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EPL Annual Report 2018
CONTENTS 04
Vision, Mission, Values
05 Prayer 06
Notice of Sixteenth Annual General Meeting
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Minutes of Fifteenth Annual General Meeting
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Board of Directors
16
Chairman’s Report
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An EPL Year in Photos
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Audited Financials for EPL Properties Limited 2018
66 Resolutions
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OUR VISION To be an elite provider of Property Management, Janitorial, Events Management and Health & Fitness services within the Co-operative sector, Financial Institutions, Government Departments and beyond; through leveraging our competency and experience in these areas, and by providing superior product/service offerings. 04
OUR MISSION To optimize the profitability of all business units, while focusing on inspiring employees to strive for greatness, while upholding the highest principles of ethical behaviour and transparency in all areas of operations. OUR VALUES Honesty, Integrity, Team Work, Transparency In All Undertakings, Ethical Behaviour, Respect For All and Superior Customer Service.
THE PRAYER OF ST. FRANCIS OF ASSISI Lord, make me an instrument of Thy Peace; Where there is hatred, let me sow Love, Where there is injury, Pardon, Where there is doubt, Faith. Where there is despair, Hope. Where there is darkness, Light and Where there is sadness, Joy. O Divine Master, Grant that I may not so much seek To be consoled as to console, To be understood as to understand, To be loved as to love; For it is in giving that we receive, It is in pardoning that we are pardoned, And it is in dying that we are born to eternal life. AMEN
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NOTICE OF SIXTEENTH ANNUAL GENERAL MEETING
September 13th 2019
NOTICE OF THE SIXTEENTH ANNUAL GENERAL MEETING NOTICE is hereby given that the Sixteenth Annual General Meeting of the
NOTICE
Shareholder of EPL Properties Ltd. (The Company) would be held at the Eric Williams Multi-Purpose Facility, La Joya, Eastern Main Road, St. Joseph at 5.00 pm
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on Friday 4th October 2019. Ordinary Business 1. Welcome 2. Confirmation of the Minutes of the Fifteenth Annual General Meeting held on 26th July, 2018 3. Chairman’s Report 4. To receive and consider the Audited Financial Statements of the Company for the financial year ended December 31 st, 2018 5. To appoint Directors 6. To appoint an External Auditor of the Company for the Financial year ending December 31, 2019 7. To transact any other business
By order of The Board --------------------------------------------Gloria Rolingson Corporate Secretary
THE OPAL SUITE
Stay at the EPL Executive Suites. eplpropertiesltd.com
MINUTES OF THE FIFTEENTH ANNUAL GENERAL MEETING
OF EPL PROPERTIES LIMITED HELD ON THURSDAY JULY 26, 2018 AT THE ERIC WILLIAMS MULTIPURPOSE FACILITY, LA JOYA, EASTERN MAIN ROAD, ST. JOSEPH PRESENT Mr. Wayne Estrada Ms. Janelle Benjamin Mrs. Gloria Rolingson Mr. Marlon Mark Phillips Mr. Ronald Bobb Mr. Brent Hewitt-Borde Mr. Jameel Mohammed Mr. Darnley Faria 08
- - - - - - - -
Chairman, EPL Properties Limited Vice Chairman Corporate Secretary/Independent Director Director Director Independent Director Independent Director Chief Operating Officer
BY INVITATION Mrs. Francisca Lassalle - ECU Director (Assistant Secretary) Mr. Gerard Matthews - ECU Executive Director Ms. Wendy Williams - ECU Director Mr. Clyde Herbert - ECU Director Mr. Cyril Barran - ECU Director Ms. Stephanie Benjamin - ECU Director Mr. Lyndon Williams - 2nd Substitute, ECU Mr. David Taitt - Member, Supervisory Committee Mr. Conrad Enill - Group Chief Executive Officer Mr. Steve Albino - Deputy Chief Executive Officer Mrs. Sherry McDonald-Joseph - Group Financial Comptroller Mr. Kester Regis - Group Executive Manager, Marketing, Research & Business Development Ms. Acacia de Verteuil - Manager – Business Development & Marketing Mr. Garvin Toussaint - Facilities Manager Mr. Dwayne Rodriguez-Seijas - External Auditor, PricewaterhouseCoopers Mr. Kerry Benjamin - PricewaterhouseCoopers EXCUSED Mr. Darius Figuera Ms. Ayana St. Louis
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Shareholder Representative Manager, Finance and Accounting
1.0 COMMENCEMENT/PRAYER The Chairman, Mr. Wayne Estrada, called the meeting to order at 5.28 p.m. A recorded version of the National Anthem was played, followed by the recital of the St. Francis of Assisi Prayer. 2.0 NOTICE OF FIFTEENTH ANNUAL GENERAL MEETING The Corporate Secretary, Director Gloria Rolingson, read the Notice of the Fifteenth Annual General Meeting. 3.0 WELCOME AND INTRODUCTIONS The Chairman extended a warm welcome to all. He also acknowledged the specially invited guests and introduced those at the Head Table. He indicated that the Shareholder Representative, Mr. Darius Figuera, could not attend the meeting. As a consequence, the Shareholder, Eastern Credit Union Co-operative Society Limited, had proposed Mr. Marlon Mark Phillips as the Shareholder Representative for the meeting. The Chairman also mentioned that Ms. Ayana St. Louis (Manager, Finance and Accounting) of EPL Properties Ltd., was excused. 4.0 ANNUAL REPORT 2017 The Annual Report 2017 was taken as read on a motion by the Shareholder Representative, Mr. Marlon Mark Phillips, and seconded by Director Ronald Bobb, 5.0 CONFIRMATION OF MINUTES – FOURTEENTH ANNUAL GENERAL MEETING The Minutes of the Fourteenth Annual General Meeting held on August 30, 2017, were confirmed on a motion of Mr. Marlon Mark Phillips (Shareholder Representative) and seconded by Director Jameel Mohammed. 6.0 MAT TERS ARISING 6.1 Financials – 2016 Feedback was sought in respect of a query raised at the 14th Annual General Meeting as to what accounted for the increase in Miscellaneous Administrative Expenses from $14,693 in 2015 to $335,856 in 2016. Since the Chief Operating Officer was unable to proffer a response and the Manager, Finance and Accounting was not in attendance, the Chairman indicated that the information would be provided to the Shareholder Representative subsequent to the meeting. 7.0 CHAIRMAN’S REPORT Director Wayne Estrada, presented the Chairman’s Report. The Report was amended at Item 13 on page 21 by changing “2019” to “2018”. Some major highlights in the Report with regard to EPL’s financial performance and also projects undertaken during the period under review were as follows: a. Assets grew by 2.7% from $110M in 2016 to $113.4M in 2017. b. Total Revenue increased by 19.2% from $15.1M in 2016 to $18M in 2017. c. Net Profit before taxation grew by 29.2% to $1.9M. d. Conversion of the Arima Banquet Hall, renovation of Artisan Units 7, 8, 9 and 10 and the Conference Room at La Joya to accommodate ECU offices. e. Refurbishment of the third floor of the La Joya Administrative Complex. f. Renovation of the St. Joseph Branch.
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g. Developed and landscaped the Gazebo on the north-eastern end of EPL offices for events rental. h. Outfitted the basement and ground floors of the building to accommodate ECU’s Tobago Branch. i. Converted Apartment 7 at La Joya, St. Joseph, to an Executive Suite for rental. j. Provision of additional parking space by removal of the island at the La Joya East Car Park While EPL’s financial performance in 2017 fell short of expectations, the Chairman was optimistic that the company would achieve or even exceed the targets set for 2018. In response to a question regarding the Executive Suites, the Chairman indicated that: 1. Eastern Credit Union (Shareholder) granted approval for EPL Properties Limited to convert three residential apartments at La Joya to Executive Suites. 2. Research was undertaken on comparative suites within the community with regard to pricing, but no decision has yet been taken. 3. The Executive Suites will be outfitted with modern facilities inclusive of Wi-Fi. One suite will be completed and ready for viewing on Friday July 27, 2018. The Chairman’s Report, as amended, was unanimously accepted on a motion of Mr. Marlon Mark Phillips and seconded by Director Brent Hewitt-Borde.
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8.0 AUDITORS’ REPORT Mr. Dwayne Rodriguez-Seijas of PricewaterhouseCoopers, External Auditors, with the approval of the Shareholder’s Representative, read the Opinion and Basis for Opinion sections of the Auditors’ Report on the Unconsolidated Financial Statements for the year ended December 31, 2017. 8.1 Adoption The Auditors Report was unanimously adopted on a motion moved by Mr. Marlon Mark Phillips, and seconded by Director Jameel Mohammed. 9.0 AUDITED FINANCIAL STATEMENTS The Audited Unconsolidated Financial Statements for the year ended December 31, 2017 were tabled for discussion. 9.1 Amendment The Financial Statements were amended at page 30 by deleting the information assigned to Note 16, since it is a duplication of what appeared on page 29. 9.2 Adoption The Audited Unconsolidated Financial Statements for the year ended December 31, 2017, as amended, were unanimously adopted on a motion by Mr. Marlon Mark Phillips and seconded by Director Janelle Benjamin. 10.0 AMENDMENT OF AGENDA On a motion by Mr. Marlon Mark Phillips, and seconded by Director Janelle Benjamin, the Agenda was amended to coincide with the listing of the Resolutions on page 54 of the Annual Report 2017.
