Ghana Cocoa Board

Transcription

Ghana Cocoa Board

Ghana Cocoa Board
43nd Annual Report & Financial Statements
for the Year Ended September 2012
Ghana Cocoa Board 43nd Annual Report & Financial
Statements for the Year Ended September 2012
Table of Contents
Auditors
Registered Office
Highlights
Board of Directors 2011/12
Heads of Subsidiaries and Divisions 2011/12
Chairman’s Statement
iii
iii
iv
v
v
1
REVIEW OF BUSINESS
1. Producer Price
2. Cocoa Purchases Performance and Licensed Buying Companies
3. Coffee and Sheanut Purchases/Exports
4. Performance of Divisions and Subsidiaries
A
Q.C.C.
a. Selective Grading of cocoa
b. Grading and Sealing
i.
Cocoa
ii.
Other Produce
c.
Check Sampling
d.
Disinfestation Activities
i.
Insect Control Operations
ii.
Shipment Inspection and Treatment
3
3
3
4
5
5
5
5
5
5
6
6
6
B. C.M.C. (Gh.) Ltd.
a.
Shipments and Deliveries
i.
Cocoa Beans
ii.
Cocoa Products
C S.P.U.
a.
Hybrid Seed Pods
b.
Cocoa Seedlings
6
6
6
8
8
8
9
D. CSSVD Control Unit
a.
Field Operations
9
9
E. CRIG
a.
9
9
Cocoa Agronomy, Development/ Improvement, Capsid, Black Pod and
CSSVD Control
iiii
Table of Contents
b.
c.
d.
e.
Coffee Agronomy, Development/ Improvement Coffee Pests and Disease
Control
10
Kola Agronomy, Development / Improvement, Kola Pests and Disease
Control
11
Sheanut Agronomy Development / Improvement, Sheanut Pests &
Disease Control
11
New Products Development
11
5. Financial Results
i.
Profit
ii.
Export Duty
11
11
12
6. Community Improvement Projects
12
7.
13
Major Visitors to COCOBOD
8. Financial Statements for the Year Ended 30th September, 2012
ii
14
AUDITORS
(1)
Pannel Kerr Foster,
Chartered Accountants
Farrar Avenue
Post Office Box GP 1219
Accra.
(2)
James Quagraine & Co.,
Chartered Accountants
Accra.
REGISTERED OFFICE
Cocoa House
41 Kwame Nkrumah Avenue
Accra
Tel. 233 -302 – 661752/678972/661782/683300
Fax: 233 -302- 667104/665076
E-mail: [email protected]
Website: www.cocobod.gh
iii
Highlights
2010/11
1. Turnover (Gross) (GH¢)
2011/12
% CHANGE
4,754,198,210
4,619,210,810
(2.84)
2. Total Assets
(GH¢)
203,118,905
176,086,024
(13.31)
3. Equity Capital
(GH¢)
393,290
393,290
-
4. Current Assets
(GH¢)
1,745,071,448
2,559,820,351
46.69
1,892,428,013
2,453,497,867
29.65
- Main Crop (Cocoa) (GH¢) - (per tonne)
3,200
3,280
2.50
- Mid Crop (Cocoa) (GH¢) - (per tonne)
3,200
3,280
2.50
- (per tonne
1,000-1,020
1,000-1,020
-
7. Number of Subsidiaries and Divisions
5
5
-
7,060
7,368
4.36
1,024,553
879,348
(14.17)
1,419
3,254
129.32
389,403
111,194
(71.45)
3,294.00
2,918.00
(11.41)
5. Current Liabilities (GH¢)
6. Producer Prices:
- Coffee (Hulled)
(GH¢)
8. Total Employees
9. Quantity Purchased/Exported (Tonnes):
Cocoa
Coffee (purchases)
Sheanut (exports)
10. Achieved F.O.B. (US$) - per tonne of
Cocoa
* Adverse changes in brackets.
iv
Board of Directors and COCOBOD Management
BOARD OF DIRECTORS
2011/12
Dr Percival Yaw Kuranchie
Mr. Anthony Fofie
Professor Kofi Nketsia Afful
Dr. Agyemang-Atuahene Kontor
Dr (Mrs.) Bernice Adiku-Heloo
Mr. Paul Asimenu
Mr. K. B. Amissah-Arthur
Mrs. Afriyie Haffar
Nana Adjei Damoah
Mr. Charles Tetteh Kwao Dodoo
-
Chairman
Chief Executive
Member
Member
Member
Member
Member
Member
Member
Member
-
Chief Executive
Deputy Chief Executive (F&A)
Deputy Chief Executive (A&QC)
Deputy Chief Executive (OPS)
Director, Health
Director, Finance
Director, General Services
Director, Audit
Director, Human Resource
Director (RM&E)
Director, Scholarship Unit
Dep. Director, CODAPEC
Director, Legal Services
Dep, Director, Special Services
Dep. Director- Health
Dep. Director, (M&E)
Dep. Director, (R&D)
Dep. Director, Audit
Dep. Director, Human Resource
Dep. Director, Finance
-
Managing Director, CMC (Gh). Ltd
Executive Director, CSSVDCU
Managing Director, QCC
Executive Director, SPU
Executive Director, CRIG
COCOBOD MANAGEMENT
2011/12
Mr. Anthony Fofie
Mr. William Mensah
Dr. Yaw Adu-Ampomah
Mr. Kwabena Asante-Poku
Dr. Victor K. Osei
Mrs Miriam Okwabi
Mr. Alexander M. Asiedu
Mr. Kosi Gone Traugott
Mr. A.A Appleton
Mr. Ebenezer Tei Quartey
Mr. G. Anto-Boateng
Mr. Kwame O. Adjinah
Mr. John Clottey-Sefa
Mr. Thomas E.K. Dandzo
Dr. Godwin A. Lartey
Mr. Charles K. Kukah
Mr. Emmanuel E. Opoku
Mrs. Elizabeth M.A Abodurin
Mr. F.A Temeng
Mr. LCT Zaukuu
HEADS OF DIVISIONS/SUBSIDIARIES
2011/12
Nana-Oduro Owusu
Rev. K. Abaka-Ewusi
Mr. K Gorkeh-Sekyim
Mr. K.B Prempeh
Dr. F.M Amoah
v
Board of Directors
Mr. Anthony Fofie
Chief Executive
Dr. Percival Yaw Kuranchie
Chairman
Dr. (Mrs.) Bernice Adiku-Heloo
Member
Mr. Charles Tetteh
Kwao Dodoo
Member
Mr. Paul Asimenu
Member
Mrs. Afriyie Haffar
Member
Prof. Kofi Nketsia Afful
Member
Dr. AgyemangAtuahene Kontor
Member
vi
Mr. Kwesi Bekoe
Amissah - Arthur
Member
Nana Adjei Damoah
Member
Chairman’s Statement
ECONOMIC BACKGROUND
World Cocoa Environment 2011/12 Season
World cocoa production as reported by the International Cocoa Organisation (ICCO) was estimated to
have decreased by 7.91% from the 4.30 million tonnes in 2010/11 to 3.96 million tonnes in 2011/12. The
decline in global production could be attributed to the erratic rainfall and severe harmarttan related
weather conditions which prevailed mostly during the period. Similar weather conditions prevailed
across the West Africa sub-region which affected output expectations from the sub-region. Cote d’Ivoire
and Ghana, however, maintained their traditional positions as the two leading producers in the world by
contributing about 60% of the global production.
Global consumption of cocoa beans, as measured by grindings, increased by 2.05% from 3.91 million
tonnes in 2010/11 to 3.99 million tonnes in 2011/12. This was as a result of a shift in global consumption
pattern in emerging countries particularly Asia.
Prices of cocoa on the world market experienced a downward trend during the 2011/12 cocoa season. The
average international cocoa prices as measured by the ICCO daily price for the 2011/12 season settled at
US$2,396, a decrease of 22.81% over the 2010/11 price of US$3,104. Price movements were asymmetrical
during the 2011/12 season as a result of the unresolved European debt crisis and its rippling effect on
cocoa consumption as well as the bearish news of falling demand in European markets. Concerns over
dry weather conditions in West Africa were also fundamental in price volatility.
The Local Scene
Sourcing of off-shore receivables-backed trade finance facility to support cocoa purchases continued
during the year under review. Under this arrangement, COCOBOD secured a syndicated loan of US$2
billion from a consortium of banks, including Standard Chartered Bank - London, Societe Generale, Bank
of Tokyo-Mitsubishi UFJ Limited, Sumitomo Mitsui Banking Corporation and Ghana International Bank
plc during the year. COCOBOD successfully repaid the loan with interest within the agreed period.
Operating Results
COCOBOD pursued strategies to surmount challenges associated with the production and marketing of
cocoa. The Board, however, made a loss of GH¢14,935,967 in 2011/12 compared to GH¢9,826,237 profit
recorded in 2010/11.
COCOBOD paid GH¢76,000,000 as export duty during 2011/12 season as against GH¢148,679,011 paid in
the 2010/11 financial year.
Future Outlook
In spite of a decline in production in the 2011/12 season, compared to the unprecedented production
of 1.02 million tonnes during the previous year, the future of the cocoa industry in Ghana continues
to be positive. The collective efforts by government, farmers, COCOBOD, Licensed Buying Companies
(LBC’s) and other stakeholders in the industry through adherence to good agronomic practices, payment
of remunerative producer price, application of fertilizers, disease and pest control, use of hybrid cocoa
1
Chairman’s Statement, continued
seedlings and scientific research will ensure the cocoa industry sustains the production levels. COCOBOD
will continue to focus on deriving the maximum benefits from the positive growth of the global cocoa
economy and pursue appropriate strategies to overcome emerging challenges.
It is our desire to continue with the public-private partnership extension module introduced two years
ago. This extension model, which was designed to build capacity of farmers to take cocoa farming as
a business enterprise, involves the formation of Farmer Based Organizations (FBO) and the training of
Local Community Facilitators (LCF) to facilitate extension service delivery.
The Government through COCOBOD made available twenty (20) million hybrid cocoa seedlings to be
distributed to farmers free of charge. This was to augment farmers’ role in the implementation of the
National Cocoa Rehabilitation Programme.
