TTIFC 2019 Annual Report by iuGO Digital

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Annual Report 2019

A l l y

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

More than just a Business Partner At its core, the Trinidad and Tobago International Financial Centre (T&T IFC) is a facilitator. Behind the scenes, you’ll see us fully committed to supporting investors in the Financial Services sector to reach their goals. We strive to ensure they have a soft landing – whether domestic or foreign, and provide all the assistance and information they need to hit the ground running, and create quality jobs in our nation. To achieve this, we work tirelessly with all key stakeholders to create a modern, efficient and relevant finance and accounting business ecosystem. So, if you are in Banking, Financial Services and Insurance, Government, Education, FinTech, Technology, Media, or belong to any business associations, we want to collaborate with you for mutual benefit. We’re a facilitator of change in the Financial Services sector and we are here as

Your Resourceful Ally

Expanding the knowledge of our country 2

VISION To make Trinidad and Tobago one of the premier locations in the Caribbean and Latin America for financial services.

MISSION To attract and facilitate foreign direct investment in the Financial Services sector, that would enhance the growth and diversification of the economy by creating sustainable employment and generating foreign exchange.

CORPORATE PROFILE

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

CORPORATE INFORMATION

CHAIRMAN’S REPORT

CHIEF EXECUTIVE OFFICER’S REPORT

WE ARE IMPARTERS OF SUCCESS

2018 IN REVIEW

ALL ABOUT YOUR SUCCESS

GOVERNANCE REPORTS

DIRECTORS’ REPORT

BOARD COMMITTEES

FINANCIAL REPORTING Statement of Management Responsibilities Independent Auditor’s Report Statement of Financial Position Statement of Profit or Loss and Other Comprehensive Income Statement of Changes In Equity Statement of Cash Flows Notes to the Financial Statements

Contents

Where to invest?

Amelia Samai-Nicome Vice President, Corporate Services

Trust to reach goals

Corporate Profile Who we are and What we do The establishment of the Trinidad and Tobago International Financial Centre Management Company Limited (TTIFCMCL) was approved by Cabinet Minute No. 2647 on September 18th 2008 and the company was incorporated under the Companies Act 1995 on November 6th, 2008. The TTIFCMCL has the responsibility of achieving the Vision and Mission of the company, which are to make Trinidad and Tobago one of the premier locations in the Caribbean and Latin America for financial services, and to attract and facilitate foreign direct investment in the Financial Services sector, that would enhance the growth and diversification of the economy by creating sustainable employment and generating foreign exchange. In January 2010 as per Cabinet Minute No. 147 the following goals were identified for the TTIFCMCL: Short-Term: - Facilitation of a Business Process Outsourcing (BPO) industry through centres of excellence in Finance & Accounting and Decision Analytics Medium/Long-Term Goals: - Attract International Financial Institutions to provide financial services - Position Trinidad and Tobago as the financial hub of Latin America and establish the Trinidad and Tobago IFC as a one-of-a-kind IFC (on-shore) in the western hemisphere - Support Governmentâ&#x20AC;&#x2122;s economic transformation agenda by contributing to sustainable growth, diversification of the economy and the creation of jobs through development of the Financial Services sector

Rudolph Hanamji Manager, Marketing and Communications

Amelia Samai-Nicome Vice President, Corporate Services

Omar Sultan-Khan Chief Executive Officer

Sylvannas Berkeley Vice President, BPO/ Shared Services Development

Inga Dottin-Wiltshire Manager, BPO/ Shared Services Development

Geron Burnett Manager, Financial Markets Development

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Corporate Information BOARD OF DIRECTORS Richard P. Young, Chairman Reynold Ajodhasingh, Director Peter Clarke, Director Inez Sinanan, Director Ewart Williams, Director

CORPORATE SECRETARY Grant Thornton ORBIT Solutions Limited Queen’s Park Place 17-20 Queen’s Park West Port of Spain Trinidad and Tobago

EXECUTIVE TEAM Omar Sultan-Khan, Chief Executive Officer Joan Ferreira, Vice President, Corporate Services (1st June 2012 – 30th June 2019) Amelia Samai-Nicome, Vice President, Corporate Services (w.e.f. 30th June 2019) Sylvannas Berkeley, Vice President, BPO/Shared Services Development

REGISTERED OFFICE 15th Floor, Tower D International Waterfront Centre #1 Wrightson Road (P.O. Box 735) Port of Spain Trinidad and Tobago

AUDITORS Deloitte and Touche 54 Ariapita Avenue Port of Spain Trinidad and Tobago

BANKERS First Citizens Bank Limited MovieTowne Branch Port of Spain Trinidad and Tobago

PANEL OF ATTORNEYS-AT-LAW JCS Law (Caribbean) Limited 5th Floor, Newtown Centre 30–36 Maraval Road, Newtown Port of Spain M.G. Daly & Partners 115A Abercromby Street Port of Spain J.D. Sellier & Co Limited 129–131 Abercromby Street Port of Spain Pollonais, Blanc, de la Bastide and Jacelon Pembroke Court 17–19 Pembroke Street Port of Spain

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The partner of business

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Chairman’s Report

Richard P. Young Chairman

As the state agency responsible for the development of the Financial Services (FS) sector, the Trinidad and Tobago International Financial Centre Management Co. Ltd. (TTIFCMCL) has always positioned the Trinidad and Tobago International Financial Centre (T&T IFC) as the outward-facing brand of the Investment Promotion Agency (IPA) for the sector. Under the T&T IFC brand, the TTIFCMCL has consistently executed the Government’s policy of economic transformation (as reinforced in the 2019-20 National Budget) in part, through the expansion of the FS sector – given its high potential for increased contribution to GDP; high-value employment in current and new fields; technology transfer; and foreign exchange earnings. The theme of the 2019-2020 National Budget, “Stability, Strength and Growth”, best encapsulates the most important watchwords that any foreign direct investor is guided by in making the decision to commence operations in a new territory. Therefore, the sole purpose of any IPA is to do all in its power to provide the guidance, information and navigation support that would present the most robust business case, that the location and its business ecosystem will allow the incoming investor/company to achieve these three factors. In effect, an IPA takes on the role of a ‘resourceful ally’ in the truest sense.

This is why, in this fiscal year (FY) ended September 30th 2019, after a comprehensive marketing and branding audit, we have decided to revise our branding to more squarely position the T&T IFC as ‘your resourceful ally’ – to both international and domestic potential FS sector investors alike. This was driven to a large extent by feedback from our most recent investor – Evolve Mortgage Services (EMS), which began operations at the close of the former FY (ended September 30th 2018) and has doubled employment levels – with a full complement of domestic financial services and technology professionals. Further, when we were building out the case studies for our existing BPO/ SS operations, which are utilised in attracting new leads, the facilitation service provided by the TTIFCMCL was instrumental in leads and operators moving quickly through the decision and operationalisation process. While the country improves the ease of doing business, the TTIFCMCL can provide the necessary navigation aid to those who are looking at setting up operations. Simply put, clients want to

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know that they have an authentic ‘ally’ every step of the way, who could be ‘resourceful’ and not just supportive in words but offer real business value through action. Many of our new interactions with potential investors commence with us showing an EMS testimonial video which includes their CEO, Paul Anselmo, endorsing our work and indeed Trinidad and Tobago. This success story preempts understandable doubts about the country’s value proposition and short-circuits discussions, so that investors might move more quickly to conducting their own feasibility study and even visiting our shores for a first-hand ‘Trinbago’ experience. To strengthen our lead generation and solicitation process, we have gone to market to identify an internationally recognised and proven investment promotion engagement partner, who will provide an updated market analysis and strategic roadmap for the further development of the Finance & Accounting (F&A) Business Process Outsourcing (BPO)/ Shared Services (SS) industry. They will be on-boarded in the

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

What is also serendipitous about BPO/ SS operations is that at their core they are technology companies, and their choosing Trinidad and Tobago proves that we can indeed be a Financial Technology (FinTech) enabled hub, which is the complementary goal to F&A BPO/SS development being advocated by the TTIFCMCL. This is a by-product of the work done over the years by the Financial Markets Development Unit, which presented a FinTech roadmap in this FY (ended September 30th 2019), aligned directly to the goals of Trinidad and Tobago’s Vision 2030. After presenting the roadmap, our line Ministry empowered the TTIFCMCL to champion the restructuring of Trinidad and Tobago to become a ‘cashless society’. This would facilitate greater convenience for businesses and consumers, while reducing crime, corruption, money laundering and tax evasion and the number of un-banked or under-banked persons in society. To this end, the TTIFCMCL works in lockstep both at the Board and Management levels with the Central Bank of Trinidad and Tobago and

Simply put, clients want to know that they have an authentic ‘ally’ every step of the way, who could be ‘resourceful’ and not just supportive in words but offer real business value through action. upcoming FY (ending September 30th 2020) and we expect to be hosting inward missions by the second quarter, which will then be able to visit EMS in their new facility, as well as meet with other potential partners.

other regulators, and has invested a great deal of time in generating buy-in among domestic stakeholders and acting as a ‘resourceful ally’ to them for their own needs.

