BENEFIT OBLIGATIONS
Statement of financial position disclosures :
Present value of funded obligation 30,234,004 30,326,789 30,234,004 30,326,789
Fair value of plan assets (21,407,722) (22,174,579) (21,407,722) (22,174,579)
8,826,282 8,152,210 8,826,282 8,152,210
Present value of unfunded obligation - - - -
Unrecognised actuarial gain - - - -
Prioy year adjustment
Net liability in the statement of financial position 8,826,282 8,152,210 8,826,282 8,152,210
The amounts recognised in the statement of comprehensive income
are as follows:
Current service cost 813,312 1,030,982 813,312 1,030,982
Fund expenses 26,296 68,730 26,296 68,730
Interest on obligation 615,733 298,662 615,733 298,662
Expected return on plan assets - - - -
Actuarial gain recognised - - - -
Profit and loss charge 1,455,341 1,398,374 1,455,341 1,398,374
Remeasurement
Liability loss 1,004,401 3,389,113 1,004,401 3,389,113
Asset loss (518,851) (185,786) (518,851) (185,786)
Total other comprehensive income (OCI) recognised 485,550 3,203,327 485,550 3,203,327
Total 1,940,891 4,601,701 1,940,891 4,601,701
Grants were received from Compagnie Usinière de Belle Vue Limitée following the closure of Beau Plan Sugar Factory and Mount Sugar
Factory. The purpose is to enhance the productivity of planters of the Beau Plan Sugar factory and Mount Sugar Facory areas by providing
services such as the construction of access roads, culverts and construction of bridges.
The Society
The Group
The Group
The Company
25
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
19. DEFINED BENEFIT OBLIGATIONS (Continued) 2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Movement in liability recognised in the statement of financial position :
At start of year 8,152,210 4,853,032 8,152,210 4,853,032
Add staff cost as above 1,455,341 1,398,374 1,455,341 1,398,374
Less contributions paid (1,266,819) (1,302,523) (1,266,819) (1,302,523)
Amount recognised in OCI 485,550 3,203,327 485,550 3,203,327
Net liability at end of year 8,826,282 8,152,210 8,826,282 8,152,210
Actual return on plan assets:
The principal actuarial assumptions used were as follows :
% % % %
Discount rate 6.5 6.5 6.5 6.5
Future pension increases 4.0 4.0 4.0 4.0
Future salary increases 3.0 3.0 2.5 3.0
Mortality before retirement
A 6770
Ultimate Tables
A 6770
Ultimate Tables
A 6770 Ultimate
Tables
Mortality in retirement PA (90) Tables PA (90) Tables PA (90) Tables
Retirement age
As per the
Scheme Rules
As per the
Scheme Rules
As per the
Scheme Rules
Reconciliation of present value of defined obligation 2018 2017 2018 2017
Rs. Rs.
Present value of obligation at start of year 30,326,789 24,999,079 30,326,789 24,999,079
Current service cost 813,312 1,030,982 813,312 1,030,982
Interest cost 1,971,241 1,624,940 1,971,241 1,624,940
Benefits paid (3,881,739) (717,325) (3,881,739) (717,325)
Liability loss 1,004,401 3,389,113 1,004,401 3,389,113
Present value of obligation at end of year 30,234,004 30,326,789 30,234,004 30,326,789
Reconciliation of present value of defined obligation
Fair value of plan assets at start of period 22,174,579 20,146,047 22,174,579 20,146,047
Expected return on plan assets 1,355,508 1,326,278 1,355,508 1,326,278
Employer contributions 1,266,819 1,302,523 1,266,819 1,302,523
Benefit paid (3,908,035) (786,055) (3,908,035) (786,055)
Asset gain 518,851 185,786 518,851 185,786
Fair value of plan assets at end of period 21,407,722 22,174,579 21,407,722 22,174,579
Distribution of plan assets at end of year
% % % %
Percentage of assets at end of year
Government securities and cash 62.0 60.1 62.0 60.1
Loans 1.3 2.1 1.3 2.1
Local equities 14.3 14.8 14.3 14.8
Overseas bonds and equities 21.8 22.4 21.8 22.4
Property 0.6 0.6 0.6 0.6
100 100 100 100
The SocietyThe Group
A 6770 Ultimate
Tables
PA (90) Tables
As per the
Scheme Rules
26
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
19. DEFINED BENEFIT OBLIGATIONS (CONTINUED) 2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Additional disclosure on assets issued or used by the reporting entity:
Components of the amount recognised in OCI
Assets experience (loss) during the year 518,851 185,786 518,851 185,786
Liability experience (loss) during the year (1,004,401) (3,389,113) (1,004,401) (3,389,113)
(485,550) (3,203,327) (485,550) (3,203,327)
2018 2017 2018 2016
Rs. Rs. Rs. Rs.