As part of its effort to revamp the sheanut industry, the Government of Ghana commissioned a sheanut
processing factory at Buipe in the Northern Region.
COCOBOD has developed rules and regulations as well as sanctions to guide the operations of processing
companies in Ghana. The document is to ensure that, local processors and their collaborators who
indulge in malpractices detrimental to the industry are sanctioned. We will also ensure that appropriate
sanctions are imposed on LBCs that contravene the rules and regulations guiding the internal marketing
of cocoa in order to maintain discipline in the cocoa industry.
Government, through COCOBOD Management, will create a favourable working environment to promote
industrial harmony, including holding regular platform meetings with stakeholders in the cocoa industry
in order to maintain good working relationship.
To conclude, I wish to indicate that the Board of Directors will continue to maintain good relations with
COCOBOD Management, support the implementation of sound operational policies to maintain Ghana’s
commitment to the International Cocoa Agreement to achieve sustainable cocoa production.
DR. PERCIVAL YAW KURANCHIE
CHAIRMAN
2
Chief Executive’s Report for the Year Ended 30th September, 2012
REVIEW OF BUSINESS OPERATIONS
1.
PRODUCER PRICE
The 2011/12 crop year opened on 14th October 2011 with an upward revision of the producer price of
cocoa from GH¢3,200 per tonne to GH¢3,280 per tonne representing a 2.5% increase from the previous
year’s price.
Privatization of the Coffee and Sheanut sectors resulted in the producer prices of these produce being
determined through negotiations between farmers and Licensed Buying Companies (LBCs). During the
period under review, the average farm gate price paid per tonne of coffee ranged between GH¢1,000.00
- GH¢1,020.00 while sheanut farmers received GH¢400.00 per tonne for their produce.
2.
COCOA PURCHASES PERFORMANCE AND LICENSED BUYING COMPANIES (LBCs) The 2011/12 cocoa season marked nineteen (19) years of participation by private companies (LBCs) in
the internal marketing of cocoa. Thirty-two (32) out of thirty-five (35) registered LBCs purchased cocoa
during the year under review.
Declared cumulative cocoa purchases for the 2011/12 crop year was 879,348 tonnes, as compared to
1,024,553 tonnes recorded in 2010/11. This tonnage represented 14.17% decrease in production over the
2010/11 crop year purchases.
The list of LBCs in good standing during the 2011/12 crop year were as follows:
1. Produce Buying Company (PBC)
19. Farmers Star Limited (FSL)
2. Federated Commodities Limited (FCL)
20. Fredako Cocoa Co. Ltd. (FCCL)
3. Kuapa Kokoo Limited (KKL)
21. Splendid Business Services (SBS)
4. Adwumapa Buyers Limited (ABL)
22. Abafuaba Limited (ABFL)
5. Transroyal (Gh) Limited (TGL)
23. Ghana Co-op Mktg. Assoc. (GCMA)
6. Cocoa Merchants (Gh) Ltd. (CMGL)
24. Chartwell Ventures Ltd. (CVL)
7. Olam (Gh) Limited (OLAM)
25. Royal Commodities Limited (RCL)
8. Diaby Company Ltd. (DCL)
26. Allied Commodities Ltd. (ACL)
9. Akuafo Adamfo Mkting Ltd.(AAMC)
27. Farmers Alliance Limited (FAL)
10. Armajaro (Gh) Limited (AGL)
28. Evadox Company Ltd. (EVL)
11. Alhaji Sulemana Ind. Ltd.(ASIL)
29. Aboafo Buyers Limited (ABCL)
12. Duapa Buyers Company Limited (DBCL)
30. CDH Commodities Ltd. (CDH)
13. Yayra Glover Limited (YGL)
31. Marpie Enterprise Limited (MEL)
14. Abapa Golden Limited (ABGL)
32. Universal Co-operative Limited (UCCL)
15. Blossom Exports Limited (BEL)
33. Akuotec Company Limited (AKL)
16. Sika Aba Buyers (SABL)
34. Fortune Tree Company Ltd. (FTCL)
17. Dio Jean Company (DJC)
35. Kumankoma Company Ltd (KCL)
18. Sompa Kokoo Ltd. (SKL)
3
Chief Executive’s Report for the Year Ended 30th September, 2012, Continued
The performance of the respective LBCs during the season under review is shown in Figure 1.
SOURCE: RM&E DEPT., COCOBOD
The Produce Buying Company Limited (PBC) continued to be the leading buyer of cocoa with 35.27%
share of the market. Akuafo Adamfo and Armajaro Ghana Limited followed in second and third places
with market shares of 12.82% and 8.45% respectively. The other 29 companies together accounted for
43.46% of the market.
3. COFFEE AND SHEANUT PURCHASES/EXPORTS
The private sector continued to lead the internal and external marketing of coffee and sheanuts during
the 2011/12 crop year. The number of coffee and sheanut LBCs was fifty (50) and twenty (20) respectively
during 2011/12. Ten (10) coffee LBCs namely, Time Marketing Company Ltd, Ghalia Ghana Ltd, Melgrove
Company Limited, De Jong, Al Noad, Emof Ventures, Cocoa Research Institute of Ghana/Cocoa
Marketing Company (CRIG/CMC), Yoal Limited, Plantations Resources and Bet Exports Limited were the
only companies that reported coffee purchases totalling 3,254 tonnes during the period. COCOBOD
with the support of Government continued with the coffee rehabilitation project which focused on
boosting production. The overall aim of the project was to transform the coffee sub-sector as part of the
modernization of the Agricultural sector in Ghana.
Sheanuts exported during the year 2011/12 was 111,194 tonnes valued at US$25,086,810. Produce Buying
Company Limited, Kassardjan Industries Limited, Shebu Company Limited, 3F Ghana Limited and
Wilmardel Limited were the major operators in the industry.
4
4. PERFORMANCES OF DIVISIONS AND SUBSIDIARIES
A. QUALITY CONTROL COMPANY (QCC)
QCC’s core functions of grading/sealing and disinfestation of schedule crops of COCOBOD (i.e. cocoa,
coffee and sheanuts) continued during the period under review. The Company also inspected and
certified the storage facilities of Cocoa Marketing Company (Gh) Ltd., Unicontrol (Gh) Ltd. and Licensed
Buying Companies at both up-country and take-over centres, in accordance with Cocoa Industry
Regulations 1968/LI598. The company, as part of its responsibilities, intensified education of farmers on
the best known agronomic practices in order to maintain the premium quality of Ghana’s cocoa.
a. Selective Grading of Cocoa
Prescribed codes for the various cocoa bean-size categories which differentiate the 2011/12 crop
from the previous years’ are indicated below:
BEAN SIZE
BEAN COUNT
PRESCRIBED CODES
CATEGORY
Super Main Crop
Main Crop
Super Light Crop
Light Crop
Small Beans
Type “4”
Remnant
PER 100 GRAMS 2011/12 SEASON
Up to 90
Q
91 to 100
C
101 to 110
D
111 to 120
M
121 to 130
E
131 to 150
G
151 to 180 R
b. Grading and Sealing
(i) Cocoa
QCC graded and sealed 877,326 tonnes of cocoa by the end of 2011/12 as against 1,023,038 tonnes in
2010/11. The graded and sealed figure represented 99.77% of the total declared purchases of 879,348
tonnes.
(ii) Other Produce Inspected
QCC also inspected and certified the following produce during the 2011/12 crop season.
Produce
Cocoa Waste (tonnes)
Coffee (tonnes)
Sheanut (tonnes)
2010/11
2011/12
6,038
93
-
2,821
52
-
c. Check Sampling
QCC carried out check sampling activities to certify the purity of every consignment of sealed cocoa
delivered by the LBCs to CMC at the Take-Over Centres. Additionally, parcels of cocoa for export or
delivery to local processing factories were check-sampled prior to shipment or delivery to the local
processing factories.
5
d. Disinfestation Activities
The company also undertook the following disinfestation activities during the period.
(i) Insect Control Operations:
2011/12
1. Number of sheds sprayed
2. Number of sheds fogged
3. Average number of times sheds were fogged
4. Tonnage of cocoa fumigated for export
(including re-fumigated stock) (ii) 1,311,734
17,734
50,304
3
1,034,170
Shipment Inspection and Treatment: Number of vessels inspected and treated at the two
ports before loading of produce for export B.
50,453
62,058
3 2010/11
458
393
COCOA MARKETING COMPANY (GH) LIMITED (CMC)
CMC continued to market and ship cocoa on sales contract to local and overseas buyers from Takoradi
and Tema ports.
(a) Shipments and Local Deliveries
(i)
Cocoa Beans
Cocoa beans shipped to overseas destinations during 2010/11 crop year totalled 813,835 tonnes. The
FOB value of the beans shipped amounted to GH¢2,714,563,447.82. Deliveries to local cocoa processing
companies totalled 227,412 tonnes. The local sales were delivered to WAMCO, Barry Callebaut, Cocoa
Processing Company Limited, Afrotropic Cocoa Processing Limited, Commodities Processing Industries
Limited, Plot Enterprise, Cargill (Ghana) Limited and Archer Daniels Midland Cocoa (Ghana) Limited. The
direction of trade for beans shipments as well as cocoa deliveries to local processing factories are shown
in Figures 2 and 3 respectively.
6
The European Union continued to be the major export destination for Ghana’s cocoa beans. Shipment
of cocoa to the EU accounted for about 55.70% of total cocoa beans exported in 2011/12 as depicted in
Figure 2.
Figure 3 depicts the shares of cocoa beans processed by respective local processing factories during the
period under review. Barry Callebaut Limited processed the largest share of 31.79%.
7
(ii) Cocoa Products
Exports of cocoa products by six (6) cocoa processing factories during the 2011/12 year comprised
103,767 tonnes of cocoa liquor, 21,380 tonnes of cocoa butter, 9,587 tonnes of cocoa cake and 9,849
tonnes of cocoa powder. These exports were valued at GH¢588,768,106, GH¢119,719,117, GH¢60,147,710
and GH¢74,299,625 respectively.
