Home' Trinidad and Tobago Guardian : June 29th 2017 Contents 25. Impairment
An impairment review was undertaken by a marine consultant after the current fiscal year on the
Company's Water Taxi vessels currently in use. Subject to this review the vessels were found to be
impaired in the amount of $78,466,425 ($289,409,930 cost less $210,943,505 accumulated depreciation)
and the value of the asset was reduced accordingly.
26. Financial instruments
September 2015 and 2014 are disclosed hereunder.
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
27. Capital management
The Company has no formal policy with regards to capital management, as the Company is currently
28. 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
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.
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 performance 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 governance
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 of policies and procedures in light of economic and business
conditions to ensure relevancy to the Company and where needed make recommendations for Board
• 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
Trade and other receivables
Cash and cash equivalents
1-30 days due
31-90 days due
Over 90 days due
Balance at September 30
The Company manages its liquidity risk by maintaining cash to meet its cash obligations as they
30 September 2015
30 September 2014
Market risk arises in the normal course of business and encompasses the risk to earnings that arises from
changes in foreign exchange rates, interest rates and equity prices.
Foreign currency risk
currency other than the Trinidad and Tobago dollar. The currency giving rise to any risk is primarily the
United States dollar.
Interest rate risk
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
instruments is based on the market prices and valuation methodologies.
29. Events after the reporting date
No significant events occurred after the reporting date of 30 September 2016 affecting the financial
When assessing the going concern assumption, management takes into account all available information
escalation of the company's debt to contractors and suppliers as liquidity deteriorated on account of the
decline in management fees.
In June 2016 NIDCO entered into an arrangement with RBC (Merchant) Limited with respect to a 15 year
Fixed Rate Bond. This bond is fully guaranteed by the Government as are all other loans obtained by the
company and, all of the company's loans are fully serviced to date.
Notwithstanding the losses sustained in the last two years, the Government has given its undertaking to
the company's situation.
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