Notes to Consolidated Financial Statements - Barbados Investment ...

Contents 

MISSION & VISION 4 

LETTER OF TRANSMITTAL 5 

BOARD OF DIRECTORS 6 

EXECUTIVE MANAGEMENT 8 

CHAIRMAN’S REPORT 9 

OPERATING ENVIRONMENT 11 

REPORT ON OPERATIONS 15 

• RESEARCH AND DEVELOPMENT 15 

• SUSTAINING AND CREATING JOBS 17 

• ENTREPRENEURIAL DEVELOPMENT 18 

• CRAFT DEVELOPMENT 18 

• EXPORT PROMOTION AND DEVELOPMENT 19 

• TECHNICAL ASSISTANCE 23 

• PROPERTY MANAGEMENT 23 

• RENT COLLECTION 23 

• STRATEGIC PARTNERSHIPS 24 

• HUMAN RESOURCE DEVELOPMENT 25 

AUDITORS’ REPORT 27 

STATEMENT OF FINANCIAL POSITION 28 

STATEMENT OF CHANGES IN EQUITY 29 

STATEMENT OF COMPREHENSIVE INCOME 30 

STATEMENT OF CASH FLOWS 31 

NOTES TO FINANCIAL STATEMENTS 32 

BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION 

ANNUAL REPORT 2010 3

Mission 

To promote the sustainable 

development of the Manufacturing, 

Industrial and Small Business Sectors, 

the export of goods and its related 

activities. 

Vision 

To be a dynamic, research led, 

trade and business development 

institution, fostering innovation, 

the leveraging of technology and 

providing technical assistance. 

4 


ANNUAL REPORT 2010

LETTER OF TRANSMITTAL 

Barbados Investment and Development Corporation 

P.O. Box 1250 

“Pelican House” 

Princess Alice Highway 

BRIDGETOWN BB11000 

28th July, 2010 

The Honourable Dr. David Estwick, M.P. 

Minister of Economic Affairs, Empowerment, Innovation, Trade, Industry and Commerce 

MINISTRY OF ECONOMIC AFFAIRS, EMPOWERMENT, INNOVATION 

TRADE, INDUSTRY AND COMMERCE 

Reef Road 

Fontabelle 

St. Michael 

Dear Minister: 

In pursuance of Section 18(1) of the Barbados Investment and Development Corporation Act, 1992, I have the honour 

to submit the Report and Statement of Accounts for the period 1st April, 2009 to 31st March, 2010. 

Yours faithfully 

……………………………………………… 

Dr. Don Marshall 

(Chairman) 



BOARD OF DIRECTORS 

(January 2009-November 2009) 

Mr. DeVere Browne, B.A., Dip. A - Chairman 

Mr. Villeneuve Greaves, B.A.,Gen. (Econ.) - Deputy Chairman 

Mrs. Veronica P. Griffith, B.Sc. - Representative, Barbados Workers Union 

Mr. Ian Pickup, B.Sc. - Representative, Barbados Manufacturers Association (BMA) 

Mrs. Muriel Robertson, ADID, BED 

Mr. Kevin Boyce, LL.B, LEC 

Mr. Henderson Holmes, B.Sc. 

Mr. David Stoute. B.Sc. 

Mr. Lewis Kirton, J.P 

(November 2009-Present) 

Dr. Don Marshall, Ph.D - Chairman 

Mr. Villeneuve Greaves, B.A.,Gen. (Econ.)- Deputy Chairman 

Mrs. Veronica P. Griffith, B.Sc. – Representative, Barbados Workers Union 

Mr. Ian Pickup, B.Sc. - Representative, Barbados Manufacturers Association (BMA) 

Mrs. Muriel Robertson, ADID, BED 

Mr. Kevin Boyce, LL.B, LEC 

Mr. Henderson Holmes, B.Sc. 

Mr. David Stoute, B.Sc. 

Mr. Lewis Kirton, J.P 

(Seated from left) Mr. Lewis Kirton, Chairman Dr. Don 

Marshall, Deputy Chairman, Mr. Villeneuve Greaves, 

(Standing from left) CEO Wilbur “Basil” Lavine, Mr. Kevin 

Boyce, Legal Officer/Secretary to the Board, Mrs. Monica 

Mason-Crichlow, Mrs. Veronica Griffith, Mr. David Stoute, 

Ms. Muriel Robertson, Mr. Ian Pickup, Mr. Henderson 

Holmes. 

6 


ANNUAL REPORT 2010



EXECUTIVE MANAGEMENT 

Mr. Wilbur T. Lavine, B.Sc., M.Sc. 

- Chief Executive Officer (Ag.) (with effect from October 1, 2008) 

- Chief Executive Officer (with effect from February 17, 2010) 

Ms. Cora D. Clarke, B.Sc. 

- Director, Export Promotion & Development Division 

Mrs. Sonja S. Trotman, B.Sc., A.C.I.S., LL.M 

- Manager, Research & Information Services Division 

- Director (Ag.), Research & Information Services Division 

(with effect from October 1, 2008) 

Mr. James Campbell, DPA (Hons.), C.M.A., A.C.I.S., F.C.A., M.B.A (Dist.) 

- Director, Entrepreneurial Development Division 

Ms. Diana C. Brooks, C.M.A, F.C.A., A.C.I.S. 

- Director, Administration 

Mrs. Michelle Moore, B.Sc. (Hons.), M.B.A 

- Chief Accountant (Ag.), Administration 

Ms. Fern Gooding B.Sc. 

- Senior Research Officer, Research & Information Services Division 

- Manager (Ag.), Research & Information Services Division 

(with effect from October 1, 2008) 

Mr. Henderson R. G. Clarke, B.A., J.P 

- Manager, Export Promotion & Development Division 

Mr. David H. Parris, B.Sc., M.Sc. 

- Manager, Human Resources Department 

Mr. Michael L. Piggott, B.A., ANSCAD, Alns. Pkg 

- Manager, Design Department 

Mr. Neville Rice, B.Sc., M.Sc. 

- Manager, Property and Estates Department 

Mrs. Monica Mason-Crichlow, LL.B, LEC 

- Legal Officer 

- Secretary to the Board 

8 


ANNUAL REPORT 2010

CHAIRMAN’S REPORT 

THE YEAR IN REVIEW 

As the global economic crisis continued, the Barbados Investment and 

Development Corporation (BIDC) commenced its fiscal year April 

1, 2009 - March 31, 2010 by putting in place a short-term stabilisation 

agenda aimed at safeguarding potentially viable entrepreneurs who were 

deemed to be at risk. 

The programme was focused primarily on securing job opportunities and 

consolidating output and export levels. It was intended also to promote 

re-tooling and innovation in local industries and to better equip companies 

to thrive as the economy recovers. More specifically, the Corporation 

sought to implement initiatives to encourage cost reduction and increase 

competitiveness; maintain and where possible increase export sales; 

identify new product niches; maintain local market share and sustain 

employment levels. 

Attention was also given to enhancing marketing efforts for export 

companies. With their major markets in the US and the UK characterised 

by reduced consumer spending, increased unemployment, increasing 

financial pressures and an uncertain economic climate, this group was 

particularly vulnerable. All these factors impacted negatively on export 

sales. In spite of the circumstances, the Corporation was able to achieve 

some success, recording significant growth in export sales of Barbadian 

specialty foods and beverages, under its market development programme. 

