STAYING THE COURSE - ttifc.co.tt & Tobago IFC’S F&A BPO Training Programme, for which 50 persons...

1

STAYING THE COURSEB U I L D I N G A F I N A N C I A L S E R V I C E S ECO S Y S T E M

ANNUAL REPORT

2017As at 30 September 2017

Trinidad & Tobago International Financial Centre15th Floor, Tower D, International Waterfront Centre

1 Wrightson Road, P.O. Box 735, Port of SpainTrinidad and Tobago

T: (868) 627-3081 | F: (868) 624-0794E: [email protected] | W: www.ttifc.co.tt

Published 12th December, 2017

2

TRINIDAD & TOBAGO IFC ANNUAL REPORT

3

STAYING THE COURSE | BUILDING A FINANCIAL SERVICES ECOSYSTEM

4


5


MILESTONES - 9

CHAIRMAN’S REPORT - 10

MANAGEMENT DISCUSSIONAND ANALYSIS

Department Reports - 13

T TIFCMCL 2017 in Pictures - 22

GOVERNANCE REPORTSBoard of Directors - 25

Board Committees - 26

DIRECTORS’ REPORT - 29

FINANCIAL REPORTING Statement of Management’s Responsibilities - 31

Independent Auditor‘s Report - 32

Statement of Financial Position - 34

Statement of Profit or Loss and

Other Comprehensive Income - 35

Statement of Changes in Equity - 36

Statement of Cash Flows - 37

Notes to the Financial Statements - 38

CONTENTSCORPORATE PROFILE

Who We Are and What We Do - 6

Notice of Annual Meeting of Shareholders - 7

Corporate Information - 8

The establishment of the Trinidad and Tobago

International Financial Centre Management Company Limited

(Trinidad & Tobago IFC) was approved by Cabinet Minute

No. 2647 on 18th September 2008 and the Company was

incorporated under the Companies Act, 1995

on 6th November 2008.

SHORT TERM

Support the development the Business Process Outsourcing (BPO)

industry through the facilitation of centres of excellence in

Finance & Accounting and Decision Analytics.

MEDIUM TO LONG TERM

Attract International Financial Institutions to provide financial services.

Position Trinidad & Tobago as the financial hub of Latin America/Caribbean region and establish the Trinidad & Tobago IFC as a one-of-a-kind onshore IFC in the Western Hemisphere.

Support government’s economic transformation agenda by contributing to sustainable growth, diversification of the economy and the creation of jobs.

CORPORATE PROFILE

THE TRINIDAD & TOBAGO IFC

BEGINNINGS

ASPIRATIONS

Vision

TO MAKE TRINIDAD AND TOBAGO

THE PREMIER LOCATION IN THE

WESTERN HEMISPHERE FOR

FINANCIAL SERVICES.

Mission

TO ATTRACT AND FACILITATE FOREIGN DIRECT

INVESTMENT IN THE FINANCIAL SERVICES SECTOR,

THAT WOULD ENHANCE THE GROWTH AND DIVERSIFICATION OF

THE ECONOMY BY CREATING SUSTAINABLE

EMPLOYMENT AND EXPANDING FOREIGN

EXCHANGE EARNINGS.


6

7


NOTICE OF ANNUAL MEETING

Notice is hereby given that the Seventh Annual Meeting of the Shareholders of Trinidad and Tobago International

Financial Centre Management Company Limited (hereinafter referred to as “Trinidad & Tobago IFCMCL”) will be held at

15th Floor Tower D, International Waterfront Centre, #1 Wrightson Road, Port of Spain on Friday 15th December 2017

at 9.00 a.m. for the following purposes:

1. To receive the Minutes of the Sixth Annual Meeting held on 16th December 2016;

2. To receive and consider the Report of the Directors for the fiscal year ended 30th September 2017;

3. To receive and consider the Audited Financial Statements of the Trinidad & Tobago IFCMCL for the fiscal year ended

30th September 2017, together with the Auditor’s Report;

4. The Directors, elected on 16th December 2016 until the next meeting of the Shareholders, have retired and hereby offer themselves for re-election until the close of the annual meeting of Shareholders next following.

5. To appoint the Auditors and to authorize the Directors to fix their remuneration.

By Order of the Board of Directors

Grant Thornton ORBIT Solutions Limited

Secretary

xxth November, 2017

NOTES

1. No service contracts were entered into between the Company and any of its Directors.

2. A member of the Company entitled to attend and vote at the above meeting is entitled to appoint proxy to attend

and vote in his or her stead. Such proxy need not also be a member of the Company.

3. Proxy Forms must be completed, signed and deposited with the Corporate Secretary of the Company.

8


BOARD OF DIRECTORS

Richard P. Young, Chairman

Reynold Ajodhasingh, Director

Peter Clarke, Director

Inez Sinanan, Director

Ewart Williams, Director

CORPORATE SECRETARY

Grant Thornton Orbit Solutions Limited

Queen’s Park Place,

17-20 Queen's Park West

Port of Spain

Trinidad and Tobago

EXECUTIVE TEAM

Joan Ferreira, Vice President

Corporate Services

Aliyah Jaggassar, Vice President

BPO/Shared Services Development

REGISTERED OFFICE

Level 15, Tower D

International Waterfront Centre

1 Wrightson Road

Port of Spain

Trinidad and Tobago

AUDITORS

Deloitte and Touche

54 Ariapita Avenue

Port of Spain

Trinidad and Tobago

BANKERS

First Citizens Bank Limited

MovieTowne Branch

Port of Spain

Trinidad and Tobago

PANEL OF ATTORNEYS-AT-LAW

JCS Law (Caribbean) Limited

5th Floor, Newtown Centre

30-36 Maraval Raod

Port of Spain

M.G. Daly and Partners

115A Abercromby Street

Port of Spain

Pollonais, Blanc, de la Bastide and Jacelon

Pembroke Court

17-19 Pembroke Street

Port of Spain

CORPORATE INFORMATION

M I L E S T O N E S

FACILITATED

THE CREATION OF

200 NEW SHARED

SERVICES JOBS

F&A BPO

PROVIDER (EUPHORIA)

REGISTERED LOCAL

SUBSIDIARY

MoU

SIGNED WITH

THE UWI

T&T

1ST TIME ON

THE BANKER’S

IFC LISTING

LAUNCHED

F&A BPO BURSARY

PROGRAMME

T&T

RECEIVED

UPGRADED

RANK ON GSLI

EXPANDED

F&A BPO

INVESTMENT

PIPELINE

PARTNERED

WITH ACCA &

THE UWI-

ROYTEC

T&T RECEIVED

UPGRADED RANK ON GFCI

STAYING THE COURSE | BUILDING A FINANCIAL ECOSYSTEM

9


10

Developing the Financial Services sector is a win-win strategy for economic diversification of our national economy within the medium term, as it will result in sustainable employment, human capital development and foreign exchange earnings.

These outcomes are in fact what make up the

mission of the Trinidad & Tobago IFC and, recent

developments in the sector have encouraged us to

maintain our current course. Particularly encouraging,

was BHP Billiton’s decision to relocate its North American

Petroleum Accounting and Reporting functions from

Houston to Port of Spain; Scotiabank’s recent addition of

200 new jobs at its Operations Shared Services Company

Limited (OSSCL); and the registration of a subsidiary of an

international Finance & Accounting (F&A) Business Process

Outsourcing (BPO) operator.

This is not to say that the path does not present very

specific challenges due to the dynamism of the

international financial services industry. These could

only be navigated with flexibility and by being open to

exploring new opportunities as they presented themselves.

A Changing Environment in the Global F&A BPO Sector

In its 2016 report, the Caribbean Association of Investment

Promotion Agencies Report (CAIPA) stated that the global

market of BPO is currently valued at an impressive US$1

trillion, where the size of the cross-border outsourced

services trade between countries was estimated at

US$88.9 billion per year in 2015. The largest share of this

revenue goes to the Asia Pacific (APAC) region. The region

dominated the outsourced services market share by nearly

70%, followed by Europe (10%), Canada (9%) and Latin

America (9%).

Among the noticeable trends in the global BPO

industry is the focus on innovative offerings, e.g., in

contract structuring, smaller BPO engagements with

clients splitting a deal into fewer, more specialist providers

as opposed to using one large provider; and more flexible

location solutions, e.g., agents working from home, on

site, nearshore or offshore, all now possible thanks to

technological advancements.

Customer Services Outsourcing

This represents the highest market penetration and its

growth is projected to decline over the coming five

years. Instead, new and interesting business segments

representing higher added-value services are taking off.

F&A, Human Resources, Legal Processes, Governance,

Risk and Compliance, and Insurance-related Outsourcing

are leading the way, while Robotic Process Automation

is predicted to take over lower-skilled tasks.

As referenced in the Report, the Caribbean region is

emerging as one of the most attractive destinations

for BPO. Trinidad and Tobago’s Value Proposition boasts

all the key success factors the Report lists such as

competitive cost levels, a well-educated workforce

with extensive language capabilities, flexible labour

regimes, as well as time-zone advantages and

geographical proximity to its key source market, North

America.

RICHARD P. YOUNG CHAIRMAN

CHAIRMAN'SREPORT


11

Trinidad and Tobago lies below the hurricane belt, which

is a critical sphere that is considered by BPO investors.

In challenging times, it helps to highlight what is working,

and Trinidad and Tobago’s second listing on the 2017

edition of A.T. Kearney’s Global Services Locations Index

(GSLI), where the country moved up by two positions to

be ranked 40/55, is a silver lining.

Such an achievement deserves recognition, given that

Trinidad and Tobago’s positioning on the global F&A BPO

map only began in earnest in 2014 and yet is ranked ahead

of legacy players such as Jamaica, Canada and Singapore.