With their successes in mind, we have been developing the foundation for the FinTech Association of Trinidad and Tobago (FinTech T&T), which will be launched during the upcoming FY (ending September 30th 2020). FinTech T&T would be eventually driven by the private sector to Advocate, Collaborate and Educate, so that there would be greater synergy and more effective policy development to support FinTech businesses. Several other advanced FinTech hubs like Singapore have similar organisations, which have proven to be powerful sources of insights for their governments – helping to save time and money as they grapple with constant disruption in the global FS sector. No one can deny the impact of technology on our lives, and this is why in the former FY (ended September 30th 2018), the TTIFCML redefined its scope and began targeting FinTech companies – especially as our Caribbean neighbours and other nations are beginning to restructure their own economies away from legacy systems and embrace ‘digitisation’. This of course requires a balance of agility and caution, but the wave is already at our shores and we must develop the skills and capacity to ride it effectively over the next few decades.

present – in the furtherance of its Vision and Mission. From the perspective of Chairman of the TTIFCMCL and my own personal vantage point, I continue to make a call for all ‘resourceful allies’ (i.e., domestic private and public sector stakeholders) to aspire and achieve with us, so that the eventual outcome will be ‘Stability, Strength and Growth’, not just for the investors we attract and the TTIFCMCL as a productive national agency, but Trinidad and Tobago’s young and upcoming generations who are the beneficiaries of our efforts today.

Chairman Richard P. Young

I must thank my co-Directors, the CEO and the team (some of whom have been with the Company since its reestablishment in 2012) of the TTIFCMCL for taking on this challenge. Each person is a ‘resourceful ally’ to each other, and we have merged institutional memory and incoming perspectives to be able to overcome challenges with innovative solutions, which deliver on the Company’s strategic initiatives within time and budget. Once again, the TTIFCMCL was able to meet all our compliance reporting needs – in some instances, like this Annual Report, ahead of time, and as this FY’s (ended September 30th 2019) audited financials will show, we continue to manage the resources of the people of Trinidad and Tobago entrusted to us by the central Government with care and prudence. The Company has been able to leverage internal capacity at times to save on expenses and is able to adequately justify all activities – past and

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Working loyally for business

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technology knowledge transfer, in keeping with our goals.

Chief Executive Officer’s Report A PROVEN RESOURCEFUL ALLY As our Chairman intimated in his report, it was our experience with Evolve Mortgage Services (EMS) that solidified what our stakeholders really need, a ‘resourceful ally’, which will be the cornerstone of our reengagement of domestic and international partners alike in the upcoming period. The Trinidad and Tobago International Financial Centre Management Co. Ltd. (TTIFCMCL) sustained and built on its existing networks in the last FY (ended September 2018) and strengthened its staffing complement to ensure we had access to the relevant resources (i.e., information, know-how and networks), which are then shared with all our partners for their enhanced ease of doing business. In this way, we are their ‘resourceful ally’. We unapologetically continue to pride ourselves on the success story of EMS, as it validates Trinidad and Tobago’s ability to provide internationalclass talent, that operates at the highest levels of productivity – leveraging the many years of government-subsidised tertiary education. It also demonstrates that a dedicated, focused Investment Promotion Agency for the Financial Services (FS) sector is required to provide the unique facilitation and navigation support that relevant firms require when considering investing in a new location. Indeed, EMS attested that the TTIFCMCL’s preparation and attention to detail were

While we are proud of this success, we remain cognizant of the challenges facing us in attracting new investors, which include: access to relevant data on financial services talent such as qualifications and supply; the hypercompetitive market that requires high levels of expenditure in client outreach and engagement; friction faced at times in doing business in Trinidad and Tobago; and the breadth of incentives being offered by other territories.

instrumental in EMS feeling confident about Trinidad and Tobago from the initial engagement and all through set-up. We clearly showed ourselves as a virtual partner along the way – as we viewed EMS’ success as our own. This was only possible because of the well-documented learnings and networks built when facilitating Scotiabank’s Operations Shared Services Centre (OSSCL) and other potential investors over the years. The operationalisation of EMS, just at the end of the prior FY (ended September 2018), was a great kick-off for this FY (ended September 2019). It offered the perfect proof point for the TTIFCMCL’s ongoing strategic positioning of Trinidad and Tobago as a preferred nearshore location for Finance and Accounting (F&A) Business Process Outsourcing (BPO), under the brand – Trinidad and Tobago International Financial Centre (T&T IFC). During this FY (ended September 2019), to meet their growth needs, and with our support, EMS increased its employment levels of local F&A and ICT professionals by nearly 100% – with several candidates being graduates of the TTIFMCL’s F&A BPO training programme hosted in previous years. EMS is well on track to achieve their target of 100 hires in the upcoming year. The TTIFCMCL will support this, as well as EMS locating its own site for operations, which will release our incubation space for other potential F&A investors. Further, EMS is projected to make an FDI contribution of USD 1Mn in the next FY (ending September 2020), along with

Omar Sultan-Khan Chief Executive Officer

To overcome these in the upcoming FY, we will complete a labour pool research and market intelligence exercise; allocate resources strategically to international outreach; enhance our facilitation services with increased engagement of related state agencies; and roll out targeted new F&A BPO/ SS incentives.

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DEVELOPING ALLIES AND LEADS One important network that was reinforced within this FY (ended September 2019) was with educational institutions, as MoUs were signed with UWI-ROYTEC and ACCA respectively on 14th March and 29th August. This is part of our commitment to working with institutions to develop the local labour pool. Through these partnerships, it is expected that research undertaken by the TTIFCMCL will be shared and used to guide and inform the development of relevant training programmes to upskill the labour pool for the ‘new jobs’ offered by incoming investors. Based on the MoU signed with UWI-ROYTEC, two feeder projects are earmarked to be undertaken in the 1st and 3rd quarters of 2020. Such projects will make it easier and more effective when we are prospecting. These types of programmes add to the basket of incentives that provide our team and lead generation consulting partners with attractive selling points. Already, by referencing existing incentives, the TTIFCMCL’s existing facilitation support and EMS’ onboarding, they were able to contact a total of 1,925 firms during the period. There was a conversion-to-call rate of approximately 80% for firms which expressed some measure of interest in moving past initial contact, and an approximate conversion rate of about 1% on all cold calls. This rate of conversation underscores the need for the TTIFCMCL to develop as wide a funnel of prospects – all pre-qualified and aligned to Trinidad and Tobago’s value proposition – so as to increase the likelihood of identifying a high-potential lead, with the best probability of conversion into an investment. Therefore we will be partnering with global market intelligence and lead generation consultants in the next FY (ending September 2020), who will take our message into the boardrooms of global market players. It should be noted that while we scan for new leads, we continue to interact with older ones to ascertain if their business plans have changed. The team utilises a Customer Relationship Management (CRM) software which allows us to

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track our progress and to date one former lead has signalled that they are still interested and are expected to set up operations in the new FY (ending September 2020). Apart from desk interaction and being represented by others, the TTIFCMCL’s business development team makes direct contact with the market where feasible, as it is important to connect and network in target markets and with market leaders. Conferences, roadshows and other direct client outreach remain critical to the process of qualifying and attracting leads, especially in the hypercompetitive FDI arena, with countries encouraging their companies to invest at home. We often meet our Caribbean counterparts on the conference floors, as they seek to reinforce their own networks built over decades of investment promotion, that have afforded them a number of wins. Therefore, in the FY (ended September 2019) we attended five conferences, which resulted in a total of sixteen leads. Three of the leads are ‘warm’ and we are working with them closely, with the expectation that one will convert into an actual investment. At the Outsourcing World Summit, hosted by the International Association of Outsourcing Professionals (IAOP), we participated in sessions that brought into focus “Digital Transformation of the Workplace” among other issues relevant to the BPO/SS space. They also launched an IAOP Caribbean Chapter as well as the Latin America/Caribbean Outsourcing Council – both of which the TTIFCMCL will have a role in.

People, Processes and Systems”, primarily for companies involved in F&A BPO/SS. This event offered us a double benefit, as the audience is perfectly aligned with our strategic targets, and it was being held a few minutes from EMS’ headquarters, which allowed the team to pay them a courtesy visit. This is how we nurture our alliances with our clients, and they see our genuine interest in their well-being. The TTIFCMCL also took advantage of a longstanding relationship with Nearshore Americas to attend their 10th Anniversary conference. The event attracted major BPO nearshoring players for networking as well as to share concerns in the BPO environment from the perspective of both operators and locations. Coming out of this event, we reaffirmed that the US remains a main pool for Trinidad and Tobago in lead identification, as we share cultural affinity, similar time zones and flight connectivity. I had the opportunity to present to the plenary and inform attendees about these benefits as well as the F&A BPO/SS specific incentives being offered through the T&T IFC. This created immediate interest in Trinidad and Tobago as a F&A BPO destination and we continue to work with all interested parties in facilitating and supporting their decision making process.