Increased sales of local specialty foods and beverages were registered in 

the UK, US and Canada, where the captive market is being rebuilt. 

This is an outstanding achievement when one considers that overall, 

the value of non-sugar, non-petroleum exports for the period April 

2009-March 2010 decreased by 11% to BDS$ 383.1 million. With the 

exception of Canada, exports to all other major trading partners declined 

during the review period. Shipments to CARICOM− Barbados’ major 

export market, fell by over 22% to BDS $213.1 million. 

The BIDC’s export promotion efforts were bolstered by a new initiative 

which saw the redeployment of the Design Department to the Research 

Division. This consolidation of research and design expertise allowed for 

enhanced concentration on new product development and innovation. 

Institutional strengthening initiatives such as the Technical Assistance, Basic 

Industries and Incubator programmes were sustained. The Corporation 

also explored new ways to broaden the exposure of craft persons and 

to increase their revenue earning potential in both the local consumer 


Chairman 

and tourist market segments. The Corporation’s Innovation Support 

initiative was also further enhanced and is currently providing assistance 

to twenty-seven (27) businesses. Through the Special Technical Assistance 

Programme (STAP), the BIDC also sought to make companies more 

cost competitive and continued with operational diagnostics and other 

reviews to assist companies in increasing productivity, reducing energy 

consumption, and upgrading equipment. 

The extent of our efforts was however limited by a reduction in 

Government’s annual subvention to the Corporation. But recognising that 

economic uncertainties may continue for some time yet and will likely 

result in a scarcity of resources available from the public purse, the BIDC 

sought to explore independent means of financing its future operations. 

A committee was established to examine the formulation of self-financing 

policy initiatives and it is envisioned that these will be actioned in the new 

fiscal year. 

NEW BUSINESS MODEL 

The stabilization programme was one aspect of a new business model 

which the Corporation endeavoured to implement during the year. The 

new model reflects a two-dimensional management thrust; one aimed at 

managing the existing environment - thus the stabilization programme, 

and one aimed at managing for the future. This saw increasing emphasis 

being placed on entrepreneurial and micro business development, export 

promotion and growth. At the same time, much weight was given to 

nurturing a culture of innovation by encouraging Barbadian businesses 



to better identify areas of commercial opportunity, utilise technological 

advancements and develop their capabilities to build enterprises of the 

future. 

NEW ENGINES OF GROWTH 

In looking to the future, the Corporation took note of historical trends 

which proved small businesses to be the fuel to propel economies 

out of recessions and in acknowledging this trend, the BIDC initiated a 

programme of small business empowerment to strengthen the local small 

business sector and to put Barbadian entrepreneurs on a better footing. 

This programme was facilitated mainly with increased assistance to the 

micro business sector aimed at achieving the implementation of improved 

management and operating systems; improved capacity building; new 

sector development and the embracing of an innovative culture. 

In line with Government’s commitment to transforming Barbados into a 

green economy and as part of the new sector development thrust, the 

area of renewable energy technologies also engaged much of our attention 

in the past year, culminating with the Entrepreneurship, Innovation and 

Renewable Energy Symposium at the Lloyd Erskine Sandiford Centre 

in March. A full day conference targeted at 200 business professionals 

and students, the event brought together members of academia, 

environmental experts and industry partners. The Hon. Dr. David Estwick, 

Minister of Economic Affairs, Empowerment, Innovation, Trade Industry 

and Commerce, declared the meeting officially open and shared his vision 

for entrepreneurship and renewable energy development in Barbados. 

Increased utilisation of renewable technologies offers much potential for 

economic as well as environmental benefit. But more specifically, it may 

at the same time further enhance the manufacturing sector’s capacity to 

increase productivity and reduce costs. This is an area we envisage as the 

new engine of national economic growth. It is in fact our aim to encourage 

the development of export-focused green products and technologies as a 

means of boosting foreign exchange earnings and attracting investments 

intended to achieve greater energy efficiency. It is expected that these 

industries will take on greater significance in our portfolio for 2010 and 

beyond. 

challenges of penetrating contracting markets. Our export thrust will 

therefore require greater impetus, innovation and sustained efforts. 

Company closures and job losses at home could possibly see increased 

demand for technical assistance from micro and small enterprises as a 

greater interest in self employment is anticipated. 

The BIDC will continue to promote the stabilization of the sectors it serves 

over the short to medium term. Thereafter, over the medium term, we will 

seek to aid in the transformation of the industrial sector by repositioning 

companies to take advantage of post-recession opportunities. Our aim 

is to promote greater self-enterprise and innovation amongst clients and 

to see our local producers transcend traditional industry boundaries. We 

will endeavour to accelerate local economic recovery by igniting new 

engines of growth with the application of science and technology across 

all sectors as well as increased investment in research and development. 

It has become increasingly evident that diversification and new sector and 

product development are essential if Barbados is indeed to take advantage 

of new and emerging opportunities. The Corporation is committed to this 

task and will be facilitating the empowerment of SME’s and the nurturing 

of an innovative culture within the local productive sectors by building the 

best framework of support. 

………………………… 


Chairman 

FUTURE PROSPECTS AND DIRECTION 

The global economic downturn continues to be challenging for local 

businesses. Manufacturing and related services companies will continue to 

feel the impact of contracting markets and exporters will face increasing 

10 


ANNUAL REPORT 2010

OPERATING ENVIRONMENT 

GLOBAL INDUSTRY 

The global manufacturing sector ended 2009 on a positive footing. In 

the latter months of the year, rates of expansion improved for both new 

orders and production. Growth of new work received was the fastest in 

over five-and-a-half years, while the pace of increase in output reached a 

new high. 

Broadly speaking, growth of both production and new orders was led by 

the US and emerging Asian manufacturing sectors. Growth of new orders 

hit a five-year high in the US and in the emerging Asian markets, the 

performances of China, India and Taiwan were especially robust. France 

and Brazil also recorded marked rates of expansion in output. There were 

signs that conditions were strengthening in the Japanese manufacturing 

sector, with rates of increase improving for both new work and production. 

In the UK, output and new orders rose at the quickest rates in two years. 

Growth of production in the euro area however lagged behind the global 

trend, despite hitting a 27-month high in December. There also remained 

marked disparities between the performances of the big-4 Eurozone 

economies. While the recoveries in Germany, France and Italy continued, 

there were signs that the Spanish manufacturing sector remained firmly 

in recession territory. 

In line with the positive manufacturing performance, data also pointed to a 

rebound in international trade volumes, with growth of new export orders 

the fastest in almost two years. The Global Manufacturing Employment 

Index also signaled a slight increase in staffing levels for the first time 

since March 2008. The rise in worldwide manufacturing employment was 

mainly focused on the emerging markets (particularly China, Taiwan and 

South Korea) and the US. Staffing levels fell in all of the West-European 

nations surveyed. The Global Manufacturing Input Prices Index however 

rose sharply to a 15-month high at the end of the year, mainly as a result 

of higher commodity prices. Part of the increase in costs also reflected 

supply-side pressures, as highlighted by the most noticeable deterioration 

in average vendor performance since August 2006. 1 

Thanks to sound macroeconomic fundamentals in place before the onset 

of the crisis, the Latin America and Caribbean region were able to weather 

the global financial crisis much better than previous external shocks. 