Details of cocoa products shipments by destination during the 2011/12 season are as shown in Figure 4
below.
Trend analysis of cocoa products shipments confirmed the EU market as Ghana’s most important
destination for the cocoa trade. The bulk of cocoa products produced by local cocoa processing factories
were delivered to European buyers.
C.
SEED PRODUCTION UNIT – (SPU)
The Seed Production Unit (SPU) produced and distributed hybrid cocoa seed pods and seedlings to
farmers during the 2011/12 season.
(a) Hybrid Seed Pods
A total of 5,521,703 hybrid cocoa pods representing 66.38% of the set target of 8,319,864 were produced.
Out of the total hybrid pods harvested, 5,279,967 representing 95.62% was distributed as field usable
totals. A total of 4,354,588 pods were sold to farmers while the remaining 925,379 were used by SPU and
CSSVDCU to raise seedlings for distribution to farmers.
8
(b) Cocoa Seedlings
A total of 18,779,925 cocoa seedlings, representing 104.33% of the set target of 18,000,000, were raised
during 2011/12. These seedlings were distributed to the CSSVD Control Unit to support replanting
programs on CSSVD treated farms and some of the seedlings sold to farmers for the rehabilitation of
over-aged and died-out cocoa farms through the International Institute of Tropical Agriculture (IITA) and
Sustainable Tree Crops Program (STCP).
D. COCOA SWOLLEN SHOOT VIRUS DISEASE CONTROL UNIT (CSSVDCU)
(a)
Field Operations
The CSSVD Control Unit continued with cocoa swollen shoot virus disease control activities during the
2011/12 crop year. The Unit was also mandated to carry out the Cocoa Extension and Cocoa Rehabilitation
Scheme. Training of Farmer Based Organizations (FBOs) and Local Community Facilitators (LCF) in cocoa
extension service delivery as well as the removal and replanting of old cocoa trees continued during the
year under review.
A total of 590 sectors, involving 2,728 blocks and covering an area of 934,206.25 hectares, was surveyed
during the year under review. In addition, the Unit discovered 8,427 swollen shoot outbreaks, covering
a land area of 74,642.73 hectares with 68,707,971 estimated diseased trees. The Unit also completely
treated 1,815 outbreaks with the removal of 21,467,618 contact trees as against 17,823,293 removed in
2010/11. Outstanding CSSVD outbreaks stood at 35,284 with 190,382,920 estimated diseased trees.
The CSSVD Control Unit disbursed GH¢4,845,936.26 as initial treatment grant to owners of 8,173.25
hectares of cocoa farms treated against CSSVD during its 2011/12 operations. A total of GH¢4,481,804.69
was paid as wages for the removal of 9,017,576 infected trees while GH¢8,541,594.98 was paid as
replanting grant for 5,722.50 hectares.
E.
COCOA RESEARCH INSTITUTE OF GHANA (CRIG)
Scientific research activities carried out by CRIG during the 2011/12 crop year included the following.
a.
Cocoa Agronomy, Cocoa Development/Improvement, Capsid, Black Pod and CSSVD
Control
i. Cocoa establishment confirmed the effects of slash-burn and slash-no burn as land clearing
methods and intercrops on soil fertility, growth and yield of cocoa. An evaluation of Cedrela
odorata, a commercial timber species, as permanent shade in cocoa cultivation was also carried
out. An evaluation of a diversified cocoa/fruit tree system showed that treatments had significantly
different effect on the growth of cocoa at 20 months after transplanting.
ii. Intercropping cocoa with food crops is beneficial even in the absence of fertilizer application.
Establishing cocoa by close planting and thinning slightly increases labour cost which has no
effect on yield and does not vindicate peasant farmers practice. Responses of cocoa to fertilizers
vary with locations. Production of healthy and diseased pods did not differ significantly with the
month of application of the fertilizers at the locations.
iii. During progeny trials, families with the best establishment success, acceptable vigour and
precocity were obtained from T63/971 x SCA 9, and crosses between PA 7, PA 150 and T60/887 with
CRG 6035 and MAN 15-2. Analysis of three newly established trials that aim to assess the potential
9
of previously under-utilized clones have provided evidence of existence of clones of high potential
among these groups.
iv. Under the cocoa fungal diseases management studies, a black pod survey showed that
Phytophthora palmivora was commonly encountered in farms. Mistletoe infestation, white thread
blight root rots and stem canker diseases were common on most farms in Ghana. In addition, a
severe outbreak of pink disease was observed in some parts of Eastern Region. Also, decoctions
of Momordica charantia, Cryptolephis sanguinolenta and Tridax procumbens were tested against
the black pod disease on the field and Momordica charantia and Cryptolephis sanguinolenta
were found to be more effective than Tridax procumbens. Again, oil from Xylopia aethiopica, and
cashew nut shell liquid were tested and also found to be effective for the control of the disease.
v. The search for safer alternatives to currently used insecticides led to the recommendation of
tested products to be used on cocoa. For the control of mirids and other insects, Miricon EC,
Rimonstar and Acetaster were approved. For the control of termites, Hercules 50SC was to replace
Dursban which has been banned on cocoa. Pyrethrum 5EW was recommended to be used on
organic cocoa. The search for natural enemies such as entomopathogens continued with isolation
of Baeuvaria bassiana for mired control. Studies on biology of the cocoa stem borer provided
relevant information to develop integrated pest management
vi. Cocoa swollen shoot virus (CSSV) thrust, trials indicated that the mild strains cross-protection
was effective in controlling CSSV while having very little or no effect on yield and growth of the
trees. However, it is still important to continue with the data collection to determine how long the
protection can last. For the alternative host trial, Artcocarpus communis seem to be harboring a
virus which is yet to be clearly identified.
b.
Coffee Agronomy, Coffee Development/Improvement, Coffee Pests and Disease Control
i. Application of coffee husk alone enhanced coffee yield at both Tafo and Afosu in a trial that
investigates the productivity of coffee tree through the combined application of fertilizers, mulch
and weed control. However, weed control methods did not affect coffee yield at both locations.
Results from the evaluation of foliar fertilizer formulations on growth and yield of coffee showed
that, after 36 months of planting, the fertilizers applied did not significantly influence the growth
of young plants.
ii. Hybrid seed planting materials with bean yield of 2.0 to 2.2 tons/ha, bean weight of 14.5 to
15.1g/100 beans, tolerance to drought and good architectural traits are currently being supplied
to farmers alongside clone planting material. An improved population of expected bean yields
of 1.8 tons/ha and bean weight of 14.0g/100 beans, among other agronomic traits of interest, has
also been released to farmers as tentative seed planting material.
iii. A programme has been initiated to determine factors that affect post-harvest quality of coffee,
and establish how green bean quality could be improved during processing.
10
c.
Kola Agronomy, Development/Improvement, Kola Pests and Disease Control
i. Twelve (13) Kola genotypes were introduced into the Kola genebank at CRIG to widen the genetic
base of materials needed for successful improvement of the crop. The materials are currently being
evaluated for ease of establishment and growth habit.
ii. Kola progeny and clonal trials included thirteen new kola accessions which were introduced into
the kola germplasm collection to widen the genetic base. Evaluation made on the yield of some
crosses in the progeny trial showed a significant difference among the genotypes used. In the
clonal trials, results indicate a significant difference among clones used.
d.
Sheanuts Agronomy/Cashew Development, Sheanuts Pests and Disease Control
i. Investigations into pest control potentials of entomopathogens associated with the major insect
pests of cashew, B bassiana has the potential for use in the management of the girdler. Chemical
insecticides continued to provide good protection to cashew trees with Imidacloprid performing
better than Bifenthrin and Thiamethoxam
ii. The study of the use of fertilizers on cashew, showed that application of poultry manure and cow
dung significantly influenced the growth of young cashew as well as soil chemical properties.
The lack of effect of intercropping on early yield of cashew indicates that cashew farms can be
intercropped with yam and maize to enhance establishment and generate income to partially
offset the cost of establishment.
e.
5.
New Products Development
Production of cocoa based by-products continued during the period. Development of cosmetics
and edible products from shea butter and shea pulp continued. Studies on the shelf-life of Jam
developed from shea fruit pulp have shown that the product can be stored for more than a year.
Studies on the use of reject cashew kernels in broiler feeding revealed that reject cashew kernels
could form up to 150g of broiler finisher diets without any deleterious effects and reduces the use
of maize, fishmeal and soybean meal. Shea kernel cake treated with 0.01M NaOH is found to be the
most practical way of removing tannins in an on-going study aimed at using the cake in animal
feeding.
FINANCIAL RESULTS
Highlights of the audited accounts for the 2011/12 season included the following:(i)
Profit/Loss
During the 2011/12 financial year, COCOBOD made a loss of GH¢14,935,967 compared to
GH¢9,826,237 profit recorded in 2010/11. The 2011/12 financial year recorded an achievable FOB
price of US$2,918.00 per tonne as against US$3,294.00 per tonne in the 2010/11 financial year.
11
(ii)
Export Duty
COCOBOD paid a total of GH¢76,000,000.00 as export and local duty into Government Treasury in
2011/12 crop year as against GH¢148,679,010.89 paid during the 2010/11 crop year.
6.
