Home' Trinidad and Tobago Guardian : December 31st 2013 Contents A56
Guardian www.guardian.co.tt Tuesday, December 31, 2013
Unconsolidated Financial Statements for the year ended September 2013
First Citizens Holdings Limited
3 Financial Risk Management (continued)
3.2 Market risk (continued)
3.2.3 Other price risk
Other price risk arises due to the possibility that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market prices (other than those
arising from interest rate risk or currency risk), whether those changes are caused by
factors specific to the individual financial instrument or its issuer, or factors affecting all
similar financial instruments traded in the market. The Company has no exposure to other
3.3 Liquidity risk
The liquidity risk is the risk that the Company will be unable to generate or obtain sufficient cash
or its equivalent in a timely and cost-effective manner to meet its commitments when they fall due
under normal and stress circumstances and arises from fluctuation in cash flows.
The table below analyses financial assets and liabilities of the Company into relevant maturity
groupings based on the remaining period at balance sheet date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Asat30September2013 Upto 1to3
1 Month Months Months
--- 10,460,342 35,856,673 26,256,196 72,573,210
due to subsidiary
--- 10,460,342 35,856,673 26,256,196 81,986,072
--- (10,460,342) (35,856,673) (26,256,196) 1,079,351,682
As at 30 September 2012
--- 11,059,961 38,255,151 34,318,060 83,633,172
due to subsidiary
--- 11,059,961 38,255,151 34,318,060 85,853,898
--- (11,059,961) (38,255,151) (34,318,060) 6,047,365
3.4 Capital management
the face of the statement of financial position are:
provide returns for shareholders and benefits for other stakeholders; and
The ability of the Company to service its liabilities is dependent on guarantees by the Government
of Trinidad and Tobago. The Government of Trinidad and Tobago has agreed to guarantee the loan
notes and bonds issued by the Company. The Government has made capital contributions during
the year in the amount of $11,059,961 (note 9) and will continue to lend support to the company
as per the agreement.
Tier 1 (Core) Capital
Total Regulatory Capital
Risk adjusted assets
Qualifying capital to risk adjusted assets
Core capital to qualifying capital
3.5 Fair value of financial assets and liabilities
The following table summarises the carrying amounts and fair values of those financial assets and
liabilities presented on the Company's statement of financial position at amortised cost.
Cash and cash equivalents 34,679,041 33,901,263 34,679,041 33,901,263
58,000,000 58,000,000 58,000,000 58,000,000
46,926,742 52,140,824 67,326,199 74,360,198
The fair values of the Company's financial instruments are determined in accordance with
International Accounting Standard (IAS) 39 "Financial instruments: Recognition and Measurement".
Financial instruments where carrying value is equal to fair value
Due to their liquidity and short-term maturity, the carrying values of certain financial instruments
approximate their fair values. Financial instruments where carrying value is equal to fair value
The fair value of the note is considered to be equal to its carrying value as there is no specified
The fair value of the note payable is computed using discounted cash flow analysis.
4 Cash And Cash Equivalent
Money market fund
Cash at bank
The average effective interest rate on cash and cash equivalents is 1.37% (2012: 1.77%).
These deposits have an average maturity of 30 days (2012: 30 days).
5 Note Receivable
The note receivable is due from the subsidiary, First Citizens Bank Limited, and is non interest bearing,
with no specified maturity date. This note is part consideration for the note payable to the subsidiary
6 Investment In Subsidiary
Ordinary shares at cost
Preference shares at cost
This investment represents 77.2% (2012: 96%) of the ordinary share capital and 79.4% of the "B"
class preference shares of First Citizens Bank Limited, which is incorporated in Trinidad and Tobago and
operates as a bank. During the year the company disposed of 48,495,665 shares at an average cost of
$2.1763 through an initial public offering (IPO) on the Trinidad and Tobago Stock Exchange (T&TSE).
7 Due From Subsidiary
The balance due from subsidiary represents proceeds from the sale of shares in the initial public offering
of First Citizens Bank Limited net of specific expenses due and payable to the subsidiary also related to
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS (continued)
(expressed in Trinidad and Tobago dollars)
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