MRS. Marcia Nadir-Sharma, a representative of the National Industrial and Commercial Investments Limited (NICIL), the major shareholder of the Guyana National Newspapers Limited, (GNNL) has lauded the company’s performance under “difficult” circumstances.Speaking on Wednesday at GNNL’s 20th Annual General Meeting (AGM), held in the Conference Room of the Sleep Inn Hotel, Mrs. Nadir-Sharma said the company’s major shareholder is not “oblivious” to the major challenges, particularly financial, that the board and management of the GNNL have battled. She indicated NICIL’s support within its available limits, and expressed hope that the company’s profitability, as per the most recent annual report, would continue.

She also lauded the contribution of the employees in supporting the company’s performance.

The AGM considered the audited financial statements and related reports for the years 2009, 2010 and 2011.

RESOLUTION
Chairman of the GNNL Board, Mr Keith Burrowes, accepted responsibility for delay in hosting the AGMs for the said years, but made it clear that contrary to the public misconceptions, the audited reports were completed.
He also echoed Sharma’s congratulations for the company’s performance, given the “serious financial problems” it had in the last few years.

Accordingly, he moved a resolution, which was passed unanimously, for aggressive advances by management to resolve the multi-million-dollar debt owed by the Government Information Agency (GINA). Burrowes explained that, aside from that massive debt, the major contributory factors to the company’s “difficult times” have been and continue to be addressed. “Where we are now, compared to where we were, is a significant move forward,” he said.

The Chairman committed to supporting the company by advocating for much-needed additional resources, and called for diverse income-generating opportunities to be explored, expressly given the increasing competitive environment. “We need to plan for the future,” he stressed.

Burrowes is not likely to serve as board chairman for another year, and his efforts were lauded by colleague Director David DeGroot.

General Manager of GNNL, Nandkumar Puran, whose resignation became effective on Friday (February 14), echoed similar sentiments. “As Chairman, you have done GNNL tremendous service,” Puran said.

PERFORMANCE
The financial challenges referred to by Sharma and Burrowes, which significantly impacted cash flows, resulted in non-payment of dividends to shareholders. Dividends are expected to be announced once the financial position of the company is able to facilitate payments.

According to the report, the company recorded a loss of $8.2M for 2009, as compared to a loss of $7.3 in the previous year. In 2010, the company’s recorded loss was $47.1M, which was due to a write-off of bad debts. However, the report cited increased circulation of the Guyana Chronicle and increased advertising as the contributing factors to the $32.4M profit recorded in 2011.

Revenue and expenditure were $320M and 328.2M respectively in 2009; $343.6m and $390.7M respectively in 2010; and $368M and $335.6M respectively in 2011.

In commenting on the yearly performance, the Board Chairman noted that 2009 was a tough year, and businesses were adversely affected by rising costs as the global recession took hold. The Guyana Chronicle was affected by its dependence on raw materials, particularly newsprint, and by rising energy costs. Several strategies, he said, were employed to realise the turnaround.
Continued focus, he said, was employed in 2010 to meet the challenges similar to what obtained in 2009.

The Chairman said the company saw success in 2011 with operations being “prudently” managed, with resultant revenue increase and expenditure decrease. He cited the acquisition of a computer-to-plate (CTP) equipment as a major contributor to the improved print quality of the newspaper, and noted that many challenges are expected to be reported on in 2012, but he was nevertheless confident of success.
The reports of the auditors and the Auditor General, besides those of Bisheswar, Seebaran and Co. and Maurice Solomon and Co. reflected a qualified opinion for three years.

The opinion in 2009 was as a result of an outstanding balance of $58.9M, which Finance Controller Moshamie Ramotar explained at Mrs. Nadir-Sharma’s request as being reflective of non-payments by GINA.

In 2010 and 2011, the qualified opinions were a result of acquisition of furniture without substantiating documentation. The Finance Controller explained that those were donations, and the documentation was requested from donors.

Those matters aside, the auditors concluded that the rest of the financial statements were fairly presented.
Written By Vanessa Narine