From: The Ghanaian Times
The Cocoa Processing Company (CPC) Limited ended the September 2013 fiscal year with a loss of US$11.8 million as against US$10.2 million in 2012.
The company’s current liabilities exceeded its current assets of US$161,309,286 by US$48.4 million, during the year under review, as against US$58.1 million in 2012, with an asset of US$133,650,517.
The company attributed the losses and liabilities to the five per cent it earns from exports revenue for its total operations, which hinders the company’s recovery from its financial constraints.
Presenting the statement at this year’s annual general meeting, the Chairman of CPC Limited, Jacob S. Arthur, said that with the company under severe pressure from its creditors, especially the Ghana Cocoa Board (COCOBOD) and syndicated banks, about 95 per cent of its revenue is used as payment on account of the outstanding loan facilities.
He said the CPC has been unable to conserve funds for the procurement of its main raw material; cocoa beans, for the past years because it had to meet its matured obligations, especially to its supplier; COCOBOD.
Mr. Arthur however said COCOBOD was assisting CPC to free itself of indebtedness to financial institutions to pave the way for increased supply of light crop beans to achieve its 70 per cent throughput production.
COCOBOD has restructured a portion of the company’s indebtedness into long term loans and has confirmed it will not seek repayment of amounts due to them in a manner that will jeopardise the ability of the company to continue operations,” he said.
Mr. Arthur said although the company faced a number of operational challenges during the year under review, it received certificates for two management systems, namely; the International Organisation Standardisation (ISO 9001:2008) and Codex Alimentarius Hazard Analysis & Critical Control Points (HACCP), following an audit of its operations by an external auditing company.
Some of the benefits your company stands to gain as a result of these certifications include improved customer satisfaction, competitive advantage over other industry players, continued improvement of processes and efficient utilisation of resources resulting in higher productivity,” he told the shareholders.
The Chairman disclosed to the shareholders that in order to curtail losses sustained by the company and revert to profit-making operations, the Board of Directors of CPC have drawn up a 10-year strategic plan with the objective of ensuring a year-round availability of cocoa beans and a well-managed unit cost of processing beans, among others.
Mr. Arthur said the company could not recommend the payment of a dividend whilst there remained a deficit balance on the retained earnings account.
He said the company could not achieve its production target since the cocoa factories processed a total of 20,979.406mt as against the set target of 30,000mt for the year 2012/2013.
By Lucy Pomaa Arthur