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1FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
ANNUAL REPORT 2016
Broadening horizons for growth
2 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
FHL GROUP CORE VALUES• Integrityinourdealings• Innovativeinoursolutions• Progressiveinourculture• Playtogethertowin• Growourpeople
FHL GROUP CORE PURPOSEToacceleratetheparticipationofindigenousFijiansinthecommercialsectorandindoingso,enhancetheirsocioeconomicstanding.
FHL GROUP VISIONTobethemostinnovativeinvestmentGroupinthePacific
MISSION STATEMENTSThe FHL Group is committed to the achievement of its missionstatementassetoutbelow:• We will create sustainable and consistent value for our
shareholders&stakeholders.• Wewillstrivetoleadinallourchosenareasofbusinessthrough
creativity,innovation,passionandbyputtingourcustomersfirstatalltimes.
• Wewillmaintainthehigheststandardsofprofessionalintegrity,diligence, responsibility andcare in carryingoutall aspectsofourbusiness.
• We will actively promote the growth & development of ourpeopletoexcelinbusinessandfulfiltheirpurposeinlife
NA UTO NI VAKABAUTA NI KABANI • Dinaenaneitouveiqaravi• Tubucakenarawakaenavakasalavinaka• Metosotikoganaitovonineitouveiqaravi• Cakacakavatamedaqaqa• Me tarai cake na i vatagedegede ni rawa ka ni neitou tamata
cakacaka
NA YAVUTU NI KABANI Me vakusakusataka na nodra vakaitavi na iTaukei ena cicivaki nibisinisi,vakadeitakakinananodrabulavakavanua,vakabisinisi.
NA RAI NI KABANI MedaunivakatubuilavotauduaenaPasifika
NA YALAYALA ME VAKAVOTUKANATAKISatuvakaraunaKabaniCokovatanaFHLmetutakanakenalaurainavakavotukanatakininonayalayalaeratikoqo:• Keimamibuliakacakacakatakanaveikakeimamivakavulicaena
kabanibaletiiraeraiTaukeikeiiraeravakaitavikina.• Keimaminasagametadolavikinanavanuanivakatububisinisi
enaneitouvakavulici irakeitouqarava,navakasamatitobu,nalolomakeinagadreviniveisau.
• Keimaminamaroroyakabulatakanaitovoniveiqaravikakenayavunadina,cakacakavakadodonukeinatuvaikaqaravivinakanitaviniveiqaravi.
• Keimami na tutaka vakaukauwa na nodra tuberi cake keina nodra vakavulici na iTaukei me ra daunibisinisi vinaka katamusukanavuaninodrabula.
1FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
ContentsUlUtaga
HistoryofFijianHoldingsLimited 2TauyavutakiniKabani
TheYearinReview 3NaRaiciLesuniYabakiVakailavo
FinancialHighlights 4UsutuniRawaKa
FijianHoldingsLimitedTop30Shareholders 6NaiMataiNi30NiTaukeiNiSeaLevuTaudua
CorporateGovernanceStatement 7TukutukuNiKenaCicivakiNaKabani
CorporateSocialResponsibility 12TukutukuNiQaraviNiBulaRaraba
Investment&StrategySub-Commitee 14KomitiKaQaravaNaVakatubuilavo
Audit&RiskSub-Committee 15KomitiKaQaravaNaRiriko
BoardNomination&RemunerationSub-Committee 16KomitiKaQaravaNaVeidigitakikeinaiSauniDairekita
People&LeadershipSub-Committee 17KomitiKaQaravaNaTamataCakacaka
BoardofDirectors 18LeweniMatabose
FHLGroupManagementTeam 20ManidiaLiuNiKabaniCokovataeFHL
FHLManagementTeam 22ManidiaVeiliutakieFHL
Chairman’sReport 23TukutukuNiLiuliuNiMatabose
GroupChiefExecutiveOfficer’sReport 27TukutukuNiLiuliuNiKabaniCokovata
OperationalReportofSubsidiaryCompanies 33TukutukuMaiVeiIranaVeikabaniCokovata
ReportonAssociateCompaniesandOtherInvestments 41KedraiTukutukunaKabaniVeiwekani
FinancialStatements 45TukutukuVakailavo
2 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
HISTORY OF FIJIAN HOLDINGS LIMITED TAUYAVUTAKI NI KABANI
FHl groUp leaders
FijianHoldingsLimited (FHL)was incorporated in1984to fulfil theobjectives of the leaders of the iTaukei people of Fiji, creating anentity thatmeaningfully represented itaukei in thebusinesssectorandensuredtheirmeaningfulparticipationintheFijianeconomy.
FHLshareholdersincludeprovincialcouncils,theiTaukeiLandTrustBoard,theiTaukeiAffairsBoard,tikinaandvillagegroups,iTaukeico-operatives,individualiTaukeiandfamilycompanies.
Its investments give the iTaukei significant shareholding in majorcompanies thus helping to achieve the objective of bringing theiTaukeifullyintothemainstreamofFiji’seconomy.
FHLhasalsobroadenedthescopeofitstrainingprogrammewhereinyoungiTaukeiarepreparedandgroomedforbusinessutilisingtheresourcesofitssubsidiarycompanies.
E a tayavu ena yabaki 1984 na kabani na Fijian Holdings Limited(FHL) ena vukuni nodragagadrenaTuragaBale keiViti kei ira nalewenivanuaiTaukeimevakatotolotakinanodravakaitavienabulararabavakailavonivanuakoViti.
ErataukeiniseaenaFHLnaMataboseniqelemaroroi,naveiyasana,naMataboseniveikaVakaitaukei,naiSoqosoqoniveitikinakeinakoro,nasoqosoqocokovataniveivolikanodrana iTaukei,o iranaiTaukeiyaduakeiiranakabanitaukenivakavuvale.
NanonavacurumilavoenavoliseanaFHLenaveikabanilelevueso,emai rawakinanainaki rarabani kenavakayarayaratakinanodravakaitavinaiTaukeienabulavakabisinisikeinabulavakailavoiviti.
Esavakarabailevutakatalegananonayavuniveiqaravimebaletana nodra vakavulici ka vakarautaki na gone iTaukei ena cicivakini bisinisi ka sa vakayagataki kinana i yauni kabani e taukena kacicivakatikonaFHL.
GroupChairman
1984–2006 LyleCupit
2006-2008 JosaiaMar
2008–2008 RobinStorck
2008–2011 IsoaKaloumaira
2011–2011 CarlCameron
2011–2016 IowaneNaiveli
GroupChiefExecutiveOfficer/HeadoftheGroup
1987–2008 SitiveniWeileilakeba
2008–2011 SereanaQoro
2011–2016 NouzabFareed
3FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
THE YEAR IN REVIEWNA RAICI LESU NI YABAKI VAKAILAVOThisreportprovidesourshareholderswithhighlightsofthe2016financialyear.Theyearinreviewnotonlyhighlightsourfinancialperformancebutalsothemarketannouncementsmaderegardingsignificantactivitiesthatcontributedtoourpositiveresults.
July2015• FijiTV signs a non-disclosure agreementwithDigicel(Fiji) and 4 other
companiesforthepartialdivestmentofSkyPacific.• FijiTV confirms that thedealwithTelikomPNG to sellMediaNiuguni
Limitedisstillintact.• FijiTVannounces that theyare ready tomove toDigitalplatformand
planstolaunchChannelTwo.• AnindependentDirectortobeappointedforFijiTVaspertheSPSElisting
rules• AnewupgradedpayingsystemforSkyPacificlaunched.• RBPateldeclaresafinaldividendof10¢per share tobepaidon27th
August,2015.
August2015• FijianHoldingsLimitedannouncesa9%growthinconsolidatedrevenue
for the 12 months ended 30th June, 2015 with consolidated grouprevenueendedJune2015amountingto$276mcomparedto$253mforthesameperiodlastyear.
• FijiTVannouncesauditedfinancialstatementforyearended30thJunewithnetprofitof$1.6milrepresentinga20%increasefromlastfinancialyear.TheHoldingCompanyrecordedarevenueof$23.4mforFY2015.
• RBPatelreleasesitsAnnualReportfor2015.• Fiji TV makes a public announcement regarding the sale of Media
Niugunistressingthatthedealisintactandthatwhileallconditionshavebeensatisfied,aspecificsportingrightforPNGisbeingdiscussed.
• FijiTVannouncestheappointmentoftwonewBoardDirectors–UlaiasiTaoiandShaneHussein.
• FHL announces the appointment of 3 new Board Directors. TheappointmentmadebytheMinisterofITaukeiAffairsseesCommanderViliameNaupoto,AiseaVosailagiandJohnO’ConnorbecameDirectors.
• Fiji TV secures a non-exclusive broadcast rights to air the 2015/2016SeasonoftheEnglishPremierLeague.
September2015• FHL declares $3.351m as the second interim dividend to be paid to
companyshareholdersfortheyearendedJune30th,2015.• FijiTVreleasesmore informationonthesaleofSkyPacificaddingthat
aftermuch consideration, Digicelwas chosen and the salewasmadeatacostof$5.75m.TheCompanyalsoclarifiesthatproceedsfromthesalewillbeusedtoreduceoutstandingcreditorswhileaportionmaybedistributedamongshareholderssubjecttoBoardapproval.
• FijiTVreleasesits2015AnnualReport.• FijiTVsignsasaleagreementwithDigicelFijiLtd.Theagreementwillsee
DigiceltakepartofthedivisionalemployeesfromSkyPacificandensurethatSkyPacificserviceswillcontinueinFijiandthePacific.
• Fiji TV announces an organizational restructure. Whilst stressing thattherewillbenoredundancy,anystaffwishingtoleavetheCompanywillbeassisted.
• FHL announces Annual General Meeting to be held on the 23rd ofOctober,2015.
October2015• FHLannouncesasper theSPSEListingRule6.21, resolutions fromthe
30thAGMwerepassedwithoutobjection.Partoftheresolutionswerethere-electionofIowaneNaiveliandColMSD(Retd)SakiusaRaivoceasDirectors,theappointmentofCommanderViliameNaupoto,RatuAiseaVosailagiandJohnO’ConnorasDirectors. Itwasalsoresolvedthatthesecondinterimdividendsof$0.11perAClassshareand$0.11perBClasssharestobepaidoutoftheprofitfortheperiodended30thJune,2015.
• FijiTVannouncesthepassingof the2015AGMresolutionswhichalsoincludedtheratificationofappointmentofDirectorsApakukiKurusigaand Ulaiasi Taoi as well as the re-election of Ajay Punja and NouzabFareed.
• RBPatelannounces theunanimousapprovalof theirAGMresolutions.This includedthere-electionofSurendraPatelandKaliopateTavolaasCompanyDirectors.
November2015• FHL’sGroupAwardsNightwasheldat theVodafoneArenawithmore
than1,000guest.Theguestsincludedstaffofsubsidiarycompaniesandtheirspouses.
• FHL announces the appointment of Napolioni Batimala as CEO forMerchant Finance Limited and Mosese Volavola as CEO for BasicIndustriesLimited.
December2015• Following the reduction in VAT in the 2016 National Budget, Fiji TV
announcesthenewpricesforitspayperviewtelevisionservices.• FijiTVannouncesitsnewindependentdirector–NaveenLakshmaiya
January2016• RBPateldeclaresan interimdividendof$0.04persharetobepaidon
25th February, 2016. The company’s revenue including other incomeincreasedby3%to$57m.
• FHLannouncestheappointmentofParadiseTabucalaasCommunicationsOfficer.
February2016• The FHL group donates $10k towardsTCWinston appeal. In addition
to this,other subsidiariesalsodonatedgoods.PacificCementgave50tonsof cement,Basic Industriesdonated10, 000concreteblocks, andFHLProperties&FundManagementdistributed100cartonsofdryfoodrations. FijiTV allocated $20, 000 advertisement slots forDISMAC andRedCross.StandardConcretedistributed$10,400worthoffoodrations.RB Patel provided dry rations in partnershipwith the Salvation Army,SouthSeaCruisesbroughtinvolunteerstoassistinrehabilitationworkandMerchantFinanceLimitedprovidedaDisasterreliefPackageto itscustomers.
• FHL records a 30%growth for the sixmonths ending 31stDecember,2015.Grouppre-taxprofitsforsixmonthsstoodat$18.73mcomparedto$14.40machievedduringthesameperiod.
• FijiTVreleasesunauditedfinancialresultsforthesixmonthsended31stDecember,2015witharevenueof$5.1mforthefirstsixmonthsofFY16,a29%increasecomparedtothesameperiodlastyear.
• FijiTVannounces that ithas securedpermission tobroadcast thefirstroundofmatchesfromthe2016SuperRugbyseasononSkyPacific.
March2016• FHL declares $3.66m as an interim dividend based on the Groups
performanceforthesixmonthsended31stDecember,2015.Morethan1,200shareholdersofFHLwillreceivetheirdividendonApril28th,2016.
• FHL announces the resignation of Salesh Dayal as General ManagerFinanceandalsofromthevarioussubsidiarycompanyboardswhereMr.DayalservedasDirector.
• Fiji TV announces that from 1st April, 2016 Sky Pacific will officiallybecomepartofDigicelFijiGroup.
• FHLsubsidiary–MerchantFinanceLimitedlaunchesfournewproductsdesignedtoassistsmallandmediumenterprises.
April2016• Fiji TV announces a special dividend of $0.36 to be paid out to its
shareholders following the successful sale of Sky Pacific and MediaNiuguni.
• FHLannouncesthedivestmentof itswhollyownedsubsidiary inPNG,Basic Industries Limited PNG onMarch 31st, 2016 for a considerationofonemillionPGKtoPernix (PNG)Ltd.ThemoveseesFHLmakinganadditional6millionPGKinvestmentinPernix(PNG)Ltd.
May2016• FHL extends its Group CEO – Nouzab Fareed’s contract by another 3
yearsuntil2019.Underhis leadership,FHLGroupacquiredPernix (Fiji)Ltd,FijiTVLtdandSouthSeaCruisesLtdandalsodivestedlossmakingsubsidiariesFHLLogisticsLtdandPNGbasedBasicIndustries(PNG)Ltd.
• RBPatelGroupLimited launchestheirnewlyrevampedwebsite (www.rbpatel.com.fj)wherepeoplecanalsoshoponlinefromanywhereintheworldusingtheircreditcard.
• FHLGroupSportsdaywasheld inSuvaat theVeiutoSchoolgrounds.Staffandfamiliesenjoyedadayfulloffunandteambonding.
June2016• FijiTVstafftemporarilylockedinsidetheirofficebythelandlord–FPSCU.
This follows a dispute with regards to the sudden increase in rental.However,GCEONouzabFareedalongwiththeCEOforFijiTV,GeoffreySmithmetwiththelandlordsandcametoanamicablesolution.
• TheFijianHoldingsGroupofcompaniesannouncesanincentivesystemwherebymonetaryprizeswillbegiventoGold,SilverandBronzemedalwinners(bothasteamsandasindividuals)atthisyears’OlympicGamesinRiodeJanerioaswellasthechancetoworkwithintheGroup.
4 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
FInanCIal HIgHlIgHtsUsUtU nI raWa Ka
FinanceTabananiSoli
LavoDinau20%
TourismTabanani
SaraVanua22%
MediaTabanani
VakauiTukutuku
13%
PropertiesTabananiVoliValeniCakacaka
10%
ManufacturingTabanaNiBuli
Yaya
8%
Building&Construction
TabanaNiTaraVale8%
RetailingTabanaNi
Veivoli
19%
OperatingRevenue($M)Lavoerawaenavolivolitaki($Milioni)
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
300
250
200
150
100
50
0
ProfitBeforeTax($M)Tubunikabaniniseberanimusukinaivakacavacavakeinaveikaseganinamaki($Milioni)
GroupGroup FijianHoldingsLimitedFijianHoldingsLimited
60
50
40
30
20
10
0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
TotalGroupAssetsandShareholdersFunds($M)YauTudeikeinaNodraiWasewasenaTaukeniSea($Milioni)
TotalAssetsYauTudei
ShareholdersFundsNodraiwasewasenataukenisea
500450400350300250200150100
500
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Tourism 55,500,000 22%Finance 53,050,000 20%Retailing 48,703,000 19%Media 33,187,000 13%Building&Construction 21,369,000 8%Manufacturing 19,885,000 8%Properties 25,770,000 10%
257,464,000 100%
FHLInvestmentPortfoliobySectorVeitabananiVakatubuilavoneiFHL
5FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
FInanCIal HIgHlIgHtsUsUtU nI raWa Ka
DividendPayments($M)Tubunilavoewasei($Milioni)
FHLReturnonInvestment(%-atcost)Tubunilavoerawa
FHLEarningsperShare(cents)
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
876543210
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
504540353025201510
50
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
140120100
80604020
0
YEAREND30JUNEHOLDINGCOMPANY GROUP
2016 2015 Change% 2016 2015-Restated Change%
OperatingResults
OperatingRevenue($,‘000) 26,078 26,465 -1% 293,552 256,099 15%
EBITDA($,‘000) 22,899 15,777 45% 53,998 40,626 33%
EBIT($,‘000) 22,773 15,593 46% 43,104 29,948 44%
NPBT($,‘000) 20,442 12,328 66% 32,853 23,904 37%
NPAT($,‘000) 20,851 12,921 61% 25,880 18,485 40%
OperatingRatios
EBIT/TotalRevenue[%] 87% 59% 28% 15% 12% 3.0%
EBITDA/TotalRevenue[%] 88% 60% 28% 18% 16% 2.5%
NPAT/TotalRevenue[%] 80% 49% 31% 9% 7% 1.6%
FinancialPosition
TotalAssets($,‘000) 284,169 257,896 10% 475,046 459,289 3%
TotalLiabilities($,‘000) 60,073 68,143 -12% 257,113 255,155 1%
FinancialPositionRatios
Gearing[%] 21% 26% -5% 54% 56% -1%
NetDebttoEquity[%] 27% 36% -9% 118% 125% -7%
EBITinterestcover[times] 11.8 5.8 103% 2.5 2.6 -4%
CashFlows
Netcashfromoperating($,‘000) 19,614 13,376 47% 52,745 21,740 143%
PurchasesofInvestments($,‘000) - 3,764 -100% 100 3,944 -97%
Shares
Earningspershare(EPS)[CENTS] 68 42 61% 45 35 29%
Dividendspershare[CENTS] 23 22 5% 23 22 5%
NetTangibleAssetpershare 7.36 6.23 18% 5.11 4.64 10%
KeyMeasures
ReturnonNetAssets[%] 9.3% 6.8% 2.5% 11.9% 9.1% 2.8%
6 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
FIJIan HoldIngs lIMIted top 30 sHareHoldersnaI MataI nI 30 nI taUKeI nI sea leVU taUdUa
ShareholderName No.OfShares %Holdings
I-TaukeiLandTrustBoard 859,666 8.21
I-TaukeiAffairsBoard 760,977 7.27
CiciaPlantationCo-operativeSocietyLtd. 400,000 3.82
CakaudroveProvincialHoldingsCompanyLtd. 400,000 3.82
RatuSirKMaraEducationTrustFund 300,000 2.87
TailevuDairyFarmersCo-OperativeAssociationLtd. 255,602 2.44
MacuataProvincialCouncil 203,614 1.95
MavanaInvestmentLtd 200,000 1.91
MualevuTikinaHoldingsLtd 200,000 1.91
VanuaKoLovoniInvestmentLtd 179,805 1.72
DuavataHoldingsLtd 141,000 1.35
BuaProvincialCouncil 137,102 1.31
MualevuKoroInvestmentLtd 108,754 1.04
MoalaTikinaCouncil 101,005 0.97
DogotukiTikinaCouncil 100,000 0.96
MuniaHoldingsLtd 100,000 0.96
NabukebukeHoldingsLtd 100,000 0.96
LomatiVillageInvestmentLtd 100,000 0.96
NaqaraniHoldingsLtd 100,000 0.96
NasoqaoFarmingEnterprisesLtd 100,000 0.96
KiriVerewaleRichmond 100,000 0.96
Sakiusa&AnaseiniRaivoce 100,000 0.96
VatuleleIslandHoldingsLtd 97,990 0.94
SeruaProvincialCouncil 97,102 0.93
RewaProvincialCouncil 93,601 0.89
VukiceaInvestmentLtd 90,000 0.86
KadavuProvincialCouncil 89,791 0.86
MataqaliNatabutale 84,743 0.81
TukulaHoldingsLtd 80,000 0.76
Isireli&SaloteDugu 70,004 0.67
LauProvincialCouncil 67,501 0.65
Nadroga/NavosaProvincialCouncil 67,500 0.65
Inoke&TikoFatafehiLuveni 67,263 0.64
Baravi&AssosciatesLtd 66,767 0.64
MaricaKoroitanoa 66,127 0.63
WalenaWhite 60,844 0.58
MataqaliNacokocokobalavu 60,603 0.58
RaProvincilCouncil 58,800 0.56
LomaivitiProvincilCouncil 55,100 0.53
TOTAL 6, 321, 258 60.45
7FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Corporate goVernanCe stateMenttUKUtUKU nI Kena CICIVaKI na KaBanI
Principle 1
Establish clear Responsibilities for Board Oversight
TheFHLBoardisresponsiblefortheoverallcorporategovernanceoftheCompany.TheBoardChartersetsoutthefollowingobjectivesoftheBoard:
• To provide strategic guidance for the Company and effectiveoversightofmanagement.
• TooptimiseCompanyperformanceandshareholdervaluewithinaframeworkofappropriateriskassessmentandmanagement.
• To recognise the Company’s legal and other obligations to alllegitimatestakeholders.
TheBoardCharterspecifiestheBoard’sresponsibilitiestowardstheachievementoftheseobjectivesasbeing:
• OversightoftheCompany,includingitscontrolandaccountabilitysystems.
• AppointmentandremovaloftheGroupChiefExecutiveOfficerinlinewithCompanyArticlesandMemorandumofAssociationandapprovinghis/hertermsofengagement.
• RatifyingtheappointmentofmembersofFHL’sSeniorManagementTeam,approvingoftheirtermsofengagement.
• Providinginputintothefinalapprovalofthecorporatestrategyandperformanceobjectives,andmonitoringperformanceagainstthoseplans.
• Reviewing, ratifyingandmonitoring systemsof riskmanagementandinternalcontrol,codesofconductandlegalcompliances.
Fijian Holdings Limited supports the Reserve Bank of Fiji’s Corporate Governance Code for Capital Markets. We are committed to delivering the best practice in corporate
governance and transparency in reporting. During the reporting period, Fijian Holdings Limited has been compliant with all RBF guidelines.
• ProtectingtheCompany’sfinancialpositionanditsabilitytomeetdebtsandotherobligationsastheyfalldue.
• Ensuring that the Company’s accounts comply with the relevantaccountingstandardsandpresentatrueandfairview.
The Board has delegated the responsibility of operating andadministering to the Group Chief Executive Officer, who isaccountabletotheBoardfortheperformanceoftheseduties.
Principle 2
Constitute an Effective Board
FHL’sMemorandum and Articles specifies the number of Directorsmay be not less than the number required by the Companies Act(currently three), nor more than nine (or such number within therangeastheBoardmaydeterminefromtimetotime).
TheBoardcurrentlycomprisesofeightDirectors.
IowaneNaiveli Appointed2011(Chairman)SakiusaRaivoce Appointed2013IsikeliTuituku Appointed2014UlaiasiTaoi Appointed2014ViliameCegumalua Appointed2014ViliameNaupoto Appointed2015RatuAiseaWakaVosailagi Appointed2015JohnO’Connor Appointed2015
8 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Director’s Independence
As required under the Board Charter, the Board comprises ofa majority of independent non-executive Directors. As per theCompany’sArticle78,sixofthenineboarddirectorsareappointedbytheMinisterforiTaukeiAffairsinconsultationwiththePrimeMinister.
According to the Charter, a non-executiveDirector is independentas he or she is not a member of management and is free of anybusiness or other relationship that could materially interfere withtheindependentexerciseofhis/herjudgment.AllDirectorshavenosubstantialinterestinthesharesorGroupbusiness.
Board Sub-Committees
The Board carries out a number of its duties and responsibilitiesthroughspecificBoardSub-Committees:
• AuditandRiskCommitteeinclusiveofCompliance• PeopleandLeadershipCommittee• InvestmentandStrategyCommittee• BoardNominationandRemunerationCommittee.
The Charter of each Board Sub-Committee sets out the respectiveduties and responsibilities of that particular Committee. EachCommittee is entitled to the resources and information it requires,includingdirectaccesstoemployeesandadvisers.AllFHLDirectorsareinformedoftheBoardSub-CommitteemeetingsanddeliberationthroughtheCommitteereportsatFHLboardmeetings.
Independent Advice
The Board, an individual Director or a Committee,may engage anindependent external adviser in relation to any Board matter, attheexpenseof theCompany.Before theexternal advice is sought,consentneedstobeobtainedfromtheChairpersonoftheBoard.
Directors’ Training
DirectorInductionisaformalprocesswherebytheGroupCEOandthemanagementteampresentacomprehensivecorporateprofileoftheorganization. It isnecessaryforall incomingdirectorstoattendtheinductionprogramme.Inaddition,asandwhenrequired,workshopsareorganizedwithexternalconsultants.
Principle 3
Appointment of a Group Chief Executive Officer
Directors are expected to exercise duediligence in appointing theGroup Chief Executive Officer or the officer-in-charge. This role isvestedintheofficeoftheBoardofFHL.ThequalificationandcriteriaoftheGroupCEOshallbeatthediscretionofthePeopleandLeadershipCommittee in consultation with the Board. Total remunerationpackagefortheGroupCEOshouldbethefinaldecisionoftheBoard.The remuneration has been structured to reward corporate andindividualperformances.
Principle 4
Board and Company Secretary
FHL,asapublic listedcompany,hasappointeda suitablyqualifiedand competent board secretary. The Company Secretary is theadministrative linkbetweentheBoardandtheManagementandisresponsible for ensuring compliance to Company activities. In thiscapacity, he/she ensures that the statutory requirements, boardpolicy and procedures are followed and co-ordinates the timelycompletionanddispatchofboardagendaandbriefingmaterial.Thesecretary isresponsibleforensuringthattheBoardhasproperanddetailedminuteswhererecordsonmajordecisionsoftheBoardaremade.Alldirectorshavedirectaccesstothecompanysecretary.Thecompanysecretaryisaccountabletotheboard,throughthechair,onallgovernanceissues.Theappointmentandremovalofthecompanysecretary shouldbeamatter fordecisionby theBoardasawhole.Atpresent, theCompanySecretary forFHL isMsMereoniRasovo -Matavou.
Principle 5
Timely and Balanced Disclosure
FHLcomplieswith itsdisclosureobligationsundertheSPSEListingRules and the Companies Act, and has in place well-developedproceduresfordealingwithcompliance.FHLhasaDisclosurePolicythat sets out the procedures and requirements expected of allemployees of the Company, including Directors, executive officersandseniorexecutives.
Principle 6
Promote Ethical and Responsible Decision Making
FHLrecognisesthatitsreputationisoneofitsvaluableassets,andisfoundedlargelyontheethicalbehaviourofthepeoplewhorepresenttheGroup.TheBoardhas approved aCodeof Conduct that setsouttheprinciplesforethicalbehaviourbyallGrouppersonnel.This ethical framework provides the foundation for maintainingand enhancing FHL’s reputation. FHL’s Code of Conduct thereforecommitsitsDirectors,employees,contractorsandconsultantstonotonlycomplywiththelaw,buttoconductbusinessinaccordancewiththehighestethicalconduct,sowe:
• Conductbusinesswithintegrity,honesty,andfairness;• Value and respect diversity in a workplace in which no one is
discriminated against on the basis of gender, age, race, religion,sexualorientationormaritalstatus;and
• Exercisehighethicalconductinobservingthespiritandletterofourlegalobligations.
AnybreachoftheCodeofConductisaseriousmatterthatmaygiverisetodisciplinaryaction,includingdismissalandlegalaction.
InaccordancewithFHL’sWhistle-blowerPolicy,employeeswhoareawareofanymatterorbehaviourthatmaycontravenetheCodeofconduct,FHL’spoliciesorthelawareencouragedto:
• Takethematterupwiththeirimmediatesupervisorormanager;• ReportthemattertotheirHumanResourcesManager,amoresenior
managerortheCompanySecretary
9FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
TheWhistle-blowerPolicyprovidesthatallreportswillbethoroughlyinvestigated,andthat,whereapplicable,feedbackontheoutcomeoftheinvestigationwillbeprovidedtothepersonmakingthereport.Any person making the report will not be discriminated againstor disadvantaged in their employment with the Group simply formakingthereport.
Business Dealings with the Company and Conflicts of Interest
TheCompanyhasproceduresinplaceforthereportingofanymatterwhichmaygiverisetoaconflictbetweenthe interestofaDirectorand those of the Company. Employees are required annually todisclosearrangementswhereapotentialconflictmayarise.Aregisterof interest so declared is maintained by the Company Secretary.Whenapotential conflictof interestarises,employeesmustadvisetheCompanySecretaryandtheirimmediatesupervisor.Adecisionisthenmadeastowhetherthereportedactivitiesmaycontinue.WhentheBoardisconsideringamatterinwhichaDirectorhasamaterialpersonal interest–thesaidDirectormaynotbepresentduringtheBoardorBoardSub-Committeediscussionsnorvoteon thematterunlesspermittedunderspecificcircumstancesinaccordancewiththeCompaniesAct2015.
Political Donations
FHLalsohasinplaceapolicyprohibitingdonations,whetherincashorkind,toanypoliticalpartyororganization,politicianorcandidateforpublicofficeinanycountryinwhichitoperates.
External Directorships
Key executives are permitted to hold limited non-executivedirectorship of an external public company, depending on theparticular circumstances, but only on the recommendation of theGroupChiefExecutiveOfficer,forapprovalbytheBoard.TheGroupCEO is permitted to hold a limited non-executive directorship ofan external public Companywith the approval of the Board. SuchapublicCompanymustnotbea competitor, supplieror customerof theGroup,norcanthedirectorshipcreateanactualorpotentialconflictofinterestwiththeGroup’sbusinessactivities.
Corporate Sustainability
FHLadoptsan integratedapproach tocorporate sustainability.TheGroupiscommittedtocontinuouslyimprovingitsbusinesspracticesto maximise positive andminimise negative social, environmentaland economic impacts. This enhances employee engagement andretention,supportscorporatereputation,managesriskandprotectsthesociallicensetooperate.
Principle 7
Register of Interest
The Board has ensured that all conflicts of interest are disclosedand formally recorded. Conflicts of interest arise in a related partytransaction,which isa transferof resourcesorobligationsbetweenrelated parties, regardless of whether a price is charged. Partiesareconsidered tobe related ifonepartyhas theability toexercisesignificant influence over the other party in making financial oroperatingdecisions.
Indeclaring a conflict of interest, theDirector should abstain fromvoting or participating in the decision-making on that matter. InadditiontoDirectors,membersoftheseniormanagementteamarerequiredtodeclareallconflictsofinterest.
Principle 8
Respect the Rights of the Shareholder
TheShareholderCommunicationPolicyoftheCompanyencouragesand promotes effective communication with shareholders andeffectiveparticipationatGeneralMeetings.FHLfrequentlyexamineshowbesttotakeadvantageoftechnologytoenhanceshareholderscommunications and how to use General Meetings to enhance atwo-way communication. FHL maintains an up-to-date website tocomplimenttheofficialreleaseofinformationtothemarket.
The external auditor attends the Annual General Meeting and isavailabletoanswershareholdersquestionsabout:
• TheconductofAudit;• Thepreparationandcontentoftheauditor’sreport;• TheaccountingpoliciesadoptedbytheCompanyinrelationtothe
preparationofthefinancialstatementsand• Theindependenceoftheauditorinrelationtotheconductofthe
audit.
FHLalsoconductsahalf-daytrainingsessionforallshareholdersonthe day of the Annual General Meeting. This training programmeis conducted by internal and external experts on various businesstopics;includingtheperformanceofallFHLsubsidiariesandrelatedinvestments.
Principle 9
Accountability and Audit
The Audit Sub-Committee consists of non-executive Directors.TheCommitteemeetsasrequired,normallyat leastfourtimesperyear.TheChairmanofFHLisnotamemberoftheAuditCommittee.TheCommittee’s role is toassist theBoard to independentlyverifyandsafeguard the integrity of the Company’s financial reporting andinternalcontrolprocesses.TheCommittee’sprimary responsibilitiesareto:
• Assess whether the Company’s external reporting is legallycompliant,consistentwithCommitteemembersinformationandknowledge,andsuitableforshareholder’sneeds;
• Assess themanagement processes and internal control systemssupportingexternalreporting;
• Liaisewith the external auditors and ensure the annual statutoryauditandhalfyearreviewareconductedinaneffectivemanner;
• Make recommendations for the appointment or removal of theexternalandinternalauditors;
• Onanannualbasis,assesstheperformanceandindependenceoftheexternalandinternalauditors;and
• Monitortheco-ordinationoftheinternalandexternalaudits.
The lead external audit partner is required to rotate off the auditafteramaximumoffiveyears.The InternalAudit functionshallnotbeperformedby theexternal auditorsof the company. TheAuditCommittee has unlimited access to both internal and externalauditors.
10 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Principle 10
Recognise and Manage Risk
The Board has approved a Risk and Assurance Framework andsupporting processes to oversee and manage risk. FHL Risk andAssurance Framework is founded on a clear risk managementphilosophyandaccountabilitiesdrivenbygovernanceandoperation.TheFrameworkdescribesFHL’s riskandassurancesystemsand thesupportingmanagementdisciplinesinplacetobringthissystemtolife. It explains the philosophy and structure required to recognisebusiness improvement opportunities through themanagement ofrisk.
TheFrameworkisaction-orientedandrequirespeopletofocusontherightthings,prepareactiveactionplansandtobeheldaccountablefortheiractions.TheFrameworkacknowledgesthatallemployeeshavearoleinmanagingriskandinparticular,theyareencouragedtoreportincidents,hazardsandriskwithoutfear.AtFHL,themanagementofriskistreatedasanintegratedingredientinthewayemployeeswork.
Internalauditmonitors the internalcontrol frameworkGroupwide.TheAudit Sub-Committee approves the annual internal audit planwith respect to operational aspects, reviews reports and agreedactions,andensuresplannedauditactivitiesarealignedtobusinessrisks.
Principle 11
Evaluation of Board Performance
Evaluation on Board Performance ensures that individual directorsandtheBoardasawholeworkefficientlyandeffectivelyinachievingtheirfunctions.Eachyear,theBoardundertakesthefollowingreviews:
• TheChairpersonmeetsnon-executivedirectorsseparatelytodiscussindividualperformanceandideasforimprovement.
• TheperformanceoftheChairpersonisreviewedandassessedeachyearbytheotherDirectors.
11FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
• TheBoardasawholewilldiscussandanalyseitsownperformanceduringtheyearincludingsuggestionsforchangeorimprovementinachievingabetterbalancebetweenmonitoringpastperformanceanddebatingthefuturedirectionsofthebusiness.
Principle 12
Securities Trading Policy
TheCompanyhasestablishedapolicythatimposescertainrestrictionsondirectors,seniormanagementandotheremployeestradingintheCompany’ssecurities.Thepolicyhasbeenadoptedtopreventtradingin breach of the insider trading rules in particular,whenCompanypersonnelareinpossessionofprice-sensitiveinformation.
DirectorsandSeniorOfficersarenotpermittedtotakeadvantageofanyinformationthatisnotavailabletoshareholdersandthemarket.Thereisnoconstrainingtimelimitforthepurchaseofshares.AllsharedealingsbytheseofficersaretobeadvisedtotheCompanySecretary.
Principle 13
Insolvency- Directors Duties
Generally,Director’sprimarydutyistotheshareholders.However,iftheCompanyisinsolvent,orthereisarealriskofinsolvency,Directorsduties expand to include creditors (including employees withoutstandingentitlements)suchas:
• ThedutytoexercisepowersanddutieswiththecareanddiligencethatareasonablepersonwouldhavewhichincludestakingstepstoensurethefinancialpositionoftheCompanyisproperlyinformedandensuringtheCompanydoesn’ttradeifitisinsolvent;
• Theduty to exercisepowers andduties ingood faith in thebestinterestsoftheCompanyandforaproperpurpose;
• The duty not to improperly use position to gain a personaladvantage,ortocausedetrimenttotheCompany.
12 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Corporate soCIal responsIBIlItY tUKUtUKU nI QaraVI nI BUla raraBa
AsourCompanyand shareholdersexpectationsevolve,weatFijianHoldingsLimited (FHL)continue todevelopand refineourapproaches tomanagingkeyenvironmental, socialandgovernanceissues.
FHLintegratescorporatesocialresponsibility(CSR)intoallitsbusinessactivitieswiththebeliefthatsuccessismeasuredbymorethanjustfinancial results. It is customer satisfaction, employeeengagement,stringentgovernancepracticesandsupportforshareholdersandthecommunitiestheCompanyserves.
This year, FHL participated in a number of events that add to theenhancementofthecommunitywithintheFHLGroup.
Communication with Stakeholders
We believe that the success of FHL is dependent on our abilityto build on trusted relationships with our stakeholders whichinclude customers, Government, communities and employees.Wecontinuouslystrive toensure that through fair, transparentandappropriatemethods,we release informationwhichwillhelp themmakesoundinvestmentdecisions.
Shareholders WorkshopAtFHL,weaim tobuild shareholders confidenceandexpectationsintheirinvestmentsthroughadedicatedteamfocusedatimprovingrelationshipwithourshareholders.
For the past nine years, FHL has been holding interactive half dayworkshops.Theworkshopallows shareholders to interactwithFHLand learn more about their investments, legal requirements for
business, understanding theeconomyandupdateson subsidiariesperformances.
Information DisclosureAsa listed company, FHL isguidedby thedisclosure requirementsof the South Pacific Stock Exchange which allows us to releaseinformation that promotes better shareholder understanding ofmanagementpoliciesandbusinessactivities.
Community Involvement
FHL is committed to strengthening the communities in which weoperate and we continuously aim to make our economy a betterplacetoliveandworkin.Ourapproachmainlyinvolvessupportingnonprofitableorganizations suchas theSalvationArmyandotherprojectswhicharenotlimitedtocharitableworkonly.
• TCWinstonRehabilitationdonation TheFHLGroupcontributed$10,000towardsCycloneReliefandin
additiontothis,BasicIndustriesdonated10,000concreteblocks,50tonsof cementwerealsocontributedbyPacificCement, FijiTVcontributed$20,000worthofadvertisementslotstotelecastannouncementsfromDISMACandRedCross.FHLPropertiesandFundManagement provided 100 cartons of dry rations whilstStandard Concrete donated approximately $10, 400 worth ofdry food rations to affected villagers inWailotua, Lodoni andDawasamu.
13FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Apartfromtheseefforts,FHLstaffheldaclothesdrivewiththeproceedsdonatedtotheSalvationArmyandboundforTaveuniand Vanua Levu, FHL owned RB Patel provided dry rations inconjunctionwith SalvationArmy and the Rotary Club of Suva.Blue Lagoon Cruises through its flagship program “VinakaFiji” brought in volunteers to assist thosebadly affected in thecommunitiestheyoperatein.
• NationalBloodDrive This year saw Fijian Holdings take part once again in the life
savinginitiativeofdonatingblood.TheeventheldinpartnershipwiththeNationalBloodServices,sawstafffromtheFHLGroupand Directors donate. FHL is always keen to host the BloodDrivedonationas it is viewedas an importantway to supportalifesavingcauseandensurethatourfamilieshaveaccesstoitwhenandwhereitisneededmost.
• StationeryDrive FHLstaffcollectedstationeryforthe43studentsofGospelSchool
ofthedeaf.Theschoolcatersforstudentsfromaroundtheregionandouterlyingislands.Headmistress,Mrs.NirmalMudaliarsaystheschoolfocusesprovidingeducationandsupportforthedeafintheSouthPacificwiththeyoungeststudentisa3yearoldboyfromLau.FHLstaffdonatedbasicstationerytotheschoolwhichwillbeusedbythestudents.
• FHLtoRewardWinners As corporate citizens of Fiji, FHL has also announced a reward
schemeformedalwinnersinTeamFijiwhotakepartintheRioOlympics2016.FHLwillbeofferingacashrewardof$2,500foreachplayerintheteamwhichwinsaGoldmedalandUnitsworth$500.
EnvironmentalSustainability
• CleanUpCampaign FHL organized the event which was held in partnership with
the Suva City Council and close to 100 staff from the varioussubsidiaries turned up to clean the Suva City Foreshore. The
stretchoflandstartingfromtheSuvaBowlingClubtoMySuvaParkcoveredover4.7kmandtheearlymorningeventsawstaffalongwithfamilypickupdebrisbothonthewalkwayandalongthebeachfront.FHLispassionateaboutimprovingourrelationswithstakeholdersandthecommunityweoperatein.
