WE EVOLVE. WE THRIVE. - TTIFC 2016 – proved that Trinidad and Tobago was finally accepted by global Business Process Outsourcing (BPO) firms operating in the Finance & Accounting

BY ADAPTING. BY EVOLVING. BY STREAMLINING

YEAR ENDED SEPTEMBER 30, 2016

Annual Report 2016

WE EVOLVE. WE THRIVE.

TRINIDAD AND TOBAGO INTERNATIONAL FINANCIALCENTRE MANAGEMENT COMPANY LIMITED2016 ANNUAL REPORT

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TRINIDAD AND TOBAGO INTERNATIONAL FINANCIALCENTRE MANAGEMENT COMPANY LIMITED

2016 ANNUAL REPORT


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Chairman’s Report

RICHARD P. YOUNGCHAIRMAN

Achieving Sustainable Diversification

In the last four years, since the re-establishment of the Trinidad and Tobago IFC, there has been a strategic and consistent thrust toward the development of the financial services sector to support the diversification of the national economy. The efforts of the previous Board of Directors, management, staff and stakeholders of the Trinidad and Tobago IFC must be recognised for having laid the foundation for the achievements of the last fiscal year.

Given the continuous innovations in technology and interconnectedness between legacy and emerging financial centres, the global financial services sector has expanded exponentially. Consequently, Trinidad and Tobago has been able to surpass some of the players in the latter category to establish itself as the primary international financial centre of the Caribbean and Latin American region. This included key milestones such as the first-time listing on the A.T. Kearney Global Services Locations Index and Z/Yen Group’s Global Financial Centres Index, in January and September respectively. It must be noted that Trinidad and Tobago is ranked ahead of several decades-old legacy players on both these indices.

The Trinidad and Tobago IFC has sustained the message that Trinidad and Tobago is the premier location in the Western Hemisphere for financial services, attracting wide and tangible interest from investors in the financial services sector. Moreover, the Company is responsible

for creating an enabling environment for upcoming opportunities and generating increased synergies among all related stakeholders.

Continued Progress

The Trinidad and Tobago IFC was originally mandated to develop the Financial Institutions Support Services (FINeSS) industry. This has led to the creation of high-value jobs in the local marketplace, the facilitation of knowledge transfer and the generation of foreign exchange revenue.

In April 2016, the incoming Board of Directors reviewed the Company’s strategic initiatives with the added benefit of the continued service of two former Board members. The value of the knowledge they provided helped to carefully consider the Company’s trajectory to date.

Further to this, the inaugural Trinidad and Tobago International Outsourcing Summit (TTIOS) – held in June 2016 – proved that Trinidad and Tobago was finally accepted by global Business Process Outsourcing (BPO) firms operating in the Finance & Accounting (F&A) space, as a preferable nearshore location for their operations.

The Company also partnered with the Association of Chartered Certified Accountants (ACCA) to promote training enhancement programming for F&A professionals, which will go live in the new fiscal year. Such developments are encouraging in this time of


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tightened economic circumstances. We are confident that they have assisted in the progression of F&A BPO projects, which will launch in the short term. These projects are progressing steadily and are now in their final stages.

Agility in Responding to Change

After carefully canvassing the environment for new opportunities, especially in light of the heightened need to deliver value to our shareholders – the citizens of Trinidad and Tobago – we recalibrated and reallocated resources into developing relationships with select Asian financial institutions. Other flagship projects, are understandably on hold as we focus on this promising development.

Mr. Xi Jinping – President of China – has proclaimed that tens of billions of US dollars have been allocated for the Caribbean and Latin American region, a move that will give the world a positive signal about deepening cooperation between China and Latin America and have an important and far-reaching impact on promoting South-South cooperation and prosperity for the world.

In this context, the vision for the financial sector has been expanded to allow for a cluster of financial institutions in Port of Spain as Trinidad and Tobago offers the intimacy of a small market, with the luxuries of a large city. This vision will be executed in two phases. The first of which will be attracting Asian development banks

to establish an appropriate presence here in Trinidad and Tobago, with the second resulting in Chinese commercial banks setting up representative offices soon afterward.

Phase two leverages the fast-paced and evolving global financial system, in which clients need to be connected to bankers who are committed to meeting their financial needs. As companies expand globally to take advantage of business opportunities, their banks need to be prepared to service them wherever they go. Trinidad and Tobago is prepared to support the expansion of these financial institutions and help them to cater to the needs of their clients. By doing this, they will be well positioned to facilitate their clients’ entry into this new market by continuing to provide them with the required financial services; allowing them the comfort of maintaining long-standing relationships with their homeland banks.

This will in turn propel demand for support services and high-value job creation in the FINeSS industry. In time, the cluster will be created when financial institutions from territories other than China, recognise the value of operating in Trinidad and Tobago, as demonstrated by existing and new proof points.

Looking to the Future

The Trinidad and Tobago IFC will continue to exercise heightened due diligence and maintain its survey of the international financial landscape to ascertain opportunities and threats so that as a nation, we can plan and respond appropriately.