Nevertheless, economic activity in the region decelerated sharply in the 

aftermath of the crisis. For the 2009 calendar year, GDP is estimated to 

have fallen 2.6%, following an expansion of 3.9% in 2008 2 . The Caribbean 

economies however contracted only 0.1% in 2009, down from the 3.6% 

growth recorded in 2008. Many of the economies remained in recession, 

awaiting recovery of the US and other industrial economies which supply 

the region’s tourists, remittances and foreign direct investment and which 

absorb Caribbean exports. 

As was expected, the performance of the Barbadian economy in 2009 

fell below that in 2008, by most indicators. The impact of the economic 

and financial crisis in industrialised countries showed up in a contraction 

of real output, a reduction of foreign exchange inflows and an increase in 

unemployment. Merchandise exports, as well as receipts from goods and 

services, continued to be negatively affected by the tapering off of global 

aggregate demand and the falloff in commodity prices over the period. 

The decline in the output of goods (13.9%) was even more severe than 

for services (10.2%). Exports of domestically produced goods had shown 

robust growth (averaging 10.3%) during the five years (2004-2008) prior 

to the global financial crisis. Beginning in the last quarter of 2008, and 

continuing throughout 2009, there were noticeable declines across the 

entire spectrum of domestic exports as consumer demand waned. 3 

The Caribbean Development Bank (CDB) in its assessment of 2009 

reported the manufacturing sector was adversely affected directly by 

the reduction in global import demand as well as the tight financing 

conditions that prevailed and indirectly by the decline in tourist arrivals and 

construction. That led to reduced demand for food, beverages, furniture, 

construction materials and other manufactured goods. 

The CDB warned that recovery in the region is expected to lag behind 

that of the major world economies by several quarters. The recovery of 

regional economies is not likely to take hold before 2011. 

INTERNATIONAL TRADE 

As the global recovery gained momentum, trade also rebounded and 

global merchandise exports accelerated sharply in the latter months of 

2009. The World Bank reported that global goods exports in value terms 

advanced at a 47% annualized pace by the end of 2009. Developing 

countries reported growth at 65%, while high income countries’ exports 

gained 39% in December. 

By the end of the first quarter of 2010 however, this brisk pace had slowed. 

According to the Bank’s assessment, exports from developing countries 

1 

JP Morgan, Global Manufacturing Index PMI, www.reuters.com 

2 

http://web.worldbank.org 

3 

Central Bank of Barbados Review of the Economy 2009 



eased to 32%, and shipments from high-income countries dropped to 

16% during that first quarter. In volume terms, global exports grew at an 

annualized pace of 20% during the first quarter of 2010, with developing 

countries posting annualized gains of 26% and high income economies 

17%. In contrast with other high-income countries, Japanese exports 

accelerated in the first two months of 2010, growing at an annualized 

pace of 56% in January, indicative of continued strong demand in the East 

Asia and Pacific region. 

As is the case with output and industrial production growth, the Bank 

noted that export growth became more differentiated among the 

various developing regions in 2009. In developing Europe, annualized 

growth reached 65% in the early phase of the recovery, but has since 

subsided. Exports from South Asia, Latin America, East Asia and the Pacific 

remained strong. Strong import demand from developing countries was 

responsible for the majority of the acceleration in global import volumes, 

which increased to an annualized pace of 25% in January. Countries in 

Latin America and the Caribbean entered a strong cyclical rebound during 

the second half of 2009, benefitting from a robust rebound in external 

demand, renewed capital inflows, higher commodity prices, the turn in 

the inventory cycle, and a boost to domestic demand from substantial 

monetary and fiscal stimulus. Despite the sharp bounce back in growth 

rates, industrial production in the region remained nearly 4% below its 

pre-crisis peak level. Compared with the level of activity that would have 

been expected had the crisis not intervened there was even more slack, 

with a 10% or more in output gap. The output gap was also reflected in 

labor markets. At its trough, unemployment in the region had increased 

by 2 million, but has since declined by 1 million. GDP in the region, after 

contracting by 2.3% in 2009, is projected to expand by 4.5, 4.1 and 4.2 % 

over 2010 - 2012, slightly below the average 5% recorded in the boom 

period. 4 

GLOBAL INVESTMENT 

After experiencing a severe fall in 2008, FDI flows to developed countries 

continued their dramatic decline in 2009 (by a further 41%), as the 

impact of the global financial and economic crisis continued to unfold. 

Global inflows of foreign direct investment (FDI) fell by 39% from US$1.7 

trillion in 2008 to a little over US$1.0 trillion in 2009, based on UNCTAD 

estimates. The decline in FDI was widespread across all major groups of 

economies. 

All components of FDI – equity capital, reinvested earnings and other 

capital flows (mainly intra-company loans) – were affected by the 

downturn. However, the decrease was especially marked for equity capital 

flows, which are most directly related to Trans National Corporations’ 

(TNCs) longer-term investments strategies. Regarding the mode of entry, 

cross-border mergers and acquisitions (M&As) were the most affected, 

with a 66% decrease in 2009 as compared to 2008. The number of 

international greenfield projects also declined markedly, though to a much 

lesser degree (-23%). 

Declines in investment were similarly registered for Barbados. According 

to the BIDC’s quarterly Employment & Investment Survey, foreign 

investment in the manufacturing and related services sectors fell from 

BDS$7.3 million to BDS$6.8 million during the period April 2009 to 

March 2010. Total investment – both local and foreign, for this period was 

BDS$43.7 million; this is BDS$4.5 million or 10.2% less than the BDS$48.1 

million recorded for the previous period April 2008 to March 2009. In the 

manufacturing sector, the Food, Beverages, & Tobacco sub-sector recorded 

the largest share of investment with BDS$31.1 million or 71.2% of total 

investment. The Other Services sub-sector recorded the highest share 

of investment in the services sector with an amount totaling BDS$1.9 

million. The January to March 2010 quarter was the most active period for 

investment, recording an amount of BDS$18.0 million. 

A number of macroeconomic indicators however signal that the overall 

environment for international investment is slowly improving. For instance, 

the International Monetary Fund’s World Economic Outlook, forecasts a 

3.1% growth in world gross domestic product for 2010, as against -1.1% 

in 2009. At the company level, profits of Trans National Corporations 

(TNCs) world-wide have been rising since the second quarter of 2009, 

thus reversing the sharp drop observed at the end of 2008. According to 

Standard and Poors (S&P) profits made by the firms that make up the 

S&P 500 bounced back as early as the second quarter of 2009, to levels 

equivalent to those of the same period of the previous year. 