Employee Involvement
TheFHLGroup isanemployerofmore than1,600employees.Ouremployeesareourmost valuedasset andweactively support andreward their efforts to pursue their passions in the workplace, athome and in the community. We know that each person’s ideas,personalandprofessionalwell-being,andenthusiastic involvementareessentialtothecontinuedsuccessoftheGroup.
• HealthandWellness The Health and wellbeing of our employees is essential to
achieving the desired productivity that FHL requires. As such,thisyearstafftookpartinafunrunorganizedinSuvawhichalsoincluded a freeHealth Checkup. Staff also tookpart in a teambuilding exercise and trekked up the highest point in Suva –MountKorobaba.Theseactivitiesensurethatthestaffcontinuetoremainphysicallycompatiblewiththeirdailytask.
Social Activities Everyyear, theFHLGrouphostsanannual sportsdaywith the
main objective of promoting team work and creating a jovialenvironment. This event sees staff and family from the Westand North combine to enjoy a fun filled day of sports. This isfollowedbyanAwardsnightwhichrecognizestheachievementsmadeby theFHLGroupduring theyearandoutstanding staffare rewarded for theirvaluablecontribution towards theyear’sresults.
Inconclusion,ourcorporatesocialresponsibilityprogrammesplayamajorroleinthenurturingofpositiveenvironmentwearebuildingforourshareholders,stakeholders,employeesandthecommunityatlarge.
14 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
The Investment and Strategy Sub-Committee is responsible for assisting the Board in fulfilling its oversight responsibility for the investment and strategic goals of the Company. It is also responsible for formulating the overall investment policies, and establishing investment guidelines in furtherance of those policies. The Sub-Committee monitors the management of the portfolio for compliance with the investment policies and guidelines and for meeting performance objectives over time.
Themembers of the Investment and Strategy Sub-Committee areappointedbytheBoardofDirectorsfromamongsttheDirectorsoftheCompanyandconsistofthreeboardmembersofwhichallarenewlyappointedcommitteemembersandDirectors.Inadditiontothesemembers, GroupCEO andmembers of SeniorManagementTeamattendstheSub-Committeemeetings.
MeetingoftheInvestmentandStrategySub-Committeeareheldatleastonceayear.Intheyearunderreview,theSub-Committeemetfourtimes.
Duringtheyear,theSub-Committeeapprovedthedivestmentof2companies–MediaNiuguniLimitedtoTelikomPNGaswellas thedivestmentofBasicIndustries(PNG)Ltd.Thefinancialyear2016alsosawthesaleofSkyPacificwhichwasapartofFijiTVLtd.
At themoment, theSub-Committee is in thepreliminarystagesofrestructuring Merchant Finance Ltd and Basic Industries (Fiji) Ltd,lookingattheopportunityofmakingthempubliclistedCompanies.Anumbersofinvestmentopportunitiesarestillbeingmonitored.
As part of fulfilling their duties the Investment and Strategy Sub-CommitteereceivedreportsandhelddiscussionswithManagementontheproposedandcurrentinvestments.TheSub-Committeehasalsoreviewedproposalsparalleltoits investmentpolicyguidelinesandstrategicframework.Theseincluded:• Currentinvestmentprojects• Longterminvestmentprojects• Declinedprojects• Proposedacquisitions• DiscussiononthestrategicwayforwardfortheGroupinterms
ofacquisitions,divestmentandmergers.
COMMITTEE MEMBERS
Name Capacity StatusNoof
MeetingsEntitledtoAttend
NoofMeetingsAttended
Mr.ViliameNaupoto Chairman Appointed(10/8/2015) 4 2
Mr.IowaneNaiveli Member Existing 4 3
Mr.IsikeliTuituku Member Existing 4 4
Mr.SurendraPatel Member Appointed(10/8/2015) 4 1
InVestMent & strategY sUB-CoMMIteeKoMItI Ka QaraVa na VaKatUBUIlaVo
15FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
The Audit and Risk Sub-Committee is responsible for ensuring that the company’s internal controls are properly functioning as well as managing the external audit process of the company. The Sub-Committee bases most of its work on the internal audit reports issued by the Internal Audit Department of FHL and management letters (client service report) issued by the External Auditors.
Themembersof theAuditandRiskSub-Committeeareappointedby the FHL Board of Directors from amongst the Directors of theCompanyandconsistoftwoboardmembersofwhichallareexistingcommitteemembersandareDirectors.Inadditiontothesemembers,the Group CEO and members of the Senior Management Team,attendthecommitteemeetingstoensurethatGroupcompaniesaremaintainingpropercontrolandmanagingriskappropriately.MeetingsoftheAuditandRiskSub-Committeeareheldonceeveryquarter, however, frequent meetings may be called if necessary.Duringthe2016-financialyear,theauditcommitteemetfourtimes.
During the year, the Audit and Risk Sub-Committee receivedreportsfromInternal&ExternalAuditorsandhelddiscussionswithManagement and the Auditors involved. The Sub-Committee hasalsoreviewed:• The reliability and integrity of financial and operating
information;• The system established to ensure compliance with those
policies, plans, procedures, laws and regulations which couldhaveasignificantimpactonoperationsandreports,andshoulddeterminewhethertheorganizationisincompliance;
• Themeansofsafeguardingassetsandasappropriate,verifyingtheexistenceofsuchassets;
• The projects or programs to ascertain whether results areconsistentwithestablishedobjectivesandgoals,andwhethertheprojectsorprogramsarebeingcarriedoutasplanned;
• Reportingofanymaterialsmisuseoffunds,misappropriationoractsoffraud.
aUdIt & rIsK sUB-CoMMItteeKoMItI Ka QaraVa na rIrIKo
COMMITTEE MEMBERS
Name Capacity Status NoofMeetingsEntitled
toAttend
No.ofMeetingsAttended
Mr.UlaiasiTaoi Chairman Existing 4 4
Mr.ViliameCegumalua Member Existing 4 4
Mr.IsikeliTuituku Member Appointed(10/8/15) 4 2
Mrs.FayYee Member Appointed(10/8/15) 4 2
16 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
The Board Nomination & Remuneration Sub-Committee is to assist the Board in fulfilling its duties by providing advice, independent and objective review to the Board on matters concerning nomination and remuneration related issues within the FHL Group.
Theprimary function of the BoardNomination and RemunerationSub-CommitteeistoadvisetheBoardonmattersregarding:
• The composition and nomination of the FHL Board and FHLGroupSubsidiaryBoard;
• TheremunerationoftheFHLBoardandFHLGroupSubsidiaryBoard;
• Assessment of the necessary and desirable competency ofBoardmembers;
• Recommendations for the appointment and evaluation ofDirectors.
BoardNomination&Remuneration Sub-Committeemeets at leasttwice a year andmore frequently as required. In the year underreviewthecommitteemetthreetimes.
Duringtheyear,thecommitteeisdelegatedtoreviewallnominationmattersof theFHLBoardandBoardappointmentswithin theFHLGroup.Thisincludes:
• Process for the nomination and selection of non-executivedirectorstotheFHLSubsidiaryBoard:
• SuccessionplansforFHLGroupnon-executiveandindependentdirectors;
• InductionprogramsforFHLGroupnon-executiveandindependentdirectors;
• Assess the requirement for non-executive and independentdirectorsandsetatransparentprocesstoreviewwhethertheyaremeetingthoserequirements;
• EstablishandmonitorstrategiesongenderdiversityfortheFHLBoard;
• Achievement against gender diversity objectives includingrepresentation of women at FHL and Group subsidiarycompanies;
• Assess and approve the Directors Remuneration includingdirectors fee, sitting allowance and other related benefits/allowance to the FHL Group non-executive and independentdirectors;
• Otherrelevantmattersidentifiedfromtimetotime,orrequestedbytheFHLBoard
Board noMInatIon & reMUneratIon sUB-CoMMItteeKoMItI Ka QaraVa na VeIdIgItaKI KeI naI saU nI daIreKIta
COMMITTEE MEMBERS
Name Capacity Status NoofMeetingsEntitled
toAttend
NoofMeetingsAttended
Mr.EmitaiBoladuadua Chairman Existing 3 3
Mr.IowaneNaiveli Member Existing 3 2
Mr.RobinYarrow Member Appointed(10/8/15) 3 2
Mr.ViliameNaupoto Member Appointed(10/8/15) 3 1
17FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
The role of the Sub-Committee is to advise remuneration and issues relevant to remuneration policies and practices so as to assist the Board to independently ensure that the Company/Group establishes appropriate Human Resources strategies and policies consistence with best practices and business requirements and adopts and complies with remuneration policies that:
• Establishes and implements a human resource strategy toensureappropriatelytalentedandtrainedpeopleareavailabletoachieveourbusinessstrategies.
• Ensures thatproperpoliciesare inplace toprotect thehealthandsafetyoftheemployees.
• Attract,retainandmotivatehighcalibreExecutives,Managementand staff, so as to encourage enhanced performance of theCompany;
• AreconsistentwiththeCompany’sHumanResourceneeds;• Motivatemanagementtopursuealongtermgrowthandsuccess
oftheCompanywithinanappropriatecontrolframework;and• Demonstrate a clear relationship between executive
performanceandremuneration.• Ensures that the Company undertake the appropriate
performance management, succession planning anddevelopmentactivitiesandprogram.
ThecommitteeconsistsofaminimumoftwoDirectorsandtheGroupChiefExecutiveOfficerwiththeChairmanoftheCommitteeselectedbytheFHLSubCommitteeforBoardNomination&Remuneration.
Themeetingsof thecommitteeareheldat least twiceperannumand the committee met five times in the year under review.Representativesofmanagementandotheremployedpersonnelmaybe invitedtoattendmeetings,orspecificpartsofmeetings,at thediscretionoftheCommittee.
Duringtheyear,theCommitteedeliberatedonthefollowingissueswhichwerefurtherrecommendedtothemainBoardforapproval:• TheFHLPerformanceReviewPolicy• ThestafftransferswithintheFHLGroup• OtherrelatedHumanResourcesissues.
COMMITTEE MEMBERS
Name Capacity StatusNoof
MeetingsEntitledtoAttend
NoofMeetingsAttended
Mr.SakiusaRaivoce Chairman Existing 5 5
Mr.JohnO’Connor Member Appointed(10/8/2015) 5 5
Mr.RatuAiseaVosailagi Member Appointed(10/8/2015) 5 5
Mr.NesbittHazelman Member Appointed(10/8/2015) 5 2
people & leadersHIp sUB-CoMMIteeKoMItI Ka QaraVa na taMata CaKaCaKa
18 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Board oF dIreCtorsleWe nI MataBose
COLONEL SAKIUSA RAIVOCE MSD (RETD)Director
IsaSecurityConsultantandaformerSeniorMilitaryOfficerhavingservedat theRepublicof FijiMilitary ForceHeadquarters as a Staff Officer andGovernment House as MilitaryAssistance/ADC to the President oftheRepublicofFiji.ColonelRaivoceservedonUNPeaceKeepingDutiesin the Middle East,(Lebanon, SinaiDesert, Syria, Kuwait and Iraq). HealsoservedasFieldSecurityAdviserin East Timor from September1999 to Dec 2000. He served asDirector for theBritishSecurityFirmGlobal Risks International as itsRepresentative in Fiji from 2003 to2012.HeiscurrentlytheChairmanofFHLPropertiesLimited,FHLPeople&LeadershipSubCommittee,DirectorofBasic Industries Limited (BIL) andmemberofBILAuditCommittee.
RATU AISEA WAKA VOSAILAGIDirector
Is a former Naval Officer and holdsa Bachelor Degree in Engineering(Maritime & Naval Architecture). Heis the Company Secretary and ChiefExecutiveOfficer of Na Hina Limited.He holds directorship positionsfor Fiji Resorts Limited (owners ofYanuca Island Limited, Shangri-La’sFijian Resort & Spa), National FireAuthority,FijiRugbyUnionandVisionInvestmentsLimited.HeisthecurrentChairman of the Nadroga/NavosaProvincial Council, Pacific CementLimited and Director of South SeaCruises.
IOWANE NAIVELIChairman
Is a Chartered Accountant and abusiness consultant by profession.He is the sole partner of I.Naiveli& Company. He holds a Bachelorof Arts Degree in Accounting andwas previously the president ofFiji Institute of Accountants. Mr.Naiveli is the Chairman for FHL, RBPatelGroupLtd,FHLMediaLtdandFHL Retailing Ltd. He is a Boardmember for Fiji Television LimitedandLifeCinema.HeisaformerBoardmember of the Reserve Bank of Fijiand is a member of the AustralianInstituteofDirectors.HeistheformerFinancial Advisor to the iTaukeiAffairsBoardandisaTrusteefortheUnitTrustof Fiji.He is amemberofthe USP Council and Chairman ofits Audit & Risk Committee. He is aformer Chairman and member oftheExternalAuditCommitteeoftheInternational Monetary Fund (IMF),WashingtonDC.
REAR ADMIRAL VILIAME NAUPOTODeputyChairman
Isamilitaryofficerbyprofessionandcurrently the Commander of theRepublic of Fiji Military Forces. Heserved in Government from 2007to 2014 as Director Immigration,Permanent Secretary for Fisheriesand Forests and as Minister forYouth and Sports. He also servedpreviously as Chairman of FijiTradeAnd InvestmentBoard.ChairmanofFiji Pine Group and Board Memberfor Film Fiji. He is currently theChairmanforSouthSeaCruisesandBoardmemberforMerchantFinanceLimited.
19FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
ULAIASI TAOIDirector
Is Managing Director of UTtechSystems Limited and holds aBachelor of Arts Degree from theUniversity of the South Pacific. Heis currently Chairman for FHL FundManagement as well as the FHLAudit and Risk Committee and byappointment is a boardmember ofFiji Television Limited. He serves asDirector of Fiji Indigenous BusinessCouncil and member of AustralianInstitute of Company Directors.He was former board member ofFiji Trade & Investments Board, FijiLabour Advisory Council, FijianEducationBoard,NationalEconomicDevelopmentCouncilandMonitorialCommitteeonAffirmativeProgram.
VILIAME CEGUMALUADirector
Isabusinessmanbyprofessionandholds a BachelorDegree in AppliedScience, Rural Technology andMasters in Business Administration.He iscurrently theChairmanofFHLStockbrokers Limited and BasicIndustriesLimited.HealsoservesasDirectorinPacificCementLimited.HealsoservesasChairmanontheBoardof Cakaudrove Provincial HoldingCompany Limited and Fiji NationalDairy Council. Other DirectorshipsincludeFijiNationalCrop&LivestockCouncil and Fiji Cooperative DairyCompanyLimited.
ISIKELI TUITUKUDirector
Is a businessmanby profession andholds a Bachelor Degree in CivilEngineering. He has more than20 years’ experience in executivemanagement in two multi-nationalcompanies BP and ANZ and hasworked in Australia, New ZealandandPacificforthelast35years.Heiscurrently theChairmanofMerchantFinance Limited and serves as aDirector in Pacific Cement Limitedand in FHL Sub Committee onInvestment & Strategy. Mr. Tuitukuis also a boardmember ofTelecomFiji Limited and board member ofHarvestGroupofCompanies.
JOHN O’CONNORDirector
Is theChief ExecutiveOfficer for FijiRugbyUnion.Previously,hewastheChief Executive Officer for NationalFire Authority, General Manager –HumanResourceswithFijiElectricityandhadheldvarioussenior roles inthe Authority. He holds a Mastersof Business Administration and aMasters of Arts in Governance andLeadershipfromtheUniversityoftheSouthPacific.HehasalsoreceivedanOrder of Merit from the AustralianInstitute of Company Directors anda member of the institute. He alsoservesasadirectorontheFHLBoard,andFHLPropertiesLimited.
20 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
NouzabFareedjoinedFHLin2004andisaChartedAccountant,CharteredCertifiedAccountant(UK),CharteredManagementAccountant(UK),CharteredMarketer(UK)andaFellowofCPA(Australia).
HehasanMBAinBanking&MarketingandaMastersofArtsinInternationalEconomics.HeisaLicensedInvestmentAdvisor(Fiji)andaCertifiedFraudExaminerofUSA.HeisafellowofFinancialServicesAssociationofAustralasia(FINSIA)andalsoaGraduateofAustralianInstituteofCompanyDirectors(GAICD).
FareedisaBoardDirectorforallFHLGroupcompanies.Inaddition,heisalsoaBoardDirectorforMarshInsuranceLtd,GoldenManufacturingLtd,GoodmanFielderInternationalLtdandSouthPacificStockExchange.PriortojoiningFHL,hewastheDirectorBusinessDevelopmentwithMercantileMerchantBankLtdinSriLankaandwasalsoaBoardDirectorforFedEx,NIITandWesternUnioninSriLanka.Hehasmorethan24yearsofCorporateFinanceandInvestmentBankingexperience.
HeisthefoundingPresidentofAustralianInstituteofCompanyDirectors-FijiChapterandalsothecurrentPresidentofFiji–PNGBusinessCouncil.HeisthepastPresidentofFijiInstituteofAccountants(FIA)aswellastheVicePresidentofSuvaChamberofCommerceandindustry.HeisacouncilmemberforCPAFijiBranchandFijiExportCouncil.Inaddition,hesitsonMBAAdvisoryCommitteeofUniversityoftheSouthPacific.
FareedhasreceivedExecutiveTrainingfromHarvardBusinessSchoolUniversityofOxford,AustralianGraduateSchoolofManagement(AGSM),GraduateBusinessSchoolofAuckland,AsianProductivityOrganization(APO)andAssociationofOverseasTechnicalScholarshipofJapan.FareedistheonlyDistinguishedToastmaster(DTM)inSouthPacific.
FHl groUp ManageMent teaMManIdIa lIU nI KaBanI CoKoVata e FHl
NOUzAB FAREEDGROUP CHIEF ExECUTIVE OFFICER
21FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
NAPOLIONI BATIMALAChiefExecutiveOfficer
MerchantFinanceLimited
GEOFFREY SMITHChiefExecutiveOfficerFijiTelevisionLimited
PETER DUNCANChiefExecutiveOfficer
SouthSeaCruisesLimited
ROWENA FONGChiefExecutiveOfficerFHLPropertiesLimited
SOWANI TUIDROLAChiefExecutiveOfficerPacificCementLimited
ELENOA VUNIWAGeneralManager
FHLFundManagementLimited&FHLStockbrokersLimited
DEEPAK RATHODChiefOperatingOfficerRBPatelGroupLimited
MOSESE VOLAVOLAChiefExecutiveOfficerBasicIndustriesLimited
HAMISH MCGUIREGeneralManager
LifeCinemaLimited
FHL GROUP MANAGEMENT TEAMMANIDIA LIU NI KABANI COKOVATA E FHL
22 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
FHL MANAGEMENT TEAMMANIDIA VEILIUTAKI E FHL
NOUzAB FAREEDGroupChiefExecutiveOfficer
ABILASH RAM GroupManagerFinance
&Investment
SALESHNI WARRANManagerInternal
Audit&Risk
CATHERINE GREYManagerHumanResources
MEREONI MATAVOUManagerLegal
&CompanySecretary
ASISH KUMARManagerInformation
Technology
SIMIONE VITIARAIExecutiveAssistant
PARADISE TABUCALACommunicationsOfficer
LAISA LEqEIWAIExecutivePersonalAsisstant
23FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
IOWANE NAIVELICHAIRMAN
CHaIrMan’s reporttUKUtUKU nI lIUlIU nI MataBose
DEAR SHAREHOLDERS,
Firstof all, Iwould like to congratulateourheroic seven teams forwinningthefirstevergoldmedalforthenation.TheyhaveliftedFijitothetopoftheworldastheOlympicchampion.
Secondly, IwouldliketocongratulatetheBoard,Managementandstaffof theGroup for thebest operation result for FijianHoldingsCompanythisyear.Ithasachievedbeyondourexpectation.
This year like the previous years, FHL has faced many challengesin the business environment. What has not changed however, isthe unique ability of the organisation to continue to adapt to anenvironmentthatremainsvolatileandchallengingandrespondinamannerthatreflectsourqualitiesandexperience.
Ihope that the reportwillprovidean in-depth informationon theoperationofFHLandtheGroupcompanies.TheBoardhasperformedwell in ensuring that theplanned strategieswere implemented tomaximiseshareholderreturns.
TheBoard togetherwith theManagementhas stayed focussedonthe operation of the organisation maintaining the values, visionand the mission statement of the company in enhancing iTaukeiinvolvementinbusinessventures.
All our Group companies are competitive and dynamic in theirspecialised field of operation and offer high end service to itscustomerskeepinginmindthedemandofqualityservice.
VEIKEMUNI NA ITAUKEI NI SEA,
Taumadaauviacavutanavakavinavinakaveiiratounanodatoanivalanirakavileyavituenakenarawatimainaisevunimetalikoulaninodavanua.EratousavakarogorogoiVitikinaveiyasaivuravuraniratoujabenienasotasotaniOlympic.
Au via vakavinavinakataka talega na matabose e cake, tamatacakacakakeinakabani cokovataenauasivini rawakā.E sa rawatikinanaveikaesegatūninamaki.
Enayabakiqo,tautauvatakeinaveiyabakisaotiyani,asotavanaFHLevuqanabolebolevakacakacaka.Natikinaeseganisebauveisau;oya,nirawavuanakabanimeleveanadredrekeinabolebole.Qo,edusiatūnaivakaraukeinakilavakacakacakamainaveikabani.
Au vakabauta ni ripote oqo, ena vakarautaka vei kemuni na ivakamacalatitobueveiqaravikinanaFHLkeinakenaveikabani.EsaveiqaravivinakasaranaMataboseenanonaraicamecakacakatakinaituvatuvamerawanirarawatanatubuuasivioiranataukeinisea.
Na matabose kei ira na veiliutaki era raica tiko vakamatau meveiqaravinakabanienakenainaki,narainikabanikeinaveikaeratū me vaqaqacotaki kina na nodra vakaitavi na kawa iTaukei enavuravuranibisinisi.
Oirananodakabanieraveiqativinakatiko,karasasagamerakenadauenaivolieravakarautakakasolianaveiqaraviuasividuaduaveiiranalewenivanua.
NA I LAvo BuLA NI kABANI CokovATA E TuBu TIkoGA
ENA 7 NA pACEDE NI vAkATAuvATANI ENA 2015 NI I LAvo BuLA
E $218 NA MILIoNI.
24 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
CHAIRMAN’S REPORTTUKUTUKU NI LIULIU NI MATABOSE
ThedrasticeffectsofCycloneWinstondidnotdeterthegroupfromregroupingandgettingbacktobusinesstodeliverwhatitdoesbest.Thegroupalsodonatedmorethan100,000incashandkindtowardsthereliefeffortsofthedisasteraspartofitssocialresponsibilityandbeingagoodcorporatecitizen.
With the recent developments and Governments focus oninfrastructure improvement throughout Fiji has given the muchneededmultiplier effect to the economy as a whole and the FHLGroup has benefited significantly on this mostly through thesubsidiarycompanies;BasicIndustriesandPacificCement.
FINANCIAL REVIEW
FHL has successfully completed another exciting year withremarkableperformancereflectingtheteamworkanddedicationoftheFHLfamily.
TotalRevenuefortheGroupwasupby14%comparedto lastyearfinishingat$298m.NetProfitAftertaxalso increasedasaresultofincreasedsalefinishingtheyearat$23mcomparedto$17min2015.
Therewassubstantialgrowthof61%inprofitaftertaxfortheholdingcompanywhiletheGroupprofitsgrewby29%.
ThemajorcontributorstotherevenuewereRBPatel,MFL,BIL,PCLandSSC.ThelargermargincontributorswereRBPatel,FHLP,andBIL.FHL Group and the holding company embraces a very strongfinancial position recording total assets of $284m for the holdingcompanywhiletheGrouprecordedtotalassetsof$475mcomparedto$459min2015.
The equity holdings of the FHL Group continues to grow withincreaseof7%comparedto2015finishingat$218m.Thisishighlyreflectiveof thepositiveperformanceof thesubsidiarycompaniestogetherwith theperformanceofminor investmentandassociatecompanies.
DIVIDEND
Theimprovedperformanceinthecurrentyearandtheconsiderableachievement from the operation in previous years has seen FHLincreaseitsdividendpayouttoshareholdersfrom21centsin2014to22centsin2015andfurtherincreaseby1centfinishingFY16with23cents/share.TheBoardandtheManagementultimatedutylieswiththeshareholdershencetheresultsofthehighoperationalefficiencyandtheincreasedmarginshastobereflectedinthedividendpayouttotheownersofthecompany.
FHLasaGrouphaspaidapproximately$24milliontoGovernmentintheformoftaxeswhichequatestoanestimate$15,000percapitaoverastaffrollof1,600.
ThecompetitivenatureofFHLhasbeenlucrativeinthestockmarketevident by the ever increasing demand for its shares in the stockmarket.ThepriceofFHLshareatthetimeofthisreportwasrecordedat$4.08.
CORPORATE GOVERNANCE
The introduction of the new Companies Act 2015 has put inmore responsibilities on the directors to be accountable to theshareholders at all times.The act comeswith heavypenalties anddisclosurerequirementoftheDirectors.
NavakacacanicagilabaoWinstoneseganilokuyarakinananodratuvatuva kā vakavinaka na veikabani ka vakuria na veiqaravi enaveikaerakenadaukina.Easoliatalegavakailolomanakabanierautatokaesivianaduanadraunaudolunadolanaiwiliwilinikeceniveikavakailavokeinaiyayaniveivukekinalolomanicagilabamenonacauveiiraeravakaleqaimetikininonaveiqaraviraraba.
Naraivounimatanitumevakadaumakatakanaveivakatoroicaketaki,qoesavukeasaravakalevunabulavakailavoninodavanuaqaikenaikurini tokonavakalevunanodrauveiqaravieruananodatabanaoya;naBasicIndustrieskeinaPacificCement.
VEIKA VAKA I LAVO
EsamaivakacavaratalenaFHLeduanayabakilagilagivakailavokatukunatūnagugumatuaniveiqaravi,nalomavatakeinanodrayalodinanalewenivuvaleenaFHL.
Nalevuniyauerawatanakabanicokovatae$298namilioniqoetubuena14%nivakatauvatanienayabakisaoti.Natubu(nilavakiotinavakaicavacava)eyacovasarana$23namilioninivakatauvatanikei17namilionienayabaki2015.
E61napacedenatubu(nilavakiotinaivakacavacava)enaveikabanietaukenanaFHLkatosocakenatubuena29napacedeenakabanicokovata.NalevuniveikavakailavoerawatievakaitavimaikinaoRBPatel,MFL,BIL,PCLkeinaSSC.QoecauvakalevumaikinaoRBPatel,FHLPkeiBIL.
NakabanicokovatanaFHLkeinaveikabanietaukenaevakadeitakatokananonarawatikoyavakailavoni$284namilionierawatamainaveikabanietaukenaka$475namilionimainakabanicokovatanivakatauvatanikei$459namilionienayabaki2015.
Na i lavo bula ni kabani cokovata e tubu tikoga ena 7 na pacedenivakatauvataniena2015ni i lavobulae$218namilioni.Qo,esatukuna tūnagugumatuani veiqaravimainaveikabani vakarurugienaFHL,iranaveikabanilalaikeinakabaniveiwekani.
TUBU VAKA I LAVO
Nakenavinakacakemainarawakāenayabakiqokeinaveikasadaurawativolimaienaveiyabakisaotievakavunametosocaketikogana tubukeitoudauwaseamaina21nasedeena2014kina22nasedeena2015,qaitosocaketaleena1nasedeenayabakivakailavoni2016me23nasede/sea.Etavinimatabosekeiiranakenamanidiameraqaravivakavinakanataukeiniseakoyagonanadaumakaniveiqaravi keinarawakāvakailavoenalaimatanatakienatubuerawaseanataukeinikabani.
NakabanicokovataniFHLesasaumaoti,vakacacaerautani$24na milioni kina matanitu me ivakacavacava qo e tautauvata ni$15,000duanatamatacakacakamaina1,600nalevukecenitamatacakacaka.
Na nona veiqati vinaka na FHL ena veivanua ni bisinisi e vakilaivakalevuenamaketenivolitakisea,mevakanidaugadrevivakalevu.NaisauniseaniFHLenagaunaevakarautakikinanaivolaqoetikoena$4.08.
VAKARAU NI CAKACAKA
Nakenamaitaurivakinalawavoumebaletiiranakabani(CompaniesAct2015)esasoliaveiiranadairekitānaitavibībīninodraveiqaravivakadodonuenaveigaunakece.Esiviasaranaiyalayalanitotogielavakikina,okatikinananodravakatakilanaveikaegadreviveiira.
25FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
CHAIRMAN’S REPORTTUKUTUKU NI LIULIU NI MATABOSE
I ampleased to inform the shareholders thatwehave at all timesactedinthebestinterestoftheshareholdersandIcanproudlysaythatalldirectorswithintheFHLGrouphaveobtainedformaltrainingon the roles and responsibilities of directors and aremembers ofinternationallyrecognisedAustralianInstituteofCompanyDirectors.
Governance remains a high priority and the Board continuouslyengages in debate on how we can improve performance andeffectiveness.WhilewehavestrengthenedourprocessforevaluatingtheBoardsasawhole,wealsohavefeedbackandsupportmechanismforeachDirectorsaimedatimprovingindividualperformance.
We also advertised for Independent Directors during the year,recruited few more young directors to subsidiary boards. Thecompany ensures that directors takepart in trainingorganisedbybodies likeFIA,CPAandAICDtoensure that thedirectorsarewellinformedonthelatestdevelopmentsforbusinessopportunitiesaswellastheirresponsibilities’.
ThecompanyhasobtainedformalclearanceandconfirmationfromSPSEthatFHLasalistedcompanyhasfullycompliedwiththelistingrulesoftheinstitution.
REWARD FOR OLYMPIC GOLD MEDAL
As a good corporate citizenwe had promised various rewards forTeamFiji participatingat the2016Olympicsgames.Theentire FijiwasthrilledtowitnessthehistoricoccasionofFijiwinningthefirstgoldmedal. Aswe announced in June 2016, FHLwill offer a cashreward of $2,500 and units worth $500 for each player of the FijiRugbyTeam.Thewinningofthegoldmedalwillcertainlyaffectourtourismindustryforthebetterment.
MOVING FORWARD
Wearenowenteringtheeraofdigitalizationandtherearenowmoreemphasisontheeffectofclimatechangeinourenvironment. Theeffectsofthesetwophenomenawillcertainlyaffecthowourpeoplebehaveandreact.Wehavetoputinplaceproperriskmanagementpoliciesandstrategiesthatwillensuresustainabilityinourbusinessventures. These have to be reviewed annually because the worldeconomyischangingrapidly.
Weexpectsomeof thechallenges faced lastyear tocontinue intoFY2017asuncertaintycontinues tobeleaguer theworldeconomy.However,weareconfident that theGroupwillbeable tonavigatethe choppy waters and acquit itself.With a strong investment indiversifiedportfolioandourdeepexperienceintheever-changingbusiness environment, the Group has significant strengths towithstandanyturbulenceahead.
Whilstthemacroenvironmentisbeyondourmeanstomanage,wecanhoweverkeepourhouseinorder,ridourselvesofinefficienciesandconsolidateourstrengthstomoveforward.
FHLhasprospectiveinvestmentandstrategicplansinplacetoensurethat the shareholder returns is maximised with every transactionwe do. Few plans that are in the pipeline include investment intheGovernmentPrintery, SolarEnergy,FEAwhilst the strategicallyfocussedplansistopublicallylistMFLandBILontheSouthPacificStockExchange.
Ekadokaiveiaumeuvakaraitakavei iranataukeiniseanikeitouveiqaravivoligaenavukudra,erasagolevaotitaleganaveitabananivulioirananomunidairekitāmeveiganitikeinaitavieravakacolatikina. E vuqavei ira era lewenanaAustralian InstituteofCompanyDirectors.
Na veiqaravi vakaivakarau e dau vakabībītaki ka sa nodratouitavi na lewe ni matabose ena kena veivosakitaki na veika mevakadaumakatakanaivakaraunicakacakakeinakenamana.Mainakenavakaukauwatakinaivakarauerailovikinanalewenimatabose,etutalegananeitouciqomanaivakasalamaitaudakukeinaveitokonimebaletiirananeitoudairekitaenakenavakadaumakatakinanodrarawakayadudua.
Keitou sa dau veisureti talega vei ira na‘dairekitā tu galala, kei nanodrataurivakiesonadairekitāgonemeraveiqaravienaveitabanaeravakarurugienaFHL.EsadausasagatakanakabanimeralewenanavulieravakarautakanaveisoqosoqomevakanaFIA,CPAkeiAICDmerawaniravakatoroicaketakananodrakilakāmebaletanabisinisikeinanodraitavi.
Esamai taura taleganakabanina ivolavakadinadinamainaSPSEnidatousadaurokovatikonaveikavakalawakeceegadrevimaiveiratou.
VAKAVINAVINAKA NI RAWA METALI KOULA ENA OYLMPIC.
Mevakagananoda itaviniveiqaravi rarabaedaayalatakaesonaicocovi vei ira na matataki Viti kina sotasota ni Oylmpic, 2016. EkurusetiVitinaqaqavakairogorogokarawatikinanaisevuninodametali koula.Mevakagananeitou kacivakaena Jiuneni 2016,niFHLenasolianailolomalavoqaqarautani$2500keina$500nasauni unitime dola se vakuri kina nodratou akaude ni vakatubuilavooratounalewenitiminirakaviyavituniViti.Sadinasara,nikenarawatinametalikoulasanavukeanatabananisaravanuaenanodavanua.
VEIKA MEDA VAKANAMATA KINA
Edasacurumayaniqonagaunavouniveikavakalivaliva,kavakamevakabībītakitaleganaveikaebaletanarevurevunidrakiveisau.Narevurevuniveikaruaruaqoenarawaniveisautakananodraivakaraukeinanodravakatulewānanoda lewenivanua. E sadodonugonakinameda vakarautaka tu eso na yavu ni kena raici na ririko oqomekuaninavakaleqanatosonibisinisi.Qomenaqaidauraicilesuenaveiyabakimevakaniseganitudeirawanarawakāvakailavonivuravurararaba.
Keitousanamakatikonisonaboleboleesotavienayabakisaotimenabasikataleenayabakivakailavoni2017,evakakinanakenaseganivakataudeirawanarawakāvakailavonivuravurararaba.Ia,keitouyalodeitūninarawavuananodakabanicokovatamesokoleveanawasawasavoravoraqo,niyavutakinaveiqaravienarabailevunivanua keitou vakatubuilavo voli kina kei naneitou sa cicivaoti nacereenavuravuranibisinisikadauveiveisauwasoma.
Nidaseganilewārawanaidrēmainataudakuninodakabani,sanarawamedalewavakamataunanodaJeruisalemi,enanodaveiqaravivakamataukeinanodaumanavatanaveikaedakaukauwakinametosoikedaeliu.
Na FHL esa vakatubuilavo tū ka salavata kei na lalawa kā merawani ra rawatana tubuuasividuaduao irana taukeini seaenaveivolikecekeitouvakayacora.Eraokati tikoena ituvatuvavouqona vakatubuilavo kina veitabana me vaka; Tabana ni Tabaivola nimatanitu, Vakavure Kaukauwa (Solar Engery), Tabana ni Livaliva(FEA)keinaneitousavakanamatameokatikinaSouthPacificStockExchangenakabanieruanaMFLkeinaBIL.
26 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
CHAIRMAN’S REPORTTUKUTUKU NI LIULIU NI MATABOSE
Vinakavakalevu
Iowane NaiveliChairman
20thAugust,2016
FY2017willbeanotherchallengingyearandwiththeeffortsofourdynamic staff andBoardMembersof theGroup, I believe thatwecan overcome any difficulties ahead and report a much stronger,healthierandsustainableperformanceinyearstocome.
ACKNOWLEDGEMENTS
IwishtothankparticularlymyfellowcolleaguesontheBoardofFHLfortheirinvaluableadviceandcounselinthetimetheyhavebeenontheBoard.Equally,mydeepappreciationalsogoestothestaffandmanagementwhohavepressedonwithunflaggingdedicationandhardwork.
To all our stakeholders and shareholders, we record our deepappreciationfortheircontinuedsupportalltheseyears
SincewealwaysaskGodthroughprayeratthebeginningofallFHLBoardmeetingsandallourannualgeneralmeetings,itisalsoproperthatwethankGodfortheworkbeingdoneforthepastyears.
Na yabaki vakailavo 2017 e dua tale na yabaki ni bolebole, ia enanodra gugumatua na vakailesilesi kei ira na lewe ni matabose nikabanicokovata,auvakabautanirawamekeimaminaulabaletanaveiboleboleoqorikavakatakilaeduanayabakiniveiqaravi,qaqa,bulabulakatudeienagaunaqokeinaveiyabakimurimai.
VAKAVINAVINAKA
Auviavakaraitakananoquvakavinavinakaveiratounanoquitokanienalomanimataboseenaivakasalamomonakeinaveivakadeitakienagaunakeceeratoulewenavolikinanamatabose.Evakātalegakinaveiirakecenavakailesilesikeiiranamanidiakaratosoyatikoganaveiqaravienayalodinakeinagugumatua.
Veiirakecesarataleganataukeiniseakeiiranakabaniveiwekani,sacavutinavakavinavinaka levuenanomuniveitokonienaveiyabakikecesara.
MevakanidadaukereanaTuragaenamasumetekivukinananodabose na matabose ni FHL se na qaravi ni noda bose vakayabakiena ganita vinaka meda vakalesuya talega vua na Kalou navakavinavinakaenaveika saveivakarautaki voli kinaenaveiyabakiedasavakanadakuya.
27FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
NOUzAB FAREEDGROUP CEO
groUp Ceo’s reporttUKUtUKU nI KaBanI CoKoVata
Itisapleasuretowritetoyouattheendofyetanotherexcitingyearofstrongperformanceinourjourneytowardsachievingourvision.Ithinkthethemeofourannualreport,“Broadeningthehorizonforgrowth”captureswellofourcurrentkeyinitiativeswhichillustratesthe importance of the multifaceted nature of business today.Weneedagreatandhealthyteamtodeliverstrongresults,thecapitaltoenableustotakeboldstepsandtoensurewearehavingapositiveimpactonoursocietyandenvironment.
Asaconglomeratewithexposuretodifferentsectorsoftheeconomy,diversityhasalwaysbeenoneofourgreateststrengths,especiallyinthe faceof challengesposedby external environment.Theperiodunderreviewwitnessedgrowthacrossthesectorsweoperate,whilewefocusedondisposingloss-makingstrategicbusinessunits.
Profits and success depends on value, but our understanding ofvalueoftentakestoomuchforgranted,failingtorecognisewhatitisandthechangingcontextwithinwhichitscreatedandpreserved.Thisiswhyitisimportanttoconsciouslyrelookatwhatwearedoingandwhatweareplanningtodo.Whenwereachapotentialoptimumpoints, it iswise todivest investments in the sameway toacquireinvestmentswhenithaspotentialtogrow.
FHL has long been recognized as one of themost successful anddynamic conglomerates in Fiji having regional presence. Since itshumble beginning in 1984, it has been evolving and setting newbenchmarks and opening new frontiers. Last year, FHL becamethe first listed entity in Fiji to recruit Independent Directors forsubsidiariesthroughpublicadvertisements. Itwasfollowedbyfirst
Ekanimaraumeuvolavolayaniveikemunienamuaniduatalenayabaki ni rawa tubuka vakavotukanataki kinana rai ni kabani.Nautonitukutukuvakayabaki“VakarabailevutakinaTatadraniRawaka”me sota kei na veika keitou gadreva me keitou rawata ena bulavakabisinisi. Keitou vinakata edua na timi bulabula me rawata natubuvinaka,nailavomevukeikeitouenacavuikalawaenaneitoukakavakikiliumeravakilanalewenivanuanauasiviniveiqaravi.
Ni vinakatime laurai na rawa ka ena kabani cokovata, naduavataniveitabanaduiduiesaivurevurenikaukauwa,vakabibienakenasotavi na bolebole ni veikamai taudaku. Na yabaki vakailavo qoe vakadeitaka na tubu e rawata na veitabana, ia keitou raica yanivakabalavumenakautaninalusiniveitabanaduiduinikabanikaseganikautamainarawakavakailavo.
Na tubukeina rawakaevakatauenaveikakeitouvakabibitaka iaedautauri tugavakamamadakasegani laurai rawakinanakenai balebale kei na veiveisau e kautamai, kei koya e dodonumedamaroroya. Sabibikinamelauraitalemadavakavinakanaveikasaqaravitikokeinaituvatuvaenanumimevakayacori. Niyacovinavanuaedasamairawatasadodonumevakalailaitakiesonatabanakaseganirawatubuvakalevukavakalevutakinaveitabanasarawatubuvakavinakatiko.