The Board of Directors and Management will maintain a focus on effective fiscal management to ensure value for money. The Company must continue to engage all stakeholders and impress upon them the need to be bold, creative and collaborative for the vision to come to fruition.

The Trinidad and Tobago IFC will continue to encourage local companies to invest in shared services to strengthen the industry and build a cadre of talent. This talent is already available in successful local companies, further enhancing Trinidad and Tobago’s value proposition. Interestingly, the innovative idea that Local Government – as part of its reform process – should centralise its accounting has been suggested. Given our intimate knowledge of the components required to build out the FINeSS industry, the Trinidad and Tobago IFC welcomes this concept and other similar ones, which will place focus on efficiency and skills development. The Company remains aware that technology plays

Chairman’s Report (continued)


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a crucial part in timeliness and cost reduction and will concentrate on this area of development in the new fiscal year. This objective will require new endeavours in networking and positioning – promising even more exciting horizons.

Conclusion

As I began, I shall close, for we must always be grateful to those who work towards the aspirations of a better Trinidad and Tobago. To our small but highly committed team, I commend your efforts as together we continue to push forward to achieve

Chairman’s Report (continued)

our great vision; to my fellow Board Members – your insights and co-operation remain imperative inputs to positive outcomes. To our Permanent Secretary and line Minister who believe in our work and provide the guidance and support required to propel it forward, thank you.

The Trinidad and Tobago IFC remains steadfast in its determination to develop the financial services sector and play its fullest role in the nation’s diversification to the benefit of all generations to come.

Richard P. YoungChairman


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ATTRACTING FOREIGN DIRECT INVESTMENT IN THE FINANCIAL SERVICES SECTOR

The Trinidad and Tobago International Financial Centre Management Company Limited (referred to as the Trinidad and Tobago IFC in this Report) was established by Cabinet Minute No. 2647 on September 18th, 2008 and incorporated under the Company’s Act 1995, on November 6th, 2008. It is, at first instance, an investment promotion agency created to position Trinidad and Tobago as ‘the premier location in the Western Hemisphere for Financial Services’. As such, it is entrusted with ‘attracting and facilitating foreign direct investment in the financial services sector that would enhance the growth and diversification of the economy, by creating sustainable employment.’

Over the last fiscal year (FY), in order to fulfil this mandate, the Trinidad and Tobago IFC pursued a strategic approach that was focused on nurturing the embryonic Financial Institution Support Services (FINeSS) Industry, while at the same time identifying where best to position Trinidad and Tobago within the global international financial centres marketplace.

Together, these efforts are expected to continue creating high-value employment opportunities in financial services for some 3,000 tertiary-level graduates in the short term and attracting more international financial markets players to our shores, thus ensuring sustainable transformation of the nation’s economy outside of oil and gas.

During the year, the Trinidad and Tobago IFC identified new opportunities which required its adaptation and reallocation of resources. This was due to the dynamism of constantly innovating global markets and the ever-changing needs of international financial markets players.

The following is our Management Report for FY 2015-2016, outlining the initiatives undertaken in this regard and ultimately in support of the strategic approaches necessary to achieve our milestones for the FY.

TAKING THE FINeSS INDUSTRY FROM EMBRYO TO INFANCY

A TWO-PRONGED STRATEGY

As part of its mandate to position Trinidad and Tobago as a preferred location for Finance and Accounting (F&A) and Banking, Financial Services and Insurance (BFSI) Business Process Outsourcing (BPO), the Trinidad and Tobago IFC developed a focused, two-pronged strategy to build inward investment in the sector.

This strategy simultaneously targeted BPO providers seeking cost-effective locations to establish operations (otherwise known as ‘sellers’), and companies looking to outsource some or all aspects of their financial services (‘buyers’). This approach required concurrent progress in several initiatives.

INTERNATIONAL BRANDING & RECOGNITION

The Trinidad and Tobago IFC sustained its International Branding and Recognition campaign to promote investment in the industry by both international and domestic players.

By far, the single most important achievement in this area was a first-time ranking in the 2016 publication of A.T. Kearney’s Global Services Location Index (GSLI). This was made possible by a series of concerted outreach initiatives and engagement of key stakeholders in the

MANAGEMENT’S REPORTADAPTING TO CHANGE


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last FY. Trinidad and Tobago is now ranked at 42 (out of 55), ahead of countries who have been well established outsourcing destinations for more than a decade. The next year will see the Company undertake steps expected to improve this ranking on the GSLI.

To complement these efforts, innovative international marketing activities were ramped up. An independent analyst in the financial services and outsourcing market was hired by the Trinidad and Tobago IFC in March 2016 to complete content marketing of Trinidad and Tobago as a financial services destination and an independent website, Finance TnT, was launched. A monthly article showcasing different aspects of Trinidad and Tobago’s F&A BPO readiness was published along with 10-15 relevant news briefs about the local and regional BPO industry.