It is predicted that improving conditions will ultimately encourage 

companies to revise upward their international investment plans for 2010 

onward, which in turn should give rise to growing FDI flows in 2010. But, 

as the recovery in economic growth and profits remains fragile, especially 

because it has been boosted by the potentially transitory impact of special 

economic packages implemented by major economies, the recovery in FDI 

is expected to be modest. As reported in UNCTAD’s World Investment 

Report 2009, overall medium-term prospects remain positive. 5 

4 

Global Economic Prospects 2010, World Bank, DEC Prospects Group 

5 

UNCTAD Global and Regional FDI Trends 2009 

12 


ANNUAL REPORT 2010

Figure 1 

DISTRIBUTION OF INVESTMENT - 2008/09 & 2009/10 

(BDS$) 

60,000,000 

50,000,000 

40,000,000 

$40,857,656 

$36,858,650 

$48.144.269 

$43,668,989 

Foreign 2008/09 

Foreign 2009/10 

30,000,000 

Local 2008/09 

20,000,000 

Local 2009/10 

10,000,000 

$7,286,613 $6,810,248 

Total 2008/09 

Source: Barbados Investment and Development Corporation 

0 

AREA OF INVESTMENT 

Total 2009/10 

TABLE 1 

COMPARATIVE SECTORAL DISTRIBUTION OF INVESTMENT FOR 

FISCAL YEARS 2008/09 & 2009/10 

(BDS$) 

SUBSECTOR 2008/09 2009/10 Net Change %Change 

FOOD, BEVERAGES & TOBACCO 16,739,459 31,100,471 14,361,012 85.79 

TEXTILES, APPAREL & LEATHER 1,218,735 27,000 (1,191,735) -97.78 

WOOD, WOODEN PRODUCTS & FITTINGS 326,317 5,000 (321,317) -98.47 

PAPER PRODUCTS & PRINTING 897,778 3,653,134 2,755,356 306.91 

CHEMICALS & CHEMICAL PRODUCTS 1,057,367 2,001,647 944,280 89.30 

PLASTIC PRODUCTS 1,328,394 92,755 (1,235,639) -93.02 

NON METALLIC MINERAL PRODUCTS 17,193,922 3,028,357 (14,165,565) -82.39 

FABRICATED METAL PRODUCTS 2,067,343 416,255 (1,651,088) -79.87 

PRECISION INSTRUMENTS 44,683 60,010 15,327 34.30 

ELECTRONIC COMPONENTS 734,350 14,657 (719,693) -98.00 

HANDICRAFT 28,380 106,300 77,920 274.56 

OTHER MANUFACTURING 228,180 506,500 278,320 121.97 

Sub-Total 41,864,908 41,012,086 (852,822) -2.04 

INFORMATION SERVICES 419,205 325,588 (93,617) -22.33 

OTHER SERVICES 5,860,156 2,012,331 (3,847,825) -65.66 

Sub-Total 6,279,361 2,337,919 (3,941,442) -62.77 

Total 48,144,269 43,350,005 (4,794,264) -9.96 




PERFORMANCE ENHANCEMENT INITIATIVES 

To assist in the development of the local small business sector, Government 

announced that a window facilitated by the Central Bank of Barbados 

of up to BDS$15 million will be established whereby persons owed 

outstanding monies by Government, and with proof of having satisfactorily 

completed their work can receive up to 90 per cent “advances” from that 

institution. This is to be done through factoring of the small businesses 

trade receivables with the commercial banks who then discount these 

advances with the Central Bank. 

Small businesses are often confronted with long waiting periods for 

payment of work completed on government contracted jobs. With this 

facility, such enterprises can benefit from an ease in the pressure on their 

cash flow, easily meet pay roll expenses and restock and retool their 

operations and become eligible for other consideration. This is all in an 

attempt to assist the cash flow of the small businessman or woman and 

ensure job retention in these difficult times. 

Government also announced its intention to merge the operations of 

some of its Funding Agencies such as Fund Access, the Enterprise Growth 

Fund Ltd, the Industrial Investment Employment Fund and the Innovation 

Fund, in order to bring a better and faster response to the needs of the 

diverse clients. 

In light of the on-going challenges facing the economy, the Central Bank 

of Barbados further enhanced its financial and technical support to the 

productive sector in Barbados. With effect from August 1, 2009, enterprises 

utilizing the Industrial Credit Fund Scheme, the Credit Guarantee Scheme 

for Small and Medium-sized Enterprises and/or the Export Credit 

Insurance & Guarantee Scheme were entitled to benefit from several 

enhancements. 

In addition to commercial banks, who could access the facility, the following 

institutions became eligible for consideration as financial intermediaries 

for all schemes (subject to satisfactory review by the Central Bank’s 

Supervision Department when necessary): 

• Part III Finance Companies 

• Enterprise Growth Fund Limited 

• Barbados Agency for Micro-Enterprise Development Ltd 

(Fund Access) 

• Small Hotels Loan Fund 

Enhanced support was also offered through the Industrial Credit Fund as 

follows: 

1. The annual provision of loans not exceeding BDS$10.0 million under 

the ICF to certain institutions (Banks and Part III companies) for onlending 

to specific sectors. 

2. The annual provision of loans not exceeding BDS$3.0 million to 

Enterprise Growth Fund Ltd and BDS$1.0 million to Fund Access for 

on-lending to small and medium-sized businesses. Where guarantees 

are sought, the Central Bank of Barbados will remain in direct control 

of the approval process. 

3. The ICF lending rate on loans from BDS$50,000 to BDS$250,000 

was set at 100 basis points below the ICF rate, to accommodate small 

businesses only but not to burden the Bank with the smallest loans. 

4. The maximum maturity period for ICF loans increased from 20 years 

to 25 years. 

5. Loans for refinancing are now eligible for ICF funding. 

6. The ceiling on ICF loans has been increased from BDS$5.0 million to 

BDS$7.5 million. 

7. The amount that approved financial intermediaries can advance 

without first seeking the approval of the ICF has been increased from 

BDS$450,000 to BDS$1.0 million, subject to their having met the ICF 

criteria. 

Some enhancements to the Credit Guarantee Scheme were undertaken 

in order to make the scheme more attractive and relevant to the needs 

of businesses. The following changes have been made: 

1. The maximum maturity for short-term guaranteed loans has been 

increased from 2 to 3 years. 

2. The maximum maturity for long-term guaranteed loans has been 

increased from 7 to 12 years. 

The Central Bank also announced the introduction of a technical assistance 

programme to assist businesses in particular areas of difficulty critical to 

their success. The grant may cover up to 50% of the cost of business plans, 

financial statements, market research, or eligible advisory services up to 

an agreed maximum. These services must be facilitated by appropriately 

qualified persons in Economics, Accounting, Marketing, Management or 

other relevant fields in order for the grant to be applicable. 

14 


ANNUAL REPORT 2010

REPORT ON OPERATIONS 

RESEARCH AND DEVELOPMENT 

The role of the BIDC is principally to contribute to the diversification 

and growth of the economy through new investment, increased exports 

and employment creation by fostering the development of competitive 

manufacturing, related services and small business enterprises. Finding and 

applying solutions that will aid in the further development of the industrial 

sector is also part of the BIDC’s corporate goals. 

Towards this objective, the organization seeks to engage in specific research 

activities that would stimulate new innovative products and processes, new 

sectors, and provide design services that would assist clients in upgrading 

and improving product features for existing products. These activities are 

facilitated through the Corporation’s Research Information and Design 

Services Division. 