The efforts of the Trinidad & Tobago IFC to mediate

linkages between international F&A BPO providers and

local enterprises continue, and in the case of the former,

the Trinidad & Tobago IFC has continued to facilitate

those which are interested in setting up operations in

Trinidad and Tobago so as to provide their clients with

a nearshore service option. Also, The University of the

West Indies (The UWI), ACCA and Roytec came forward

and agreed to collaborate with the Trinidad & Tobago IFC

to facilitate the upskilling of our F&A professionals so

that they would be better aligned for job opportunities

which are expected to arise in the sector. A milestone

initiative which came out of these partnerships was the

Trinidad & Tobago IFC’S F&A BPO Training Programme,

for which 50 persons received a bursary.

To support international investment in the F&A BPO sector,

it is important to develop the domestic industry, as this

is a critical success factor, considering the weighting it is

given by BPO operators looking to set up in a new territory.

Therefore, the Trinidad & Tobago IFC has undertaken active

engagement of at least eight local firms headquartered in

Trinidad and Tobago, which have the potential to create

their own captive shared services centres (SSC), or partner

with a foreign BPO provider to do so.

Some of the firms are seriously considering it for the

medium to long term. The Trinidad & Tobago IFC

will assist these firms by providing all required support

and facilitation services. In keeping with this thrust to

develop a local F&A BPO sector, the Trinidad & Tobago

IFC presented to both the The American Chamber of

Commerce of Trinidad and Tobago (AMCHAM) Board of

Directors, as well as to the local members of the British

Chamber, to highlight the benefits to the member firms

of centralizing their F&A functions in Trinidad and Tobago.

Interestingly, a perfect opportunity for this is captured

in a white paper created by the Trinidad & Tobago IFC,

on the efficiency and accountability, among other benefits,

which can be derived from creating an SSC in local

government. Similar SSC models have been utilized in

many other countries and is an accepted best practice. For

example, both in the UK and Ireland, shared services for

F&A have been implemented in local government – and

is highly reputable and renowned in the latter country in

particular. As these factors demonstrate, the Trinidad &

Tobago IFC is on the right track to achieving growth

in the BPO industry.

An IFC with a Positive Image

Unlike other IFCs, which have been plagued by criticisms

of facilitating tax evasion for wealthy individuals, Trinidad

and Tobago has always been positioned and perceived

as an onshore centre.

IFCs offer an environment for investors to establish

investment funds and holding companies to facilitate

structuring of business transactions in countries with

favourable bilateral investment or tax treaties. It is

also becoming harder to facilitate illicit activities as

governments and regulators move to ensure that their

IFCs operate in line with global standards and regulations.


MANAGEMENT DISCUSSION AND ANALYSIS

FINANCIALMARKETS

DEVELOPMENT

CORPORATESERVICES

BPO/SHARED SERVICES

DEVELOPMENT

CHAIRMAN’S REPORT continued

Recent studies have shown how IFCs can play an important role in facilitating the movement of capital around global markets, helping to boost global trade and economic growth.

Additionally, IFCs play a key role in enabling foreign direct investment due to the quality of the services they offer, the suitability of the investment vehicles they accommodate and the tax and regulatory environment they provide.

In this vein, the Trinidad & Tobago IFC has been

engaging Chinese financial institutions to encourage

them to set up operations in the domestic market, to

serve the region and Latin America.

Given long-standing historical trade, geopolitical and

immigration ties with China, we participated in the

China-CELAC forum in November 2016, where we met

with major Chinese banks not only in Beijing, but also in

Shanghai – a leading financial centre, now rivalling New

York, London and Dubai. The Trinidad & Tobago IFC

is maintaining talks with these and other firms with the

intention of hosting a business development mission

to Trinidad and Tobago.

With China’s move to have the Renminbi (RMB)

recognized globally as a major trading currency, we

participated in a conference entitled: "Chinese Renminbi

in the Caribbean: Opportunities for Trade, Aid and

Investment", held in Barbados. This provided some

insight into potential opportunities for Trinidad and

Tobago to become an initial clearing house for RMB.

To provide the necessary support to initiatives to

improve foreign investors’ ease of entry into Trinidad

and Tobago, in January 2017, the Trinidad & Tobago

IFC initiated discussions with a working group

comprising the Chairmen of InvesTT, ExporTT and the

Airports Authority of Trinidad and Tobago, as well as

representatives from both the Immigration and the

Customs & Excise Divisions. The agencies have all

agreed to lend support when and where necessary

to improve this part of the process for potential

investors.

Clear Horizon

We look forward to the next year of operation in which

a number of high-impact deliverables are expected to

materialize. I am confident that following the trajectory

that the Trinidad & Tobago IFC is on, will ensure this

result. I must commend the efforts and commitment of

our line Minister and Ministry in supporting our efforts,

my fellow Board Members, the Management and Staff of

the Company and indeed, all stakeholders alike.

Together, we will stay the course on the road to

diversification.

Chairman

October 24, 2017

12

MANAGEMENT DISCUSSION AND ANALYSIS

FINANCIALMARKETS

DEVELOPMENT

CORPORATESERVICES

BPO/SHARED SERVICES

DEVELOPMENT

The period under review was once again, an active one for the organization, with significant changes being made to the strategies employed by the BPO/Shared Services Development Department particularly, which the company

expects will bring positive results in terms of client acquisition.

Changes to the strategic focus of the Financial Markets Development Department resulted in an outreach

to Chinese financial institutions as well as new research being undertaken to enhance the Company’s

knowledge of developments in the global financial sphere. These include Fintech activities which

will have an impact on how business is conducted in financial markets.

The Trinidad & Tobago IFC is mandated to position

Trinidad and Tobago as a preferred location for F&A

and Banking, Financial Services and Insurance (BFSI)

BPO. Trinidad and Tobago is building its brand on the

international BPO map. To achieve this goal, the Trinidad

& Tobago IFC has developed a focused, two-pronged

strategy to build inward investment in the sector, which

simultaneously targets: (a) financial institutions looking

to establish a captive centre and (b) BPO providers

seeking cost-effective locations. This requires concurrent

progress on several fronts. The specific Strategic

Initiatives addressed this year are described below.

Develop Pipeline of BPO Prospects of

Inward Delegations

The Trinidad & Tobago IFC continues to reach

out to potential clients in the international market

with the aim of developing a pipeline of prospects.

We seek to expose potential clients to our value

proposition through participation at targeted BPO

international conferences and then secure inward

delegations of clients who have a short-term

interest in establishing an F&A BPO business

in Trinidad and Tobago.

13

BPO/SHARED SERVICES DEVELOPMENT


14


Some of the events the Trinidad & Tobago IFC

participated in to support this initiative were:

Internal

As part of the Trinidad & Tobago IFC’s mission to

provide end-to-end facilitation to its clients Trinidad &

Tobago IFC has supported Euphoria Business Solutions

(EBS) to ensure they have maintained their interest in

Trinidad and Tobago as a nearshore location. This was

marked by EBS’s third visit in August 2017. On this

visit, the Company took further steps towards opening

their business which was incorporated in Trinidad and

Tobago in September 2017. They were able to conduct

initial interviews and other business transactions in the

form of opening bank accounts and filing incorporation

documents, for the local arm of their company. Once a

deal is closed between this firm and an end client, they

will start operating and generate employment.

External

The Trinidad & Tobago IFC participated in events

this year with the aim of continuing to build brand

awareness and position Trinidad and Tobago as a

competitively priced location. Both events were hosted

by the Shared Services & Outsourcing Network and

took place during the months of March and June in the

US. Over 35 meetings were held at the two events with

both potential clients and site selection advisors. The

Company continues to acknowledge the importance of

these events to ensure persons in the industry are made

aware of Trinidad and Tobago’s value proposition so

they can be influenced to set up businesses locally.

Other Areas to Develop Pipeline

The Trinidad & Tobago IFC is actively revisiting and

pursuing leads from all events previously attended

(delegations, conferences and summits) to determine

their present level of interest. This information has been

categorized in our database as short and long term

leads for follow up.

The Trinidad & Tobago IFC’s current consultant is

engaged in a project on the Company’s behalf, reaching

out (via phone, LinkedIn and email), to all firms within

the US, Canada and Costa Rica practising F&A BPO,

to educate them on the advantages of expanding

their operations to Trinidad and Tobago. The consultant

was also able to highlight Trinidad and Tobago as an

innovative location in both local and international

media, using the local conglomerate Guardian Holdings

Limited as an example of automation being successfully

implemented to improve efficiencies and customer

service levels in the organization, and without any

consequent headcount loss.

In addition to the international brand building and

client acquisition services of this consultant, Trinidad &

Tobago IFC recently subscribed to powerful software

operated by the Financial Times to assist with these two

objectives. This Foreign Direct Investment (fDi) software

allows the Trinidad & Tobago IFC to receive signals from

any company in the world which has made a public

expression of interest in setting up F&A BPO operations

in the English-speaking Caribbean. The software also

allows Trinidad & Tobago IFC to quickly research how

the country’s outsourcing value proposition compares

to competitor countries, and this independent

information is shared with potential clients trying

to decide on their next location for investment.

The Trinidad & Tobago IFC met with both the

government and private sector in Guyana to promote

Trinidad and Tobago as a hub for all the F&A work soon

to come out of the newfound Guyanese Oil & Gas

sector.

Develop Labour Pool for the Financial Institutions

Support Services (FINeSS) industry

The Trinidad & Tobago IFC offered a bursary to

provide F&A BPO training to 50 selected persons.

This started in July 2017 with two cohorts and will

be completed by 24 October 2017. The training is

intended to prepare persons for a career in the BPO

industry, specifically in the F&A areas. It ensures locals

can compete within the global F&A BPO industry by

providing the selected trainees with both the technical

knowledge and soft skills to operate in this industry

and at an international level.