Social media sites (Facebook, Twitter, LinkedIn) under the name Finance TnT were also maintained on Trinidad and Tobago IFC’s behalf. Each monthly article and news brief published on this site is sent to the Trinidad and Tobago IFC’s mailing lists – reaching close to 1,000 players in the sector.

SHOWCASING TRINIDAD AND TOBAGO

International promotion and marketing has allowed us to develop credibility in the market which in turn has facilitated a pipeline of international BPO prospects through the hosting of inward delegations.

In February 2016, the Trinidad and Tobago IFC hosted executives from two US-based companies (AIG and Gen II Funds) and a Costa Rican company with a large regional footprint, the Supplying Total Talent (STT) Group. These companies are all interested in outsourcing some

of their F&A work to a low-cost jurisdiction like Trinidad and Tobago. These inward delegations act as proof-of-concept of all the advantages of Trinidad and Tobago as a BPO hub.

Having created excitement and heightened interest in the market, the Trinidad and Tobago IFC was able to coordinate and successfully host the inaugural Trinidad and Tobago International Outsourcing Summit (TTIOS). On June 15th, Trinidad and Tobago welcomed attendees from 20 medium to large North American companies interested in outsourcing their middle and back office F&A functions. The summit crystalized all the Trinidad and Tobago IFC’s preceding marketing efforts to establish Trinidad and Tobago on the BPO map.

Using the success of TTIOS as a launching pad to re-engage the market, the Company participated in the Shared Services Exchange Network in North Carolina from June 26th-28th, 2016 as one of the event’s sponsors. The event specifically targeted companies that were interested in outsourcing back office functions in financial services. The Trinidad and Tobago IFC pitched the country’s value proposition at 10 one-on-one meetings and is currently in discussions with three of those companies.

OPERATIONALIZING DEALS

The Trinidad and Tobago IFC has always worked alongside financial sector and other stakeholders to develop robust, synergistic partnerships. In this FY, Memoranda of Understanding (MoUs) have been signed with two companies in furtherance of their setting up pilot operations. One of these was part of an inward delegation and the other attended TTIOS.


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These companies are in the process of registering their business in Trinidad and Tobago with the short-term goal of beginning operations with the first quarter of 2017.

In the period under review, the Trinidad and Tobago IFC also held discussions with eight local companies to introduce them to the benefits of outsourcing some or all of their F&A work. Four of these have expressed interest and the Trinidad and Tobago IFC is working closely with them during this exploratory phase.

PROMOTING F&A BPO AS A CAREER

Through the continuous efforts of the Trinidad and Tobago IFC, persons interested in a financial services career, are being made aware of F&A BPO as a viable option. To this end, the Trinidad and Tobago IFC participated in a career fair held at the School of Business and Computer Science (SBCS) in July. The event was well attended by the school population and provided a prime opportunity to showcase our role in helping to diversify the economy, the qualifications necessary to be a part of this new industry and the various jobs available in it.

The Company also held discussions with the Director and Supervisor of School Supervision in the Ministry of Education, where we agreed that the Company could meet with each of the seven clusters of secondary school principals in Trinidad and Tobago at their monthly meetings, to agree on the best approach to present the BPO career path to all secondary schools.

This exercise will commence in the new FY. As the F&A BPO industry is advanced in other territories, interested BPO operators seek F&A professionals with specialised skills in this area. After engaging a number of internationally-accredited training providers, the Trinidad and Tobago IFC discovered that the Association of Chartered Certified Accountants’ (ACCA) global office had launched a Global Business Services (GBS) qualification in early 2015. The syllabus is very practical and useful to employees in the F&A BPO industry. The Trinidad and Tobago IFC and ACCA Caribbean entered an MoU in June to formalise a working partnership to promote the qualification, with a formal launch planned in the first quarter of the new FY.

ADVANCING TRINIDAD AND TOBAGO AS A RECOGNIZED INTERNATIONAL FINANCIAL CENTRE

During this FY, the Trinidad and Tobago IFC continued to build Trinidad and Tobago’s international reputation by securing meaningful international partnerships, promoting the Trinidad and Tobago IFC in key markets and working

with local stakeholders on initiatives for the development of the local capital market.

INTERNATIONAL AWARENESS CAMPAIGN

This strategic initiative was started in June 2014 to cement the image of the Trinidad and Tobago IFC as an emerging global financial centre. This FY, the Trinidad and Tobago IFC sustained the effort through features in local and international magazines such as Invest Trinidad and Tobago, Business Trinidad and Tobago, Linkage and The Report from the Oxford Business Group. This served to outline the work being done to fulfil the government-approved mandate of promoting the Trinidad and Tobago IFC domestically and internationally as an attractive location for business and investment activities.

In November 2015, the Company attended the Commonwealth Heads of Government Meeting (CHOGM) in Malta and the Commonwealth Business Forum, participating in a discussion on financial centres as catalysts of growth, focusing on establishing a financial centre and the strategy developed for the Trinidad and Tobago IFC. The role of the Company and the work being done to create the required environment to attract international financial institutions to Trinidad and Tobago was featured in the CHOGM handbook.