During the past year, considerable emphasis was placed on the utilisation 

of indigenous resources for new product development. In particular, much 

attention was focused on encouraging the use of indigenous agricultural 

produce to develop a more diversified range of food and beverages. 

Special attention was also paid to establishing an interface between 

Barbadian manufacturers, agriculturalists, food technologists/ scientists and 

the health and wellness consumer niche in a bid to tap into the trend 

for the development of ingredients with health and wellness functionality. 

Feasibility research was therefore undertaken on the development of four 

key market segments: Herbal Infusions and Teas; Fruit Wines, Organic and 

Specialty Flours and Confectionery. These projects are expected to be 

advanced in 2010. 

Beyond these feasibility studies, the Corporation initiated work on 

developing a new Research and Development Policy. It is anticipated 

that through an aggressive research and development programme, the 

Corporation can facilitate the development of the aforementioned projects 

as well as new products and sectors and by so doing broaden the island’s 

industrial base; identify new engines of growth within the manufacturing 

sector and create opportunities for investment and job creation. 

The primary objective of this new policy is to position the BIDC as a 

leader in key R&D activities that will enhance growth and competitiveness 

across the manufacturing sector. In addition, it is hoped this new policy will 

provide an avenue to: 

• Establish vital linkages between academia and the manufacturing 

sector. 

• Strengthen mechanisms for knowledge transfer. 

• Stimulate creativity and excellence of entrepreneurs through 

strengthening the knowledge base 

• Establish research driven clusters/ a council 

• Develop and commercialise new products 

• Improve the quality and utility of existing products 

• Stimulate demand for and support the marketing of products 

benefitting from R&D services of the Corporation 

• Identify foreign exchange earning opportunities through R&D 

projects 

• Generate funding for R&D activities 

It is expected that the proposals outlined in the new R&D Policy will be 

initiated during 2010. 

Design Advisor Stella Hackett (left) makes a point to 

note on new product development. 

Design Advisor Philip Marshall takes participants 

through the product development process. 



BIDC officials along with artisans 

participating in the Onsite Project. 

Consultant Patty Johnson and Craft Coordinator Sandra Browne 

during one of the site visits undertaken as part of the Onsite Project 

During the period under review, the Design Services Unit of the Division 

provided design assistance and consultation to both internal and external 

clients of the Corporation. 

Within the BIDC, the Unit was responsible for the design of all BIDC 

promotional materials as well as press advertising and also undertook the 

redesign and maintenance of the BIDC’s corporate website. With respect 

to its work for external clients, the majority of these projects were direct 

referrals from the Entrepreneurial Development and Export Promotion 

Divisions. The assistance requested was primarily in the development of 

corporate identity, branding, packaging, signage and other promotional 

literature and devices. On average, the unit received ten (10) new requests 

per month as well as modifications and adjustments of existing work. In 

addition to logo development, a typical request included the full suite of 

corporate materials as well as direction in relation to final production, 

delivery of print-ready files and print supervision. 

The Design Advisers (DAs) provided consultation to many clients who 

were contemplating new business start-ups, expansion of existing product 

lines or new product development. One outstanding feature of the 

period under review was the dramatic increase in requests for website 

development. However, requests by clients for product design fell below 

other design areas. 

Ministries and other departments of Government also benefited from 

our design consultation and design services. A booklet series was 

produced for the Ministry of Foreign Affairs and Foreign Trade and two 

major presentations on packaging for artisans and effective booth design 

and trade show participation were formulated for the National Cultural 

Foundation (NCF). Presentations on the Design Business and Intellectual 

Property were delivered to The Barbados Community College and others 

were organized for the Caribbean Centre for Development Administration 

(CARICAD) and the Cabinet Office. Assistance was also offered to the 

Barbados Tourism Authority (BTA) with the conceptualization of the 

Barbados pavilion for Expo Shanghai 2010. 

Beyond this, the Unit’s collaborative work also extended to new product 

development. The DAs were dedicated to the conceptualization, design 

and development of items for the Onsite Caribbean Project and were 

heavily involved in preparations for the official product launch in 2010. That 

work took them to France where they participated in the Paris exhibition, 

Maison et Object. New products designed for this project included turned 

wooden stools, wood and clay infusers, stackable clay containers inspired 

by traditional pottery, textile motifs, patterns and colour schemes and 

outdoor seating also in preparation for the official product launch. 

The BIDC also collaborated with the Caribbean Export Development 

Agency in the launch and development of the Regional Design Initiative 

hosted in the Dominican Republic. One DA exhibited new products at 

the NCF’s Design Exhibition in August, 2009. 

Among the other major projects in which the Unit was involved were: 

• The Fashion and Textiles Resource Centre and Fabric Bank to be 

housed in the BIDC Information Services Centre 

16 


ANNUAL REPORT 2010

• The development of the Fashion and Design Association 

• Signage and promotional materials for Pelican Craft Centre 

• Design and installation of vendor’s kiosks at the Grantley Adams 

International Airport (GAIA) 

• Craft installations in the Arrivals Hall of GAIA 

• Assistance to the Barbados Manufacturers Association (BMA) with 

BMEX 2009 and collaboration with the Entrepreneurial Development 

Division with the Pavilion ‘The Clay Journey’ 

• Phase 2 of the Portfolio Development project 

• Design of packaging for various new food products including Cou-Cou, 

Cassava Flour, Confectionery and Goat’s Milk 

• Design of materials for the BIDC sponsored Renewable Energy 

Symposium 

SUSTAINING AND CREATING JOBS 

The BIDC, as part of its research and information services, also keeps track 

of employment trends. At March 2010, there was a marked decline in 

employment within the companies surveyed through the quarterly Survey 

of Employment & Investment at March 2010 when compared to March 

2009. Total employment at March 2010 was 12,712, a decrease of 777 

jobs when compared with 13, 489 jobs registered in the corresponding 

period in 2009. Employment in the manufacturing sector at March 2010 

was 8,240 which was 4.1% less than the 8,593 recorded at March 2009. 

There was also a decline in jobs in the services sector. Employment totaling 

4,472 at March 2010 was 424 or 8.7% less than the 4,896 recorded for 

the corresponding 2009 period. 

On the other hand, some increase in job creation was noted. Total jobs 

created for the period April 2009 to March 2010 were 976; this is 74 or 

8.2% more than in the previous period April 2008 to March 2009 when 

902 job opportunities were created. The textiles, apparel & leather subsector 

recorded the highest number of jobs created in the manufacturing 

sector, contributing 150 or 15.4% of total jobs created. In the services 

sector, the information services sub-sector recorded 22.3% or 218 of jobs 

created in this period. The period July to September 2009 was the most 

productive, creating a total of 369 jobs or 33.4%. 