MANAGEMENT DISCUSSION AND ANALYSIS continued

15

The technical aspect is provided by the ACCA through

their internationally recognized Global Business Services

Certificate and the Professional Soft Skills aspect will be

taught by UWI-Roytec.

The Company has undertaken four “BPO as a career”

sessions this year, where we have been able to inform

persons of the new F&A BPO industry being created,

and about the potential job opportunities that exist in

this field for persons with the right skill sets.

Additionally, the Trinidad & Tobago IFC and The UWI,

entered into a Memorandum of Understanding (MoU)

in July 2017. The principal objective of this MoU is the

creation of a partnership between both parties which

will support the Trinidad & Tobago IFC’s mandate

of ensuring that the local labour supply meets the

requirements of the global businesses being attracted

to Trinidad and Tobago. The UWI will in the near

future begin to offer Professional Soft Skills training as

mandatory workshops for students in its Management

and Accounting programmes.

Development of the Local Industry

Through its collaboration with OSSCL, the Trinidad &

Tobago IFC was able to provide an incentive for the

creation of 200 jobs in Trinidad. This project also has

the added benefit of earning foreign exchange, as these

200 new jobs involve F&A BPO support functions for

territories in the Caribbean & Latin American Region,

and this is billed in US$. The Trinidad & Tobago IFC

recognized a unique opportunity to assist OSSCL in their

business case, as without this incentive to carry down

the cost of doing new work in Trinidad, the new jobs

would have gone to another country.

The Trinidad and Tobago IFC remains committed to

the collaborative approach agreed to by all related

Government agencies, to facilitating incoming investors,

as has been done in other territories with great success.

Already this has borne positive feedback from potential

investors in the pipeline and will be developed where

possible to ensure efficiency and constant inter-agency

communication.

During the year, the Trinidad & Tobago IFC met with

eight local firms headquartered in Trinidad and Tobago,

with a view to showing them the benefits of centralizing

their F&A functions and having those functions provided

right here in Trinidad and Tobago. Some of the firms

are considering it for the medium to long term. The

Trinidad & Tobago IFC will assist these firms by providing

all required support and facilitation services. In keeping

with this thrust to develop a local F&A BPO sector, the

Trinidad & Tobago IFC presented to both the AMCHAM

Board of Directors, as well as to the local members of

the British Chamber, to highlight the benefits to their

member firms of centralizing their F&A functions out

of Trinidad and Tobago.

Visits from these prospective clients reinforced the

importance of having a local, thriving BPO sector in

bolstering investor confidence in Trinidad and Tobago.

Given this fact, the Trinidad & Tobago IFC is also working

with local firms which have the capacity to create

Shared Services centres.

The BPO/Shared Services Development Department is

very positive about Fiscal Year ’17-’18. Several Strategic

Initiatives have been implemented especially in the last

year, to lay the ground work to create the awareness

necessary for placing Trinidad and Tobago top of mind

for investors looking for a new nearshore location.

At this time, there are several clients at different stages

in the pipeline, i.e., those who have just been made

aware of the value proposition our country has

to offer, and others who are in the process of

on-boarding and creating jobs.


International Partnerships and Recognition

In March 2017, Trinidad and Tobago secured its second

consecutive listing in the Global Financial Centres Index

(GFCI 21). Following on from a ranking of 71 out of 87

financial centres, Trinidad and Tobago improved to 60th

out of 88 financial centres. The rating assigned to

Trinidad and Tobago also increased to 615 points. In the

Latin American & Caribbean region, Trinidad and Tobago

moved from the seventh best financial centre to fourth

best behind the Cayman Islands, Bermuda and the

British Virgin Islands. Trinidad and Tobago also recorded

the second largest increase in the region of 11 spots.

Trinidad and Tobago also received its first placement

on the annual list of the world’s top IFCs compiled by

The Banker magazine; placing 54th out of 57 IFCs and

fourth from the Latin American & Caribbean region.

The Banker’s ranking of IFCs is based on data such as

financial market indicators, economic potential and

business environment factors. The ranking focuses on

the level of international business and the value offered

to institutions seeking to expand their international

operations. The placement in this index is an indication

of the potential to attract international financial

institutions to Trinidad and Tobago, potential that

must be fully developed to achieve the benefits

of the Trinidad & Tobago IFC.

The Trinidad & Tobago IFC supported efforts by the

embassy in Washington DC to promote Trinidad and

Tobago as an ideal destination for investment by

participating virtually in a meeting with members of the

Illinois Chamber of Commerce, the Ambassador and a

representative from AMCHAM. During the presentation,

the competitive advantages that make Trinidad and

Tobago the ideal location for interested companies to

establish operations was outlined. The highly skilled

talent pool, competitively priced infrastructure, world-

class technology, pro-business environment and

targeted incentives were highlighted. The Trinidad

& Tobago IFC is committed to working with various

stakeholders to attract foreign direct investment and

achieving the objective of economic diversification.

Risk Capital (SME Exporters’ Fund)

Turning to the local capital market, the Risk Capital

Financing Model was renamed the SME Exporters' Fund

in 2017. This model will provide high-growth exporting

SMEs with access to financing that matches their risk

profile, aiding their expansion and development and

resulting in job creation and additional earning of

foreign exchange.


16


FINANCIAL MARKETS DEVELOPMENT

17

STAYING THE COURSE | BUILDING A FINANCIAL ECOSYSTEM

The Caribbean Development Bank’s (CDB’s)

Conference on Chinese Renminbi (RMB) in the

Caribbean: Opportunities for Trade, Aid and

Investment in Barbados on 10th and 11th July 2017,

provided a timely opportunity for discussions about

how the Caribbean can take advantage of the

willingness of the Chinese government and

its nationals to invest in the Caribbean.

Given that RMB internationalization efforts have

continued apace with the RMB becoming the fifth

most-widely used payment currency in the world and

its addition to the basket of currencies that make up

the Special Drawing Right, the conference sought

to address the question: would the use of the RMB

facilitate increased trade, aid and investment flows

to the Caribbean? The conference explored the

possible opportunities associated with the increased

use of the RMB in the Caribbean. Insights were drawn

from existing examples of RMB use in commercial

trade between the People’s Republic of China and

other countries and how RMB use could enhance

trade facilitation, trade finance, banking and tourism.

Representatives from the CDB, Chinese commercial

banks, the People’s Bank of China, Exim Bank of China

and regional financial institutions made presentations

and participated in panel discussions about various

issues related to the use of the RMB in the Caribbean.

The Fund is designed to be a public-private sector

partnership and the Trinidad & Tobago IFC is engaged

in discussions with potential private sector investors

about participating in the Fund. Meetings were held

with representatives of some local banks, credit

unions and institutional investors with some interest

being expressed in participating in the Fund. The

Commissioner of Co-operatives was also engaged

with the objective of having the Fund listed as a

pre-approved investment for credit unions. The outreach

to representatives of the private sector will continue in

order to secure commitments from investors. When this

is completed, the government will be approached to

provide the required public-sector financing. Once this

is achieved, the Fund will be established, and handed

over to a Fund Manager selected by the private

sector to be managed.

Development of an International Financial Centre

In pursuit of its mandate, discussions were held

with representatives of the Embassy of the People’s

Republic of China in Trinidad and Tobago and Chinese

financial institutions with the aim of attracting them

to the Trinidad & Tobago IFC. These discussions were

expanded upon at the China-CELAC Think Tank Forum

in Beijing from 7th - 8th November 2016, where a

presentation was made to promote the opportunities for

co-operation between China and Trinidad and Tobago.

The positive rankings granted by various world market indexes

validate Trinidad and Tobago as an ideal destination for

international business.

18


Administrative Support

The Corporate Services Department continued

to provide general administrative support to the

organization, encompassing support for the Board;

Human Resource Management; management of the

Company’s insurance portfolio (including the Group

Medical and Life insurance plan); Accounting Services;

Telecommunications Services; Information Technology

Systems; Office Services and Equipment; Courier

Services; and Reception Services, among others.

This year, vacancies created by the resignations

of the Accountant as well as the Accounting Assistant

in June 2017 were quickly filled through a transparent

recruitment process. The Department also assisted

with the recruitment of a temporary Human Resource

Assistant for the BPO/Shared Services Department for

the BPO Bursary project which sought to screen and

identify 50 candidates to participate in a two-month

BPO technical and soft skills training programme.

Training programmes for Trinidad & Tobago IFC

staff were implemented in accordance with the

needs of the organization.

The Records Classification System of both hard

copy and e-versions of records is ongoing. During

the period under review, a data Disaster Recovery

simulation exercise was successfully undertaken and

provided valuable feedback for further strengthening

of procedures. A full IT Audit is proposed for the new

financial year.

Operating procedures for major responsibilities of the

three operational departments of the Trinidad & Tobago

IFC have been prepared. These Operating Procedures

support the approved Enterprise Risk Management

Policy. The Department has begun the process of

reviewing and revising as necessary, procurement

policies and procedures to bring these in line with

the new procurement legislation. Work has also

commenced on a draft Business Continuity Plan for

the organization. All Compliance Reports to the Ministry

of Finance were prepared and submitted on a timely

basis during the year.

IT Support

Every effort is made to keep the Company’s IT

platform as up to date as possible within the means

at the Company’s disposal. Because of these efforts,

a 98% level of availability for services was maintained

during the period. Hardware equipment is consistently

monitored for performance, technical and security

issues to ensure that they are maintained in good

working order. The Trinidad & Tobago IFC engages

technology to its fullest in its communications

processes both internally and externally.

Marketing and Communications

For the period under review, strategic Marketing and

Communications support was provided to the BPO/

Shared Services and Financial Markets Development

Departments, while the Trinidad & Tobago IFC’s

Corporate Communications activities were maintained.