11.0 RESOLUTIONS 11.1 Audited Financial Statements and Chairman’s Report The following Resolution was presented for approval: Be it resolved that the Audited Financial Statements and the Chairman’s Report for the year ended December 31, 2017 be hereby approved and adopted. However, the Chairman pointed out that the items were approved separately, earlier in the proceedings. (See page 10). 11.2 Dividend The following resolution was accepted on a motion moved by Director Wayne Estrada and seconded by Mr. Marlon Mark Phillips: Be it resolved that a dividend in the sum of eight hundred thousand dollars ($800,000.00) be paid to the Shareholder, based on the financial returns of EPL Properties Limited as at December 31, 2017. 11.3 Appointment of Auditors and Authorisation of Directors to Set Remuneration The following resolution was accepted on a motion moved by Director Wayne Estrada and seconded by Mr. Marlon Mark Phillips: Be it resolved that PricewaterhouseCoopers, be and are hereby appointed Auditors, until the next Annual General Meeting of the Company and that their remuneration be fixed by the Directors. 11.4 Appointment of Directors of the Company in accordance with the Companies Act 1995 a. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
Be it resolved that Mr. Brent Hewitt-Borde be and is hereby re-appointed as an Independent Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
b. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
Be it resolved that Mr. Jameel Mohammed be and is hereby appointed as an Independent Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
c. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
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Be it resolved that Mrs. Gloria Rolingson be and is hereby appointed as an Independent Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
d. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
Be it resolved that Ms. Janelle Benjamin be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
e. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
Be it resolved that Mr. Ronald Bobb be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
f. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Brent Hewitt-Borde: 12
Be it resolved that Mr. Wayne Estrada be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
g. The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada:
Be it resolved that Mr. Clyde Herbert be and is hereby appointed as a Director of the Company for the term of office beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.
11.5 Shareholder’s Representative The following resolution was unanimously accepted on a motion moved by Mr. Marlon Mark Phillips and seconded by Director Wayne Estrada: Be it resolved that Mr. Cyril Barran be appointed Shareholder’s Representative for the period beginning July 26, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. 12.0 OTHER BUSINESS The Chairman invited comments from the Group Chief Executive Officer, the Chief Operating Officer and invited guests.
The Group Chief Executive Officer remarked that: •
During 2018-2019, the traditional model of revenue from the Eastern Credit Union, would be less of a contributing factor to the Group’s financial strength because of issues concerning IFRS 9 and delinquency. The subsidiary will therefore be required to play a th September 13role 2019 greater in closing that gap. •
Eastern Credit Union had been working with the EPL to refine its business processes in NOTICE an attempt make it more relevant and responsive this initiative has been OFtoTHE SIXTEENTH ANNUAL GENERAL and MEETING somewhat successful.
NOTICE
NOTICE is hereby given that the Sixteenth Annual General Meeting of the • Some ECU projects earmarked to be undertaken by EPL in the new term are the St. Shareholder EPL and Properties Ltd. (The Company) would be held at the Eric Joseph,ofArima Chaguanas Branches. Williams Multi-Purpose Facility, La Joya, Eastern Main Road, St. Joseph at 5.00 pm The Chief Operating Officer thanked the outgoing Board for its contribution and stated on Friday 4th October 2019. that he looked forward to the continued support of the new Board. He expressed the hope that they would achieve the synergistic relationship that would eliminate the inefficiencies currently being experienced. He then expressed gratitude to the Group Chief Executive Ordinary Business Officer and his Executive Team and also the Executive Team of EPL Properties Ltd. 1.David Welcome Mr. Taitt, Member of the Supervisory Committee of Eastern Credit Union, called for the Shareholder’s Representative with theAnnual Shareholder least once every six months. 2. Confirmation of the Minutesto ofmeet the Fifteenth GeneralatMeeting held on 26th July, 2018 The Chairman expressed gratitude to the outgoing Director, Mr. Marlon Mark Phillips, for 3. Chairman’s service renderedReport and also for performing the role of Shareholder’s Representative. He also thanked all those contributed to the success of the Fifteenth 4. To receive andwho consider the Audited Financial Statements of the Annual General Meeting. st Company Mr. for the financial year endedthanked December 31Chairman , 2018 for his kind words, In conclusion, Marlon Mark Phillips the complimented Chief Operating Officer, the Executive and other employees of EPL for 5. To appointthe Directors their professionalism and wished them all the best in the future. 6. To appoint an External Auditor of the Company for the Financial year
ending December 31, 2019 ADJOURNMENT 7. To transact any other business There being no further business to discuss, the meeting was brought to a close at 6.30 p.m. By order of The Board --------------------------------------------……………………………….. Gloria Rolingson (Mrs.) Gloria Rolingson Corporate Secretary Corporate Secretary
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BOARD OF DIRECTORS
Mr. Wayne Estrada
Ms. Janelle Benjamin
Mrs. Gloria Rolingson
Ronald Bobb
Mr. Clyde Herbert
Mr. Brent Hewitt-Borde
Mr. Jameel Mohammed
Mr. Cyril Barran
CHAIRMAN
VICE-CHAIRMAN
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CORPORATE SECRETARY
DIRECTOR (INDEPENDENT)
DIRECTOR
DIRECTOR (INDEPENDENT)
DIRECTOR
SHAREHOLDER REPRESENTATIVE
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MANAGEMENT
Ms. Acacia de Verteuil
MANAGER – BUSINESS DEVELOPMENT AND MARKETING
Ms. Ayana St. Louis
MANAGER – FINANCE AND ACCOUNTING
Mr. Garvin Toussaint FACILITIES MANAGER
CHAIRMAN’S REPORT
TO THE SIXTEENTH ANNUAL GENERAL MEETING OF EPL PROPERTIES LTD (EPL) Held on 4th October 2019
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1. INTRODUCTION As we approach our eighteenth year of our Company’s existence, I am pleased to report to this Annual General Meeting on the company’s operations over the past year. This Board’s term of office began on July 26th 2019 following our appointment at the AGM and this report endeavours to give account of our stewardship since that time to the end of August 2019. This has been a very hectic period during which we encountered internal and external challenges but with the strong resolve and commitment of the employees of EPL led by the executive management team, and the oversight of the Board, we have been able to achieve some of our budgetary targets and attain several of the goals outlined in our Strategic plan 2017-2019. I therefore wish very early in my report to thank everyone involved in this team effort including our employees, executive management team, our shareholder representative and my fellow Board members for their contribution to our results during the past year. This would include of course a review of our financial performance for the year ending December 31st 2018. 2. BOARD OF DIRECTORS At the Fifteenth Annual General Meeting held on July 26th 2018, the following persons were appointed to serve as Directors and are now outgoing: Mr. Wayne Estrada Ms. Janelle Benjamin Mr. Ronald Bobb Mr. Clyde Herbert Mr. Brent Hewitt-Borde Mr. Jameel Mohammed Mrs. Gloria Rolingson
- - - - - - -
Chairman Vice-Chairman Director Director Independent Director Independent Director Independent Director
Mr. Cyril Barran was appointed as the Shareholder Representative. At its first meeting the Board agreed to appoint Director Gloria Rolingson to serve as Corporate Secretary in accordance with its By Laws. The following assignments were also made to the Standing Committees of the Board: Audit and Risk Management- Gloria Rolingson (Chairman), Ronald Bobb, Brent Hewitt-Borde, Clyde Herbert.
Ancillary Services- Janelle Benjamin (Chairman), Wayne Estrada, Gloria Rolingson. Governance and Human Resources- Wayne Estrada (Chairman), Janelle Benjamin, Jameel Mohammed Projects and Tenders-Brent Hewitt- Borde(Chairman), Janelle Benjamin, Ronald Bobb, Wayne Estrada, Jameel Mohammed, Clyde Herbert Nominees appointed to serve on the ECU/EPL MOU Committee were Brent Hewitt Borde and Janelle Benjamin Representatives of the Executive Management Team also served on these Committees in accordance with their assigned duties and responsibilities. 3. THE EXECUTIVE MANAGEMENT TEAM As at the date of this report the members of the Executive Management team of EPL are as follows: Mr. Charles Mitchell Ms. Ayana St. Louis Ms. Acacia de Verteuil Mr. Garvin Toussaint
Chief Operating Officer (Interim) Manager, Finance and Accounting Manager, Business Development and Marketing Facilities Manager
It is to be noted that Mr. Darnley Faria resigned the position of Chief Operating Officer in May 2019 and Mr. Charles Mitchell has been appointed as his replacement on an interim basis. I take this opportunity to thank Mr. Faria for his contribution to EPL for the past five (5) years and to welcome Mr. Mitchell on Board. The members of this team are supported at the Group level by the ECU appointed Group Executive Management team that facilitates the synergy required to attain the Strategic goals enunciated for the group. The current Group Executive Management Team is as follows: Mr. Christopher Lewis Group Chief Executive Officer Mrs. Sherry Ann Mc Donald-Joseph Ag, Deputy Chief Executive Officer Mr. Marlon Boucaud Ag. Group Financial Comptroller Mr. Kester Regis Group Executive Manager, Marketing, Research and Business Development I wish to express sincere gratitude to Mr. Conrad Enill, former Group CEO who left the organisation in October 2018 and to Mr. Steve Albino, former Ag. Group CEO who retired in August 2019 after many years of dedicated service to the ECU Group. 4. THE EXTERNAL ENVIRONMENT During the year, we continued to monitor the external environment in order to respond to changes or challenges that impacted on our operations. Although the economy was reported to have achieved marginal growth in 2018, labour market conditions remained sluggish as several enterprises in the energy and non-energy sector implemented job cuts or closed their operations resulting in higher numbers of unemployed. The inflation rate remained somewhat stable, while the foreign exchange shortages in some areas made it difficult for financial institutions to respond to the demand for hard currency for business and personal transactions. The extent of criminal activity continues to be a major issue affecting the lives of both individuals and corporations, with many taking action to expend
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substantial resources on protective measures. In addition, as the global technological advancements present greater business opportunities and challenges, EPL continues to monitor these in order to identify opportunities to expand its service offerings or to improve its operational efficiency. 5. STRATEGIC PLAN 2017-2019 Our current Strategic Plan 2017-2019 will expire at the end of 2019. We are pleased to report that several of the goals set out this plan have been attained, including some that were identified a critical success factors that would enable management to deliver on its objectives. These are as follows: • • • • • • • • • • • • 18
Expansion and upgrade works to the Sporting Complex and swimming pool areas. Purchase of new and modern weight room equipment Renovation and upgrade works to the Conference Room Conversion of the Auditorium into a Multi-use Facility Recruitment and hiring of identified new staff Purchase of new investment properties Conversion of the La Joya residential units to commercial rentable floor space. Relocation of EPL’s Administrative offices to the converted residential apartments at Mt. Lambert. Conversion of Artisan Units #8, 9, 10 and 12 into rentable commercial spaces for Eastern Credit Union. Installation of a new and upgraded Sewer Treatment Plant. Installation of a new back-up generator at La Joya Complex. Implementation of an up to date/ current salary structure to support productivity, performance and to boost employee morale.