The TTIFCMCL also had the opportunity to engage the Site Selectors Guild (SSG) at their annual meeting, attended by all their members, as well as Economic Development Agencies from North America and Europe. They explored the factors which influence the selection of a location for development of BPO/SS operations. We learned about new approaches that site selection firms take in rating locations and what they look for to be able to better advise their clients.

In conjunction with InvesTT – the official member of the Caribbean Association of Investment Promotion Agencies (CAIPA), as the national investment promotion agency (IPA) for the Financial Services sector – the TTIFCMCL attended CAIPA’s 2nd Outsource to the Caribbean Conference and Expo. This event is designed to bring Caribbean IPAs together to consider the opportunities and challenges faced by Caribbean players in the BPO space. Here, we were able to present on F&A opportunities in Trinidad and Tobago, as an emerging Caribbean BPO territory. Commitments were made by all members to find ways to cooperate rather than compete, as we each offer very specific value to niches of the vast BPO market.

The Shared Services and Outsourcing Network (SSON) hosted Shared Services for Finance and Accounting 2019, which had as its theme the “Scalable Approaches to Transforming

While engaging international partners to generate leads is a must, the TTIFCMCL maintains its domestic outreach in both the public and private sectors, where there is capacity to set

up SS operations. We will continue to do this in the next FY (ending September 2020). From our international outreach programmes, we will be able to share all the insights gleaned with domestic partners as we encourage them to consider BPO/SS as a viable option for retooling of staff and maintenance of a competitive edge, which bodes well for the country’s continued growth and ability to be competitive in technology-driven times. T&T: A FINTECH-ENABLED HUB Considerations of the impact of technology are growing across the globe whether companies are foreign or local, as we have observed firsthand the real-time disruption of technology across the BPO/SS and even the wider Financial Services sector. Therefore, during this FY (ended September 2019) the development of a FinTech ecosystem remained a key initiative for the TTIFCMCL. Ernst & Young (EY) was engaged to conduct a FinTech feasibility study that provided a roadmap to position Trinidad and Tobago as a leading regional FinTech hub. As part of its engagement, EY firstly conducted a global FinTech hub assessment which provided benchmarks of selected established global FinTech hubs – identifying their key attributes, successful initiatives and respective strengths. EY also conducted a market assessment of Trinidad and Tobago which audited the current state of the local FinTech ecosystem. Based on the final report, the TTIFCMCL identified key milestones and has begun the implementation process of initiatives to meet these. In this regard, we have held discussions with various stakeholders about their potential role and that of the TTIFCMCL. One such initiative is the transformation of Trinidad and Tobago into a ‘cashless society’. The TTIFCMCL met with the Minister of Finance in December 2018 and in May 2019 to discuss this initiative and received his support to undertake the necessary steps to bring this vision to fruition. To this end, the TTIFCMCL is having ongoing discussions with stakeholders about increasing opportunities for payment of Government’s services via electronic methods, thereby

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reducing the use of cash nationally as well as utilising the technologies which exist to improve efficiencies. The TTIFCMCL also maintains open dialogue with companies that are interested in launching FinTech solutions locally and is committed to working with them and facilitating their entrance into the Trinidad and Tobago market. To ensure ultimate end-user protections and that potential investors operate within the regulations, we continue to work alongside the Central Bank of Trinidad and Tobago (CBTT), the Securities and Exchange Commission (SEC) and other regulators, as they develop and provide policies and advice. With the above as a backdrop, during the FY under review (ended September 2019), the TTIFCMCL started efforts to establish a FinTech Association (FinTech T&T) that will coalesce private sector stakeholders and create a collective voice for the industry. It will facilitate collaboration between market participants and provide a platform for members to engage with governmental agencies, regulatory bodies and other key stakeholders to share ideas, solve problems, promote best practices, network and shape the future of the industry. To engage with relevant stakeholders, the TTIFCMCL joined the Digital Transformation Committee of the American Chamber of Commerce of Trinidad and Tobago (AMCHAM T&T) as the broad objective of this Committee (i.e., to promote the digital transformation of Trinidad and Tobago) is well aligned with our FinTech goals. In June 2019 the TTIFCMCL participated in the Tech Hub Islands Summit (T.H.I.S.) hosted by AMCHAM T&T as a sponsor of a session entitled “The Future of Payments is Now”. An international FinTech expert from EY was a feature speaker at this session, which focused on changes in the payments landscape and the future of payments for banks, merchants and payment vendors, as well as opportunities to participate in an emerging autonomous payments market. PROMOTING INVESTMENT IS WHAT WE DO All of the preceding work reported on is engaged in the context of being an IPA and we continuously review the Marketing and

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Communications (MarCom) initiatives focused on the provision of critical strategic support to both the Business Process Outsourcing (BPO) Shared Services (SS) and the Financial Markets functions. For this FY (ended September 2019), the MarCom function invested significant time into the development of an integrated MarCom strategy. As part of this, the MarCom function assisted in the development of the scope of works for securing consultants in lead identification and market trends analysis which will inform our MarCom activities. Other notable activities of the MarCom function included the publication of collateral including the 2018 Annual Report with a theme of ‘Re-Defining’, which received a Silver ADDY Award; several presentations; four issues of the Corporate Newsletter – the T&T IFC Quarterly, updated signage; and a digital/ new media campaign. In addition to the provision of this support, the MarCom function focused its efforts on the development of a strategic re-branding approach for the TTIFCMCL to be launched during the coming FY (ending September 2020). This included a comprehensive audit of all MarCom’s assets, gathering data on and establishing baselines of MarCom statistics, hosting branding workshops with the development of new branding guidelines, generating a revised digital marketing plan and management of the public relations activities with our stakeholders. As such, the MarCom function is primed to relaunch the TTIFCMCL’s outward facing brand (i.e., T&T IFC) as ‘Your Resourceful Ally’ moving forward.

will be held with local firms to facilitate more in-depth deliberations on how to finalise the redevelopment of the value proposition. The TTIFCMCL uses insights from these activities and its networks and data to inform Government’s policy for the sector. In December 2017, Trinidad and Tobago was included on a list, published by the Global Forum, of countries deemed to be ‘non-cooperative jurisdictions for tax purposes’ due to the presence of harmful tax practices: one of which was identified as the current ‘Free Zones programme’. Compliance with international taxrelated standards is a key factor in determining the attractiveness of Trinidad and Tobago as an investment destination. Failure to comply with international standards may result in Trinidad and Tobago being subjected to various punitive measures which would negatively impact EUbased companies operating locally. This will further negatively impact the country’s ability to attract IFIs to set up operations locally. With a clear understanding of the importance of the country meeting our international obligations, the TTIFCMCL engaged EY in December 2018 to propose short-, medium- and long-term measures that should be executed within the context of financial services being offered to IFIs to eliminate the harmful tax practices. The final report from this engagement was shared with the Ministry of Finance and the Ministry of Trade and Industry to be used as a reference tool to inform their policy decisions. The TTIFCMCL worked with both ministries by providing feedback when necessary to help resolve the issues with the Free Zones, and the blacklisting

of Trinidad and Tobago – providing comments on the draft legislation and regulations for the Special Economic Zone (SPEZ) Policy which will replace the Free Zones Programme. CONSISTENT COMPLIANCE AND REPORTING The TTIFCMCL takes its own obligations of compliance just as seriously as the country’s international compliance. I inherited and have maintained a solid track record of timely reporting of accurate information about the results of operations and our financial position through regular monthly management reports, which were submitted in conjunction with all financial compliance reports to the Ministry of Finance in the required deadlines. Despite a reduction within the quantum of funds allocated by the Ministry of Finance, funds received from previous fiscal periods which financed the current FY (ended September 2019) were very carefully and rigorously managed to avoid injudicious expenditure and we stayed within the allocated amounts. An internal verification system continues to be used to track expenditure by departments to ensure they do not exceed budgeted allocations. Additionally, the annual external audit was commissioned in October 2018 and the completed audited accounts were submitted to the Ministry of Finance in time for the Annual Meeting held on December 14th, 2018. The audited accounts were also published in the daily press on December 17th, 2018, well within the deadline established by the State Enterprise Performance Monitoring Manual (SEPMM). The

INFORMING GOVERNMENT POLICY Coming out of the previous FY (ended September 2018), there was an acknowledgement of the need to re-evaluate the value proposition of Trinidad and Tobago as an ‘International Financial Centre’. Considering this, the TTIFCMCL held market sounding discussions with local consulting firms to identify appropriate strategies that are more closely aligned with the needs of specific International Financial Institutions (IFIs). These meetings provided the TTIFCMCL with valuable insights and further discussions

We remain a small team though, but one filled with passion, drive and the ability to go beyond in all that we do... 25