COMMUNITY IMPROVEMENT PROJECTS
As part of our corporate social responsibility, COCOBOD made cash donations to various institutions
during the 2011/12 season. The institutions that received sponsorship during the period were:-
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Aburiman Council
Ghana Chemical Society
Akuapem-Mampong Traditional Council
Manso-Abore Traditional Area
University of Ghana Medical Students’ Association (UGMSA)
Adansi South District Assembly
The Security Services Sports Council
Ministry of Food and Agriculture
Prison Ladies Association (PRILAS)
Akyem Abuakwa Traditional Council
New Juaben Traditional Council
Sewass Old Students’ Association
Gbi (Hohoe) Traditional Area
National Commission for Civic Education
Saltpond- Bakado Development Committee
Hohoe E.P Secondary School Old Students Association
Musicians Union Of Ghana
Gbidukor Festival
Ghana Business Coalition Against HIV and Aids
Adukrom Traditonal Area
General Agricultural Workers’ Union of G.T.U.C
E-On 3 Company Limited
Seday Car Accessories Ltd
Daasebre Awuah Kotoko II
Ghana Military Police , Medo Line,Burma Camp
Pure Creations Limited
University for Development Studies
National Kidney Foundation
Editors Forum Ghana
Evelyn Bekoe (Launching of Book)
Guan Congress
Ghana Education Service
Godwin Yirenkyi (publication on cocoa)
Ghana Aids Commission
FGMSA- March Meeting 2012 Ghana
12
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
Chief of Staff
College of Health Sciences (University Of Ghana)
University of Ghana Faculty of Science
Institute of Human Resource Mg’t Practitioners, Ghana
National Road Safety Commission
Ghana Cocoa Coffee Sheanut Farmers Association
Ghana Trades Union Congress
Candela Medicals Ltd
Asogli Yam Festival Committee
Muslim Youth Support Initiative
Ghana Science Association
Awansah Ahenfie ( Osabarima Adusei Peasah IV)
Volta Trade, Investment and Cultural Fair
Nana Ama Serwah Nyarko Silver Jubilee Anniversary
Adabraka Stool Authority
National Best Teacher Award
National Communications Authority
Bunso Liverpool Football Club
National Youth for Peace
Institute of Chartered Accountants (Ghana)
University of Ghana Business School
E- Crime Project
Akatsi District Assembly
Cocoa Advocates Movement
Demonstration School for the Deaf
7.
MAJOR VISITORS TO COCOBOD
COCOBOD received a number of delegations with varying missions during the 2011/12 crop
year. This includes a delegation from the Swedish National Board of Trade and a delegation from
Nigeria’s Ministry of Agriculture and Rural Development to share experiences on current practices
in the cocoa industry in Ghana.
ANTHONY FOFIE
CHIEF EXECUTIVE
13
FINANCIAL STATEMENTS
30th September 2012
14
Contents
Pages
BOARD OF DIRECTORS AND OFFICIALS
16
REPORT OF AUDITORS
18
STATEMENT OF COMPREHENSIVE INCOME
19
STATEMENT OF FINANCIAL POSITION
20
STATEMENT OF CHANGES IN EQUITY
21
STATEMENT OF CASH FLOWS
22
GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
23
OTHER NOTES TO THE FINANCIAL STATEMENTS
34
15
BOARD OF DIRECTORS
CHAIRMAN
DR. PERCIVAL ALFRED KURANCHIE
CHIEF EXECUTIVE
MR. ANTHONY FOFIE
MEMBERS
MR. K. B. AMISSAH-ARTHUR
PROF. KOFI NKETSIA AFFUL
MR. PAUL ASIMENU
MRS. AFRIYIE HAFFAR
DR. AGYEMAN ATUAHENE KONTOR
NANA ADJEI DAMOAH
DR. (MRS.) BERNICE ADIKU- HELOO
MR. CHARLES TETTEH K. DODOO
SECRETARY
MR. J. D. CLOTTEY-SEFA
MANAGEMENT
MR. ANTHONY FOFIE
CHIEF EXECUTIVE
MR. WILLIAM MENSAH
DEP. CHIEF EXECUTIVE (F&A)
DR. YAW ADU-AMPOMAH
DEP. CHIEF EXECUTIVE (A&QC)
MR. KWABENA ASANTE POKU DEP. CHIEF EXECUTIVE (OPS)
AUDITORS
PANNELL KERR FORSTER
CHARTERED ACCOUNTANTS
FARRAR AVENUE
P. O. BOX 1219
ACCRA
JAMES QUAGRAINE & CO
DIAGONALLY OPPOSITE LOCAL GOVERNMENT TRAINING SCHOOL
P. O. BOX 3947
ACCRA
16
Independent Auditors’ Report to the Members of Ghana Cocoa Board
Report on the Financial Statements
We have audited the accompanying financial statements of Ghana Cocoa Board which comprise the
statement of financial position as of September 30, 2012, the statement of comprehensive income,
statement of changes in equity, and statement of cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial Reporting Standards and in the manner required by the
Companies Code, 1963 (Act 179) and the Ghana Cocoa Board Law 1984 (PNDCL.81) This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error; selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
We have not sighted the Title Deeds of some of the Land and Buildings and Sheds as stated in the Board’s
books to establish the ownership of these assets.
In our opinion, subject to the matter mentioned above, the financial statements give a true and fair view
of the financial position of Ghana Cocoa Board as of September 30, 2012, and of its financial performance
and its cash flows for the year then ended in accordance with the Ghana Cocoa Board Law 1984 (PNDCL.
81), International Financial Reporting Standards and comply with the Companies Code, 1963 (Act 179).
Report on other Legal and Regulatory Requirements
17
Independent Auditors’ Report to the Members of Ghana Cocoa Board, cont’d.
1.
The Ghana Cocoa Board Law 1984 (PNDC L.81):
The Board has not complied with Section 26(1) of the Ghana Cocoa Board Law 1984 (PNDCL. 81)
which requires the Board to establish a contributory insurance scheme for Cocoa, Coffee and Shea
nut farmers within the framework of the Social Security Scheme.
The Board has with effect from the 2009/2010 financial year approved the establishment of
the insurance scheme and a technical committee has since been set up in January 2010 for its
implementation.
2.
The Ghana Companies Code, 1963, (Act 179) requires that in carrying out our audit we consider and
report to you on the following matters. We confirm that:
i)
We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit.
ii)
In our opinion proper books of accounts have been kept by the Board, so far as appears from our
examination of those books, and
iii) The statement of financial position and statement of comprehensive income of the Board are in
agreement with the books of accounts.
………………………………….
PKF
FARRAR AVENUE
ACCRA
7TH FEBRUARY, 2013
18
Statement of Comprehensive Income
Notes
Gross Turnover
2
2012
GH¢
2011
GH¢
4,619,210,810 4,754,198,210
Operating Cost
3 4,403,222,536 4,407,622,199
385,133,105 343,623,646
4
Cost of Sales
Admin. & General Expenses
4,788,355,641 4,751,245,845
Operating (Loss) / Profit
Other Income
5
Profit before Appropriations
Export and Local Duty
22
Net (Loss) Profit for the Year Transferred to Income
Surplus Account
(169,144,831)
2,952,365
230,208,864
155,552,883
61,064,033
158,505,248
(76,000,000)
(148,679,011)
(14,935,967)
9,826,237
(8,139,519)
(5,578,503)
(23,075,486)
(4,247,734)
OTHER COMPREHENSIVE INCOME
Net change in fair value of available for sale financial assets:
19
Revaluation Loss recognised directly in equity
Total Comprehensive Income for the Year
19
Statement of Financial Position
Notes
2012
GH¢
2011
GH¢
7
6
8
454,664,272
0
18,340,973
349,270,472
0
25,988,999
473,005,245
375,259,471
469,111,499
481,556,370
888,400,660
720,751,822
378,194,717
7,038,898
1,038,976,194
320,861,639
2,559,820,351
1,745,071,448
13 1,564,252,467
14 885,684,000
3,561,400
15
1,508,907,594
379,959,019
3,561,400
2,453,497,867
1,892,428,013
106,322,484
(147,356,565)
579,327,729
16 (25,501,705)
24 (377,740,000)
227,902,906
(24,784,001)
0
176,086,024
203,118,905
393,290
104,192,871
95,719,145
(24,219,282)
393,290
119,128,838
99,676,540
(16,079,763)
176,086,024
203,118,905
Non-Current Assets
Property, Plant and Equipment
Plantations Development
Loans and Investments
Current Assets
9
10
11
12
Inventories
Amounts Due from Subsidiary Company
Accounts Receivable
Cash and Bank Balances
Current Liabilities
Short Term Loan-Cocoa Bills
Accounts Payable
Loans
NET CURRENT ASSETS / (LIABILITIES)
Deferred Income
Medium Term Loan
Net Assets
Financed By:
Ghana Government Investment
Income Surplus
Special Funds
Revaluation Loss
17
18
19
These financial statements were approved by the Board of Directors
on 7th February, 2013.