Expected employer contributions 1,377,630 1,339,254 1,377,630 1,339,254
Weighted average duration of the defined benefit obligation 13 years 13 years 13 years 13 years
(Calculated as a % of change in PV of liabilities for a 1% change in discount rate)
20. CONTINGENCIES
21. FINANCIAL INSTRUMENTS
Capital risk management
(a) Market risk
(i) Foreign exchange risk
Foreign currency risk management
The SocietyThe Group
The Group does not have any assets and liabilities denominated in foreign currencies. Consequently, the Group is not exposed to any
currency risk.
The capital structure of the Group consists of share capital and retained earnings.
At the end of the reporting period, the Society had contingent liability in respect of bank guarantees arising in the ordinary course of
business from which it is anticipated that no material losses will arise.
The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the return to
shareholders through the optimisation of the debt and equity balance.
The Society’s activities expose it to a variety of financial risks: market risk (including cash flow interest rate risk and other price risk),
credit risk and liquidity risk.
27
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
21. FINANCIAL INSTRUMENTS (Continued)
(a) Market risk (Continued)
(ii) Interest rate risk management
The interest rate profile of the Society at 30 June 2018 was:
2018 2017 2018 2017
Financial assets: % % % %
Deposits 3.5-4 3.5-4 3.5-4 3.5-4
Financial liabilities:
Bank overdraft 10.25 10.25 10.25 10.25
Interest rate risk sensitivity analysis
2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Profit/(loss) 466,270 394,205 466,270 394,205
(iii) Price risk
(b) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Group. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating
the risk of financial loss from defaults. The Group only transact with entities of good credit rating. It uses publicly
available financial information and its own trading records to rate its major customers. The Group’s exposure and the
credit ratings of its counterparties are continuously monitored.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties
having similar charateristics.
The Society
The Society
The Group
The Group
The Society is exposed to interest rate fluctuations on the domestic market with respect to interest income and
expense. The Society earn interest income on its surplus cash. Management closely monitors interest rate trends and
their impact on interest income and expense.
The Society is also exposed to interest rate risk as it borrows funds at both fixed and floating interest rates.
The sensitivity analsyis below have been determined based on the exposure to interest rates at the end of the reporting
period. For fixed and floating rate assets and liabilities, the analysis is prepared assuming the amount of assets /
liability outstanding at the end of the reporting period was for the whole year. A 50 basis points increase or decrease
used when reporting interest rate risk internally to key management personnel and represents management's assessment
of the reasonable possible change in interest rates.
The Group is not faced with any price risk.
If interest rates had been 50 basis points higher or lower, the effect on profit would have been as follows:
28
28
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
21. FINANCIAL INSTRUMENTS (Continued)
(c) Liquidity risk
Liquidity risk as at 30 June 2018
Due on
demand
Due for less
than 1 year
Due between
1 and 5
years
Due for more
than 5 years
Total
Rs Rs Rs Rs Rs
- - 65,000,000 - 65,000,000
- 22,072,278 - - 22,072,278
23,587,426 8,250,000 - - 31,837,426
23,587,426 30,322,278 65,000,000 - 118,909,704
- 24,579,968 - - 24,579,968
3,583,493 - - - 3,583,493
3,583,493 24,579,968 - - 28,163,461
(d) Fair value of financial instruments
The carrying amounts of the Group’s financial assets and financial liabilities approximate their fair values due to the
short-term nature of the balances involved.
Trade and other receivables
Liquidity risk is the risk that the Group is unable to meet its payment obligations, associated with its financial liabilities,
when they fall due.
Ultimate responsibility for liquidity risk rests with the board of directors, which monitors the Society's short, medium and
long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate
reserves, by continuously monitoritng forecasts and actual cash flows and matching the maturity profiles of financial
assets and financial liabilities.
Assets
Bank overdraft
Total liabilities
Cash and cash equivalents
Total assets
Liabilities
Trade and other payables
Deposits
29
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
21. FINANCIAL INSTRUMENTS (Continued)
(d) Fair value of financial instruments
Fair value measurements recognised in the statement of financial position
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilites
Level 2:
Level 3:
Available for sale financial assets
2018 2017 2018 2017
Rs. Rs. Rs. Rs.