CORPORATE SERVICES

Corporate Communications

In the period under review, the Trinidad & Tobago

IFC published a number of items of collateral

including the 2016 Annual Report; audited

Financials in the press as per compliance standards;

four issues of the Quarterly newsletter; a collated

presentation for China Investment; an advertorial

on the ACCA/GBS Launch; an advertorial

in the Oxford Business Group’s 2017 Trinidad and

Tobago Report; digital Christmas cards; an updated

Corporate Video; an article in Business Trinidad

and Tobago; and a Presentation Skills Workshop

was held for managerial and supervisory staff on

12th and 13th January 2017. The Trinidad & Tobago

IFC’s Marketing and Communications Unit

provided logistics, set-up, speaking notes,

photography, videography as applicable and

general support for sessions such as:

• Trinidad & Tobago IFC/ACCA co-hosted GBS launch

at ICATT’s Annual Conference (October 2016)

• The Trinidad & Tobago IFC’s 6th Annual Meeting

(December 2016) SSOW conference (March 2017)

• MoU signing with the UWI (July 2017)

• SBCS Career Day (11th August 2017)

The Trinidad & Tobago IFC’s Corporate Communications

Plan was reviewed and refreshed with a comprehensive,

strategic digital component which includes social

listening and heightened integration between traditional

and digital marketing. This will enhance the investor lead

generation and conversion capacity of the organization,

and facilitate a higher return on the investment made

in the branding and promotion of Trinidad and Tobago.

Tactical initiatives will be driven by more accurate

data-mining and metrics analysis.

Support for the BPO/Shared Services Department

Ongoing support for this department resulted in a

number of periodic updates to existing collateral

(e.g., Value Proposition). A number of pieces of collateral

were created (e.g., BPO Career Flyer, BPO Facts at

a Glance). The flagship promotional collateral – the

Competitive Advantage Booklet – was completed

and won a 2017 Gold Addy award. It was also converted

into a PowerPoint presentation. It continues to be

updated as necessary.

Other marketing assets, releases, advertorials and creative

briefs were generated throughout the year for various

events/activities (e.g., TTIOS panel discussion, ACCA GBS

launch, eblast emails, a 360 degree photo of the F&A

BPO incubation space, SSON advertisement, ACCA GBS

Bursary, new cases studies, RSM International partner

acquisition promotions, Trinidad & Tobago IFC-branded

versions of Work Permit and Company Registration).

Financial Markets Development Support

In this area, the Trinidad & Tobago IFC augmented

the international marketing consultant Z/Yen’s August

2016 article on Trinidad and Tobago, to ensure it better

reflected Trinidad and Tobago’s position given changes to

the Trinidad & Tobago IFC’s strategic direction. A public

relations plan was developed and implemented regarding

the Trinidad & Tobago IFC’s improved ranking (from 71 to

60) on the Global Financial Centres Index, including

a poster to commemorate the achievement. Support

was also provided in the development of a white paper

on the opportunities for Chinese financial services

firms in Trinidad and Tobago.

Website

The Company maintained its Financial Services Portal

with frequent real-time updates such as: Competitive

Advantage Booklet on site for download; BPO Career

Flyer; Facts at a Glance brochure; Advertorial on

ACCA/GBS Launch; the 2016 Annual Report and the

Quarterly newsletters; uploads of photo galleries

of noteworthy events.

A corporate LinkedIn account was established

for the purpose of promoting the work of the

Trinidad & Tobago IFC. The Company’s Facebook page

has been re-established to complement this. Both

of these social media vehicles were populated with

relevant posts. A Social Media management policy

was developed and a Social Media Review Team

established to support these activities.

19


IN A BUSINESS ENVIRONMENT AS TUMULTUOUS

AS TODAY’S, THESE ARE THE QUALITIES THAT WE,

AS LEADERS IN THE FINANCIAL SECTOR, HAVE

EMBRACED AND NURTURED AS WE STEER THE

COURSE TO STABILITY AND PROSPERITY.

1. Manager, BPO/Shared Services Development presents to Finance and Accounting students.

2. Chairman and Manager, Marketing and Communications at Trinidad & Tobago IFC’s at ICATT Conference Booth.

3. BPO firm STT visits on inward delegation.

4. VP BPO/Shared Services is interviewed at SSON Conference in Dallas, Texas.

5. Co-operation MoU between Trinidad & Tobago IFC and The UWI, St Augustine.

6. VP and Manager, BPO/Shared Services Development at IQPC Conference in Orlando, Florida.

7. Directors and Sta� attend Presentation Skills training programme.

8. BPO firm Euphoria on site visit to potential location for local shared services centre.

9. VP BPO/Shared Services Development speaks at the launch of the ACCA Global Business Services programme.

10. Chairman and VP BPO/Shared Services Development at SSON Conference in Dallas, Texas.

11. Chairman speaks at Chinese RMB Conference in Barbados.

12. 2016 Annual Meeting.

13. BPO Bursary cohort 1.

14. Trinidad & Tobago IFC reaches out to students at SBCS Career Fair.

OurPeople

and Events

1.2.

3.

4.

5.6.

7.8.

9.

10

11.

13.

14.

12.


22

1. Manager, BPO/Shared Services Development presents to Finance and Accounting students.

2. Chairman and Manager, Marketing and Communications at Trinidad & Tobago IFC’s at ICATT Conference Booth.

3. BPO firm STT visits on inward delegation.

4. VP BPO/Shared Services is interviewed at SSON Conference in Dallas, Texas.

5. Co-operation MoU between Trinidad & Tobago IFC and The UWI, St Augustine.

6. VP and Manager, BPO/Shared Services Development at IQPC Conference in Orlando, Florida.

7. Directors and Sta� attend Presentation Skills training programme.

8. BPO firm Euphoria on site visit to potential location for local shared services centre.

9. VP BPO/Shared Services Development speaks at the launch of the ACCA Global Business Services programme.

10. Chairman and VP BPO/Shared Services Development at SSON Conference in Dallas, Texas.

11. Chairman speaks at Chinese RMB Conference in Barbados.

12. 2016 Annual Meeting.

13. BPO Bursary cohort 1.

14. Trinidad & Tobago IFC reaches out to students at SBCS Career Fair.

OurPeople

and Events

1.2.

3.

4.

5.6.

7.8.

9.

10

11.

13.

14.

12.

23

24


GOVERNANCE REPORTS

25

Mr Richard P. Young, Chairman APPOINTED 27TH APRIL, 2016,

REAPPOINTED 16TH DECEMBER, 2016

TO PRESENT

Mr Reynold Ajodhasingh, DirectorAPPOINTED 27TH APRIL, 2016,


TO PRESENT

Mr Peter Clarke, DirectorAPPOINTED 11TH MARCH, 2013,

REAPPOINTED 27TH APRIL 2016 AND

ON 16TH DECEMBER, 2016 TO PRESENT

Ms Inez Sinanan, DirectorAPPOINTED 11TH MARCH, 2013,

REAPPOINTED 27TH APRIL 2016 AND

ON 16TH DECEMBER, 2016 TO PRESENT

THE MEMBERS OF THE BOARD FOR THIS REPORTING PERIOD ARE:

Young, Richard P. Chairman 12 12 0 100% Served entire period

Ajodhasingh, Reynold Director 12 11 1 91% Served entire period

Clarke, Peter Director 12 12 0 100% Served entire period

Sinanan, Inez Director 12 11 1 91% Served entire period

Williams, Ewart Director 12 10 2 83% Served entire period

NAME POSITION NO. OF MEETINGS HELD 1 OCT, 2016 TO 30 SEPT, 2017

NO. OF MEETINGS ATTENDED

NO. OF MEETINGS EXCUSED

%PRESENT

COMMENTS

Table 1: Board of Directors Meetings October 2016 – September 2017.

They are all non-executive Directors. The Board held 12 meetings for the period under review, with the following

attendance rate:

BOARD OF DIRECTORS

Mr Ewart Williams, DirectorAPPOINTED 27TH APRIL, 2016,


TO PRESENT


26


The Committee held three meetings during the year

with full attendance. The Committee met with the

External Auditors to review and approve their approach

and scope of their examination of the financial

statements for the 2016 Financial year, and satisfied

itself that the audited financial statements were free of

material misstatements and presented a fair view of the

financial position of the Company at 30th September,

2016 in accordance with International Financial

Reporting Standards and ensured that the audited

financial statements for the period ending September

30th, 2016 were presented to the Shareholders at the

Annual Meeting on December 16, 2016.

The Committee has already begun its work on the 2017

Audit and will have completed its reviews and meetings

with the external Auditors in time to satisfy itself that

the audited financial statements for inclusion in the

2017 Annual Report are free of material misstatements

and present a fair view of the financial position of the

Company at 30th September, 2017 in accordance with

International Financial Reporting Standards.

The Committee also reviewed and reported to the Board

on the IT Disaster Recovery exercise conducted in July

2017. The data recovery itself took four hours for full

restoration in an ideal environment. It was not possible

to simulate full disaster scenarios at this time. Further

recommendations were made by the Committee for a

full IT Audit to be undertaken by the Company and for

fraud and cybersecurity scenarios to be examined.

The Enterprise Risk Management Policy and Procedures,

prepared in November 2014 were reviewed to allow

the Committee to fully understand its role in risk

management for the Company and to recommend

any changes if necessary. No changes have been

made to date.

BOARD COMMITTEES

They provide oversight for the operations of the

Company and report to the Board on their work and

areas of oversight. In addition to specific reports, the

minutes of the Committee meetings are tabled for

review and noting by the full Board.

On January 18th, 2017 all Directors together with the

Vice President Corporate Services and the Accountant,

attended a Corporate Governance workshop hosted

by the Ministry of Finance for all State Enterprises, to

share the requirements for good governance with State

Boards and relevant executives.