..……………………………… Chairman
……………………………. Chief Executive
20
Statement of Changes in Equity
2012
Balance at 1 October 2011
Ghana
Government Revaluation
Loss
Investment
GH¢
GH¢
Special
Funds
Income
Surplus
Total
GH¢
GH¢
GH¢
393,290 (16,079,763)
99,676,540
119,128,838 203,118,905
Loss for the year
0
0
0 (14,935,967) (14,935,967)
Revalution Loss on Available for Sale
Investments
Total Comprehensive Income
0
0
(8,139,519)
(8,139,519)
0
0 (8,139,519)
0 (14,935,967) (23,075,486)
Appropriations to Farmers’ Welfare Fund
0
0
(980,000)
0
(980,000)
Transfer to Farmers’ Welfare Fund
0
0
0
0
0
Appropriations to Farmers’ Equalization
Fund
0
0
0
0
0
Stabilisation Fund
0
0
0
0
0
Farmers’ Pension Scheme
0
0
0
0
0
Net Movement on Cocoa Sweepings &
Sample Residue Fund
Balance at 30 September 2012
0
0
(2,977,395)
0
(2,977,395)
393,290 (24,219,282)
95,719,145 104,192,871 176,086,024
2011
Balance at 1 October 2010
393,290
(10,501,260)
79,894,895
165,251,528
235,038,453
Profit for the year
0
0
0
9,826,237
9,826,237
Revalution Loss on Available for Sale
Investments
Total Comprehensive Income
0 (5,578,503)
0
0 (5,578,503)
0
9,826,237
4,247,734
Appropriations to Farmers’ Welfare Fund
0
0
(23,001,292)
0
(23,001,292)
Transfer to Farmers’ Welfare Fund
0
0
982,624
(982,624)
0
Appropriations to Farmers’ Equalization
Fund
0
0
(21,310,600)
0
(21,310,600)
Stabilisation Fund
0
0
28,513,359
(28,513,359)
0
Farmers’ Pension Scheme
0
0
26,452,944
(26,452,944)
0
Net Movement on Cocoa Sweepings &
Sample Residue Fund
Balance at 30 September 2011
0 (5,578,503)
0
0
8,144,610
0
8,144,610
393,290 (10,501,260) 99,676,540 119,128,838 203,118,905
21
Statement of Cash Flows
2012
GH¢
2011
GH¢
(14,935,967)
55,412,089
(88,039,131)
15,939,715
717,704
(537,165)
(342,440)
9,826,237
47,213,151
(54,878,262)
18,033,536
4,551,572
(440,312)
203,648
(31,785,1950)
24,509,570
Change in Stocks
Change in Accounts Receivable
Change in Accounts Payable
(90,916,782)
150,575,534
505,724,981
(253,623,210)
(653,037,954)
(91,355,879)
Net Cash Inflow / (Outflow) from Operating Activities
533,598,538
(973,507,473)
Dividend Received
Bank Interest and Charges
Interest Received
Change in Special Funds
Appropriation to Farmers’ Welfare Fund
Appropriation of Special Funds
Decrease in Current Account with Subsidiaries
Purchase of Property, Plant and Equipment
537,165
(55,412,089)
88,039,131
0
(3,957,395)
0
(474,517,472)
(121,482,568)
440,312
(47,213,151)
54,878,262
8,144,610
(44,311,892)
0
40,841,716
(233,832,303)
Net Cash Outflow From Investing Activities
(566,793,228)
(221,052,446)
Notes
Cash Flows from Operating Activities
Net (Loss) / Profit for the Year
Bank Interest and Charges
Interest Received
Depreciation
Deferred Income
Dividend Received
Other Non Cash Adjustment
Operating Profit before Working Capital Changes
Investing Activities
Financing Activities
Loan
Loan Repayments
377,740,000 2,424,085,150
0
(2,424,085,150)
Net Cash Flow from Financing Activities
377,740,000
Increase / (Decrease) in Cash and Cash Equivalents
344,545,310 (1,194,559,919)
(1,188,045,955)
Cash and Cash Equivalents at 1 October
Cash and Cash Equivalents at 30 September
25
22
0
6,513,964
(843,500,645) (1,188,045,955)
General Information and Summary of Significant Accounting Policies
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Corporate Information
The Ghana Cocoa Board, is a body established by the Ghana Cocoa Board Law 1984 (P.N.D.C. Law 81)
and domiciled in Ghana. The Board is permitted by its regulations to carry on, inter alia, the business
of encouraging the production and the cultivation of cocoa and coffee. In addition, the Board is
permitted to initiate programmes aimed at controlling pests and diseases of cocoa, coffee and
sheanuts, purchase, import, undertake and encourage the manufacture in Ghana of, and distribute
and market inputs used in the production of cocoa, coffee and sheanuts and undertake, promote
and encourage scientific research aimed at improving the quality and yield of cocoa, coffee, sheanuts
and other tropical crops and regulate the marketing and export of cocoa, coffee and sheanuts, in all
aspects and other businesses and agencies incidental thereto. The address of the registered office
of the Board is ‘Cocoa House, Kwame Nkrumah Avenue, P. O. Box GP 933, Accra.
b. Statement of Compliance
The financial statements have been prepared in accordance with all International Financial
Reporting Standards, including International Accounting Standards and interpretations issued by
the International Accounting Standards Board and its committees, as required by the Institute of
Chartered Accountants (Ghana). The financial statements of the Board include the results of its
Divisions. However, on grounds of consistency and in accordance with the practice of the Board, the
accounts of the subsidiary have not been consolidated with these financial statements.
c. Basis of Preparation
The Board’s financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS). The Financial statements have been prepared under the historical
cost basis except for the following assets and liabilities that are stated at their fair values: financial
instruments that are at fair value through profit or loss; financial instruments classified as availablefor-sale; and property, plant and equipment.
d. Use of Estimates and Judgement
The preparation of financial statements in conformity with IFRSs requires Management to make
judgement, estimates and assumptions that affect the application of policies and reported amounts
of assets, liabilities, income and expenses. The estimates and the associated assumptions are based
on historical experience and other factors that are reasonable under the circumstances, the results of
which forms the basis of making the judgement about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revision to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects both
current and future periods.
23
General Information and Summary of Significant Accounting Policies, Cont’d
e. Summary of Significant Accounting Policies
The significant accounting policies adopted by Ghana Cocoa Board under the International Financial
Reporting Standards (IFRSs) are set out below:
i. Revenue Recognition
a) Cocoa Beans
Cocoa Marketing Company Limited (CMC) (a wholly owned subsidiary of COCOBOD) was established
with the sole purpose of selling cocoa beans on behalf of the Board.
Revenue in respect of cocoa beans sales is recognised upon receipt of copies of sales invoices from
CMC. CMC issues sales invoices to cover cocoa purchase order from buyers.
b) Interest Income and Expense
Interest income and expenses are recognised in the statement of income for
all instruments measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial asset or a
financial liability and of allocating the interest income or interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument or, when appropriate, a shorter period to the
net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Board estimates cash flows considering all contractual terms of the financial instrument but
does not consider future credit losses. The calculation includes all fees paid or received between
parties to the contract that are an integral part of the instrument.
Once a financial asset or a group of similar financial assets has been written down as a result of an
impairment loss, interest income is recognised using the rate of interest used to discount the future
cash flows for the purpose of measuring the impairment loss.
ii. Financial Assets and Financial Liabilities
• Categorisation of Financial Assets and Financial Liabilities
The Board classifies its financial asset in the following categories: financial assets at fair value through
profit or loss; loans and receivable; and available-for-sale financial assets; and held-to-maturity
investments. Financial liabilities are classified as either held at fair value through profit or loss, or
amortised cost. Management determines the categorisation of its financial assets and financial
liabilities at initial recognition.
• Financial Assets and Financial Liabilities at Fair Value through Profit or Loss
Financial asset or liability at fair value through profit or loss is a financial asset or financial liability
that meets either of the following conditions:
• Held for trading
A financial asset or financial liability is classified as held for trading if it is: acquired or incurred
principally for the purpose of selling or repurchasing in the near future; or part of a portfolio of
24
identified financial instruments that are managed together and for which there is evidence of a
recent actual pattern of short-term profit taking.
•
Designated at fair value through profit or loss
Upon initial recognition as financial asset or financial liability, it is designated by the Board as at fair
value through profit or loss except for investments that do not have a quoted market price in an
active market, and whose fair value cannot be reliably measured.
•
Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market.
•
Available-for-sale Financial Assets
Available-for-sale financial assets are non-derivative financial assets that are designated on initial
recognition as available for sale and are held for an indefinite period of time and may be sold in
response to needs for liquidity or changes in interest rates, exchange rates or equity prices.
•
Held-to-maturity Investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that the Board has the positive intention and ability to hold to maturity.
•
Initial Recognition of Financial Assets and Financial Liabilities
The Board shall recognise a financial asset or financial liability on its balance sheet when, and only
when, the Board becomes a party to the contractual provisions of the instrument subject to the
provisions in respect of regular way purchases or sales of a financial asset which state that, ‘a regular
way purchase or sale of financial assets is recognised and derecognized using either trade date or
settlement date accounting’.
•
Derecognition of Financial Assets and Financial Liabilities
Financial assets are derecognised when the right to receive cash flows from the financial assets has
expired or where the Board has transferred substantially all the risks and rewards of ownership.
Any interest in transferred financial assets that is created or retained by the Board is recognised as a
separate asset.
A financial liability (or part of a financial liability) is removed from the Board’s balance sheet when,
and only when, it is extinguished – i.e. when the obligation specified in the contract is: discharged;
cancelled; or expired.
•
Initial Measurement of Financial Assets and Financial Liabilities
When a financial asset or financial liability is recognised initially, the Board measures it at its fair
value plus, in the case of a financial asset or financial liability not at fair value through profit or loss,
transaction costs that are directly attributable to the acquisition or issue of the financial asset or
financial liability.
25
When the Board uses settlement date accounting for an asset that is subsequently measured at cost
or amortised cost, the asset is recognised initially at its fair value on the trade date.
•
Subsequent Measurement of Financial Assets
After initial recognition, the Board shall measure financial assets, including derivatives that are
assets, at their fair value, without any deduction for transaction costs it may incur on sale or other
disposal, except for the following financial assets: loans and receivables, which shall be measured
at amortised cost using the effective interest method; held-to-maturity investments, which shall
be measured at amortised cost using the effective interest method; and investment in equity
instruments that do not have a quoted market price in an active market and whose fair value cannot
be reliably measured and derivatives that are linked to and must be settled by delivery of such
unquoted equity instruments, which shall be measured at cost.
•
Subsequent Measurement of Financial Liabilities
After initial recognition, the Board shall measure all financial liabilities at amortised cost using the
effective interest method, except for: financial liabilities at fair value through profit or loss. Such
liabilities, including derivatives that are liabilities, shall be measured at fair value except for a derivative
liability that is linked to and must be settled by delivery of an unquoted equity instrument whose
fair value cannot be reliably measured, which shall be measured at cost; and financial liabilities that
arise when a transfer of a financial asset does not qualify for derecognition or is accounted for using
the continuing involvement approach.
•
Gains and Losses
The Board shall recognise a gain or loss arising from a change in the fair value of a financial asset or
financial liability that is not part of a hedging relationship as follows: a gain or loss on a financial asset
or financial liability classified as at fair value through profit or loss shall be recognised in profit or loss;
a gain or loss on an available for sale financial asset shall be recognised directly in equity, through
the statement of changes in equity except for impairment losses and foreign exchange gains and
losses until the financial asset is derecognized, at which time the cumulative gain or loss previously
recognised in equity shall be recognised in profit or loss.
Interest calculated using effective interest method is recognised in profit or loss; dividends on an
available-for-sale equity instrument are recognised in profit or loss when the Board’s right to receive
payment is established;
For financial assets and financial liabilities carried at amortised cost, a gain or loss is recognised in
profit or loss when the financial asset or financial liability is derecognised or impaired, and through
the amortization process.
•
Amortised Cost Measurement
The amortised cost of a financial asset or financial liability is the amount at which the financial asset
or financial liability is measured at initial recognition, minus principal repayment, plus or minus the
cumulative amortisation using the effective interest method of any difference between the initial
amount recognised and the maturity amount, minus any reduction for impairment.