The progress made in achieving several of these targets will be discussed further in the relevant sections of this report. 6. FINANCIAL PERFORMANCE The Audited Financial Statements for the year ended 31st December 2018 show that our company’s income was $19.3 million in 2018 compared to $18.0 million in 2017. This was due mainly to an increase in the rental income from office space at La Joya. While this is welcome, the organisation continues to pursue various initiatives aimed at reducing our dependency on income from rental of office space to our shareholder. It is envisaged that our property development activities are the main vehicle through which this strategic goal would be realized. Expenditure on the other hand fell to $15.3 million in 2018 compared to $16.1 million in the previous year. This resulted from a $1.3 million reduction in administrative expenses over the period. Consequently, the company’s profit before tax more than doubled by 24.6 percent from $1.1 million in 2017 to $2.8 million in 2018. . Our asset base also expanded by $2.5 million (2.5 percent) during the year and stood at $115.8 million at the end of 2018. This could be attributed mainly to a $2.2 million increase in the value of current assets arising from an increase in the value of investments held in the Unit Trust Corporation. On the Equity and Liabilities side of the Balance sheet the largest movement was in the value of retained earnings which rose by $2.0 million from $22.1 million in 2017 to 24.2 million in 2018. It should be noted that the actual income ($19.3 million), expenditure ($15.3 million) and surplus ($2.8 million) attained in financial year 2018 were lower than the projections contained in the strategic plan of $21.0 million, $17.6 million and $3.3 million respectively.
EPL PROPERTIES LIMITED PERFORMANCE TRENDS 2015-2018
$M
REVENUE
EXPENDITURE
SURPLUS
It is evident that the financial performance of the company is showing very favourable trends. Our major challenge, therefore, is to ensure that our return on investment improves substantially within the medium term in order to meet our shareholder’s expectations for an attractive return on its investment. To this end, we have tweaked our growth strategy towards projects that will enable us to realise higher returns in the short to medium term. Among these are two revenue-generating events conceptualized by management that were implemented during the review period, viz: •
•
The Mix – An Edutainment Series featuring players in the entrepreneurial field. The series is a bi-monthly event with a wide range of speakers and activities geared toward entrepreneurs looking for tips and tricks of the trade. The event is being widely promoted on social media and has attracted moderate interest thus far with the potential for growth. Latin Dance Lime – A monthly high-energy dance event with a workshop format. The event welcomes patrons to practice their dancing skills and those desirous of learning , introduction all Latin styles such as Kizomba, Salsa, Merengue and more. The event is increasing in popularity and is expected to become a staple offering in EPLs product mix.
7. HUMAN RESOURCE DEVELOPMENT a. Human Resource Department In order that we did not lose our momentum in developing our human resources we took steps, beginning in late 2018, to recruit a Human Resources Officer with responsibility for the HR function including recruitment, benefit administration, training and development, performance management, employee relations and policy development and implementation. This process was completed in April 2019 as the search for a suitable candidate had to be extended.
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b. Training and Development Both managerial and non-managerial personnel were exposed to training in several areas to enable them to perform their duties with greater efficiency. These programmes were in the following areas: • • • • • • •
Basic & Intermediate Excel AML CFT Compliance Communication Sales and Marketing Contract Management Records Management Coaching & Effective Feedback for Managers
The sales training was provided to selected staff including the Events Unit with the purpose of creating a culture of sales throughout the organization. It included modules on the purposes of upselling and cross-selling of products and services. In addition, in XXX 2019 all employees were exposed to HSSE training that is appropriate for EPL’s operations. In fulfilment of its legal obligations annual Anti- Money Laundering and Combating the Financing of Terrorism (AML/CFT) Training for the EPL Board and members of the management team was conducted at the ECU Orientation retreats held in August 2019.
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c. Industrial Relations The Board of Directors acknowledges the importance of maintaining a harmonious industrial relations climate and in building a work environment that is conducive to high performance. Our annual staff session was held in May 2019 and all employees and Board members spent some quality time together reflecting on our successes, having fun together and building camaraderie. The Board also agreed to an 8 percent increase in salaries for non-managerial staff with effect from January 2019. In addition, based on expert advice, the Board took the decision to transition the custodians who previously operated as independent contractors to employees on fixed term contracts effective March 1st 2019. These employees now enjoy benefits such as paid leave and health insurance. In addition, all statutory payments such as NIS would be paid on their behalf. This resulted in an increase in the staff complement by 14 persons. It should be noted that the contracts of employment of these personnel are aligned to specific revenue contracts. d. Flood Relief The Board agreed that the EPL staff members adversely affected by flooding in October 2018 would be afforded a Flood Relief Package which included the provision of loan facilities by the shareholder ECU if required and a grant of $5,000 based on an assessment of their circumstances. Two employees benefited from this facility. e. Change of Health Insurance Provider In December 2018 the Board accepted management’s recommendation to change the employee health insurance provider from TATIL to Sagicor Life Inc. This has afforded employee plan with additional benefits that is easier to manage both for the employee and the company.
8. GOVERNANCE a. Audit and Risk Committee The board was assisted in the performance of its audit an risk management functions by the Audit and Risk Committee which during its monthly deliberations also reviewed the monthly management financial statements, reports on statutory filings, internal audit reports, insurance and other mattters that impact on the risk profile of the company. b. COO Reporting Requirements Arrangements In August 2018 the Board decided to require the COO to report directly to the Group CEO . Prior to this, the position reported only to the Board of the Directors of the company. This decision was intended to enable greater alignment between the strategic direction of company and its parent credit union. c. Structural Assessment Of Buildings – Post Earthquake Following the strong earthquake in Trinidad in August 2019, the Board immediately commissioned a report on the integrity of its building stock, inclusive of the La Joya Complex, the Mt. Lambert apartments, and the ECU branches. The report revealed that there were no adverse or threatening conditions following the earthquake. However, it recommended structural strengthening of the vault in the Tunapuna branch as a precautionary measure. These remedial works were completed shortly afterwards. d. Updating of Lost of Pre-qualified Vendors In accordance with its procurement policy, during the first half of 2019 the Board and management undertook the painstaking exercise of updating our list of pre-qualified vendors for goods and services. This exercise involved the careful examination of the credentials of all applicants including financial information, academic and technical certification of personnel, work experience and HSSE policies. The updated list , consisting of 88 vendors, would be used to procure goods and services thereby enabling greater transparency in the award of contracts. 9. PROJECTS In furtherance of our strategic goals and objectives, several projects were initiated or continued during the review period, some of which fell under the purview of the Projects Committee. These included the following: a. Conversion of Residential apartments to commercial spaces In order to improve our income streams and profitability, the Board took a decision to convert all the apartments that were formerly leased for residential purposes in the La Joya complex to commercial spaces. Two of these were to be converted to Executive suites to be offered to local and overseas guests at competitive rates. The first suite (The Opal) was completed in September 2018 and the second (The Sapphire) in February 2019. Management has stepped up promotion of these suites in an effort to increase the occupancy rates. b. Construction of an Apartment Building in Sorzano Street Arima The house building located in Sorzano Street in Arima was demolished to make way for the construction of an apartment building with four apartments to be offered for sale. In August 2019 we received Town and Country approval to proceed with the construction. The targeted completion date for this project is July 2020. c. Offsite Parking The shortage of parking space for employees and customers at the La Joya compound continues to pose a major challenge to management especially in light of plans to
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expand the range of activities and services offered at this location. The Board recently approved a plan for offsite parking which will have the effect of increasing the number of spaces available for employees as well as customers. The plan involves improvement works at a property located in Narine Trace in proximity to La Joya, as well as upgrades of the Southwestern and Southeastern carparks at La Joya. This project is earmarked for completion during the last quarter of 2019. d. Sporting Complex Upgrade The implementation of this project has been somewhat protracted due to delays in completion of the physical plant upgrades as well as the procurement of new equipment. due to various concerns, among them the integrity of the site for structural upgrades. proposal to upgrade the equipment at a budgeted cost of $700,000.00 was approved. and consideration of the structural assessment to be conducted by a Structural Engineer. e. Back-Up Electricity Supply at La Joya This project is considered high priority and is currently in progress with an expected implementation date of December 2019. f. Re-Branding And Marketing Compound Signage The Board has directed management to pursue a synergistic approach with the Group Executive management with regard to signage located on the La Joya compound. This would allow for cost efficiencies and more effective branding both by ECU and EPL. This is a work in progress, the effects of which are expected to be seen in the near future.