TABLE II 

EMPLOYMENT IN SUB-SECTORS SURVEYED BY BIDC 

AT MARCH 2009 & MARCH 2010 

SUBSECTOR March 2009 March 2010 Net Change % Change 

FOOD, BEVERAGES & TOBACCO 3,575 3,326 -249 -6.97 

TEXTILES, APPAREL & LEATHER 561 600 39 6.95 

WOOD, WOODEN PRODUCTS & FITTINGS 396 384 -12 -3.03 

PAPER PRODUCTS & PRINTING 766 734 -32 -4.18 

CHEMICALS & CHEMICAL PRODUCTS 399 392 -7 -1.75 

PLASTIC PRODUCTS 221 212 -9 -4.07 

NON METALLIC MINERAL PRODUCTS 1,120 1,053 -67 -5.98 

FABRICATED METAL PRODUCTS 848 854 6 0.71 

PRECISION INSTRUMENTS 173 169 -4 -2.31 

ELECTRONIC COMPONENTS 286 241 -45 -15.73 

HANDICRAFT 126 124 -2 -1.59 

OTHER MANUFACTURING 135 151 16 11.85 

Sub-Total 9,136 8,592 -544 -5.95 

INFORMATION SERVICES 2,241 2,026 -215 -9.59 

OTHER SERVICES 2,642 2,446 -196 -7.42 

Sub-Total 4,863 4,896 33 0.68 

Total Employed 13,999 13,488 -511 -3.65 




ENTREPRENEURIAL DEVELOPMENT 

Throughout the past year, the BIDC witnessed a substantial increase in 

the number of Barbadians opting to establish their own enterprises. The 

Corporation’s Entrepreneurial Development Division (EDD) assisted in 

establishing some 41 new small businesses between April 2009 and March 

2010. This is just shy of double the 21 new companies registered in the 

previous year ending March 2009. 

Some of those who participated in the EPA seminar 

With the creation of the 41 new businesses, new investment amounted 

to Bds$1.7 million, more than triple that reported in the 2009 financial 

year. This increased activity in new company starts also brought significant 

returns in the creation of 118 new jobs, up from the 39 generated in the 

previous year. 

The Corporation also welcomed significantly more persons who visited 

its offices either for assistance in establishing new ventures or to access 

the suite of professional services and resources provided to assist them 

in overcoming challenges emerging in the market. Some 251 new clients 

were recorded during the year, as compared to 121 last year. At the end 

of March 2009, the EDD’s client portfolio exceeded 700. 

Much of the assistance given was aimed at capacity building of small 

businesses, improving their viability, market share, productivity levels, 

implementing adequate and efficient operating systems, creating sustainable 

business models and enhancing profitability. A number of business plans 

and development plans were also completed. 

Some 18 seminars and workshops were hosted by the EDD within the 

year to enhance business expertise in areas such as intellectual property, 

export market requirements, business planning and budgeting, business 

efficiency and product development. Participants in the EDD’s two flagship 

programmes – the Incubator Programme and the Innovation Support 

Initiative were especially targeted as beneficiaries of this training. 

A number of community outreach programmes aimed at developing 

and nurturing an entrepreneurial culture were also executed. BIDC 

personnel made a total of 11 presentations to local schools, churches 

and youth groups. In addition, the EDD hosted two six-hour workshops 

on behalf of the Welfare Department, each over three days. These were 

hosted at the Princess Margaret Secondary School and the Deacons 

Resource Centre and highlighted not only the role of small businesses 

in propelling economies out of recessions but also the BIDC’s role in 

assisting entrepreneurial development. 

CRAFT DEVELOPMENT 

Increased emphasis was placed on advancing the craft sector and creating 

greater visibility for the artisans’ work during the year. The Pelican Craft 

Centre was the main hub of marketing activities and special events 

undertaken by the Craft Development Unit to put local craft in the 

spotlight. The EDD’s Small Business Centre was also utilised throughout 

the year to exhibit the work of tenants at the Pelican Craft Centre and 

the Incubator Unit. The Corporation dedicated its entire pavilion at BMEX 

2009 to highlighting the Journey of Clay from Particles to Products; a 

special exhibition displaying the work of 10 artisan studios. The Journey 

of Clay craft exhibits were also hosted at the arrivals’ hall of the Grantley 

Adams International Airport and the Almond Bay hotel. 

The month of June was dedicated as Craft Month, an initiative which 

served to increase visibility of the artisans’ work and to boost the local 

crafts sector as a whole. The Craft Development Unit also coordinated 

the participation of artisans in several promotional events, among them, 

the Bajan Pride Exposition and the Crop Over Las Lap. Artisans were also 

featured in the Pelican Half Hour radio show, which ran between February 

and May and was introduced to give craft persons an opportunity to 

showcase their products. As part of efforts to increase traffic to the Pelican 

Craft Center, the unit also coordinated the Pelican Cruise Welcome during 

the winter tourist season. 

To assist in new product development, practical hands-on training was 

provided for clients in product development, woodworking and leather 

crafts. BIDC officers themselves received training through the 9th 

18 


ANNUAL REPORT 2010

The Bajan Pride Expo was hosted at Pelican Craft centre to promote 

the work of artisans and attracted several persons. 

Les Francis instructs designers as part of the Portfolio project. 

The Craft on display at the GAIA. 

Commonwealth India Small Business Competitiveness Development 

Programme and the Pan Commonwealth Fibres Skills Programme, both 

hosted in India. Officers also attended workshops facilitated by the US 

based Aid to Artisans Programme and participated in an Innovative 

Product Development workshop in Trinidad. 

EXPORT PROMOTION AND DEVELOPMENT 

During the financial year 2009/2010, the BIDC was again charged with 

the responsibility to champion the national effort aimed at promoting the 

export of Barbadian goods and services. Plans for the introduction of a 

dedicated national export promotion agency were shelved. 

One of the promotional vehicles used as part of the market 

development initiative. 

The main thrust of the Corporation’s work was aimed at stabilizing nonsugar, 

non-petroleum export levels and achieving a slowdown in the rate 

of declining export sales, precipitated by continued economic upheavals 

in the main markets. It appears that efforts in this regard were successful 

as the rate of decline at the end of the year had fallen significantly since 

the first quarter. The fallout for April-December 2009 compared to the 

corresponding period of 2008 was 27.7%, a loss of BDS$54 million in 

exports, while it was 11%, a loss of BDS$47.3 million in exports, for the 

period April 2009-March 2010, compared to April 2008-March 2009. 

In fact, compared to March 2009, there was a marked turnaround in nonsugar, 

non-petroleum exports, which rose by 6.8% to BDS$36.5 million 



in March 2010. Growth was recorded in major product segments such 

as manufactured goods (29.8%); chemicals (67.7%) and machinery and 

transport equipment (56.3%). Increased export sales were also registered 

in six product categories within non-traditional exports. Disinfectants and 

insecticide sales were up BDS$8.6 million; cement grew by BDS$3.9 million; 

biscuits by BDS$1.7 million; furniture by BDS$1.2 million; condiments 

by BDS$0.6 million and paints and varnishes by BDS$0.3 million. Also 

during March 2010, exports to all CARICOM states rose by almost 20% 

to BDS$ 20.7 million while export earnings from major extra-regional 

trading partners, with the exception of the US improved. 

Perhaps the most significant achievement was however realised through 

the Corporation’s Market Development Programme. The BIDC achieved 

a 5.5% expansion in the sale of Barbadian specialty foods and beverages in 

the UK, US and Canada. Where at the end of the financial year March 2009 

exports of these specialty items were registered at BDS$4.8 million, sales 

amounted to BDS$5.1 million during the period April 2009-March 2010. 