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semi-annual unaudited financial statements for the period October 1st, 2018 to March 31st, 2019 were published in a daily newspaper on May 27th, 2019. In keeping with the SEPMM, the TTIFCMCL developed a rigorous Disaster Recovery and Business Continuity plan, which would see us functioning almost immediately after any type of disaster. Notwithstanding the fact that our purchases are relatively few and not as large in scope as other state enterprises, we took the proactive approach of reforming all our policies and procedures to align with national procurement legislation. For a significant portion of this FY (ended September 2019), we tested and reviewed our revised policies, with input from the Office of Procurement Regulation, as we made a commitment to maintain our unblemished compliance record. A TEAM OF RESOURCEFUL ALLIES To support all the outward-facing activities of the Company, we have filled the key positions left vacant either through separation or retirement after many years of service. This has allowed the internal organisational support services functions to continue to increase the value creation to the Company in the operational areas of: Marketing and Communications, Telecommunications and Information Technology System Support, Human Resource Management, Administrative Support, and Research. We have outsourced our Internal Audit function, while continuing with Deloitte & Touche for our external audit. We continue to maintain a diversified list of pre-qualified service providers for legal, operating supplies and other support needs. We remain a small team though, but one filled with passion, drive and the ability to go beyond in all that we do – especially in tough economic times. Interestingly, just as the T&T IFC is seen by investors and stakeholders as a ‘resourceful ally’, so too are we, members of the team by each other. This includes the Board, members of which present unwavering openness, attention to detail and expert advice, along with flexibility which empowers us to operationalise the strategic plan. We are all dependent upon

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each other to create synergy to ensure that the TTIFCMCL delivers on our vision. The work has been long and calls for agility in this dynamic world, but in the latter part of the period, I have observed increased interest in and activity toward new investment by international and domestic partners and I remain optimistic about the upcoming FY (ending September 2020). We will maintain our trajectory and ensure we are well informed, networked and resourced so that we offer the added value that incoming investors, local players and the Government all need to take the FS sector forward. I look forward to 2020 as all indicators point to conversion of leads and progression of our FinTech agenda. The TTIFCMCL thanks all stakeholders for staying the course with us in these exciting times. Please continue to share your ideas, insights and energy so that together we can expand the FS sector and by extension transform the economic landscape for all sectors throughout the nation for our benefit and that of the generations to come. As we all look ahead to a future where individuals, companies and the State integrate new-to-world financial products and services that make life faster, cheaper and easier, we remain ready to be ‘your resourceful ally’!

Chief Executive Officer Omar Sultan-Khan

The FinTech Revolution is Here Become a Part of this Movement Join FinTech T&T and help transform Trinidad and Tobago into a leading regional FinTech hub

Who We Are

What We Do

The FinTech Association of Trinidad & Tobago (FinTech T&T) will be led by a volunteer group of members who are passionate about driving change and actively seeking solutions to improve the delivery of financial services in Trinidad and Tobago and the wider Caribbean. FinTech T&T will be a not-for-profit organisation with an independent structure, based on the pillars of transparency, accountability and good governance.

We believe that the key ingredients exist for Trinidad & Tobago to be a regional leader in FinTech. FinTech T&T aims to be the catalyst that leads to the sustained development of FinTech solutions, that puts financial services within the reach of the unbanked and underbanked and increases the ease of doing business in the region. To achieve this, FinTech T&T will:

Membership will be open to promising FinTech start-ups, individuals involved in FinTech activities, financial services providers, tech and cybersecurity companies. FinTech T&T will work closely with Government and regulators to advocate for the adoption of global standards in the local FinTech sector.

Advocate development of financial solutions and attract investment in the local FinTech sector. Collaborate Collaborate with domestic, regional and international stakeholders and FinTech organisations, who share similar goals on mutually beneficial projects and initiatives. Educate

Facilitate workshops and training opportunities led by industry experts to foster the development of FinTech companies, mentor start-ups and promote best practices within the sector.

FinTech T&T will create an environment where relevant information is shared and encourage innovation by members.

To find out about becoming a member visit www.ttifc.co.tt/fintechtt or send an email to fintech@ttifc.co.tt

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

We are imparters of success Paul Anselmo Chief Executive Officer, Evolve Mortgage Services

Successful partnerships have been generated between the TTIFCMCL and companies around the world. These partners have expressed their desire to join our financial services ecosystem, and expand their roots to other latitudes, specifically to Trinidad and Tobago, ‘a hidden gem’, described as such by the Evolve Mortgage Services’ (EMS) CEO, Paul Anselmo. EMS is one of the most representative investors in recent years. They are positioned among the five main vendors to resolution trust companies in the United States. We began working with them in August 2018, and we accomplished the task of building a nearshoring operation with skilled domestic finance and accounting professionals and a solid ICT infrastructure. We incubated EMS at the International Waterfront Centre. We facilitated their setting up of business operations in our country through

our Personal Facilitation Process, providing all the legal information applicable to the company. We linked them with the professional staff they needed to start their operation. We helped with the opening of their bank accounts and preparation of all related documentation. Anselmo has stated his amazement at the highquality of business in our country, and the excellence of our people. This is a great success story of how we collaborate with foreign companies aligned to our territory, and how we guide them to grow and develop properly. We will always be proud to be your resourceful ally to make the set-up of your investment in Trinidad and Tobago easy and a success.

T&T IFC – Your Resourceful Ally.

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

2019 in review

Left to right: 1. TTCIC Post Budget Breakfast Exhibit, Oct 2018 2. ICATT Annual Conference, Nov 2018 3. Annual Meeting, Dec 2018 4. Evolve Mortgage Services Soft Launch, Dec 2018 5. Finance and Accounting BPO Training Graduation, Dec 2018 6. Outsourcing World Summit, Feb 2019 7. Trinidad & Tobago Consulate, Miami, Feb 2019 8. Site Selectors’ Guild, Mar 2019 9. MoU with UWI-Roytec, Mar 2019 10. Trinidad & Tobago Consulate, NY, May 2019

11. Outsource to the Caribbean, May 2019 12. Nexus Nearshore Conference, May 2019 13. Infosys Visit, May 2019 14. SSON Finance and Accounting Conference, Jun 2019 15. Staff farewell to outgoing VP, Corporate Services, Jun 2019 16. AMCHAM T.H.I.S. Conference, Jun 2019 17. MoU with ACCA, Aug 2019 18. Central Bank Meets Blockchain Conference, Sep 2019 19. Meeting with Suriname Central Bank, Sep 2019 20. Meeting with Suriname’s Minister of Trade, Industry & Tourism, Sep 2019

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

All about your success Potential Investors

Education

Our Personal Facilitation Process and the free incubation space help your company land softly in Trinidad and Tobago. The plan starts before your investment decision and after you have made the bold step to relocate to Trinidad and Tobago. You can be part of the largest markets in our region by growing quickly and effectively.

The digital economy has transformed the way companies do business and has shifted their human resource needs. As such, we are working with educational institutions to help match the talent expectations of finance and accounting firms investing in our country.

Local BPO Operators We know that expanding your company is one of your biggest goals, and we would like you to do so right here in our nation. We are here to make that investment decision easier and expand your growth in Trinidad and Tobago. Sometimes the investment decision comes down to a single sticking point. We guide you through this process and help you to overcome any challenges.

Business & Professional Associations, Banks, Financial Services and Insurance Companies Looking to open a thriving shared services centre? Then set up a meeting with us, your resourceful ally. There are various ways we can help you get the most out of choosing Trinidad and Tobago, such as being located in special economic zones and meeting with our team and Government Ministers to discuss key decision points and solutions.

Government and Parliament

Local FinTech Operators

While we work to strengthen the economy, we reach potential investors around the world to advise them on the elements of our legislation that work as tools to perfectly increase the ease of doing business in our country. We are also here to work with you on the opportunities to improve the attractiveness to invest in our nation.

You are already ahead of the curve and have adopted FinTech in your businesses, but you are waiting for the rest of society to catch up. We met many of you already in the first ever FinTech Engagement Session in 2018 and are committed to working with you to improve the local ecosystem. From developing a roadmap to facilitating the formation of the upcoming FinTech Association of Trinidad and Tobago (FinTech T&T), we are here with you to get your voice to the right ears.

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Governance Reports The Board of Directors

Name

Position

No. of Meetings held 1 Oct 2018 to 30 Sept 2019

No. of Meetings Attended

No. of Meetings Excused

% Present

Comments

Young, Richard P.

Chairman

100%

Served entire period

Ajodhasingh, Reynold

Director

100%

Served entire period

Clarke, Peter

Director

88%

Served entire period

Sinanan, Inez

Director

100%

Served entire period

Williams, Ewart

Director

75%

Served entire period

Table 1: Board of Directors Meetings October 2018 â&#x20AC;&#x201C; September 2019

Mr. Reynold Ajodhasingh Director

Mr. Peter Clarke Director

Mr. Richard P. Young Chairman

Ms. Inez Sinanan Director

Mr. Ewart Williams Director

Appointed 27th April, 2016 Reappointed 14th December, 2018 to present

Appointed 11th March, 2013 Reappointed 14th December, 2018 to present

Appointed 27th April, 2016 Reappointed 14th December, 2018 to present

Appointed 11th March, 2013 Reappointed 14th December, 2018 to present

Appointed 27th April, 2016 Reappointed 14th December, 2018 to present

They are all non-executive Directors.