To ensure the Company engaged the highest potential partners, the Trinidad and Tobago IFC engaged a leading commercial think tank in the City of London, a major European hub for financial services, to provide marketing and communication services in the United Kingdom and Europe. This campaign involved publishing press releases and establishing an internet presence targeted to finance professionals and journalists.

As part of the European marketing effort, in May 2016 the Company hosted a breakfast meeting and one-on-one meetings in the City. The goal of which was to position Trinidad and Tobago as the premier location for financial services in Latin America and the Caribbean in the minds of finance professionals and journalists working there. The Trinidad and Tobago IFC was encouraged, given the genuine interest in Trinidad and Tobago as a hub for Latin America and the Caribbean, and the fact that unlike other Caribbean financial centres, it is not perceived as an ‘offshore centre’ and ‘tax haven’; had this been the case, Trinidad and Tobago’s development of the Trinidad and Tobago IFC could have been hindered.

As a result of these efforts Trinidad and Tobago was listed for the very first time on the Global Financial Centres Index (GFCI) at position 71, ahead of some developed countries.

Manangement’s Report (continued)


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PARTNERSHIPS FOR PROGRESS

In January 2016, the Trinidad and Tobago IFC signed a strategic partnership agreement with the London-based Commonwealth Enterprise and Investment Council (CWEIC), with a mandate from the Commonwealth Heads of Government to promote trade and investment. This partnership will result in the Trinidad and Tobago IFC being promoted as the premier financial centre for Latin America throughout the Commonwealth, leading to companies from targeted sectors establishing operations in the Trinidad and Tobago IFC. Going forward, the Trinidad and Tobago IFC will leverage the vast network of the CWEIC to achieve its strategic and commercial objectives.

With the goal of introducing the Trinidad and Tobago IFC to key stakeholders and its plans for its operationalization in mind, meetings with the Law Association of Trinidad and Tobago, the American Chamber of Commerce (AMCHAM), the Bankers Association of Trinidad and Tobago and the Trinidad and Tobago Chamber of Industry and Commerce were held.

During the FY, the Trinidad and Tobago IFC worked with the Securities Dealers Association of Trinidad and Tobago (SDATT) to draft guidelines for commercial paper and shelf registration. These guidelines were identified as being a valuable development for the local market which should result in increased market activity.

These guidelines were submitted to the Trinidad and Tobago Securities and Exchange Commission (TTSEC).

MAINTAINING STRONG INTERNAL SUPPORT AND ADMINISTRATION

MARKETING AND COMMUNICATIONS SUPPORT

For the period under review, the Marketing and Communications initiatives were focused on providing critical strategic support to the Business Development and Capital Markets areas, while maintaining the Trinidad and Tobago IFC’s corporate communications activity.

The latter was achieved through the production and distribution of three issues of the corporate newsletter – the Quarterly. Apart from being prominently placed in the Business Guardian, the publication is disseminated via print and email to all major stakeholders and has received high-level commendation from readers alike.

The Company’s corporate profile brochure as well as other related corporate collateral was upgraded and related photography and other assets were acquired to ensure material was current. A corporate video was produced outlining the vision of the Trinidad and Tobago

IFC. Advertisements and editorials were placed in AMCHAM’s Linkage magazine, the CHOGM Handbook and Business Trinidad and Tobago. To complete the suite of corporate communications developments, the Company re-engineered its interactive website – tagged the ‘Financial Services Portal’ – with increased interactivity, responsiveness to all mobile devices and upgraded copy, visuals and motion graphics.

ADMINISTRATION

The Company continues to ensure that its IT systems are robust and support the Trinidad and Tobago IFC’s work.

Software licenses were purchased or upgraded where required and hardware warranties were renewed for critical equipment. IT support also implemented new services such as online email archiving and expanded the Virtual Private Network (VPN) capabilities to better facilitate remote access to the Trinidad and Tobago IFC office. Windows 10 was successfully deployed to all Trinidad and Tobago IFC workstations and backup tapes are now being set offsite as part of our expanded disaster recovery efforts.

The Corporate Services Department continued to provide general support to the organization, including office services and equipment; telecommunications services, general, as well as group health and life insurances, public liability insurance and fidelity guarantee among others; courier services and reception services.

The Records Classification System served to launch the Centralized Filing System, which incorporates a dual system of recording of both hard copy and e-versions of records. Vital company records including contracts and MoUs can now be accessed electronically.

Operating procedures were drafted for the major responsibilities of the support functions – accounting and finance, office services, information technology, marketing and communications and foreign travel. This draft Operating Manual will support the approved Enterprise Risk Management Policy.

CONCLUSION

In 2016, two key members of our Executive team separated from the Company, but our small staff complement of 13, continues to provide excellent support, loyalty and dedication to fulfilling the mandate of the Company.