Audit, Risk and Compliance Committee

Members:

Ewart Williams, Board Member, Chair

Peter Clarke, Board Member

Terms of Reference:

The purpose of the Audit, Risk and Compliance

Committee of the Board shall be to assist the

Board in monitoring:

• The periodic financial reports and other financial

information provided by the Company to the

Board, any governmental body or the public;

• The Company’s systems of internal controls

regarding finance, accounting, financial reporting

and financial compliance that Management

and the Board have established;

• The Company’s auditing, accounting and financial

reporting processes generally; and

• The risk management, compliance and

control activities of the Trinidad & Tobago IFC.

Consistent with its function, the Committee should

encourage continuous improvement of and should

foster adherence to the Company’s policies,

procedures and practices at all levels.

There are four (4) constituted Committees of the Board – the Audit, Risk and Compliance Committee, the Corporate Governance, Strategy and Human Resource Committee, the Finance and investment Committee and the Tenders Committee.


Corporate Governance, Strategy and Human Resource Committee

Members:

Inez Sinanan, Board Member, Chair

Richard P. Young, Board Member

Terms of Reference:

The purpose of the Corporate Governance, Strategy and

Human Resource Committee of the Board shall be:

• To ensure compliance by the Directors and

Executive Management of the Company with the

requirements of the Corporation Sole, the

Companies Act, ethical standards consistent with

their fiduciary responsibility and to review and

monitor implementation of the Strategic Plan

of the Company.

• To assist the Board in its responsibilities for an

effective organizational structure and competitive

human resources and compensation policies

and practices for the Company.

The Committee held six (6) meetings during the year.

These meetings included a review of the Strategic

Plan for discussion with the full Board, and subsequent

submission to the Ministry of Finance together with the

Annual Budget proposal, as required. The terms and

conditions of employment for all employees were also

reviewed by the Committee and recommendations

made to the Board for implementation. Several

Human Resource issues and concerns expressed by

staff to the Committee through the Vice President

Corporate Services, were raised with the Board as well

as recommendations made with a view to resolution of

those issues, especially in the context of the absence

of an appointed Chief Executive Officer. Issues related

to compensation were directed to the line Ministry of

Finance and a response is awaited.

Initial interviews were held to fill the position of

Chief Executive Officer which has been vacant since

July 2016. A decision is pending.

27


Of significance in the work of the Committee this year,

was the revision of the Company’s By-Laws which

had inadvertently remained in draft form since the

incorporation of the Company in November 2008.

The revised By-Laws were approved by Shareholders

resolution on 21st July, 2017 and enacted by the

Board on 15th August, 2017.

The Committee has also reviewed the new

Procurement legislation with a view to implementing

the further changes in the By-Laws that must be

made to conform with the legislation.

Finance and Investment Committee

Members:

Reynold Ajodhasingh, Board Member, Chair

Richard P. Young, Board Member

Terms of Reference:

The Finance and Investment Committee shall:

• Assist the Board in setting the investment policy

to be adopted for the management of the

Company’s funds as approved by the Board and

in compliance with any guidelines established by

the Minister of Finance (Corporation Sole);

• Ensure that the investment of Company funds is

conducted in accordance with the investment

policy and best practice.

• Regularly monitor and review the finances

of the Company.

The Committee held two official meetings during the

year with 100% attendance, however monthly reviews

of the Management accounts were conducted by the

Committee to ensure the accuracy and robustness of

the Monthly Management accounts presented to the

Board. A scan of the local investment environment was

undertaken to try to maximize the interest rate obtained

on the Company’s investment account.

Tenders Committee

Members:

Inez Sinanan, Board Member, Chair

Terms of Reference

The Tenders Committee shall, in accordance with the

levels of authority:

• Approve the acquisition of goods and services

above $500,000.00

• Ensure that Value for Money, Transparency and

Accountability are maintained at all times within

the procurement process of the organization.

• Make recommendations to the Board of Directors

on the acquisition of goods and services within its

authority level.

The Committee, with the approval of the Minister

of Finance, is constituted with one Board member

as Chair of the Committee, with the proviso that all

decisions of the Committee on Tenders issued by

the Company, must be brought to the Board for

final decision.

The Committee held two meetings during the year

to make recommendations to the Board on tenders

issued by the Company that fell within the purview of

the Committee. In addition to this however, as part of

its oversight responsibility, the Committee presented

quarterly reports to the Board on all contracts and

purchase orders entered into by the Company, even

those falling below the threshold for involvement of the

Tenders Committee. This oversight ensures transparency

and full reporting to the Board on purchases and

contracts entered into by management.

The Committee has begun to review the new

Procurement legislation with a view to implementing

the changes that must be made at the Committee

level to conform with the legislation.

28

29


The Directors are pleased to present their report to

the Shareholders together with the Audited Financial

Statements for the year ended 30th September, 2017.

The Audit, Risk and Compliance Committee of the

Board has reviewed and assessed the financial reporting

processes and controls that led to the compilation of

the financial statements and have found them to be

appropriate. The Committee recommended to the

Board that the Financial Statements be approved and

the Board subsequently approved the audited Financial

Statements and the 2017 Annual Report which will

be presented to the Shareholders at the forthcoming

Annual Meeting.

The Directors confirm that to the best of their

knowledge and belief the Audited Financial Statements

are complete and in conformity with International

Financial Reporting Standards and appropriate

accounting principles and present a true and fair

view of the financial statement of the Company.

DIRECTORS' REPORT

Disclosure of Interest of Directors and

Officers in any Material Contract:

At no time during the current financial year, has any

Director or Officer been a party to a material contract

or a proposed material contract with the Company or

been a Director or Officer of any entity or had material

interest in any entity that was a party to a material

contract or proposed material contract with the

Company.

Directors:

All Directors retired and were reappointed by the

Corporation Sole on 16th December, 2016 to serve

until the next Annual Meeting of the Company.

Auditors:

The Auditors, Deloitte and Touche were re-appointed

on 16th December, 2016 for the fiscal year ending

30th September, 2017. Being eligible, they have

offered themselves for reappointment for the

ensuing fiscal year.

Director

Director

Director

Director

30


THE

TRINIDAD & TOBAGO IFC

FINANCIAL STATEMENTS


31

Statement of management's responsibilities

Management is responsible for the following:

• Preparing and fairly presenting the accompanying financial statements of Trinidad and Tobago International Financial Centre Management Company Limited, (‘the Company’) which comprise the statement of financial position as at September 30, 2017, the statements of profit or loss and other comprehensive income, change in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information;

• Ensuring that the Company keeps proper accounting records;• Selecting appropriate accounting policies and applying them in a consistent manner;• Implementing, monitoring and evaluating the system of internal control that assures security of the

Company’s assets, detection/prevention of fraud, and the achievement of the Company’s operational efficiencies;

• Ensuring that the system of internal control operated effectively during the reporting period;• Producing reliable financial reporting that comply with laws and regulations; and • Using reasonable and prudent judgement in the determination of estimates.

In preparing these audited financial statements, management utilised the International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances.

Nothing has come to the attention of management to indicate that the Company will not remain a going concern for the next twelve months from the reporting date; or up to the date; the accompanying financial statements have been authorised for issue, if later.

Management affirms that it has carried out its responsibilities as outlined above.

Chairman

November 21, 2017

Vice President Corporate Services

November 21, 2017


32

Independent auditor's report to the shareholders ofTrinidad and Tobago International Financial Centre Management Company Limited

Report on the Audit of the Financial Statements

Opinion We have audited the financial statements of Trinidad and Tobago International Financial Centre Management Company Limited (the ‘Company’), which comprise the statement of financial position as at September 30, 2017, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at September 30, 2017, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial statementsManagement is responsible for the other information. The other information obtained at the date of this auditor’s report comprises the information included in the annual report, but does not include the financial statements and our auditors report thereon.

Our opinion, on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with the audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Continues on next page

33


Independent auditor's report to the shareholders ofTrinidad and Tobago International Financial Centre Management Company Limited (continued)

Auditor's responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From previous page


34

Statement of financial position(Expressed in Trinidad and Tobago dollars)

As at September 30, Notes 2017 2016 $ $ASSETS Non-current assets Property plant and equipment 4 1,112,277 1,462,014Deferred tax asset 9 27,155 13,441

Total non-current assets 1,139,432 1,475,455 Current assets Tax receivable 9,421 9,421Other receivables 5 178,523 152,925Cash in hand and at bank 6 39,374,066 28,857,760

Total current assets 39,562,010 29,020,106

Total assets 40,701,442 30,495,561 EQUITY AND LIABILITIES Equity Stated capital 7 100 100Retained earnings 391,927 229,523

Total equity 392,027 229,623 Current liabilities Tax payable 34,932 36,602Other liabilities 8 1,023,386 267,950Deferred operating subventions 10 39,251,097 29,961,386

Total current liabilities 40,309,415 30,265,938

Total equity and liabilities 40,701,442 30,495,561

The notes set out on pages 38 to 59 form an integral part of these financial statements.

On November 21, 2017 the Board of Directors of Trinidad and Tobago International Financial Centre Management Company Limited authorised these financial statements for issue.