NaFHLsakilaitumainanonasarawatikoyatuvakavinakakavakakinanakenaveitabanaduiduikasatuenaPasifika.Metekivumaiena1984,satosonanonaveiqaravi,cavutiesonaisausaukadolaviesona tabanani veiqaravi vou. Ena yabaki saoti, na FHLemataini kabani ka tabaki ena Stock Exchange me vakacakacakataki iranaDaireketatuvakatakiiraenaveitabanalalainiotinakenatabakirarabamekilai. E taravasaranakenadikevinakavaka i lavoena
THE GRoup ExpERIENCED A HEALTHy
NET CASH FLoW opERATING ACTIvITIES oF $ 52.74
MILLIoN FoR THE CuRRENT pERIoD, AN
INCREASE oF 143% CoMpARED To pREvIouS
12 MoNTHS.
28 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
GROUP CEO’S REPORTTUKUTUKU NI KABANI COKOVATA
todosix-monthAuditreviewbyindependentexternalauditors.Wehopetocontinuethetrend.Wewillcontinuetoleadwhereitmatters.
GROUP PERFORMANCE
FijianHoldingsGrouprecordedaconsolidatedoperatingrevenueof$293millionreflectinggrowthof15%overthepreceding12months.Ifdiscontinuedoperationsareincluded,thiscouldhavebeenmorethan $314 million. Consolidated post-tax profit reached $25.88millionforthe12monthsended30June2016,comparedto$18.48million achieved in the previous year.This represents a growth of40%.
Total group assets grew by only 3% to reach $475 million whiletotal liabilities grewmarginally by 1% to $257million. The Groupexperienced a healthy net cash flow from operating activities of$52.74millionforthecurrentperiod,anincreaseof143%comparedtoprevious12months.TheGrouprecordedacommendableReturnonNetassetsof9.3%forthecurrentperiod. It isalso importanttonote,thegrouppaid$24.17milliontotheGovernmentintheformoftax,dutiesandotherduescomparedto$25.46millionpaidduringthepreviousyear.
FHLastheholdingcompanyrecordedamarginaldeclineinrevenuebutpost-taxprofitfor12monthsended30June2016,roseby61%to$20.85million.Whilegearinglevelshasimprovedfrom26%to21%,netcashfromoperatingactivitieshasincreasedfrom$13.37millioninthepreviousyearto$19.61millioninthecurrentperiod.Overallreturnonnetassets(RONA)hasimprovedfrom6.8%to9.3%duringthe12months.
PERFORMANCE OF GROUP COMPANIES
FHL Group serves as an investment house which offers investorsvariety,intermsofexposuretoassetclassesbasedontheirpreferenceand risk appetite.To this end, thegroupoffers, fixed termdepositproductsthroughMerchantFinanceLtd,alicensedcreditinstitutionwhileFijianHoldingUnitTrustofferslong-termportfoliobasedunits.Inaddition,FHLStockBrokersLtdoffersanopportunitytoinvestinlistedequitiesinFijiaswellasoverseas.
MerchantFinanceLtdrecordedapre-taxprofitof$9.39millionbasedonarevenueof$21.42millionforthe12monthsended30thJune2016comparedtoapre-taxprofitof$10.02milliononarevenueof$19.75millionachievedinthepreviousyear.Increasedcompetitioncoupledwith depositor sophisticationwas the leading factor thatcontributed towards marginal decline in profitability. During theperiodunderreview,anincreaseof$28millionwasrecordedinTotalloansandadvancestoreach$129millionwhilecustomerdepositsincreasedbysameamounttoreach$118million.
FHLFundManagementLtd,whichmanagestheFijianHoldingsUnitTrust (FHUT) has recorded a 6% growth in pre-tax profit to reach$1.08 million whereas FHL Stockbrokers Ltd reported a pre-taxprofitof$0.04million.FijianHoldingUnitTrusthasbecomeaflag-shipsavingsinstitutionforthecountrybyattractingmorethan$34millioninvestmentsfrom4,253unitholdersduringpast24months.Asat30July2016,thetotalfundhasreached$90millionwithmorethan8,700unitholders.
lomaniononavulamaiveiiranadaunifikamaituba.Keitounaraicamekeitounaliutikogaenakenasagainatosokiliunikabani.
RAWA TUBU NI KABANI COKOVATA
ArawatanaKabaniCokovatanaFijianHoldingseduanailavobulae$293namilionimeivakaraitakinitubue15napacedeenalomani12navulasaoti.Kevakaeokakinanacakacakasamaitarovinakedracici,adodonumelevucakeena$314namilioni.Natubunisamusuotinaivakacavacavaayacovana$25.88namilionienalomani12navulakamaicavaena30niJune2016,niraicivatakeina$18.48namilioniarawaena12navulasaoti,qoevakadeitakanatubue40napacede.
Nalevutaucokonilavotaukeninikabanicokovataetubuwalegaena3napacedemeyacovana$475namilioni,iakatubunidinauena1napacedemeyacovana$257namilioni.Erawatanakabanieduanatubuvinakamainailavonicakacakaerautani$52.74namilionimeveudutaitakivatamainatubue143pacedeena12navulasaoti.ArawatanaKabaniCokovataeduanatubuenaiyautaukenie9.3napacedemebaletanayabakiqo.EdodonutalegamekilainiasaumanaKabaniCokovatae$24.17namilionikinamatanitume i saunivakacavacavakeinasotalenailavolavakikaveidutaitakivatakeina$25.46kasaumienayabakiyanieliu.
MevakanikabaniliuliunaFHL,evakaraitaka,eduanalutulailainilavoerawati,ianatubukarawatiniotinakenamusunaivakacavacavani12navulamaicavaena30June2016,etubucakeena61%kina$20.85namilioni.Natosonisasagaelaveticakekina26napacedemaina21napacede,erawatikinanatubumaina$13.37namilionienayabakiyanieliukina$19.61milionienalomaniyabakiqo.NailavokeceerawamainaiyaubulataukeninaRONAetosocakemaina6.8napacedekina9.3napacedeenalomani12navula.
VEIKA RA RAWATA NA VEIKABANI NI FHL
NakabanicokovatanaFHLeokatimekabaninivakatububisinisikadolavakivei iranadaunivakatububisinisinaveisalaesokaokatikinanakalasiniyautaukenikavakataugaenakenaeradigitaka.Eke,esoliatunakabaninavakatubuilavovakataudeitaki(fixedterm)enaivolienaMerchantsFinanceLimited,natabanaevakailesenimesolianadinau,keinaFijianHoldingUnitTrustesoliataleganavoliuniti(unit)karawanitaukenivakabalavu.NaFHLStockBrokerstalega,esolianagalalamevakatubuilavoenaveikabanievolaituenaStockExchangeeVitikavakakinamaivavalagi.
ErawatanaMerchantFinanceLimitednatubue$9.39namilioniniberanimusunaivakacavacavakavumainarawailavonikabanikarautae$21.42namilionienalomani12navulakamaicavaenaika30niJune2016mevakadutaitakivatakeina$10.02namilioniniberanimususnaivakacavacavamainarawailavonikabanikarautani$19.75namilioninaveiyabakiyanieliu.Natubucakeniveiqatisalavatakeinanodrakilanadaunivakatubuilavoemaivakavunakinaeduanalutulailainitubuerawati.Enalomaniyabakivakailavoerautani$28namilioninatubuerawatimainadinaukeinailavosolieliu(advance)eyacovayanie$129namilioni,keinanodravakaicuruilavonamebaetubucakeenaumailavovatakoyameyacovana$118namilioni.
NaFHLFundManagementLtdkacicivakatikonaFijianHoldingsUnitTrust (FHUT)e rawatana6napacedena tubuni seberanimusuna ivakacavacava me yacova yani na $1.08 na milioni kei na FHLStockbrokersLtd(dauvolia kavolitakana sea ) e rawatana tubue$0.04namilioninisamusuotinaivakacavacava.NaFijianHoldings
29FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
GROUP CEO’S REPORTTUKUTUKU NI KABANI COKOVATA
AtFHLGroup,wecannotfollow‘Oneformatfitsall”approach.Eachofour subsidiaries isdevelopedwith critical success factorsof theindustryinmind.Thisreflectsinitsofferingsandpricingaswell.WeofferandencourageinvestmentsinUnitsforthosewhowishtosavesmall on amedium to long termbasiswhereas investorswhohascapacitytotakemoderateriskwillbelookingforequityinvestments.RealEstatebusinessofthegroupisemergingasasignificantplatformforthefuture.ThewhollyownedsubsidiaryFHLPropertiesLtdhasfourcommercialbuildingswith132,000sq.ft.ofspaceinSuvaCitywith 45 tenants. In the near future, the fifth commercial property,a17-storeybuildingFHLTowerwillfill theSuvasky.ThiswouldbethebiggestpropertyinvestmentdonetodatebyFHLGroup.Duringtheyear,FHLPachieved100%occupancyofitsspaceandrecordedapre-taxprofitof$1.06millionona revenueof$3.90million.Thisrepresentsagrowthof2.5%and24.8%respectivelyforrevenueandprofits,
Star performer of the group for the period under review is BasicIndustries Ltd (BIL). The company made a pre-tax profit of $9.20millionrepresentingagrowthof158%fromthepreviousyear.Duringthe same period, revenue grew by 32% to reach $ 67.35 million,secondhighestinthegroup.ThisgrowthwasmainlyduetoincreaseinbudgetallocationbytheGovernmentofFijiforroadimprovementtogetherwithincreaseddemandforready-mixconcrete,blocksandaggregates.Inaddition,thedemandforsameproductsfromPacificIslandcountriesweremajorboosterduringtheperiodunderreview.
Pacific Cement Ltd (PCL), the pioneering cement company in thecountry was instrumental in achieving historical record sales of150,543 tonnes.PCLhasnever sold thisquantity in its60yearoldhistory. Revenue grew by 20% to reach $38.09 million for theyear ended June 2016 while pre-tax profit reached $2.63 million,representinga97%growth.
Duetochallengesfacedandcontinuinglossesincurred,FHLdecidedto divest its concrete batching operations in PNG. Overall, FHLhas lostmore than $7million fromoperating a concretebatchingplant inPortMoresby.WestilldoseethebrightersideofPNG,thelargestcountryamongPacificIslandsintermsofGDP.Followingourdisposal,wealsoinvestedafurthersixmillionPGKinPernixPNGLtd,whichwillfocusonConstructionandPowersectorinPNG.Inspiteofdifficultiesencountered,weremainfocussedonthePacificregionasawhole.
TheperformanceoftwolistedcompaniesinthegroupRBPatelGroupLtd(RBG)andFijiTelevisionLtd(FTV)haveexceededexpectation.RBGreachedarevenueof$118million,highestever in itshistorywhilepost-taxprofithasgrownby24%toreach$8.20million.Continuingoperations of FTVwhich is free-to-air have performed remarkablywell for theperiodunder review. IfdiscontinuedoperationsofSkyPacificandMediaNiuginiLtdareincluded,theFTVgroupwouldhavemadeapost-taxlossof$0.67millionforthefinancialyear.ThesamejustifiesthedecisionstakenbytheBoardtodivestbothoperations.
Performance of South Sea Cruises Ltd (SSC) and Blue LagoonCruises Ltd for the period under review is commendable. Despiteencountering Tropical CycloneWinston and temporary closure offewresorts,theCruiseCompanymanagedtoexceeditsbudgetsbyprovidingservicestomorethan225,000touristsduringtheyear.SSCrecordedapre-taxprofitof$5.69millionfortheperiod,agrowthof
UnitTrustevakatikoeduanawaqanimaroroiilavoninodavanuakasatekivudretarawaerautani$34namilionimaiveiirana4253naitaukeiniUnitienalomani24navulasaoti.Nimaiyacoatikona30niJulai2016sayacovasarae$90namilioninailavoemaroroirawamaiveiirae8700naitaukeiniuniti.
EnakabanicokovatanaFHL,keitouseganirawanivakamuriatikonakaedautukunitume‘eduanaivakarauerautikedakece”.Oirakecenaneitouveitabanayaduaeraatauyavutakienarainirawatubukeinavakasamaniveivakatorocaketaki.Evakaraitakiqoenaveikaesolianakabani keinakena i sau. Keitou solia kavakaukauwatakataleganavakatubuilavoenaunitiveiiraeragadrevameramaroroilavo vakalailai ena dua na gauna lekaleka se kina dua na gaunabalavu,iaoiranadauvakatubuilavokarawatameratauranaririko,eranavakasaqaranavakatubuilavoenakenaeranarawailavokinavakavinaka.
Enatabanibisinisinivolitakivalekeinaqeleenakabanielaurainirawamenaduanatabanibisinisikaukauwaenaveigaunamaimuri.Nanodakabani taukenivakaduanaFHLPropertiesLtd,e taukenaevanavaleredetakika132,000nafitivakavirivirinakenalevuenalomanisitioSuvaka45eraredetikokina.Enaduanagaunalekalekamaiqo,na ika limanivale redetaki,navale taba17nayacananaFHLTowerkanaduana i sakisakiena loma ISuva. OqosanavalelevutauduanivakatubuIlavomenataranaFHLmeyacovamaiqo.Ena yabaki qo, e rawatana FHLPna 100%na kena vakatawani navaleka rawaSa tubu tikovakavinakana tabananivolitakivalekeinaqelekanarawamesalanirawakinanailavoniberanimusunakenaivakacavacavae$1.06menailavoe$3.90m.Evakaraitakaoqoevakaraitakanatubue2.5%keina24.8%baletanai lavobulakeinatubu.
EnalomaniyabakioqoececekiakinanaveiqaraviniBasicIndustriesLtd(BIL).Erawatanakabaninatubue$9.20namilioniniberanimusunaIvakacavacavakavakaraitakanatubue158%mainaveiyabakisaoti.Enagaunavatatalegaoqorierawatikinanatubuvakailavoena32%karawatikinae$67.35m,naikaruanilavolevuenakabani.NatubukarawatioqoerawatienanonasolianamatanitunaIvotavotanikenavakavinakatakinagaunisalakeinakenagadrevivakalevunasimedesaqaqioti,bulokokeinavatunicakasala.NakenaikurisaikoyanakenagadrevivakalevunaivolivataoqomainaveiyanuyanuenaPasifikakavukeavakalevunarawatubuoqo.
NaPacificCementLtd(PCL),aimatainikabaninibulisimedeenanoda vanua ka vakaitavi ena kena rawati na i sausau levu ni kenavolitaki na simedeka rautani 150,543na tani. Ena lomani 60nayabakinikenacicitikonakabani,esaberavakaduanibauyacovanaPCLnaisausauoqo.Etubucakenarawakavakailavoena20%kayacovanana$38.09namilioniena12navulakamanicavaenaJune2016kayacovana$2.63namilioniniberanimusunaIvakacavacavakavakaraitakanatubue97%.
Ena vuku ni kena sotavi na bolebole kei na lusi veitaravi a yaco,avakatulewakinanaFHLmesavolitakananonacakacakanibulisimedemaiPNG.EavakalusiakinanaFHLesiviana$7namilionimainanonabulisimedetikomaiPortMoresby.Ia,keitousaraicatikoganayasanararamakeiPNGkanimatanitulevumaiveiiranamatanituenawasaPasifikaenavukuni kenaGDP.Niotinaneitoubiutanabisinisi oqo, keitou mani vakatubu i lavo, me sivia e 6 na milioniPernixPNGLtdkavakanamatakinataravalekeinavakasuculivalivaePNG.Edinaganisotavitikonadredre,keitounavakanamatatikogakinaiwaseniPasifikararaba.
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7.5%.ThisincludesaprovisionforfallinvalueofMystiquePrincess.Asagroup,wecontinuetobebullishabouttheLeisuresectorandareinvestingmorethan$10millioninacquiringtwomorevesselstoserviceincreasingdemandfromPortDenarau.
Life Cinema Ltd, our newest investment in the entertainmentindustry,madealossduringthefinancialyearbutthiswaswithinourprojections.Withinnext12–18months,twoCinemasinLautokaandthreeinNakasiwillbeaddedtotheexistingfourinNadi.Withinthisexpansion,weexpectthecompanytobecomeprofitablefrom2017.
CHALLENGES
OveralltheInvestmentportfolioofFHLstoodat$257millionon30June2016,reflectinga11.3%growth.Moreimportantly,shareholders’equityhasgrownfrom$189millionin2015to$224millionasat30June2016.Shareholder’sequitywasonly$38millionin1996.Withinaperiodof 20 years, the shareholder valuehas increasedby $186millionoronaverage$9.3millioneveryyear.
IntheprocessofPortfolioDiversification,FHLhasinvestedindifferentassetclassandindifferentsecuritiesinanattempttoreduceoverallnumberof investments. Since inception in 1984, FHLhas investedin49companies.Asat30th June2016,FHLhas investments in29companies.Whilewedomonitor,followandtakecorrectiveactions,thereisapossibilityoffallinvalueofinvestments.
During this year, the impairment and fall in value of investmentshave been contained. But we had to provide for the continuousdeteriorationofthestatusofMystiquePrincess, forwhichwehavebeensearchingforabuyer.Refurbishingthe20-yearoldvesselmaynotbefeasibleatthisstage.Inaddition,wealsomadeanimpairmenton our investments in Pernix Fiji Ltd, which is due to a one-timeloss, thecompanymade in2015asa resultofKinoyaPowerplantconstruction.
As a result of restructuring of short to medium term debts, wehavemanagedtoreduceanomaliesinthebalancesheetespeciallybetweenCurrentAssetsandCurrentLiabilities.Beinganinvestmentcompany,wedonotkeepcashorcashequivalentwithintheholdingcompanybutratherreduceourdebtonamonthlybasis,whileeverynewinvestmentsoracquisitionswillattractfurtherdebt.
ACqUISITIONS AND DIVESTMENTS
Itwasaverychallengingyearwiththreekeydivestmentswithinthegroup companies.Yet as always, your company remains confidentof itsability tostrategicallyexpand itsbusiness interests todeliverconsistent valueback to themany stakeholderswepartner today,domesticallyandregionally.
Itisapleasuretosharewithyouthatallourlossmakingsubsidiariesinthegrouphavebeendivestedwithinthepast fewyears.Duringtheyear,wemanagedtodivestourlossmakingoperationsinPapuaNewGuinea(PNG).WedidnotleavePNG,ratherwemadeadecisiontodivestthecompanytoamorecapableoperator,PernixPNGLtdandtoacquireastakeintheacquiringcompany.Wearecertainintheyearstocome,thisinvestmentwillpaydividendstorecoupalllossesmadeinPNGtodate.
Nanodrau rawakanakabanae ruaka raudaukacivakienaStockExchangenaRBPatelGroupLtd(RBG)keinaFijiTelevisionLtd(FTV)etikoecakemainaveikaenamaki.EyacovanaRBGnailavobulae$118namilioni,nakenakalevutauduaenakenaivolatukutuku,katubuena24napacedenisamusuotinaivakacavacavameyacovana$8.20namilioni.EtosovinakatikoganaveiqaraviniFTVenayabakivakailavokaokatikinanaraitioyaloyaloseganisaumi(SkyPacific).KevakaeokativakailavonanodrausamaivakaceguinaSkyPacifickei naMediaNiugini Ltd , ke a yaco yanina lusi vakailavoe $0.67namilionini samusuoti na i vakacavacava. Qoe vakadeitakananodratou vakatulewa na Mataboseme sa volitaki kina na kabanaruaruaoqo.
EvakacaucautakivakalevuenayabakivakailavonanodrauveiqaravinaSouthSeaCruisesLtd(SSC)keinaBlueLagoonCruisesLtd.EdinaganiasogoevicanaotelaniotinavakacacaniCagilabaoWinston,e rawata na kabaname ulubaletaka na nona i tuvatuva vakailavomai na nona usana rawa e sivia 225,000 na saravanua ena yabakivakailavo.ArawatanaSSCnatubuvakailavoe$5.69namilionikatubuena7.5napacedeniberanimusunaivakacavacava.QoeokatikinanalutunisauvakailavoniMystiquePrincess.MevakaniKabaniCokovata,keitounakacivakatikoganasasaganirawakavakailavomainatabananisaravanua,kamenavakayagatakikinanai lavoelevucakemaina$10namilionimevolitalekinaeruanawaqamesotavauanagagadreenaikelekeleniwaqaeDenarau.
NakabaninaLifeCinemaLimited,eduanatabanavounivakatubuilavonikabanicokovatakagolevayaninatabananiveivakamarautaki,e a sega ni rawa tubu nea yabaki vakailavo, ia a sa kilai rawa tikonatikinaoya. Enalomani12-18navulamaioqo,eruanavaleniyaloyalo ena vakaduri mai Lautoka ka tolu mai Nakasi ena vukeasaranaveiqaravimetomanayaninavakasatikorawamaiNadi.Enatosooqo,enamaki tikomesana rawanivakatubuilavonakabanioqoenayabakivakailavo2017.
NA BOLEBOLE
NatabananivakatubuilavotaucokoniFHLetuvuae$257milioniena30niJune2016,vakaraitakanatubue11.3%.Ebibitauduananodra I lavobulana itaukeini seae tubumaina$189milioniena2015kina$224milioniena30niJune2016.Aselevuninodrailavonaitaukeiniseae$38milioniena1996.Enalomani20nayabaki,satosocakenandrakaukauwavkailavonaitaukeiniseae$186milioni,tautauvatani$9.3milionienaveiyabaki.
Na cakacaka ni veibiuyaki ni vakatubuilavo,sa vakatubuilavo kinanaFHLenaduikalasiniyautaukenikeinaduiseaenakenatovoleimetoroisobuevuqanavakatubuilavo.Tekivumainatekivutakiena1984,savakatubuilavonaFHLena49nakabani.Mainaika30niJune2016,savakatubuilavonaFHLena30nakabani.Nikeitouvakaraicatiko,vakamuriakaveivakadodonutakanaveikaecala, sa rawamelutunaisaunivakatubuilavo..
Ena lomani yabakiqo,na leqakeina lutuni sauni vakatubuilavosatarovi,i.Iaedodonumekeitousolianalutusobutikoganituvakini Mystique Princess ka keitou sa vaqara tiko edua me volia. Navakavinakatakiniwaqa sayabaki22nadedeninonacici ena segasotinidodonuenagaunaqo. Kena ikuri, keitouacalaenaneitouvakatubuilavoenaPernixFijiLtdkaalusiena2015enavukunitaraniKinoyaPowerPlant.
Enavukunikenatuvaitalenadinauenagaunalekalekakeinagaunabalavu , keitousa rawatamekeitouvakalailaitakanaveika segani
31FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
GROUP CEO’S REPORTTUKUTUKU NI KABANI COKOVATA
DuringtheyeartheGroupdivestedtwoPNGbasedgroupcompanies.MediaNiuginiLtd,themostpopularfree-to-airtelevisioninPNGwasdivestedasithadreacheditsoptimumpointofperformancepriortocompetition.WhereasPortMoresbybasedBasicIndustries(PNG)Ltd,aconcretebatchingplantwasdivestedasitisnolongerfeasibletocontinuewithoutfurtherinfusionofcapital.Inaddition,SkyPacific,whichwasadivisionwithinFTVwassoldasadivisionwithintheyear.Allthreedivestmentshadpositiveimpactonthegroupintermsoffuturepotential.
Our planned joint venture with an Israel company in the field ofagriculture anddairy did not eventuate to date. But our quest foropportunities in agriculture continues. We are in discussion withChineseinvestorstorevisitthissector.
PEOPLE CAPITAL
OurresultsaremadepossibleaswehaveastrongteaminplaceinvariousStrategicBusinessUnits(SBU)whocombineentrepreneurshipwith professionalism to deliver consistent results. The people werecruit,thetalentwemanageandthebusinessleaderswedeveloparethelifebloodofanyorganization.
Plansaremadeandexecutedwithpeople.It’sthepeoplewhorunthebusinessesandattheendconsumerservicesofferedbythebusiness.Withinthiscontext,weconsiderpeopleasthemostimportantassetin our business. The 1,600 plus employees in the group aremostimportantcustomersforus.
Wecontinuetothriveinachievingexcellence.Forallouremployees,animportantKeyPerformanceIndicator(KPI)istoattendaminimumof3-daysoftrainingduringtheyear.Thisappliesfromtheheadofthecompanytofrontofficestaff.Duringtheyear,atleastsixofouremployeescompletedtheirMBAprograms,accumulatingtotalMBAsin the group to over 30. In addition,within FijianHoldings group,therearemorethan50whohavereceivedoverseastraining.
Successisdeterminednotjustbydevelopinggreatandstrongteams,butwellnessofouremployeesisabigpartofwhatwebelieveinatFHL.Wecontinuetofocusuponemployeewellnessandleadershipdevelopment. All recent contract renewals within the group haveincludedmembership of fitness clubs for both the employee andtheirspouse.
FUTURE OUTLOOK
At Fijian Holdings Group, we celebrate a spirit of progress andtransformationasweexploreandengagewith themanybusinessopportunities that we identify each year. Our journey has been adynamicone,asourgrouptirelesslyseekstolaunchanddevelopintonewandprofitableindustrysectors.
Overtheyears,yourcompanyhasseenexponentialgrowthbytheexplorationofnewopportunitiesandstrongcustomerengagement.We dominate the local cement, ready mix concrete and concreteproducts,television,cruising,retail,unittrust,cinemaandpropertiessectors through our continued commitment to maintain strongengagement with our loyal customers. The group has been wellpositionedforgrowthwithinvestmentsbyexpansionofkeybusinessareas to enhance capacity and operational efficiency of existingbusinesses.
dodonuenaItukutukunilavo,vakabibinaiyautaukenienagaunaqokavakakinanadinau.Nikeitoukabaninivakatubuilavo,keitoudau seganimaroroi lavoqaqa seduan akae tautauvatana kenaisauvakailavo,iakeitoudauvakalailaitakasobunaneitoudinauenaveivula,ianaveivakatubuilavovousevolibisinisimaienakautatalemaiesonadinau.
VOLI MAI KEI NA VOLITAKI
Aduanayabakieveiboleinitolunavolivolitakiayacoenalomanikabanicokovata.Nanomunikabanieyalodeinituvuanakilamevakarabailevutaka na nona ituvatuva ni bisinisi me rawa ni kautamainailavoveiiranabisinisikadaveiwekanitunikuaeVitikeinaveiyasaivuravura.
Ekanimaraumeutukunakeikemuninioirananodakabanikaraseganirawatubuvinakaerasavolitakienalomanivicanayabakisaoti.Enalomaniyabaki,keitousarawatamekeitouvolitakiiranatabanikabanaelusitikovakailavoepapuaNewGuinea(PNG).KeitouseganibiutiPNG,iakeitounanumamevolitakinakabaniveiiranabisinisierarawanicicivakavakavinaka,Pernix(PNGLtdkametikinikabanakavakayacoranavolivoli.Keitoukilaniveiyabakimaiqo,navakatubuilavoqoenasaumanakaevinakatimeveisautakanalusikayacomaiPNGenagaunaqo.
Enalomaniyabaki,avolitakanaKabaniCokovataeruanakabanieveiqaravitikomaiPNG.NaMediaNiuginiLtdnatabananitelevisione PNG sa volitaki ni sa yacova na delana ni nona veiqaravi. Ia naBasicIndustriesLtdeqaravanaqaqisimede(PNG)LtdkatikoePortMoresby a volitaki ni laurai ni sa sega ni ganitame veiqaravi tikoniseganivakanienailavometosotikokina.Mekenaikuri,naSkyPacific,eduanaiwaseniFTVsavolitakienalomaniyabaki.Nodratouvolitakitolutoluevinakakinakabanibaletanagaunamaimuri.
NaneitouItuvatuvanicakacakavatakeinaduanakabanimaiIsirelibaletanateiteikeinasusubulumakau,aseganivakavatukanameyacovamaini kua. Se tugananeitougadrevana teitei. Keitou saveitalanoa tikokei iranadauvakatubuilavomai Jainameraica talenatikinaqo.
TAMATA CAKACAKA
NaveikakeitourawataerawaenavukunineitoutimikaukauwaeratuenaduanatabananaStrategicBusinessUnits(SBU)etukinanakilavakacakacakakeinataledikeitoulewakeinailiuliuvakabisinisikeitouvakavulicaeradrabulaniduanaisoqosoqo.
E buli na ituvatuva ka cakacakataka na tamata. Na tamata ga eracicivakanabisinisi,ianabisinisiqaiqaraviiranalewenivanua.Oyanavunakeitouokatakinanatamatameiyaubulanineitoubisibisi.Na1,600kasivianatamatacakacakaeratikoenakabanierabibitauduaveikeitou.
Keitousasagamerawanaveikavivinaka.Vei irataucokonaneitoutamatacakacakana tikinabibiduaduananodravuli siga toluenalomaniyabaki.Qoetekivumaicakevei irana iliuliunikabanimeyacokinadauveiqaraviekatuba.Enalomaniyabaki,eonoveiirananeitoutamatacakacakaerarawatanalesoninaMBAenaIlalasasiviana30.Sasiviaelewe40eraavuliotimaivavalagi.
Cicivakavinakanibisinisiesegawalegamebaletanatuberinitimikaukauwanicakacaka,ebaletanatuvinakaninodrabulaeduanaka levu keitou vakabauta ena FHL. Keitou raica matuame vinakananodrabulanatamatacakacakakeinaveituberiniveiliutaki.Na
32 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
GROUP CEO’S REPORTTUKUTUKU NI KABANI COKOVATA
Based on prevailing economic trends, especially global the yearaheadtooislikelytobefraughtwithchallenges.Whilststrategicallyaligningresourcestoaddressanypotentialshocks,theprimaryfocusofthesectorswillbeonachievinglong-termbusinessobjectives.
Ourhistoryshapesthewaywethinkaboutthefuture,aswecontinuetogrow,investedandtodelivervaluetoourstakeholders.Weremainfocusonbestpracticesandconfidentthatouroutlookongrowthandlongtermvaluecreationwillkeepussuccessfulintheyearsahead.
APPRECIATION
BeforeconcludingIwishtoplaceonrecordmysincereappreciationto all employees of the Group. Without their hard work andcommitment,thisjourneywouldnotbepossible.Further,ItakethisopportunitytoconveymygratitudetoGroupChairman,FHLBoardDirectorsaswellasBoardDirectorsofsubsidiarycompanies.Infact,theyplayedanimportantroleingrowingthebusinessandaligningourbusinesstolongtermobjectives.It isalsoimportanttoconveyourgratitudetopolicymakersandregulatoryauthorities inFiji fortheirsupportextendedatalltimes.
Certainly, it iswith pleasure Iwish to placemy appreciation to allourshareholdersfortheirunwaveringtrustandbeliefplacedinthecompany.Ihavenodoubtthispartnershipwillpropelthecompanytoreachgreaterheightsintimetocome.
IwouldliketothankallwhohavecontributedinmakingFHLGroupsuccessfulin2015/16.Greatresultscomefromhavinggreatbusinesspartners, a team driven by strong desire to win and a constantlyencouragingandvigilantBoard.Iamprivilegedtoplayaleadershiprolewithinthisteam.
vakavoutaki ni konitaraki ni tamata cakacaka ena kabani sa raicitalegakinanaituvakivinakaniyagodrakeiiranawatidra.
RAI KI LIU
Ena lomaniKabaniCokovatakeitoumarautakanayaloni toso iliukeinayaloniveisaubaletanaraicikeinasasaganicakacakavatakeinasotalenabisinisikeitouraicaenalomaniyabaki.Naneitoutososakuneikinana igu,nayalodinakeinavinakatiniqaqame rawavakalevunatubu.
Ena veiyabaki sa oti, a sa raica na nomuni kabani na tubu kei nasasagatakinisotalenabisinisi.Keitousaliuenabulisimedekeinasimedeqaqiotikeinaveikaerabulienasimede,Television,sokoewai,VolivolitakiUnitTrust,ValeniYaloyalokeinavolitakivale.Satuvinakanakabanimerawatubumainavakatubuilavokinaveibisinisilelevumevakalevutakanaveiqaravinibisinisisaturawa.
Niraicinatosonibulavakailavoenaveiyasaivuravura,nayabakisatukikiueravuqakinanabolebole.Dinanisatuvainaiyaubulasatumesotavanadredre,elaurainiveikamevakayacori,oyanakenavakadeitakitikonainakiniqaravibisinisi.
Evakataunakasatumailiumainaveikaedasasotavaotimai,qonikeitoutosoksvakayubuilavomerakilanakenayaganaItaukeinisea.Keitouvakadeitakameraicinatububaletanagaunamaimuri.
VAKAVINAVINAKA
Ni bera niu mai cava au gadreva meu vakaraitaka na noquvakavinavinaka vei ira na tamata cakacaka ena Kabani Cokovata.Kevakaasegananodracakacakakaukauwakeinadinakeaseganicavavakavinakanailakolakoenayabakiqo.AutaurataleganagaunaqomeusoliananoquvakavinavinakaveiiranaILiuliuniVeitabana,na leweniMataboseniDaireketaniFHLkei ira taleganaBoardofDirectors ni vitaba ni kabani era vakaitavi ena vakatuburi cake nibisinisikeinakenaraicimemuadonutikonawaqa.EbibitalegamevakaraitakinanoqumarauveiiranadaulewanaivakaraunibisinisikeinakenalawaeVitienanodraveitokonienaveigaunataucoko..
Auvakaraitakananoqumaraukeinavakavinavinakaveiirataucokona noda era itaukei ni sea ena nodra veivakabauti era solia kinakabani.Auseganikurabuinicakacakavataqoenakautanakabanikinavanuacecereenaveigaunamaimuri.
AuviavakavinavinakaveiiraeravakaitavienabulicakeniFHLGroupmeyabakivinakana2015/16Arawanatubuvinakaniratunaitokanivinakavakabisinisi,natimikagadrevikinanaqaqakatomanitikogamainamatabosedauqaqarauni.Audokadokaiauniuvakaitavienaliutakinitimi.
Vinakavakalevu
NouzabFareedGroupChiefExecutiveOfficer
20thAugust,2016
33FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
OPERATIONAL REPORT OF SUBSIDIARY COMPANIESTUKUTUKU MAI VEI IRA NA VEIKABANI COKOVATA
RB PATEL GROUP LIMITED Thecompanyhashadanexceptionalyearwithtotalrevenueincludingotherincomethisyearincreasedby 9.5% to almost $118 million. This increasereflects the improving consumption spending andincorporatestheadditionalinputintotheeconomyfromtheFNPFfundsreleasedafterTCWinston.
Profit after tax for the year increased by just over24%andwas$7.4millioncomparedto$5.9millionlastyear.Thisisanextremelypleasingresultforthecompanyanditsshareholders.
Construction works at the company’s residentialproperty in Suva has commenced and theapartment complex is expected to be completedearlynextyear.TheJetPointcarparkdevelopmentisalsoinprogressandisexpectedtobecompletedlaterthisyear.
The Board is considering further developmentsof our HarbourPoint property in Lami soon. Wecontinuetosearchfornewsites forstoreskeepingin mind that these should add value for ourshareholders.
FHL STOCKBROKERS LIMITED FHL Stockbrokers Limited, recorded a positiveresult for the financial year ended30th June 2016with NPAT of $33,090 as compared to $2,611 forsame period last year. This achievement is mainlyattributed to the listing of Vision InvestmentLimited, of which FHLS was the broker of choicein the private placement process. In addition, theothermaincontributorstothepositiveresultswerethe trading of reinvestment for FHL shares andthe expansion of service provider business whichcontributed positively towards FHLS revenue of$108,953.ThemostactivestocktradedbyFHLSforFY16,includedATH,RBG,FHLandVIL.
Operations of the company continued efficientlyunder the restructuredone inFY15.Activemarketactivities, dense competition had impactedperformance,butapositiveoutlookwasapproachedat all times. Moving forward, FHLS anticipatesanother challenging year ahead, however we areenthusiasticabouttheopportunitiesavailableinthestockmarket and new business growth to furthercomplementthepositiveresults.
RB PATEL GROUP LIMITED
Asotavanakabanieduanayabakivinakaenakenarawanailavobulacurumai,eokakinaesotalenailavo bula curu mai e 9.5% kina volekata e $118milioni.NatubuevakaraitakanalevunivolivolimainaailavokasolimainaFNPFniotinaTCWinston.
Natubunimusuotinaivakacavacavamebaletanayabakivakailavoesiviae24%e$7.4milioniniraicivatakeina$5.9milionienayabakisaoti.Qoeduanaitukutukutaleitakiveiiranaitaukeiniseakeinakabani.
Na cakacakani taravaleenavaleni kabani e Suvasatekivu,navalenimocesananumimevakacavarienayabakimai oqo.Nacakacakaena IkelekelenimotokamainaJetPointmaiNadisatosovinakatikokananumimevakaotienamuaniyabakiqo.
SanaumatikonaBoardmeqaraviesonacakacakaena sitoa na HarbourPoint mai Lami. Keitou setomanatikoganavaqaqaraqelemetarakina esonasitoavoumerawaniuasivinalevunilavomeratauranaitaukeinisea.
FHL STOCKBROKERS LIMITED
A rawatana FHL Stockbrokers Limited e eduanatubuvinakamebaletanayabakivakailavokamaicavaena30niJune2016keinatubumewaseinisamusuotinaivakacavacavae$33,090niraicivatakeina$2,611mebaletanagaunavataqoenayabakisaoti.Erawanatubuqoevakavumainakenakacivakiena Vision investmentLimited ka tiko e loma naFHL me kena dau ni veivosakitaka na veivoli nivakatubuilavokeiirataleesonadaunivakatubuilavoka lavaka kina nai vakacavacava ena vuku nicakacakaoya.ErawatamaikinanaIlavocurumaie$108,953.NaveivoliuasivitauduaevakayacoranaFHLSenavukuniFY16kabaukinanaATH,RBG,FHLkeinaVIL.
Auasivinacicivakinikabanaenavukuniveisauesoavakayacoriena2015.Ebulabulanaveivoli,levuniveiqatiniveivolievakavunamevuqanakaerawamai,katovoleimetosokiliunasasaga.
53.50%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:IowaneNaiveli(Chairman)
NouzabFareedKaliopateTavolaMalakaiNaiyagaSurendraPatel
100%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:EmitaiBoladuadua(Chairman)
NouzabFareedCatherineGrey
34 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
operatIonal report oF sUBsIdIarY CoMpanIestUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
FHL FUND MANAGEMENT LIMITED FHLFundManagementLimited,theFundManagerfor Fijian Holdings Unit Trust, recorded a NPAT of$0.85m,ascomparedto$0.84mforthesameperiodlastyear.Duringtheyear,theFHUTProspectusIssueNo.5,valid till2018,wasapprovedby theReserveBankofFijiwhichentailsnewandrevised featuresoftheFHUTproduct.ThetotalinvestmentportfoliofortheFundhasgrownto$90.21msinceinceptionin2001.
Against a backdrop of a challenging operatingenvironment,FHLFMLwillcontinuetoexploreandreview investment opportunities for the Fund toensurethatourcompetitivenessismaintained.FHLFMLisdedicatedtoensuringthattheFHUTproductisaccessiblethroughoutthecountryasitcontinuestostrengthenourmarketingactivitiesinthevariousdivisions including theNorthern andWesternpartofFiji.
FHL FUND MANAGEMENT LIMITED
Na FHL FundManagement Limited, naminidia nilavo ni Fijian Holdings Unit Trust a vakaraitaka nirawata na tubu ni samusu oti na ivakacavacavae $0.85milioni ni vakatauvatani kei na $0.84 namilionienagaunavataniyabakisaoti.Enalomaniyabaki,evakaraitakanaivolavakamacalaniFHUTNo. 5 ka vakamuri tiko me yacova na 2018 ni savaadonianaReserveBankofFiji kavakaraitaki tukinanaveisauesoniproductniFHUT.Satubucakena vakatubuilavo ni tabana qo ena $90.21milionimetekivumaikenatauyavuena2001.Ena sotavi ni dredre, ena tomana tiko na FHLFML me vakasaqara ka vakaraica eso na sala nivakatubuilavobaletanaFundmetomanitikoganasasaga.EsoliananonaigunaFHLFMLmeraicanitaraiVitinaivoliniFHUTkanavakadeitakatikonakenamaketetakinikenaivolieVitiraraba.
100%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:UlaiasiTaoi(Chairman)
RobinYarrowSakeasiSeruCraigStrong
NouzabFareedCatherineGrey
FIJI TELEVISION LIMITED The last twelve months has seen the TelevisionCompanyundergomajorchangesbutdespitethis,theCompanyhas ensured that it acts consistentlywithinitsCorporateStatementsreflectingitsVision,Mission,Valuesandcorebusiness.
