Home' Trinidad and Tobago Guardian : February 12th 2015 Contents Thursday, February 12, 2015 www.guardian.co.tt Guardian
The company was incorporated in the Republic of Trinidad and Tobago on May 02, 2005. The address of its reg-
istered office is Caroni (1975) Limited Central Office, Factory Road, Brechin Castle, Couva. The company is whol-
ly owned by the Government of the Republic of Trinidad and Tobago.
Its principal activity is to identify and implement development projects in rural communities in Trinidad on behalf
of the Government of Trinidad and Tobago to fully develop the communities for a better standard of living in those
areas. These activities are carried out in accordance with the Infrastructure Development Fund Agreement between
the Ministry of Local Government and the company. The function of the company is to provide project manage-
ment services including procuring of contractors for the implementation of approved development projects on
behalf of the Government of Trinidad and Tobago. From this function, the company earns a project management
fee and where applicable, a design fee.
The principal accounting policies adopted in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
These financial statements have been prepared under the historical cost convention and in accordance with
International Financial Reporting Standards, (IFRS).
The preparation of financial statements in conformity with International Financial Reporting Standards requires the
use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of con-
tingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expens-
es during the reporting period. Although these estimates are based on management's best knowledge of current
events and actions, actual results ultimately may differ from those estimates.
The company continues to adopt the going concern basis in preparing its financial statements notwithstanding the
net loss after taxation and the accumulated deficit at 30 September 2012. The company has received approval
and indication of funding from the Ministry of Local Government to execute several development projects in des-
ignated rural areas. Management is satisfied that these projects will earn sufficient income to meet the company's
(a) New standards, amendments and interpretations adopted by the Company
The standards, amendments and interpretations that were effective for the financial year beginning 1 October
2011 did not have a significant impact on the Company's financial statements. These included the following:
- Annual improvements to IFRSs;
- IAS 1, 'Presentation of financial statements'. This amendment clarifies that an entity will present an analysis of
other comprehensive income for each component of equity, either in the statement of changes in equity or in the
notes to the financial statements; and
- IFRS 7, 'Financial instruments'. Emphasises the interaction between quantitative and qualitative disclosures about
the nature and extent of risks associated with financial instruments.
(b) New standards, amendments and interpretations issued but not yet effective for the financial year beginning
1 October 2011 and not early adopted
These standards are not expected to have a material impact on the Company's financial statements:
• IAS 1 (amendment), 'Financial statement presentation';
• IAS 12 (amendment), 'Income taxes' on deferred tax;
• IAS 27 (revised 2011),'Separate financial statements';
• IFRS 7, 'Financial instruments: Disclosures' on derecognition;
• IFRS 9, 'Financial instruments';
• IFRS 13, 'Fair value measurement'.
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated on the
following basis at varying rates which are considered appropriate to write off the cost of assets over their estimat-
ed useful lives as follows:
Over the period of 15 years
Security system, site signs and equipment
15% - 20%
Motor vehicles, computer equipment
Office furniture and equipment
15% - 20%
Repairs and maintenance costs are charged to the statement of comprehensive income during the financial period
in which they are incurred. Gains and losses on disposal of property, plant and equipment are determined by ref-
erence to their carrying amounts and are taken into account in determining operating profit.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of finan-
cial position date. An asset's carrying amount is written down immediately to its recoverable amount if the assets
carrying amount is greater than its estimated recoverable amount.
The company's "functional and presentation currency" is in Trinidad and Tobago dollars, which is the currency of
the primary economic environment in which the company operates.
Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transactions.
Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. Year-end
balances are translated at year-end exchange rates.
Current tax is the expected taxation payable on the taxable income for the year, using the tax rates in force at the
statement of financial position date.
Deferred income tax is provided, using the liability method, for all temporary differences arising between the tax bases
of the assets and liabilities and their carrying values for financial reporting purposes. Deferred income tax is deter-
mined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
The principal temporary differences arise from depreciation and amortisation on fixed assets and tax losses not yet
utilised at the statement of financial position date.
Financial instruments carried on the statement of financial position include cash and bank balances, amounts
receivable and payable. The particular recognition methods adopted are disclosed in the individual policy state-
ments associated with each item.
Credit risk arises mainly from cash and cash equivalents as well as credit exposure to receivable balances. With
regard to cash and cash equivalents, deposits are held with banks and financial institutions with a sound current
and past operating history, and risk of loss is considered as being minimal. The receivable balances relate to
amounts due from certain Government Ministries and collection of amounts outstanding are considered to be vir-
The vast majority of the company's business is in the local currency and therefore there is minimal foreign exchange risk.
The company is not exposed to commodities or securities price risk.
Management monitors rolling forecasts of the company's liquidity requirements to ensure it has sufficient cash to
meet operational needs. Such forecasting takes into consideration the company's day to day operational expens-
es as well as the cash flow requirements for settling contractor balances. The company does not have any bor-
rowings or other interest bearing debts. As at 30 September 2012, the contractual obligations were in relation to
contractor balances, the balances being due within 12 months of the balance sheet date.
The nominal values less impairment provision of trade receivables and payables are assumed to approximate their
For the purposes of the cash flow statement, cash and cash equivalents represent cash in hand and deposits held
at call with First Citizens Bank Limited.
The company derives operating income primarily from the following sources:
a. Project management fees
b. Design fees
Project management fees and design fees are based on a percentage (7.5% and 2% respectively) of funds dis-
bursed by Government for development projects. Income is recognised on the accrual basis using the value of con-
tract cost certified. Fees received in advance are deferred and recognised over the duration of the projects. Interest
income is recognised on the accrual basis unless collectability is in doubt.
Receivables are recognised when liabilities have been recognised by the company on behalf of the Ministries and
are recorded at fair value less provision for impairment. Significant financial difficulties of the debtor, probabili-
ty that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are
considered indicators that the receivable is impaired. The amount of the provision is the difference between the
asset's carrying amount and the estimated future cash flows. The amount of the provision is recognised in the state-
ment of comprehensive income within 'administrative expenses'.
Provisions are recognised when the company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate
of the amount can be made.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.
Common shares are classified as equity.
The company has no retirement benefit plans for its employees. In lieu of a pension, the company pays employ-
ees a gratuity of 20% of their basic salary for each month of service until the end of their contract which is usual-
ly within 12 months of the statement of financial position date.
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