35

Statement of profit or loss and other comprehensive income(Expressed in Trinidad and Tobago dollars)

Year ended September 30, Notes 2017 2016 $ $ Government subventions 10 10,399,015 12,931,602 Interest income 242,820 200,075 Foreign exchange gain 25,492 14,159 Disposal of assets (loss)/gain (692) 23,824 Operating and administrative expenses 11 (10,423,815) (12,969,585) Profit for the year before taxation 242,820 200,075 Taxation 12 (80,416) (25,082)

Profit for the year after taxation 162,404 174,993 Other comprehensive income – –

Total comprehensive income 162,404 174,993



36

Statement of changes in equity for the year ended September 30, 2017(Expressed in Trinidad and Tobago dollars)

Stated capital Retained earnings Total

$ $ $Balance at October 1, 2016 100 229,523 229,623 Total comprehensive income – 162,404 162,404

Balance at September 30, 2017 100 391,927 392,027

Balance at October 1, 2015 100 54,530 54,630 Total comprehensive income – 174,993 174,993

Balance at September 30, 2016 100 229,523 229,623



37

Statement of cash flows(Expressed in Trinidad and Tobago dollars)

Year ended September 30, Notes 2017 2016 $ $Cash flows from operating activities Profit before taxation 242,820 200,075Adjustment for: Operating subventions released to the statement of profit or loss 10 (10,399,015) (12,931,602) Loss/(gain) on disposal of fixed assets 692 (23,824) Depreciation 4 369,363 699,190 Operating loss before working capital changes (9,786,140) (12,056,161) (Increase)/decrease in other receivables (25,598) 56,610 Increase/(decrease) in other payables 755,436 (707,189) Cash used in operations (9,056,302) (12,706,740) Taxation paid (95,800) (109,673) Net cash flows used in operating activities (9,152,102) (12,816,413) Cash flows from investing activities Purchase of property, plant and equipment 4 (20,318) (151,717)Proceeds from sale of fixed assets – 309,541Net cash flows (used in)/generated from investing activities (20,318) 157,824 Cash flows from financing activities Government subventions 10 19,688,726 22,199,048

Net cash flows generated from financing activities 19,688,726 22,199,048 Net increase in cash and cash equivalents 10,516,306 9,540,459 Cash and cash equivalents at beginning of year 28,857,760 19,317,301

Cash and cash equivalents at end of year 6 39,374,066 28,857,760



38

Notes to the financial statementsfor the year ended September 30, 2017(Expressed in Trinidad and Tobago dollars)

1. Company information The Trinidad and Tobago International Financial Centre Management Company Limited (the ‘Company’)

was incorporated in the Republic of Trinidad and Tobago under the Companies’ Act 1995 on November 6, 2008. The Company started activities on August 21, 2009 and was established by the Government of the Republic of Trinidad and Tobago to manage the implementation and operations of the Trinidad and Tobago International Financial Centre. Its registered office is situated at 15th Floor Tower D, International Waterfront Centre, No. 1 Wrightson Road, Port of Spain. The Company currently has thirteen (13) employees.

The Company receives quarterly subventions from the Government of the Republic of Trinidad and Tobago which safeguards its ability to continue as a going concern.

2. Summary of significant accounting policies and estimates2.1 Basis of preparation These financial statements have been prepared on a historical basis and are expressed in Trinidad and

Tobago dollars.

2.2 Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting

Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

2.3 Significant accounting policiesa) Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation.

Depreciation is provided on a straight line basis at the following rates which are estimated to write off the cost of the assets over their estimated useful lives.

Office equipment 25% Motor vehicles 20% Furniture and fixtures 10% Computers Leasehold Improvements 10%

b) Other receivables Other receivables are carried at anticipated realisable value.

c) Cash and cash equivalents For the purpose of the statement of cash flows, cash and cash equivalents comprise cash in hand,

deposits held on call with banks, deposits with maturity dates which are within three (3) months when acquired and investment in money market instruments, net of bank overdrafts.

d) Other payables Other payables are a present obligation arising from past events which is expected to result in

an outflow of resources embodying economic benefits. Trade and other payables are recognised initially at fair value.


39


2. Summary of significant accounting policies and estimates (continued)2.3 Significant accounting policies (continued)

e) Taxation Current income tax Current income taxes are accounted for on the basis of tax effect accounting using the liability

method. The provision for current income taxes is based on estimated taxable income. This provision excludes the tax effects of certain timing differences when there is reasonable evidence that these timing differences will not reverse for some considerable time ahead and there is no indication that, after this period, these timing differences are likely to reverse.

Deferred income taxes Deferred income tax is provided in full, using the liability method, on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of the unused tax credits and unused tax losses can be utilised. Currently enacted tax rates are used in the determination of deferred income tax.

The carrying amount of deferred income tax assets is reviewed at the reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to all or parts of the deferred income tax asset to be utilised.

f) Foreign currency transaction Monetary assets and liabilities denominated in foreign currencies are expressed in Trinidad and

Tobago dollars at rates of exchange ruling at the financial year end. All revenue and expenditure transactions denominated in foreign currencies are translated at mid-exchange rate and the resulting profits and losses on exchange from these trading activities are dealt with in the Statement of profit or loss.

g) Government subventions Government subventions are recognised where there is reasonable assurance that the subvention

will be received and all attached conditions will be complied with. When the subvention relates to an expense item, it is recognised as income over the period necessary to match the subvention on a systematic basis to the cost that it is intended to compensate. Where the subvention relates to an asset it is recognised as deferred income and released to income in equal amounts over the useful life of the related asset. There is a commitment from the Government of the Republic of Trinidad and Tobago to continue funding the operations of the Trinidad and Tobago International Financial Centre Management Company Limited. Government subventions are received on a quarterly basis.

h) Financial instruments Financial assets and financial liabilities are recognised when an entity becomes a party to the

contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value through profit or loss and recognised immediately in profit or loss.


40


2. Summary of significant accounting policies and estimates (continued)2.3 Significant accounting policies (continued)

i) Comparative information Where necessary, comparative figures have been adjusted to conform with changes in presentation

in the current year. These changes have no effect on the profit after tax of the Company for the previous year.

2.4 Use of estimates The preparation of financial statements in conformity with International Financial Reporting Standards

requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from the estimates.

Useful lives and residual values of property, plant and equipment The estimates of useful lives as translated into depreciation rates are detailed in the property, plant

and equipment policy below. These rates and the residual lives of the assets are reviewed annually taking cognizance of the forecasted commercial and economic realities and through benchmarking of accounting treatments within the industry.

Income taxes The Company is subject to income taxes locally. There are several transactions and calculations for

which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact on the income tax and deferred tax provisions in the period in which such determination is made.

Contingent liabilities Management applies its judgement to the facts and advice it receives from its attorneys, advocates and

other advisors in assessing if an obligation is probable, more likely than not, or remote. Such judgement is used to determine if the obligation is recognised as a liability or disclosed as a contingent liability.


41


3. Application of new and revised International Financial Reporting Standards (‘IFRS’)3.1 New IFRS and amendments to IFRS that are mandatorily effective for the current year In the current year, the Company has applied a number of amendments to IFRS and new Interpretations

issued by the International Accounting Standards Board (‘IASB’) that are mandatorily effective for an accounting period that begins on or after October 1, 2016.

• IFRS 14 Regulatory Deferral Accounts IFRS 14 specifies the accounting for regulatory deferral account balances that arise from rate-

regulated activities. The Standard is available only to first-time adopters of IFRSs who recognised regulatory deferral account balances under their previous GAAP. IFRS 14 permits eligible first-time adopters of IFRSs to continue their previous GAAP rate-regulated accounting policies, with limited changes, and requires separate presentation of regulatory deferral account balances in the statement of financial position and statement of profit or loss and other comprehensive income. Disclosures are also required to identify the nature of, and risk associated with, the form of rate regulation that has given rise to the recognition of regulatory deferral account balances.

The directors of the Company do not anticipate that the application of these amendments will have a significant impact on the Company’s financial statements.

• Amendments to IFRS 11 Accounting for Acquisitions of Interest in Joint Operations The amendments to IFRS 11 provide guidance on how to account for the acquisition of a joint

operation that constitutes a business as defined in IFRS 3 Business Combinations. Specifically, the amendments state that the relevant principles on accounting for business combinations in IFRS 3 and other standards (e.g. IAS 36 Impairment of Assets regarding impairment testing of a cash-generating unit to which goodwill on acquisition of a joint operation has been allocated) should be applied. The same requirements should be applied to the formation of a joint operation if and only if an existing business is contributed to the joint operation by one of the parties that participate in the joint operation.

A joint operator is also required to disclose the relevant information required by IFRS 3 and other standards for business combinations.

The amendments to IFRS 11 apply prospectively for annual periods beginning on or after January 1, 2016. The directors of the Company do not anticipate that the application of these amendments to IFRS 11 will have a material impact on the Company’s financial statements.


42


3. Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)3.1 New IFRS and amendments to IFRS that are mandatorily effective for the current year (continued)

• Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortization

The amendments to IAS 16 prohibit entities from using a revenue-based depreciation method for items of property, plant and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not an appropriate basis for amortisation of an intangible asset. This presumption can only be rebutted in the following two limited circumstances;a) when the intangible asset is expensed as a measure of revenue; or

b) when it can be demonstrated that revenue and consumption of the economic benefits of the intangible asset are highly correlated.

The amendments apply prospectively for annual periods beginning on or after January 1, 2016. Currently, the Company uses the straight-line method for depreciation and amortisation of its property, plant and equipment, and intangible assets respectively. The directors of the Company believe that the straight-line method is the most appropriate method to reflect the consumption of economic benefits inherent in the respective assets and accordingly, the directors of the Company do not anticipate that the application of these amendments to IAS 16 and IAS 38 will have a material impact on the Company’s financial statements.

• Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants Amends IAS 16 Property, Plant and Equipment and IAS 41 Agriculture to:

a) include 'bearer plants' within the scope of IAS 16 rather than IAS 41, allowing such assets to be accounted for as property, plant and equipment and measured after initial recognition on a cost or revaluation basis in accordance with IAS 16;

b) introduce a definition of 'bearer plants' as a living plant that is used in the production or supply of agricultural produce, is expected to bear produce for more than one period and has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales;

c) clarify that produce growing on bearer plants remains within the scope of IAS 41.