The year in review saw the pay television servicedivision, Sky Pacific, officially become a part ofDigicel Fiji Group.TheCompanyhadundergone acompletereviewandthesaleofSkyPacificbusinesswas a strategic decision which was done in orderto ensure that the company focuses on its corebusiness of Free-to-Air television business. EarlyJanuary2016,FijiTVconfirmedthatithadreceiveda deposit of PGK2million fromTelikom (PNG) Ltd(TPNG)lockingtheproposedtransactiontoacquire100%ofMediaNiugini Ltd (MNL).Thiswas sealedlater in themonthwhen FijiTV announced its fulldivestmentofshares inMNLtoTPNGaftersigningoffonthesaleagreement.
At this time of reporting, Fiji TV Strategic Plan iscurrentlybeingreviewedandwillbealignedtotheFHLGroupofCompanies.
InearlyJune2016,FijiTVhasbegantheprocessoflookingforanewhome.Thiswillseethecountry’sfirstcommercialtelevisionstationmovingoutofitscurrent20GorrieStreet locationwhich ithasusedasitsheadquarterssinceitsestablishmentin1994.
FIJI TELEVISION LIMITED
E na 12 na vula sa oti, e raica na kabana na FijiTelevision Limited (Fiji TV) na veiveisau lelevu,ia sa cakacaka tikoga vakaukauwa na kabani mevakaraitaka tiko nabibi ni nona“Rai ki Liu” kei nanona“Yalayala”mevakavotukanatakikinanaitovoninonaveiqaravivakabisinisi.
Ena loma ni yabaki vakailavo qo, sa yaco na SkyPacific me sa tiki ni kabani levu na Digicel (Fiji)Group. Sa veisautaki saraga na Fiji TV ena kenavolitaki na bisinisi ni Sky Pacific , ka vakayacorioqome rawa kina vua na kabanime vakanamatakinanona i tavi taumadasa ikoyamevakaraitakana i yaloyalo sega ni saumi. Ena Janueri 2016, savakadeitakakinaoFijiTVnisatauraeduanailavonivakadeiniveivoliePGK2namilionimainaTPNGmebaleta na gagadre ni kena voli 100%naMNL.Saqai vakadeitakina veivoli oqoenamuani vulaenanona sa kacivaka rarabana FijiTVna kena savolitakananonaivotavotaenaMNLkinaTPNGnisasainitakiotinaveiyalayalatiniveivoli.
Ena gauna e volai kina na i tukutuku oqo, eavakadikeva tiko na kabani na Fiji TV na nonaStrategicPlanmesalavatakeinakenaenakabanicokovatanaFHL.
Ena vula ko June 2016, sa tekivu o Fiji TV mevakasaqaraeduananonavalenivolavolavou.Oqomesaqaitokitanikinanaimatainisiteseniniretioyaloyaloenanodavanuamaina20GorrieStreetkadauvakatawanatumekenavalenivolavolaliumaina1994meyacovamainikua.
61.60%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:Col.ApakukiKurusiga(Chairman)
IowaneNaiveliNouzabFareedDeepakRathod
NaveenLaksmayaAjayPunjaUlaiasiTaoi
35FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
PACIFIC CEMENT LIMITED Thecompanyrecordedtotalrevenueof$38million,increase of 20.6% compared to FY15 and directlycontributed by high sales through local activitiesand export volumes. The Profit before Income taxwas$2.63million,whichisasignificantincreaseby97%compared toFY15. InFY16 total cement soldwas 150,544 tonnes compared to 126,642 tonnesinFY15,increaseof18.89%.FY16washighestsalestonnageinthehistoryofPCL.
PCLwill continue to control cost, be innovative intheproductionofcementandaggressivelygrowitsbusinessintheexportmarketandachieve90%localmarketshare.PCLisaworldclasscementproducerinthePacificregionandhasgearedupwithastrongstrategicplantocompetewithinthePacificIslands.
LIFE CINEMA LTD The 2016 financial year has provided manychallenges for the cinema to overcome, with ourlocalteamstillgettingtoknowthelocalmarketandthedemographicsoftheWestintheearlypartoftheyear.Wehavelearntagreatdealandhavestartedtoseemuchmoresuccessesandpositivegrowth.
We have spent a lot of time during the year finetuningourcustomerexperience,filmselectionandproduct range to provide a movie experience fargreater than what has been considered the normin Fiji. We are continually seeing more and morecustomersfromalloverFijitravellingtoexperienceourinnovativecinema.Theyearhasreleasedmanyspectacular movies with some amazing results attheboxoffice.
Weplan toopen twomultiplexes in thenext yearlocatedinLautokawith2cinemascreensandNakasiwith 3 cinema screens. This should improve ouroverallperformanceandprovideagreatercoverageforLifeCinemas.
With our committed local team we are optimistictoseecontinuedgrowthatthecinemasintheyearahead.
PACIFIC CEMENT LIMITED
Nalevuni lavocurumaiarawatanakabanie$38milioni,etubuena20.6%niraicivatakeinaFY15evakavumainauasivinivolivoliotaki,naveicakacakaeqaravieViti,keinalevunikenavakauIvanuatani.Na levuni tubuniberanimusuna ivakacavacavae$2.63milioni,etubuvinakaena97%niraicivatakeinaFY15.Na levunisimedeevolitakienaFY16e150,544nataniniraicivatakeina126,642nataniena FY15, e tubu ena 18.89%.Na volivolitaki enaFY16na tani simede levu tauduaena itukutukunibulaniPCL.
Ena tomana tiko na PCL na nonamusuka na isauni cicivaki ni cakacaka, yalo matuataki na buli nisimedekaqaravivakavinakanakabanienavakautikivanuataninasimedekeinarawatie90%nalevunisimedevoolitakieViti.NaPCLeduanakalasinisimede ka tiko sara e cake ena Pasifika ka tosoyacakenanonakalasinibulisimedemedeienaitutuetokakina.
LIFE CINEMA LTD
E solia na yabaki vakailavo ni 2016 e vuqa nabolebolekinavaleniyaloyalomevaluta,niratouseseganikilavinakatikonanodatoutiminicakacakanamaketeekekeinalewenivanuamainayasayasavakaraenairekivuniyabakiqo.Keitousakilaevuqanakakeitousatekivuraicanakavinakakeinatubu.
Keitousatauraevuqanagaunaenalomaniyabakimeraicivakavolekao iraeranavakayagatakana Iyaloyalo,mataqaliyaloyalomedigitakikeinakenaveimataqali meganiti na nodra kila o ira era nasarasara.KeitousaraiciiravakawasomanadausaraiyaloyalomainaveiyasaiViti,keitoulakomekeitouvakilananeitouvaleniyaloyalokeitounanumatiko.SavuqasaraiyaloyalovouerasakaumaiVitikasavakasakitinailavoerawakina.
Keitou nanumame dola e rua na vale ni yaloyaloena yabaki mai qo mai Lautoka ka rua na kenascreen.QoenavakavinakatakananeitouveiqaravikataranaLifeCinemaevuqanavanua.
Keitou nuidei ni ratou na qarava na neitou timiveiqaravinatubuvakailavoenavaleniyaloyaloenaveiyabakikatumai.
50.10%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
69.10%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:RatuAiseaWakaVosailagi(Chairman)
NouzabFareedPravinPatelVeeralPatelRahulAmin
IsikeliTuituku
Company Directors:IowaneNaiveli(Chairman)
NouzabFareedSurendraPatel
operatIonal report oF sUBsIdIarY CoMpanIestUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
36 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
operatIonal report oF sUBsIdIarY CoMpanIestUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
FHL PROPERTIES LIMITED The financials for the 2016 financial year had twosignificantimpactswhichresultedinFHLPhavingtorestateits2015accounts.ThemostsignificantwastheCompany’schangeofmethodofaccountingforlandandbuildingclassifiedasinvestmentpropertiesfromcostmodel to the revaluationmodel. Underthe revaluation model, after initial recognition,the investment properties will be measured atfairvalueatthedateoftherevaluation. Thelatestvaluation recorded the FHLP Portfolio at $36.18m(2015:$33.32m) which had a positive increase of$2.86m. During the year, the Company declareddividendstotaling$500,000fortheyear(2015:nil).
Thesecondmostsignificantchangewastheincreaseinauthorizedcapitalofthecompanyfrom$5millionto$9millionthiswasadirectresultoftheconversionof the$4m loan fromFijianHoldingsLimited. Theloanwas initially given by the parent company in2012 for the purchase of Ra Marama House fromFijianHoldingsPropertyTrustFund. The$4mloanwasconvertedto4millionordinaryshares.
Theoverall strongeroperatingperformanceof theCompanyinthecurrentfinancialyearwasattributedto maintaining a consistent high occupancy rate(averaging at 98%) throughout the year andrenewalsofexistingleasesforafurthertermforallourproperties.
During the year, FHLP undertook some significantupgrading works for all our properties totalingover $0.5m in electrical and plumbing upgrades.Ourupgradingprogramwillcontinueintothenextfinancialyearforallourproperties.
There has also been significant progress with theFHL Tower Project with the appointment of ourdesignteamandthecontinuousconsultationwithregulatory authorities for the necessary approvalson our proposed design. The Tower is expectedtobeastateoftheart15storeycommercialofficebuildingwithafewretailshopsontheGroundFloorandthreelevelsofparking.
The 2017 financial year looks to be exciting yetchallenging with the anticipation of the FHLTower project to commence construction and thecontinuation of the upgrading projects for all thebuildings.Wecontinue to remainoptimisticof theeconomic environment and have implementedstrategies tomaintain a competitive return to ourshareholders.
FHL PROPERTIES LIMITED
Nadaunilavoniyabakivakailavoni2016erasotavae ruana ka ka vakavuname raica tale vakaruananona I tikutuku ni lavo ni 2015. Na kena ka bibitaudua na veisau ni vakarau ni maroroi ilavomebaletanaqelekeinavalemerauokatimeIyaunivakatubuilavomainacostmodelkinarevaluationmodel. Ena revaluationmodel, na I sau vakailavoni yau ka vakatubuilavotaki ena raici na kena isauenagaunani revaluation.Nakena isauenagaunaqoenaFHPPortfolionatubuvakailavoe$36.18namilioni (2015:$33.32m) ka a tubu cake ena $2.86na milioni. Qo e vakaraitaka edua na veisau levuena tubu a rawa b era nimusu na ivakacavacavae$3.93milioni mai na $1.75 namilioni ena 2015.A vakaraitaka na kabani ena loma ni yabaki ni nasauminatubumewaseie$500,000mebaletanayabaki(2015:nil)
Naikaruaniveisaulevuoyanalevu nikabanieravakadonuienalomanikabanimaina$5milionikina$9namilioni,qoevakavumainaveisaudinaue$4namilionimainaFijianHoldingsLimited.Na loanqoasoliataumadamainatamanikabaniena2012baletanavoliniRaMaramamainaFijianHoldingsPropertyTrustFund.Na$4namilioniakereimaisaveisautakikina4milioninasea.
NacicivinakaniKabanienayabakivakailavoFY16avakavumaienakedratawanitikovakalevu,rautae98%enalomaniyabakikeinavakavoutakinilisienaveivaletaucoko.
E dua talega na toso vinaka ni FHLTower projectena kenadigitaki eduana timi vinakanidroini kadau vakasala ka ra kila vakavinakana veika edauvinakati.NavalenaTowerena taba15mevalenivolavola keina sona sitoani volivolitaki ena tabaerasara.
Na yabaki vakailavoni 2017 e nanumimeduanayabakieveiboleimesatekivutaranaTowerkeinakedra vakavinakataki na veivale ni kabani. Keitounuitakaninauasivicakenacakacakamevukeiiranataukeniseaenakabani.
100%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:SakiusaRaivoce(Chairman)
JohnO’ConnorNouzabFareed
ArunNarseySurendraPatel
37FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
operatIonal report oF sUBsIdIarY CoMpanIestUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
MERCHANT FINANCE LIMITED
Despitea challengingyear forFiji,MerchantFinanceLimited recorded a healthy interest income of $20.2million for Financial Year 2016 (FY16) compared to$18.9 million last year. This 7% increase in interestincomewas due to the rise in customer confidenceinourloanproductswhichresultedintheincreaseinloanbookby27%comparedtoprioryear.Theincreasewasalsodrivenbycompetitionwherewehadtooffercompetitive interest to keep our customers, attractnewcustomersandsupporttheirgrowingdemands.
To fund our increasing loan book, we had to offercompetitive term deposit rates to attract morecustomers. This resulted in the increase in interestexpenseby24%inFY16comparedtoprioryear.Halfwaythroughtheyearwealsoimprovedourprovisionmethodologyby increasingour security discountingfactor, which in turn raised our loan impairmentexpenseby103%fromprioryear.Theendresultwasaprofitof$9.39millionthisyearcomparedto$10.02millionpreviousyear.
Earlierthisyearthecountryexperienceddevastatingeffects of two (2) Tropical Cyclones Winston andZena. The cyclones tremendously affected customerrepayment ability and slowed down businessactivities. Theseconditionschallengedtheeconomyasawholeandmorespecificallythecompanyintermsofmanagementofarrears.ToassisttheGovernmentin the Cyclone Relief Merchant Finance did thefollowing:
• Offeredcustomers3months’repaymentholiday• Donatedschoolstationeries,schoolbagsto
affectedschoolsinRa• Donatedfood,clothes,andfinancialassistanceto
ouraffectedstaffs
Tocounteractthenegativeimpactoftropicalcyclones;we introduced four (4) new lending products underTradeFinancenamelyAgriTrade,TradeExport,TradeLocalandTrade Import inMarch2016.Theproductswere launched together with our new companynamechangingfromMerchantFinance&InvestmentCompany Limited toMerchant Finance Limitedwitha new logo and official colors of wealth green andgold.Wewere prompted to introduce the new loanproductsaswewanted toprovideasmuchfinancialassistance to support our customers, the generalpublicandassisttheeconomyrecoverasawhole.With4newproductsandafreshimageofthecompanyouraimistochampionrecoveryandnewbeginningsforourcustomers.
LookingaheadMerchantFinance’sstrategicdirectioniswellon-track.Wewillcontinuetorolloutour4newloan products in the market adding to our currentTradeFinanceportfoliothatiscurrentlyvaluedat$7masatJune2016.WealsoplantoopennewbranchesinSigatokaandRakirakitobringourservicesclosertoourcustomers.Theupcomingfinancialyear ishighlyanticipated tobe agoodyear forMerchant Finance.Ourdriveistokeepdeliveringexceptionalserviceandwewillcontinuetoimproveourcompetitiveedgetosatisfytheevolvingfinancialneedsofthepublic.
MERCHANT FINANCE LIMITED
Edua na yabaki dredre vei Viti na yabaki qo , ia naMerchantFinanceLimitedarawataeduanatubukeina ivakacavacavanidinaue$20.2milionienayabakivakailavoni2016niraicivatakeina$18.9milionienayabakisaoti.Natubuena7%nilavocurumaikeinaivakacavacavaavakavuenatubucakeninodrayalodei na neitou dauvolivoli ka ra taleitaka na veika edinautakikavakavunametosocakenivakacavacavanidinauena27%niraicivatakeinayabakiyanieliu.
Me vakailavotaki na neitou I vola ni dinau, keitounanuma me keitou solia edua na ivakacavacavavinakani“ termdeposit“kanadretamaievuqanadauvolivoli. Qo e vakavuna na tubu ni lavo kereimai na 24% ena FY16 ni raici vata kei na kena enayabakiyanieliu.Veimamaenalomaniyabakikeitousa vakavinakataka na kena qaravi me tosocake nailavo ra soliamai nadauvakatubuilavo ka na tosoyacakenaqaravivinakanilavodinautakimaiena103%mainayabakiyanie liu.Qaiyacomerawaenatubue $9.39milioni ena yabaki qo ni vakatauvatani keina$10.02milionienayabakiyanieliu.AsotavaoVitienaItekivuniyabakiqonavakacacani rua na Cagilaba, o Winston kei Zena.Vakaleqavakalevunasalaninodrasausaumioiraeradinautakiilavokaivakavunanabulagogonibisinisi.Naveikaqorivakaleqanabulavakailavonaleqakavakabibikinakabanienaqaravinidinauseganisaumi.Enakenavukeinamatanituenaveivukenicagilaba,asolianaMerchantFinance:
• veiirakeitouqaraviiramesolietolunavulameraceguvakalailainasausaumi
• vakailolomanaIvol;anivulienaveikoronivulimaiRa
• vakailoloma,nakakana,Isulu,keinaveivukevakailavoveiiranacakacakaenakabanietaraiiranaleqa.
Mewalinaleqakakautamainavakacacanicagilaba;keitou tekivuna e va na sala ni veivuke vakailavo nicakacakakayacananaAgriTrade,TradeExport,TradeLocalkeinaTradeImport.ErasolivakadinaunaivolivatakeinayacavounineitoukabanimeveisaumainaMerchantFinance&InvestmentCompanyLimitedkina Merchant Finance Limited vata kei na kena Ivakatakilakilavoukeinakenarokamekilaitanikina.
Ni da rai ki liu, keitou na tomana na tekivutaki nineitou4na ivolisolivakadinau enamaketemeokavatakeinatabananiTradeFinanacekakenaisauena$7menaJiune2016.Naneitouituvatuvamedolaeruana tabanavoumai SigatokakeiRakirakime rawanikauyanivakavolekananeitouveiqaraviveiirakeitouqaraviira.
80.00%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:IsikeliTuituku(Chairman)
EmitaiBoladuaduaNouzabFareedRobinYarrow
JoeTaoiArunNarsey
ViliameNaupoto
38 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
operatIonal report oF sUBsIdIarY CoMpanIestUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
BASIC INDUSTRIES LIMITED
FY16 was a record year for BIL in terms of bothRevenueandProfit.Revenuewasup35%fromFY15andmorethandoubletheannualrevenuerecorded3yearsago.FY16NetProfitafterTaxwasup36%onourbestpreviousresultrecordedwaybackin2006.
The successful year was attributed to favorablemarket conditions, major capital injection intoimproving production capacity & capabilityapproved by the Board, and an exceptionalperformance by our management team &employeesduringtheyear.
Activity in the local building & constructionindustry is currently at an all-time high since thelastpeakin2006,themajordriverbeingsubstantialcapital investment by Government into Roads& Infrastructure over the last 3 years. However,capitalizingonthefavorablemarketconditionshasnot been straight forwardbecause of a significantnumberofnewcompetitors thathaveenteredthemarket, especially from overseas. While this hasreduced our traditionalmarket share over the lastfew years, BIL has managed to maintain a steadygrowth in its business through focusing on thehigh-quality-high-value end of themarket as wellasventuringintonewmarketse.g.exports.InFY16,BILpostedarecord$15millionrevenueinexportofits locally manufactured construction materials toneighboringPacificIslandcountries.ThebulkofthisexportswenttotheMajorRoadUpgradingprojectin Kiribati and the upgrading of the Tarawa andFunafutiAirportRunwayProjects.
In FY16 BIL injected around $7million in capitalinvestments into replacement of old plant &equipment, increasing production capacity andestablishingnewproducts&services.Similarlevelsof capital investments are planned for FY17. Thisis a keycomponentof thecompany’s survival andgrowth in the long termandweacknowledgeourBoard ofDirectors for their strong confidence andgreatvisionforthebusiness.
Without the exceptional effort and sacrifice of theBIL Management Team and all of its employees,the 30% above budget performance recordedin FY16 would not have been possible. Our 300plusmember strong, fully local teamhave provenits capabilities in performing at the highest levelcompeting against international companies bothlocallyandinthePacific.
BIL’s forecast for FY17 is budgeted around a 10%growth from FY16, anticipating a continuingbuoyant local building and construction industrybutatthesametimemindfulofapossiblesaturationpointatanytimesoon.
BASIC INDUSTRIES LIMITED
EduanayabakinicavuIsausauenarawatubunayabaki vakailavo FY16- oya ena ilavo curumai keinatubu.Levucakenailavocurumaiena35%mainayabakivakailavoFY15,esiviakevakaruatakinailavo curumai ena tolu na yabaki sa oti. Na tubuni samusuna ivakacavacavaenaFY16e36%enayabakinineitourawakavinakaena2006.
NarawanatubuvinakaavakavumaienaItuvakivinaka ni makete, vakavinakataki na iyaya nicakacaka, na veitokoni ni Board kei na uasivi ninodra duavata na vakailesilesi kei ira na tamatacakacaka.
Enatabanani taravale,e tusaragaecakenakenalevuni veikaeqaravimevakaayacoena2006,evakavunaoqonauasivininonavakatubuilavonamatanitu ena caka gaunisala ena loma ni tolu nayabakisaoti.Segasotisaranivinakanavakanuinuiena ituvaki nimakete enagaunaqo, baleta ni satutalegaevuqanaveiqatienamaketenitaravalevakabibi na kena mai vanua tani. Dina ni sa maitoroyasobuqona iwiliwilini seaenamaketeenalomanivicanayabaki saoti, sa rawatanaBILmevakadeitaka tiko na nona tubu ena nona bisinisiena nona taicamatua tiko namakete erawa tubutikovakalevu,tosotikogananonasasagaenasonamaketevoumevakanavakauIvolikivanuatani.EnaFy16,acavuisausaukinaoBILenanonarawatae$15milioninailavobulacurumaienavolitakiniveikaecakagaeVitikinaveimatanituenaPasifika.LevutauduanaiyayaqoevakaukiKiribatimebaletanacakacakanigaunisala keinavakavinakatakiniraraniwaqavukamaiFunafuti.
Ena FY16, a cakacakataka o BIL e $15milioni enaveivakatorocaketakivounikedravakaisosomitakinamisinimakawakeinavolimainiledraisosomi.Enavakatalegaqonalevunicakacakanivakatubuilavome na vakayacori ena FY17 qo na sala ena rawani bula ka rawa tubu kina na kabani ena gaunasa tu mai liu. Keitouva kilanauasivininodratoulewa na Matabose ni Daireketa ena nodratou deienavakataulewakeinaraiyawabaletanabisinisi.Kevaka e sega na cakacaka vakauakauwa na timiniveiliutakiniBILkei irananonatamatacakacakakeaseganirawae30%natubuarawaenaFY16.Eravakadinadinatakinalewe300kasiviananeitoutamatacakacakadina enakaera rawata ka rawakinaniraveiqatikeiiranaveikabanimaivanuatanieratikoeVitikeinaPasifika.
NaraineiBILenaFY17etaketetakitikomerawae30%natubuenaFY16enakenananumininacicivakavinakatikonacakacakanitaravale,iaenaraicitale tikoga de namani vutu coqa na cakacaka nitaravale.
51.10%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:ViliameCegumalua(Chairman)
SakiusaRaivoceNouzabFareed
PravinPatelVeeralPatel
39FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
OPERATIONAL REPORT OF SUBSIDIARY COMPANIESTUKUTUKU MAI VEI IRA NA VEIKABANI COKOVATA
SOUTH SEA CRUISES LTD 2015/16wasayearof2distincthalvesforSouthSeaCruises.TradingwasverystrongfortheJuly2015toJanuary2016periodwithsolidgrowthinpassengernumbers forourSouthSeaCruisesbranded resortconnectionservices&daycruiseproductsoperatedthroughout the Mamanuca group of Islands.TropicalCycloneWinstonon20thFebruaryfollowedupbyTropicalCycloneZenainearlyAprilcausedasignificantdeclineinourpassengernumbersduetotheclosureofthe3largestresortsweserviceintheMamanucas. All 3 resorts closed immediately postTCWinston. Castaway Island Resort reopened 1stJune2016,Mana IslandResort reopened18th July2016&SheratonTokorikiisscheduledtoreopenon1st February 2017.TheMana IslandResort closurewas triggered by TCWinston. Normalised tradingconditions throughout the Mamanucas will onlyreturnonceSheratonTokoriki reopens in February2017.
OurAwesomeAdventures Independent traveller&Backpackermarketproductsoperatingthroughoutthe Yasawa Islands were less affected by resortclosurespostTCWinston.
OurBlueLagoonCruisesproductsoperatedaboardFiji Princess were also impacted by the weatherevents of earlier this year butwe stillmanaged toincreaseoccupiedcabinnightsby14% in2015/16over what was achieved for 2014/15. We areforecastingthatthiswillincreasefurtherfor2016/17.
SouthSeaCruisesandBlueLagoonCruisesachievedacombinedtotalsalesof$47.3m($45.2min2015)for theyearended30June2016 resulting inanetprofitafter taxof$4.6m($5.3m in2015).Our2016resultincludesimpairmentonthevalueofMystiquePrincessof$2.2m.
Theoutlookfor2016/17remainsverypositivewiththenewMalamalaBeachClubprojectanticipatedtobecompletedinearly2017followedbythedeliveryof2newferries,thefirstinMarch2017&thesecondinJune2017.
SOUTH SEA CRUISES LTD
Na yabaki 2015/16 sa dua na yabaki duatani kinana South Sea Cruses. Cici kaukauwa na bisinisibaletanaJiulai2015kinaJanueri2016e levukinana iwiliwili ni pasidia kina veivanua ni saravanuasa macala oti tu kei na soko siga dua ena yatuMamanuca.RauveimurimainacagilabaoWinstonkeiZenakarauvakalailaitakanaiwiliwilinipasidiaenavukunikedratousogoe tolunaotela lelevu.NaManaIslandResortaqaidolataleena18thJuly2016; na Sheraton Tokoriki ena qai dola ena 1 niVeverueri2017.Sanaqai cicivakavinakanawaqakinaMamanucaenagaunasadolakinanaSheratonTokorikienayabakitumai.
AsegasotinileqananeitouAwesomeAdventuresIndependent Traveller & Backpacker baleta naneitou makete ni saravanua e veiqaravi ena YatuYasawaeseganileqavakalevu.
Na neitou saravanua ena Blue Lagoon Cruises eqaravi enawaqana Fiji Princess a leqa talegaenavukunidrakicaenaitekivuniyabaki,iakeitourawatamekeitouvakalevutakao irameravakatawananacabinenabogiena14%ena2015/16.
RaurawatanaSouthSeaCruiseskeinaBlueLagoonCruises na nodrau volivolitaki ruarua $47.3 namilioni ($45.2milioni ena 2015) ena yabaki e maicava ena 30 ni June2016 ka rawa kina na tubu nimusuotinaivakacavacavae$4.6milioni($5.3mena2015).Naveikakeitourawataena2016eokakinanalutusobunisauniMistiquePrincessen$2.2m.
Naveikaelauraiena2016/17ninadaumakakevakanisanaotienaitekivuni2017naMalamalaBeachClubprojectkeinaruanawaqanivakalelevouenaMarch2017keinakenaikaruaenaJune2017.
100%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
Company Directors:ViliameNaupoto(Chairman)
AiseaWakaVosailagiNouzabFareed
RogerDoldChrisJacobsDixonSeeto
40 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
CoMMUnItY FeedBaCK
Eduawaleganatikiniqele,seganailavokavuqanakaetadrai,atekivutakaoPitaSeutinavitinanonaitikotikolailainisaravanua(backpackingresort)kasatikiniporokaramunisaravanuanikua.
RautaukenakacicivakaoSeutinavitikeinawatinaeduanaBaraviNukuVulaDiveResorttikoenaTikinaoNavitienaYatuYasawakatauraetolunaauamedayacokinaenawaqa.EsoliaveiiranaAwesomeAdventures na dausaravanua ena nodra dewayanuyanuenayatuYasawakeinayatuMamanucae27nayanuyanumeraraica.
AtekivuveiqaravinaWhiteSandyBeachResortena2004enaruaganaburevakaviti.TukunaoPitanitikogaveiraueduanamataumerautayakinanakauenavanuaoyametarakinanaburekeinaiyayaevicawale.
“Etekivugaenaneirausasagavakaveiwatini.Esegani tu vei kerau na lavo e neirau sasaga ga.Tekivumeduanabure.Nakagaetikoveiwakotikeirau,evakayagataki.Keirausacakavasaragametikovatanavalevatakeinavalenisili,keirautaragaduanaburevakavti.Keirau suretiElenoamemai raicanabure.NagaunavatagaoyasatekivutalegakinanaAwesomeAdventures.”
“A sega ni tu veikeirau edua na ilavo. Keirau satekivu samaka na vanua ka tara edua na burevakaviti.NisataraotikeiraukaciviElenoaNimacere(Mata ni Awesome Adventure) me lako mai kamai raicaka lewase rawame ra sa tekivucurumana dausaravanua. Sa tekivu mai keya na neirauveiwekanivakacakacakakeiAwesomeAdventures.”AtekivunaAwesomeAdventuresena2004keinaneitou veiwekani kei ira na itaukei na otela e Vitisa tekivu me soli eso na veidinadinati kei ira nasaravanua. Na cakacakavata qo sa tekivu kina nakenadolaesonanodabisinisinaitaukeiniqelekaravakacakacakatakikinaesonalewenikoro.
Maina ilavoee rawamai na resort, sa rawakinaveiPitamevakautirauonawatinakeinaluvedrauyalewa kina koronivuli ni vuli vakasaqa ena FijiNational University, volia e 8 na eka na qele eLautoka ka vakana bulumakau ka teitei kina, teikakanadraudraukadauvakaumelakivakayagatakienaresortenavakasaqa.
Me kena ikuri, o au kei na watiqu keirauvakacakacakataki ira eso na itabagone mai Kesekei na koro voleka.Keirau biuti ira ena veitabanataucokoenaresortmerawaniravulicameralewavakamatau na nodra gauna, nodra ilavo kei nanodraqaravinavulagi.Qonaivakarauniveisolisoli.”Na Awesome adventure Cruises edua na taba niSouthSeaCruiseskaveiqaravienaIkelekeleniwaqamai Denarau ka qarava na soko yacana na ladeyanuyanu(islandhopping)dewakinaveiyanuyanuenavanuaeratikokinanaresortskeinasokosigatolukinaYatuYasawa.
NaSouthSeaCruisesenonavakatabakiduanaFijianHoldings Limited ka veiqaravi ena vuku ni kenavinakatimeravakaitavitotolonaitaukeienabisinisikavakadeitakananodraitutunibulavakailavo.
Withonlyapieceofland,nomoneyandpocketfulofdreams,56yearoldPitaSeutinavitistartedhisveryownbackpacking resortwhich today is part of anislandhoppingprogramme.
Seutinaviti andhiswifeownand runWhite SandyBeachDiveResortwhichissituatedintheDistrictofNaviti in theYasawa Islandsand takesover3hoursto reach by boat. Awesome Adventures throughits islandhoppingpackageallowstouriststotravelthrough the Yasawa Islands and the MamanucaIslands,visitingatotalof27islandswithinthetwogroups
WhiteSandyBeachResortstartedin2004withonlya traditionalFijianbure.Pita reveals that theyonlyhad amachetewhich they used to clear the landwhich was the site for a traditional bure with thebasicamenities.
“We did not have anymoney at all.We started toclearthelandandbuildatraditionalFijianbureandafter itwascompleted,wecalledElenoaNimacere(Awesome Adventure community rep) to comeand have a look at it and decidewhether touristscouldstartvisiting.Andour long relationshipwithAwesomeAdventuresbegan.”
AwesomeAdventuresstarted in2004andthroughpartnerships with local hoteliers started to offervariouspackagestotourists.Todaythispartnershiphasseenmanylocallandownersopenuptheirownbusinessesandalsoseeemploymentofmanyinthevillagers.
Through money earned from the Resort, Pita hasbeenabletosendhiswifeanddaughtertoattendcateringclassesatFijiNationalUniversity,purchase8acresoflandinLautokawherehegrazescattleandgrowsvegetableswhichare then sentback to theislandtobeusedintheResortmenu.
“Apartfromthis,mywifeandIemployyouthsfromthe village (Kese) and surrounding areas. We putthem through all the departments in the Resortandthustheylearnhowtomanagetheirtime,theirfinancesandalsohowtoattendtoguests.Thisisourwayofgivingback.”
AwesomeAdventuresCruises is abranchof SouthSea Cruises which operates from Denarau Marinaand offers packages such as island hopping,transfers between resorts as well as 3 day cruisesaroundtheGroup.
SouthSeaCruisesiswhollyownedbyFijianHoldingsLimitedwhich operateswith themain purpose ofacceleratingtheparticipationof indigenousFijiansinthecommercialsectorandindoingso,enhancetheirsocioeconomicstanding.
41FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
report on assoCIate CoMpanIes and otHer InVestMentsTUKUTUKU MAI VEI IRA NA VEIKABANI COKOVATA
NEWWORLD LIMITED The financial year 2016 was challenging for thecompany.
The competitiveness and other challenges ofretail industry are ever increasing in Fiji and thecompany is making all out efforts to outperformthemwhicharereflectedintheresultsachievedbytheCompany.TheCompanypostedan increase insalesof15.19%andaposttaxnetprofitof$3.91m.Themanagement is confident of posting a betterperformance in terms of sales and profits in FY17basedonitscurrentbusinessplansandstrategies.
TakingintoaccounttheimpressiveperformanceofIGA Stores, Savusavu Storewas opened as an IGAExpressStoreinJuly2015.Inaddition,theCompanyis to open another IGA store in Greig St, Suva inNovember2016.Thesenewstoresareexpectedtoattractmorecustomersbyofferingwidthanddepthin product range besides unmatched customerservicesandalsocontribute inamajorway to theCompany’stoplineandbottomline.
The Company will close its Labasa store in thepresent premises; however it is vigorously lookingforalternativesuitablelocationtore-startafreshattheearliestinLabasa.
Inadditiontopursuingotherinvestmentandgrowthopportunities,themanagementcontinuestoinvestintosystemsandprocessesimprovementmeasures,togetherwithskillupgradingofitshumancapitalbycontinuingtohireexperiencedandprofessionals,tooptimize itsoperationalefficiencysoas toprovidegood returns toall stakeholders.Asa strategy, theNewworld Management has strategically retainedandploughedback,aportionofitsprofits,intothebusinessbyinvestinginnewprojectsandinitiatives.Thesenewprojectsand initiativesareexpected toturn up higher returns for the shareholders in thenear future.Themanagement is likely to continuetoadoptsuchmeasuresinfutureasandwhensuchopportunitiesarise.
NEWWORLD LIMITED
Asotavanakabanieduanabuladredreenayabakivakailavoni2016.
Na bula ni veiqati kei na so tale na bolebole enabisinisi ni volivolitaki e toso cake sara e Viti katovolea vakalevu na kabani me tubu siviti ira nanonasasaga.Avakaraitakanakabaninitosocakenanonavolivolitakiena15.19%ka rawatana tubue $3.91m ni musu oti na ivakacavacava. Ratouvakaraitakanaveiliutakininarawataeduanatubuvinakaenavolivolitakikeinatubuenayabakivakailavo2017raicimainalalawanituvatuvanibisinisi.
NiraicinauasivinirawatubuniIGAsitoa,nasitoaadolavimaiNasavusavuadolamevakaeduanalGAExpressstoreenaJiulai2015.EnadolavanakabanieduatalemekenaikurinilGAenaGreigSt,SuvaenaNoveba2016.Enuideinailiuliuninavakatolutakinauasivininonarawakaekeya.
Naveisitoavouqoeranuitakiniranadretiiramaivakalevu na dauvolivoli ena vuku ni vuqa na kavolitakikinakanarogokarawatubukinanakabani.EnasogotananonasitoamaiLabasanakabanikasavakasaqara taleeduanavanuavouenaduanagaunatotoloduadua.
Me ikuri ni nona vakasaqara eso na gaunisala nivakatubuilavo, ra vakavulici vakavinaka na tamatacakacaka,tauritaleesomaituba,mevukeanacicivinakani rawa tubu. Sa nanumana veilutaki enaNewWorldmevakayagatakaesonanonatubumevakatubuilavo ena so na projects vou. Na sasagavouenarawatamainatubu levumebaleti iraeraseaenakabani. Sananumanakabanime tomananavakasamaoyaenagaunamaimuri.
15.40%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
42 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
report on assoCIate CoMpanIes and otHer InVestMentstUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
GOODMAN FIELDER (FIJI) LIMITED FijianHoldingsLimitedisashareholderinGoodmanFielder(Fiji)Limited,whichistheholdingcompanyof Goodman Fielder International (Fiji) Limited(GoodmanFielder).
Goodman Fielder is one of Fiji’s leading foodmanufacturers with a portfolio of iconic andtrusted brands, specializing in quality poultry, ice-cream,snackfoods,stock feedandconsumer foodproducts. The Company is proud to have beenproducing “Fijian Made and Grown” products foroverfourdecades.GoodmanFielder’skeybrandsarehouseholdnamesincludingCrest,Tuckers,Twisties,MeadowLea,MeadowFreshandPraise.
Poultry remains the biggest revenue driver forthe business followed by ice-cream and snacks.TheCompany continues to enjoy thenumberonebrand positionwith excellent growth in these keycategoriesoverthelast12months.
Aspartofourongoingcommitmenttogrowthanddevelopment, Goodman Fielder has also investedheavily in sourcing and developing new productcategories designed to expand beyond traditionalfoodcategoriesandoffercomplementaryproductsto health conscious Fijians. New product rangesinclude Health and Sports supplements like wheyprotein, breakfast cereals and frozen yoghurtproducts,tonamebutafew.
For generations, thousands of Fijians have turnedtoGoodmanFielder’swell knownFijianMadeandFijianGrownproductstodeliveressentialfooditemsfromthemomenttheywakeup,untilthemomenttheygotosleep.
Today, Goodman Fielder continues this proudtradition and is committed to continue toconsistentlydeliverhighqualityhealthyproductstoeveryhousehold,ineveryvillage,everysingleday.
GOODMAN FIELDER (FIJI) LIMITED
NaFijianHoldingsLimitedetauriseaenaGoodmanFielderInternational(Fiji)Limited(GoodmanFielder)ka kena i liuliu na Goodman Fielder International(Fiji)Limited.
NaGoodmanFieldereliuduaduaveiiranadaubulikakanaeVitikavakayagatakanaivakatakilakilakilailevu ka volitakana ice-cream, toa, kakana kilai nasnacks,kedrakakananamanumanu,keinakakanae baleta na tamata. E dokai na kabani ena nonavolitakanaivoliebuligaeVitiena40nayabakisaoti.EkilaienaveivalenaivolineiGoodmanFielderme vaka na Crest, Tuckers, Twisties, Meadow Lea,MeadowFreshkeinaPraise.
Eivolirawailavolevutauduakinabisinisinatoakataravayaninaice-creamkeinasnacks.Tomanatikonanonamarautakanakabaninanona i volinabaduakeinatubulevumaivei irananonaivolienaloma ni 12 na vula sa oti. Na Goodman Fielder edauveivakacakacakatakivakalevuenavakayagatakini neitou“GFWay” ka raica talega namaroroi nikakanakenaituvakiuasivi,OH&S.Sadedenanonakilainakabanienanonabulianakakanavinakakeinakenamaroroi,vakadeitakaenanonatauratunaISO9001:2008keinaHCCP.
Me tiki ni neitou veiqaravi kina bula kei naveivakatorocaketaki, sa vakatubuilavo talegavakalevunaGoodman Fielder ena kaumai kei nabulinisonaivolivouebulimesiviayaninakakanaekekasoliamekenaikurinaveikaerataleitakaeViti.Kakanavouesoeokatikinanaveikamevakaukauataki ira nadauqito vakanabreakfast cereal,frozenyoghurtmevukeanaprotein.
10%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
43FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
MARSH LIMITED MarshLimitedremainsthe largestand leadingriskconsultingandinsurancebrokingfirminFijiandispart of the global Marsh & McLennan Companies(MMC) which is listed on the New York StockExchange. It comprises of over 60,000 colleaguesgloballywithpresenceinover130countries.
Marshcreates tailored riskand insurancesolutionsfor its clients and goes beyond the traditionalinsuranceprogramdesignandplacementandusethe most effective blend of risk mitigation, risktransfer andadvanced riskfinancing that canhelpto increase our clients revenue growth, enhancenetincomeandstrengthentheirbalancesheet.Weprovide risk management advice, risk consultingand insurance program management services toa wide range of businesses, government entitiesand professional service organizations around thecountry. Despite a very competitive environmentMarsh continued with its strong financialperformance.BehindthissuccessandourenviableclientbaseisourinvestmentinourhighlytalentedandexperiencedFijistaff.
We had experienced a very soft insurancemarketin 2015, however following Cyclone Winston,insurers are looking more closely at MaterialDamage/Business Interruption programs. Ratereductionsarestillachievableforclientswithgoodclaimsexperience.Marshwill continue tohelpourclients thrive and reap the benefits of the currentenvironmentaswellasprotectthe interestsofourshareholders.
GOLDEN MANUFACTURERS LTD Golden Manufacturers Limited continues tomaintainitspositionasmarketleaderincorrugatedpackaging solutions in Fiji and South PacificRegion. The Company services a wide variety ofmulti-national and local businesses with state ofthe art equipment. Manufacturing facilities haveequipmentforthemanufactureofcorrugatedboardandconversionintopaperboardproducts.
