Notes to Consolidated Financial Statements - Barbados Investment ...

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Notes to Consolidated Financial Statements March 31, 2009 (Expressed in Barbados dollars) 26. Financial risk management Financial assets of the Corporation include cash and cash equivalents, accounts receivables, investments and staff loans. Financial liabilities include accounts payable and accrued liabilities and long-term debt. Overview The Corporation has exposure to the following risks from its use of financial instruments: • credit risk • liquidity risk • market risk This note presents information about the Corporation’s exposure to each of the above risks, the Corporation’s objectives, policies and processes for measuring and managing risk, and the Corporation’s management of capital. Further quantitative disclosures are included throughout these financial statements. The Board of Directors has overall responsibility for the establishment and oversight of the Corporation’s risk management framework. The Corporation’s risk management policies are established to identify and analyse the risks faced by the Corporation, set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporation’s activities. The Corporation, through its training and management standards and procedures, aims to develop a disciplined and structured environment in which all employees understand their roles and obligations. Credit risk Credit risk is the risk of financial loss to the Corporation if a member or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation’s receivables from customers. Credit risk on cash is limited as cash is comprised of current account balances held with reputable banks and cash floats held for cashiers. Trade and other receivables The Corporation’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Corporation’s revenue is generated from the rental of leasehold properties and from government subvention. The aging of tenants’ rent receivables as at the reporting date was as follows: 2009 2008 $ $ Current 11,075 14,811 1 – 180 days 1,770,040 1,109,139 181 – 360 days 602,180 798,724 > 360 days 4,621,470 4,512,209 7,004,765 6,434,883 The allowance for doubtful debts in respect of tenants’ rent receivables during the year was $6,281,120 (2008 – $5,914,673). 46 BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION ANNUAL REPORT 2009
Notes to Consolidated Financial Statements March 31, 2009 (Expressed in Barbados dollars) 26. Financial risk management; continued Liquidity risk Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The Corporation’s approach to managing liquidity is to ensure, as far as possible, that it has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Corporation’s reputation. The liquidity position is monitored daily; management seeks to maintain levels of cash deposits which are sufficient to meet reasonable expectation of its short term obligations. March 31, 2009 Carrying Contractual Up to 1 1 to 5 Over Amount Cash Flows Year Years 5 Years $ $ $ $ $ Long term debt 59,788,849 70,211,491 4,529,509 14,518,237 51,163,745 Accounts payable and accrued liabilities 7,570,195 7,570,195 7,570,195 - - March 31, 2008 Carrying Contractual Up to 1 1 to 5 Over Amount Cash Flows Year Years 5 Years $ $ $ $ $ Long term debt 63,052,284 75,123,701 4,912,211 17,174,746 53,036,744 Accounts payable and accrued liabilities 6,710,125 6,710,125 6,710,125 - - BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION ANNUAL REPORT 2009 47
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Page 4 and 5: Mission To be a dynamic Business De
Page 6 and 7: Board Of Directors Members of the B
Page 8 and 9: Chairman’s Report The Year in Rev
Page 10 and 11: Operating Environment Global Indust
Page 12 and 13: FIGURE 1 DISTRIBUTION OF INVESTMENT
Page 14 and 15: 2. The development of a viable, hig
Page 16 and 17: partnership was developed with the
Page 18 and 19: assistance aimed at overall export
Page 20 and 21: Table lV DOMESTIC EXPORTS TO CARICO
Page 22 and 23: appraisals were completed. Emphasis
Page 24 and 25: 2008/09 IN PICTURES The BIDC’s bo
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Page 28 and 29: Auditors’ Report To the Board of
Page 30 and 31: Consolidated Statement of Changes i
Page 32 and 33: Consolidated Statement of Cash Flow
Page 34 and 35: Notes to Consolidated Financial Sta
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