26
•
Fair Value Measurement
The determination of fair values of quoted financial assets and financial liabilities in active markets
are based on quoted market prices or dealer price quotations. If the market for a financial asset or
a financial liability is not actively traded or is an unlisted security, the Board establishes fair value
by using valuation techniques. These techniques include the use of arms’ length transactions,
discounted cash flow analysis, and valuation models and techniques commonly used by market
participants.
The value produced by a model or other valuation technique may be adjusted to allow for a number
of factors as appropriate, because valuation techniques cannot appropriately reflect all factors that
market participants take into account when entering into a transaction. Management believe that
these valuation adjustments are necessary and appropriate to fairly state financial instruments
carried at fair value in the balance sheet.
•
Offsetting
Financial assets and financial liabilities are set off and the net amount presented in the balance sheet
when, and only when, the Board has a legal right to set off the amounts and intends either to settle
on a net basis or to realise the asset and settle the liability simultaneously.
Income and expenses are presented on the net basis only when permitted by the accounting
standards or interpretation, or for gains and losses arising from a group of similar transactions such
as in the Board’s trading activity.
•
Measurement of Impairment and Provision for Credit Losses
The Board shall assess at each balance sheet date, whether there is any objective evidence that a
financial asset or group of financial assets is impaired.
A financial asset or group of financial assets is impaired and impairment losses are incurred if, and
only if, there is objective evidence of impairment as a result of one or more events that occurred after
initial recognition of the asset (a loss event) and that loss event(s) has an impact on the estimated
future cash flows of the financial assets or group of financial assets that can be reliably estimated.
It may not be possible to identify a single, discrete event that caused the impairment. Rather, the
combined effect of several events may have caused the impairment. Objective evidence that a
financial asset or group of financial assets is impaired includes observable data that comes to the
attention of the Board about the following loss events:
• significant financial difficulty of the issuer or the obligor;
• a breach of contract, such as a default or delinquency in interest or principal payment;
• the lender (the Board), for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the Board would not otherwise consider;
• it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
27
• the disappearance of an active market for that financial asset because of financial difficulties; or
observable data indicating that there is a measurable decrease in the estimated future cash
flows from a group of financial assets since the initial recognition of those assets, although the
decrease cannot yet be identified with individual financial assets in the group, including:
• adverse changes in the payment status of borrowers in the group (e.g. an increased number of
delayed payments); or
• national or local economic conditions that correlate with defaults in the group (e.g. an increase in
the unemployment rate in the geographical area of the borrowers, a decrease in property prices
for mortgages in the relevant area, a decrease in oil prices for loan assets to oil companies, or
adverse changes in the industry conditions that affect the borrowers in the group).
A provision for credit losses is established if there is objective evidence that the Board will be unable
to collect all amounts due on a claim according to the original contractual term. A “claim” means a
loan, a commitment such as a letter of credit, guarantee or commitment to extend credit or other
credit product.
An allowance for credit loss is reported as a reduction in carrying value of a claim on the balance
sheet, whereas for an off-balance sheet item such as a commitment, a provision for credit loss is
reported in other liabilities. Additions to provisions for credit losses are made through credit loss
expense.
Provision for credit losses is based on the following principles:
Counterparty-specific – A claim is considered as a loss when management determines that it
is probable that the Board will not be able to collect all amounts due according to the original
contractual terms.
Individual credit exposures are evaluated based on the borrower’s character, overall financial
condition, resources and payment record, prospects of support from financially responsible
guarantor and cash collaterals.
An impaired asset refers to an asset where there is no longer reasonable assurance of timely
collection of the full amount of principal and interest due to deterioration in the credit quality of
the counterparty. An asset is impaired if the estimated recoverable amount of an asset is less than its
carrying amount shown in the books of the Board. Impairment is measured and a provision for credit
losses is established for the difference between the carrying amount and its estimated recoverable
value.
Estimated recoverable amount is measured by discounting the expected future cash flows at the
effective interest rate inherent in the asset. When the amount and timing of future cash flows cannot
be estimated with reasonable reliability, estimated, recoverable amounts may be measured at either:
• The fair value of any security underlying the assets, net of expected costs of recovery and any
amount legally required to be paid to the borrowers; or
28
• Observable market prices for the assets.
Upon impairment the accrual of interest income based on the original terms of the claim is
discontinued until the asset has been written down to its estimated recoverable amount. Interest
income thereafter is recognized.
A write-off is made when all or part of a claim is deemed uncollectible or forgiven. Write-offs are
charged against previously established allowances for credit losses or directly to credit loss expense
and reduce the principal amount of a claim.
iii. Loans and Advances
Loans and advances originated by the Board include loans where money is provided directly to the
borrower and are recognized when cash is advanced to the borrower. They are initially recorded
at cost, which is fair value of cash originated by the Board, including any transaction costs, and are
subsequently measured at amortised cost using the effective interest method.
iv. Investments
Investments are recognized on a trade date basis and are classified as held to maturity or available
for sale. Investments with fixed maturity dates, where management has both the intent and ability
to hold to maturity are classified as held to maturity. Investments intended to be held for indefinite
period of time, which may be sold in response to needs for liquidity or changes in the market, are
classified as available for sale.
Investments are initially measured at cost. Available for sale investments are subsequently remeasured at fair value based on quoted prices. Fair values for unlisted securities are estimated using
market values of the underlying securities or appropriate valuation methods.
Held to maturity investments are carried at amortised cost less any provision for impairment.
Amortised cost is calculated on the effective interest method.
v. Property, Plant and Equipment
Up to 28th February 1965 it had been the policy of the Board to write off all additions to Property,
Plant and Equipment in the year of purchase. All additions since that date are stated at cost less
accumulated depreciation and impairment losses. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount of assets is
the greater of their net selling price and value in use. The impairment losses are recognized in the
statement of income.
Depreciation is computed using the straight-line method, at the following annual rates:
Leasehold Land and Building
Cocoa and Coffee Sheds
Furniture and Equipment
Motor Vehicle
Plant and Machinery
Tractors
2%
10%
20%
25%
20%
25%
29
Repairs and maintenance are charged to the income statement when the expenditure is incurred.
Improvements to Property, Plant and Equipment are capitalized.
Gains and losses on disposal of fixed assets are determined by reference to their carrying amount
and are taken into account in determining net income.
vi. Translation of Foreign Currencies
The Board’s functional currency is the Ghana Cedi. In preparing the balance sheet of the Board,
transactions in currencies other than Ghana Cedis are recorded at the rates of exchange prevailing
on the dates of the transactions. At each balance sheet date, monetary items denominated in
foreign currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates
prevailing on the date when the fair value was determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of
monetary items, are included in the statement of income. Exchange differences arising on the
retranslation of non-monetary items carried at fair value are included in the statement of income
for the period except for differences arising on the retranslation of non-monetary items in respect
of which gains and losses are recognised directly in shareholders’ equity. For such non-monetary
items, any exchange component of that gain or loss is also recognised directly in the shareholders’
equity.
vii. Cash and Cash Equivalents
For the purposes of cash flow statement cash and cash equivalents include cash, non-restricted
balances with Bank of Ghana, amounts due from other banks and financial institutions and short
term government securities maturing in three months or less from the date of acquisition.
viii.Leases
Leases are tested to determine whether the lease is finance or operating lease and treated accordingly.
Finance leases - leases of property, plant and equipment where the Board has substantially all the
risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at
inception of the lease at the lower of the fair value of the lease property, plant and equipment and
the present value of minimum lease payments. Each lease payment is allocated between the liability
and finance charges so as to achieve a constant periodic rate of interest on the remaining balance
of the liability for each period. The corresponding rental obligations, net of finance charges, are
included on other long term borrowings. The interest element of the finance cost is charged to the
income statement over the lease period. The property, plant and equipment acquired under finance
leases is depreciated over the shorter of the useful life of the asset or the lease term.
Operating leases – leases where a significant portion of the risks and rewards of ownership are
retained by the lessor are classified as operating lease. Rentals payable under operating leases are
charged to income statement on a straight- line basis over the term of the relevant lease. Benefits
received and receivable as an incentive to enter into operating lease are also spread on a straight-
30
line basis over the lease term.
ix. Provision
Provisions for restructuring costs, legal claims and similar events are recognised when: the Board has
a present legal or constructive obligation as a result of past events; it is more likely that an outflow
of resources will be required to settle the obligation; and the amount has been reliably estimated.
x. Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost. Any difference between the amount initially recognised
(net of transaction costs) and the redemption value is recognised in the income statement over the
period of the borrowings using the effective interest rate method.
Borrowings are classified as non-current liabilities where the Board has an unconditional right to
defer settlement of the liability for at least 12 months after the balance sheet date.
xi. Inventories
Inventory is stated at the lower of cost or net realisable value. Costs of inventories includes, the
purchase price, and related transport and handling costs. In general, cost is determined on a first in
first out basis. Provision is made for obsolete, slow-moving and defective stocks.
xii. Accounts Receivable
These are shown at amortised cost, which is, the invoiced value, less a provision in respect of
impairment losses.
xii. Impairment of Non-financial Assets
The carrying amount of the Board’s non-financial assets other than deferred tax assets, are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such
indication exists then the assets recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell.
Impairment losses are recognised in the income statement.
Impairment losses recognised in prior periods are assessed at each reporting date for any indication
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the assets carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
xiv. Employee Benefits
• Defined Contribution Plans
Defined contribution plans are post-employment benefit plans under which the Board pays
fixed contributions into a separate fund and has no legal or contractual obligation to pay further
31
contributions if the fund does not hold sufficient asset to pay all employee benefits relating to
employee service in the current and prior periods.
Obligation for contributions to defined contribution plans are recognised as an expense in the
income statement when they are due.
•
Short-Term Benefits
Short-term employee benefits are amounts payable to employees that fall due wholly within twelve
months after the end of the period in which the employee renders the related service.