43



• Amendments to IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation Exception

Amends IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011) to address issues that have arisen in the context of applying the consolidation exception for investment entities by clarifying the following points:

a) The exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value.

b) A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity.

c) When applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries.

d) An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.

• Annual Improvements 2012 – 2014 The Annual Improvements to IFRS 2012-2014 include a number of amendments to various IFRS,

which are summarised below.

IFRS 5 — Adds specific guidance in IFRS 5 for cases in which an entity reclassifies an asset from held for sale to held for distribution or vice versa and cases in which held-for-distribution accounting is discontinued.

IFRS 7 — Additional guidance to clarify whether a servicing contract is continuing involvement in a transferred asset, and clarification on offsetting disclosures in condensed interim financial statements.

IAS 19 — Clarify that the rate used to discount post-employment benefit obligations should be determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The assessment of the depth of for high quality corporate bonds should be at the currency level (i.e. the same currency as the benefits are to be paid). For currencies for which there is no deep market in such high quality corporate bonds, the market yields at the end of the reporting period on government bonds denominated in that currency should be used instead.

IAS 34 — Clarify the meaning of 'elsewhere in the interim report' and require a cross-reference. The directors of the Company do not anticipate that the application of these amendments will

have a significant impact on the Company’s financial statements.


44



• Amendment to IAS 1: Disclosure Initiative Amendments were made to IAS 1 Presentation of Financial Statements to address perceived

impediments to preparers exercising their judgement in presenting their financial reports by making the following changes:

a) clarification that information should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to all parts of the financial statements, and even when a standard requires a specific disclosure, materiality considerations do apply;

b) clarification that the list of line items to be presented in these statements can be disaggregated and aggregated as relevant and additional guidance on subtotals in these statements and clarification that an entity's share of OCI of equity-accounted associates and joint ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified to profit or loss;

c) additional examples of possible ways of ordering the notes to clarify that understand-ability and comparability should be considered when determining the order of the notes and to demonstrate that the notes need not be presented in the order so far listed in paragraph 114 of IAS 1.

The directors of the Company do not anticipate that the application of these amendments will

have a significant impact on the Company’s financial statements.

• Amendments to IAS 27: Equity Method in Separate Financial Statements Amendments were made to IAS 27 Separate Financial Statements to permit investments in

subsidiaries, joint ventures and associates to be optionally accounted for using the equity method in separate financial statements. Consequently, an entity is permitted to account for these investments either:(i) at cost; or(ii) in accordance with IFRS 9 (or IAS 39); or(iii) using the equity method.

This is an accounting policy choice for each category of investment.


45


3. Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)3.2 New and revised IFRS in issue but not yet effective

The Company has not applied the following new and revised IFRS that have been issued but are not yet effective:• IFRS 9 Financial instruments2

• IFRS 15 Revenue from Contracts with Customers2

• IFRS 16 Leases3

• Amendments to IAS 12 Recognition of Deferred Tax Assets Unrealised Losses1

• Amendments to IAS 7 Disclosure initiative1 • Amendments to IFRS 2 Classification and Measurement of Share-based2

• Amendments to IFRS Annual improvements to IFRS 2014-20161

• IFRIC 22 Foreign currency transactions and advance Considerations2

• IFRIC 23 Uncertainty over income tax treatments3

• Amendments to IAS 40 Transfers of investment property2

• IFRS 17 Insurance Contracts4

1 Effective for annual periods beginning on or after January 1, 2017, with earlier application permitted.2 Effective for annual periods beginning on or after January 1, 2018, with earlier application permitted.3 Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted.4 Effective for annual periods beginning on or after January 1, 2021, with earlier application permitted.


46


3. Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)3.2 New and revised IFRS in issue but not yet effective (continued)

• IFRS 9 Financial InstrumentsIFRS 9 issued in November 2009 introduced new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition, and in November 2013 to include the new requirements for general hedge accounting. Another revised version of this IFRS was issued in July 2014 mainly to include a) impairment requirements for financial assets and b) limited amendments to the classification and measurement requirements by introducing ‘fair value through other comprehensive income’ (FVTOCI) measurement category for certain simple debt instruments.

Key requirements of IFRS 9:– all recognised financial assets that are within the scope of IAS 39 Financial Instruments:

Recognition and Measurement are required to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets, and that have contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured at FVTOCI. All other debt investments and equity investments are measured at their fair value at the end of the subsequent accounting periods. In addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss.

– with regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss.

– in relation to the impairment of financial assets, IFRS 9 requires an expected loss model, as opposed to an incurred loss model under IAS 39. The expected loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognised.


47



• IFRS 9 Financial Instruments (continued)– the new general hedge accounting requirements retain three types of hedge accounting

mechanisms currently available in IAS 39. Under IFRS 9, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an ‘economic relationship’. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced.

The directors of the Company anticipate that the application of IFRS 9 in the future may have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities. However it is not practicable to provide a reasonable estimate of the effect of IFRS 9 until the Company undertakes a detailed review.

• IFRS 15 Revenue from Contracts with CustomersIn May 2014, IFRS 15 was issued which establishes a single comprehensive model for entities to use in accounting for revenue from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction Contracts and the related Interpretations when it becomes effective.

The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Standard introduces a 5-step approach to revenue recognition:

– Step 1: Identify the contract(s) with a customer– Step 2: Identify the performance obligations in the contract– Step 3: Determine the transaction price– Step 4: Allocate the transaction price to the performance obligations in the contract– Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios. Furthermore, extensive disclosures are required by IFRS 15.


48



• IFRS 15 Revenue from Contracts with Customers (continued)On June 20, 2016, the IASB issued amendments in Clarifications to IFRS 15 'Revenue from Contracts with Customers' which addressed three of the five topics identified (identifying performance obligations, principal versus agent considerations, and licensing) and provide some transition relief for modified contracts and completed contracts. The IASB concluded that it was not necessary to amend IFRS 15 with respect to collectability or measuring non-cash consideration. In all its decisions, the IASB considered the need to balance helping entities with implementing IFRS 15 and not disturbing the implementation process.

The directors of the Company anticipate that the application of IFRS 15 in the future may have a material impact on the amounts reported and disclosures made in the Company’s financial statements. However, it is not practicable to provide a reasonable estimate of the effect of IFRS 15 until the Company performs a detailed review.

• IFRS 16 LeasesIFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.

The directors of the Company anticipate that the application of IFRS 16 in the future may have a material impact on the amounts reported and disclosures made in the Company’s financial statements. However, it is not practicable to provide a reasonable estimate of the effect of IFRS 16 until the Company performs a detailed review.

• Amendments to IAS 12, (Recognition of Deferred Tax Assets for Unrealised Losses)Unrealised losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use.

The carrying amount of an asset does not limit the estimation of probable future taxable profits.Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences.

An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type.



49



• Amendments to IAS 7, (Disclosure Initiative)Amends IAS 7 Statement of Cash Flows to clarify that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities.


• Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)Amendments to IFRS 2 Share-based Payment clarify the standard in relation to the accounting for cash-settled share-based payment transactions that include a performance condition, the classification of share-based payment transactions with net settlement features, and the accounting for modifications of share-based payment transactions from cash-settled to equity-settled.


• Annual Improvements 2014-2016IFRS 1 - Deletes the short-term exemptions in paragraphs E3–E7 of IFRS 1, because they have now served their intended purpose.

IFRS 12 - Clarifies the scope of the standard by specifying that the disclosure requirements in the standard, except for those in paragraphs B10–B16, apply to an entity’s interests listed in paragraph 5 that are classified as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

IAS 28 - Clarifies that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that is held by an entity that is a venture capital organisation, or other qualifying entity, is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition.

• IFRIC 22 Foreign Currency Transactions and Advance ConsiderationThe interpretation addresses foreign currency transactions or parts of transactions where:• there is consideration that is denominated or priced in a foreign currency;• the entity recognises a prepayment asset or a deferred income liability in respect of that

consideration, in advance of the recognition of the related asset, expense or income; and• the prepayment asset or deferred income liability is non-monetary.

The Interpretations Committee came to the following conclusion:• The date of the transaction, for the purpose of determining the exchange rate, is the date of

initial recognition of the non-monetary prepayment asset or deferred income liability.• If there are multiple payments or receipts in advance, a date of transaction is established for

each payment or receipt.


50



• IFRIC 23 Uncertainty over Income Tax TreatmentsThe interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. It specifically considers:• Whether tax treatments should be considered collectively• Assumptions for taxation authorities' examinations• The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits

and tax rates• The effect of changes in facts and circumstances.

• Amendments to IAS 40, Transfer of investment propertyThe amendments to IAS 40 Investment Property:• Amends paragraph 57 to state that an entity shall transfer a property to, or from, investment

property when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does not constitute evidence of a change in use.

• The list of examples of evidence in paragraph 57(a) – (d) is now presented as a non-exhaustive list of examples instead of the previous exhaustive list.

• IFRS 17, Insurance ContractsIFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of January 1, 2021.