With the astute guidance of our Board of Directors, we move confidently forward with a firm belief in our transformative role in the diversification of our country’s economy.


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BOARD OFDIRECTORS

L-R:

EWART WILLIAMS

RICHARD P. YOUNG, Chairman (seated)

PETER CLARKE

INEZ SINANAN

REYNOLD AJODHASINGH


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Audit, Risk and Compliance Committee

Members:Ewart Williams, ChairPeter Clarke, 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 and Tobago IFC.

Consistent with the function, the Committee should encourage continuous improvement of, and should foster adherence to the Company’s policies, procedures and practices at all levels.

The Committee held meetings as required during the year.

Corporate Governance, Strategy and Human Resource Committee

Members:Inez Sinanan, ChairRichard P. Young, 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.

The Committee shall assist the Board in its responsibilities for an effective organisational structure and competitive human resources and compensation policies and practices for the Company.


Finance and Investment Committee:

Members:Reynold Ajodhasingh, ChairRichard P. Young, 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; and

• Regularly monitor and review the finances of the Company.


Tenders Committee

Members:Inez Sinanan, 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. The Tenders Committee shall also ensure that value for money, transparency and accountability are maintained at all times within the procurement process of the organisation. The Tenders Committee shall make recommendations to the Board of Directors on the acquisition of goods and services within its authority level.


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BOARD COMMITTEES

OUR WORKTHIS YEAR

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1. Trinidad and Tobago IFC's Annual Meeting (2014-15 fiscal year)

2. Prime Minister of Trinidad and Tobago and the Minister of Foreign Affairs and CARICOM

Affairs, together with then Trinidad and Tobago IFC’s CEO at CHOGM 2015 in Malta

3. CWEIC visits Trinidad and Tobago IFC's offices to formalize partnership MoU

4. Management Team and IT Administrator in website upgrade meeting

5. Trinidad and Tobago IFC hosts outreach session in London, UK

6. Trinidad and Tobago IFC meets with Z/Yen Group London, UK

7. Financial Markets players at Trinidad and Tobago IFC's outreach session in London, UK

8. Trinidad and Tobago IFC pitching Trinidad and Tobago as an F&A BPO location

at SSON, USA

9. F&A BPO inward delegation meets with the Minister of Trade and Industry

10. F&A BPO inward delegation is briefed at Trinidad and Tobago IFC's offices

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11. Former CEO receives a token of appreciation at farewell staff meeting12. Trinidad and Tobago IFC staff meeting13. SSON, USA sponsors’ board14. F&A BPO inward delegation tours Tamana Business Park15 Chinese Ambassador to Trinidad and Tobago visits Trinidad and Tobago IFC ’s office16. Welcome signage at TTIOS 201617. Delegates and speakers at TTIOS18. Trinidad and Tobago IFC Director and TTIOS Conference Chair


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19. The Minister of Labour is welcomed to TTIOS by Trinidad and Tobago IFC’s Board of Directors20. Members of the media interview Trinidad and Tobago IFC’s Directors at TTIOS21, 22. Some foreign delegates at TTIOS 23. Johan Gott of A.T. Kearney speaks about Trinidad and Tobago’s listing on GSLI at TTIOS24. Financial Services Panel at TTIOS


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FINANCIALSTATEMENTSYear ended September 30, 2016


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Statement of management’s responsibilities

It is the responsibility of management to prepare financial statements for each financial year which present fairly, in all material respects, the state of affairs of the Trinidad and Tobago International Financial Centre Management Company Limited (the ‘Company’) as at the end of the financial year and of the operating results of the Company for the year. It is also management’s responsibility to ensure that the Company keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company. They are also responsible for safeguarding the assets of the Company.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards (IFRS). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with the IFRS. Management is of the opinion that the financial statements present fairly, in all material respects, the state of the financial affairs of the Company and of its operating results. Management further accepts responsibility for the maintenance of accounting records which may be relied upon in the preparation of the financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of Management to indicate that the Company will not remain a going concern for at least the next twelve months from the date of this statement.

Director DirectorNovember 29, 2016 November 29, 2016


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Independent auditors’ report to the shareholders of Trinidad and Tobago International Financial Centre Management Company Limited

Report on the financial statements We have audited the accompanying financial statements of the Trinidad and Tobago International Financial Centre Management Company Limited, which comprises the statement of financial position as at September 30, 2016, 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 a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, 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.

Auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of the Trinidad and Tobago International Financial Centre Management Company Limited as at September 30, 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Deloitte & Touche Port of Spain,Trinidad, West IndiesNovember 29, 2016


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

As at September 30, Notes 2016 2015 $ $ASSETS

Non-current assets Property, plant and equipment 4 1,462,014 2,295,203Deferred tax asset 9 13,441 –

Total non-current assets 1,475,455 2,295,203 Current assets Tax receivable 9,421 9,828Other receivables 5 152,925 209,535Cash in hand and at bank 6 28,857,760 19,317,301

Total current assets 29,020,106 19,536,664

Total assets 30,495,561 21,831,867 EQUITY AND LIABILITIES

Equity Stated capital 7 100 100Retained earnings 229,523 54,530

Total equity 229,623 54,630 Non-current liabilities Deferred tax liability 9 – 50,251 Current liabilities Tax payable 36,602 57,908Other liabilities 8 267,950 975,138Deferred operating subventions 10 29,961,386 20,693,940

Total current liabilities 30,265,938 21,726,986

Total equity and liabilities 30,495,561 21,831,867

The notes set out on pages 25 to 41 form an integral part of these financial statements.

On November 29, 2016 the Board of Directors of Trinidad and Tobago International Financial Centre Management Company Limited authorised these financial statements for issue.

Director Director


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

Year ended September 30, Notes 2016 2015 $ $ Government subventions 10 12,931,602 22,723,408 Interest income 200,075 99,025

Foreign exchange gain 14,159 32,168 Disposal of assets gain/(loss) 23,824 (3,375) Operating and administrative expenses 11 (12,969,585) (22,752,201) Profit for the year before taxation 200,075 99,025 Taxation 12 (25,082) (41,188)

Profit for the year after taxation 174,993 57,837 Other comprehensive income – – Total comprehensive income 174,993 57,837



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Statement of changes in equityfor the year ended September 30, 2016(Expressed in Trinidad and Tobago dollars)

Stated capital Retained earnings Total $ $ $

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

Balance at October 1, 2014 100 (3,307) (3,207) Total comprehensive income – 57,837 57,837

Balance at September 30, 2015 100 54,530 54,630



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

Year ended September 30, Notes 2016 2015 $ $Cash flows from operating activities Profit before taxation 200,075 99,025Adjustment for: Operating subventions released to the statement of profit or loss 10 (12,931,602) (22,723,408) (Gain)/loss on disposal of fixed assets (23,824) 3,375 Depreciation 4 699,190 1,031,161

Operating loss before working capital changes (12,056,161) (21,589,847)

Decrease in other receivables 56,610 216,670 Decrease in other payables (707,189) (1,773,261)

Cash used in operations (12,706,740) (23,146,438)

Taxation paid (109,673) (67,663)

Net cash flows used in operating activities (12,816,413) (23,214,101) Cash flows from investing activities Purchase of property, plant and equipment 4 (151,717) (968,471)Proceeds from sale of fixed assets 309,541 110,534

Net cash flows generated from/(used in) investing activities 157,824 (857,937)

Cash flows from financing activities Government subventions 10 22,199,048 31,000,000

Net cash flows generated from financing activities 22,199,048 31,000,000 Net increase in cash and cash equivalents 9,540,459 6,927,962 Cash and cash equivalents at beginning of year 19,317,301 12,389,339

Cash and cash equivalents at end of year 6 28,857,760 19,317,301



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Notes to the Financial Statementsfor the year ended September 30, 2016(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 331/3% 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.


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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 a group 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.


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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 cognisance 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.


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3. Application of new and revised International Financial Reporting Standards (‘IFRS’)New IFRS and amendments to IFRS that are mandatorily effective for the current yearIn the current year, there were no amendments to IFRS or new interpretation issued by the IASB that are mandatorily effective for an accounting period that begins on or after October 1, 2015.

• 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 instruments3

– IFRS 16 Leases4

– Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortization1

– Amendments to IFRS Annual Improvements to IFRS 2012-20141

– Amendments to IAS 1 Disclosure Initiative1

– Amendments to IAS 12 Recognition of Deferred Tax Assets Unrealised Losses2

– Amendments to IAS 7 Disclosure initiative2

1 Effective for annual periods beginning on or after January 1, 2016, with earlier application permitted.2 Effective for annual periods beginning on or after January 1, 2017, with earlier application permitted.3 Effective for annual periods beginning on or after January 1, 2018, with earlier application permitted.4 Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted.

• IFRS 9 Financial Instruments IFRS 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.


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3. Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)New IFRS and amendments to IFRS that are mandatorily effective for the current year (continued)• New and revised IFRS in issue but not yet effective (continued)

• IFRS 9 Financial Instruments (continued)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.

– 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.


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

• New and revised IFRS in issue but not yet effective (continued)• IFRS 9 Financial Instruments (continued) The directors of the Company do not anticipate that the application of IFRS 9 in the future would

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 16 Leases IFRS 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 do not anticipate that the application of IFRS 16 in the future would have a material impact on the amounts reported and disclosures made in the Company’s financial statements.

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

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; orb) 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.


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• New and revised IFRS in issue but not yet effective (continued)• Annual Improvements 2012 – 2014 The Annual Improvements to IFRS 2012-2014 include a number of amendments to various

IFRS, which are summarized 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 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.

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

impediments to preparers exercising their judgment 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 the 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 understandability 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.