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The Board also approved the procurement of advertising screen/digital signboard which would support the advertising of ECU Group events and provide opportunities for earning revenue from external customers. g. AC System – Eric Williams Auditorium With the installation of Split units in the Eric Williams Auditorium in August 2018, the space now enjoys a guaranteed AC supply in the event of breakdowns in the central airconditioning thereby enhancing the quality service delivery to our customers. h. Installation Of Generator – ECU POS Branch This project was completed in August 2019. i. Acquisition of Land for the ECU Tobago Branch EPL continues to explore opportunities for a suitable parcel of land for the construction of an ECU Branch in Tobago. In this regard management has been liaising with the shareholder regarding the possible acquisition of a parcel of land identified by EPL in the Lowlands area. . 10. MEMORANDUM OF UNDERSTANDING (MOU) As we near the tenth anniversary of last revision of the MOU between ECU and EPL, the planned revision of the MOU was not completed during the review period as expected due to challenges encountered with the consultancy arrangements for drafting the Service Level Agreements. This is currently being addressed and It is envisaged that a revised MOU would facilitate a more effective allocation of services between ECU and EPL.
11. AT TENDANCE AT BOARD MEETINGS The following table summarises the attendance of Board members at the monthly and special board meetings held during the period August 2018 to August 2019 Attendance at Board Meetings (August 2018 To August 2019)
Wayne Estrada Janelle Benjamin Gloria Rolingson Clyde Herbert Ronald Bobb Brent Hewitt-Borde Jameel Mohammed
STATUTORY MEETINGS Present Excused 12 1 12 1 12 1 13 0 11 2 13 0 11 2
SPECIAL MEETINGS Present Excused 7 0 5 2 7 0 7 0 7 0 7 0 6 1
12. CONCLUSION The Board of Directors thanks management and employees of EPL for their dedication to duty which enabled us to achieve many of our plans for the organisation during our period of stewardship. I am therefore pleased to submit this report, on behalf of the Board of Directors, to this Annual General Meeting for its consideration and acceptance. 23
Wayne Estrada CHAIRMAN
THE SAPPHIRE SUITE
Stay at the EPL Executive Suites. eplpropertiesltd.com
AN EPL YEAR IN PHOTOS Great minds think alike.
The EPL team going around and meeting everyone with the 2019 Nadia Batson tune “So long I ain’t see yuh!
EPL Manager - Business Development and Marketing, Ms Acacia de Verteuil, taking out group photo for an Event - The Mix
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Team Work putting the puzzle together.
Great minds think alike.
26
UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018
27
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES
Management is responsible for the following: •
• • • •
28
• •
Preparing and fairly presenting the accompanying unconsolidated financial statements of EPL Properties Limited (the Company), which comprise the unconsolidated statement of financial position as at 31 December 2018 and the unconsolidated statements of comprehensive income, changes 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 Company operational efficiencies; Ensuring that a system of internal control is operated effectively during the reporting period; Producing reliable financial reporting that comply with laws and regulations, including the Companies Act; and Using reasonable and prudent judgment in the determination of estimates.
In preparing these audited unconsolidated 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 unconsolidated financial statements have been authorised for issue, if later. Management affirms that it has carried out its responsibilities as outlined above.
INDEPENDENT AUDITOR’S REPORT
To the shareholders of EPL Properties Limited REPORT ON THE AUDIT OF THE UNCONSOLIDATED FINANCIAL STATEMENTS OUR OPINION In our opinion, the unconsolidated] financial statements present fairly, in all material respects the unconsolidated financial position of EPL Properties Limited (the Company) as at 31 December 2018, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. WHAT WE HAVE AUDITED The Company’s unconsolidated financial statements comprise: • the unconsolidated statement of financial position as at 31 December 2018; • the unconsolidated statement of comprehensive income for the year then ended; • the unconsolidated statement of changes in equity for the year then ended; • the unconsolidated statement of cash flows for the year then ended; and • the notes to the unconsolidated financial statements, which include a summary of significant accounting policies. 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 unconsolidated financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code. RESPONSIBILITIES OF MANAGEMENT FOR THE UNCONSOLIDATED FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the unconsolidated 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.
29
INDEPENDENT AUDITOR’S REPORT (CONTINUED) AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE UNCONSOLIDATED FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the unconsolidated 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 unconsolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: •
30
• • •
•
Identify and assess the risks of material misstatement of the unconsolidated 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 unconsolidated 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. Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the disclosures, and whether the unconsolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
Port of Spain Trinidad, West Indies 21 August 2019
UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION
(EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Notes
2018 $
As at 31 December
2017 $
Assets NON-CURRENT ASSETS
FVOCI - Investments Due from related party Property plant and equipment Investment property
5 6 7 8
769,115 5,910,014 1,757,238 93,634,991
724,512 5,786,983 1,840,083 93,193,446
102,071,358
101,545,024
669,699 11,821,706 1,283,081
1,008,695 9,696,535 1,104,845
13,774,486
11,810,075
115,845,844
113,355,099
59,705,976 271,013 24,154,942
59,705,976 226,410 22,115,456
84,131,931
82,047,842
3,292,306 18,428,668 5,737,843
3,833,132 19,469,648 4,751,730
27,458,817
28,054,510
3,185,559 28,556 1,040,981
2,175,818 28,565 1,048,364
4,255,096
3,252,747
115,845,844
113,355,099
CURRENT ASSETS
Cash at bank and in hand Amortised Cost - Investments Accounts receivable and prepayments
9 10 11
Total assets Equity and liabilities SHAREHOLDER’S EQUITY
Stated capital Investment re-measurement reserve Retained earnings
12 13
NON-CURRENT LIABILITIES
Due to related party Loans – non-current portion Deferred taxation
6 14 15
CURRENT LIABILITIES
Accounts payable and accruals Corporation tax Loans – current portion Total liabilities and shareholder’s equity
16 14
The notes on pages 8 to 35 are an integral part of these unconsolidated financial statements. The unconsolidated financial statements were authorised for issue by the Board of Directors of EPL Properties Limited on August 13 2019 and were signed on its behalf.
31
UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Notes
2018 $
As at 31 December
2017 $
Income Rental income Investment income Gym income Other income Gain on disposal of fixed assets
12,935,893 148,529 2,318,903 3,849,282 205
12,272,652 155,265 2,194,556 3,390,790 --
19,252,812
18,013,263
6,566,260 1,811,433 236,160
7,801,099 1,909,063 206,662
396,337
409,953
6,301,200
5,767,452
Total expenditure
15,311,390
16,094,229
Net profit before taxation
3,941,422
1,919,034
(1,101,935) 2,839,487
(748,446) 1,170,588
44,603
(67,470)
2,884,090
1,103,118
Expenses Administrative Finance costs Marketing expenses
18
Officers’ expenses Personnel costs
32
Taxation Other comprehensive income
19
20
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
Unrealised gain/loss on FVOCI-Investments
The notes on pages 8 to 35 are an integral part of these unconsolidated financial statements.
UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Balance as at 1 January 2017 Total comprehensive income Dividend Balance as at 31 December 2017
Balance as at 1 January 2018 Total comprehensive income Dividend Balance as at 31 December 2018
Stated capital
Investment Re-measurement Reserve
Retained earnings
Total Shareholder’s Equity
$
$
$
$
59,705,976 --
293,880 (67,470)
20,994,867 1,170,589
80,994,723 1,103,119
--
--
(50,000)
(50,000)
59,705,976
226,410
22,115,456
82,047,842
59,705,976 --
226,410 44,603
22,115,456 2,839,487
80,994,723 1,103,119
--
--
(800,000)
(800,000)
59,705,976
44,603
24,154,943
84,131,932
The notes on pages 33 to 53 are an integral part of these financial statements.
33
UNCONSOLIDATED STATEMENT OF CASH FLOWS
(EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Year ended 31 December 2018 2017 Cash flows from operating activities Net profit before taxation Adjusted for: Bad debts written-off Depreciation Items written off (Gain)/loss on disposal of fixed assets
34
$
$
3,941,422
1,919,035
1,971,654
1,962,616
(205) 5,912,871
-3,881,651
Changes in non-cash working capital amounts Increase in accounts receivable and prepayments Decrease in accounts payable and accruals Increase in due from related party Net change in due to related party Taxes paid Net cash generated from operating activities
(178,239) 1,009,740 (123,033) (540,826) (115,824) 5,964,689
(296,797) 1,572,424 (3,014,599) 815,776 (83,455) 2,875,000
Cash flows from investing activities Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Net cash used in/generated from investing activities
8,000 (2,338,149) (2,330,149)
111,368 (3,774,918) (3,663,550)
Cash flows from financing activities Decrease in loans Dividends paid Increase in stated capital
(1,048,363) (800,000)
(1,178,920) (50,000)
Net cash used in financing activities
(1,848,363)
(1,228,920)
Net increase/(decrease) in cash and cash equivalents
1,786,175
(2,017,470)
Cash in hand and at bank: - at beginning of year - at end of year
10,705,230 12,491,405
12,722,700 10,705,230
669,699 11,821,706 12,491,405
1,008,695 9,696,535 10,705,230
Represented by: Cash in hand and at bank Amortised Cost - Investments
The notes on pages 33 to 53 are an integral part of these unconsolidated financial statements.
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
1. GENERAL INFORMATION The Company, EPL Properties Limited, is incorporated in the Republic of Trinidad and Tobago. The main source of revenue is derived from the rental of properties. Its registered office is situated at La Joya Complex, Eastern Main Road, St. Joseph. It is the wholly-owned subsidiary of Eastern Credit Union Cooperative Society Limited. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these unconsolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. a. Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and under the historical cost convention. The preparation of these financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. There are no areas where assumptions and estimates are significant to the company’s unconsolidated financial statements. b. Use of estimates The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company’s accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. c. Changes in accounting policies and disclosures (i) New standards, amendments and interpretations adopted by the Company The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2018: •
IFRS 9 – Financial Instruments IFRS 9 addresses the classification, measurement and de-recognition of financial assets and financial liabilities and introduces new rules for hedge accounting. In July 2014, the IASB made further changes to the classification and measurement rules and introduced a new impairment model. These latest amendments now complete the new financial instruments standard. The new impairment model is an Expected Credit Loss (ECL) model which may result in the earlier recognition of credit losses. Mandatory adoption is expected for fiscal year beginning 1 January 2018.
