Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698835628565.pdf (Trinidad and Tobago)
Trinidad & Tobago Free Zones Company Limited Financial Statements For the Year Ended 31 December 2011 Trinidad & Tobago Free Zones Company Limited Contents Auditors’ report Statement of financial position Statement of comprehensive income Statement of changes in shareholders’ equity Statement of cash flows Accounting policies Notes to the financial statements Page - 8 9 - 12 Independent Auditors' Report To the shareholders of Trinidad & Tobago Free Zones Company Limited Report on the financial statements We have audited the accompanying financial statements of Trinidad & Tobago Free Zones Company Limited as at 31 December 2011, which comprise the statement of financial position, the statements of comprehensive income, changes in equity and cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes.
Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards for Small and Medium sized Entities.
This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing.

Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion the accompanying financial statements present fairly, in all material respects the financial position of Trinidad & Tobago Free Zones Company Limited as at 31 December 2011, of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium sized Entities.
Chartered Accountants Port of Spain Trinidad, West Indies 14 May 2012 (1) Trinidad & Tobago Free Zones Company Limited Statement of financial position ASSETS Non-current assets Plant and equipment Current assets Receivables and prepayments Cash and cash equivalents Total assets EQUITY AND LIABILITIES Capital and reserves Share capital Retained earnings Total shareholders’ equity Current liabilities Accrued liabilities Total equity and liabilities Notes 31 December 2011 $ 2010 $ 2 3 4 5 60,448 121,428 185,876 11,252,320 125,327 11,279,168 11,438,196 11,404,495 11,498,644 11,525,923 2 11,417,627 2 11,355,903 11,417,629 11,355,905 81,015 170,018 11,498,644 11,525,923 The accounting policies on pages 6 to 8 and the notes on pages 9 to 11 are an integral part of these financial statements.
On 14 May 2012, the Board of Directors of Trinidad & Tobago Free Zones Company Limited authorised these financial statements for issue.
______________________ Director ______________________ Director (2) Trinidad & Tobago Free Zones Company Limited Statement of comprehensive income Revenue Other income Administrative expenses Operating profit Net finance income Net profit Note 6 6 7 8 Year Ended 31 December 2011 $ 2010 $ 2,825,811 2,734,935 8,282 -- 2,834,093 2,734,935 (2,272,722) (1,622,782) 561,371 1,112,153 200,353 247,231 761,724 1,359,384 The accounting policies on pages 6 to 8 and the notes on pages 9 to 11 are an integral part of these financial statements.
(3) Trinidad & Tobago Free Zones Company Limited Statement of changes in shareholders’ equity Share Capital $ Retained Earnings $ Total Equity $ 2 -- -- -- 2 2 -- -- 2 11,396,519 11,396,521 (700,000) (700,000) (700,000) (700,000) 1,359,384 1,359,384 11,355,903 11,355,905 11,355,903 11,355,905 (700,000) 761,724 (700,000) 761,724 11,417,627 11,417,629 Year ended 31 December Balance at 1 January 2010 Dividend paid 2009 Dividend paid 2010 Net profit for 2010 Balance at 31 December 2010 Year ended 31 December Balance at 1 January 2011 Dividend paid 2010 Net profit for 2011 Balance at 31 December 2011 The accounting policies on pages 6 to 8 and the notes on pages 9 to 11 are an integral part of these financial statements.
(4) Trinidad & Tobago Free Zones Company Limited Statement of cash flows Operating activities Operating profit Adjustments for items not requiring an outlay of funds: Depreciation Loss on sale of asset Year Ended 31 December 2011 $ 2010 $ 561,371 1,112,153 28,297 40,976 6,374 -- Operating profit before working capital changes 596,042 1,153,129 (Increase)/decrease in receivables and prepayments (Decrease)/increase in accrued liabilities (60,549) (89,003) 78,474 10,252 Net cash flows generated from operating activities 446,490 1,241,855 Investing activities Purchase of fixed assets Proceeds from disposal of fixed assets Interest received Interest paid (40,996) 67,305 -- (2,888) 200,882 (529) 247,667 (436) Net cash flows generated from investing activities 226,662 244,343 Financing activities Dividends paid Net cash flows used in financing activities (700,000) (1,400,000) (700,000) (1,400,000) (Decrease)/increase in cash and cash equivalents (26,848) 86,198 Cash and cash equivalents at beginning of year 11,279,168 11,192,970 Cash and cash equivalents at end of year (note 4) 11,252,320 11,279,168 The accounting policies on pages 6 to 8 and the notes on pages 9 to 11 are an integral part of these financial statements.
(5) Trinidad & Tobago Free Zones Company Limited Accounting policies 31 December 2011 The principal accounting policies applied 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 below.

a Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards for Small and Medium sized Entities and under the historical cost convention.
The preparation of financial statements in conformity with International Financial Reporting Standards for Small and Medium sized Entities requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses 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.
b Plant and equipment Plant and equipment are stated at historical cost and are depreciated on the reducing balance basis, at rates estimated to write off the cost of each asset to their residual values over their estimated useful lives as follows: Office furniture, fittings and equipment Motor vehicles - - 20-33 1/2% 25% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.
Profits or losses on disposals of plant and equipment are determined by comparing proceeds with the carrying amount and are included in the statement of comprehensive income.

Plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use.

c Leases Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

d Revenue recognition Revenue comprises the invoiced value for services rendered in the year and is recognized on the performance of the services.

Interest income is recognized on an effective yield basis.
(6) Trinidad & Tobago Free Zones Company Limited Accounting policies (continued) 31 December 2011 e Foreign currency translation i) Functional and presentational currency Items included in the company’s financial statements are measured using the currency of the primary economic environment in which the company operates (“the functional currency”).

The financial statements are presented in Trinidad and Tobago dollars (“TT$”), which is the company’s functional and presentation currency.
ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive income.
Translation differences on debt securities and other monetary financial assets measured at fair value are included in foreign exchange gains and losses.

Translation differences on non-monetary items such as equities held for trading are reported as part of the fair value gain or loss.

Translation differences on available-for-sale equities are included in the fair value reserve in equity.
f Financial instruments Financial instruments carried on the statement of financial position include cash and cash equivalents accounts receivable and accounts payable and are stated at their approximate fair values determined in accordance with the policy statements disclosed.
g Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost and comprise cash in hand, cash at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and funds held in Money Market Funds.

Bank overdrafts are included within borrowings in current liabilities on the Statement of Financial Position.
For the purposes of the statement of cash flows, cash and cash equivalent also include the bank overdrafts.

h Trade receivables Trade receivables are carried at original invoice amount less provision made for impairment of these receivables.

A provision for impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
The amount of the provision is the difference between the assets’ carrying amount and the recoverable amount.

Provisions for impairment of receivables are included in the statement of comprehensive income.

(7) Trinidad & Tobago Free Zones Company Limited Accounting policies (continued) 31 December 2011 i Pensions The company makes contributions on behalf of its employees to a defined contribution pension plan with Guardian Life of the Caribbean Limited.
A defined contribution plan is a pension plan, into which the company pays fixed contributions into a separate fund.

Once the contributions have been paid, the company has no further payment obligations.

The regular contributions constitute net periodic costs for the year in which they are due and as such are included in staff costs.

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Provisions Provisions are recorded when the Company has a present legal or constructive obligation as a result of past events, and 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.

(8) Trinidad & Tobago Free Zones Company Limited Notes to the financial statements 31 December 2011 1 Incorporation and business activities The company is incorporated and domiciled in the Republic of Trinidad and Tobago.
The company is fully owned by the Government of Trinidad and Tobago.

Its principal activity is to administer, control, operate and manage all free zones in accordance with the provisions of the Trinidad and Tobago Free Zones Act No 19 of 1988.

