ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018

Since 1950

THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LTD

ANNUAL REPORT

FOR THE YEAR

ENDED

30 JUNE 2018

MCAF LTD - ANNUAL REPORT 2018

1


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.


2

THE CHAIRMAN’S

REPORT

Mr. Nundlall Basant Roi,

PDSM


3

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.


4

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


5

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


6

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


7

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)


8

AUDIT COMMITTEE 2018-2019

NAME DESIGNATION


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


Member



9

PESTICIDES IMPORTATION & SALES SUB-COMMITTEE

NAME DESIGNATION

Mr. Chabilall KHELAWON Chairman


Mr Ravindranath Roopah

Member

Mr Arun Kumar BHOLAH

Member

Mr. Satyvanoo GOPAL Member

MARKETING COMMITTEE

NAME DESIGNATION


Mr. Ellanah Pathereddy APPANNAH Member

Mr. Satidanan GHURHOO Member

Mr. Dineshsing Goburdhun Member

Marketing Manager Member

Sales Executive Member

Senior Sales Officers Member


10

BIO FERT COMPANY LTD

NAME DESIGNATION


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


11

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)


12

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


13

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


14

REPORT OF THE BOARD OF

DIRECTORS

By Mr Dineshsing Goburdhun

General Manager of MCAF Ltd


15

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


16

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


17

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


18

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


19

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)


20

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.


21

(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.


22

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


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


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.


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


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


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


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


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:


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



STATEMENT OF CHANGES IN SHAREHOLDERS' FUND


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



STATEMENT OF CHANGES IN SHAREHOLDERS' FUND


9


STATEMENTS OF CASH FLOWS


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)



10


NOTES TO THE FINANCIAL STATEMENTS


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


Leases Effective for annual periods beginning on or after


Disclosure amended Effective for annual periods beginning on or after


Recognition of Deferred

Tax Assets for Unrealised

Losses

Effective for annual periods beginning on or after


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




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




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




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




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





(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





(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





(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





(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




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


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




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


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


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




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




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.


23




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




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




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


A 6770 Ultimate

Tables

PA (90) Tables

As per the

Scheme Rules

26




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 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




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





(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





(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


SCHEDULES TO THE STATEMENT OF COMPREHENSIVE INCOME


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



SCHEDULES TO THE STATEMENT OF COMPREHENSIVE INCOME APPENDIX II


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



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

Documents

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018