35
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Changes in accounting policies and disclosures (continued) (i) New standards, amendments and interpretations adopted by the Company (continued) Classification of financial assets and financial liabilities IFRS 9 contains three principal classification categories for financial assets: • • •
Measured at Amortised Cost; Fair Value Through Other Comprehensive Income (“FVOCI”); and Fair Value Through Profit or Loss (“FVTPL”). The classification is based on the Company’s business model for managing financial assets and the contractual cash flow characteristics of the financial asset. The standard eliminates the existing IAS 39 categories held-to-maturity, loans and receivables and available-for-sale. The Company’s classification of its financial assets can be seen in Note 3. IFRS 9 retains most of the existing requirements of IAS 39 for the classification of financial liabilities. However, although under IAS 39 all fair value changes of liabilities designated under the fair value option were recognised in profit or loss, under IFRS 9 fair value changes are generally presented as follows:
36 •
The amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in Other Comprehensive Income (“OCI”); and
•
The remaining amount of change in the fair value is presented in profit or loss. The Company’s classification of its financial liabilities can be seen in Note 3. IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘Expected Credit Loss’ model. The new impairment model also applies to certain loan commitments and financial guarantee contracts but not to equity investments. IFRS 9 requires that credit losses are recognised earlier than under IAS 39.
•
IFRS 15 – Revenues from Contracts with Customers – The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards. Mandatory adoption is expected for fiscal year beginning 1 January 2018. The adoption of these amendments did not have any material impact on the amounts recognised in prior periods.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Changes in accounting policies and disclosures (continued) (ii) New standards, amendments and interpretations not yet adopted Many new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2018 and have not been applied in preparing these unconsolidated financial statements. None of these are expected to have a significant effect on the consolidated financial statements of the Company except the following set out below: •
IFRS 16 - Leases (effective 1 January 2019) eliminates the classification of leases as either operating leases or finance leases for a lessee. Instead all leases are treated in a similar way to finance leases applying IAS 17. Leases are ‘capitalised’ by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, a company also recognises a financial liability representing its obligation to make future lease payments. The most significant effect of the new requirements will be an increase in lease assets and financial liabilities. The Company is yet to assess the impact of IFRS 16.
There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company. d. Property plant and equipment Fixed assets are stated at cost/valuation less accumulated depreciation. Depreciation for Property Plant & Equipment is provided for on a diminishing basis. The following rates considered appropriate to write-off the assets over their estimated useful lives are applied: Furniture, fixtures and fittings - 20% Office and other equipment - 10 - 20% Computer equipment - 20% Motor vehicles - 25% No depreciation is provided on land and capital work-in-progress. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
EPL ANNUAL REPORT 2018
37
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) e. Investment property Investment properties are owned by the Company and held for long-term rental income and capital appreciation. and exclude properties occupied by the Company. Investment properties are stated at cost less accumulated depreciation and impairment. Transaction costs are included on initial measurement. The fair values of investment properties are disclosed in Note 8. These are assessed using internationally accepted valuation methods, such as taking comparable properties as a guide to current market prices or by applying the discounted cash flow method. Investment properties are depreciated on a diminishing balance basis. Investment properties cease recognition as investment property either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. Gains or losses arising from the retirement or disposal of investment property are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the consolidated statement of profit or loss in the period of the retirement or disposal.
38
f. Revenue recognition policy Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Revenue is recognised when control of a good or service transfers to a customer, the notion of control replaces the existing notion of risks and rewards. A new five-step process must be applied before revenue can be recognised: • Identify contracts with customers • Identify the separate performance obligation • Determine the transaction price of the contract • Allocate the transaction price to each of the separate performance obligations, and • Recognize the revenue as each performance obligation is satisfied. Key changes to current practice are: • Any bundled goods or services that are distinct must be separately recognised, and any discounts or rebates on the contract price must generally be allocated to the separate elements. • Revenue may be recognised earlier than under previous standards if the consideration varies for any reasons (such as for incentives, rebates, performance fees, royalties, success of an outcome) – minimum amounts must be recognised if they are not at significant risk of reversal. • The point at which revenue can be recognised may shift: some revenue which is currently recognised at a point in time at the end of a contract may have to be recognised over the contract term and vice versa. Revenue is derived from the following main sources: EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) g. Rental income Rental income is derived primarily from three sources, and is recognised over the period the service is provided: i. Residential clients:
The Company provides residential apartments available for let to the general public, subject to certain terms and conditions appropriate for this activity. The term of the rental agreement is one year, and rent is invoiced and due at the beginning of each month, “in advance”.
ii. Commercial clients:
The Company derives rental income from commercial clients. These tenants have rental agreements of between one-year and three-year terms with conditions for renewal. The rent is invoiced and due at the beginning of each month, “in advance”.
iii. Executive suites:
The Company derives rental income from individuals on a short-term basis. Payments for such spaces are received in advance of stay.
iv. Event rentals:
The Company derives income from the sale of rental halls. All payments are received in advance of use. In the last month of the Financial Year, payments are not accepted. This ensures that at the Company’s Financial Year End, the Company has no performance obligations to these customers.
v. Investment income
Investment income is derived from Short Term deposits, held with the Unit Trust Corporation and is recognised on an accrual basis. Investment income is not within the scope of IFRS15 and the accounting policy has not changed.
vi. Gym income
Income is derived from both daily use and monthly use of the facilities. Some of these payments are for daily use of the facilities, which are accounted for at a point in time and most are for monthly memberships, which are accounted for over time. In the last month of the Financial Year, monthly membership payments are pro-rated to the number of days to the Company’s Financial Year End. This ensures that no membership straddles the Company’s Financial Year End and the Company has no performance obligations to these members.
vii. Other Other income comprises mainly revenue derived from Facilities Maintenance EPL ANNUAL REPORT 2018
39
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) g. Rental income (continued) Services, which include Custodial and Project Management services to the Parent Company. Income is recorded over time as per contracts. Policies applicable for the year ended December 2017. Revenue recognition policy Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Revenue is shown net of value-add tax, returns, rebates and discounts. The Company recognises revenue when the amount of revenue can be measured reliably, and it is probable that future economic benefits will flow to the entity. Revenue for sale of goods is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer. Revenue from rendering of services is recognised when services are provided.
40
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the entity; • the stage of completion of the transaction at the end of the reporting period can be measured reliably; and • the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. h. Taxation Current tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Deferred tax Deferred income tax is provided, using the liability method on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognised for all taxable temporary differences except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Taxation (continued) Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry forward of unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at reporting date and reduced to the extent that it is no longer probable that enough taxable profit will be available to allow all or part of the deferred tax asset to be utilised. i. Financial instruments Under IFRS9 (Policy applicable 1 January 2018) Measurement methods Amortised cost and effective interest rate The amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest methods of any difference between that initial amount and the maturity amount, and for financial assets, adjusted for any loss allowance. When the Company revises the estimates of future cash flows, the carrying amount of the respective financial assets or financial liability is adjusted to reflect the new estimate discounted using the original effective interest rate. Any changes are recognised in profit or loss. Initial recognition and measurement Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument. All regular way purchases and sales of financial assets are recognised on the trade date, that is, the date on which the Company commits itself to purchase or sell an asset. A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the timeframe established generally by regulation or convention in the marketplace concerned. When financial assets or financial liabilities that are not designated at fair value through profit or loss are recognised initially, they are measured at fair value of the consideration given plus or minus transaction costs that are incremental and directly attributable to the acquisition of the asset. Financial assets or financial liabilities that are designated at fair value through profit or loss are recognised initially at fair value of the consideration given, the transaction costs attributable to the acquisition are expensed in profit or loss. EPL ANNUAL REPORT 2018
41
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) Immediately after initial recognition, an Expected Credit Loss allowance (ECL) is recognised for financial assets measured at amortised cost and investments in debt instruments valued at FVOCI which results in an accounting loss being recognised in profit or loss when an asset is newly originated. When the fair value of financial assets and liabilities differs from the transaction price in initial recognition, the Company recognises the difference as follows: a. When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a level 1 input) or based on a valuation technique that uses only data from observable markets, the difference is recognised as a gain or loss. b. In all other cases, the difference is deferred, and the timing of recognition of deferred day one profit or loss is determined individually. It is either amortised over the life of the instrument, deferred until the instrument’s fair value can be determined using market observable inputs, or realised through settlement.
42
Financial assets Classification and subsequent measurement The Company classifies its financial assets in the following measurement categories: • Fair value through profit or loss (FVPL) • Amortised cost The classification requirements for debt and equity instruments are described below. Debt instruments Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective, such as loans, government and corporate bonds and trade receivables purchased from clients in factoring arrangements without recourse. Classification and subsequent measurement of debt instruments depend on: ii. The Company’s business model for managing the asset; and iii. The cash flow characteristics of the asset. Based on these factors the Company classifies its debt instruments into one of the following two measurement categories: i. Amortised cost
Financial assets are measured at amortised cost if the assets are held to collect the contractual cash flows and the cash flows represent solely payments of principal and interest (SPPI), and the Company has not designated the assets as FVPL. The carrying amount of these assets are adjusted by an expected credit loss allowance recognised and measured in note 3 (ii). Interest income from these financial assets are included in income using the effective interest rate method.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) ii. Fair value through profit or loss
Any financial assets that do not meet the criteria for amortised cost are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at Fair value through profit or loss and is not part of a hedging relationship is recognised in the profit or loss statement within ‘Investment Income’ in the period in which it arises. Interest income from these financial assets are recognised in ‘Investment Income’ using the effective interest rate method.’