Company is in the process of strengthening itsorganization structure, market share and revenuewhile ensuring that existing customer base ismaintained.Companieshavesuccessfullyachieveditsbudget inyear2015andalso intendtoachievetheirprojectedforecastforthecurrentfinancialyearendingDecember2016.TheCompanyiscontinuallyworkingoninnovativewaystoraisethestandardoftheirserviceandimprovetheirpackagingtoensurethesuccessofcustomers’brands.
TheCompany is currently about to introduce a 11colourlabelmanufacturingpressinthelastquarteroftheyear.Theproposedintroductionofthislabelprinting operationwill allowGML to offer awiderrangeofservicestoitscurrentcustomerbaseaswellascreatingnewexportopportunities intheregionincludingAustraliaandNewZealand.
MARSH LIMITED
EdeitikooMarshLimitednanonaitutunitabanalevu ka liu taudua ena veiqaravi ni ririko maina qaravi ni inisua e Viti, ka tiki talega ni Marsh& McLennan Companies (MMC) e vuravura katekivutaki mai Amerika ka tabaki ena New YorkStockExchange.Eraokavatakeina siviae60,000eracakacakavataenaveiyasaivuravura enalomani130namatanitu.
E vakarautaka o Marsh na iwali ni ririko vivinakamebaleti iraeqaravi irakasegawaleganiqaravana veika baleta na inisua, e vakarautaka na iwalini vakalailaitaki ni ririko, kena tokitaki kei na kenavakarabailevutakimevukeanatubuninodrailavobulacurumaikavakadeitakananodraitutunilavo.E tuveikeitouna ivakasalamevalutanaririko,naivakasalaniveiqaravienavuqanatabanibisinisikeinaveitabananimatanitukaratueViti.Enavukunikila vakacakacakaera tuenaveitabanae rawaveiMarshmetauramainakilaeratuenaveitabanamainaveiyasaivuravura.
Keitouavakilaeduanamaketeniinisuavinakaena2016,karaicavakavolekanavakacacaniveivalekeinabisinisiavakayacoranaCagilabaoWinston.EnatomanatikooMarshmevukeiiranaitaukeiniseameratoso.
SatekivutakaoMarshesonabisinisilalaimevukeiira eso ka ra via tekivutaka na nodra bisinisi. Nanodra i curucuru e rawarawame baleta na nodrabisinisilalai.
GOLDEN MANUFACTURERS LTD
EtomanadeitikonaGoldenManufacturingLtdnanona i tutu enamaketeni volitaki kateni buli enapepaeVitikeinaPasifika.Eveiqaravinakabanikeiira na i taukei ni bisinisi eViti ka totokanamaweni ligadra ena i yaya ni cakacaka vinaka e bulia. Etu talegaenakabaniesona iyaraginibulikateni.(Corrugated).
SavakaukauwatakatikonaGoldenManufacturingnanonaituvatuvaniveiliutakienamaketenivolitakiseakeinailavobulacurumai,kavakadeitakatikonanodramaroroioiraeradauvolivolitudeitukina.Erawata vavinaka na nona ituvatuva vakailavo ena2015, ka tume rawatananona lalawaena yabakivakailavomaicavaenaTisaba2016.Sasasagatikonakabanamekuneataleesonasalavoumevueticakekinanaituvakininonaveiqaravikeinabuliyayamevakadeitakanatotokaninodaivakatakilakilanidauveivoli.
Savakarautakatikonakabanimetekivutakae11narokaivolatabakienaiotiotinivanavulaniyabakioqo. Na kena vakarautaki tikona11na rokaoqoenarawakinaveiGMLmesoliaevuqanamataqaliveiqaraviveiiranonadauvolivolienagaunaqokavakataleganabulinisonaivolivoumevolitakienaPacifikavakatalegakinakoNiusiladiKeiOsiterelia.
25%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
30%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
report on assoCIate CoMpanIes and otHer InVestMentstUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
44 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
report on assoCIate CoMpanIes and otHer InVestMentstUKUtUKU MaI VeI Ira na VeIKaBanI CoKoVata
PERNIx (FIJI) LIMITED Since the addition of Pernix (Fiji) Ltd to the FijianHoldingsfamilyinNovember2014,ourrelationshipcontinues to grow not only in Fiji but throughoutthe Pacific Rim. The latest Pacific Rim expansionis in Papua New Guinea, where Pernix Pacific hastakenoverthemanagementandoperationofBasicIndustries(PNG)LimitedBatchPlantinBaruni,PortMoresby.Pernix will also embark on the development ofthirteenacresoflandwherethebatchplantisbased.Pernix is also actively involved in tendering for anumber of power generation opportunities withthenationalgrid,PNGPower,andwithotherseveralprivate entities. Pernix set to grow significantly inPapua New Guinea and we have no doubt it willprovideexcellentreturnstoFHL.Aftermakinglossesforseveralyears,FHLisconfidentofrecoupingtheselosesand realizeprofitswithinavery shortperiodoftime.
Pernix Fiji continues to grow and will embarkon other opportunities in construction, powergenerationandfacilitiesmanagement.
PERNIx (FIJI) LIMITED
Mai na gauna e a vakacurumi kina o Pernix FijiLimited ena Noveba 2014 me lewe ni vuvale nikabani cokovata na Fijian Holdings, e a daumakacake tikoga na neitou veiwekani sega walega eVitiiaetetevataleganawasaPasifika.NaiotiotinivakatububisinisiniPernixenawasaPasifikaetaraiPapuaNewGuinea,salakitaurasarananaveiliutakikeinacicivakiniBasicIndustriesLimitedBatchPlantmaiBaruni,PortMoresby.
EnatosoyayaninaPernixnakenavakatorocaketakini 13 na eka na qele me vakaduri kina edua namisininiqaqisimede.NaPernixevakaitavitalegaenakenadautedatakiesonaveikavakalivalivaenaveiwekani vakamatanitu, na PNG Power kei na sotalenakabanitugalala.SavakarautumenatubuvakalevuenalomaiPapuaNewGuineaoPernixiakakeitouseganivakataratututakaninasolia lesumaiveiFHLnatubudaumaka.Niotievicanayabakinikenalusinatubuvakailavo,enuideioFHLninavakasukailesutalenalusinitubuvakailavoenaduanagaunalekalekagaqo.
EnatosoyatikogakoPernixFijimetubuvakavinakaka na sasaga yani kina veika tale esome vaka nataravale,nacakacakatakinilivalivakeinaveiliutaki.
21%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
FIJIAN HOLDINGS UNIT TRUST FijianHoldingsUnitTrustisanIncomeandGrowthFund,managedbyFHLFundManagementLimited,awhollyownedsubsidiaryofFHL.Duringtheyear,FHUT portfolio grew by 17% from $77.07 millionto$90.21millionandthetotalnumberofunitsonissue, surpassed 116million correspondingly by30th June 2016. Additionally, the Reserve Bank ofFijiapprovedtheFHUTProspectusIssueNo.5whichentailed the changes to the product, such as thechangeofdividendpayoutperiodtothreetimesayear, as compared to twice a year since inception.Theminimumentryrequirementwasalsoreducedto 50 units, positioning the FHUT product as arelativelyaffordableinvestmentproducttoopen.
ForFY2016,FHUTpaidoutatotaldividendof$3.4m.TheoutlookforthenewfinancialyearfortheFundremains challenging as we anticipate competitionto intensify with new entrants and new productsfrom other financial institutions. However, theFundManagerwillcontinuetoexploresustainableopportunities to maximise competitive returns toourunitholders.
FIJIAN HOLDINGS UNIT TRUST
Na Fijian Holdings Unit Trust edua na tabana niciqomanailavoecurumaikeinakedravakatuburika qarava na FHL Fund Management Limited, kanonavakatabakiduanatabanaqonaFHL.Enalomaniyabaki,a tubunaFHUTena17%maina$77.07milioni kina $90.21 milioni kei na levu taucokoni uniti volitaki sa sivia e 116 na milioni ena 30June2016.Kenaikuri,savakadonianaReserveBankof Fiji na ivola vakamacala FHUTProspectusNo. 5katuelomanaveisauesomevakanasauminilavomewaseivakatoluenaveiyabakimevakatauvatanienasausaumivakaruaeliu.Naiwiliwililailaitauduaegadrevimecurukinaeduaoyamesaumae50naunits.
EnaFY2016asaumanaFHUTna ilavomewaseie$3.4milioni. Na raikinayabakivouvakailavoenaveboleikakeitounuitakaeduanaveiqatimaiveiiranakabananilavo.IaenavakaraicanaFundManageresonasalavoumerawakinavakalevunailavoeratauranaitaukeiniunits.
25.20%FijianHolding’sShareholdingWaseniSeaenaKabaniqoa
taukenanaFHL
45FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016 45FIJIANHOLDINGSLIMITEDANNUALREPORT2016
Directors’Report 46Tukutuku Ni Daireketa
StatementByDirectors 48Nodratou Rai Na Daireketa
IndependentAuditReport 49Tukutuku Ni Dau Ni Fika
StatementsofProfitorLossandOtherComprehensiveIncome 50Tukutuku Ni Rawa Ka Vakailavo
StatementsofFinancialPosition 51Tukutuku Ni Yau ni Kabani
StatementsofCashFlows 52Tukutuku Ni Lavo Qaqai
StatementsofChangesinEquity 53Tukutuku Ni Veisau Ena Akaude Ni Taukei Ni Kabani
NotestoandFormingPartoftheFinancialStatements 55Vakamacala Ka Lewe Talega Ni Tukutuku Vakailavo
ListingrequirementsoftheSouthPacificStockExchange 100Tukutuku E Vinakati Mai Na South Pacific Stock Exchange
ProxyForm 103
Fijian Holdings Limited and Subsidiary CompaniesFINANCIAL STATEMENTS
46 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
InaccordancewitharesolutionoftheBoardofDirectors,thedirectorsofFijianHoldingsLimited(‘theCompany”)presenttheirreporttogetherwiththefinancialstatementsoftheCompanyandtheFijianHoldingsLimitedGroup(“theGroup”)beingtheCompany,itscontrolledentitiesandassociatesfortheyearended30June2016.
1. DIRECTORS
ThefollowingweredirectorsoftheCompanyatanytimeduringthefinancialyearanduptothedateofthisreport:
2. PRINCIPAL ACTIVITIES
Theprincipalactivityof theCompany is investment.Theprincipalactivitiesof theGroupare theproductionandsaleof cement,concreteandconcreteproducts, investmentandrentalofproperty, fundmanagement,stockbroking,asset, trade, loanfinancingand acceptance of term deposits, provision of sea transportation services and boat charters, cruise ship operations, commercialfreetoairbroadcastingservices,sellingandservicingofradio,televisionandcommunications,retailingandwholesalingofgeneralmerchandise,andownersandadministratorsofproperties.
3. TRADING RESULTS
TheprofitafterincometaxoftheGroupattributabletothemembersoftheCompanyfortheyearended30June2016was$13.656million(2015:$10.652million)andfortheCompanywas$20.851million(2015:$12.921million).
4. RESERVES
ThedirectorsrecommendthatnoamountsbetransferredtoreserveswithinthemeaningoftheseventhscheduleoftheCompaniesAct1983.
5. DIVIDENDS
Thedirectorsdeclaredafinaldividendof$3.351million(2015:$3.351million)for“A”classand“B”classshareholdersfromtheprofitsfortheyearended30June2015.TheCompanypaidaninterimdividendof$3.656million(2015:$3.351million)for“A”classand“B”classshareholdersduringtheyear.Totaldividendspaidfortheyearended30June2016amountedto$7.007million(2015:$6.702million).
6. BAD AND DOUBTFUL DEBTS
ThedirectorstookreasonablestepsbeforetheCompany’sandtheGroup’sfinancialstatementsweremadeouttoascertainthatallknownbaddebtswerewrittenoffandadequateallowancewasmadefordoubtfuldebts.
Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceswhichwouldrendertheamountwrittenoffforbaddebts,ortheamountoftheallowancefordoubtfuldebts,inadequatetoanysubstantialextent.
7. CURRENT ASSETS
ThedirectorstookreasonablestepsbeforetheCompany’sandtheGroup’sfinancialstatementsweremadeouttoascertainthatthecurrentassetsoftheCompanyandoftheGroupwereshownintheaccountingrecordsatavalueequaltoorbelowthevaluethatwouldbeexpectedtoberealisedintheordinarycourseofbusiness.
Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceswhichwouldrenderthevaluesattributabletothecurrentassetsinthefinancialstatementsmisleading.
8. SIGNIFICANT EVENTS
i. DuringtheyearFijianHoldingsLimitedsoldits100%shareholdinginBasicIndustries(PNG)Limitedforacashconsiderationof$0.758million.
ii. DuringtheyearFijiTelevisionLimitedsoldits100%shareholdinginMediaNiuginiLimitedforacashconsiderationof$13.679million.
ViliameCegumalua
ViliameNaupoto appointedon11August2015
AiseaWakaVosailagi appointedon11August2015
JohnO’Connor appointedon11August2015
dIreCtors’ reporttUKUtUKU nI daIreKIta
FinancialStatements30June2016
IowaneNaiveli Chairman
UlaiasiTaoi
SakiusaRaivoce
IsikeliTuituku
47FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
dIreCtors’ report - Cont’dtUKUtUKU nI daIreKIta
FinancialStatements30June2016
8. SIGNIFICANT EVENTS - cont’d
iii. DuringtheyearFijiTelevisionLimitedsolditspaytelevisionservicedivision,SkyPacific,foracashconsiderationof$3.383million.
Asat thedateof this report thedirectorsarenotawareofanyother significantevents,other than thosealready included in thefinancialstatements.
9. RELATED PARTIES TRANSACTIONS
IntheopinionofthedirectorsallrelatedpartiestransactionshavebeenadequatelyrecordedinthebooksoftheCompanyanditssubsidiariesandreflectedintheattachedfinancialstatements.
10. OTHER CIRCUMSTANCES
Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesnototherwisedealtwithinthisreportorfinancialstatementswhichrenderanyamountsstatedinthefinancialstatementsmisleading.
11. UNUSUAL TRANSACTIONS
Theresultsof theCompany’sandtheGroup’soperationsduringthefinancialyearhavenot, in theopinionof thedirectors,beensubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnatureotherthanthosedisclosedinthefinancialstatements.
12. EVENTS SUBSEqUENT TO BALANCE DATE
Therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsoftheCompany,toaffectsignificantlytheoperationsoftheCompanyandtheGroup,theresultsofthoseoperations,orthestateofaffairsoftheCompanyandtheGroup,insubsequentfinancialyears.
13. DIRECTORS’ INTERESTS
InterestsofdirectorsandanyadditionstheretoduringtheyearanduptothedateofthisreportintheordinarysharesoftheCompanyareasfollows:
NodirectoroftheCompanyhas,sincetheendofthepreviousfinancialyear,receivedorbecomeentitledtoreceiveabenefit(otherthanabenefit included inthetotalamountofemolumentsreceivedordueandreceivablebydirectorsasshown inthefinancialstatements)byreasonofacontractmadebytheCompanyorrelatedcorporationwiththedirectororwithafirmofwhichheisamember,orwithaCompanyinwhichhehasasubstantialfinancialinterest.
ForandonbehalfoftheBoardofDirectors
Datedthis18thdayofAugust2016.
Chairperson Director
Beneficially Non-beneficiallyAdditions Holding Additions Holding
SakiusaRaivoce - 100,000 - -UlaiasiTaoi - 2,311 - -IsikeliTuituku - - - 20,767,688ViliameCegumalua - - - 21,160,977ViliameNaupoto–appointed11August2015 - - - 20,760,977AiseaWakaVosailagi–appointed11August2015 - - - 20,760,977JohnO’Connor–appointed11August2015 - - - 20,760,977
48 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
stateMent BY dIreCtorsnodratoU raI na daIreKIta
FinancialStatements30June2016
Intheopinionofthedirectors:
(a) theaccompanyingstatementsofprofitorlossandothercomprehensiveincomeoftheCompanyandoftheGrouparedrawnupsoastogiveatrueandfairviewoftheresultsoftheCompanyandoftheGroupfortheyearended30June2016,
(b) theaccompanyingstatementsoffinancialpositionoftheCompanyandoftheGrouparedrawnupsoastogiveatrueandfairviewofthestateoftheaffairsoftheCompanyandoftheGroupasat30June2016,
(c) theaccompanyingstatementsofchangesinequityoftheCompanyandoftheGrouparedrawnupsoastogiveatrueandfairviewofthemovementinshareholders’fundsfortheyearended30June2016,
(d) theaccompanyingstatementsofcashflowsoftheCompanyandoftheGrouparedrawnupsoastogiveatrueandfairviewofthecashflowsoftheCompanyandoftheGroupfortheyearended30June2016,
(e) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanyanditssubsidiarieswillbeabletopaytheirdebtsasandwhentheyfalldue;and
(f ) allrelatedpartytransactionshavebeenadequatelyrecordedinthebooksoftheCompanyandtheGroupandreflectedintheattachedfinancialstatements.
ForandonbehalfoftheBoardofDirectorsbyauthorityofaresolutionoftheDirectors.
Datedthis18thdayofAugust2016.
Chairperson Director
49FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Independent aUdItor’s report FinancialStatements30June2016
TO THE MEMBERS OF FIJIAN HOLDINGS LIMITED
Report on the Company and Consolidated Financial StatementsWehaveauditedtheaccompanyingfinancialstatementsofFijianHoldingsLimited(the“Company”)andtheconsolidatedfinancialstatementsoftheCompanyanditssubsidiaries(the“Group”),whichcomprisethestatementsoffinancialpositionasat30June2016,andthestatementsofprofitorlossandothercomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes1to36.
Directors’andManagement’sResponsibilityfortheFinancialStatementsDirectors andmanagement are responsible for thepreparationof financial statements that give a true and fair view in accordancewithInternationalFinancialReportingStandards,andforsuchinternalcontrolasthedirectorsandmanagementdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’sResponsibilityOur responsibility is toexpressanopiniononthesefinancial statementsbasedonouraudit.Weconductedouraudit inaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterialmisstatement of the financialstatements,whetherduetofraudorerror. Inmakingthoseriskassessments, theauditorconsiders internalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectorsandmanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
OpinionInouropinion,theCompanyandGroupfinancialstatementsgiveatrueandfairview,inallmaterialrespects,ofthefinancialpositionofFijianHoldingsLimitedandtheGroupasat30June2016,andtheirfinancialperformance,changesinequityandcashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandards.
ReportonOtherLegalandRegulatoryRequirementsWehaveobtainedalltheinformationandexplanationswhich,tothebestofourknowledgeandbelief,werenecessaryforthepurposesofouraudit;
Inouropinion,
i) properbooksofaccounthavebeenkeptbytheCompany,sofarasitappearsfromourexaminationofthosebooks;
ii) thefinancialstatementsareinagreementwiththebooksofaccount;and
iii) tothebestofourinformationandaccordingtotheexplanationsgiventousthefinancialstatementsgivetheinformationrequiredbytheFijiCompaniesAct,1983inthemannersorequired.
18thAugust,2016 KPMGSuva,Fiji CharteredAccountants
KPMG,aFijipartnership,ispartoftheKPMGInternationalNetwork.KPMGInternationalCooperative(“KPMGInternational”)isaSwissentity.
50 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
stateMents oF proFIt or loss and otHer CoMpreHensIVe InCoMe tUKUtUKU nI raWa Ka VaKaIlaVo
YearEnded30June2016
(Restated)*
ContinuingoperationsRevenueOperatingrevenue 35 293,552 256,099 26,078 26,465Otherincome 5(a) 5,203 4,894 201 431
298,755 260,993 26,279 26,896ExpensesChangesininventoriesoffinishedgoodsandworkinprogress (91,162) (81,896) - -Rawmaterialsandconsumablesused (51,885) (44,120) - -Directoperatingexpenses (25,678) (25,327) - -Staffcosts (27,584) (24,958) (1,103) (1,150)Depreciationandamortisation (10,894) (10,678) (126) (184)Provisionfordiminutioninvalueofinvestments (1,148) - (1,664) (8,946)Impairmentlossonproperty,plant&equipmentandcontractassets (2,158) (271) - -Provisionfordoubtfuldebts (2,486) (1,757) - (154)Impairmentlossongoodwill 19 - (6,100) - -Otheroperatingexpenses 5(b) (44,662) (38,580) (1,700) (1,977)
(257,657) (233,687) (4,593) (12,411)
Operatingprofit 41,098 27,306 21,686 14,485Financeincome 521 42 1,087 1,108Financecosts (10,251) (6,044) (2,331) (3,265)Netfinancecosts 6 (9,730) (6,002) (1,244) (2,157)Shareofprofitinassociates,netoftax 23 1,485 2,600 - -Profitbeforeincometax 32,853 23,904 20,442 12,328Incometax(expense)/benefit 7(a) (6,973) (5,419) 409 593Profitfromcontinuingoperations 25,880 18,485 20,851 12,921Discontinued operation(Loss)fromdiscontinuedoperations,netoftax 8 (3,372) (1,036) - -Profitfortheyearaftertax 22,508 17,449 20,851 12,921Other comprehensive income ItemsthatareormaybereclassifiedsubsequentlytoprofitorlossNetchangeinfairvalueofavailable-for-salefinancialassets 29 1,323 (545) 20,499 13,899Reclassificationofforeigncurrencydifferencesondisposalofforeignoperations 29 5,717 - - -
Netchangeinforeigncurrencytranslationreserve 29 (47) (1,334) - -Totalitemsthatmaybereclassifiedsubsequentlytoprofitorloss 6,993 (1,879) 20,499 13,899Other comprehensive income, net of tax 6,993 (1,879) 20,499 13,899Total comprehensive income for the year 29,501 15,570 41,350 26,820Profitattributableto:Equityholdersoftheholdingcompany 13,656 10,652Non-controllinginterest 22 8,852 6,797Totalcomprehensiveincomeattributableto: 22,508 17,449Equityholdersoftheholdingcompany 20,649 8,773Non-controllinginterest 22 8,852 6,797
29,501 15,570Cents Cents
Basicanddilutedearningspershare 31 45 35Basicanddilutedearningspershare-continuingoperations 31 56 38
Thestatementsofprofitorlossandothercomprehensiveincomearetobereadinconjunctionwiththeaccompanyingnotes.
NotesGroup Company
2016$’000
2015$’000
2016$’000
2015$’000
51FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Thestatementsoffinancialpositionaretobereadinconjunctionwiththeaccompanyingnotes.
stateMents oF FInanCIal posItIontUKUtUKU nI YaU nI KaBanI
Asat30June2016
ASSETSCurrent assets
Cashandcashequivalents 10(a) 24,827 7,959 156 157Held-to-maturityinvestments 11 - 10,510 - -Loans,advancesandreceivables 12 88,543 77,524 14,437 13,599Available-for-salefinancialassets 20(b) 9,263 - - -Currenttaxasset 7(b) - - 587 155Inventories 14 30,515 34,896 - -Assetsheldforsale 17(a) 1,416 21,031 - -
154,564 151,920 15,180 13,911Non-current assets
Held-to-maturityinvestments 11 - 10,254 - -Loans,advancesandreceivables 12 71,389 53,564 11,334 12,437Available-for-salefinancialassets 20(b) 29,599 19,437 257,464 231,244Contractassets 16 325 2,080 - -Investmentsinassociates 23 18,962 19,427 - -Investmentproperties 18 10,720 8,894 - -Property,plantandequipment 15 124,259 127,281 157 238Deferredtaxassets 7(c) 2,932 3,781 34 66Intangibleassets 19 62,296 62,651 - -
320,482 307,369 268,989 243,985Total assets 475,046 459,289 284,169 257,896LIABILITIESCurrentliabilities
Payables 24 35,567 33,668 626 1,455Borrowings 27 122,172 121,032 20,043 47,921Dividendspayable 26 747 1,192 - -Employeeentitlements 25 1,545 1,575 373 381Currenttaxliability 7(b) 952 163 - -Liabilitiesheldforsale 17(b) - 6,875 - -
160,983 164,505 21,042 49,757Non-currentliabilities
Borrowings 27 89,670 84,902 39,031 18,386Payables 24 649 - - -Employeeentitlements 25 497 144 - -Deferredtaxliabilities 7(c) 5,314 5,604 - -
96,130 90,650 39,031 18,386Totalliabilities 257,113 255,155 60,073 68,143Net assets 217,933 204,134 224,096 189,753SHAREHOLDERS EqUITY
Sharecapital 28 30,465 30,465 30,465 30,465Reserves 29 20,824 13,952 88,470 67,971Retainedearnings 119,554 112,905 105,161 91,317Attributabletomembersoftheholdingcompany 170,843 157,322 224,096 189,753Non-controllinginterest 22 47,090 46,812 - -
Totalshareholders’equity 217,933 204,134 224,096 189,753
NotesGroup Company
2016$’000
2015$’000
2016$’000
2015$’000
ThesefinancialstatementshavebeenapprovedinaccordancewitharesolutionoftheBoardofDirectors.
ForandonbehalfoftheBoard.
Chairperson Director
52 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Cashflowsfromoperatingactivities:Cashreceiptsfromcustomers 294,425 280,324 - -Cashpaidtosuppliersandemployees (247,172) (253,962) (2,778) (3,477)Cashgeneratedfrom/(usedin)operatingactivities 47,253 26,362 (2,778) (3,477)Dividendsreceived 2,993 2,978 22,825 16,334Managementfeesreceived - - 1,238 1,283Managementfeespaid (1,638) (2,203) - -Netcustomerloansgranted (29,515) (956) - -Netincrease/(decrease)indeposits 27,117 (10,722) - -Interestreceived 20,570 19,366 1,079 1,087Otherincomereceived - - 378 651Interestpaid (8,352) (7,675) (3,128) (2,420)Incometaxrefunds 311 - - -Incometaxespaid (5,994) (5,410) - (82)Netcashfromoperatingactivities 52,745 21,740 19,614 13,376
Cashflowsfrominvestingactivities:Acquisitionofproperty,plantandequipment (11,472) (15,339) (58) (19)Acquisitionofcontractcost 16 (333) (1,227) - -Acquisitionofinvestmentproperty (3,573) (5,034) - -Investmentinheld-to-maturityassets - (100) - -Investmentinavailable-for-salefinancialassets (100) (3,944) - (3,764)Loanrepaymentsreceived - - - -Depositpaid (4,548) - (4,548) -Proceedsfromdisposalofavailable-forsalefinancialassets 11 - - -Proceedsfromdisposalofproperty,plantandequipmentandassetsheldforsale 1,360 559 35 -Proceedsfromheld-to-maturityinvestment - 500 - -Acquisitionofintangibleassets (172) (11) - -Disposalofdiscontinuedoperation,netofcashdisposedoff 8 12,978 - - -Netadvances(to)/fromsubsidiaries - - 1,088 78Netcash(usedin)/frominvestingactivities (5,849) (24,596) (3,483) (3,705)
Cashflowsfromfinancingactivities: Dividendspaidtotheholdingcompany’sshareholders 9 (7,007) (6,702) (7,007) (6,702)(Payments)/proceedsfromsaleofinvestmentsecurities 2,001 (11,252) - -Proceedsfromissueofshares 330 220 - -Dividendspaidtonon-controllinginterests 22 (9,476) (4,047) - -Netmovementinloans (13,157) (5,818) (8,296) (8,758)Netcashusedinfinancingactivities (27,309) (27,599) (15,303) (15,460)
Netincrease/(decrease)incashandcashequivalents 19,587 (30,455) 828 (5,789)Cashandcashequivalentsatthebeginningoftheyear (10,027) 20,426 (10,025) (4,236)Effectofexchangeratechangesoncash (1,058) 2 - -
Cashandcashequivalentsattheendoftheyear 10(a) 8,502 (10,027) (9,197) (10,025)
NotesGroup Company
2016$’000
2015$’000
2016$’000
2015$’000
stateMents oF CasH FloWs tUKUtUKU nI IlaVo QaQa
YearEnded30June2016
Thestatementsofcashflowsaretobereadinconjunctionwiththeaccompanyingnotes.
53FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
YearEnded30June2016stateMents oF CHanges In eQUItY tUKUtUKU nI VeIsaU ena aKaUde nI taUKeI nI KaBanI
Balanceat1July2014 30,465 14,705 109,576 154,746 45,384 200,130
Total comprehensive income for the year
Profit - - 10,652 10,652 6,797 17,449Othercomprehensiveincome - (1,879) - (1,879) - (1,879)Totalcomprehensiveincomefortheyear - (1,879) 10,652 8,773 6,797 15,570Transactions with owners of the CompanyContributionsanddistributionsTransferfromretainedearnings - 621 (621) - - -DividendspaidtoownersoftheCompany - - (6,702) (6,702) (4,884) (11,586)Totalcontributionsanddistributions - 621 (7,323) (6,702) (4,884) (11,586)ChangesinownershipinterestsAcquisitionofsubsidiarywithNCI - - - - 400 400Decreaseinnon-controllinginterestthroughacquisition
- 505 - 505 (885) (380)
Totalchangesinownershipinterests - 505 - 505 (485) 20Total transactions with owners of the Company - 1,126 (7,323) (6,197) (5,369) (11,566)Balanceat30June2015 30,465 13,952 112,905 157,322 46,812 204,134
Balanceat1July2015 30,465 13,952 112,905 157,322 46,812 204,134Total comprehensive income for the yearProfit - - 13,656 13,656 8,852 22,508Othercomprehensiveincome - 6,993 - 6,993 - 6,993Totalcomprehensiveincomefortheyear - 6,993 13,656 20,649 8,852 29,501Transactions with owners of the CompanyContributionsanddistributions
Transferfromretainedearnings - - - - - -
DividendspaidtoownersoftheCompany - - (7,007) (7,007) (8,912) (15,919)
Totalcontributionsanddistributions - - (7,007) (7,007) (8,912) (15,919)ChangesinownershipinterestsAcquisitionofsubsidiarywithNCI - - - - 461 461Decreaseinnon-controllinginterestthroughacquisition
- (121) - (121) (123) (244)
Totalchangesinownershipinterests - (121) - (121) 338 217Total transactions with owners of the Company - (121) (7,007) (7,128) (8,574) (15,702)Balanceat30June2016 30,465 20,824 119,554 170,843 47,090 217,933
(1)Seenote29Thestatementsofchangesinequityaretobereadinconjunctionwiththeaccompanyingnotes.
Group
Attributable to owners of the Company
Share Capital$’000
Other Reserves(1)
$’000
Retained Earnings
$’000Total
$’000
Non-controlling
Interests$’000
Total Equity$’000
54 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
Balanceat1July2014 30,465 54,072 85,098 169,635 - 169,635
Total comprehensive income for the year
Profit - - 12,921 12,921 - 12,921
Othercomprehensiveincome - 13,899 - 13,899 - 13,899
Total comprehensive income for the year - 13,899 12,921 26,820 - 26,820
Transactions with owners of the Company
Contributionsanddistributions
DividendspaidtoownersoftheCompany - - (6,702) (6,702) - (6,702)
Totalcontributionsanddistributions - - (6,702) (6,702) - (6,702)
Total transactions with owners of the Company - - (6,702) (6,702) - (6,702)
Balanceat30June2015 30,465 67,971 91,317 189,753 - 189,753
Balanceat1July2015 30,465 67,971 91,317 189,753 - 189,753
Total comprehensive income for the year
Profit - - 20,851 20,851 - 20,851
Othercomprehensiveincome - 20,499 - 20,499 - 20,499
Total comprehensive income for the year - 20,499 20,851 41,350 - 41,350
TransactionswithownersoftheCompany
Contributionsanddistributions
DividendspaidtoownersoftheCompany - - (7,007) (7,007) - (7,007)
Totalcontributionsanddistributions - - (7,007) (7,007) - (7,007)
Total transactions with owners of the Company - - (7,007) (7,007) - (7,007)
Balanceat30June2016 30,465 88,470 105,161 224,096 - 224,096
(1)Seenote29Thestatementsofchangesinequityaretobereadinconjunctionwiththeaccompanyingnotes.
Company
Attributable to owners of the Company
Share Capital$’000
Other Reserves(1)
$’000
Retained Earnings
$’000Total
$’000
Non-controlling
Interests$’000
Total Equity$’000
YearEnded30June2016stateMents oF CHanges In eQUItY tUKUtUKU nI VeIsaU ena aKaUde nI taUKeI nI KaBanI
55FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
1. GENERAL INFORMATION
FijianHoldingsLimited(“theCompany”)isincorporatedanddomiciledinFijianditsregisteredofficeandprincipalplaceofbusinessislocatedat7thFloor,RaMaramaHouse,91GordonStreet,Suva,Fiji.
Theconsolidatedfinancialstatementsof theCompanyasatandfor theyearended30June2016comprisetheCompanyand itssubsidiaries (together referred to as“the Group” and individually as“group entities”) and the group’s interest in associates. TheCompanyanditssubsidiariesareincorporatedanddomiciledinFijiandPapuaNewGuinea.
Theprincipalactivityof theCompany is investment. Theprincipalactivitiesof theGrouparetheproductionandsaleofcement,concreteandconcreteproducts,investmentandrentalofproperty,fundmanagement,stockbroking,assetandloanfinancingandacceptanceoftermdeposits,provisionofseatransportationservicesandboatcharters,cruiseshipoperations,commercialfreetoairtelevisionbroadcastingservices,sellingandservicingofradio,televisionandcommunications,retailingandwholesalingofgeneralmerchandise,andownersandadministratorsofproperties.
TheCompanyislistedontheSouthPacificStockExchange.
TheseconsolidatedfinancialstatementswereauthorisedforissuebytheBoardofDirectorson18thAugust2016.
1.1 Statement of compliance
The Company and consolidated financial statements are general purpose financial statements which have been prepared inaccordancewithInternationalFinancialReportingStandards(IFRSs)asadoptedbytheInternationalAccountingStandardsBoardandtherequirementsofFijiCompaniesAct1983.
1.2 Basisofaccounting
These consolidated financial statements have been prepared under the historical cost basis, as modified by the revaluation ofavailable-for-salefinancialassetsandexceptwhereotherwisenoted.
Despitethedeficiencyinnetcurrentassetsof$5,862,000(2015:$35,846,000)intheCompany,thefinancialstatementshavebeenpreparedonagoingconcernbasis,whichcontemplatesthattheCompanywillbeabletopayitsdebtsasandwhentheyfalldue.ThedirectorsbelievethatthisbasisisappropriateastheCompanyhastheabilitytoupstreamdividendsfromitssubsidiarycompanies,therearecurrentlyundrawnbankingfacilitiestotalling$4,647,000available,andanamountof$6,953,000isduetorelatedpartieswhichthedirectorsbelieveiscapableofbeingrenegotiatedastopaymentdate.TheCompanyalsohasapositivecashflowfromoperating activities and can call upon related party receivables of $6,095,000 (classified as non-current due to management’sexpectationofrealisation)whentheneedarises.
TheGroupnetcurrentassetdeficiencyof$6,419,000(2015:$12,585,000)isduetoshorttermfixedtermdepositstotalling$86,056,000(2015:$56,516,000)inrespectofMerchantFinanceLimitedwhichthedirectorsexpectwillberolledoveratmaturity.
Standards, amendments and interpretations issued but not yet effective
Thefollowingstandards,amendmentsandinterpretationstoexistingstandardshavebeenpublishedwhicharerelevanttotheGroupandaremandatoryforaccountingperiodsbeginningafter1July2015,buttheGroupdoesnotplantoearlyadoptthem.TheimpactofthesestandardsandinterpretationsonthefinancialstatementsoftheCompanyandtheGrouphasnotyetbeenfullydetermined.
Standard/Interpretation ContentApplicableforfinancialyearsbeginningon/after
IFRS9FinancialInstruments
IFRS9,publishedinJuly2014replacestheexistingguidanceinIAS39FinancialInstruments:RecognitionandMeasurement.IFRS9includesrevisedguidanceontheclassificationandmeasurementoffinancialinstruments,includinganewexpectedcreditlossmodelforcalculatingimpairmentonfinancialassets,andthenewgeneralhedgeaccountingrequirements.ItalsocarriedforwardtheguidanceonrecognitionandderecognitionoffinancialinstrumentsfromIAS39.
1January2018,withearlyadoptionpermitted
56 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
1. GENERAL INFORMATION (continued)
1.2 Basisofaccounting(continued)
Standards, amendments and interpretations issued but not yet effective (continued)
Standard/Interpretation ContentApplicableforfinancialyearsbeginningon/after
IFRS 15 Revenue fromcontractswithcustomers
IFRS15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised.Itreplacesexistingrevenuerecognition guidance, including IAS 18 Revenue, IAS 11 ConstructionContractsandIFRIC13CustomerLoyaltyProgrammes.
1January2018,withearlyadoptionpermitted
IFRS16Leases IFRS16removestheclassificationofleasesaseitheroperatingleasesorfinance leases - for the lessee - effectively treatingall leases asfinanceleases.Short term leases (less than12months)and leasesof low-valueassets(suchaspersonalcomputers)areexemptfromtheleaseaccountingrequirements.
Therearealsochangesinaccountingoverthelifeofthelease.Inparticular,companieswillnowrecogniseafront-loadedpatternofexpenseformostleases,evenwhentheypayconstantannualreturns.
Lessoraccountingremainssimilartocurrentpractice-i.e.lessorscontinuetoclassifyleasesasfinanceandoperatingleases.
1January2019,withearlyadoptionpermitted
1.3 Useofestimatesandjudgments
The preparation of the consolidated financial statements in conformity with IFRSs requires management to make judgments,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.
Informationaboutsignificantareasofestimationuncertaintyandcritical judgmentsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatementsareincludedinthefollowingnotes:
Note2.1(i)-Businesscombinations Note2.4-AvailableforsalefinancialassetsNote2.4.3-Financialassetsimpairment Note2.5-Property,plantandequipmentimpairmentNote2.6-Investmentpropertiesimpairment Note2.10-Intangibleassetsimpairment
1.4 Functional and presentation currency
Itemsincludedinthefinancialstatementsofeachofthegroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironment inwhich the entityoperates (‘the functional currency’). The consolidatedfinancial statements arepresented in FijiDollars,whichistheCompany’sandtheGroup’sfunctionalandpresentationcurrency.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
TheprincipalaccountingpoliciesadoptedinthepreparationoftheseCompanyandconsolidatedfinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.
2.1 Principles of consolidation
(i) Business combinations
Theacquisitionmethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbythegroup.
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57FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.1 Principles of consolidation (continued)
(i) Business combinations (continued)
Foreverybusinesscombination,theGroupidentifiestheacquirer,whichisthecombiningentitythatobtainscontroloftheothercombiningentitiesorbusinesses.Control is thepower togovern thefinancialandoperatingpoliciesofanentity soas toobtainbenefitsfromitsactivities.Inassessingcontrol,theGrouptakesintoconsiderationpotentialvotingrightsthatcurrentlyareexercisable.Theacquisitiondateisthedateonwhichcontrolistransferredtotheacquirer.Judgementisappliedindeterminingtheacquisitiondateanddeterminingwhethercontrolistransferredfromonepartytoanother.
Thecostofanacquisitionismeasuredasthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate,irrespectiveoftheextentofanynon-controllinginterest.Theexcessofthecostofacquisitionoverthefairvalueofthegroup’sshareoftheidentifiablenetassetsacquiredisrecordedasgoodwill.Ifthecostofacquisitionislessthanthefairvalueofthenetassetsofthesubsidiaryacquired,thedifferenceisrecogniseddirectlyintheprofitorloss.
TheGroupmeasuresgoodwillasthefairvalueoftheconsiderationtransferredincludingtherecognisedamountofanynon-controllinginterestintheacquiree,lessthenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed,allmeasuredasoftheacquisitiondate.IfthecostoftheacquisitionislessthantheGroup’sshareofthefairvalueoftheidentifiablenetassetsoftheacquiree,thedifferenceisrecogniseddirectlyinprofitorloss,butonlyafterareassessmentoftheidentificationandmeasurementofthenetassetsacquired.
Thefairvalueoftheidentifiablenetassetsisbasedonvaluationsperformedbyindependentexperts.
ConsiderationtransferredincludesthefairvaluesoftheassetstransferredandliabilitiesincurredbytheGrouptothepreviousownersoftheacquiree.Considerationtransferredalsoincludesthefairvalueofanycontingentconsideration.
Transactioncosts,otherthanthoseassociatedwiththeissueofdebtorequitysecuritiesthattheGroupincursinconnectionwithabusinesscombinationareexpensedasincurred.
(ii) Subsidiaries
Subsidiariesareallthoseentitiesoverwhichthegrouphascontrol.TheGroupcontrolsanentitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyarede-consolidatedfromthedatethatcontrolceases.
(iii) Non-controlling interest
TheGroupmeasuresanynon-controllinginterestatitsproportionateinterestintheidentifiablenetassetsoftheacquireeatthedateofacquisition.