The Market Development Programme, spearheaded by the Export 

Promotion & Development Division, is aimed at increasing Barbadian 

exports in the international markets of the USA, Canada and the UK. 

The programme uses in-country Market Representatives and a principle 

importer to introduce Barbadian products in new markets and utilises 

a number of strategies including niche marketing, branding, certification 

and the attainment of quality standards in helping manufacturers capitalise 

on potential export sales. During the period under review, there was 

significant growth in the number of specialty retail outlets carrying the 

Barbadian brands and efforts were initiated to expand the programme 

in Hungary and Germany. Developmental plans for a new website, www. 

tasteofbarbados.com were also initiated to enhance sales and distribution 

of the specialty products. 

To raise the profile of Barbadian products in targeted export markets, 

the BIDC began work on developing a Barbados Brands strategy. The 

Corporation also participated in several overseas promotional events 

including targeted product sampling, in-store promotions at supermarkets 

and retail outlets and the distribution of promotional literature. Distribution 

networks were strengthened with the appointment of six new distributors 

in the US, UK and Canada and arrangements were made to participate 

in five major international trade shows including the Fancy Food Show 

in the US and Rum Fest, Specialty Fine Foods and A Taste of Christmas 

in the UK. 

The BIDC also concentrated on enhancing the quality and range of 

products offered by existing exporters and small businesses with the 

potential for export. Eleven (11) new companies were drafted into the 

Export Readiness Programme during the period under review and the 

Corporation will continue to work with these firms in the coming year. The 

programme assesses the companies’ export readiness, addresses areas of 

weakness, familarises participants with export procedures, develops export 

marketing programmes and designs market entry strategies. The Export 

Expansion Programme was also continued. The 45 companies in this 

project are responsible for between 50%-60% of Barbados’ exports and 

as expected, their performance was affected by developments in the weak 

global economy. Exports under this programme during April 2009-March 

2010 came in at BDS$ 207.5 million as compared to BDS$241.9 million 

during April 2008-March 2009. It was however heartening to see that 10 

companies were able to achieve an increase in export sales during the 

period under review. 

The Corporation continued to devote special attention to Barbados’ 

traditional industries during the period under review, through the Basic 

Industries Programme (BIP). The five-year-old programme provides 

special developmental assistance to the furniture, condiments and textiles 

subsectors, which were traditionally the core of Barbadian manufacturing. 

As part of this initiative, the BIDC continued to work with a cadre of 

highly talented designers to expand and refine their fashion portfolios. 

This programme has seen significant emphasis being placed on developing 

and strengthening the skills base within the fashion industry to facilitate 

production according to internationally recognized and accepted standards. 

The Portfolio Project, an integral part of the programme, was instrumental 

in facilitating ten (10) Barbadian designers in meeting the requirements for 

successful marketing of their brands. 

Phase II of the project was executed with international fashion consultant 

Leslie Eric Francis facilitating training mainly in pattern drafting, with a 

brief overview on market trends, textiles for fashion, selecting the best 

fabric/materials and creating an effective portfolio. The primary objective 

of the project is to train designers in producing portfolios and to enable 

them to present themselves professionally at fashion events and to buyers, 

distributors and prospective employers. The training also included one-onone 

consultations with designers. As part of the BIP work was also started 

in establishing a Fashion and Textiles Resource Centre where designers 

can access fabric supplies and accessories. This resource centre will be 

housed within the BIDC’s Information Services Centre. 

20 


ANNUAL REPORT 2010

Furniture producers were also selected to benefit from training in advanced finishing techniques. The workshop is however in the planning stages. 

Financial assistance was offered to three furniture companies to participate in the Trinidad and Tobago Convention (TIC) 2010 and plans were advanced 

for upcoming market research to identify opportunities for exports of furniture within this market. 

As part of its capacity building effort, the Corporation facilitated 360 client visits during the year. These visits were aimed largely at medium and large 

exporters and entities with export potential. The visits also formed part of our special technical assistance services aimed at overall export growth. 

Table III 

SELECTED DOMESTIC EXPORTS 

Fiscal Years 2008/09 & 2009/10 

(BDS$ Million) 

SELECTED EXPORTS 2008/09 R 2009/10 P % Change 

$ BDS $ BDS 

Electronic Components 22,146,074 14,493,404 -34.56 

Soaps & Detergents 733,395 1,058,521 44.33 

Insecticides, Fungicides & Disinfectants 82,716 7,534,613 9,009.02 

Portland Cement 31,693,284 29,484,411 -6.97 

Garments 875,297 629,958 -28.03 

Paints & Varnishes 7,492,368 6,969,175 -6.98 

Metal Cans (cap. < 50 L) 11,467,298 9,262,712 -19.22 

Hand Tools 336,521 118,319 -64.84 

Paper Products 3,401,081 2,923,276 -14.05 

Printed Material 21,459,348 17,944,199 -16.38 

Biscuits 13,529,366 13,047,750 -3.56 

Margarine/Lard 19,099,485 17,085,137 -10.55 

Non-alcoholic Beverages 8,716,924 6,929,537 -20.5 

Sugar 45,421,328 35,793,608 -21.2 

Rum 69,725,477 57,654,011 -17.31 

Other Foods & Beverages 33,974,552 23,249,266 -31.57 

Furniture and Parts thereof 2,139,004 3,279,504 53.32 

Petroleum 43,749,406 13,080,288 -70.1 

SELECTED EXPORTS 336,042,924 260,537,689 -22.47 

DOMESTIC EXPORTS 519,583,293 395,537,360 -23.87 

SELECTED EXPORTS AS % OF DOMESTIC EXPORTS 64.68 65.87 1.85 

R – Revised P – Provisional 

Source: Barbados Statistical Service 



Table IV 

DOMESTIC EXPORTS TO CARICOM BY MARKETS 

Fiscal Years 2008/09 & 2009/10 

(BDS$) 

CARICOM MARKETS 2008/09 R 2009/10 P % 

Change 

ANGUILLA 3,418,594 1,430,894 -58.14 

ANTIGUA 19,185,179 12,326,714 -35.75 

BELIZE 4,112,874 2,606,110 -36.64 

DOMINICA 9,270,926 5,943,413 -35.89 

GRENADA 17,088,039 18,780,638 9.91 

GUYANA 26,848,991 22,209,283 -17.28 

JAMAICA 29,943,487 25,686,516 -14.22 

MONTSERRAT 411,414 288,086 -29.98 

ST. KITTS/NEVIS 13,320,565 7,515,376 -43.58 

ST. LUCIA 41,063,172 27,479,565 -33.08 

ST.VINCENT 22,076,371 19,881,951 -9.94 

SURINAME 7,297,024 4,973,028 -31.85 

TRINIDAD & TOBAGO 79,836,730 43,322,694 -45.74 

TOTAL 273,873,366 192,444,268 -29.73 



Table V 

DOMESTIC EXPORTS TO MAJOR MARKETS BY VALUE AND PERCENTAGE SHARE 

Fiscal Years 2008/09 & 2009/10 

(BDS$) 

2008/09 R % 2009/10 P % 

MARKETS $ BDS Share $ BDS Share 

CARICOM 273,873,366 52.71 192,444,268 48.65 

USA 81,319,609 15.65 64,193,633 16.23 

Canada 19,402,121 3.73 18,393,396 4.65 

EU 85,328,543 16.42 70,914,500 17.93 

Dominican Republic 3,577,085 0.69 2,083,332 0.53 

Other 56,082,567 10.79 47,508,231 12.01 

TOTAL 519,583,291 100 395,537,360 100 



22 


ANNUAL REPORT 2010

TECHNICAL ASSISTANCE 

In this unstable business environment, the Corporation’s Special Technical 

Assistance Programme (STAP) proved crucial to maintaining the viability 

and competitiveness of Barbadian companies. Originally implemented in 

2001 for the benefit of the manufacturing sector, the STAP has since been 

made available to the services sector. Companies benefitting from the STAP 

are exposed to a comprehensive evaluation, including a diagnostic survey 

and a benchmarking exercise. A three-year development programme is 

then devised and implemented to address any deficiencies. 

