Home' Trinidad and Tobago Guardian : June 29th 2017 Contents National Infrastructure Development Company Limited
24. Administrative and other expenses
Legal, professional and consultancy fees
Repairs & maintenance
Repairs & maintenance vessels
Print reproduction and stationery
Office and other expenses
25. Financial instruments
The aggregate fair values of financial assets and liabilities in the Statement of Financial Position at
30 September 2014 are disclosed hereunder.
Short term financial assets and liabilities
The carrying amounts of financial assets comprising cash and bank balances and accounts receiv-
able and financial liabilities comprising accounts payable at transaction value, are a reasonable
estimate of their fair values because of the short maturity of these instruments.
Financial instruments that potentially subject the Company to credit risk include trade debtors. These
are due primarily from the Government of The Republic of Trinidad and Tobago. No provisions
have been set up against the receivable balances for potential credit losses as the likelihood of this
occurring is remote.
26. Capital management
The Company has no formal policy with regards to capital management, as the Company is cur-
rently financed through Government subventions and loans.
27. Financial risk management objectives and policies
The risk management process is an integral part of management and it is vital to the health and
safety of employees and members of the public.
Role of the Board
The Board of Directors, under the Companies Act 1995, directs the management of the business
and affairs for the Company. The Board performs a set of specific functions aimed at meeting the
mission of the Company. Its main responsibility lies in planning, monitoring and controlling the
activities of the Company so as to ensure optimal utilisation of its resources and the achievement of
its corporate objectives. It ensures that policies and business decisions taken at the Board level are
implemented. The Board should also ensure that the policies and objectives of the Company reflect
the policies of the Government of The Republic of Trinidad and Tobago.
Members of the Board are required to familiarise themselves with the Company and its various
publics, in order to serve them effectively. It is the Board's responsibility to ensure the Company is
staffed by competent senior management personnel, set standards and review managerial perfor-
mance in the context of the Company's objectives.
Role of Internal Audit
Internal Audit is an independent, objective, assurance and consulting activity designed to add value
and improve the Company's operations. It helps the Company to achieve its objectives by bringing
in a systematic disciplined approach to evaluate and improve the effectiveness of control and gov-
Role of the Finance and Risk Committee
This Committee is appointed by the Board to act in an advisory capacity. The Committee's primary
duties and responsibilities are to formulate and to recommend policies and procedures to the Board
for approval; review on an ongoing basis policies and procedures in light of economic and business
conditions to ensure relevancy to the Company and where needed make recommendations for
The Company has exposure to the following risks from its use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
• Currency risk
• Interest risk
Management monitors exposure to credit risk on an on-going basis. The maximum exposure to
credit risk is represented by the carrying amount of the financial asset in the Statement of Financial
Position. The maximum exposure to credit risk at year end was:
Trade and other receivables
Cash and cash equivalents
The ageing of trade receivables at year end was:
1-30 days due
31-90 days due
Over 90 days due
Balance at September 30
Impairment losses of NIL were recorded with respect to trade receivables in 2014 (2013: NIL).
The Company manages its liquidity risk by maintaining cash to meet its cash obligations as they fall due.
The following are the contractual maturities of financial liabilities, including interest payments:
30 September 2014
30 September 2013
Market risk arises in the normal course of business and encompasses the risk to earnings that aris-
es from changes in foreign exchange rates, interest rates and equity prices.
Foreign currency risk
The Company does not incur significant foreign currency risk on purchases that are denominated
in a currency other than the Trinidad and Tobago dollar. The currency giving rise to any risk is
primarily the United States dollar.
The exchange rate of the United States dollar to the Trinidad and Tobago dollar at year end was
At 30 September 2014: TT$ 6.3733
At 30 September 2013: TT$ 6.4214
The Company considered currency risk to be insignificant and accordingly has not performed a
sensitivity analysis on the effect of a strengthening of the Trinidad and Tobago dollar against the
United States dollar at year end.
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in
market interest rates.
At year end, the interest rate profile of the Company's interest bearing instruments was:
Fixed rate instruments
Cash and cash equivalents
Estimation of Fair values
Fair value amounts represent estimates of the arm's length consideration that would be currently
agreed upon between knowledgeable and willing parties who are under no compulsion to act and
is best evidenced by a quoted market price if one exists. The estimated fair value of the Company's
financial instruments is based on the market prices and valuation methodologies.
28. Events after the reporting date
No significant events occurred after the reporting date of 17 March 2016 affecting the financial
performance, position or changes therein for the reporting period presented in these annual finan-
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