Business model The business model reflects how the Company manages assets in order to generate cash flows. That is, whether the Company’s objectives are solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash flows from the sale of assets. If neither of these is applicable, then the financial assets are classified as part of ‘other’ business model and measured at FVPL. Factors considered by the Company in determining the business model for a group of assets include past experience on how the cash flows for the assets were collected, how the asset’s performance is evaluated and reported to key management personnel, how risks are assessed and managed and how managers are compensated. SPPI - Solely Payments of Principal and Interest Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the Company assesses whether the financial instruments’ cash flows represent solely payments of principal and interest (the ‘SPPI test’). In making this assessment, the Company considers whether the contractual cash flows are consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified and measured at fair value through profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Reclassification The Company reclassifies debt investments when and only when its business model for managing those assets changes. The reclassification takes place from the start of the first reporting period following the change. Such changes are expected to be very infrequent and none occurred during the periods. Equity instruments Equity instruments are instruments that meet the definition of equity from the issuer’s perspective; that is, instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer’s net assets. Example of equity instruments include basic ordinary shares.
EPL ANNUAL REPORT 2018
43
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) The Company subsequently measures all equity instruments at fair value through other comprehensive income (FVOCI). The following therefore summarises classifications of Financial Instruments in the business models applied by the Company. Hold to Collect and Sell (FVOCI) Hold to Collect (Amortised Cost) Mutual Funds Cash Equity Instruments Term Deposits Accounts Receivables Impairment The Company assesses on a forward-looking basis the Expected Credit Loss (‘ECL’) associated with its debt instrument assets carried at amortised cost and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The Company recognises a loss allowance for such losses at each reporting date. The measurement of ECL reflects: 44
i. An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; ii. The time value of money; and iii. Reasonable and supportable information that is available without due cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. Derecognition Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (i) the Company transfers substantially all the risks and rewards of ownership, or (ii) the Company neither transfers nor retains substantially all the risks and rewards of ownership and the Company has not retained control. Financial liabilities Classification and subsequent measurement In both the current and prior period, financial liabilities are classified as subsequently measured at amortised cost. Derecognition Financial liabilities are derecognised when they are extinguished (I.e. when the obligation specified in the contract is discharged, cancelled or expires). Under IAS 39 – Policies applicable for the year ended December 2017 Financial instruments Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument. EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) The Company has classified its Financial Instruments as – Cash, Short Term Investments, Receivables; “Financial assets” – available for sale and held-to-maturity, Related Party Receivable and “Financial Liabilities” – Accounts Payable, Loan Obligations and Related Party Payable. Cash and cash equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates market value. Accounts receivables Accounts receivables are measured at initial recognition at fair value and are subsequently measured at Amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Comprehensive Income when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Available-for-sale These securities are intended to be held for an indefinite period but may be sold in response to the needs for liquidity or changes in interest rates, exchange rates or equity prices. After initial recognition, available-for-sale investments are measured at fair value with unrealised gains or losses recognised in the Investment Re-measurement Reserve. For actively traded investments, fair value is determined by reference to the Stock Exchange and other quoted market prices at the reporting date, adjusted for transaction costs necessary to realise the investment. For investments where there is no quoted market price, the carrying value is stated at cost, including transaction costs, less impairment losses. Held to maturity These are securities which are held with the positive intention of holding them to maturity and are stated at amortised cost less provisions made for any permanent diminution in value. Amortised cost is calculated by considering any premium or discounts on acquisition over the period of maturity using the effective interest rate method. Recognition of financial assets All regular way purchases and sales of financial assets are recognised or derecognised on the trade date, that is, the date on which the Company commits itself to purchase or sell an asset. A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the timeframe established generally by regulation or convention in the marketplace concerned. When financial assets are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the asset. EPL ANNUAL REPORT 2018
45
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) Financial assets are derecognised when the contractual rights to receive the cash flows expire or where the risks and rewards of ownership of the assets have been transferred. Impairment of financial assets The Company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Objective evidence that a financial assets or group of financial assets is impaired includes observable data that comes to the attention of the Company about the following loss events: i. Significant financial difficulty of the issuer or obligor. 46
ii. A breach of contract, such as default or delinquency in interest or principal payments. iii. It is becoming probable that the borrower will enter in bankruptcy or another financial reorganisation. iv. The disappearance of an active market for that financial asset because of financial difficulties. v. Adverse changes in legal factors that negatively impact the borrower. vi. Severe deterioration of the borrower’s assets that negatively impact the operations of the borrower. vii. Observable data indicating that there is a measurable decrease in the estimated cash-flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets in the group, including adverse changes in the payment status of borrowers in the Company or national or economic conditions that correlate with defaults on assets in the Company. The Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. Impairment losses are recorded in an allowance account and are measured and recognised as follows: EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) Impairment of financial assets (continued) The difference between the assets’ carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate is recognised in the Statement of Comprehensive Income. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improvement in the debtor’s credit rating), the previously recognised loss is reversed to the extent that the carrying amount of the financial asset does not exceed what the amortised cost would have been had the impairment not been recognised at the date that the impairment is reversed. The amount of the reversal is recognised in the Statement of Comprehensive Income. Financial liabilities When financial liabilities are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the liability. Financial liabilities are re-measured at amortised cost using the effective interest method. Financial liabilities are derecognised when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the Statement of Comprehensive Income. Accounts payable Accounts payable are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Provisions Provisions are recognised when the Company has a present legal or constructive obligation because of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, it carrying amount is the present value of those cash flows. Stated capital The Company’s shares are classified as equity.
EPL ANNUAL REPORT 2018
47
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
3. FINANCIAL RISK MANAGEMENT Financial instruments The following table summarises the carrying amounts and fair values of Company’s financial assets and liabilities: 2018 Carrying value Fair value $ $ Financial assets Cash in hand and at bank 669,699 669,699 Amortised Cost - Investments 11,821,706 11,821,706 Accounts receivable and prepayments 1,283,081 1,283,081 FVOCI – Investments 769,115 769,115 Due from related party 5,910,014 5,910,014 Financial liabilities Accounts payable and accruals Loans Due to related party 48
20,453,615
20,453,615
3,185,559 19,469,649 3,292,306
3,185,559 19,469,649 3,292,306
25,947,514
25,947,514
2017 Carrying value Fair value $ $ Financial assets Cash in hand and at bank Amortised Cost - Investments Accounts receivable and prepayments FVOCI – Investments Due from related party Financial liabilities Accounts payable and accruals Loans Due to related party
1,008,695 9,696,535 1,104,845 724,512 5,786,983
1,008,695 9,696,535 1,104,845 724,512 5,786,983
18,321,570
18,321,570
2,175,818 19,469,648 3,833,132
2,175,818 19,469,648 3,833,132
25,478,598
25,478,598
Fair value is the measurement-date price received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The existence of published price quotation in an active market is the best evidence of fair value. Where market prices are not available, fair values are estimated using various valuation techniques, including using recent arm’s length market transactions between knowledgeable, willing parties, if available, current fair value of another financial instrument that is substantially the same and discounted cash flow analysis.statements. EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 3. FINANCIAL RISK MANAGEMENT (CONTINUED)
Fair values The following methods have been used to estimate the fair values of various classes of financial assets and liabilities: Cash and cash equivalents and investments at amortised cost Due to their liquidity and short-term maturity, the carrying values of certain financial instruments approximate their fair values. Financial instruments where carrying value is approximately equal to fair value include cash and investments at Amortised cost. This valuation is based on Level 3 inputs. Accounts receivable The carrying amounts of accounts receivable are a reasonable approximation of the fair values because of their short-term nature. This valuation is based on Level 3 inputs. Accounts payable and accruals Settlement of these liabilities are either on demand by the Creditor or subject to normal credit terms up to 30 days. This valuation is based on Level 3 inputs. Related party balances Related party balances (Receivable & Payable) are settled on a monthly basis. This valuation is based on Level 3 inputs. IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to these valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy. i. Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This level includes listed equity securities and debt instruments on exchanges. ii. Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). This level includes debt instruments. iii. Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). This level includes equity instruments and debt instruments with significant unobservable components. This hierarchy requires the use of observable market data when available. The Company considers relevant and observable market prices in its valuations where possible.