51


4. Property, plant and equipment Leasehold Motor Furniture Computer 2017 improvements Equipment Vehicles & Fixtures Software Total

$ $ $ $ $ $Cost

At October 1, 2016 905,792 1,822,901 286,639 302,113 437,041 3,754,486Additions – 6,227 – 14,091 – 20,318Disposals – (1,299) – – – (1,299)

At September 30, 2017 905,792 1,827,829 286,639 316,204 437,041 3,773,505 Accumulated depreciation

At October 1, 2016 193,267 1,540,829 72,823 92,840 392,713 2,292,472Disposals – (607) – – – (607)Depreciation 90,579 154,632 57,235 31,356 35,561 369,363

At September 30, 2017 283,846 1,694,854 130,058 124,196 428,274 2,661,228

Net book value

At September 30, 2017 621,946 132,975 156,581 192,008 8,767 1,112,277

2016 Cost

At October 1, 2015 905,792 1,808,036 1,259,599 295,922 437,041 4,706,390Additions – 103,008 – 48,709 – 151,717Disposals – (88,143) (972,960) (42,518) – (1,103,621)

At September 30, 2016 905,792 1,822,901 286,639 302,113 437,041 3,754,486 Accumulated depreciation

At October 1, 2015 102,688 1,299,032 621,634 74,524 313,309 2,411,187Disposals – (88,143) (713,876) (15,886) – (817,905)Depreciation 90,579 329,940 165,065 34,202 79,404 699,190

At September 30, 2016 193,267 1,540,829 72,823 92,840 392,713 2,292,472

Net book value

At September 30, 2016 712,525 282,072 213,816 209,273 44,328 1,462,014


52


5. Other receivables 2017 2016 $ $

Prepaid Asset 17,582 –Prepayment 160,941 152,925

178,523 152,925

6. Cash in hand and at bank For the purpose of the cash flow statement, the cash and cash equivalents comprise the following:

2017 2016 $ $

Cash in hand – TTD 6,000 6,000Cash in hand – Non TTD 17,911 13,167Cash at bank 4,311,068 1,063,310Mutual Fund – Interest rate 2017: 0.9% (2016: 0.8%) 25,039,087 27,775,283Fixed Deposit – Interest rate 2017: 1% 10,000,000 –

39,374,066 28,857,760

7. Stated capital 2017 2016 $ $Authorised: Unlimited ordinary shares of no par value

Issued and paid: 10 Ordinary shares @ $10 each 100 100

8. Other liabilities 2017 2016 $ $

Accruals 299,135 258,605Other payables 724,251 9,345

1,023,386 267,950

Other payables relate mainly to the Company’s decision to begin accruing for provision for gratuity commencing October 1, 2016. The amount shown for the current year represents the balance after payouts.


53


9. Deferred taxThe deferred tax liability arose as follows: 2017 2016

$ $Carrying value of property, plant & equipment 1,112,277 1,462,014Tax value of property, plant and equipment (1,220,899) (1,515,778) Temporary difference (108,622) (53,764) Deferred tax asset (27,155) (13,441)

2017 2016 $ $

Movement in deferred tax Balance at start of year (13,441) 50,251Credit to profit and loss (Note 12.1) (13,714) (63,692)

Balance at end of year (27,155) (13,441)

10. Deferred operating subventionsGovernment subventions totalling $19,688,726 were received during the financial year and the balance at September 30, is shown as deferred operating subventions in the Statement of Financial Position. The subvention income is recognised in the statement of profit or loss as expenses are incurred.

2017 2016 $ $

Beginning balance 29,961,386 20,693,940

Funds received from the Government of the

Republic of Trinidad and Tobago 19,688,726 22,199,048

Amounts transferred to statement of profit or loss (10,399,015) (12,931,602)

39,251,097 29,961,386


54


11. Operating and administrative expenses 2017 2016 $ $

Audit fees 50,625 50,800

Bank charges 11,981 14,238

BPO/Shared Services development 2,012,986 1,467,775

Financial Markets development 102,744 702,438

Marketing and communications 1,132,646 1,710,027

Depreciation 369,363 699,190

Directors' fees 396,000 433,767

Group health and life 68,273 175,054

Insurance 74,825 111,598

Internet charges 31,299 30,507

Janitorial services 69,519 63,274

Legal & professional fees 118,625 98,063

Meals & entertainment 3,605 42,284

Motor vehicle expenses 10,028 47,749

Office expenses 276,548 224,430

Penalty 214 –

Repairs and maintenance 185,506 96,517

Salaries and related staff cost 5,310,201 6,762,572

Security 34,565 33,999

Subscriptions 27,993 69,584

Telephone expenses 136,269 135,719

10,423,815 12,969,585


55


12. Taxation12.1 Tax charge for the period is made up as follows: 2017 2016 $ $ Over accrual - corporation tax, business levy & green fund – (47,797) Deferred tax expense (Note 9) (13,714) (63,692) Green Fund Levy 32,381 33,684 Corporation Tax 61,749 102,887

80,416 25,082

12.2 Reconciliation of applicable tax charge to effective tax charge: Profit before tax 242,820 200,075 Tax at the rate of 25% 60,705 50,019 Expenses not allowable for taxation 12,928 14,538 Expenses allowable for taxation (25,425) (31,304) Effect of timing differences 13,541 69,634 Other differences (13,714) (63,692) Green fund levy 32,381 33,684 Over accrual of prior period expense – (47,797)

80,416 25,082

13. Related party transactionsThe following represents transactions with related parties:Key management compensation 2017 2016 $ $Remuneration of management and directors 2,189,370 3,949,209

These amounts above are included in salaries and directors’ fees under administrative expenses.


56


14. Financial risk management14.1 Categorization

Financial Non-financial assets and assets and Equity liabilities liabilities instrument Total $ $ $ $As at September 30, 2017

ASSETS

Property, plant and equipment – 1,112,277 – 1,112,277

Deferred tax asset – 27,155 – 27,155

Other receivables – 178,523 – 178,523

Tax receivable 9,421 – – 9,421

Cash at bank and in hand 39,374,066 – – 39,374,066

Total assets 39,383,487 1,317,955 – 40,701,442

EQUITY AND LIABILITIES

Shareholders’ equity

Stated capital – – 100 100

Retained earnings – – 391,927 391,927

Liabilities

Deferred operating subvention – 39,251,097 – 39,251,097

Tax payable 34,932 – – 34,932

Other liabilities – 1,023,386 – 1,023,386

Total equity and liabilities 34,932 40,274,483 392,027 40,701,442


57


14. Financial risk management (continued)14.1 Categorization (continued)

Financial Non-financial assets and assets and Equity liabilities liabilities instrument Total $ $ $ $As at September 30, 2016

ASSETS

Property, plant and equipment – 1,462,014 – 1,462,014Deferred tax asset – 13,441 – 13,441Other receivables – 152,925 – 152,925Tax receivable 9,421 – – 9,421Cash at bank and in hand 28,857,760 – – 28,857,760Total assets 29,867,181 1,628,380 – 30,495,561 EQUITY AND LIABILITIES

Shareholders’ equity

Stated capital – – 100 100Retained earnings – – 229,523 229,523 Liabilities

Deferred operating subvention – 29,961,386 – 29,961,386Tax payable 36,602 – – 36,602Other liabilities 267,950 – – 267,950Total equity and liabilities 304,552 29,961,386 229,623 30,495,561

14.2 Management of insurance and financial risksRisk is inherent in the Company’s activities but it is managed through a process of on-going identification, measurement and monitoring subject to risk limits and other controls. This process of risk management is critical to the Company’s continuing as a going concern.

The Board of Directors is responsible for the overall risk management approach and for providing the risk strategies and principles to identify and control risks.

The Company’s risks are measured using methods which reflect the expected loss likely to arise in normal circumstances. The models make use of probabilities derived from historical experience, adjusted to reflect the current economic environment.

Monitoring and controlling risks is primarily performed based on limits established by its Board of Directors. These limits reflect the business strategy and market environment of the Company as well as the level of risk that the Company is willing to accept.


58


14. Financial risk management (continued)14.3 Financial risks

The components of financial risk are liquidity risk and credit risk. All the Company’s assets and liabilities (with the exception of funds held in the Mutual Fund which earns interest at 0.9%pa as per note 6), are non-interest bearing, denominated in Trinidad and Tobago dollars and are due within one year and therefore the Company is not exposed to interest rate, currency risk or price risk.

14.4 Liquidity riskLiquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost.

Up to 1 year 1 – 5 years Over 5 years Total $ $ $ $As at September 30, 2017

Assets

Other receivables 178,523 – – 178,523Tax receivable 9,421 – – 9,421Cash and cash equivalents 39,374,066 – – 39,374,066Total assets 39,562,010 – – 39,562,010 Liabilities

Taxation payable 34,932 – – 34,932Other liabilities 1,023,386 – – 1,023,386Total liabilities 1,058,318 – – 1,058,318

Net liquidity gap 38,503,692 – – 38,503,692

As at September 30, 2016

Assets

Other receivables 152,925 – – 152,925Tax receivable 9,421 – – 9,421Cash and cash equivalents 28,857,760 – – 28,857,760Total assets 29,020,106 – – 29,020,106 Liabilities

Taxation payable 36,602 – – 36,602Other liabilities 267,950 – – 267,950Total liabilities 304,552 – – 304,552

Net liquidity gap 28,715,554 – – 28,715,554


59


14. Financial risk management (continued)14.5 Credit risk The Company has exposure to credit risk which is the risk that a counterparty will be unable

to pay amounts in full when due. Key areas where the Company is exposed to credit risk are: • Cash at bank • Receivables

The Company manages its credit risk by transacting with entities that are of investment grade credit quality. Credit ratings are supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information to rate its major customers. The Company’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

The Company categorises all cash on hand and at bank as high grade financial assets.

15. Capital management The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders while maintaining a strong capital base to support the development of its business.

16. CommitmentsAs at September 30, 2017, the Company has no capital commitments.

17. Subsequent eventsThe Company has determined, at the time of issue of these financial statements, that there are no subsequent events which require recognition or disclosure in these financial statements.


60

Notes

STAYING THE COURSE - ttifc.co.tt & Tobago IFC’S F&A BPO Training Programme, for which 50 persons...

Documents

Transcript of STAYING THE COURSE - ttifc.co.tt & Tobago IFC’S F&A BPO Training Programme, for which 50 persons...