(iv) Loss of control
WhentheGrouplosescontroloverasubsidiary,itderecognisestheassetsandliabilitiesofthesubsidiary,andanyrelatedNCIandothercomponentsofequity.Anyresultinggainorlossisrecognisedinprofitorloss.Anyinterestretainedintheformersubsidiaryismeasuredatfairvaluewhencontrolislost.
(v) Transactions eliminated on consolidation
Intra-grouptransactions,balancesandunrealisedgainsontransactionsbetweengroupcompaniesareeliminated.Unrealisedlossesonthesetransactionsarealsoeliminated.Unrealisedgainsontransactionsbetweenthegroupanditsassociatesareeliminatedtotheextentofthegroup’sinterestintheassociates.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred.
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58 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.1 Principles of consolidation (continued)
(vi) Transactions and non-controlling interests
Thegroupappliesapolicyoftreatingtransactionswithnon-controllinginterestsastransactionswithpartiesexternaltothegroup.Disposalstonon-controllinginterestsresultingainsandlossesforthegroupandarerecordedintheothercomprehensiveincome.Purchasesfromnon-controllinginterests,beingthedifferencebetweenanyconsiderationpaidandtherelevantshareacquiredofthecarryingvalueofnetassetsofthesubsidiary,isrecordeddirectlyinequity.
(vii) Interests in equity accounted investees
Associatesarethoseentitiesoverwhichthegrouphassignificantinfluencebutnotcontroloverthefinancialandoperatingpolicies.Investmentsinassociatesareaccountedforusingtheequitymethodofaccountingandareinitiallyrecognisedatcostwhichincludestransactioncosts.
Thegroup’sshareof itsassociates’post-acquisitionprofitsor losses isrecognisedinprofitor loss,anditsshareofpost-acquisitionmovements in reserves is recognized in other comprehensive income.The cumulative post-acquisitionmovements are adjustedagainstthecarryingamountoftheinvestment.Whenthegroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includinganyotherunsecuredreceivables,thegroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.
Dilutiongainsandlossesarisingoninvestmentsinassociatesarerecognisedinprofitorloss.
2.2 Foreignoperations
Theassetsandliabilitiesofforeignoperations,includinggoodwillandfairvalueadjustmentsarisingonacquisitions,aretranslatedtothefunctionalcurrencyatexchangeratesatthereportingdate.TheincomeandexpensesofforeignoperationsaretranslatedtoFijiandollarsatexchangeratesatthedatesofthetransactions.
Foreigncurrencydifferencesarerecognisedinothercomprehensiveincomeandpresentedintheforeigncurrencytranslationreservein equity. If the foreignoperation is anon-wholly-owned subsidiary, then the relevantproportionof the translationdifference isallocatedtothenon-controllinginterests.Onthedisposalofaforeignoperation,thecumulativeamountoftheexchangedifferencesrelatingtothatforeignoperation,recognisedinothercomprehensiveincomeandaccumulatedintheseparatecomponentofequity,isreclassifiedfromequitytoprofitorloss(asareclassificationadjustment)whenthegainorlossondisposalisrecognised.
2.3 Cashandcashequivalents
Cashandcashequivalentscomprisecashbalancesandcalldepositswithmaturitiesofthreemonthsorlessfromtheacquisitiondate.Forthepurposesofthestatementsofcashflows,cashandcashequivalentscomprisecashonhand,depositsheldatcallwithbanksandbankoverdrafts.Bankoverdraftsareincludedwithinborrowingsincurrentliabilitiesonthestatementoffinancialposition.
2.4 Financial assets
2.4.1 Classification
Financialassetsareclassified into the followingcategories:at fairvalue throughprofitor loss,held-to-maturity,available-for-sale,andloansandreceivables.Theclassificationisdependentonthepurposeforwhichthefinancialassetsareacquired.Managementdetermines the classification of investments at the time of the purchase and re-evaluates such designation on a regular basis.Purchasesandsalesofinvestmentsarerecognisedonthetradedate,whichisthedatethegroupcommitstopurchaseorselltheasset.Costofpurchaseincludestransactioncosts.
(a) Financial assets at fair value through profit or lossFinancialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshort-term.Assetsinthiscategoryareclassifiedascurrentassets.
(b) Held-to-maturity investmentsInvestmentswhichmanagementhastheintentandabilitytoholdtomaturityareclassifiedasheld-to-maturityandarecarriedatamortisedcost.
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59FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.4 Financial assets (continued)
2.4.1 Classification(continued)
(c) Available-for-sale financial assetsAvailable-for-salefinancialassetsarenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlessmanagementintendstodisposeoftheinvestmentwithin12monthsofthebalancesheetdate.
(d) Loans and receivablesLoansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12monthsafterthebalancedate,whichareclassifiedasnon-current.Thegroup’sloansandreceivablescompriseof‘cashandcashequivalents’and‘loans,advancesandreceivables’.
2.4.2 Recognitionandmeasurement
Regularpurchasesandsalesoffinancialassetsarerecognisedonthetradedate-thedateonwhichthegroupcommitstopurchaseorselltheasset.Investmentsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.Financialassetscarriedatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvalue,andtransactioncostsareexpensedinprofitorloss.Financialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandthegrouphastransferredsubstantiallyall risksandrewardsofownership.Available-for-salefinancialassetsandfinancialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalue.Loansandreceivablesandheld-to-maturityassetsaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.
Gainsorlossesarisingfromchangesinthefairvalueofthe‘financialassetsatfairvaluethroughprofitorloss’categoryarepresentedinprofitorlosswithin‘fairvalue(losses)/gains’intheperiodinwhichtheyarise.Dividendincomefromfinancialassetsatfairvaluethroughprofitorlossisrecognisedinprofitorlossaspartofincomewhenthegroup’srighttoreceivepaymentsisestablished.
Changes in the fairvalueofmonetaryandnon-monetarysecuritiesclassifiedasavailable for saleare recognised inequity.Whensecuritiesclassifiedasavailable-for-salearesoldorimpaired,theaccumulatedfairvalueadjustmentsrecognisedinequityareincludedinincome.
Interestonavailable-for-salesecuritiescalculatedusingtheeffectiveinterestmethodisrecognisedinprofitorlossaspartofotherincome.Dividendsonavailable-for-saleequityinstrumentsarerecognisedinprofitorlossaspartofotherincomewhentheGroup’srighttoreceivepaymentsisestablished.
Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),theGroupestablishesfairvaluebyusingvaluationtechniques.Theseincludetheuseofrecentarm’slengthtransactions,referencetoother instruments thataresubstantially thesame,discountedcashflowanalysis,andoptionpricingmodels,makingmaximumuseofmarketinputsandrelyingaslittleaspossibleonentity-specificinputs.
2.4.3 ImpairmentTheGroupassessesateachbalancedatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseofequitysecuritiesclassifiedasavailableforsale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredasanindicatorthatthesecuritiesareimpaired.TheGroupconsidersadeclineof20%tobesignificantandaperiodoftwelvemonthstobeprolonged.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss–measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss–isremovedfromequityandrecognisedinprofitorloss.Impairmentlossesrecognisedinprofitorlossonequityinstrumentsarenotreversedthroughprofitorloss.
AnallowanceforimpairmentofreceivablesisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectall amountsdueaccording to theoriginal termsof the receivables. Significantfinancialdifficultiesof thedebtor,probability thatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpayments(morethan30daysoverdue)areconsideredindicatorsthatthetradereceivable is impaired. Theamountoftheprovisionisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountofthelossisrecognisedinprofitorlossaspartofprovisionfordoubtfuldebts.Whenatradereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstprovisionfordoubtfuldebtsinprofitorloss.
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60 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.4 Financial assets (continued)
2.4.3 Impairment (continued)
Loansandadvancesarerecognisedatrecoverableamount,afterassessingtherequiredallowanceforimpairment.Impairmentofaloanisrecognisedwhenthereisreasonabledoubtthatnotalltheprincipalandinterestcanbecollectedinaccordancewiththetermsoftheloanagreement. Impairmentisassessedbyspecificidentificationinrelationtoindividual loansandestimationofexpectedlosses in relation to loanportfolioswhere specific identification is impracticable. Baddebtsarewrittenoffwhen identified. If anallowanceforimpairmenthasbeenrecognisedinrelationtoaloan,write-offsforbaddebtsaremadeagainsttheallowance.Ifnoallowanceforimpairmenthaspreviouslybeenrecognised,write-offsforbaddebtsarerecognisedasexpensesinprofitorloss.
2.5 Property,plantandequipment
(i) Owned assetsItemsofproperty,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses.
Freeholdlandisshownatcostandimprovementsareshownatcostlessaccumulateddepreciation.Islandpropertiesareshownatfairvaluebasedonvaluationsbyexternalindependentvaluers.Allotheritemsofproperty,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses.
Thevalueofproperty,plantandequipmentrecognisedasaresultofabusinesscombinationistheestimatedamountforwhichapropertycouldbeexchangedonthedateofacquisitionbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably.Subsequenttoinitialrecognition,increasesinthecarryingamount arisingon revaluationare credited toother comprehensive incomeand recordedas revaluation reserve in shareholders’equity.Decreasesthatoff-setpreviousincreasesofthesameassetarechargedagainstothercomprehensiveincomeandrevaluationreservesinequity;allotherdecreasesarechargedasanexpenseinprofitorloss.
Gainsandlossesondisposalofproperty,plantandequipmentaredeterminedbycomparingtheproceedswiththecarryingamountandarerecognisedinprofitorloss.
Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountisgreaterthanitsestimatedrecoverableamount(refernote2.10).
(ii) Subsequent expenditureExpenditureincurredtoreplaceacomponentofanitemofproperty,plantandequipmentthatisaccountedforseparately,includingmajorimprovements,renovationsandoverhaulexpenditure,iscapitalised.Othersubsequentexpenditureiscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedintheitemofproperty,plantandequipment.
Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtothecompanyandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenanceareexpensedinprofitorlossduringthefinancialperiodinwhichtheyareincurred.
(iii) Depreciation and amortisationFreeholdlandandislandpropertiesarenotdepreciated.Leaseholdproperties,plantandequipmentandotherassetsaredepreciatedandamortisedonthestraightlinebasisovertheirestimatedusefullives,usingthefollowingdepreciationrates: RateLeaseholdlandandimprovements TermofleaseBuildings 1.25% -10%Plantandequipment:-machinery,furniture&fittingsandofficeequipment 2.50% -40%-motorvehicles 15% -33%-vessels 3% -33%
Depreciationmethods,usefullivesandresidualvaluesarereviewedateachreportingdateandadjustedasappropriate.
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61FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.6 Investment properties
Investment property is stated at historical cost less accumulated depreciation and impairment losses. Historical cost includesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.Rentalincomefrominvestmentpropertyisaccountedforasdescribedinaccountingpolicy2.16.
Investmentpropertyincludesbothlandandbuildings.Buildingsaredepreciatedonastraight-linebasisatanannualratebetween1.25%and2.50%.Freeholdlandisnotdepreciated.Leaseholdlandisamortisedonastraightlinebasisinaccordancewiththetermofthelease.
Whenanitemofplantandequipment(refertoaccountingpolicy2.5)becomesaninvestmentpropertyfollowingachangeinitsuse,suchinvestmentpropertyisstatedatitscost.
2.7 Assets held for sale and discontinued operations
Non-currentassets(ordisposalgroupscomprisingassetsandliabilities)areclassifiedasheld-for-saleifitishighlyprobablethattheirvaluewillberecoveredprimarilythroughsaleratherthanthroughcontinuinguse.Assetsclassifiedasheldforsalearestatedattheloweroftheircarryingamountandfairvaluelesscoststosellandarenolongeramortisedordepreciated.
AdiscontinuedoperationisacomponentoftheGroup’sbusiness,theoperationsandcashflowsofwhichcanbeclearlydistinguishedfromtherestoftheGroupandwhich:• representsaseparatemajorlineofbusinessorgeographicalareaofoperations;• ispartofasingleco-ordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations;or• isasubsidiaryacquiredexclusivelywithaviewtore-sale.
Classificationasadiscontinuedoperationoccursattheearlierofdisposalorwhentheoperationmeetsthecriteriatobeclassifiedasheld-for-sale.
Whenanoperationisclassifiedasdiscontinuedoperations,thestatementsofprofitorlossandothercomprehensiveincomeisre-presentedasiftheoperationshadbeendiscontinuedfromthestartofthecomparativeyear.
2.8 Inventories
Inventoriesarestatedat lowerofcostandnetrealisablevalue. Thecostofrawmaterials,storesandsupplies includesallcostsofacquisition,calculatedonthefirst-in-first-outorweightedaveragecostbasis.Finishedgoodsandworkinprocessarevaluedattheactualcostofconversion,includingaproportionoffixedandvariablefactoryoverheads.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslessapplicablevariablesellingexpenses.
2.9 Intangibles
(a) Goodwill
Goodwillrepresentstheexcessofthecostofanacquisitionoverthefairvalueofthegroup’sshareofthenetidentifiableassetsoftheacquiredsubsidiaryatthedateofacquisition.Goodwillonacquisitionofsubsidiariesisincludedinintangibleassets.Goodwillis testedannually for impairmentandcarriedatcost lessaccumulated impairment losses. Impairment lossesongoodwillarenotreversed.
Thegainorlossondisposalofanentityincludesthecarryingamountofgoodwillrelatingtotheentitysold.
Goodwillisallocatedtocash-generatingunitsforthepurposeofimpairmenttesting.Theallocationismadetothosecash-generatingunitsorgroupsofcash-generatingunitsthatareexpectedtobenefitfromthebusinesscombination inwhichthegoodwillaroseidentifiedaccordingtooperatingsegment.
(b) Management rights
ManagementrightsrepresenttheinitialcostpaidinacquiringtherightsandinterestintheManagementAgreementbetweenRBPatelGroupLimited(asubsidiaryofFHLRetailingLtd)andRBPatel&Co.,aNewZealandpartnership.Managementrightsiscarriedatcostlessaccumulatedamortisation(basedonthecontractperiodofthemanagementright)andimpairmentlossesandissubjecttoannualimpairmenttesting.
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62 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.10 Impairmentofnon-financialassets
Assetsthathaveanindefiniteuseful lifearenotsubjecttoamortisationanddepreciationandaretestedannuallyfor impairment.Assetsthataresubjecttoamortisationarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountexceeds its recoverableamount.An impairment loss is recognised for theamountbywhich theasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Anyimpairmentlossesarerecognisedinprofitorlossintheperiodinwhichtheyarise.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparateidentifiablecashflows.
2.11 Trade and other creditors
Tradeandothercreditorsarestatedatamortisedcost.Theseamountsrepresent liabilities forgoodsandservicesprovidedtothegrouppriortotheendofthefinancialyearandwhichareunpaid.
2.12 Borrowings
Borrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred.Borrowingsaresubsequentlycarriedatamortisedcost;anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedinprofitorlossovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.
2.13 Current and deferred income taxCurrenttaxcomprisestheexpectedtaxpayableorreceivableonthetaxableincomeorlossfortheyearandanyadjustmenttothetaxpayableorreceivable inrespectofpreviousyears.Theamountofcurrenttaxpayableorreceivable isthebestestimateofthetaxamountexpectedtobepaidorreceivedthatreflectsuncertaintyrelatedtoincometaxes, ifany. It ismeasuredusingtaxratesenactedorsubstantivelyenactedatthereportingdateintherespectivecountries,wherethecompany’ssubsidiariesandassociatesoperateandgeneratetaxableincome.Managementperiodicallyevaluatespositionstakenintaxreturnswithrespecttosituationsinwhichapplicabletaxregulationsaresubjecttointerpretationandestablishesprovisionswhereappropriateonthebasisofamountsexpectedtobepaidtothetaxauthorities.
Deferredtax is recognised in respectof temporarydifferencesbetweenthecarryingamountsofassetsand liabilities forfinancialreportingpurposesandtheamountsusedfortaxationpurposes.However,deferredincometaxisnotaccountedforifitarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransactionaffectsneitheraccountingnortaxableprofitorloss.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantivelyenactedbythebalancedateandareexpectedtoapplywhentherelateddeferredincometaxassetisrealisedorthedeferredincometaxliabilityissettled.
Deferredincometaxassetsarerecognisedforunusedtaxlosses,unusedtaxcreditsanddeductibletemporarydifferencesonlytotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthedeferredtaxassetscanbeutilised.Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised;suchreductionsarereversedwhentheprobabilityoffuturetaxableprofitsimproves.
Unrecogniseddeferredtaxassetsarereassessedateachreportingdateandrecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheycanbeused.
Deferredincometaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiariesandassociates,exceptwherethetimingofthereversalofthetemporarydifferenceiscontrolledbythegroupanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.
Deferredtaxisnotrecognisedfortaxabletemporarydifferencesarisingontheinitialrecognitionofgoodwill.
2.14 Employee entitlements
Liabilityforannualleaveisrecognisedandmeasuredastheamountunpaidatthereportingdateatcurrentpayratesinrespectofemployees’servicesuptothatdate.
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63FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.14 Employee entitlements (continued)
A liability for long service leave is recognised as the present value of estimated future cash outflows to bemade in respect ofservicesprovidedbyemployeesuptothereportingdate.Theestimatedfuturecashoutflowsarediscountedusinginterestratesongovernmentbondswhichhavetermstomaturitythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.Factorswhichaffecttheestimatedcashoutflows,suchasexpectedfuturesalaryincreases,experienceofemployeedeparturesandperiodofservice,areincorporatedinthemeasurement.
Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanexpenseinprofitorlosswhentheyaredue.
2.15 Leases
A Group company is the lesseeAssetsacquiredunderfinanceleasesareincludedasproperty,plantandequipmentinthestatementoffinancialposition.Financeleaseseffectivelytransferfromthelessortothelesseesubstantiallyalltherisksandbenefitsincidentaltoownershipoftheleasedassets.Whereassetsareacquiredbymeansoffinanceleases,theloweroftheasset’sfairvalueorthepresentvalueoftheminimumleaserepaymentsisrecognisedasanassetatthebeginningoftheleasetermandamortisedonastraightlinebasisovertheexpectedusefullifeoftheleasedasset.Acorrespondingliabilityisalsoestablishedandeachleasepaymentisallocatedbetweentheliabilityandinterestexpense.
Otherleasesunderwhichalltherisksandbenefitsofownershipareeffectivelyretainedbythelessorareclassifiedasoperatingleases.Operatingleasepaymentsarechargedtoexpenseintheperiodsinwhichtheyareincurred.
A Group company is the lessorAssetsleasedoutunderoperatingleasesareincludedinproperty,plantandequipmentinthestatementoffinancialposition.Theyaredepreciatedover theirexpecteduseful livesonabasisconsistentwithsimilarownedproperty,plantandequipment. Rentalincomeisrecognisedonastraight-linebasisovertheleaseterm.
2.16 RevenuerecognitionRevenuecomprisesthefairvalueforthesaleofgoodsandservices,netofvalueaddedtax,rebatesanddiscountsandaftereliminatingsaleswithinthegroup.Revenueisrecognisedasfollows:
Sales of goodsRevenuefromthesaleofgoodsisrecognisedwhensignificantrisksandrewardsofownershipofthegoodsaretransferredtothebuyer.
Sales of servicesRevenueisgenerallyrecognisedwhenservicesarerendered.Feessuchasbrokerageincomeandcommissionarisingfromnegotiatingorparticipatinginthenegotiationofatransactionforathirdpartyarerecognisedoncompletionoftheunderlyingtransaction.
Interest incomeInterestincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestorcompoundinterestmethodwhichmatchesincomeearnedtothefundsemployedonaconstantbasis.
Dividend incomeDividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.
Rental incomeRentalincomeisrecognisedwhendue.Rentalincomefrominvestmentpropertyisrecognisedinprofitorlossonastraight-linebasisoverthetermofthelease.
2.17 Dividenddistribution
Provisionismadefortheamountofanydividenddeclared,determinedorpubliclyrecommendedbythedirectorsonorbeforetheendofthefinancialyearbutnotdistributedatbalancedate.
DividendsaresubjecttotheprovisionsoftheFijiIncomeTaxActandIncomeTax(Dividend)Regulations2001.
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64 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.18 Provisions
ProvisionsarerecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofpastevents;itismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligation,andtheamounthasbeenreliablyestimated.
2.19 Basicanddilutedearningspershare
Basicanddilutedearningspershare isdeterminedbydividingprofitafter incometaxattributabletoshareholdersoftheholdingcompanybytheweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear.
2.20 Rounding
Allamountshavebeenroundedtothenearestthousanddollarsexceptwhereotherwisenoted.
2.21 Transactionsandbalances
Foreign currency transactions are translated into the functional currencyusing theexchange ratesprevailingat thedatesof thetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedinprofitorloss.
2.22 Comparativefigures
Wherenecessary,comparativefigureshavebeenadjustedtoconformtochangesinpresentationinthecurrentyear.
3. ACqUISITION OF INVESTMENTS
Pernix (PNG) LimitedTheCompanymadeaninvestmentof$5.3millioninPernix(PNG)Limited.ThepercentageshareholdingisyettobedeterminedandwillbefinalisedoncePernix(PNG)Limitedisfullyoperational.Accordingly,thetransactioniscurrentlybeingtreatedasasharedepositandhasbeenrecordedasanoncurrentotherreceivable.
Inaddition,thenetassetsofBasicIndustries(PNG)LimitedhavebeentransferredtoPernix(PNG)Limitedaspartofthistransaction(seeNote8).
4. FINANCIAL RISK MANAGEMENT
4.1 RiskManagementFramework
TheBoardofDirectorshasoverallresponsibilityfortheestablishmentandoversightoftheGroup’sriskmanagementframework.TheBoardhasestablishedtheAuditSub-Committee,whichisresponsiblefordevelopingandmonitoringtheGroup’sriskmanagementpolicies.ThecommitteereportsregularlytotheBoardofDirectorsonitsactivities.
TheGroup’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrol,andtomonitorrisksandadherencetolimits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.TheGroup,throughitstrainingandmanagementstandardsandprocedures,aimtodevelopadisciplinedandconstructivecontrolenvironmentinwhichallemployeesunderstandtheirrolesandobligations.
RiskmanagementisalsocarriedoutbyGroupFinance&AuditDivision(GFAD).TheGFADmonitorscompliancewiththeGroup’sriskmanagementpoliciesandframeworkinrelationtorisksfacedbyeachcompanyintheGroup.ARiskandComplianceOfficerwhoisalsopartoftheAuditSub-Committee,isresponsibleformonitoringcompliancewithGroupriskmanagementpoliciesandproceduresandforreviewingtheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.TheGroupmanagementteamisassistedinthesefunctionsbyanInternalAuditfunction(establishedbytheCompanyandanoutsourcedinternalauditteamforMerchantFinanceLimited)whichundertakesbothregularandad-hocreviewsofmanagementcontrolsandprocedures,theresultsofwhicharereporteddirectlytotheAuditSub-CommitteeoftheBoard.
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65FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
4. FINANCIAL RISK MANAGEMENT (continued)
4.1 RiskManagementFramework(continued)
(a) Market risk Marketriskistheriskthatchangesinmarketprices,suchasinterestrate,equityprices,foreignexchangeratesandcreditspreads
willaffectthegroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistocontrolmarketriskexposureswithinacceptableparameterswhileoptimisingthereturnonrisk.
UnfavourablechangestodutyandtaxregulationsmayexposetheGrouptoadeclineinrevenue.Tominimisethisrisk,theGroupimplementsappropriatestrategiestoensurethatproductsandpricesremainattractive.TheGroupoperatespredominantlyinFijiandPapuaNewGuinea,andchangestogovernmentsandthepoliciestheyimplementaffecttheeconomicsituationandultimatelytherevenuesoftheGroup.Toaddressthis,theGroupreviewsitspricingandproductrangeregularlyandrespondsappropriatelytothesechanges.
(i) Foreignexchangerisk The Group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate
fluctuations arise. Exchange rate exposures are closelymanagedwithin approvedpolicyparameters.Major foreignexchangetransactionsrelatetoimportationofgoodsandserviceswithsettlementbasedonspotrates.ForeigncurrencyriskarisesfromrecognisedassetsandliabilitiesthataredenominatedinacurrencythatisnottheGroup’sfunctionalcurrency(refernotes1.4and2.21)
PacificCementLtdandBasicIndustriesLtdoperateinFijiandprocureassets,rawmaterialsandsuppliesfromprincipalsuppliersbasedpredominantlyinNewZealand,AustraliaandJapan.Asameasure,promptsettlementofliabilities(andassetsifnecessary)isexercisedbymanagementtominimisetheexposuretoforeignexchangelosses.Asanadditionalmeasure,thecompaniesnegotiatecompetitiverateswiththeirbankerstominimiselossesandmaximisegainswhenforeignexchangereceiptsandpaymentsbecomedue.TheGroup’sexposuretoforeignexchangeriskisnotmaterial.
(ii) Pricerisk TheGroup isexposedtoequitysecuritiesprice riskbecauseof investmentsheldby theGroupandclassifiedon the
consolidatedstatementoffinancialpositioneitherasavailable-for-saleoratfairvaluethroughprofitorloss.Tomanageitspriceriskarisingfrominvestmentinequitysecurities,theGroupdiversifiesitsportfolio.DiversificationoftheportfolioisdoneinaccordancewiththelimitssetbytheGroup.
The Group’s investments in equity of other entities that are publicly traded are quoted on the South Pacific StockExchange.
Sensitivity analysis Thetablebelowsetsouttheeffectonequityofareasonablypossibleincreaseintheindividualequitymarketpricesoflisted
equitiesof5%at30June2016.Theestimatesaremadeonanindividualinvestmentbasis.Theanalysisassumesthatallothervariables,inparticularinterestandforeigncurrencyrates,remainconstant.
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Impactonequity 533 567 304 290
Anequalchangeintheoppositedirectionwouldhavedecreasedequitybythesameamount.
(iii) Interestraterisk Theprincipalrisktowhichinvestmentsandlendingportfoliosareexposed,istheriskoflossfromfluctuationsinfuture
cashflowsorfairvaluesoffinancialinstrumentsbecauseofachangeinmarketinterestrates.Interestrateriskismanagedprincipallythroughmonitoringinterestrategapsandbyhavingpre-approvedlimitsfromre-pricingbonds.
InMerchantFinanceLimited(MFL)themanagementofinterestrateriskagainstinterestrategaplimitsissupplementedbymanagement’sregularmonitoringofthesensitivityofMFLfinancialassetsandliabilitiestovariousstandardinterestscenariosandmarketofferings.
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66 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
4. FINANCIAL RISK MANAGEMENT (continued)
4.1 RiskManagementFramework(continued)
(iii) Interestraterisk(continued) Interestrateriskismanagedthrough:1)investments;2)loanpricing;and3)depositpricing.MFLalwaystriestomaintain
aninterestspreadthatitbelievesissufficienttocaterfortheriskit istakingandisabovethecostof itsfundsandissufficienttocoveroperatingcosts.InterestspreadismonitoredmonthlyandissubmittedtotheReserveBankofFiji(RBF)formonitoringpurposes.
ThecarryingamountsoftheCompany’sandGroup’sinterestbearingfinancialinstrumentsaresetoutbelow:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000
Bankoverdraft 16,325 24,924 9,353 10,182
Bankloans 70,174 82,505 30,523 35,220
Fixedtermdepositsandshorttermborrowings(unsecured)
125,343 98,505 19,198 20,905
Total 211,842 205,934 59,074 66,307
AtthereportingdatetheinterestrateprofileoftheGroupandCompany’svariableinterestbearingfinancialinstrumentswasasfollows
Group Company
2016$’000
2015$’000
2016$’000
2015$’000
Bankoverdraft 16,325 24,924 9,353 10,182
Bankloans 62,629 74,551 30,523 41,810
Total 78,954 99,475 39,876 51,992
Sensitivity analysis A100basispoints(bp)increaseininterestratesatthereportingdatewouldhavedecreasedequityandtheprofitorlossby
amountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates,remainconstant.Theanalysisisperformedonthesamebasisfor2015.
Group Company
Equity$’000
Profit or loss before tax
$’000Equity$’000
Profit or loss before tax
$’000
30 June 2016Variablerateinstruments 790 790 40 40
30 June 2015Variablerateinstruments 995 995 52 52
TheCompanynortheGroupissubjecttomaterialinterestrateriskfromfinancialinstrumentswhichareatfixedinterest.
(b) Credit risk Credit risk is the riskoffinancial loss to theGroup if a customeror counterparty toafinancial instrument fails tomeet its
contractualobligations,andarisesprincipallyfromthegroup’sreceivablesandloansandadvancestocustomersandinvestees.
Creditriskarisesfromcashandcashequivalents,depositswithbanksandfinancialinstitutions,includingoutstandingreceivablesandcommittedtransactions.Forpotentialrentaltenants,ascreeningprocess,similartoaduediligenceisperformed,priortotheirbeinggranted leases.Forbanksandfinancial institutions,onlyreputablepartiesareacceptable. Asfaraspracticable,ifwholesalecustomersare independentlyrated,theseratingsareused. Otherwise, if there isno independentranking, riskcontrolassessesthecreditqualityofthecustomer,takingintoaccountitsfinancialposition,pastexperienceandotherfactors.Individualrisklimitsaresetbasedoninternalorexternalratingsinaccordancewithsetlimits.Theutilisationofcreditlimitsisregularlymonitored.Salestoretailcustomersaresettledincashorusingmajorcreditcards.
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67FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
4. FINANCIAL RISK MANAGEMENT (continued)
4.1 RiskManagementFramework(continued)
(b) Credit risk - continued ThesummaryoftheGroup’sexposuretocreditriskisasfollow:
Group2016
$’000
Group2015
$’000Loans and advancesNeitherpastduenorimpaired 130,663 94,531Pastduebutnotimpaired 31,751 29,558Individuallyimpaired 2,434 9,122Gross loans and advances 164,848 133,211
Less:unearnedrevenue 31,549 27,589Less:allowanceforimpairment 4,071 4,247Net loans and advances 129,228 101,375
Other receivablesNeitherpastduenorimpaired 30,704 29,713Pastduebutnotimpaired - -Individuallyimpaired 7,333 9,096Gross other receivables 38,037 38,809
Less:allowanceforimpairment 7,333 9,096Net other receivables 30,704 29,713
Cashandcashequivalents 24,827 7,959Held-to-maturityinvestments - 20,764Availableforsalefinancialassets 19,563 -Total 204,322 159,811
ThedetailsofimpairmentprovisionsforloansandreceivablesareprovidedinNotes12and13.
DetailsrelatingtoMFLaresetoutbelow:
FinancialassetsrelatingtoMFLclassifiedasneitherpastduenor impairedarefullyoperational loanfacilities.Managementreviewsallaccountsatbalancedateandwherenecessarymakesaprovisionforimpairment.
Financial assets classified as past due but not impaired are further classified as Standard or SpecialMentionwith arrearsbelow60days.Theseaccountsarecloselymonitoredtoensurethattheydonotdeterioratefurther.Securityinspectionsareundertakenontheseaccountstoverifythevalueofthecollateralpledged.Theseassetsaremonitoredbyspecialistcollectionteamsonadailybasisandfurthermonitoredbymanagementateachmonthend.Wherenecessarymanagementrestructurestheseloanstoenhancerecovery.
Individuallyassessedloansarethosethathavearrearsexceeding60daysand/orthosewhichintheviewofmanagementhaveahigherprobabilityoffailureintheneartermbeyonditscontrolandwherealossisexpectedtoarise.
Inordertomanagecredit risk,MFLcloselymonitorsexistingcustomers inensuringadebtserviceratiogreaterthan1andloantovalueratioof85%ismaintained,andensuringthatallnewcustomersgothroughcomprehensivecreditscreening.Furthermore,customeraccountsaregradedinternallyandallexistingcustomersarecategorisedasexcellent,good,satisfactoryorlimited.Furthertheindividualaccounts/customergroupsareclassifiedasStandard,SpecialMention,SubStandard,DoubtfulandLossforcreditriskmanagementpurposes.Allloansandadvancesaresecuredbycollateral.
MFLemploys a rangeofpolicies andpractices tomitigate credit riskwith themost commonpracticebeing the takingofcollateralwithguidelinesontheacceptabilityofspecificclassesofcollateralforcreditriskmitigation.Theprincipalcollateraltypesforloansandadvancesare:
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4. FINANCIAL RISK MANAGEMENT (continued)
4.1 RiskManagementFramework(continued)
(b) Credit risk - continued•Mortgagesoverresidentialproperties.•HirePurchaseAgreementsandBillofSaleovervehiclesandmachinery•Chargesoverbusinessassetssuchaspremises,inventoryandaccountsreceivable.•Chargesoverfinancialinstrumentssuchasdebtsecuritiesandequitiesandtermdeposits.
Longer-termfinance and lending to corporate entities are generally secured. In addition, in order to furtherminimise thepotentialforcreditlossMFLwillseekadditionalcollateralfromthecounterpartyonceimpairmentindicatorsareidentifiedfortherelevantindividualloansandadvances.
Collateralheldassecurityforfinancialassetsotherthanloansandadvancesdependsonthenatureoftheinstrument.
Credit risk concentration
ThecreditriskconcentrationforMFLisasfollows:
2016%
2015%
Industry
Agriculture 7.58 8.59
Buildingandconstruction 17.75 17.96
Manufacturing 5.18 5.68
Miningandquarrying 0.90 0.98
Privateindividuals 11.18 12.37
Professionalandbusinessservices 3.16 1.88
Transport,communicationandstorage 38.34 34.14
Wholesale,retail,hotelsandrestaurants 9.70 9.44
Others 6.21 8.96
Total 100.00 100.00
Creditconcentrationisdeterminedbasedontheindustryforwhichtheloanisgiven.
(c) Liquidity risk LiquidityriskistheriskthattheGroupwillencounterdifficultyinmeetingitsobligationsarisingfromitsfinancialliabilities.
Prudent and carefulmanagement of theGroup’s liquidity position is essential in order to ensure that adequate funds areavailabletomeettheGroup’songoingfinancialobligations.Prudentliquidityriskmanagementimpliesmaintainingsufficientcash,marketablesecuritiesandtheavailabilityoffundingthroughanadequateamountofcommittedcreditfacilities.DuetothedynamicnatureoftheunderlyingbusinessoftheGroup,managementaimsatmaintainingflexibilityinfundingbykeepingcommittedcreditlinesavailable.
AsummaryofthecontractualmaturityanalysisoftheGroup’sborrowingsandothernon-derivativefinancialliabilitiesasat30Juneissetoutbelowonanundiscountedbasisincludingestimatedinterestpayments:
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4. FINANCIAL RISK MANAGEMENT (continued)
4.1 RiskManagementFramework(continued)
(c) Liquidity risk - continued
Contractual cash flowsNon- derivative financial liabilities
Carrying amount
$’000Total
$’000
On demand
$’000
Up to 1 year$’000
1-2 years$’000
2-5 years$’000
More than
5 years$’000
30 June 2016BankOverdrafts 16,325 16,325 16,325 - - -Securedbankloans 70,174 81,690 - 14,371 12,541 28,704 26,074Depositsfromcustomersandshorttermborrowings 125,343 129,744 - 90,265 10,068 26,816 2,595Creditorsandaccruals 36,216 36,216 - 36,216 - - -
248,058 263,975 16,325 140,852 22,609 55,520 28,66930 June 2015BankOverdrafts 24,924 24,924 24,924 - - - -Securedbankloans 82,505 93,616 - 35,638 35,638 22,340 -Depositsfromcustomersandshorttermborrowings 98,505 106,102 - 62,506 16,946 25,418 1,232Creditorsandaccruals 33,668 33,668 - 33,668 - - -
239,602 258,310 24,924 131,812 52,584 47,758 1,232
AdditionaldetailsrelatingtoMFLaresetoutbelow:
InordertocomplywiththeReserveBank’srequirementsandtheBankingAct1995,MFLmustholdas liquiddepositsanamountequivalent to 10% of its total borrowed funds.TheMFL Board ensures that the investment standalone is sufficient tomeet theUnimpairedLiquidAssetsRatiorequirementswhicharecoveredentirelybylongtermbonds.
Thedailyliquiditypositionismonitored.ForMFL,thekeymeasureusedformanagingliquidityriskistheratioofnetliquidassetstodepositsfromcustomers.Monthlymaturitymismatchreportsarepreparedandanalysed.Maturityreportsoftermdepositsareactionedviapre-analysis(callingcustomertodeterminethestatusofre-investment)andMFLBoardAssetandLiabilityCommittee(ALCO)iskeptinformed.
MFL’sliquidityexposureismeasuredbycalculatingitsNetLiquidityGapandbycomparingcurrentratioswithtargets.MFLBoard/ALCOmonitorstheCompany’sliquiditypositionbyreviewingtheNetLiquidityGapexpressedasapercentageofliabilities:
Less than1 month
1 to <3 months
3 to <6 months
6 to <12months
Over 12 months
NetLiquidityGapasa%ofRateSensitiveAssets(nottoexceed)
-5% -7% -10% -20% 40%
Apartfromtheabove,MFLusesthefollowingasabenchmarkinmonitoringitsliquidityposition.
Ratio Target Tolerance Range
CashReserve Minimum8% Nottofallbelow5%
LiquidAssets/TotalDepositsRatio 20-25% Nottofallbelow20%
LiquidAsset/TotalAssetsRatio 10-20% Nottofallbelow10%
Loans/DepositRatio 120-135% Nottoexceed135%
Loans/AdjustedDepositRatio 100-120% Nottoexceed120%
UnimpairedLiquidAssetsRatio Minimum12% Nottofallbelow10%TheCashReserve ratio is calculatedbyexpressingcash reserves (comprisingofcashbookbalanceandshort termdeposits)asapercentage of total deposits. Other ratios are calculated according to RBF guidelines on liquidity risk management for creditinstitutions.Theloanstodepositratioandunimpairedliquidassetsratioaremonitoreddailywhilstotherratiosaremonitoredmonthly.Anyvarianceintheaboveratiosareactionedimmediatelybymanagement.
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70 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
4. FINANCIAL RISK MANAGEMENT (continued)
4.2 Capitalriskmanagement
TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapitalandbeincompliancewithstatutoryrequirements.
Inordertomaintainoradjustthecapitalstructure,theGroupmayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.
TheGroupmonitorscapitalonthebasisofthegearingratio.Thisratioiscalculatedasnetdebtdividedbytotalcapital.Netdebtiscalculatedastotalborrowings(including‘currentandnon-currentborrowings’asshownintheconsolidatedstatementoffinancialposition) lesscashandcashequivalents.Total capital is calculatedas‘equity’as shown in theconsolidatedstatementoffinancialpositionplusnetdebt.
ThegearingratiooftheGroupatbalancedateisasfollows:
2016 $’000
2015$’000
TotalBorrowings(excludingdepositsfromcustomers) 96,709 115,921
Less:Cashandcashequivalents(Note10) (8,502) 10,027
Netdebt 88,207 125,948
Totalcapital 217,933 204,134
Gearingratio 40% 62%
AdditionaldetailsrelatingtoMFLaresetoutbelow:
MFLissubjecttoexternallyimposedcapitalrequirementsbytheReserveBankofFiji.MFL’sobjectiveswhenmanagingcapitalare:
• TocomplywiththecapitalrequirementssetbytheReserveBankofFiji:• Tosafeguardthecompany’sabilitytocontinueasagoingconcernsothatitcancontinuetoprovidereturnsforshareholders
andbenefitsforotherstakeholders;and• Tomaintainastrongcapitalbasetosupportthedevelopmentofthebusiness.
CapitaladequacyandtheuseofregulatorycapitalaremonitoreddailybyMFL’smanagement,employingtechniquesbasedontheguidelinesdevelopedbytheBaselCommitteeasimplementedbytheReserveBankofFiji,forsupervisorypurposes.
TheReserveBankofFiji requiresMFLto (a)holdat least10%of its totalholdings in liquidassetsand(b)maintainaratiooftotalregulatorycapitaltorisk-weightedassetsatorabove15%.MFLcompliedwiththeserequirementsduringtheyear.
MFLalsomeasuresitsCreditLossReserverequirementonanannualbasisandduringthecurrentyeartransferredanamountofnil(2015:$621,000)tothisreserveincompliancewithReserveBankofFijiguidelines.
5. PROFITGroup Company
2016$’000
2015$’000
2016$’000
2015$’000
Theprofitbeforeincometaxhasbeendeterminedafter:(a) Crediting as other income
Netgainondisposalofproperty,plantandequipmentandassetsheldforsale 254 97 22 -
Managementfees 104 106 - -Rentalincome 2,520 2,442 - -Feeincome 678 504 - -Otherincome 1,647 1,745 179 431
5,203 4,894 201 431
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71FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
5. PROFIT
(a) Crediting as other income - continued
InthefinancialstatementsoftheCompany,dividendsreceivedfromsubsidiaryandothercompaniesamountingto$24,780,000(2015:$25,159,000)aretreatedaspartofoperatingrevenue.Seenote21forfurtherdetails.