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Understanding our companyâ&#x20AC;&#x2122;s power

Left to right: Nicole Gibbs-Francis, Administrative Assistant; Donna Elcock, Administrative Assistant; Ihsaan Khan, IT Administrator; Acklima Maharaj, Accountant; Nicholette Thurton, Accounting Assistant; Annalisa Howard, Executive Secretary; Joey Rawlins, Messenger/ Driver; Dr. Michelle Salandy, Research Officer; Trina Peters-Thompson, Corporate Services Officer; Nicola Calliste, Receptionist/Administrative Assistant

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Directors’ Report The Directors are pleased to present their report to the Shareholders together with the Audited Financial Statements for the year ended September 30th, 2019. The Audit, Risk and Compliance Committee of the Board has reviewed and assessed the financial reporting processes and controls that led to the compilation of the financial statements and have found them to be appropriate. The Committee recommended to the Board, and the Board subsequently approved the audited Financial Statements and the 2019 Annual Report which will be presented to the Shareholders at the forthcoming Annual Meeting. The Directors confirm that to the best of their knowledge and belief the Audited Financial Statements are complete and in conformity with International Financial Reporting Standards and appropriate accounting principles and present a true and fair view of the financial statement of the Company.

Board Committees Disclosure of Interest of Directors and Officers in any Material Contract:

There are four constituted Committees of the Board:

At no time during the current financial year has any Director or Officer been a party to a material contract or a proposed material contract with the Company or been a Director or Officer of any entity or had material interest in any entity that was a party to a material contract or proposed material contract with the Company.

- the Corporate Governance, Strategy and Human Resource Committee

Directors: All Directors retired and were reappointed by the Corporation Sole on December 14th, 2018 to serve until the next Annual Meeting of the Company. Auditors: The Auditors, Deloitte and Touche, were reappointed on December 14th, 2018 for the fiscal year ending September 30th, 2019. Being eligible, they have offered themselves for reappointment for the ensuing fiscal year.

- the Audit, Risk and Compliance Committee - the Finance and Investment Committee and - the Tenders Committee. These Committees operate to ensure the effective functioning of the Board through the provision of oversight for the operations of the Company. Board Committees are required to report to the Board on the work carried out through the Committee and the respective areas of oversight. In addition to specific reports, the minutes of the Committee meetings are tabled for review and noting by the full Board. Audit, Risk and Compliance Committee: Committee Members: Mr. Reynold Ajodhasingh (Chairman) and Mr. Peter Clarke, member. The purpose of the Audit, Risk and Compliance Committee of the Board shall be to assist the Board in monitoring: •

The periodic financial reports and other financial information provided by the Company to the Board, any governmental body or the public;

• The Company’s systems of internal controls regarding finance, accounting, financial reporting, and financial compliance that Management and the Board have established; • The Company’s auditing, accounting and financial reporting processes generally; Director

Director

• The risk management, compliance and control activities of the TTIFCMCL consistent with the function; and •

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

The Committee held four meetings during the year with full attendance. During this fiscal period, the internal audit function was instituted and effected with the aim of ensuring the operations of the Company follow the internal controls which are embedded in its infrastructure. This will encourage continuous improvement of and foster adherence to the Company’s policies, procedures and practices at all levels. This is also a compliance requirement based on the guidelines of the State Enterprises Performance Monitoring Manual. Corporate Governance, Strategy and Human Resource Committee Committee Members: Ms. Inez Sinanan (Chair), and Mr. Richard P. Young, member. The purpose of the Corporate Governance, Strategy and Human Resource (HR) Committee of the Board shall be: •

To ensure compliance by the Directors and Executive Management of the Company with the requirements of the Corporation Sole, the Companies Act, ethical standards consistent with their fiduciary responsibility

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and to review and monitor implementation of the Strategic Plan of the Company; and •

To assist the Board in its responsibilities to implement best practice in the execution of its Human Resources and Industrial Relations functions. This contributes to an effective organisational structure as well as competitive human resources compensation policies and practices within the Company.

The Committee held six meetings during the year with full attendance. These meetings covered reviews of the Strategic Plan for discussion with the full Board, and subsequent submission to the Ministry of Finance, as well as a number of HR matters including the recruitment for filling of vacancies and amendments of contract terms and conditions to be standardised against those utilised within the Public Service. The Committee reviewed the Company’s Travel Policy as well as the Code of Ethics in order to include clauses on Conflicts of Interest in the company’s operations to ensure transparency in its activities. Finance and Investment Committee: Committee Members: Mr. Ewart Williams (Chairman) and Mr. Richard P. Young, member. The purpose of the Finance and Investment Committee shall be to: •

Assist the Board in setting the investment policy to be adopted for the management of the Company’s funds as approved by the Board and in compliance with any guidelines established by the Minister of Finance (Corporation Sole);

• Ensure that the investment of Company funds is conducted in accordance with the investment policy and best practice; and • Regularly monitor and review the finances of the Company. The Committee held one meeting during the year with full attendance. Management Accounts are reviewed on a monthly basis with

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

the CEO, to ensure the accuracy of the report presented to the Board. The local investment environment was explored to determine the available options for any investment accounts held by the Company. Tenders Committee: Committee Members: Ms. Inez Sinanan, Chair. The purpose of the Tenders Committee shall be to: • Approve the acquisition of goods and services above TT$500,000; •

Ensure that Value for Money, Transparency and Accountability are maintained at all times within the procurement process of the organisation; and

• Make recommendations to the Board of Directors on the acquisition of goods and services within its authority level. The Committee, with the approval of the Minister of Finance, is constituted with one Board member as Chair of the Committee, with the proviso that all decisions of the Committee on Tenders issued by the Company must be brought to the Board for final decision.

Financial Statements

The Committee held three meetings during the year to make recommendations to the Board on tenders issued by the Company that fell within the purview of the Committee. In addition to this, however, as part of its oversight responsibility, the Committee presented quarterly reports to the Board on all contracts and purchase orders entered into by the Company of values of TT$5,000 and over; this oversight ensures transparency and full reporting to the Board on purchases and contracts entered into by management. A revised Policy and Procedure Manual has been drafted by Management and was submitted to the Office of Procurement Regulation to be approved. Once this is approved, the procurement process based on the legislation will be fully implemented.

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Statement of management’s responsibilities Management is responsible for the following: • Preparing and fairly presenting the accompanying financial statements of Trinidad and Tobago International Financial Centre Management Company Limited, (‘the Company’) which comprise the statement of financial position as at September 30, 2019, the statements of profit or loss and other 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 the Company’s operational efficiencies; • Ensuring that the system of internal control operated effectively during the reporting period; • Producing reliable financial reporting that complies with laws and regulations; and • Using reasonable and prudent judgement in the determination of estimates. In preparing these audited financial statements, management utilised the International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances. Nothing has come to the attention of management to indicate that the Company will not remain a going concern for the next twelve months from the reporting date; or up to the date; the accompanying financial statements have been authorised for issue, if later. Management affirms that it has carried out its responsibilities as outlined above.

Chief Executive Officer November 21st, 2019

Vice President, Corporate Services November 21st, 2019

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Independent auditor’s report

Independent auditor’s report - Continued

Report on the Audit of the Financial Statements

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

To the shareholders of Trinidad and Tobago International Financial Centre Management Company Limited

Opinion We have audited the financial statements of Trinidad and Tobago International Financial Centre Management Company Limited (the ‘Company’), which comprise the statement of financial position as at September 30, 2019, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at September 30, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information other than the financial statements Management is responsible for the other information. The other information obtained at the date of this auditor’s report comprises the information included in the annual report but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with the audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

To the shareholders of Trinidad and Tobago International Financial Centre Management Company Limited

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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Independent auditorâ&#x20AC;&#x2122;s report - Continued

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

To the shareholders of Trinidad and Tobago International Financial Centre Management Company Limited

Statement of financial position

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.

As at September 30, Notes 2019 2018 $ $ ASSETS Non-current assets Property plant and equipment 4 858,331 976,662 Deferred tax asset 9 62,272 54,264

Deloitte & Touche Derek Mohammed, (ICATT #864) Port of Spain Trinidad November 21, 2019

(Expressed in Trinidad and Tobago dollars)

Total non-current assets 920,603 1,030,926 Current assets Tax receivable 4,221 5,024 Other receivables 5 181,560 421,337 Short term deposits 6 - 25,000,000 Cash and cash equivalents 6 26,729,099 13,510,281 Total current assets

26,914,880

38,936,642

Total assets 27,835,483 39,967,568 EQUITY AND LIABILITIES Equity Stated capital 7 100 100 Retained earnings 1,027,229 691,540 Total equity 1,027,329 691,640 Current liabilities Tax payable 33,322 86,831 Other liabilities 8 1,360,110 1,242,653 Deferred operating subventions 10 25,414,722 37,946,444 Total current liabilities

26,808,154

39,275,928

Total equity and liabilities

27,835,483

39,967,568

The notes set out on pages 51 to 73 form an integral part of these financial statements. On November 21, 2019, the Board of Directors of Trinidad and Tobago International Financial Centre Management Company Limited authorised these financial statements for issue.