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• New and revised IFRS in issue but not yet effective (continued)• Amendment to IAS 1 Disclosure Initiative (continued)

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 12 Recognition of Deferred Tax Assets for Unrealised LossesUnrealised 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.

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

• Amendments to IAS 7 Disclosure InitiativeAmends 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.

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


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4. Property, plant and equipment Leasehold Equipment Motor Furniture & Computer Total 2016 Improvements Vehicles Fixtures Software $ $ $ $ $ $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

2015

Cost

At October 1, 2014 409,411 1,754,377 1,250,470 256,787 392,667 4,063,712Additions 496,381 103,783 284,798 39,135 44,374 968,471Disposals – (50,124) (275,669) – – (325,793)

At September 30, 2015 905,792 1,808,036 1,259,599 295,922 437,041 4,706,390 Accumulated depreciation

At October 1, 2014 20,381 798,986 536,485 47,326 187,928 1,591,106Disposals – (41,380) (169,700) – – (211,080)Depreciation 82,307 541,426 254,849 27,198 125,381 1,031,161

At September 30, 2015 102,688 1,299,032 621,634 74,524 313,309 2,411,187

Net book value

At September 30, 2015 803,104 509,004 637,965 221,398 123,732 2,295,203


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5. Other receivables 2016 2015 $ $

Prepayment 152,925 194,384Other receivables – 15,151

152,925 209,535

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

2016 2015 $ $Cash in hand – TTD 6,000 6,000Cash in hand – Non TTD 13,167 12,587Cash at bank 1,063,310 714,548Mutal Fund-Interest rate 2016: 0.9% (2015: 0.8%) 27,775,283 18,584,166

28,857,760 19,317,301

7. Stated capital 2016 2015

Authorised: $ $ Unlimited ordinary shares of no par value Issued and paid: 10 Ordinary shares @ $10 each 100 100

8. Other liabilities 2016 2015 $ $Accruals 258,605 937,677Other payables 9,345 37,461

267,950 975,138

9. Deferred taxThe deferred tax liability arose as follows: 2016 2015 $ $Carrying value of property, plant & equipment 1,462,014 2,295,203Tax value of property, plant and equipment (1,515,778) (2,094,198) Temporary difference (53,764) 201,005 Deferred tax (asset)/liability at 25% (13,441) 50,251


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9. Deferred tax (continued) 2016 2015 $ $Movement in deferred tax

Balance at start of year 50,251 101,246Credit to profit and loss (63,692) (50,995)

Balance at end of year (13,441) 50,251

10. Deferred operating subventionsGovernment subventions totalling $22,199,048 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.

2016 2015 $ $Beginning balance 20,693,940 12,417,347Funds received from the Government of the Republic of Trinidad and Tobago 22,199,048 31,000,000Amounts transferred to statement of profit or loss (12,931,602) (22,723,408)

29,961,386 20,693,940


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11. Operating and administrative expenses 2016 2015 $ $Accounting fees – 5,388Audit fees 50,800 47,988Bank charges 14,238 18,796Business development 1,467,775 1,508,528Capital Markets development 702,438 9,321,479Marketing and communications 1,710,027 2,617,221Depreciation 699,190 1,031,159Directors' fees 433,767 462,000Group health and life 175,054 163,639Insurance 111,598 121,220Internet charges 30,507 42,656Janitorial services 63,274 73,829Legal & professional fees 98,063 353,860Meals & entertainment 42,284 69,882Motor vehicle expenses 47,749 32,937Office expenses 307,841 263,009Penalty and interest (note 11.1) – (529,447)Recruitment costs – 51,221Repairs and maintenance 13,106 53,179Research costs – 6,900Salaries and related staff cost 6,762,572 6,766,814Security 33,999 33,455Subscriptions 69,584 87,820Telephone expenses 135,719 148,668

12,969,585 22,752,201

11.1 Penalty and interest This credit results from the reversal of Withholding Tax interest and penalty in the amounts of $338,406.34

(2010) and $191,041.00 (2011), which were accrued and expensed in 2011. On September 8, 2015 during the 2016 Budget presentation the Minister of Finance declared a Tax Amnesty, which ended March 31, 2016. This Amnesty was applied to returns, penalties and interest on outstanding tax liabilities for years of income up to 2013, resulting in a waiver of the payment, and reversal of the accrued expense.


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12. Taxation12.1 Tax charge for the period is made up as follows: 2016 2015 $ $

Over accrual– corporation tax, business levy & green fund (47,797) –Deferred tax expense (63,692) (50,995)Business Levy – 45,785Green Fund Levy 33,684 21,957Corporation Tax 102,887 24,441

25,082 41,188

12.2 Reconciliation of applicable tax charge to effective tax charge:

Profit before tax 200,075 99,025

Tax at the rate of 25% 50,019 24,756

Expenses not allowable for taxation 14,538 4,113Expenses allowable for taxation (31,304) –Tax losses utilised – (62,407)Effect of timing differences 69,634 103,764Other differences (63,692) (50,995)Green Fund Levy 33,684 21,957Over accrual of prior period expense (47,797) –

25,082 41,188

13. Related party transactions The following represents transactions with related parties:

Key management compensation 2016 2015 $ $Remuneration of CEO, management and directors 3,949,209 4,071,290

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

The Company refers to the ‘State Enterprise Performance Monitoring Manual’ and its ‘Accounting Policies and Procedures Manual’ for regulation on the disposal of fixed assets. Under these guidelines assets falling within the categories of motor vehicle and computer equipment were sold to employees of the Company during the financial year. Disposal proceeds amounted to $222,541.