EPL ANNUAL REPORT 2018
49
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 3. FINANCIAL RISK MANAGEMENT (CONTINUED) Fair values (continued)
The following table shows an analysis of financial instruments measured at fair value by level of the fair value hierarchy: As at 31 December 2018
Level 1
Level 2
Level 3
Total
$
$
$
$
Investment securities
--
--
769,115
769,115
Total financial assets
--
--
769,115
769,115
Level 1
Level 2
Level 3
Total
$
$
$
$
Investment securities
--
--
724,512
724,512
Total financial assets
--
--
724,512
724,512
Financial assets FVOCI - Investments:
As at 31 December 2017 Financial assets FVOCI - Investments:
50
Financial risk factors The Company is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk and reputation risk arising from the financial instruments that it holds. The risk management policies employed by the Company to manage these risks are discussed below: a. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk through the effect of fluctuations in the prevailing levels of interest rates on interest bearing financial assets and liabilities, including investments in money market deposits and other funding instruments. Interest rate sensitivity analysis The Company’s exposure to interest rate risk is summarized in the table below, which analyses assets and liabilities at their carrying amounts categorized according to their maturity dates.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2017
Financial assets Cash in hand and at bank Amortised Cost - Investments Accounts receivable and prepayment FVOCI - Investments Due from related party
Financial liabilities Accounts payable and accrual
Effective Rate
Up to 1 Year
1 to 5 Years
Over 5 Years
NonInterest Bearing
Total
0.00%
--
--
--
1,008,695
1,008,695
1.23%
9,696,535
--
--
--
9,696,535
0.00%
--
--
--
1,104,845
1,104,845
0.02%
754,512
--
--
--
754,512
0.00%
--
--
--
5,786,983
5,786,983
10,451,047
--
--
7,900,523
18,351,570 51
0.00%
--
--
--
2,175,818
2,175,818
Loans
7.00%
174,139
107,338
--
--
281,477
Loans
9.00%
874,225
5,630,120
13,732,191
--
20,236,536
Due to related party
0.00%
--
--
--
3,833,132
3,833,132
1,048,364
5,737,458
13,732,191
6,008,950
26,526,963
2018
Financial assets Cash in hand and at bank Amortised Cost - Investments Accounts receivable and prepayment
Effective Rate
Up to 1 Year
1 to 5 Years
Over 5 Years
NonInterest Bearing
Total
0.00%
--
--
--
669,699
669,699
1.23%
11,821,706
--
--
--
11,821,706
0.00%
--
--
--
1,283,081
1,283,081
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
FVOCI - Investments Due from related party
0.02%
769,115
--
--
--
769,115
0.00%
--
--
--
5,910,014
5,910,014
12,590,821
--
--
7,862,794
20,453,615
0.00%
--
--
--
3,185,559
3,185,559
Loans
7.00%
107,338
--
--
--
107,338
Loans
9.00%
933,643
6,158,264
12,270,403
--
19,362,310
Due to related party
0.00%
--
--
--
3,292,306
3,292,306
1,040,981
6,158,264
12,270,403
6,477,865
25,947,513
Financial liabilities Accounts payable and accrual
52
3. FINANCIAL RISK MANAGEMENT (CONTINUED) Financial risk factors (continued) b. Capital risk management Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Company relies heavily on its policies and guidelines on trade debtors’ management, which sets out the current policies governing the granting of credit to customers function and provides a comprehensive framework for prudent risk management of the credit function. Adherence to these guidelines is expected to communicate the Company’s credit philosophy, provide policy guidelines to team members involved in granting credit, establish minimum standards for credit analysis, documentation, decision making and post-disbursement administration, as well as create analysis, documentation, decision making and post-disbursement administration, as well as create the foundation for sound credit portfolio. The Company’s debtors’ portfolio is managed and consistently monitored by management and is adequately secured by collateral and where necessary, provisions have been established for potential credit losses on delinquent accounts. Cash balances are held with high credit quality financial institutions and the Company has policies to limit the amount of exposure to any financial institution. The Company also actively monitors global economic developments and government policies that may affect the growth rate of the local economy.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
c. Liquidity risk Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining enough cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. The Company is exposed to daily calls on its available cash resources to settle financial and other liabilities. Liquidity gap The Company’s exposure to liquidity risk is summarized in the table below which analyses assets and liabilities based on the remaining period from the Balance Sheet date to the contractual maturity date. 2017 Up to 1 Year
1 to 5 Years Over 5 Years
Total
Financial assets Cash in hand and at bank
1,008,695
--
--
1,008,695
Amortised Cost - Investments
9,696,535
--
--
9,696,535
Accounts receivable and prepayment
1,104,845
--
--
1,104,845
724,512
--
--
724,512
--
5,786,983
--
5,786,983
12,534,587
5,786,983
--
18,321,570
Accounts payable and accruals
2,175,818
--
--
2,175,818
Loans
2,847,495
13,301,665
22,796,965
38,946,125
--
3,833,132
--
3,833,132
5,023,313
17,134,797
22,796,965
44,955,075
FVOCI - Investments Due from related party
Due to related party Liquidity gap
EPL ANNUAL REPORT 2018
7,511,274
(11,347,814) (22,796,965) (26,633,505)
53
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2018 Up to 1 Year
1 to 5 Years Over 5 Years
Total
Financial assets Cash in hand and at bank
669,699
--
--
669,699
Amortised Cost - Investments
11,821,706
--
--
11,821,706
Accounts receivable and prepayment
1,283,081
--
--
1,283,081
769,115
--
--
769,115
5,910,014
--
--
5,910,014
20,453,615
--
--
20,453,615
Accounts payable and accruals
3,185,559
--
--
3,185,559
Loans
2,748,219
13,191,808
20,158,604
36,098,630
--
3,292,306
--
3,292,306
5,933,777
16,484,114
20,158,604
42,576,495
FVOCI - Investments Due from related party
Due to related party Liquidity gap
14,519,838
(16,484,114) (20,158,604) (22,122,880)
54 3. FINANCIAL RISK MANAGEMENT (CONTINUED) Financial risk factors (continued) d. Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Company. The Company employs various asset/liability techniques to manage liquidity gaps. Liquidity gaps are mitigated by generating enough cash from new and existing customers to settle outstanding liabilities. To manage and reduce liquidity risk the Company’s management actively meets to match cash inflows with liability requirements. e. Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company’s measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Company’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgements, estimates and assumptions in the process of applying the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future and actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Changes in accounting estimates are recognised in the Statement of Comprehensive Income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods. The critical judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: Estimation of the expected credit loss allowance The measurement of the expected credit loss allowance for financial assets measured at amortised cost has been estimated to be immaterial due to the short-term duration of the instrument, as well as the credit quality of the custodian, will cause same to be immaterial. Management expects the ECL on financial assets held with respect to Related Party balances to be immaterial based on the financial strength of the Related Party and the short term and liquid nature of other Financial Assets held. (ii) Impairment of assets Management assesses at each reporting date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. (ii) Fixed assets Management exercises judgement in determining whether future economic benefits can be derived from expenditures to be capitalised and the useful lives and residual values of these assets.
EPL ANNUAL REPORT 2018
55
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
5. FVOCI - INVESTMENTS This balance relates to shareholdings held at First Citizens Bank Limited. December
Shareholding – First Citizens Bank Limited
2018 $ 769,115
2017 $ 724,512
6. RELATED PARTY TRANSACTIONS Parties are related if one party can control the other party or exercise significant influence over the other party in making financial decisions. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Company. Many transactions are entered with related parties in the normal course of business. These transactions were carried out on commercial terms at market rates. Balances and transaction with related parties and key management personnel during the year were as follows: December 56
Related party transactions Assets Amounts due from parent Liabilities Amounts due to parent Loans due to parent Income Property rental Expenses Interest on loan from parent Key management compensation Short-term benefits Post-employment benefits
EPL ANNUAL REPORT 2018
2018 $
2017 $
5,910,014
5,786,983
3,292,306 19,469,649
3,833,132 20,518,012
11,199,798
9,909,144
1,799,131
1,897,449
1,773,957 -1,773,957
1,517,965 -1,517,965
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Cost Balance as at 1 January 2018 Additions Adjustments/Disposals Balance as at 31 December 2018 Accumulated depreciation Balance as at 1 January 2018 Charge for the period Adjustments Balance as at 31 December 2018 Net book value Balance as at 31 December 2018 Balance as at 31 December 2017
Cost Balance as at 1 January 2017 Additions Adjustments/Disposals Balance as at 31 December 2017 Accumulated depreciation Balance as at 1 January 2017 Charge for the period Adjustments Balance as at 31 December 2017 Net book value Balance as at 31 December 2017 Balance as at 31 December 2016 EPL ANNUAL REPORT 2018
Furniture Office and fittings equipment $ $
Computer equipment $
Motor vehicle $
Total $
2,462,062 118,453 --
465,099 197,437 (28,695)
1,068,559 8,594 --
405,767 ---
4,401,487 324,484 (28,695)
2,580,515
633,841
1,077,153
405,767
4,697,276
1,602,243 178,192 --
256,037 55,324 (20,900)
515,302 111,531 --
187,823 54,486 --
2,561,405 399,534 (20,900)
1,780,435
290,461
626,833
242,309
2,940,040
800,080
343,380
450,319
163,458
1,757,238
859,819
209,062
553,257
217,944
1,840,083
Computer equipment $
Motor vehicle $
Total $
Furniture Office and fittings equipment $ $ 2,026,921 435,141 --
365,349 99,750 --
627,580 440,979 --
405,767 ---
3,425,617 975,870 --
2,462,062
465,099
1,068,559
405,767
4,401,487
1,433,732 168,511 --
211,450 44,587 --
412,313 102,989 --
115,174 72,648 --
2,172,669 388,735 --
1,602,243
256,037
515,302
187,822
2,561,404
859,819
209,062
553,257
217,945
1,840,084
593,188
153,899
215,267
290,593
1,252,948
57
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 8. INVESTMENT PROPERTY
58
Land and buildings $
Building improvements $
Auditorium equipment $
Cost Balance as at 1 January 2018 Additions Work in progress transfers Adjustments/disposals Balance as at 31 December 2018
82,576,344 ---82,576,344
16,203,758 652,736 --16,856,494
17,155 ---17,155
Accumulated depreciation Balance as at 1 January 2018 Charge for the period Adjustments Balance as at 31 December 2018
6,322,865 1,038,407 -7,361,272
1,868,816 287,997 -2,156,813
13,090 610 -13,700
Net book value Balance as at 31 December 2018 Balance as at 31 December 2017
75,215,071 76,253,479
14,699,681 14,334,942
3,455 4,064
Cost Balance as at 1 January 2017 Additions Work in progress transfers Adjustments/disposals Balance as at 31 December 2017
82,576,344 ---82,576,344
14,211,480 1,735,994 367,652 (111,368) 16,203,758
17,155 ---17,155
Accumulated depreciation Balance as at 1 January 2017 Charge for the period Adjustments Balance as at 31 December 2017
5,263,266 1,059,599 -6,322,865
1,596,154 272,662 -1,868,816
12,371 717 -13,088
Net book value Balance as at 31 December 2017 Balance as at 31 December 2016
76,253,479 77,313,078
14,334,942 12,615,326
4,066 4,784
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Maintenance equipment $
Gymnasium equipment $
Electrical equipment $
Capital work In progress $
Total $
282,759 5,000 --287,759
2,045,295 36,584 --2,081,879
1,191,218 ---1,191,218
804,276 1,319,346 --2,123,622
103,120,805 2,013,666 --105,134,470
169,052 17,181 -186,233
888,145 175,343 -1,063,488
665,391 52,582 -717,973
-----
9,927,359 1,572,120 -11,499,479
101,526 113,707
1,018,391 1,157,150
473,245 525,830
2,123,622 804,276
93,634,991 93,193,446
282,759 ---282,759
1,786,517 258,778 --2,045,295
1,191,218 ---1,191,218
367,652 804,274 (367,652) -804,276
100,433,125 2,799,046 -(111,368) 103,120,805
148,987 20,065 -169,053
725,730 162,415 -888,144
606,969 58,425 -665,393
-----
8,353,476 1,573,883 -9,927,359
113,707 133,773
1,157,150 1,060,788
525,824 584,249
804,274 367,652
93,193,446 92,079,647
EPL ANNUAL REPORT 2018
59
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 9. CASH IN HAND AND AT BANK
December
Petty cash Eastern Credit Union Co-operative Society Limited Scotiabank Trinidad and Tobago Limited
2018 $ 21,275 322,000
2017 $ 15,837 460,744
326,423 669,699
532,114 1,008,696
10. AMORTISED COST - INVESTMENTS This balance relates to an Income Fund account held at Trinidad and Tobago Unit Trust Corporation. Unit Trust Corporation
60
11,821,706
9,696,535
11. ACCOUNTS RECEIVABLE AND PREPAYMENTS Accounts receivable – Tenants Accounts receivable – Sporting Complex Employee advances Prepayments VAT receivable
-1,400 20,335
11,053 21,352 61,914
160,910 554,961 737,607
163,781 616,014 874,115
59,705,976
59,705,976
12. STATED CAPITAL 119,412 ordinary shares of no-par value
13. INVESTMENT AND RE-MEASUREMENT RESERVES December
Investment re-measurement reserve
EPL ANNUAL REPORT 2018
2018 $ 271,013 271,013
2017 $ 226,410 226,410
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 14. LOAN
Eastern Credit Union Co-operative Society (See a.) Eastern Credit Union Co-operative Society (See b.)