___________________________Director ___________________________Director

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

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

Year ended September 30, Notes 2019 2018 $ $ Government subventions 10 12,531,722 10,580,292 Interest income 454,941 410,873 Foreign exchange gain / (loss) 20,336 (48,232) Disposal of assets gain 632 10,676 Other income 94 Operating and administrative expenses 11 (12,531,722) (10,532,060) Profit for the year before taxation 476,003 421,549 Taxation 12 (140,314) (121,936)

Statement of changes in equity for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars)

Stated Retained capital earnings Total $ $ $ Balance at October 1, 2018 100 691,540 691,640 Total comprehensive income - 335,689 335,689 Balance at September 30, 2019 100 1,027,229 1,027,329 Balance at October 1, 2017 100 391,927 392,027 Total comprehensive income - 299,613 299,613 Balance at September 30, 2018

100

691,540

691,640

Profit for the year after taxation 335,689 299,613 Other comprehensive income - Total comprehensive income 335,689

The notes set out on pages 51 to 73 form an integral part of these financial statements.

299,613

The notes set out on pages 51 to 73 form an integral part of these financial statements.

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

Statement of cash flows

(Expressed in Trinidad and Tobago dollars)

Year ended September 30, Notes 2019 2018 $ $ Cash flows from operating activities Profit before taxation 476,003 421,549 Adjustment for: Operating subventions released to the statement of profit or loss 10 (12,531,722) (10,580,292) Gain on disposal of fixed assets (632) (10,676) Depreciation 4 294,308 318,948 Operating loss before working capital changes

(11,762,043)

Company information

Trinidad and Tobago International Financial Centre Management Company Limited (the â&#x20AC;&#x2DC;Companyâ&#x20AC;&#x2122;) was incorporated in the Republic of Trinidad and Tobago under the Companies Act 1995 on November 6, 2008. The Company started activities on August 21, 2009 and was established by the Government of the Republic of Trinidad & Tobago to manage the implementation and operations of the Trinidad and Tobago International Financial Centre. Its registered office is situated at 15th Floor Tower D, International Waterfront Centre, No. 1 Wrightson Road, Port of Spain. The Company currently has sixteen (16) employees (2018: fifteen (15)).

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

Summary of significant accounting policies and estimates

2.1

Basis of preparation

These financial statements have been prepared on a historical basis and are expressed in Trinidad and Tobago dollars.

(9,850,471)

Decrease / (increase) in other receivables 239,777 (242,814) Increase in other payables 117,457 219,267 Cash used in operations (11,404,809) (9,874,018) Taxation paid

(201,028)

(93,671) 2.2 Statement of compliance

Net cash flows used in operating activities (11,605,837) (9,967,689) Cash flows from investing activities Purchase of property, plant and equipment 4 (175,977) (183,333) Proceeds from sale of fixed assets 632 11,598 Sale of Investment in fixed deposit 25,000,000 (15,000,000)

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

2.3 Significant accounting policies a) Property, plant and equipment

Net cash flow generated by (used in investing activities) 24,824,655 (15,171,735) Cash flows from financing activities Government subventions 10 - 9,275,639 Net cash flows generated from financing activities - 9,275,639 Net increase / (decrease) in cash and cash equivalents 13,218,818 (15,863,785) Cash and cash equivalents at beginning of year 13,510,281 29,374,066 Cash and cash equivalents at end of year 6 26,729,099

Property, plant and equipment are stated at historical cost less accumulated depreciation. Depreciation is provided on a straight-line basis at the following rates which are estimated to write off the cost of the assets over their estimated useful lives.

Office equipment

25%

Motor vehicles 20%

Furniture and fixtures

10%

Computers

33 1/3%

10%

Leasehold improvements

13,510,281 b) Other receivables

Other receivables are carried at anticipated realisable value.

The notes set out on pages 51 to 73 form an integral part of these financial statements.

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Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 2.

Summary of significant accounting policies and estimates (continued)

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 2.

Summary of significant accounting policies and estimates (continued)

2.3 Significant accounting policies (continued)

c) Cash and cash equivalents

f) Foreign currency translation

For the purpose of the statement of cash flows, cash and cash equivalents comprise cash in hand, deposits held on call with banks, deposits with maturity dates which are within three (3) months when acquired and investment in money market instruments, net of bank overdrafts.

The Company’s financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Company’s financial statements are presented in Trinidad & Tobago dollars.

Short term deposits are deposits held with banks with maturity dates greater than three (3) months.

For the purposes of presenting these financial statements, the Company’s foreign currency transactions are translated into local currency using the exchange rates prevailing at the time the transactions occur. The assets and liabilities of the Company held in foreign currency are translated at the average exchange rates at the end of the period.

d) Other payables

Other payables are a present obligation arising from past events, which is expected to result in an outflow of resources embodying economic benefits. Trade and other payables are recognised initially at fair value.

g) Government subventions

e) Taxation Current income tax

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

h) Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value through profit or loss and recognised immediately in profit or loss. The Company applied IFRS 9 prospectively, with an initial application date of January 1, 2018. The Company has not restated the comparative information, which continues to be reported under IAS 39. If differences were identified, these differences would have been reported as an adjustment to opening retained earnings. There were no differences arising from the adoption of IFRS 9.

Deferred income taxes

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

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

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

(i) Initial recognition of financial assets

Financial assets, other than those designated and effective as hedging instruments, are classified and subsequently measured based on the following categories:

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TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 2.

Summary of significant accounting policies and estimates (continued)

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 2.

Summary of significant accounting policies and estimates (continued)

2.3 Significant accounting policies (continued)

• amortised cost

For the purpose of assessing whether there has been a significant increase in credit risk since initial recognition of financial instruments that remain recognised on the date of initial application of IFRS 9 (i.e., January 1, 2018), the Directors have compared the credit risk of the respective financial instruments on the date of their initial recognition to their credit risk as at January 1, 2017.

On assessment of items existing as at October 1, 2018 that are subject to impairment provisions of IFRS 9 the following was noted:

The only Financial Instruments held by the Company in 2019 was Cash and Cash Equivalents comprising of (Cash in Hand (TTD); Cash in Hand (Foreign currencies); Cash at Bank; Mutual Funds and Cash at Bank (USD)). There were two Fixed Deposits which matured in 2019 and were not reinvested but added to the funds held in the Mutual Fund. In 2018 the Company held similar Financial Instruments as the current year, Cash and Cash Equivalents comprising of (Cash in Hand (TTD); Cash in Hand (Foreign currencies); Cash at Bank; Mutual Funds and Cash at Bank (USD)). In addition to these there were also two (2) short term Fixed deposits held in TT dollars. Given the nature of the Financial instruments the Directors of the Company do not anticipate a significant increase in credit risk on the Company’s Financial Statements arising since the initial recognition of IFRS 9.

•

fair value through profit or loss (FVTPL)

•

fair value through other comprehensive income (FVTOCI)

The classification is determined by both:

•

the entity’s business model for managing the financial asset

•

the contractual cash flow characteristics of the financial asset

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented under impairment.

(ii) Impairment of financial assets First time application of IFRS 9

In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires the Company to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets.

IFRS 9 requires the Company to recognise a loss allowance for expected credit losses on financial instruments.

In particular, IFRS 9 requires the Company to measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses (ECL) if the credit risk on that financial instrument has increased significantly since initial recognition, or if the financial instrument is a purchased or originated credit‑impaired financial asset.

However, if the credit risk on a financial instrument has not increased significantly since initial recognition (except for a purchased or originated credit‑impaired financial asset), the Company is required to measure the loss allowance for that financial instrument at an amount equal to 12‑months ECL. IFRS 9 also permits a simplified approach for measuring the loss allowance at an amount equal to lifetime ECL for trade receivables and lease receivables in certain circumstances.

i) Comparative information

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year. These changes have no effect on the profit after taxation of the Company for the previous year.

YOUR RESOURCEFUL ALLY

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 2.

Summary of significant accounting policies and estimates (continued)

2.4 Use of estimates

The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from the estimates.

Useful lives and residual values of property, plant and equipment

The estimates of useful lives as translated into depreciation rates are detailed in the property, plant and equipment policy below. These rates and the residual lives of the assets are reviewed annually taking cognizance of the forecast commercial and economic realities and through benchmarking of accounting treatments within the industry.

Income taxes

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

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 3.

