2016 Annual Report For Web 7.3MB

of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ASSETS [Note 23]
LIABILITIES AND SHAREHOLDERS’ EQUITY
SHAREHOLDERS’ EQUITY [Note 21]
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our audit opinion.
[in thousands of Canadian dollars] As at December 31
OPINION
CURRENT ASSETS
2016
$
2015
$
[in thousands of Canadian dollars] As at December 31 [in thousands of Canadian dollars] As at December 31
CURRENT LIABILITIES
2016
$
2015
$
2016
$
2015
$
In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of Ag Growth International
Inc. as at December 31, 2016 and 2015, and its financial performance
and its cash flows for the years then ended in accordance with
International Financial Reporting Standards.
Cash and cash equivalents [note 16] 2,774 58,234
Cash held in trust [note 6] 5,093 250
Accounts receivable [note 18] 81,033 73,524
Inventory [note 19] 99,479 98,722
Prepaid expenses and other assets 7,734 2,790
Accounts payable and accrued liabilities [note 26] 64,402 47,721
Customer deposits 22,428 21,461
Dividends payable 2,956 2,883
Current portion of contingent consideration [note 6] 4,023 2,687
Due to vendor [note 6] 16,415 1,114
Common shares 251,698 244,840
Accumulated other comprehensive income 56,027 42,560
Equity component of convertible debentures 6,912 6,912
Contributed surplus 16,940 10,193
Deficit (87,013) (69,350)
Due from vendor [note 6] 342 —
Acquisition, transaction and financing costs payable 262 732
TOTAL SHAREHOLDERS’ EQUITY 244,564 235,155
Winnipeg, Canada
March 14, 2017
Current portion of note receivable [note 7] 82 —
Income taxes recoverable 738 916
197,275 234,436
NON-CURRENT ASSETS
Other financial liabilities [note 6[b]] — 9,017
Income taxes payable 6,411 4,472
Current portion of long-term debt [note 23] — 34,600
Current portion of obligations under finance lease [note 24] 353 209
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 850,151 745,920
See accompanying notes
Property, plant and equipment, net [notes 10 and 34[a]] 209,457 165,687
Current portion of derivative instruments [note 29] 862 20,577
Goodwill [note 12] 227,450 170,262
Provisions [note 20] 6,654 6,550
Intangible assets, net [note 11] 197,215 163,781
124,766 152,023
Available-for-sale investment [note 15] 900 900
NON-CURRENT LIABILITIES
Chartered Professional Accountants
Other assets [note 27] 382 234
Note receivable [note 7] 725 —
Income taxes recoverable 4,079 3,930
Long-term debt [note 23] 206,849 112,331
Due to vendor [note 8] 776 800
Contingent consideration [note 6] 16,201 1,976
On behalf of the Board of Directors:
Derivative instruments [note 29] 9,289 —
Convertible unsecured subordinated debentures [note 25] 201,210 197,585
Deferred tax asset [note 28] 231 84
Obligations under finance lease [note 24] 1,379 1,177
649,728 504,878
Derivative instruments [note 29] 715 3,191
Assets held for sale [note 14] 3,148 6,606
Deferred tax liability [note 28] 53,691 41,682
TOTAL ASSETS 850,151 745,920
480,821 358,742
TOTAL LIABILITIES 605,587 510,765
Bill Lambert, Director
David A. White, CA, ICD.D, Director
67 INDEPENDENT AUDITORS’ REPORT
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 68