107,338 --
281,477 20,653
Eastern Credit Union Co-operative Society (See c.) Eastern Credit Union Co-operative Society (See d.)
6,451,616 12,910,694 19,469,649 (1,040,981) 18,428,668
7,065,438 13,150,444 20,518,013 (1,048,364) 19,469,649
Less: current portion Non-current portion
a. This balance represents bridging financing on a $30.0m loan taken to finance the construction of a commercial and residential building to the western side of the existing La Joya facility. It is repayable over 25 years at an interest rate of 7% per annum. It is secured by a First Demand mortgage over the land and building situated at Eastern Main Road, St. Joseph. This loan was issued in August 2011. b. This balance refers to a loan taken to the value of $1.6m. This loan facility is secured by way of a fixed charge against the property situated east of La Joya, St. Joseph at an interest rate of 9% per annum for a term of 10 years. This loan was issued in February 2008. c. This balance refers to a loan taken to the value of $10.7m. This loan facility is secured by way of a fixed charge against the property situated in St. James Street, San Fernando at an interest rate of 9% per annum for a term of 18 years. This loan was issued in March 2008. d. This balance refers to a loan taken to the value of $14m for the financing of the Kabsco project. It is repayable over 25 years at an interest rate of 9% per annum. This loan was issued April 2013. 15. DEFERRED TAXATION Deferred income taxes are calculated on all temporary differences under the liability method using a principal tax rate of 30% (2017: 30%). The deferred income tax asset and liability in the statement of financial position and the deferred tax charge/(credit) in the statement of comprehensive income are attributable to the following items:
EPL ANNUAL REPORT 2018
61
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
Balance at beginning of year Effect of statement of comprehensive income Balance at end of year Deferred taxation is attributable to the following items: Excess of net book value over written-down tax value Tax losses carried forward
(4,751,730) (986,114)
(4,110,431) (641,298)
(5,737,843)
(4,751,730)
(12,143,521)
(11,836,311)
6,405,680 (5,737,843)
7,084,581 (4,751,730)
16. ACCOUNTS PAYABLE AND ACCRUALS December
62
Cautionary deposits Payables – other Stale-dated cheques
2018 $ 57,094 3,037,561 90,904 3,185,559
2017 $ 96,269 2,031,015 48,535 2,175,818
17. CAPITAL RISK MANAGEMENT The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders. The Company’s overall strategy remains unchanged from previous years. The capital structure of the Company consists of equity attributable to shareholders and comprises stated capital and retained earnings.
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 18. ADMINISTRATIVE EXPENSES Audit fees Aerobic expense Annual general meeting Courier Bad debt Donations Green fund levy Insurance Legal & professional fees Miscellaneous Motor vehicle expense Office expense Christmas expense Camp expenditure Gym expense IT & software expenditure Rentals Travelling Expenditure adjustments Meals & entertainment Repairs & maintenance Security Signature events Stationery Training Property tax Depreciation Utilities
EPL ANNUAL REPORT 2018
110,950 9,933 60,130 30,000 27,082 25,320 57,909 690,459 306,184 500 29,683 255,655 129,226 81,700 215,955 302,268 -971 94,284 90,342 1,013,268 972,071 44,081 35,979 80,458 (539,593) 1,971,654 469,790 6,566,260
92,500 15,500 23,828 27,600 -12,455 53,574 642,189 203,126 19,968 17,721 295,265 128,795 72,361 208,683 249,840 20,000 119 (266) 72,228 1,019,825 962,162 -36,297 70,911 1,083,699 1,962,617 510,102 7,801,099
63
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS) 19. PERSONNEL COST
December 2018
2017
352,665 1,542,671 1,410,231 337,259 2,483,623 14,125 49,075 80,240 31,311 6,301,200
326,716 1,577,490 1,527,935 276,397 1,986,617 -10,671 52,240 9,387 5,767,452
Taxation Corporation tax Business levy Total deferred tax Income tax expense
115,824 986,114 1,101,938
107,148 641,298 748,446
The tax on profit before tax differs from the theoretical amount that would arise using the tax rate applicable to profits as follows: Accounting income
3,941,421
1,919,035
1,182,576 (24,883) (187,886) 115,821 16,310
525,711 31,991 90,245 107,148 (6,648)
1,101,938
748,446
NIS Salaries & Wages - Admin Salaries & Wages - Sporting Complex Salaries & Wages - Events Salaries & Wages - Custodial Recruitment Staff uniforms Staff retreat Staff welfare
20. TAXATION 64
Tax calculated at 30% Expenses not deductible for tax purposes PY Under Provision-Deferred tax Business levy Permanent difference Tax charge in statement of comprehensive income
EPL ANNUAL REPORT 2018
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
21. EVENTS AFTER THE BALANCE SHEET DATE Within the financial statements for the period ended 31 December 2016, there had been an accrual for the value of $192,000. This value represented a provision related to ligation due to a claim for breach of contract. On 31 March 2019, the claimant withdrew the claim and was ordered to pay to EPL Properties Limited, cost amounting to $18,000. As a result of this, the value of $192,000 had been reversed as at 31 December 2018.
65
EPL ANNUAL REPORT 2018
RESOLUTIONS At the 16th Annual General Meeting of EPL Properties Limited (the “Company”) to be held on 4 October, 2019 the following shall be considered by Eastern Credit Union, the Shareholder: r e s o lu t i o n
No. 1
a u d i t e d f i n a n c i a l s tat e m e n t s a n d c h a i r m a n ’ s r e p o r t
Be it resolved that the Audited Financial Statements and the Chairman’s Report for the year ended December 31st 2018 be hereby approved and adopted.
r e s o lu t i o n
No. 2
dividend
r e s o lu t i o n
a p p o i n t m e n t o f a u d i to r s a n d a u t h o r i z at i o n o f d i r e c to r s to s e t r e m u n e r at i o n
No. 3 r e s o lu t i o n
No. 4 66
Be it resolved that a dividend in the sum of one million, five hundred thousand dollars ($1,500,000.00) be paid to the Shareholder, based on the financial returns of EPL Properties Limited as at December 31st, 2018.
Be it resolved that PwC be and are hereby appointed Auditors until the next Annual General Meeting of the Company and that their remuneration be fixed by the Directors. a p p o i n t m e n t o f d i r e c to r s o f t h e c o m pa n y i n a c c o r d a n c e w i t h t h e c o m pa n i e s a c t 1995
Be it resolved that: A. Mr. Brent Hewitt-Borde be and is hereby re-appointed as an Independent Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. B. Mr. Jameel Mohammed be and is hereby appointed as an Independent Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. C. Mrs. Gloria Rolingson be and is hereby appointed as an Independent Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. D. Ms. Janelle Benjamin be and is hereby re-appointed as a Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. E . Mr. Ronald Bobb be and is hereby re-appointed as a Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. F. Mr. Wayne Estrada be and is hereby re-appointed as a Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020. G. Mr. Richard Noray be and is hereby appointed as a Director of the Company for the term of office beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020.
r e s o lu t i o n
No. 5
s h a r e h o l d e r ’ s r e p r e s e n tat i v e
Be it resolved that Ms. Wendy Williams be appointed Shareholder’s Representative for the period beginning 4 October, 2019 and expiring at the Seventeenth Annual General Meeting to be held in 2020.
68
Unit 12 La Joya Administrative Complex, Eastern Main Road, St. Joseph. +1-868-225-4EPL (4375) +1-868-223-1980 eplpropertiesltd.com