MARKET DEVELOPMENT
Audit: Felcra Suffered Profit Decline In 2012 Due To Low FFB Price
Audit: Felcra Suffered Profit Decline In 2012 Due To Low FFB Price
17/06/2014 (Bernama) - A key factor towards Felcra's dip in profit for 2012 was the decline in the price of fresh fruit bunches (FFB).
According to the Second Series of the Auditor General's Report 2013 released here Monday, the average FFB price in 2012 fell to about RM542.21 per metric tonne compared to the range of RM659.45 per metric tonne in 2011.
The report said Felcra also suffered a loss of RM12.71 million in 2012 from palm oil manufacturing activities.
"There was however, an increase in other income, notably, interest of RM9.26 million, dividends from subsidiaries of RM5 million and rental of premises of RM7.7 million in 2012 compared to previously," it added.
An audit analysis showed that there were management activities that needed attention by Felcra.
It included the dependence on interest from investments to support operational activities, the non-achievement of key performance indicators (KPI) for 2012 and 2013, and a drop in farm productivity and manufacturing activities that suffered sustained losses for three consecutive years as a result of instability in crude palm oil prices.
A further audit also revealed that Felcra's financial performance posted a profit after tax for three consecutive years that is, RM56.55 million, RM113.40 million and RM51.99 million respectively from 2010.
However, Felcra's profit suffered a drastic drop of RM61.41 million (54.2 per cent) in 2012 compared to 2011.
Felcra has been tasked with developing the rural sector by aiding the people there to participate in the country's economic activities and consequently, raise their standard of living and quality of life.
According to the Second Series of the Auditor General's Report 2013 released here Monday, the average FFB price in 2012 fell to about RM542.21 per metric tonne compared to the range of RM659.45 per metric tonne in 2011.
The report said Felcra also suffered a loss of RM12.71 million in 2012 from palm oil manufacturing activities.
"There was however, an increase in other income, notably, interest of RM9.26 million, dividends from subsidiaries of RM5 million and rental of premises of RM7.7 million in 2012 compared to previously," it added.
An audit analysis showed that there were management activities that needed attention by Felcra.
It included the dependence on interest from investments to support operational activities, the non-achievement of key performance indicators (KPI) for 2012 and 2013, and a drop in farm productivity and manufacturing activities that suffered sustained losses for three consecutive years as a result of instability in crude palm oil prices.
A further audit also revealed that Felcra's financial performance posted a profit after tax for three consecutive years that is, RM56.55 million, RM113.40 million and RM51.99 million respectively from 2010.
However, Felcra's profit suffered a drastic drop of RM61.41 million (54.2 per cent) in 2012 compared to 2011.
Felcra has been tasked with developing the rural sector by aiding the people there to participate in the country's economic activities and consequently, raise their standard of living and quality of life.