The cost of short-term employee benefits are recognised as an expense in the period when the
economic benefit is given, as an employment cost. Unpaid short-term employee benefits as at the
end of the accounting period are recognised as an accrued expense and any short-term benefit
paid in advance are recognised as prepayment to the extent that it will lead to a future cash refund
reduction in future cash payment.
Wages and salaries payable to employees are recognised as an expense in the income statement at
gross. The Board’s contribution to social security fund is also charged as an expense.
•
Termination Benefits
Termination benefits are recognised as an expense when the Board is demonstrably committed,
without realistic possibility of withdrawal, to a formal detailed plan to terminate employment before
the normal retirement date. Termination benefits for voluntary redundancies are recognised if the
Board has made an offer encouraging voluntary redundancy, it is probable that the offer will be
accepted, and the number of acceptance can be estimated reliably.
xv. Events after the Balance Sheet date
The Board adjusts the amounts recognised in its financial statements to reflect events that provide
evidence of conditions that existed at the balance sheet date.
Where there are material events that are indicative of conditions that arose after the balance sheet
date, the Board discloses, by way of note, the nature of the event and the estimate of its financial
effect, or a statement that such an estimate cannot be made.
xvi. Grants
Certain Institutions and former Government Departments, which became the responsibility of the
Board from 1 October, 1972 are advanced sums of money by the Board on the basis of budgets
submitted to it. Such advances are treated as grants and are written off in the Income Statement.
xvii. Investment Income
Income from investment in Ghana Government Stocks and Loans as well as dividends receivable
from the subsidiary is treated on a cash basis in the financial statements.
32
f. New Standards and Interpretation not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective
for the year ended 30 September 2009, and have not been applied in preparing these financial
statements. These are disclosed as follows:
(i) IFRS 3, this standard requires all future transaction cost relating to business combinations to be
expensed and contingent purchase consideration recognized at fair value at acquisition date.
For successive share purchases, any gain or loss for the difference between the fair value and the
carrying amount of the previously held equity interest in the acquire must be recognized in profit
and loss. It is not expected to have any impact on the Board’s financial statements.
(ii) IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities — Amendments to IFRS
7 These amendments require an entity to disclose information about rights to set-off and related
arrangements (e.g., collateral agreements). The disclosures would provide users with information
that is useful in evaluating the effect of netting arrangements on an entity’s financial position. The
new disclosures are required for all recognised financial instruments that are set off in accordance
with IAS 32 Financial Instruments: Presentation. The disclosures also apply to recognised financial
instruments that are subject to an enforceable master netting arrangement or similar agreement,
irrespective of whether they are set off in accordance with IAS 32. These amendments will not impact
the Company’s financial position or performance and will become effective for annual periods
beginning on or after 1 January 2013.
(iii) IFRS 8 Operating Segments introduces the “management approach” to segment reporting. IFRS 8,
which becomes mandatory for the Board’s 2009 financial statements, will require the disclosure of
segment information based on internal reports regularly reviewed by the Board’s Chief Operating
Decision maker in order to assess each segment’s performance and to allocate resources to them.
The Board is yet to implement this standard.
(iv) IAS 27 Separate Financial Statements (as revised in 2012)
As a consequence of the new IFRS 10 and IFRS 12, what remains in IAS 27 is limited to accounting for
subsidiaries, jointly controlled entities and associates in separate financial statements. The Company
does not present separate financial statements. The amendment becomes effective for annual
periods beginning on or after 1 January 2013.
33
Notes to the Financial Statements for the Year Ended 30 September 2012
2.
3.
TURNOVER
Cocoa Beans:Export
Local
2012
GH¢
2011
GH¢
3,936,471,192
682,739,618
3,894,178,851
860,019,359
4,619,210,810
4,754,198,210
316,292,700
3,395,627,879
42,432,762
3,608,999,248
3,711,920,579
3,651,432,010
(389,000,210)
(316,292,700)
3,322,920,369
3,335,139,310
1,080,302,167
1,072,482,889
4,403,222,536
4,407,622,199
COST OF SALES
Cocoa Beans
Opening Stock
Purchases
Closing Stock
Sales Expenses
34
2012
GH¢
2011
GH¢
215,019,930
55,412,089
14,115,987
7,492,773
26,631,172
15,939,715
180,000
2,710,873
47,630,566
385,133,105
205,775,996
47,213,151
12,321,901
6,025,089
17,695,421
18,033,536
180,000
3,053,433
33,325,119
343,623,646
537,165
88,039,131
1,056,024
1,398,458
1,186,605
10,187,609
933,542
33,181,309
93,689,021
440,312
54,878,262
490,851
562,151
1,499,588
8,530,088
932,128
18,010,439
70,209,064
4. ADMIN. AND GENERAL EXPENSES
Staff Cost
Financial Cost
Office Cost
General Expenses
Estate and Property Maintenance
Depreciation
Auditors Remuneration
Extension and Research Cost
Field Operation Cost
5. OTHER INCOME
This is made up as follows :
Dividend Received
Interest Received
Sundry Sales
Rent Received
Interest on Staff Loans
Cocoa Clinic
Office Rent
Other Sundry Income
Grading and Sealing of Cocoa
230,208,864
155,552,883
6. PLANTATIONS DEVELOPMENT
This comprises expenditure on Cocoa and Coffee Plantations under development in various regions
of the country. The plantations were managed by Cocoa Board Plantations Limited, a fully owned
subsidiary of Ghana Cocoa Board.
Cocoa Board Plantations Limited has been put into liquidation and the plantations have been taken
over by the Divestiture Implementation Committee.
A full provision has been made for the non recovery of the accumulated developmental
expenditure of GH¢1,107,700 incurred.
35
1,991,228
286,862,995
Balance at 30/9/12
36
276,897,910
187,524,503
NET BOOK VALUE - 30/9/11
1,669,010
1,469,887
521,341
9,965,085
Balance at 30/9/12
NET BOOK VALUE - 30/9/12
322,218
199,123
0
4,214,740
5,750,345
0
Balance at 1/10/11
Charge for Year
Disposals/Adjustments
Depreciation
1,991,228
0
0
191,739,243
93,926,770
1,196,982
Buildings
GH¢
AND EQUIPMENT
8,189,638
8,239,619
22,948,191
18,067,129
5,063,382
(182,320)
31,187,810
26,256,767
5,169,528
(238,485)
Cofffe & Furniture &
Cocoa
Sheds Equipment
GH¢
GH¢
Balance at 1/10/11
Additions
Disposals/Adjustments
Land &
7. PROPERTY, PLANT
5,251,790
4,137,389
22,721,279
19,936,186
2,823,573
(38,480)
26,858,668
25,187,976
1,751,702
(81,010)
Vehicles
GH¢
Motor
19,461,119
18,977,599
12,401,780
10,305,688
2,103,292
(7,200)
31,379,379
29,766,807
1,630,572
(18,000)
Machinery
GH¢
Plant &
127,174,412
144,941,868
0
0
0
0
144,941,868
127,174,412
19,003,996
(1,236,540)
Progress
GH¢
Work in
349,270,472
454,664,272
68,557,676
52,845,961
15,939,715
(228,000)
523,221,948
402,116,433
121,482,568
(377,053)
Total
GH¢
2012
GH¢
2011
GH¢
2,397,025
1,905,532
13
36
2,234,834
2,393,512
137,693
1,372
371,524
7,422,264
182,700
3,200,000
15,943,948
18,340,973
13
36
6,257,536
7,180,537
80,112
1,372
371,524
5,937,812
238,525
4,016,000
24,083,467
25,988,999
8. Loans and Investments
a
Loans
Staff Home Ownership
b
Investments
Cocoa Marketing Company (Gh.) Limited
Tema Chemicals Limited
Aluworks Limited
Cocoa Processing Company Limited
Ghana Oil Company Ltd.
Abuakwa Formulation Plant
West African Mills Company Limited
HFC Bank Limited
State Insurance Company
Ghana Commercial Bank Limited
Total
37
9.
2011
GH¢
389,000,210
5,821,355
40,183,546
24,801,786
10,077,496
469,884,393
(772,894)
469,111,499
316,292,700
11,943,328
34,821,742
6,049,512
9,860,329
378,967,611
(772,894)
378,194,717
481,556,370
7,038,898
37,226,192
9,243,165
375,186,385
109,828,815
65,892,647
233,994,000
104,939,053
936,310,257
(47,909,597)
888,400,660
22,222,144
8,686,784
597,789,518
141,552,042
58,135,717
233,994,000
24,505,586
1,086,885,791
(47,909,597)
1,038,976,194
INVENTORIES
Cocoa Beans
Cocoa Bags and Twines
Chemicals and Insecticides
Goods in Transit
Maintenance and Others
Provision for Obsolescence
10.
2012
GH¢
AMOUNTS DUE FROM SUBSIDIARY COMPANY
These include the following :
Cocoa Marketing Company (Gh). Limited
11.
ACCOUNTS RECEIVABLE AND PREPAID EXPENSES
Amounts due from Officers (Note 11a)
Prepaid Expenses (Note 11b)
Trade Debtors
Cocoa Processing Company Limited
Plot Commodities
Loan (Note 11c)
WAMCO
Provision for Doubtful Debts
a.
The maximum indebtedness of the officers of the Board at any time amounted
to GH¢ 37,226,192 (2011- GH¢22,222,144). This is mainly in respect of vehicle and
home-ownership loans.
b.
These represent the unexpired portion of certain expenditure spread on a time basis.
c.
The Loan was given to the Ministry of Finance as a result of Cocoa Bills issued by the Bank of Ghana. Ghana Cocoa Board is expecting the loan to be repaid by the Ministry of
Finance. The Government has since paid all the Loan amount.
38
2012
2011
GH¢
GH¢
Cash and Bank Balances
447,574,672
152,836,301
Fixed Deposits
273,177,150
168,025,338
720,751,822
320,861,639
12. CASH AND BANK BALANCES
13. SHORT TERM LOAN
These represent Cocoa Bills issued by the Bank of Ghana on behalf of the Board.