The address of the company’s registered office is Albion Court, 2nd Floor West, 61 Dundonald Street, Port of Spain, Trinidad and Tobago.
2 Plant and equipment Year ended 31 December 2010 Furniture, fittings and equipment $ Motor vehicles $ Total $ Opening net book amount 134,498 159,516 Additions 2,888 -- 2,888 (40,976) Depreciation charge (33,625) (7,351) 25,018 Closing net book amount At 31 December 2010 Cost Accumulated depreciation Net book amount Year ended 31 December 2011 20,555 100,873 121,428 224,595 (204,040) 355,415 (254,542) 580,010 (458,582) 20,555 100,873 121,428 Opening net book amount 20,555 100,873 121,428 Additions 40,996 -- 40,996 Disposals Depreciation on disposal Depreciation charge Closing net book amount At 31 December 2011 Cost Accumulated depreciation Net book amount (114,206) (255,000) (369,206) 107,782 187,745 295,527 (9,821) (18,476) (28,297) 45,306 15,142 60,448 151,385 (106,079) 100,415 251,800 (85,273) (191,352) 45,306 15,142 60,448 (9) Trinidad & Tobago Free Zones Company Limited Notes to the financial statements (continued) 31 December 2011 3 Receivables and prepayments Trade receivables Interest receivable Prepayments 2011 $ 162,667 8,689 14,520 2010 $ 90,949 19,858 14,520 185,876 125,327 As at 31 December 2011, trade receivables of $162,667 were current (2010: $90,949).
Trade receivables are non interest bearing and are due upon receipt or on 30 day terms.

4 Cash and cash equivalents Money Market Funds Cash at bank Cash in hand At end of year 2011 $ 2010 $ 5,846,210 5,404,110 2,000 11,134,358 142,810 2,000 11,252,320 11,279,168 The Money Market Funds have been classified as a cash equivalent because management uses the account for working capital requirements.

The interest rate at the year-end was 1.30%.
5 Share capital 2011 $ 2010 $ Authorised: An unlimited number of shares of no par value Issued and fully paid: 2 ordinary shares of no par value 6 Revenue License fees Interest income (Note 8) Foreign exchange gain 2 2 2,825,811 200,882 8,282 2,734,935 247,667 -- 3,034,975 2,982,602 (10) Trinidad & Tobago Free Zones Company Limited Notes to the financial statements (continued) 31 December 2011 7 Operating profit The company’s operating profit includes the following administrative costs and expenses: Staff costs (note 9) Directors’ fees Operating lease rental for property (note 10) Professional fees Office administration Advertising and promotions Travelling Repairs & maintenance Motor vehicles Entertainment Business development Depreciation (note 2) Subscriptions Insurance Loss on disposal of asset Miscellaneous 8 Net finance income Interest income Bank charges 9 Staff costs Wages and salaries Social security costs Pension costs 10 Lease commitment 2011 $ 850,705 489,600 277,537 134,337 105,911 92,205 87,308 59,822 33,758 33,011 32,596 28,297 20,453 16,901 6,374 3,907 2010 $ 736,445 326,400 265,512 26,013 71,900 25,019 1,344 24,473 28,946 24,293 13,763 40,976 20,632 14,736 -- 2,330 2,272,722 1,622,782 200,882 (529) 247,667 (436) 200,353 247,231 831,421 13,212 6,072 718,366 12,007 6,072 850,705 736,445 A new lease agreement was signed with Trinidad and Tobago Mortgage Finance Company Limited for the three year period 1 January 2011 to 31 December 2014.
Monthly rentals of $22,126 were payable for the period 1 January 2011 to 31 July 2011 towards rent, electricity, service charges and VAT and increased by $2,405 plus VAT for the remainder of the lease period.
Property rental 2011 $ 277,537 2010 $ 265,512 (11) Trinidad & Tobago Free Zones Company Limited Notes to the financial statements (continued) 31 December 2011 11 Taxation The company is exempt from corporation tax or levies in respect of sales and profits, by virtue of Section 33 of the Free Zones Act.

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