(b) Charging as expense
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Auditors’remuneration:-auditfees-KPMG 287 363 73 78-otherauditors 84 79 - --otherservices-KPMG 10 7 - --otherauditors 76 117 30 73Directors’emoluments-forservicesasdirectors 428 404 213 149-forotherservices 38 63 38 62Provisionforimpairment/write-offofinventories 147 8 - -FNPFcontributions 2,397 2,015 101 107Marketingandpromotionexpenses 4,251 3,767 15 17Rent 2,058 2,638 226 223Repairsandmaintenanceexpense 5,443 3,623 - -Managementfee 1,032 820 - -
6. NET FINANCE COSTS
Exchangegain 465 42 - -Interestincome 56 - 1,087 1,108
Financeincome 521 42 1,087 1,108
Exchangeloss (648) (22) - -Reclassificationofforeigncurrencydifferencesondisposalofforeignoperations (5,717) - - -Interestexpense (3,886) (6,022) (2,331) (3,265)
Financecosts (10,251) (6,044) (2,331) (3,265)
Net finance costs recognised in profit or loss (9,730) (6,002) (1,244) (2,157)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
72 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
7. INCOME TAx
(a) Income tax expense
Theamountofincometaxattributabletothefinancialyeardiffersfromtheamountprimafaciepayableontheprofit.Thedifferenceisreconciledasfollows:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Profitbeforetax 32,853 23,904 20,442 12,328Primafacietaxpayableat10%(2015:10%) 3,285 2,390 2,044 1,233
Add/(deduct)Impactofdifferenceintaxrate 3,524 4,388 - -Dividendsreceived (144) (460) (2,478) (2,516)Exemptincome (372) (151) - -Otherpermanentdifferences 1,461 1,750 220 1,363Impactofequityaccountedprofit (149) (260) - -Other 96 (46) - (46)Changeintaxlossesandtimingdifferencesnotpreviouslybroughttoaccount
(670) (1,646) - -
2014and2015transitionaldividendtaxat1% 336 - - -(Over)/underprovisioninprioryear (394) (546) (195) (627)
Income tax expense/ (benefit) attributable to profit 6,973 5,419 (409) (593)
Totalincometaxexpenseismadeupof:
Currentincometaxexpense/(benefit) 6,472 5,761 (246) 82Transfertoliabilitiesheldforsale - 272 - -Deferredtax 559 (68) 32 (48)2014and2015transitionaldividendtaxat1% 336 - - -(Over)/underprovisioninprioryears (394) (546) (195) (627)
Income tax expense/ (benefit) attributable to profit 6,973 5,419 (409) (593)
(b) Currenttaxliability/(asset)
Balanceatbeginningofyear 163 2,779 (155) 465Incometaxpaid (5,994) (5,410) - (82)Incometaxrefund 311 - - -Transfertoliabilitiesheldforsale - (2,217) - -Currentincometaxexpense/(benefit) 6,472 5,761 (246) 82TransferofbalancefromVATaccount 58 (204) 9 72014and2015transitionaldividendtaxat1% 336 - - -(Over)/underprovisioninprioryears (394) (546) (195) (627)
Balanceatendofyear 952 163 (587) (155)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
73FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
7. INCOME TAx - Continued
(c) Deferredtaxassetsandliabilities
Group Company2016
$’0002015
$’0002016
$’0002015
$’000DeferredtaxassetsProperty,plant&equipment 96 425 16 18Annualleave 183 184 16 17Doubtfuldebts 2,124 2,370 2 31Inventoryprovisions 185 165 - -Others 83 - - -Unrealisedforeignexchangegain 9 5 - -Taxlosses 252 632 - -
2,932 3,781 34 66DeferredtaxliabilitiesProperty,plant&equipment (4,319) (4,619) - -Cyclonereservedeposit (118) (108) - -Fairvalueonrevaluation (877) (877) - -
(5,314) (5,604) - -
Asat30June2016,Groupcompanieshadunrecoupedincometaxlossesofapproximately$1.2million(2015:$7.1million)availabletooffsetagainstfutureyears’taxableincome.Thebenefitat20%(2015:20%)taxrateamountingtoapproximately$0.2million(2015:$1.4million)hasnotbeenbroughttoaccountasrealisationisnotconsideredtobeprobable.Undertheexistingincometaxlaws,assessedtaxlossesmayonlybecarriedforwardfor4yearsinsuccession.
Thebenefitwillonlybeobtainedif:
(i) the companies derive future assessable income of a nature and of an amount sufficient to enable the benefits from thedeductionsforthelossestoberealised;
(ii) thecompaniescontinuetocomplywiththeconditionsfordeductibilityimposedbythelaw;and(iii) nochangeintaxlegislationadverselyaffectthecompaniesinrealisingthebenefitfromthedeductionsforthelosses.
Movementintemporarydifferencesduringtheyear
Group1 July 2015
$’000
Recognised in profit or loss
$’00030 June 2016
$’000Deferred tax assetsProperty,plant&equipment 425 (329) 96Annualleave 184 (1) 183Doubtfuldebts 2,370 (246) 2,124Others - 83 83Inventoryprovisions 165 20 185Unrealisedforeignexchangeloss 5 4 9Taxlosses 632 (380) 252
3,781 (849) 2,932Deferred tax liabilitiesProperty,plant&equipment (4,619) 300 (4,319)Cyclonereservedeposit (108) (10) (118)Fairvalueonrevaluation (877) - (877)
(5,604) 290 (5,314)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
74 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
7. INCOME TAx - Continued
(c) Deferredtaxassetsandliabilities-continued
Group 1 July 2014$’000
Recognised in profit or loss
$’000
30 June 2015
$’000Deferred tax assetsProperty,plant&equipment 321 104 425Annualleave 272 (88) 184Doubtfuldebts 2,230 140 2,370Others 74 (74) -Inventoryprovisions 253 (88) 165Unrealisedforeignexchangeloss 5 - 5Taxlosses 1,102 (470) 632
4,257 (476) 3,781Deferred tax liabilitiesProperty,plant&equipment (5,173) 554 (4,619)Cyclonereservedeposit (98) (10) (108)Fairvalueonrevaluation (877) - (877)
(6,148) 544 (5,604)
Company 1 July 2015$’000
Recognised in profit or loss
$’000
30 June 2016
$’000Deferred tax assetsAnnualleave 17 (1) 16Doubtfuldebts 31 (29) 2Property,plant&equipment 18 (2) 16 66 (32) 34
1 July 2014$’000
Recognised in profit or loss
$’000
30 June 2015
$’000Deferred tax assetsAnnualleave 17 - 17Doubtfuldebts 30 1 31Property,plant&equipment (29) 47 18
18 48 66
8. DISCONTINUED OPERATIONS
Thefollowingtransactionsweretreatedasa“LossofControlofaSubsidiary”inaccordancewithIFRS10–“ConsolidatedFinancialStatements”andaccordingly,assetsand liabilitiesof the formersubsidiarycompanieshavebeende-recognised fromtheGroup’sstatementoffinancialpositionasat30June2016.
Basic Industries (PNG) Limited
In January2016,FijianHoldingsLimitedentered intoaSaleandPurchaseAgreementwithPernix (PNG)Limited todisposeof its100%shareholdinginBasicIndustries(PNG)Limited.Thetransactionwascompletedon31March2016andBasicIndustries(PNG)Limited’sidentifiablenetassetspositionasat31March2016wasutilisedinpresentingtheeffectofthisdisposalintheGroupfinancialstatements.Theeffectofthedisposalinthegroup’sfinancialstatementsisagainof$567,946representedbyconsiderationof$757,691lessgroup’sshareofnetassetsde-recognisedof$189,745.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
75FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
8. DISCONTINUED OPERATIONS - Continued
MediaNiuginiLimited
In January2016,FijiTelevisionLimitedentered intoaSaleandPurchaseAgreementwithTelikomPNGLtd todisposeof its100%shareholdinginMediaNiuginiLimited.Thetransactionwascompletedon29January2016andMediaNiugini’sidentifiablenetassetspositionasat31January2016wasutilisedinpresentingtheeffectofthisdisposalintheGroupfinancialstatements.Theeffectofthedisposalinthegroup’sfinancialstatementsisagainof$384,027representedbyconsiderationof$13,678,955lessgroup’sshareofnetassetsde-recognisedof$13,294,928.
FijiTelevisionLimited-SkyPacificdivision
On17September2015,FijiTelevisionLimitedannouncedthatithadenteredintonegotiationswithDigicelFijiLimitedforthesaleof100%ofitsSkyPacificdivision.Thistransactionwassubsequentlysettledon1April2016,for$3,383,304.SkyPacific’sidentifiablenetassetspositionasat31March2016wasutilisedinpresentingtheeffectofthisdisposalintheGroupfinancialstatements.Theeffectofthedisposalinthegroup’sfinancialstatementsisalossof$575,241representedbyconsiderationof$3,383,304lessgroup’sshareofnetassetsde-recognisedof$3,958,545.
FHLLogisticsLimited
InDecember2013,theGroupceasedoperationsofitswhollyownedsubsidiary,FHLLogisticsLimited.Thesubsidiarywasclassifiedasadiscontinuedoperationfromthe2014financialyearandthiscontinuedintothe2016financialyear.AsaconsequenceoftheabovetransactionsBasicIndustries(PNG)Limited,MediaNiuginiLimited,SkyPacificandFHLLogisticsLimitedhavebeentreatedasdiscontinuedoperationsandtheirresultshavebeenshownaspartofthelossfromDiscontinuedOperationsintheprofitorlossassetoutbelow:
(a) Results of discontinued operations
FHL Logistics Limited
Media Niugini Limited
Sky Pacific Basic Industries (PNG) Limited
2016$’000
2015$’000
2016$’000
2015$’000
2016$’000
2015$’000
2016$’000
2015$’000
Revenue - 97 10,381 18,764 9,846 14,526 536 1,058Expenses - (15) (9,452) (16,286) (13,787) (15,687) (1,180) (3,249)Results from operating activities - 82 929 2,478 (3,941) (1,161) (644) (2,191)Incometax - - (93) (244) - - - -Results from operating activities, net of tax - 82 836 2,234 (3,941) (1,161) (644) (2,191)Gain/(loss)onsaleofdiscontinuedoperation - - 384 - (575) - 568 -Incometaxongainonsaleofdiscontinuedoperation - - - - - - - -Profit/ (Loss) from discontinued operations - 82 1,220 2,234 (4,516) (1,161) (76) (2,191) Impactonearningspershare
2016 2015
Basiclosspershare 7cents 5cents
Dilutedlosspershare 7cents 5centsOf thenet loss fromdiscontinuedoperationof$3,372,000 (2015:$1,036,000),$2,106,000 (2015:$1,448,000) isattributable to theownersoftheCompany.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
76 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
8. DISCONTINUED OPERATIONS - Continued
b) Cashflowsfrom/(usedin)discontinuedoperations
FHL Logistics Limited
Media Niugini Limited
Sky Pacific Basic Industries (PNG) Limited
2016$’000
2015$’000
2016$’000
2015$’000
2016$’000
2015$’000
2016$’000
2015$’000
Netcashfromoperatingactivities - 12 103 2,876 1,183 877 (132) (1,016)Netcashusedinfinancingactivities - (184) - - - - - (1,510)Netcashusedininvestingactivities - - - (2,873) - - - 1,072Net cash inflow/(outflow) for the year - (172) 103 3 1,183 877 (132) (1,454)
InrelationtoFHLLogistics,therewasnomaterialimpactonthefinancialpositionoftheGroup,giventhewinddownoftheoperation.
c) EffectofdisposalonthefinancialpositionoftheGroup
Media Niugini Limited
$’000
Sky Pacific
$’000
Basic Industries (PNG) Limited
$’000
Total
$’000Property,plant&equipment 9,204 3,687 2,121 15,012Loans,advancesandreceivables 1,410 - 1,299 2,709Inventories 684 376 - 1,060Cashandcashequivalents 4,084 - - 4,084Goodwill 860 - - 860Deferredtax (231) - - (231)Borrowings - - (1,897) (1,897)Payables (2,716) (105) (1,333) (4,154)Net assets and liabilities 13,295 3,958 190 17,443Considerationreceived,satisfiedincash 13,679 3,383 - 17,062Cashandcashequivalentsdisposedof (4,084) - - (4,084)Net cash inflows 9,595 3,383 - 12,978
9. DIVIDENDS PAID
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Ordinary - A classDividendpaidat23cents(2015:22cents) 2,407 2,302 2,407 2,302Ordinary - B class Dividendpaidat23cents(2015:22cents) 4,600 4,400 4,600 4,400
7,007 6,702 7,007 6,702
10. CASH AND CASH EqUIVALENTS
a) Forthepurposesofthecashflowstatements,cashandcashequivalentscomprisethefollowing:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Cashonhandandatbank 23,757 6,389 156 157Termdeposits 1,070 1,570 - -
24,827 7,959 156 157Cashincludedinassetsforsale(Note17) - 6,938 - -Bankoverdrafts(Note27) (16,325) (24,924) (9,353) (10,182)
8,502 (10,027) (9,197) (10,025)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
77FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
10. CASH AND CASH EqUIVALENTS - Continued
b) Financingfacilities
FacilitiesavailabletotheGrouparebankoverdrafts.Financingfacilitiesof$37.50millionwereavailabletotheGroupasat30June2016(2015:$36.20million)ofwhich$12.27million(2015:$22.63million)wasutilised.Seealsonote27.
11. HELD-TO-MATURITY INVESTMENTS
Group Company2016
$’0002015
$’0002016
$’0002015
$’000CurrentDepositswithfinancialinstitutions - 10,510 - -Non-currentSecurities-Governmentsecurities - 9,501 - -
-Depositswithfinancialinstitutions - 753 - -
- 10,254 - -
- 20,764 - -
Held-to-maturityfinancialassetsarevaluedinaccordancewithNote2.4ofthegroup’saccountingpolicy.Duringtheyear,MerchantFinanceLimited,asubsidiary,redeemedanumberoftermdepositspriortotheirmaturitydate.Asaresult,theheldtomaturityportfolioofalltheentitiesintheGrouphasbeen“tainted”andnofinancialinstrumentsmaybeclassifiedasheldtomaturityforaperiodoftwoyearsinaccordancewiththerequirementsofIAS39.Theportfoliohasthereforebeenreclassifiedtoavailableforsalefinancialassetsandbeenmarkedtomarketthroughothercomprehensiveincome.
12. LOANS, ADVANCES AND RECEIVABLES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000CurrentTradereceivables 22,942 35,055 - -Provisionforimpairedreceivables (7,266) (7,360) - -
15,676 27,695 - -Netloansandadvances-thirdparties(Note13) 63,728 48,273 - --relatedparties - - 5,457 2,758Otherreceivables-thirdparties 6,493 3,292 151 575-relatedparties 2,713 - 8,843 14,217Provisionforimpairedreceivables (67) (1,736) (14) (3,951)
88,543 77,524 14,437 13,599Non-currentNetloansandadvances-thirdparties(Note13) 65,500 53,102 - --relatedparties - - 6,030 12,437Otherreceivables 5,889 462 5,304 -
71,389 53,564 11,334 12,437Provisions for impairmentBalanceatthebeginningoftheyear 9,096 8,160 3,951 2,816Additionalprovisionsmade 2,444 2,360 - 154Reclassificationofprovisions - - - 1,165Baddebtswrittenoff (4,121) (1,424) (3,937) -Reversalofprovisions (86) - - (184)Balanceattheendoftheyear 7,333 9,096 14 3,951
Relatedpartyloansandadvancesareunsecured.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
78 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
13. LOANS AND ADVANCES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Grosstermreceivables 164,848 133,211 - -Unearnedincome (31,549) (27,589) - -
133,299 105,622 - -
Individuallyassessedallowance (1,127) (2,032) - -Collectiveallowance (2,944) (2,215) - -
129,228 101,375 - -MaturityanalysisNotlongerthan3months 19,902 12,682 - -Longerthan3andnotlongerthan12months 45,141 36,311 - -
65,043 48,993 - -Unearnedincome (880) (376) - -Individuallyassessedallowance (41) (221) - -Collectiveallowance (394) (123) - -Current (Note 12) 63,728 48,273 - -
Longerthan1yearandnotlongerthan5years 92,533 79,777Longerthan5years 7,272 4,441 - -
99,805 84,218Unearnedincome (30,669) (27,213) - -Individuallyassessedallowance (1,086) (1,811) - -Collectiveallowance (2,550) (2,092) - -
Non-current (Note 12) 65,500 53,102 - -
129,228 101,375 - -
Impairmentofloansandadvances
2016$’000
2015$’000
Individualallowanceforimpairment
Collectiveallowanceforimpairment
Individualallowanceforimpairment
Collectiveallowanceforimpairment
Balanceatthebeginningoftheyear 2,032 2,215 2,967 2,102Increaseinimpairmentallowances 807 729 478 216Reversalsofimpairment (1,712) - (1,413) (103)Balanceattheendoftheyear 1,127 2,944 2,032 2,215
14. INVENTORIES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Rawmaterials,spares,storesandsupplies 13,081 18,326 - -Finishedgoods 17,301 16,374 - -Goodsintransit 1,057 1,065 - -Provisionforobsolescence (924) (869) - -
30,515 34,896 - -
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
79FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
15. PROPERTY, PLANT AND EqUIPMENT
(a) Carryingvaluesofproperty,plantandequipmentaresetoutbelow:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Freeholdlandandimprovements-atcost/deemedcost 9,801 9,810 - -
Islandproperties-atdirectors’valuation 8,000 8,000 - -
Leaseholdland,improvementsandbuildingsatcost/deemedcost 59,658 57,513 - -Accumulateddepreciation (10,312) (9,300) - -
49,346 48,213 - -Plantandequipment-atcost/deemedcost 155,931 156,726 1,138 1,233Accumulateddepreciation (100,711) (95,849) (981) (995)Allowanceforimpairment (3,658) (1,500) - -
51,562 59,377 157 238Capitalworksinprogress-atcost 5,550 1,881 - -
124,259 127,281 157 238 (b) Reconciliationofproperty,plantandequipment
Reconciliationofthecarryingamountsofeachclassofproperty,plantandequipmentatthebeginningandendofthecurrentyearissetoutbelow:
GroupFreeholdlandand
improvements$’000
Island
properties$’000
Leaseholdland,
improvementsandbuildings
$’000
Plantand
equipment$’000
Capitalworkin
progress$’000
Total$’000
Carryingamountat1July2015 9,810 8,000 48,213 59,377 1,881 127,281Transfersfrominvestmentproperty - - 2,261 - - 2,261Additions - - 1,377 2,667 8,688 12,732Disposals (9) - (215) (3,448) (758) (4,430)Transfer(to)/fromcapitalworkinprogress - - 196 4,017 (4,213) -Impairment - - - (2,158) (48) (2,206)Transfer(to)assetsheldforsale - - (1,416) - - (1,416)Depreciation/amortisation - - (1,070) (8,893) - (9,963)Carryingamountat30June2016 9,801 8,000 49,346 51,562 5,550 124,259
CompanyFreeholdlandand
improvements$’000
Island
properties$’000
Leaseholdland,
improvementsandbuildings
$’000
Plantand
equipment$’000
Capitalworkin
progress$’000
Total$’000
Carryingamountat1July2015 - - - 238 - 238
Additions - - - 58 - 58
Disposals - - - (13) - (13)
Depreciation - - - (126) - (126)
Carryingamountat30June2016 - - - 157 - 157
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
80 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
15. PROPERTY, PLANT AND EqUIPMENT - Continued
(b) Reconciliationofproperty,plantandequipment-continued
GroupFreeholdlandand
improvements$’000
Island
properties$’000
Leaseholdland,improvementsandbuildings
$’000
Plantand
equipment$’000
Capitalworkin
progress$’000
Total$’000
Carryingamountat1July2014 7,667 8,000 40,213 51,542 11,144 118,566
Transfer(to)assetsheldforsale - - - (5,911) - (5,911)
Transferfromassetsheldforsale - - - 3,523 - 3,523
Transfersfrominvestmentproperty 2,169 - 6,840 - - 9,009
Additions - - 1,929 6,555 6,855 15,339
Disposals (26) - - (150) - (176)
Transfer(to)/fromcapitalworkinprogress - - - 13,204 (13,204) -
Transfertoinvestmentproperty - - - - (2,261) (2,261)
Expensedduringtheyear - - - - (38) (38)
Transfer(to)assets - - - - (615) (615)
Effectsofmovementsinexchangerate - - - (342) - (342)
Depreciation/amortisation - - (769) (9,044) - (9,813)
Carryingamountat30June2015 9,810 8,000 48,213 59,377 1,881 127,281
Company
Carryingamountat1July2014 - - - 403 - 403
Additions - - - 19 - 19
Disposals - - - - - -
Depreciation - - - (184) - (184)
Carryingamountat30June2015 - - - 238 - 238
(c) ThedepreciationandamortisationpolicyissetoutinNote2.5.
(d) Refertonote27foritemschargedassecurity.
(e) The islandproperty inNanuyaLailai Island–Yasawa,was revaluedby theDirectorsofBlueLagoonCruises Limitedbasedonanindependent valuationbyPacificValuations Limiteddated24 June2013.The valuationwasmadeon thebasis of recentmarkettransactionsonarm’slengthterms.
(f) Investmentpropertiesaretransferredtoproperty,plantandequipmentwheretheyareoccupiedbyGroupcompanies.Thereisnoimpactonprofitorlossofthistransferasinvestmentpropertiesareheldatcostlessdepreciation.
(g) Duringtheyear,BlueLagoonCruisesLimitedengagedtheservicesofDoverMarinetocarryoutavaluationtodeterminethefairvalueofthevesselMystiquePrincess.BasedonthisvaluationthesubsidiaryhaswrittendowntheMystiquePrincesstoitsresidualvalueresultinginanimpairmentlossof$2,158,171.
16. CONTRACT ASSETS
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Costbeginningoftheyear 4,329 3,102 - -Additions 333 1,227 - -Accumulatedamortisation (2,234) (1,400) - -Accumulatedimpairment (947) (849) - -Disposal (1,156) - - -
Closingbalance 325 2,080 - -
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
81FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
16. CONTRACT ASSETS - Continued
ThesecostsrelatetoFijiTelevisionLimitedandtheamountsrecordedascontractassetsasat30June2015relatedtodecodersthatwerehiredout tocustomers.Thecostswereamortisedover theestimatedcustomer life.Thesedecodersweresold toDigicelFijiLimitedaspartof the saleof theSkyPacificoperations.During theyear, FijiTelevisionLimitedhiredout radioequipmentworth$327,661totheFijiPoliceForce.TheseassetsremainthepropertyofFijiTelevisionLimited;howevertheyhavebeentransferredfromproperty,plantandequipmentandincludedundercontractassetsduetothenatureoftheassets.
17. ASSETS HELD FOR SALE
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Assetsheldforsale-other 1,416 450 - -
(a)TotalAssetsheldforsale 1,416 21,031 - -
(b)Totalliabilitiesheldforsale - 6,875 - - AssetsclassifiedasheldforsaleconsistofablockoflandinSuvabelongingtoMerchantFinanceLimited.EffortstoselltheassethavecommencedandasaleisexpectedbyDecember2016.
AssetsandliabilitiesofdisposalgroupheldforsaleOn5February2015,FijiTelevisionLimitedannouncedthatithadsignedasaleandpurchaseagreementwithTelikomPNGLtdforthesaleof100%ofitswhollyownedsubsidiary,MediaNiuginiLtd.On31March2016FijiTelevisionannouncedthesaleofthesubsidiary,resulting inagainonsaleof$384,027.Theassetsand liabilitiesofthesubsidiaryasat30June2015werestatedattheircarryingamountandcomprisedthefollowing:
2015$’000
2015$’000
Property,plantandequipment 7,948 Deferredtaxliability 245Intangibleassets 67 Employeeentitlements 358Cashandcashequivalents 6,938 Tradeandotherpayables 4,135Tradeandotherreceivables 3,917 Currenttaxliability 2,137Goodwill 1,012 Liabilitiesheldforsale 6,875Inventories 699Assetsheldforsale 20,581
18. INVESTMENT PROPERTIES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Cost Openingbalance 10,326 14,757 - -Acquisitions 3,400 5,034 - -Workinprogress 785 216 - -Transferstoproperty,plantandequipment (2,261) (9,681) - -Disposals - - - -Closingbalance 12,250 10,326 - -Accumulated depreciationOpeningbalance 1,432 1,750 - -Depreciationchargefortheyear 405 354 - -Transferstoproperty,plantandequipment (307) (672) - -Disposals - - - -Closingbalance 1,530 1,432 - -Carrying amountOpeningbalance 8,894 13,007 - -
Closingbalance 10,720 8,894 - -
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
82 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
18. INVESTMENT PROPERTIES - Continued
Investmentpropertiesarestatedatcostlessaccumulateddepreciation.InvestmentpropertiesoccupiedbytheGrouparetransferredtoproperty,plantandequipmentonconsolidation.Asat30June2016,thefairvalueoftheinvestmentpropertiesheldbyFHLPropertiesLimitedwas$36.180million(2015:$30.980million)which isbasedonvaluationscarriedoutby independentvaluers,RolleAssociates in their reportsdated7May2016.Thecarryingamountoftherelatedpropertiesasat30June2016is$18,563,000(2015:$18,646,000),ofwhich$6,493,000(2015:$6,417,000)isclassifiedasInvestmentPropertiesand$12,070,000(2015:$12,229,000)asProperty,plantandequipment.
InJuly2016,anindependentvaluationwascarriedoutbyRolleAssociatesofRBPatelGroupLimited’spropertyatMartintar,Nadiwhich isapportionedbetweenproperty,plantandequipment,and investmentproperty.Thepropertywasvaluedat$20millionwhichisaboveitscombinedcarryingvalueinthebooks.Theexcessofmarketvalueoverbookvaluehasnotbeenbroughttoaccount.
19. INTANGIBLES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Goodwillonconsolidation 62,620 62,620 - -Provisionforimpairmentongoodwill (6,912) (6,912) - -Managementrights 6,377 6,878 - -Software 211 65 - -F1AudioVisualCopyright 1,151 1,151 - -Provisionforimpairment (1,151) (1,151) - -
Totalintangibles 62,296 62,651 - -Movementsduringtheyearareasfollows:Openingnetbookamount 62,651 70,212 - -Additions 171 129 - -Transfertoassetsheldforsale - (1,079) - -Impairmentofgoodwill - (6,100) - -Amortisationchargeonsoftware (25) (11) - -Amortisationofmanagementrights (501) (500) - -
Totalintangibles 62,296 62,651 - -
TheaccountingpolicyonintangiblesissetoutinNote2.9andimpairmentlossongoodwillisrecognisedinprofitorloss.
(a) FHLRetailingLimited
Impairment test for goodwillGoodwillof$12.112mhasbeentestedforimpairmentbyreviewingtheunderlyingnetassetssupportingtheinvestmentinsubsidiarywhichholdstheGroup’s51%investmentinRBPatelGroupLtd.
ManagementvaluetheinvestmentinRBPatelGroupLtdatfairvaluelessestimatedcoststosellwhichissignificantlyabovecostandthereforehaveconcludedthatgoodwillisnotimpaired.FairvalueforRBPatelGroupLimitedhasbeendeterminedbasedonquotedpriceofsharestradedontheSouthPacificStockExchangeat30June2016of$3.10(2015:$2.98)lessestimatedcosttosell.AdecreaseinRBPatelGroupLimited’ssharepriceby94centswouldresultinimpairment.ThefairvaluemeasurementwascategorisedasaLevel1fairvaluebasedonquotedprices.ThecarryingamountoftheCGUin2016wasdeterminedtobelowerthanitsrecoverableamountof$46,486,000(2015:$44,686,000).
Impairment test for management rightsManagementrightsisconsideredacashgeneratingunit(CGU).TherecoverableamountoftheCGUisdeterminedbasedonvalueinusecalculations.Freecashflowfrommanagementrightswascomputedbasedontheforecastmanagementfeeincomeforthenext15yearsnetofmanagementfeeexpenseandincometaxexpensethereon.
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83FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
19. INTANGIBLES - Continued
Impairment test for management rights - continued
TheseprojectionswerebasedonfinancialbudgetsapprovedbymanagementfortheyearendingJune2017.CashflowsbeyondJune2017areextrapolatedusingtheestimatedgrowthratesintheunderlyingbusiness.ThegrowthratedoesnotexceedthelongtermaveragegrowthrateinwhichtheCGUoperates.
2016 2015
InpercentDiscountrate 10.0 10.0Terminalvaluegrowthrate 2.0 2.0Theweightedaveragegrowthratesarebasedonmanagement’sassessment.Thediscountrateusedreflectstheriskadjustedrateofreturn.Managementrightsisbeingamortisedoveritsremaininglifeonastraightlinebasis.
(b) SouthSeaCruisesLimited
Impairment test for goodwill
Goodwillof$46.143mhasbeentestedforimpairmentbyreviewingtheunderlyingnetassetssupportingtheinvestmentinsubsidiary.TherecoverableamountofthisCGUwasbasedonitsvalueinuse,determinedbydiscountingthefuturecashflowstobegenerated.ThecarryingamountoftheCGUin2016wasdeterminedtobelowerthanitsrecoverableamountof$89.837m(2015:$87.475m).Thekeyassumptionsusedintheestimationofvalueinusewereasfollows:
2016 2015
InpercentDiscountrate 13.0 12.7Terminalvaluegrowthrate 2.5 2.5BudgetedEBITDAgrowthrate(averageofnextfiveyears) 7.0 7.3
Thediscount ratewasapost-taxmeasurebasedon thehistorical industryaverageweighted-averagecostofcapital,withadebtleveragingof40%atamarketinterestrateof4%.
Fiveyearsofcashflowswereincludedinthediscountedcashflowmodel.Along-termgrowthrateintoperpetuityhasbeendeterminedasthelong-termcompoundannualEBITDAgrowthrateestimatedbymanagement,consistentwiththeassumptionthatamarketparticipantwouldmake.
BudgetedEBITDAwasbasedonexpectationsoffutureoutcomestakingintoaccountpastexperience,adjustedfortheanticipatedrevenuegrowth.Revenuegrowthwasprojectedtakingintoaccounttheaveragegrowthlevelsexperiencedoverthepastfiveyearsandtheestimatedsalesvolumeandpricegrowthforthenextfiveyears.
An adversemovement in a key assumption thatwould lead to impairment is set out below.Management has identified that areasonablypossiblechangeintwokeyassumptionscouldcausefurtherimpairmentofgoodwillareasfollows:
2016
Movementinpercent
Impairment$000
Discountrateincreases 1.0 2,638BudgetedEBITDAgrowthratedecrease 1.0 2,404
(c) Fiji Television Limited
Impairment test for goodwill
Goodwillof$1.984mhasbeentestedforimpairmentbyreviewingtheunderlyingnetassetssupportingtheinvestmentinsubsidiarywhichholdstheGroup’s61.6%investmentinFijiTelevisionLtd.
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84 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
19. INTANGIBLES - Continued
(c) Fiji Television Limited - continued
Impairment test for goodwill - continued
ManagementvaluetheinvestmentinFijiTelevisionLtdatfairvaluelessestimatedcoststosellwhichissignificantlyabovecostandthereforehaveconcludedthatgoodwillisnotimpaired.FairvalueforFijiTelevisionLimitedhasbeendeterminedbasedonquotedpriceofsharestradedontheSouthpacificStockexchangeat30June2016of$2.39(2015:$2.50)lessestimatedcosttosell.AdecreaseinFijiTelevisionLimited’ssharepriceby$1.70wouldresultinimpairment.ThefairvaluemeasurementwascategorisedasaLevel1fairvaluebasedonquotedprices.ThecarryingamountoftheCGUin2016wasdeterminedtobelowerthanitsrecoverableamountof$14,936,000(2015:$15,624,000).
20. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available-for-salefinancialassetsarevaluedinaccordancewithNote2.4ofthefinancialstatements.
Group Company2016
$’0002015
$’0002016
$’0002015
$’000(a) Listed/quoted securities -AmalgamatedTelecomHoldingsLtd 3,339 3,277 - --FijianHoldingsUnitTrust 5,096 4,960 5,093 4,957-PacificGreenIndustriesLtd 1,038 2,077 - --FijiCareInsurance 90 103 - --KontikiGrowthFund 101 82 - --Communications(Fiji)Ltd 2 2 - --FlourMillsofFijiLtd 986 844 986 844
10,652 11,345 6,079 5,801(b) Unlisted securitiesSharesinsubsidiarycompanies-BasicIndustriesLtd - - 11,626 7,822-SouthSeaCruisesLimited - - 55,500 55,500BlueLagoonCruisesHoldingsLtd*BlueLagoonCruisesLimited*-BasicIndustries(PNG)Ltd - - - --FHLMediaLimited - - 33,187 24,000FijiTelevisionLimited*LifeCinemaLimited*-FHLLogisticsLtd - - - --FHLRetailingLtd - - 44,832 40,266RBPatelGroupLimited*-FHLStockbrokersLimited - - 583 530-PacificCementsLimited - - 6,116 5,154-FHLFundManagementLtd - - 1,335 1,335-FHLPropertiesLimited - - 25,770 18,651-MerchantFinanceLimited - - 39,928 39,928
- - 218,877 193,186
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
85FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
20. AVAILABLE-FOR-SALE FINANCIAL ASSETS – Continued
(b) Unlisted securities – continuedGroup Company
2016$’000
2015$’000
2016$’000
2015$’000
Shares in other companies-GoodmanFielderInternational(Fiji)Ltd 2,200 2,200 2,200 2,200-GoldenManufacturersLtd(Note23) - - 16,699 15,910-MarshLtd(Note23) - - 6,111 5,366-NewWorldLtd 3,871 3,490 3,871 3,490-SouthPacificStockExchange 15 15 - --FijiGasCompanyLtd 979 805 - --Pernix(Fiji)Limited(Note23) - - 2,100 3,764-AsianPaints(SouthPacific)Ltd 1,527 1,527 1,527 1,527
8,592 8,037 32,508 32,257Other-Depositswithfinancialinstitutions 9,263 - - --Governmentsecurities 10,300 - - --Other 55 55 - -
19,618 55 - -
Totalinvestments 38,862 19,437 257,464 231,244
Thesplitbetweencurrentandnon-currentisasfollows:Current 9,263 - - -NonCurrent 29,599 19,437 257,464 231,244
Totalinvestments 38,862 19,437 257,464 231,244
*TheresultsofthesesubsidiarieshavebeenconsolidatedinthecarryingvalueofSouthSeaCruisesLimited,FHLMediaLimitedandFHLRetailingLimitedrespectively.
(c) Valuationoffinancialinstruments
TheGroupmeasuresfairvaluesusingthefollowingfairvaluehierarchythatreflectsthesignificanceoftheinputsusedinmakingthemeasurements:
Level1:fairvalueiscalculatedusingquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.
Level2:fairvalueisestimatedusinginputsotherthanquotedmarketpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(asprices)orindirectly(derivedfromprices).
Level3: fairvalue isestimatedusing inputs for theassetor liability thatarenotbasedonobservablemarketdata (unobservableinputs).
TheGrouprecognisestransfersbetweenlevelsofthefairvaluehierarchyattheendofthereportingperiodduringwhichthechangehasoccurred.
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86 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
20. AVAILABLE- FOR- SALE FINANCIAL ASSETS – continued
(c) Valuationoffinancialinstruments-continued
Thefollowingtableshowsthecarryingamountsandfairvaluesoffinancialassetsandfinancialliabilities,includingtheirlevelsinthefairvaluehierarchy.Itdoesnotincludefairvalueinformationforfinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueifthecarryingamountisareasonableapproximationoffairvalue:
Carryingamount Fairvalue
Group30 June 2016
Held-to-maturity
$’000
Loansandreceivables
$’000
Available-for-sale$’000
Otherfinancialliabilities
$’000Total$’000
Level1$’000
Level2$’000
Level3$’000
Total$’000
Financial assets measured at fair valueLocallistedequities - - 10,652 - 10,652 10,652 - - 10,652Unlistedequities - - 8,592 - 8,592 - 979 7,613 8,592Otherequities - - 55 - 55 - - 55 55Depositswithfinancialinstitutions
- - 9,263 - 9,263 - 9,263 - 9,263
Governmentbonds - - 10,300 - 10,300 - 10,300 - 10,300 - - 38,862 - 38,862 10,652 20,542 7,668 38,862Company30 June 2016Financial assets measured at fair valueLocallistedequities - - 6,079 - 6,079 6,079 - - 6,079Unlistedequities - - 251,385 - 251,385 - - 251,385 251,385Otherequities - - - - - - - - - - - 257,464 - 257,464 6,079 - 251,385 257,464
During2016theHeldtoMaturityportfoliooftheGroupwasreclassifiedtoAvailableforSaleasaresultofa“tainting”issueduetoearlyredemptionofcertaintermdeposits.ThisportfoliowillremainasAvailableforSaleforthenexttwoyears.
Carryingamount Fairvalue
Group30 June 2015
Held-to-maturity
$’000
Loansandreceivables
$’000
Available-for-sale$’000
Otherfinancialliabilities
$’000Total$’000
Level1$’000
Level2$’000
Level3$’000
Total$’000
Financial assets measured at fair valueLocallistedequities - - 11,345 - 11,345 11,345 - - 11,345Unlistedequities - - 8,037 - 8,037 - 805 7,232 8,037Otherequities - - 55 - 55 - - 55 55 - - 19,437 - 19,437 11,345 805 7,287 19,437Company30 June 2015Financial assets measured at fair valueLocallistedequities - - 5,801 - 5,801 5,801 - - 5,801Unlistedequities - - 225,443 - 225,443 - - 225,443 225,443Otherequities - - - - - - - - - - - 231,244 - 231,244 5,801 - 225,443 231,244
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
87FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
20. AVAILABLE- FOR- SALE FINANCIAL ASSETS – continued
(c) Valuationoffinancialinstruments-continued
The following table shows the valuation techniques used inmeasuring Level 2 and Level 3 fair values, aswell as the significantunobservableinputsused.
Type Valuation technique Significant unobservable inputs
Inter-relationship between significant unobservable inputs and fair value measurement
Equitysecurities
Dividendscapitalisationtechnique:Thevaluationmodelisbasedonthefuturemaintainabledividendsandcapitalisationrates.
Marketcomparisontechnique:Thevaluationmodelisbasedonmarketmultiplesderivedfromquotedpricesofcompaniescomparabletotheinvesteeandtheexpectedfuturemaintainableearningsoftheinvestee.Theestimateisadjustedfortheeffectofcontrol,size,countryriskandthenon-marketabilityoftheequitysecurities.
Nettangibleassets:Thevaluationmodelisbasedontherecoverableamountofthenettangibleassetsofthebusinessencompassingtheequitysecurity.
-Capitalisationrates(2016:5-10%;2015:5-10%)-Forecastdividendyield
-Adjustedmarketmultiple-Forecastedearnings
-Recoverableamountofthenettangibleassets
Theestimatedfairvaluewouldincrease/(decrease)ifanyofthesignificantunobservableinputswerechanged.Generally,achangeintheannualgrowthrateisaccompaniedbydirectionallysimilarchangeinfuturemaintainabledividendsandearnings.
Governmentbonds
Marketcomparison-ThefairvalueofthelongterminvestmentsecuritiesisbasedonmarketpricespublishedbytheReserveBankofFiji.
Notapplicable Notapplicable
FairvalueofassetsincludedinLevel3arebasedonDirectors’valuationsandindependentvaluationconductedbySimmonsCorporate.
Duringthefinancialyearended30June2016,therewerenotransfersinandoutoffairvaluehierarchylevelsmentionedabove.TherearenomaterialmovementsbetweentheopeningandclosingbalancesinLevel3ofthefairvaluehierarchy.ThefollowingtableshowsareconciliationfromtheopeningbalancestotheclosingbalancesforLevel3fairvalue.