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14. Financial risk management14.1 Categorization

Financial Non-financial assets and assets and Equity and liabilities liabilities Instruments 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 – – 28,857,760

Total assets 29,033,547 1,475,455 – 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 – – 267,950

Total equity and liabilities 304,552 29,961,386 229,623 30,495,561


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

Financial Non-financial assets and assets and Equity and liabilities liabilities Instruments Total $ $ $ $


ASSETS

Property, plant and equipment – 2,295,203 – 2,295,203Other receivables 209,535 – – 209,535Tax receivable 9,828 – – 9,828Cash at bank and in hand 19,317,301 – – 19,317,301

Total assets 19,536,664 2,295,203 – 21,831,867 EQUITY AND LIABILITIES

Shareholders’ equity

Stated capital – – 100 100Retained earnings – – 54,530 54,530 Liabilities

Deferred operating subvention – 20,693,940 – 20,693,940Deferred tax liability – 50,251 – 50,251Tax payable 57,908 – – 57,908Other liabilities 975,138 – – 975,138

Total equity and liabilities 1,033,046 20,744,191 54,630 21,831,867

14.2 Management of insurance and financial risks Risk 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 it is willing to accept.


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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 risk Liquidity 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 $ $ $ $


Assets

Other receivables 152,925 – – 152,925Tax receivable 9,421 – – 9,421Cash and cash equivalents 28,857,760 – – 28,857,760

Total assets 29,020,106 – – 29,020,106 Liabilities

Taxation payable 36,602 – – 36,602Other liabilities 267,950 – – 267,950

Total liabilities 304,552 – – 304,552

Net liquidity gap 28,715,554 – – 28,715,554 As at September 30, 2015

Assets

Other receivables 209,535 – – 209,535Tax receivable 9,828 – – 9,828Cash and cash equivalents 19,317,301 – – 19,317,301

Total assets 19,536,664 – – 19,536,664 Liabilities

Taxation payable 57,908 – – 57,908Other liabilities 975,138 – – 975,138

Total liabilities 1,033,046 – – 1,033,046

Net liquidity gap 18,503,618 – – 18,503,618


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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, 2016, the Company has no capital commitments (2015: $27,979) which relate to leasehold improvements.

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.


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BOARD OF DIRECTORSOCTOBER 2015 – APRIL 26, 2016Franco Siu Chong, ChairmanPeter ClarkeWayne DassTaranpersad RamdeenJasodra RampersadInez Sinanan FROM APRIL 27, 2016 Richard P. Young, ChairmanReynold AjodhasinghPeter ClarkeInez SinananEwart Williams

CORPORATE SECRETARYGrant Thornton Orbit Solutions LimitedQueen’s Park Place17-20 Queen’s Park WestPort of SpainTrinidad and Tobago

EXECUTIVE TEAMVarun Maharaj, Chief Executive Officer (to July 31, 2016)

Aliyah Jaggassar, Vice President BPO/Shared Services Development

Joan Ferreira, Vice President Corporate Services

Michelle Rolingson-Pierre, Vice President Financial and Capital Markets Development (to May 31, 2016)

REGISTERED OFFICELevel 15, Tower DInternational Waterfront Centre1 Wrightson RoadPort of SpainTrinidad and Tobago

AUDITORSDeloitte and Touche54 Ariapita AvenuePort of SpainTrinidad and Tobago

BANKERFirst Citizens Bank LimitedMovieTowne BranchPort of SpainTrinidad and Tobago

ATTORNEYS-AT-LAWGirwar and DeonarineChancery Court, Suite No. 213-15 St. Vincent StreetPort of Spain

Byrne and Byrne77 Abercromby StreetPort of Spain

JCS Law (Caribbean) Limited5th Floor, Newtown Centre30-36 Maraval RoadPort of Spain

M.G. Daly and Partners115A Abercromby Street Port of Spain

J.D. Sellier and Co Limited129-131 Abercromby StreetPort of Spain

Pollonais, Blanc, de la Bastide and JacelonPembroke Court17-19 Pembroke StreetPort of Spain

Corporate Information


2016 ANNUAL REPORT

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Notice to Shareholders


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Notes

Documents

WE EVOLVE. WE THRIVE. - TTIFC 2016 – proved that Trinidad and Tobago was finally accepted by global Business Process Outsourcing (BPO) firms operating in the Finance & Accounting