Level 1 - Quoted 85,050 85,050 85,050 85,050
Level 2 - Unquoted 3,014,640 3,014,640 3,014,640 3,014,640
3,099,690 3,099,690 3,099,690 3,099,690
Available-for-sale financial assets comprise listed quoted and unquoted financial assets.
22. GOING CONCERN
23. EVENTS AFTER THE REPORTING PERIOD
The carrying amounts of the Society’s financial assets and financial liabilities approximate their fair values due to the
short-term nature of the balances involved.
The Group The Society
None of the financial assets are either past due or impaired.
There are no events after the reporting period which may have a material effect on the financial statements at 30 June
2018.
The Society uses the following hierarchy for determining and disclosing the fair value of the finaincial instruments by
valuation techniques:
Other techniques for which all inputs that have a significant effect on the recorded fair value are
observable, either directly ot indirectly
Techniques that use inputs that have a significant effect on the recorded fair value are not based
on observable market data.
The following table analyses within the fair value hierarchy of the Society financial assets (by class) measured at fair
value at 30th June.
The Company's management has made an assessment of the Company's ability to continue as a going concern and is
satisfied that the Company has the resources to continue in business for the foreseeable future. Furthermore, the
management is not aware of any material uncertainties that may cast significant doubt upon the Company's ability to
continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.
30
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
SCHEDULES TO THE STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017
I. TURNOVER Rs. Rs.
Fertilisers 79,069,940 85,019,974
Pesticides 82,936,167 81,692,735
Seeds 15,689,006 12,838,963
177,695,113 179,551,672
II. COST OF SALES
Opening stock 23,695,095 25,213,913
Purchases 157,101,080 156,346,697
Carriage inwards 19,500 58,000
180,815,675 181,618,610
Closing stock (25,180,969) (23,695,095)
155,634,706 157,923,515
The Society
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED AND ITS SUBSIDIARY
SCHEDULES TO THE STATEMENT OF COMPREHENSIVE INCOME APPENDIX II
FOR THE YEAR ENDED 30 JUNE 2018
2018 2017
III. ADMINISTRATIVE EXPENSES Rs. Rs.
Wages and salaries 11,384,539 10,937,452
Committee allowances 602,070 597,754
Travelling 1,450,309 1,283,518
Pensions 1,617,732 1,561,563
Other staff costs 1,098,194 1,527,582
Rent and rates 834,731 1,565,513
Telephone and postage 314,201 320,482
Electricity and water 256,244 406,648
Printing and stationery 254,116 442,629
Insurance premium 298,630 19,859
Interest and bank charges 74,437 265,315
Mission and conferences 201,252 437,763
Repairs and Maintenance 290,258 415,076
Security expenses 79,301 114,732
Motor vehicle running expenses 464,453 526,664
General expenses 141,205 92,994
Professional fees 470,900 239,606
End of year party and anniversary expenses 86,200 57,928
Miscellaneous 88,801 100,741
Repair of access roads 165,800 102,500
Training - 46,600
Subsidies to planters 15,104 41,930
Advertising 171,906 131,141
Licence and subscription fees 543,605 498,361
Import charges 261,652 651,811
Refreshment & hospitality 168,520 88,316
Cleaning Expenses 82,449 83,297
Mount Expenses-MGT FEE 143,750 172,000
Commision paid 165,182 101,696
Dividend paid 12,804 1,200
CSR paid - 171,559
Retirement Benefit 833,021 -
Management fee 323,750 250,000
22,895,116 23,254,229
IV. OTHER INCOME
Discount received 556,654 433,791
Comission received 1,879,579 3,059,489
Management income 250,000 250,000
Interest Income 3,380,966 2,401,341
Dividend received 22,144 19,327
Rent 261,200 204,540
Miscellaneous 965,627 1,074,994
Parking fees - 44,600
Gain on disposal - 2,225,779
7,316,170 9,713,861
V. DEPRECIATION AND AMORTISATION
Building on Leasehold Land - 108,547
Freehold Building 234,306 225,435
Office Equipment 224,296 213,102
Furniture, fixtures and fittings 24,831 22,911
Motor vehicle 194,050 194,050
Computer Software 346,913 351,270
1,024,396 1,115,315
The Company
INCOME AND EXPENDITURE ACCOUNT APPENDIX III
The Company
2018 2017
Turnover: Rs. Rs.