Group Company$’000 $’000
Balanceat1July2014 6,292 205,212Gain included in OCI-Netchangeinfairvalue 995 20,231Balance at 30 June 2015 7,287 225,443Balanceat1July2015 7,287 225,443Gain included in OCI-Netchangeinfairvalue 381 25,942Balance at 30 June 2016 7,668 251,385
Sensitivity analysis
Forthefairvaluesofequitysecurities–available-for-sale,areasonablypossiblechangeof10%atthereportingdatetooneofthesignificantunobservableinputs,holdingotherinputsconstantwouldhavethefollowingeffects:
OCI,netoftaxIncrease
$’000Decrease
$’000Capitalisationrates (1,930) 1,930Forecastdividendyield 558 (558)
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88 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
21. DETAILS OF INVESTMENTS
Name of company Place of
incorporation/ principal country
Ownership interest Dividends income for the Company
2016%
2015%
2016$’000
2015$’000
(a) Listed/quoted securities FijianHoldingsUnitTrust Fiji 25.2 25.2 282 282FlourMillsofFijiLtd Fiji 4.3 4.3 16 16
298 298(b) Unlisted securitiesSubsidiarycompanies:BasicIndustriesLtd Fiji 51.1 51.1 4,599 816SouthSeaCruisesLtd Fiji 100.0 100.0 4,500 1,200-BlueLagoonCruisesHoldingsLtd Fiji 100.0 100.0 - --BlueLagoonCruisesLtd Fiji 96.1 96.0 - -FHLLogisticsLtd Fiji 100.0 100.0 - -FHLRetailingLtd Fiji 100.0 100.0 1,500 1,600-RBPatelGroupLimited Fiji 53.5 53.5 - -FHLStockbrokersLtd Fiji 100.0 100.0 - -PacificCementsLimited Fiji 50.1 50.1 1,355 293FHLFundManagementLimited Fiji 100.0 100.0 600 100FHLPropertiesLtd Fiji 100.0 100.0 500 -FHLMediaLimited Fiji 100.0 100.0 1,500 --FijiTelevisionLimited Fiji 61.6 61.6 - --LifeCinemaLimited Fiji 69.1 69.1 - -BasicIndustries(PNG)Limited PNG - 100.0 - -MerchantFinanceLtd Fiji 80.0 80.0 7,574 18,560
22,128 22,569(c) Other companiesAsianPaints(SouthPacific)Ltd Fiji 8.9 8.9 85 43GoodmanFielderInternational(Fiji)Ltd Fiji 10.0 10.0 89 176GoldenManufacturersLtd Fiji 30.0 30.0 1,350 1,493Pernix(Fiji)Limited Fiji 21.0 21.0 - -MarshLtd Fiji 25.0 25.0 600 350NewWorldLtd Fiji 15.4 15.4 230 230
2,354 2,292
24,780 25,159
22. NON-CONTROLLING INTERESTS
TheGrouphasanumberofsubsidiarieswhichitcontrolsbutwhichalsohavesignificantnon-controllinginterests.
Thetablesetoutbelowshowstheinterestthatnon-controllinginterestshaveineachsubsidiarythatismaterialtothereportingentity.
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89FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
22. NON-CONTROLLING INTERESTS - Continued
30June2016
BasicIndustriesLimited
Pacific
CementLimited
MerchantFinanceLimited
RBPatelGroup
Limited
FijiTelevisionLimited
LifeCinemaLimited
BlueLagoonCruisesLimited
Intra-group
elimina-tions$’000
Total$’000
NCI percentage 48.99% 49.83% 20.00% 46.52% 38.40% 30.87% 3.93%$’000 $’000 $’000 $’000 $’000 $’000 $’000
Non-currentassets 18,041 5,613 81,769 41,627 5,495 4,378 15,057Currentassets 18,557 15,045 79,694 19,299 17,903 1,111 102Non-currentliabilities (1,134) (26) (32,086) (9,102) (1,390) (2,029) (1,933)Currentliabilities (13,256) (5,114) (94,463) (21,776) (4,805) (2,009) (2,524)Net assets 22,208 15,518 34,914 30,048 17,203 1,451 10,702Net assets attributable to NCI 10,879 7,733 6,983 13,978 6,606 448 421 42 47,090Revenue 67,354 38,093 17,156 117,671 (11,568) (2,568) 3,508Profit/(loss) 6,607 2,150 7,536 7,351 (668) (428) 152OCI - - - - - - -Total comprehensive income 6,607 2,150 7,536 7,351 (668) (428) 152Profit/(loss)allocatedtoNCI 3,237 1,071 1,507 3,420 (257) (132) 6 - 8,852OCIallocatedtoNCI - - - - - - -Cashflowsfromoperatingactivities 15,474 6,932 10,023 6,645 2,295 9 (30)Cashflowsfrominvestmentactivities (2,708) (677) (3,644) (1,815) 7,590 (1,024) -Cashflowsfromfinanc-ingactivities(dividendstoNCI:$9.476million) (5,488) (2,885) (7,013) (4,774) (3,886) 1,269 -Net increase (decrease) in cash and cash equivalents 7,278 3,370 (634) 56 5,999 254 (30)
30June2015
BasicIndustriesLimited
Pacific
CementLimited
MerchantFinanceLimited
RBPatelGroup
Limited
FijiTelevisionLimited
LifeCinemaLimited
BlueLagoonCruisesLimited
Intra-group
elimina-tions$’000
Total$’000
NCI percentage 48.99% 49.83% 20% 46.52% 38.40% 30.87% 3.99%$’000 $’000 $’000 $’000 $’000 $’000 $’000
Non-currentassets 16,570 5,573 78,496 40,087 10,000 3,462 18,340Currentassets 18,919 18,027 53,752 15,236 26,331 217 172Non-currentliabilities (257) (47) (33,524) (10,013) (1,265) (1,996) (2,484)Currentliabilities (14,134) (7,484) (64,679) (18,414) (12,749) (1,303) (5,478)Netassets 21,098 16,069 34,045 26,896 22,317 380 10,550NetassetsattributabletoNCI 10,337 8,008 6,809 12,512 8,570 117 421 38 46,812Revenue 51,146 31,724 16,352 107,449 23,201 1,201 2,761Profit/(loss) 2,881 1,087 8,070 5,919 1,631 (621) 1,042OCI - - - - - - -Totalcomprehensiveincome 2,881 1,087 8,070 5,919 1,631 (621) 1,042Profit/(loss)allocatedtoNCI 1,411 542 1,614 2,754 626 (192) 42 - 6,797OCIallocatedtoNCI - - - - - - - - -Cashflowsfromoperatingactivities 2,450 (1,623) (2,148) 8,925 4,601 (456) (11)Cashflowsfrominvestmentactivities (3,110) 290 (338) (3,759) (4,870) (3,549) -Cashflowsfromfinanc-ingactivities(dividendstoNCI:$4.047million) (2,195) 647 (18,272) (3,212) 194 3,500 -Netincrease(decrease)incashandcashequivalents (2,855) (686) (20,758) 1,954 (75) (505) (11)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
90 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
23. INVESTMENT IN ASSOCIATES
TheGroup’sshareofprofitaftertaxinitsequityaccountedinvesteesfortheyearwas$1.485million(2015:$2.600million).TheGrouphasinterestsinthefollowingassociateswhichareconsideredindividuallyimmaterial:
MarshLimitedGoldenManufacturersLimitedPernix(Fiji)Limited
Summaryfinancialinformationforequityaccountedinvestees,notadjustedforthepercentageownershipheldbytheGroup,asatandfortheyearended30June2016:
Assets$’000
Liabilities$’000
Revenue$’000
Expenses$’000
Profit/(loss)$’000
2016 82,483 52,615 76,517 72,824 3,6932015 76,734 41,925 69,722 60,479 9,243 Reconciliationofthecarryingvalueofinvestmentinassociates:
Group
2016$’000
2015$’000
Openingbalance 19,427 14,906AcquisitionofPernix(Fiji)Limited - 3,764Equityaccountedearningsofassociates(netoftax) 1,485 2,600Dividendsfromassociates(Note21c) (1,950) (1,843)
Closingbalance 18,962 19,427
24. PAYABLES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000CurrentTradecreditors 20,277 19,080 - -Accrualsandothercreditors 15,290 14,588 626 1,455
35,567 33,668 626 1,455NoncurrentTradecreditors 649 - - -
25. EMPLOYEE ENTITLEMENTS
Group Company2016
$’0002015
$’0002016
$’0002015
$’000CurrentAnnualleave 728 1,125 159 168Bonusandgratuity 817 450 214 213
1,545 1,575 373 381Non-currentBonusandgratuity 319 23 - -Longserviceleave 178 121 - -
497 144 - -
2,042 1,719 373 381
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91FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
26. DIVIDENDS PAYABLE
Group Company2016
$’0002015
$’0002016
$’0002015
$’000
Dividends 747 1,192 - -
Thisamountrepresentsprovisionfordividendsbysubsidiarycompaniestotheirminorityshareholders.
27. BORROWINGS
Group Company2016
$’0002015
$’0002016
$’0002015
$’000CurrentBankoverdraftsSecured(Note10) 16,325 24,924 9,353 10,182TermloansSecured 12,579 34,300 2,717 21,224Fixedtermdepositsandtermborrowings(Unsecured) 93,268 61,808 7,973 16,515
122,172 121,032 20,043 47,921Non-currentTermloansSecured 57,595 48,205 27,806 13,996Fixedtermdepositsandtermborrowings(Unsecured) 32,075 36,697 11,225 4,390
89,670 84,902 39,031 18,386
TOTAL 211,842 205,934 59,074 66,307
Thebankoverdraft,standbyfacilities,andtermloansofthesubsidiarycompanieswithANZBankissecuredbyregisteredequitablemortgagesoveralltheassetsandundertakingsofthecompanies,includinguncalledandunpaidcapitaloftherespectivecompanies.
i. FijianHoldingsLimited–theloanandbankoverdraftwithANZBankaresecuredbyScripLienStampedto$59mandScripLienoversharesinBasicIndustriesLimited,sharesinMerchantFinanceLimited,sharesinSouthSeaCruisesLimited,sharesinGoldenManufacturersLimited,sharesinFHLMediaLimited,sharesinPernix(Fiji)Limited,ScripLien,givenbyFHLRetailingLimitedoversharesinRBPatelGroupLimited,ScripLien,givenbytheFHLTrusteesLimited,oversharesinPernix(Fiji)Limited,NakeddepositgivenFijianHoldingsTrustManagementLimited(100%FHLowned)over1ordinaryshareinSouthSeaCruisesLimited,andFirstRegisteredCharge(Mortgagedebenture),givenbyFHLincludingitsuncalledandunpaidcapital.(Beingafixedandfloatingchargeoverallpresentand futureassets,undertakings (includinggoodwill) andunpaidoruncalledcapitalof thatSecurityProvider).
ii. SouthSeaCruisesLimited–theloanandbankoverdraftwithANZBankaresecuredasfollows:- FirstregisteredmortgagedebenturebySouthSeaCruisesLimitedbeingafixedandfloatingchargeoverallpresentand
futureassets,undertakingsandunpaidoruncalledcapitalstampedto$22,963,000.- FirstregisteredshipsmortgageoverMVTigerIV,MVSeaspray,MVDauSaraCakau,MVYasawaFlyerII,MVCheetah,MVOcean
DreamingandMVCougarII.- AgreementtomortgageoverMVTigerIV,MVYasawaFlyerII,MVSeasprayandMVDauSaraCakau.- DeedofcovenantoverMVTigerIV,MVYasawaFlyerII,MVSeasprayandMVDauSaraCakau.- IrrevocableUndertakingoverMVYasawaFlyerII.- MasterfinanceleaseagreementbetweenAustraliaandNewZealandBankingGroupLimitedandSouthSeaCruisesLimited.- CrossguaranteebetweenSouthSeaCruisesLimited,BlueLagoonCruisesLimitedandBlueLagoonCruisesHoldingsLimited.- FirstregisteredmortgagedebenturebyBlueLagoonCruisesLimited,beingafixedandfloatingchargeoverallpresentand
futureassets,undertakingsandunpaidoruncalledcapital.- Firstregisteredlandmortgageovercertificateoftitlenumber1248,beinglandcomprisingNanuyaIsland.- FirstregisteredshipsmortgageoverFijiPrincessandMystiquePrincessbelongingtoBlueLagoonCruisesLimited.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
92 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
27. BORROWINGS - continued
iii. RBPatelGroupLimited–theloanandbankoverdraftwithANZBankaresecuredasfollows:- Firstregisteredmortgagedebenturegivenbythecompanyoverallitspresentandfutureassetsandundertakingsandits
uncalledandunpaidcapital.- Firstregisteredmortgageoverproperties(CTNo.23400)situatedatcornerofDoviRoadandRatuMaraRoad,LaucalaBeach
Estate,Nasinu,(CTNo.7082)situatedatMartintar,Nadi,(CTNo.34330)situatedatTavewaAvenue,Lautoka,(CLNo.53120)situatedatTavewaAvenue,Lautokaand(CTNo.39150)situatedatQueensRoad,Lami.
- ADeedofPariPassubetweentheANZBankingGroupLimited,WestpacBankingCorporationandthecompany,regardingsharingofsecuritiesintheratio50/50withmaximumdebtof$7millioneach.
Thebankoverdraftfacility(togetherwithletterofcreditandguaranteefacilities)fromWestpacBankingCorporationofRBPatelGroupLimitedissecuredby:- Registeredequitablemortgagedebenturegivenbythecompanyoverallitsassetsandundertakingsincludingitsuncalled
andcalledbutunpaidcapital.- ADeedof Pari PassubetweenWestpacBankingCorporation,ANZBankingGroup Limited and the company, regarding
sharingofsecuritiesintheratio50/50withmaximumdebtof$7millioneach.- Registeredfirstmortgageoverproperties(CLNo.718652)situatedatthecornerofKings&AdiDavilaRoads,Nakasi,Nausori
and(NLNo.15761)situatedatLabasa.
iv. BasicIndustriesLimited–theloanandbankoverdraftwithANZBankissecuredbyaregisteredfirstmortgagedebentureoverallassetsandundertakingsoftheholdingCompanyanditssubsidiariesincludingitsuncalledandunpaidpremiums.
v. LifeCinemaLimited–theloanandbankoverdraftwithWestpacBankingCorporation(WBC)aresecuredby:- Registeredfirstfixed&floatingchargebyLifeCinemaLimitedoverallitsassetsandundertakingsincludingitsuncalledand
calledbutunpaidcapital.- Letterofcomfortfromshareholdingcompany,FijianHoldingsLimited.- Letterofcomfortfromshareholdingcompany,RBPatelGroupLimited.- Non-disturbancedeedbetweenthecompany,PacificManagementConsultingLimited(themanager)andWBC.- Non-disturbancedeedbetweenthecompany,RBPatelGroupLimited(thelessor)andWBC
vi. FHLPropertiesLimited:$6.137million– the loanswithANZBankaresecuredbyafirst registeredmortgageoverCT19239(VanuaHouse),firstregisteredmortgagedebentureovertheassetsandundertakingsoftheCompany(thisisafixedandfloatingchargeoverallpresentandfutureassets,undertakings(includinggoodwill)andunpaid/uncalledcapitaloftheCompany),firstregisteredmortgageoverCT4098(RatuSukunaHouse),andfirstregisteredmortgageoverCT12609(RaMaramaHouse).
vii. PacificCementLtd:$2.594million–theloanwithANZBankissecuredbyafirstregisteredmortgagedebentureoverallthecompany’sassetsandundertakings,stampedat$9.1million.
viii. FijiTelevisionLimited:$0.552million-theloanswithANZBankaresecuredbyafirstregisteredmortgagedebentureoveralloftheCompany’sassetsandundertakings.
DuringthepreviousyeartheCompanydrewatermloanandafinanceleasefacilityfromANZforassetandvehiclefinancingforatermof5years.Thesefacilitiesattractavariableinterestrateof3.90%and5%perannumrespectively.
The insurancepremiumfinance facility is abasic revolving facilitywithANZ that is subject toannual reviewwitha limitof$500,000.Thepurposeoftheloanistoaccommodatepaymentofinsurancepremiums.Thefacilitycurrentlyattractsavariableinterestrateof3.90%(2015:3.90%)perannum.
Theoverdraftsbearvaryinginterestratesrangingfrom3.6%to3.90%perannum.
(b) FixedtermdepositsandshorttermborrowingsarerelatedtocustomerdepositswithMerchantFinance&InvestmentCompanyLtdandFijianHoldingsUnitTrust.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
93FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
28. SHARE CAPITAL
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Authorised20,000,000‘A’classordinarysharesof$1each 20,000 20,000 20,000 20,00020,000,000‘B’classordinarysharesof$1each 20,000 20,000 20,000 20,000
40,000 40,000 40,000 40,000Issued and fully paid10,464,650‘A’classordinarysharesof$1each 10,465 10,465 10,465 10,46520,000,000‘B’classordinarysharesof$1each 20,000 20,000 20,000 20,000
30,465 30,465 30,465 30,465Thecompany’sordinary‘A’classsharesarelistedontheRestrictedBoardoftheSouthPacificStockExchange.TheiTaukeiAffairsBoardandtheiTaukeiTrustFund(formerlyFijianTrustFund)eachhold10millionofthecompany’s“B”classordinarysharesof$1each.
Allordinarysharesrankequallywithregardtothecompany’sresidualassets.
29. RESERVES
Available for sale reserveAvailable for sale reserve consistsofunrealisedgainsor losses arising fromchanges in the fair valueof investments classifiedasavailable-for-salefinancialassets.
Credit loss reserveTheCreditLossReserverelatestoMerchantFinanceLimitedinaccordancewiththerequirementsoftheReserveBankofFiji.
Other equity reserveOtherequityreserverelatesprincipallytoacquisitionofminorityinterestshareholdingsinBlueLagoonCruisesLimitedandRBPatelGroupLimited.
Asset revaluation reserveTheassetrevaluationreserveconsistsofincrementsarisingfromtherevaluationoftheGroup’sproperty,plantandequipment.
Foreign currency translation reserveTheforeigncurrencytranslationreserverelatestoforeigncurrencytranslationasatyearendonconsolidationofsubsidiarycompaniesoperatinginforeignjurisdictionswhosefinancialstatementsandtransactionsaredenominatedinacurrencyotherthanthefunctionalandpresentationcurrencyoftheGroup.
Common control reserveTheacquisitionofFHLMediain2013hasbeenaccountedforasacommoncontroltransactionasatthetimeofthistransactionbothFHLMediaandtheCompanywerecontrolledbythesameshareholdergroup.Asacommoncontroltransaction,theacquisitiondoesnotreflectthefairvalueofassetsandliabilitiesacquiredoranyrecordingofadditionalgoodwillatthetimeoftheacquisitionofFHLMedia.TheacquisitionbalancesheetofFHLMediareflectsthevaluesforassetsandliabilitiesacquiredfromFHLMedia’sconsolidatedaccountingrecords.Thedifferencebetweenthefairvalueoftheconsiderationgivenandthecarryingvalueoftheassetsandliabilitiesacquiredisrecognisedasacommoncontrolreserveintheconsolidatedfinancialstatements.Upondisposalofall interestsinFHLMediaLimitedbytheGroup,thisreservewillbetransferredtoretainedearnings.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
94 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
29. RESERVES - continued
Asset Revaluation
Reserve$’000
Credit Loss
Reserves$’000
Common
Control Reserve
$’000
Available for Sale Reserve
$’000
Foreign Currency
Translation Reserve
$’000
Other Equity
Reserve$’000
Total$’000
(a) GroupBalance at 30 June 2014 5,892 1,805 9,926 2,675 (4,374) (1,219) 14,705Foreigncurrencymovement - - - - (1,334) - (1,334)Decreaseinnon-controllinginterests 196 - - - - 309 505Reclassificationfromretainedearnings - 621 - - - - 621Fairvaluemovements - - - (545) - - (545)Balance at 30 June 2015 6,088 2,426 9,926 2,130 (5,708) (910) 13,952Foreigncurrencymovement - - - - (47) - (47)Decreaseinnon-controllinginterests - - - - - (121) (121)Reclassificationtoretainedearnings - - - - 5,717 - 5,717Fairvaluemovements - - - 1,323 - - 1,323Balance at 30 June 2016 6,088 2,426 9,926 3,453 (38) (1,031) 20,824
(b) CompanyBalance at 30 June 2014 - - - 54,072 - - 54,072Reclassificationofamountstoprofitorloss - - - (9,452) - - (9,452)Fairvaluemovements - - - 23,351 - - 23,351Balance at 30 June 2015 - - - 67,971 - - 67,971Reclassificationofamountstoprofitorloss - - - - - - -Fairvaluemovements - - - 20,499 - - 20,499Balance at 30 June 2016 - - - 88,470 - - 88,470
30. OPERATING LEASES
OperatingleasecommitmentsThegrouphasanumberofleaseagreementswithvaryingtermsandconditions.Thefutureaggregatedminimumleasepaymentsundertheseleasesareasfollows:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Notlaterthan1year 7,428 11,786 - -Laterthan1yearbutnotlaterthan5years 13,460 17,222 - -Laterthan5years 22,537 27,881 - -
43,425 56,889 - - FijiTelevisionLimited,asubsidiarycompany,enteredintoanewsatelliteservicesagreementin2014.Atinceptionofthearrangement,thiswasdeterminednottocontainaleaseasthefulfilmentofthearrangementisnotdependentontheuseofaspecifiedassetorassets.Nonetheless,thecommitmentsunderthisarrangementhavebeenincludedintheaboveleasecommitmentdisclosure.
Otherleasearrangementsincludeoperatingleaserentalswithpartiesexternaltothegroupforrentalofofficespaceandretailoutlets.
Operatingleasecommitments–whereagroupcompanyisthelessorThegroup leasescertainpropertiesatvaryingtermsandconditions.Thefutureminimumleasepaymentsreceivableundertheseleasesareasfollows:
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
95FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
30. OPERATING LEASES - continued
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Notlaterthan1year 4,634 4,661 - -Laterthan1yearbutnotlaterthan5years 6,309 6,041 - -Laterthan5years 3,686 3,051 - -
14,629 13,753 - -AmountsrecognisedinprofitorlossDuring2016,investmentpropertyrentalsof$4.878million(2015:$4.455million)wereincludedin‘Operatingrevenue’.Directoperatingexpenses(includingrepairsandmaintenance),wereasfollows:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000
Income-generatingproperty 966 948 - -
Vacantproperty - - - -
966 948 - -
31. EARNINGS PER SHARE
Thecalculationofearningspershareat30June2016wasbasedontheprofitattributabletoordinaryshareholdersof$13,656,000(2015:$10,652,000)andaweightedaveragenumberofordinarysharesoutstandingof30,465,000(2015:30,465,000),calculatedasfollows:
Group2016
$’0002015
$’000Profitafterincometaxattributabletomembersoftheholdingcompany 13,656 10,652Lossfromdiscontinuedoperations 3,372 1,036Profitaftertaxfromcontinuingoperations 17,028 11,688Weightedaveragenumberofsharesoutstanding 30,465 30,465
Basicanddilutedearningspershare–continuingoperations $0.56 $0.38Basicanddilutedearningspershare $0.45 $0.35
32. CONTINGENT LIABILITIES
Group Company2016
$’0002015
$’0002016
$’0002015
$’000Nonperformanceguaranteesgivenbythebankonbehalfofsubsidiarycompanies 4,110 3,130 - -Nonperformanceguaranteesgivenbythebankonbehalfoftheholdingcompany 270 483 270 483
Intheopinionofthedirectors,nolossisanticipatedinrespectoftheabovecontingentliabilities.
Thecompanyhasprovidedlettersofsupporttoitssubsidiaries,SouthSeaCruisesLimitedandMerchantFinanceLimited,undertakingthatinthenext12monthsitwillprovidesufficientfinancialassistanceasandwhenitisneededtoenablethesubsidiariestocontinueoperationsandmeettheirfinancialobligations.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
96 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
33. CAPITAL COMMITMENTS
Commitmentsforcapitalexpenditurenotprovidedforinthefinancialstatementsareasfollows:Group Company
2016$’000
2015$’000
2016$’000
2015$’000
Approvedbutnotcontracted 9,468 651 - -Approvedandcontracted 26,358 327 - -Commitmentsinrespectofloansandapprovedcreditcommitmentsofferedbutnotyetadvancedasatbalancedateamountedtoapproximately$1,868,000(2015:$5,140,000).
34. RELATED PARTY INFORMATION
Directors
ThefollowingweredirectorsoftheCompanyatanytimeduringthefinancialyear:
IowaneNaiveli -Chairman UlaiTaoi
SakiusaRaivoce IsikeliTuitukuViliameCegumalua ViliameNaupoto -appointedon11August2015AiseaWakaVosailagi -appointedon11August2015 JohnO’Connor -appointedon11August2015
AmountspaidtothedirectorsduringtheyeararedisclosedinNote5(b).
Identity of related parties
AllmaterialownershipinterestsinrelatedpartiesaredisclosedinNote21.TheGroupalsohasrelatedpartytransactionswithintheGroupwhichareeliminateduponconsolidation.
Keymanagementpersonnel
Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheentity,directlyorindirectly,includinganydirector(whetherexecutiveorotherwise)ofthatentity.
Duringtheyearthefollowingpersonsweretheexecutivesidentifiedaskeymanagementpersonnel,withthegreatestauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroup:
Name TitleFijian Holdings LimitedNouzabFareed ChiefExecutiveOfficerSaleshDayal GeneralManagerFinance(resignedon18March2016)AbilashRam GeneralManagerFinance(appointedon18March2016)CatherineGrey ManagerHumanResourcesMereoniMatavou ManagerLegal/CompanySecretary(appointed30June2016)Fiji Television LimitedGeoffreySmith ChiefExecutiveOfficerSouth Sea Cruises LimitedPeterDuncan ChiefExecutiveOfficerBasic Industries LimitedMoseseVolavola ChiefExecutiveOfficerPacific Cement LimitedSowaniTuidrola ChiefExecutiveOfficer(appointedon1July2015)Merchant Finance LimitedNapolioniBatimala ChiefExecutiveOfficerRB Patel Group LimitedDeepakRathod ChiefOperatingOfficer
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
97FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
34. RELATED PARTY INFORMATION - continued
Theaggregatecompensationof thekeymanagementpersonnelof theGroupcomprisingonly short-termbenefitsamounted to$2.089million(2015:$2.030million).
Transactions with related partiesDuringtheyear,theGroupenteredintovarioustransactionswithrelatedpartieswhichwereatnormalcommercialtradingtermsandconditions.Theaggregatevalueofmajortransactionswithrelatedpartiesduringtheyearisasfollows:
ManagementfeesTheCompanyhasmanagementagreementsinplacewithitssubsidiarycompaniesfortheprovisionofmanagementservicesduringtheyear.Managementfeesreceivedduringtheyearareasfollows:
Group Company2016
$’0002015
$’0002016
$’0002015
$’000MerchantFinanceLtd - - 108 108FHLRetailingLtd - - 720 720FHLFundManagementLimited - - 96 96FijianPropertiesLimited - - 240 240FHLSecuritiesLtd - - - 7PacificCementLimited - - 90 90FHLMediaLimited - - 48 48
Dividend incomeThedividendsreceivedduringtheyearhavebeendisclosedinNote21.
Interest incomeTheCompanyhasalsoprovidedloansandadvancestoitssubsidiaryandrelatedcompaniesduringtheyear.InterestincomereceivedbytheCompanyduringtheyearisasfollows:
BlueLagoonCruisesLtd - - 395 449FHLRetailingLtd - - 416 392FHLPropertiesLimited - - 276 290
AmountsreceivablefromrelatedpartiesDuringtheyear,theCompanyalsoadvancedloanstoitssubsidiarycompanies.Theloansareunsecured.Amountsreceivablefromrelatedpartiesasatreportingdateisasfollows:
Loans receivableFHLPropertiesLimited - - 66 4,021BlueLagoonCruisesLtd - - - 5,144FHLRetailingLtd - - 6,030 6,030SouthSeaCruisesLimited - - 5,457 -Other receivablesBasicIndustriesLtd - - 639 777FHLLogisticsLtd - - - 800FHLRetailingLtd - - - 102PacificCementLimited - - - 6FijianHoldingsFundManagementLtd - - - 12FijianPropertiesLtd - - 947 482GoldenManufacturersLimited - - 750 600SouthSeaCruisesLimited - - 2,453 4,724MerchantFinanceLtd - - 4,054 4,498BasicIndustries(PNG)Limited - - - 2,214FHLStockbrokersLtd - - - 2Provisionfordoubtfuldebts–FHLLogisticsLimited - - - (800)Provisionfordoubtfuldebts–BasicIndustries(PNG)Limited - - - (2,214)
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
98 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
35. SEGMENT INFORMATION
Abusinesssegmentisagroupofassetsandoperationsengagedinprovidingproductsorservicesthataresubjecttorisksandreturnsthataredifferentfromthoseofotherbusinesssegments.Ageographicalsegmentisengagedinprovidingproductsorserviceswithinaparticulareconomicenvironmentthataresubjecttorisksandreturnsthataredifferentfromthoseofsegmentsoperatinginothereconomicenvironments.
Thefollowingsummarydescribestheoperationsofeachreportablesegment.
Reportable segments Operations
Construction Salesofcement,concreteandconcreteproducts
Property Ownersandadministratorsofproperties,andrentalofproperty
Finance Asset,tradeandloanfinancing,andacceptanceoftermdeposits
Tourism Provisionofseatransportationservicesandboatcharters
Media Televisionandcommunications
Retail Retailingandwholesalingofgeneralmerchandise
Investment EquityinvestmentsPrimaryReporting-BusinessSegments
2016 Constru-ction$000
Property$000
Finance$000
Tourism$000
Media$000
Retail$000
Invest-ment$000
OtherInvest-ments$000
InterSegment
$000
TOTALGROUP
$000
External Operating Revenue
Saleofgoods 104,948 - - - - 114,816 - - (11,811) 207,953
Rentalandpropertymanagement - 3,660 - - - - - - - 3,660
Renderingofservices - - - 47,348 13,784 - - - (3,294) 57,838
Interestrevenue - - 20,208 - - - - - - 20,208
Interestexpense - - (4,273) - - - - - - (4,273)
Other - - - - - - 26,078 8,289 (26,201) 8,166
Total operating revenue/ net interest income - - - - - - - - - 293,552
Result
Profitbeforeincometax–continuingoperations 11,356 3,928 9,400 5,670 2,576 8,210 20,442 3,461 (32,190) 32,853
Incometaxexpense (2,600) (653) (1,864) (1,126) (435) (858) 409 (417) 571 (6,973)
Othermaterialnon-cashitems:
–Impairmentlossesonnonfinancialassets - - - (2,158) - - - - - (2,158)
Depreciation and amortisation expense (3,533) (94) (581) (2,229) (1,134) (1,150) (126) (1,040) (1,007) (10,894)
Acquisition of property, plant and equipment 5,462 195 2,093 2,394 2,040 453 58 37 - 12,732
Total assets 57,256 38,160 161,462 52,321 46,868 60,926 284,169 72,185 (298,301) 475,046
Total liabilities 19,529 11,671 126,549 34,868 8,172 30,878 60,073 8,092 (42,719) 257,113
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
99FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
35. SEGMENT INFORMATION - Continued
PrimaryReporting-BusinessSegments-continued
2015 Constru-ction$000
Property$000
Finance$000
Tourism$000
Media$000
Retail$000
Invest-ment$000
OtherInvest-ments$000
InterSegment
$000
TOTALGROUP
$000
External Operating Revenue
Saleofgoods 82,962 - - - - 104,945 - - (9,783) 178,124
Rentalandpropertymanagement -
3,521 - - - - - - -
3,521
Renderingofservices - - - 45,163 24,625 - - - (2,738) 67,050
Interestrevenue - - 18,903 - - - - - - 18,903
Interestexpense - - (3,401) - - - - - - (3,401)
Other - - - - - - 26,465 7,514 (26,542) 7,437
Totaloperatingrevenue/netinterestincome 271,634
Discontinuedoperations (1,009) - - - (14,526) - - - - (15,535)
Restatedtotaloperatingrevenue/netinterestincome 256,099
Result
Profit/(loss)beforeincometax–continuingoperations 5,365 808
10,024
6,669 806
6,582 12,328
3,248 (21,926) 23,904
Incometaxexpense (1,399) (168) (1,953) (1,398) (117) (663) 593 (313) (1) (5,419)
Othermaterialnon-cashitems:
–Impairmentlossesonnonfinancialassets - - - - 271 - - - - 271
Depreciation and amortisation expense
(3,125)
(341)
(564)
(2,114)
(1,975)
(1,080)
(184)
(546)
(749)
(10,678)
Acquisition of property, plant and equipment
5,587 17
373
3,930
4,482
926
19
5 -
15,339
Total assets 62,308 20,150 132,249 55,182 59,931 55,324 257,896 68,874 (252,625) 459,289
Total liabilities 28,439 12,531 98,202 37,770 17,094 28,427 68,143 7,555 (43,006) 255,155
TheGroupoperatesinFijiandinPNGwiththePNGoperationsnotbeingmaterialandthereforedonotrequireseparatesegmentdisclosures.
36. EVENTS SUBSEqUENT TO BALANCE DATE
Therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsoftheGroup,toaffectsignificantlytheoperationsoftheCompanyandtheGroup,theresultsofthoseoperations,orthestateofaffairsoftheCompanyandtheGroup,insubsequentfinancialyears.
notes to and ForMIng part oF tHe FInanCIal stateMentsVaKaMaCala Ka leWe talega nI tUKUtUKU VaKaIlaVoYearEnded30June2016
100 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
ListingrequirementsoftheSouthPacificStockExchange(notincludedelsewhereinthisfinancialstatements)
a) i Statement of interest of each Director in the share capital of the Company or in a related Corporation as at 30 June 2016 included
Beneficially Non-beneficiallyAdditions Holding Additions Holding
SakiusaRaivoce - 100,000 - -UlaiasiTaoi - 2,311 - -IsikeliTuituku - - - 20,767,688ViliameCegumalua - - - 21,160,977ViliameNaupoto - - - 20,760,977RatuAiseaWakaVosailagi - - - 20,760,977JohnO’Connor - - - 20,760,977
a)ii StatementofinterestofeachSeniorManagementinthesharecapitaloftheCompanyorinarelatedCorporationasat30June2016 included
Beneficially Non-beneficially
Additions Holdings Additions Holdings
MakeretaBulilakeba&SowaniTuidrola - 8,501 - -
NapolioniNaqiaKaeBatimala - 35,268 - -
b) DistributionofShareholding
Holding No.ofHolders %Holding
Lessthan500shares 283 0.96%
501to5,000shares 687 10.07%
5,001to10,000shares 56 3.62%
10,001to20,000shares 58 7.98%
20,001to30,000shares 18 4.13%
30,001to40,000shares 16 4.97%
40,001to50,000shares 12 5.23%
50,001to100,000shares 29 21.38%
100,001to1,000,000shares 14 41.66%
Total 1,173 100.00%
c) Top 20 shareholders in “A” class shares
Name No.ofshares
1 ItaukeiLandTrustBoard 859,666
2 ItaukeiAffairsBoard 760,977
3 CakaudroveProvincialHoldingsCompanyLimited 400,000
CiciaPlantationCo-opSocLtd 400,000
4 RatuSirKMaraEducationTrustFund 300,000
5 TailevuDairyFarmersCo-op 251,859
6 MacuataProvincialCouncil 203,614
7 MavanaInvestmentLtd 200,000
MualevuTikinaHoldingsLtd 200,000
8 VanuaKoLovoniInvestmentLtd 179,805
9 DuavataHoldingsLimited 141,000
soUtH paCIFIC stoCK eXCHange lIstIng reQUIreMentstUKUtUKU e VInaKatI MaI na soUtH paCIFIC stoCK eXCHangesoUtH paCIFIC stoCK eXCHange lIstIng reQUIreMentstUKUtUKU e VInaKatI MaI na soUtH paCIFIC stoCK eXCHangeYearEnded30June2016
101FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
soUtH paCIFIC stoCK eXCHange lIstIng reQUIreMentstUKUtUKU e VInaKatI MaI na soUtH paCIFIC stoCK eXCHangeYearEnded30June2016
10 BuaProvincialCouncil 137,102
11 MualevuKoroInvestCoLtd 108,754
12 MoalaTikinaCouncil 101,005
13 NabukebukeHoldingsLtd 100,000
LomatiVillageInvestmentLtd 100,000
NaqaraniHoldingsLtd 100,000
MuniaHoldingsLtd 100,000
NasoqoFarmingEnterprisesLtd 100,000
DogotukiTikinaCouncil 100,000
SakiusaandAnaseiniRaivoce 100,000
KiriVerewaleRichmond 100,000
14 VatuleleIslandHoldings 97,990
15 SeruaProvincialCouncil 97,102
16 RewaProvincialCouncil 93,601
17 VukiceaInvestmentLimited 90,000
18 KadavuProvincialCouncil 89,791
19 MataqaliNatabutale 84,743
20 TukulaHoldingsLtd 80,000
d) Share price details:
Highestsharepriceduringtheyearwas$4.30.Lowestsharepriceduringtheyearwas$3.90Sharepriceatyearendwas$4.08
e) AttendanceatBoardMeetings:
Name Noofmeeting Noattended
IowaneNaiveli 8 8
UlaiasiTaoi 8 8
SakiusaRaivoce 8 8
IsikeliTuituku 8 7
ViliameCegumalua 8 7
ViliameNaupoto(appointedon11August2015) 8 5
RatuAiseaWakaVosailagi(appointedon11August2015) 8 6
JohnO’Connor(appointedon11August2015) 8 6
f) Shareregister
CentralShareRegistrySouthPacificStockExchangeLevel2Plaza1FNPFBuilding33ElleryStreetSuvaFiji
CompanySecretary–KelepiRakabikabi(resigned30June2016)–MereoniRMatavou(appointed1July2016)
c) Top 20 shareholders in “A” class shares - continued
102 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
g) DisclosureunderSection6.31viii
FHLFund
Manage-mentLtd
$’000
SouthSea
CruisesLtd
$’000
FHLProperties
Ltd$’000
FHLStock-
brokersLtd
$’000
FHLRetailing
Ltd$’000
BasicIndustries
Ltd$’000
PacificCement
Ltd$’000
FHLLogistics
Ltd$’000
MerchantFinance
Ltd$’000
FHLMedia
Ltd$’000
Turnover 2,030 47,348 3,660 68 121,004 66,860 38,087 - 15,936 13,784Otherincome 16 214 3,102 16 2,855 494 6 - 1,220 406 2,046 47,562 6,762 84 123,859 67,354 38,093 - 17,156 14,190Depreciation (38) (2,229) (94) (1) (1,651) (2,331) (681) - (581) (1,134)Interestincome/(expense)
40 (1,180) (477) 24 (993) 213 21 - - (416)
Otherexpenses (961) (38,483) (2,263) (65) (110,676) (56,508) (34,804) - (7,175) (10,064)Incometaxexpense (240) (1,126) (653) (9) (1,028) (2,122) (479) - (1,864) (435)Profitaftertax 847 4,544 3,275 33 9,511 6,606 2,150 - 7,536 2,141Assets 1,813 65,146 38,160 671 117,801 36,597 20,658 1 161,462 46,868Liabilities 158 34,868 11,671 56 37,838 14,390 5,139 918 126,549 8,172Shareholder’sFunds 1,655 30,278 26,489 615 79,963 22,207 15,519 (917) 34,913 38,696
h) 5 Year Comparative
Year 2011 2012 2013 2014 2015 2016
DividendPayment($m) 5.10 5.60 6.00 6.40 6.70 7.01
ReturnonInvestment(%) 9% 9% 6% 6% 7% 11%
EarningsperShare(¢) 25 28 31 32 35 45
GroupTotalAssets($m) 347.00 361.00 476.00 458.86 459.29 475.05
GroupShareholdersFund($m) 167.00 176.00 202.00 200.13 204.13 217.93
GroupOperatingRevenue($m) 176.90 177.10 217.17 245.74 271.63 293.55
CompanyOperatingRevenue($m) 11.70 17.00 17.90 17.65 26.47 26.08
GroupProfitBeforeTax($m) 12.60 16.60 18.17 18.30 23.90 32.85
CompanyProfitBeforeTax($m) 7.70 9.40 9.89 10.90 12.33 20.44
soUtH paCIFIC stoCK eXCHange lIstIng reQUIreMentstUKUtUKU e VInaKatI MaI na soUtH paCIFIC stoCK eXCHangesoUtH paCIFIC stoCK eXCHange lIstIng reQUIreMentstUKUtUKU e VInaKatI MaI na soUtH paCIFIC stoCK eXCHangeYearEnded30June2016
103FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
I/We
beingamemberofFijianHoldingsLimited,herebyappoint:
asourproxy,tovoteforusonourbehalfattheThirtyFirstAnnualGeneralMeetingofFijianHoldingsLimitedtobeheldon20thOctober2016
(please select appropriate section)
A.ShareholderSignature WitnessName&Signature
Signedthisdayof2016
B. Incaseofabodycorporate,thisformshouldbeunderitsSealorbesignedbyanofficeroranattorney dulyauthorisedbyit.
TheCommonSealof
WashereuntoaffixedinthePresenceoftheUndersignedwhocertifythat
theyareProperofficersauthorisedtoattesttheAffixing oftheSealofthesaidCompany:
Director Director/Secretary
Signedthisdayof2016
Appointment of proxy
104 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
SendProxyFormto:
Fax:3305020
Mail:P.O.Box2110
GovernmentBuildingsSuvaFiji
orhand-deliverto:
FijianHoldingsLtdLevel7
RaMarama91GordonSt
SuvaFiji
105FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016
106 FIJIAN HOLDINGS LIMITED ANNUAL REPORT 2016