Application of new and revised International Financial Reporting Standards (‘IFRS’)

3.1

New IFRS and amendments to IFRS that are mandatorily effective for the current year

In the current year, the Company has applied a number of amendments to IFRS and new interpretations issued by the International Accounting Standards Board (‘IASB’) that are mandatorily effective for an accounting period that begins on or after October 1, 2018.

• IFRS 9 Financial Instruments

Finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement.

The directors of the Company anticipate that the application of IFRS 9 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

• IFRS 15 Revenue from Customer

IFRS 15 provides a single, principles-based five-step model to be applied to all contracts with customers.

The directors of the Company anticipate that the application of IFRS 15 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

• IFRIC 22 Foreign Currency Transactions and Advance Consideration

The interpretation addresses foreign currency transactions or parts of transactions where:

Contingent liabilities

- there is consideration that is denominated or priced in a foreign currency;

Management applies its judgement to the facts and advice it receives from its attorneys, advocates and other advisors in assessing if an obligation is probable, more likely than not, or remote. Such judgement is used to determine if the obligation is recognised as a liability or disclosed as a contingent liability.

- the entity recognises a prepayment asset or a deferred income liability in respect of that consideration, in advance of the recognition of the related asset, expense or income; and

- the prepayment asset or deferred income liability is non-monetary.

The directors of the Company anticipate that the application of IFRIC 22 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

• Clarifications to IFRS 15 ‘Revenue from Contracts with Customers’

Amends IFRS 15 Revenue from Contracts with Customers to clarify three aspects of the standard (identifying performance obligations, principal versus agent considerations, and licensing) and to provide some transition relief for modified contracts and completed contracts.

The directors of the Company anticipate that the application of IFRS 15 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

YOUR RESOURCEFUL ALLY

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars)

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars)

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

3.1

New IFRS and amendments to IFRS that are mandatorily effective for the current year (continued)

3.2 New and revised IFRS in issue but not yet effective

• Classification and Measurement of Share-based Payment Transactions

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

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

(Amendments to IFRS 2)

• IFRS 16

Leases 1

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

•

IFRIC 23

Uncertainty over income tax treatments 1

•

Amendments to IFRS 9

Prepayment Features with Negative Compensation 1

•

Amendments to IAS 28

Long-term Interests in Associates and Joint Venture 1

•

Amendments to IAS 19

Plan Amendment, Curtailment or Settlement 1

•

Amendments to IFRS

Annual improvements to IFRS 2015-2017 2

•

Amendments to IFRS 3

Definition of a Business 2

•

Amendments to IAS 1 and IAS 8

Definition of Material 2

The directors of the Company anticipate that the application of IFRS 2 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

• Transfers of Investment Property (Amendments to IAS 40)

Amends paragraph 57 to state that an entity shall transfer a property to, or from, investment property when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does not constitute evidence of a change in use. The directors of the Company anticipate that the application of IAS 40 does not have a material impact on the amounts reported in respect of the Company’s financial assets and liabilities.

• Amendments to References to the Conceptual Framework in IFRS Standards 2 • Interest Rate Benchmark Reform

(Amendments to IFRS 9, IAS 39 and IFRS 7) 2

1 Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted. 2 Effective for annual periods beginning on or after January 1, 2020, with earlier application permitted. 3 Effective for annual periods beginning on or after January 1, 2021, with earlier application permitted.

• Annual Improvements to IFRS Standards 2014–2016 Cycle

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

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

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

• IFRS 16 Leases

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

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

YOUR RESOURCEFUL ALLY

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 3.

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 3.

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

3.2 New and revised IFRS in issue but not yet effective (continued)

• IFRIC 23 Uncertainty over Income Tax Treatments

• Amendments to IAS 19, Plan Amendment, Curtailment or Settlement

The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are:

- In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

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

The interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. It specifically considers:

•

• Assumptions for taxation authorities’ examinations

•

Whether tax treatments should be considered collectively

The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates The effect of changes in facts and circumstances The directors of the Company anticipate that the application of IFRIC 23 in the future may not have a material impact on the amounts reported and disclosures made in the Company’s financial statements. However, it is not practicable to provide a reasonable estimate of the effect of IFRIC 23 until the Company performs a detailed review.

• Prepayment Features with Negative Compensation (Amendments to IFRS 9)

Amends the existing requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments.

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

• Amendments to IAS 28, Long-term Interests in Associates and Joint Ventures

Clarifies that an entity applies IFRS 28 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied.

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

The directors of the Company anticipate that the application of IAS 28 in the future may not have a material impact on the amounts reported and disclosures made in the Company’s financial statements. However, it is not practicable to provide a reasonable estimate of the effect of IAS 28 until the Company performs a detailed review.

If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.

• Annual Improvements to IFRS Standards 2015–2017 Cycle IFRS 3 and IFRS 11 - The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. IAS 12 - The amendments clarify that the requirements in the former paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits. IAS 23 - The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.

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

• Amendments to IFRS 3, Definition of a Business

The amendments in Definition of a Business (Amendments to IFRS 3) are changes to Appendix A Defined terms, the application guidance, and the illustrative examples of IFRS 3 only. They:

clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs;

YOUR RESOURCEFUL ALLY

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 3.

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019 (Expressed in Trinidad and Tobago dollars) 3.

3.2 New and revised IFRS in issue but not yet effective (continued)

- narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs;

• Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)

add guidance and illustrative examples to help entities assess whether a substantive process has been acquired;

remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs; and

The amendments in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) clarify that entities would continue to apply certain hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform.

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

- add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. 4.

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

• Amendments to IAS 1 and IAS 8, Definition of Material

The amendments in Definition of Material (Amendments to IAS 1 and IAS 8) clarify the definition of ‘material’ and align the definition used in the Conceptual Framework and the standards. The directors of the Company do not anticipate that the application of these amendments will have a significant impact on the Company’s financial statements.

• Amendments to References to the Conceptual Framework in IFRS Standards

Application of new and revised International Financial Reporting Standards (‘IFRS’) (continued)

Together with the revised Conceptual Framework published in March 2018, the IASB also issued Amendments to References to the Conceptual Framework in IFRS Standards. The document contains amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not all amendments, however, update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASC framework adopted by the IASB in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in the standard have not been updated with the new definitions developed in the revised Conceptual Framework.

Property, plant and equipment

Leasehold Motor Furniture Computer 2019 Improvements Equipment Vehicles & Fixtures Software

Total

$ $ $ $ $ $ Cost At October 1, 2018 905,792 1,816,320 284,799 316,204 485,400 3,808,515 Additions - 127,050 - 19,114 29,813 175,977 Disposals - (10,415) - - - (10,415) At September 30, 2019 905,792 1,932,955 284,799 335,318 515,213 3,974,077 Accumulated depreciation At October 1, 2018 374,425 1,667,061 185,178 155,815 449,374 2,831,853 Disposals - (10,415) - - - (10,415) Depreciation 90,579 96,611 56,960 32,417 17,741 294,308 At September 30, 2019

465,004

1,753,257 242,138 188,232

467,115 3,115,746

Net book value At September 30, 2019

440,788

179,698 42,661 147,086 48,098 858,331

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

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

(Expressed in Trinidad and Tobago dollars) 4.

(Expressed in Trinidad and Tobago dollars) 6.

Property, plant and equipment (continued)

Leasehold Motor Furniture Computer 2018 Improvements Equipment Vehicles & Fixtures Software

Total

$ $ $ $ $ $ Cost At October 1, 2017 905,792 Additions - Disposals -

1,827,829 286,639 316,204 437,041 3,773,505 134,974 - - 48,359 183,333 (146,483) (1,840) - - (148,323)

At September 30, 2018 905,792 1,816,320 284,799 316,204 485,400 3,808,515 Accumulated depreciation At October 1, 2017 283,846 1,694,854 130,058 124,196 428,274 2,661,228 Disposals - (146,483) (1,840) - - (148,323) Depreciation 90,579 118,690 56,960 31,619 21,100 318,948 At September 30, 2018

374,425

1,667,061

185,178

155,815

449,374 2,831,853

Net book value At September 30, 2018

531,367

149,259 99,621 160,389 36,026 976,662

2019 2018 $ $ Cash in hand - TTD 3,614 6,000 Cash in hand - foreign currencies 21,550 21,328 Cash at bank - TTD 493,290 290,500 Cash at bank - USD 2,800,551 3,832,842 Mutual Fund - Interest rate 2019: 0.9% (2018: 0.9%) 23,410,094 9,359,611

Total cash and cash equivalents

Fixed deposit - Interest rate 1.65% - 10,000,000 Fixed deposit - Interest rate 1.75% - 15,000,000

Total short-term deposits

26,729,099

38,510,281

26,729,099

13,510,281

25,000,000

7. Stated capital 2019 2018 $ $ Authorised: Unlimited Ordinary shares of no par value

Cash, cash equivalents and short-term deposits

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

100

Other receivables

2019 2018 $ $ Prepayment 139,781 168,132 Other receivables 41,779 253,205

181,560

421,337

8. Other liabilities 2019 2018 $ $ Accruals 161,305 438,809 Other payables 1,198,805 803,844 1,360,110 1,242,653 Other payables include provision for gratuity less payouts for the current year of $1,167,107, (2018: $761,284).