14. ACCOUNTS PAYABLE
Included in these are the following :
Retention on Contracts
4,619,225
4,732,909
Payroll Deductions
6,073,268
1,118,929
874,991,507
374,107,181
885,684,000
379,959,019
Other Accounts Payable & Accrued
Expenses
15. LONG TERM LOANS
Balances
Repayment
Exchange
Balance
10/01/2011
Drawings
During Year
Variation
30/9/2012
GH¢
GH¢
GH¢
GH¢
GH¢
6,500
0
0
0
6,500
IDA/Consultancy
156,600
0
0
0
156,600
IDA/ERP
625,000
0
0
0
625,000
8,200
0
0
0
8,200
ODA
324,300
0
0
0
324,300
IDA 1854-GH
951,900
0
0
0
951,900
ADB Loan
1,179,100
0
0
0
1,179,100
CIDA Fund
109,700
0
0
0
109,700
BADEA LOAN
174,300
0
0
0
174,300
IDA 2180-GH
25,800
0
0
0
25,800
3,561,400
0
0
0
3,561,400
E. C. G. D.
E. E. C.
No provision has been made for the interest accrued on the IDA Credit 1435-GH and 1436-GH.
39
b. ECGD Loan
This represents an ECGD Loan to the Board during 1981 for the purchase of motor vehicles and
spare parts.
The terms of the loan are as follows :
i. 5% of total price of goods to be paid within 30 days of signing the agreement.
ii. 10% of the invoice price of each shipment payable upon presentation of shipping documents and
iii. 85% of the invoice price of each shipment payable in 10 consecutive half yearly instalments.
c. IDA Credit 1436 - GH (Consultancy)
International Development Association credit of Special Drawing Rights (SDR), in various
currencies equivalent to US$4,417 million, made available to the Republic of Ghana in 1984.
The Government of Ghana re-lent the amounts to Ghana Cocoa Board in cedis. The loan is to be
repaid in 30 equal semi-annual instalments commencing 1 May 1989. Interest is at the rate of
12.5% per annum.
d. IDA Credit 1435 - GH and SF-9
International Development Association credit of Special Drawing Rights (SDR), equivalent to
US$24.323 million made available to the Republic of Ghana.
The Government of Ghana re-lent the proceeds of the Loan to the Ghana Cocoa Board in cedis.
The loan is to be repaid in 30 equal semi-annual instalments payable each May 1st and November 1st commencing in 1989 at an interest rate of 12.5% per annum.
e. EEC Loan
European Economic Community Loan of 2.935 million ECU. The loan was originally made available
to the Republic of Ghana and re-lent to Ghana Cocoa Board.
f. ODA
The Overseas Development Association made available to the Republic of Ghana 500,000 pounds
sterling in the form of aid. The amount has been re-lent to the Ghana Cocoa Board.
40
g. IDA 1854 - GH
The International Development Association (IDA) agreed to lend the Republic of Ghana
in an amount in various currencies equivalent to thirty-one million three hundred thousand
Special Drawing Rights (SDR 31,300,000).
The Government of Ghana has made available to the Ghana Cocoa Board as a loan an amount of
SDR 11,200,000 and as a grant an amount of SDR 12,160,000.
h. ADB Loan
The African Development Bank (ADB) agreed to lend to the Republic of Ghana an amount in
various currencies equivalent to nineteen million two hundred and thirty thousand Units
of Accounts (US$24.6 million). The amount has been re-lent to the Ghana Cocoa Board.
i. CIDA Fund
An allocation of CDN$3.5 million under the CIDA Fund was made by the Ghana Government
to the Board. The Board shall repay the cedi equivalent of this amount in monthly instalments
over five months commencing February, 1990.
j. BADEA Loan
The Arab Bank for Economic Development in Africa (BADEA) agreed to lend the Republic of Ghana
ten million US dollars (US$10,000,000). The amount was re-lent to the Ghana Cocoa Board.
16. DEFERRED INCOME
This represents unutilised funds for research, inputs for farmers and unamortised portion of capital
grants.
17. INCOME SURPLUS
In accordance with Ghana Cocoa Board Law, 1984 (PNDCL. 81 Section 29), at the end of each
financial year, after the Board has made provision for bad and doubtful debts, depreciation of
assets, contributions to staff and superannuation funds and for any other contingencies, and after
appropriation has been made to the Farmer’s Welfare Fund under section 27, a part of the profits of
the Board remaining as directed in writing by the Minister after consultation with the directors and
with the Minister responsible for Finance, shall be paid into the Consolidated Fund.
Movements during the year are set out in the Statement of Changes in Equity on page 6.
41
18. SPECIAL FUNDS
Farmers’ Welfare Fund
Staff Welfare Fund
Depreciation Fund
Housing Loan Fund
Capital Fund
World Food Programme
Crown Agents
Investment Fund
Stabilisation Fund
Cocoa Sweepings & Sample
Residue Fund
Farmers’ Equalisation Fund
Farmers’ Social Security
Fund
i.
Balance
1/10/2011
GH¢
Additions
to Funds
GH¢
Appropriations Etc.
GH¢
Balance
30/9/2012
GH¢
1,321,924
37,500
100
3,400
69,800
46,759
39,400
500
63,155,140
0
0
0
0
0
0
0
0
0
(980,000)
0
0
0
0
0
0
0
0
341,924
37,500
100
3,400
69,800
46,759
39,400
500
63,155,140
8,549,073
0
0
0
(2,977,395)
0
5,571,678
0
26,452,944
99,676,540
0
0
0
(3,957,395)
26,452,944
95,719,145
Farmers’ Welfare Fund
The Board is required under Section 27 (PNDCL. 81) to transfer to a Farmers’ Welfare Fund
a sum of money not exceeding ten per centum of the net profit of the Board for each financial
year. The Fund is to be used to finance development projects in cocoa, coffee and sheanut
producing areas; and the provision of other benefits to farmers such as low interest bearing
loans, refresher courses, scholarships for farmers’ wards, and for other arrangements aimed
at enhancing the welfare of cocoa, coffee and sheanut farmers.
ii.
Staff Welfare Fund
This represents the balance of the Fund created under the Ghana Cocoa Marketing Instrument,
1970 before the enactment of the Ghana Cocoa Board Law 1984 (PNDCL. 81).
iii.
Depreciation Fund
Section 28(i) of the Ghana Cocoa Board Law (PNDCL. 81) requires the board to pay the amounts
provided for depreciation into a Special Account with such commercial banks as the Board may
determine. As in the Board’s opinion, the amounts set aside for depreciation can be better
invested within the organisation and no amounts have been deposited with such commercial
banks.
42
iv.
v.
World Food Programme
This represents funds from the Ghana Government under the World Food Programme for the
construction of staff bungalows for agriculture extension officers at various regions as part of the
Cocoa Sector Rehabilitation Programme.
Housing Loan Fund
This represents the total amount voted by management out of :
a) Interest on Fixed Investments
b) Uninvested portion of funds from the Staff Superannuation Scheme.
vi.
Capital Fund
This represents the original balance in foreign exchange on the Crown Agent Account which
was taken over from WACRI. The movement on the account is in respect of interest income and
exchange rate adjustments.
vii. FARMERS EQUALISATION FUND
This represents the amount set aside for the payment of farmers bonus.
viii. Cocoa Sweepings and Sample Residue Fund One of the main objectives of the Board is to ensure the maintenance of high quality of cocoa.
To achieve this, Quality Control Division (QCD) is mandated to check-sample every consignment
of sealed cocoa evacuated by the License Buying Companies (LBCs). The sweepings and sample
residue are the samples collected and used to check the quality of cocoa beans at the take over
centres prior to shipment. Confiscated cocoa beans are non graded or sealed cocoa that have
been stolen or suspected to have been tampered with and delivered at the ports. These beans
are rebagged and later sold. Proceeds from the sale of this residue are shared equally among
Ghana Cocoa Board, CMC, QCD and the LBCs concerned.
ix. Quality Control Division Research Laboratory Fund
This fund was set up from the amount of US $500,000 received from Green View International
Company Limited as a compensation to the Board for the relocation of the QCD laboratory at
Tema.
iix. Stabilisation Fund
This fund is set up by the Board to ensure that prices paid to farmers are maintained even if prices
of cocoa fluctuate on the International market.
iiix. Farmer’s Social Security Scheme
This was established in compliance with the Ghana Cocoa Board Law 1984 (PNDCL . 81) . However the Board is yet to come out with the modalities of how farmers can benefit from it.
43
19. REVALUATION LOSS
This arose as a result of revaluation by the Board of the listed securities at current market values.
2012
2011
GH¢
GH¢
Balance at 1st October
(16,079,763)
(10,501,260)
(8,139,519)
(5,578,503)
Additions during the Year
(24,219,282)
(16,079,763)
Balance at 30th September
20.
CAPITAL COMMITMENTS
Capital expenditure contracted but not provided for in the financial statements as at 30 September, 2012 amounted to 93,500,000 GH Cedis (2011 - 95,500,000 GH Cedis).
44
21.
TAXATION
In accordance with Section 10 (I) (i) of the Internal Revenue Act, 2000 (Act 592) and
PNDCL. 81, the Board is exempted from Income Tax.
22.
EXPORT AND LOCAL DUTY
This is the Government share of net FOB of Cocoa Sales.
23.
CONTINGENT LIABILITIES
At the balance sheet date there were contingent liabilities not provided for in these accounts
as follows:
2012
2011
GH¢
GH¢
Pending Litigation
24.
7,500,000
4,500,000
2012
GH¢
2011
GH¢
MEDIUM TERM LOAN
Amount Drawn
Repayment
377,740,000 2,424,085,150
0
(2,424,085,150)
Balance at 30 September
377,740,000
377,740,000
0
0
The Ghana Cocoa Board contracted a Medium Term Loan facility of USD 200 million in
January 2012 for the 2011/2012 cocoa purchases with five Banks namely, Barclays Bank
of Ghana, Standard Bank plc, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo
Mitsubishi UFJ, Ltd and Ghana International Bank Plc. The facility is for three years with a one
year moratorium.
25.
ANALYSIS OF CASH AND CASH EQUIVALENT
720,751,822
Bank and Cash Balance
320,861,639
(1,564,252,467) (1,508,907,594)
(843,500,645) (1,188,045,955)
Cocoa Bills
45

Ghana Cocoa Board

Transcription

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