Fertilisers 79,069,940 85,019,974
Pesticides 82,936,167 81,692,735
Seeds 15,689,006 12,838,963
177,695,113 179,551,672
Cost of sales (155,634,706) (157,923,515)
Gross surplus 22,060,407 21,628,157
Other income 7,316,170 9,713,861
29,376,577 31,342,018
Expenses
Wages and salaries 11,384,539 10,937,452
Committee allowances 602,070 597,754
Travelling 1,450,309 1,283,518
Pensions 1,617,732 1,561,563
Other staff costs 1,098,194 1,527,582
Rent and rates 834,731 1,565,513
Telephone and postage 314,201 320,482
Electricity and water 256,244 406,648
Printing and stationery 254,116 442,629
Insurance premium 298,630 19,859
Interest and bank charges 74,437 265,315
Mission and conferences 201,252 437,763
Repairs 290,258 415,076
Security expenses 79,301 114,732
Motor vehicle running expenses 464,453 526,664
General expenses 141,205 92,994
Professional fees 470,900 239,606
End of year party and anniversary expenses 86,200 57,928
Miscellaneous 88,801 100,741
Repair of access roads 165,800 102,500
Training - 46,600
Subsidies to planters 15,104 41,930
Advertising 171,906 131,141
Licence and subscription fees 543,605 498,361
Import charges 261,652 651,811
Refreshment & hospitality 168,520 88,316
Cleaning Expenses 82,449 83,297
Mount Expenses 143,750 172,000
Commision paid 165,182 101,696
Dividend Paid 12,804 1,200
CSR - 171,559
Retirement Benefit 833,021
Management Fee 323,750 250,000
Depreciation and amortisation 1,024,396 1,115,315
23,919,512 24,369,544
5,457,066 6,972,474
Taxation (Note 14) (1,051,491) (569,227)
Net surplus for the year 4,405,575 6,403,248
Other comprehensive income
Items that will not be classified subsequently to profit or loss:
Remeasurement of defined benefit obligations (485,550) (3,203,327)
Items that may be classified subsequently to profit or loss:
Available for sale investments:
Increase in fair value of available for sale investments 94,500 -
Decrease in fair value of available for sale investments (1,729,018) -
Other comprehensive income, net of income tax (2,120,068) (3,203,327)
Total surplus for the year 2,285,507 3,199,921
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED
FOR THE YEAR ENDED 30 JUNE 2018
THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LTD
INCOME TAX COMPUTATION
TAN NUMBER 22000723
ASSESSMENT YEAR 2018/2019
MCAF
Beau Plan
Planters Fund
Mount
Planters fund Biofert Conso
2018 2018 2018 2018 2018
Rs. Rs. Rs. Rs.
NET PROFIT / (LOSS) AS PER ACCOUNTS 4,178,934 545,893 732,239 (41,337) 5,415,729
ADD: DEPRECIATION AND AMORTISATION 1,024,396 - - 699,080 1,723,476
Repair of roads 96,400 69,400 - 165,800
End of year party and inauguration expenses - -
CSR expense - -
Balancing charge - -
Retirement benefit obligations - PROFIT AND LOSS 833,021 833,021
Retirement benefit obligations - OCI - - - - -
6,036,351 642,293 801,639 657,743 8,138,026
LESS: DIVIDEND - - - - -
Gain on disposal - -
Capital Grant released - -
LESS: CAPITAL ALLOWANCES: ANNUAL (685,948) - - (745,016) (1,430,964)
ADJUSTED PROFIT 5,350,403 642,293 801,639 (87,273) 6,707,063
LOSSES BROUGHT FORWARD - - - - -
TAXABLE PROFIT 5,350,403 642,293 801,639 (87,273) 6,707,063
Taxation @ 15% 802,561 96,344 120,246 - 1,019,150
Less: APS
Quarter ended 30 Sep 2017 (96,598) - - (96,598)
Quarter ended 31 Dec 2017 (70,761) (70,761)
Quarter ended 31 Mar 2018 - - - - -
Taxation payable / (receivable) 635,202 96,344 120,246 - 851,791
CSR COMPUTATION
Chargeable income (30 June 2017) 5,068,529 833,122 707,410 - 6,609,061
Chargeable income 5,068,529 833,122 707,410 - 6,609,061
CSR Contribution - 2% 101,370.58 16,662 14,148 - 132,181.22
Total CSR 101,371 16,662 14,148 - 132,181
CSR paid during the year 101,371- (14,288) - - (115,659)
CSR underpaid/ (overpaid) (0) 2,374 14,148 - 16,522
Total taxation receivable / payable 635,201 98,718 134,394 - 868,314