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

(Expressed in Trinidad and Tobago dollars)

Deferred tax

10.

Deferred operating subventions

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Government subventions totalling $0 (2018: $9,275,639) were received during the financial year and the balance at September 30, is shown as deferred operating subventions in the statement of financial position. The subvention income is recognised in the statement of profit or loss as expenses are incurred.

2019 2018 $ $

a) Deferred tax asset â&#x20AC;&#x201C; net:

2019 2018 $ $ At the beginning of the year Statement of Profit or Loss: 54,264 27,155 Credit for the year 8,008 27,109

At the end of the year

62,272

54,264

The deferred tax asset in the statement of financial position and the deferred tax credit in the statement of profit or loss are attributable to the following:

Beginning balance 37,946,444 39,251,097 Funds received from the Government of the Republic of Trinidad and Tobago (Note 13) - 9,275,639 Amounts transferred to statement of profit or loss (12,531,722) (10,580,292) 25,414,722 37,946,444

11.

Operating and administrative expenses

2019 2018 $ $ Credit to statement of profit or loss/other At start comprehensive At end of year income of year $ $ $

As at 31 December Deferred tax asset Property, plant & equipment 54,264

8,008

62,272

Audit fees 77,156 142,141 Bank charges 7,985 11,638 BPO/Shared Services development 1,770,438 1,076,247 Financial Markets development 2,028,337 691,997 Marketing and communications 1,633,126 1,382,016 Depreciation 294,308 318,948 Directorsâ&#x20AC;&#x2122; fees 396,000 396,000 Group health and life 92,752 82,454 Insurance 66,840 73,917 Internet charges 19,486 19,845 Janitorial services 77,585 86,596 Legal & professional fees 114,955 264,696 Meals & entertainment 5,384 3,937 Motor vehicle expenses 8,042 7,275 Office expenses 237,465 186,466 Penalty - 115 Repairs and maintenance 182,261 192,156 Salaries and related staff cost 5,295,652 5,424,617 Security 32,780 27,995 Subscriptions 61,746 7,836 Telephone expenses 129,424 135,168

12,531,722

10,532,060

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

(Expressed in Trinidad and Tobago dollars) 12.

(Expressed in Trinidad and Tobago dollars)

Taxation

14.

14.1 Categorisation

12.1 Tax charge for the period is made up as follows: 2019 2018 $ $

Financial risk management

Deferred tax (credit) (Note 9) (8,008) (27,109) Green fund levy 39,610 32,714 Corporation tax 108,712 116,331

Financial Non-financial assets and assets and Equity liabilities liabilities Instruments Total $ $ $ $ As at September 30, 2019 ASSETS

140,314

121,936

12.2 Reconciliation of applicable tax charge to effective tax charge:

Profit before tax

476,003

421,549

Tax at the rate of 30% 142,801 126,465 Expenses not allowable for taxation 35,368 6,724 Expenses allowable for taxation (59,342) (10,034) Exempt income (18,312) (32,023) Effect of timing differences 8,198 25,199 Other differences (8,008) (27,109) Green fund levy 39,610 32,714 13.

Related party transactions

The following represents transactions with related parties:

140,314

121,936

Key management compensation 2019 2018 $ $

Property, plant and equipment - 858,331 - 858,331 Deferred tax asset - 62,272 - 62,272 Other receivables - 181,560 - 181,560 Tax receivable 4,221 - - 4,221 Cash at bank and in hand 26,729,099 - - 26,729,099 Total assets 26,733,320 1,102,163 - 27,835,483 EQUITY AND LIABILITIES Shareholdersâ&#x20AC;&#x2122; equity Stated capital - - 100 100 Retained earnings - - 1,027,229 1,027,229 Liabilities Deferred operating subvention - 25,414,722 - 25,414,722 Tax payable 33,322 - - 33,322 Other liabilities - 1,360,110 - 1,360,110 Total equity and liabilities

Remuneration of management and directors

2,256,300

2,114,074

Government subventions received during the year (Note 10)

9,275,639

2,256,300

11,389,713

33,322 26,774,832

1,027,329 27,835,483

These amounts above are included in salaries and directorsâ&#x20AC;&#x2122; fees under administrative expenses. There were no other transactions between the Company and its related parties during the year.

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

(Expressed in Trinidad and Tobago dollars) 14.

(Expressed in Trinidad and Tobago dollars)

Financial risk management (continued)

14.

14.1 Categorisation (continued)

14.2 Management of financial risks (continued)

Financial Non-financial assets and assets and Equity liabilities liabilities Instruments Total $ $ $ $ As at September 30, 2018

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

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

ASSETS Property, plant and equipment - 976,662 - 976,662 Deferred tax asset - 54,264 - 54,264 Other receivables - 421,337 - 421,337 Tax receivable 5,024 - - 5,024 Cash at bank and in hand 38,510,281 - - 38,510,281 Total assets 38,515,305 1,452,263 - 39,967,568 EQUITY AND LIABILITIES Shareholders’ equity Stated capital - - 100 Retained earnings - - 691,540 Liabilities

86,831 39,189,097

691,640 39,967,568

14.2 Management of financial risks

14.3 Financial risks

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

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

The components of financial risk are liquidity risk and credit risk. All the Company’s assets and liabilities (with the exception of funds held in the Mutual Fund and fixed deposits), are non-interest bearing, denominated in Trinidad and Tobago dollars and are due within one year and therefore the Company is not exposed to significant interest rate, currency risk or price risk.

14.4 Liquidity risk

100 691,540

Deferred operating subvention - 37,946,444 - 37,946,444 Tax payable 86,831 - - 86,831 Other liabilities - 1,242,653 - 1,242,653 Total equity and liabilities

Financial risk management (continued)

Liquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost. On demand Up to 1 year 1 – 5 years Total $ $ $ $ As at September 30, 2019 Assets Other receivables - 181,560 - 181,560 Tax receivable - 4,221 - 4,221 Cash and cash equivalents 26,729,099 - - 26,729,099 Total assets 26,729,099 185,781 - 26,914,880 Liabilities Taxation payable Other liabilities

- 33,322 - 1,360,110

Total liabilities

- 1,393,432

Net liquidity gap

26,729,099

(1,207,651) 25,521,448

YOUR RESOURCEFUL ALLY

TRINIDAD AND TOBAGO IFC ANNUAL REPORT 2019

Notes to the financial statements for the year ended September 30, 2019

(Expressed in Trinidad and Tobago dollars) 14.

(Expressed in Trinidad and Tobago dollars)

Financial risk management (continued)

14.

14.4 Liquidity risk (continued)

14.6 Foreign currency risk

a) Market risk

On demand Up to 1 year 1 – 5 years Total $ $ $ $ As at September 30, 2018

(i) Foreign exchange risk

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions and investments in US$ denominated securities.

The Company has certain holdings in, and also undertakes transactions in foreign currencies, where they are exposed to foreign currency translation risk at a low level.

At 30 September 2019, if the Trinidad and Tobago dollar had weakened by 1% against the US dollar with all other variables held constant, post-tax profit for the year would have been $19,604 higher (2018: $38,328 higher), mainly as a result of foreign exchange gains/losses on translation of US dollars.

(ii) Fair value interest rate risk

The majority of the Company’s financial liabilities and its financial assets are at fixed interest terms and as a result minimises any interest rate risk faced by the Company.

Assets Other receivables Tax receivable Cash and cash equivalents

- 421,337 - 5,024 13,510,281 25,000,000

- 421,337 - 5,024 - 38,510,281

Total assets 13,510,281 25,426,361 - 38,936,642 Liabilities Taxation payable Other liabilities

- 86,831 - 1,242,653

Total liabilities

- 1,329,484

Net liquidity gap

13,510,281 24,096,877

- 37,607,158

14.5 Credit risk

The Company has exposure to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due. Key areas where the Company is exposed to credit risk are:

•

• Receivables

15.

Capital management

The Board of Directors monitors the capital base. The objectives are to safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders while maintaining a strong capital base to support the development of its business. There have been no changes from the prior year.

16.

Commitments

As at September 30, 2019, the Company has no capital commitments.

17.

Subsequent events

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

Cash at bank

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

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

YOUR RESOURCEFUL ALLY

Notes

Y o u r

R e s o u r c e f u l

A l l y

Trinidad and Tobago International Financial Centre 15th Floor, Tower D, International Waterfront Centre, 1 Wrightson Road, P.O. Box 735, Port of Spain, Trinidad & Tobago T: 1 (868) 627-3081

F: 1 (868) 624-0794

E: info@ttifc.co.tt

W: www.ttifc.co.tt