The programme, since inception, has provided assistance to the value 

of BDS$42.3 million. There was however a major reduction in the 

funds available for the programme during the period April 2009–March 

2010. Approximately BDS$2.7 million was disbursed this year, and this 

represented more than a 50% fall-off in assistance from the previous 

year. This funding nevertheless proved critical in assisting companies with 

marketing, the upgrade of their systems, procedures and equipment as 

well as training and productivity enhancement. 

PROPERTY MANAGEMENT 

The BIDC remains committed to providing physical accommodation in 

its industrial estates which favourably compares with that offered in the 

industrial nations of the world. To this end, the Corporation continued to 

strengthen its in-house capabilities to more effectively manage the twelve 

(12) industrial estates under its portfolio. 

BIDC and Gildan officials sign on the Newton sale of agreement. 

As a result of sustained demand for operating space during the period 

under review, the Corporation approved 21 new allocations. These 

were awarded to firms in several diverse areas ranging from information 

services and consultancies to garment manufacturing, fish processing, ice 

production and woodwork to electronic equipment assembly. 

Efforts to lease and sell properties within the industrial estates were 

continued in line with the thrust to further enhance the Corporation’s 

performance in property management. Proceeds from the sale of 

properties will provide funds for capital expansion and refurbishment and 

will at the same time provide equity for manufacturers who on purchasing 

would be the owners of the properties. During the period under review, 

an agreement was reached for the sale of the Newton Business Park. 

International T-shirt manufacturer Gildan Activewear is the prospective 

owner of the 6.5 acre property. 

The upgrade and refurbishment of estate properties also continued to 

be a priority for the BIDC’s Property and Estates Management Division 

during the period under review. The vast majority of funding was however 

dedicated to the partial demolition of buildings which were affected by 

fire at the Harbour and Grazettes Industrial parks. It is expected that 

plans for the reconstruction of these properties will be examined in the 

coming year. 

RENT COLLECTION 

One of the industrial estates under BIDC management. 

The collection of rents is a key revenue generating activity for the 

Corporation. The efforts of the Accounting Services Department during 

the review period realized BDS$10.9 million in rent, up 1.01% from the 



BDS$10.1 million collected in the previous year. This represents a collection 

rate of 92% of billings as compared with 90% in the previous year. While 

revenues increased with increased occupancy and additional space being 

made available during the review period, the number of clients failing to 

service their rental obligations also increased. 

The BIDC remains committed to assisting companies in meeting their 

rental commitments and continues to work with tenants to identify 

alternative payment plans that redound to the benefit of all parties. The 

Corporation will at the same time seek to expand its space recovery 

program in the upcoming fiscal period. 

STRATEGIC PARTNERSHIPS 

The BIDC continued to involve all of the relevant umbrella organizations 

and industry partners in various promotional and developmental initiatives 

either through joint staging of events or through consultations. 

Joint initiatives were facilitated with several agencies in hosting a sector 

development seminars and workshops. The BIDC collaborated with the 

Caribbean Development Bank (CDB), through its Caribbean Technological 

Consultancy Services Network (CTCS) in hosting a workshop on 

intellectual property (IP) aimed at educating businesses on securing their 

IP rights and tapping in on the economic benefits of IP. The Corporation 

also partnered with Cisco Systems USA in hosting a three-day seminar 

on facing business challenges with technology. Out of that workshop, the 

BIDC is now working with Cisco towards the certification of 50 Barbadian 

technicians in four areas of information technology. 

Minister David Estwick (centre) visits the BIDC booth 

which paid tribute to the Journey of Clay. 

The BIDC further collaborated with the Caribbean Export Development 

Agency in a project on improving Caribbean product design and in 

general to advance the export thrust. The BIDC also moved to increase 

its collaborative work with the National Council for Science and 

Technology (NCST) and joined their road show to promote the National 

Innovation Competition and to sensitise the public about the importance 

of innovation in stimulating economic development. 

Close collaboration with the Barbados Manufacturers’ Association (BMA) 

continued and the BIDC once again was a major sponsor of the Barbados 

Manufacturers’ Exhibition (BMEX). Some 167 exhibitors participated in 

BMEX 2009, which attracted 42 buyers from the UK, US and Canada. 

CEO Basil Lavine (right) and BMA executive vice president 

Bobbi McKay (centre) at BMEX. 

The BIDC worked closely with the National Council for Science and 

Technology on intellectual property protection and innovation. 

24 


ANNUAL REPORT 2010

Outstanding and long service employees awarded were (second from left) Mr. Lionel Hoyte, Ms. Ottley Cox-Burrowes, Ms. Avril Cadogan, Ms. 

Angela Bascombe, Ms. Diana Brooks, Ms. Fern Gooding, Mr. Trevor Ifill, Mr. Wilbur Lavine, Mr. Neville Rice. At far left is Deputy Chairman Villeneuve 

Greaves. Missing are Mr. Robert Quintyne, Ms. Diana Carter and Ms. Paula Bourne. 

HUMAN RESOURCE DEVELOPMENT 

The Corporation continued its programme of organizational restructuring 

and the process of making staff reassignments and filling approved 

positions. The reconfiguration of Divisions/Departments will enable the 

Corporation to fulfill its mandate and respond more effectively to the 

challenges of developing the indigenous manufacturing and services 

sectors. 

An aggressive staff training programme continued to ensure that staff 

were well prepared to effectively perform their assigned duties and 

thereby enable the accomplishment of organizational objectives. Over 

90% of the agreed training programmes were completed. Financial 

constraints however required modification to the implementation of 

some programmes. 

A major development was the implementation of the Rosetta Stone 

Foreign language training programme designed to equip members of the 

Board and staff with conversational skills in Spanish. Six (6) Board members 

and nineteen (19) members of staff have registered for the programme. 

Other training sessions in which BIDC staff participated included: 

• Effective Communication and Human Relations 

• Alternative Dispute and Resolution 

Winner of the Spirit of the Enterprise Award, Ms. Ottley 

Cox-Burrowes is congratulated by CEO, Basil Lavine. 

• Computer Applications. 

• Records and Information Management 

• Employment Rights Act 2008 

• Safety and Health Courses 

• International Trade Policy 

• Strategies for SME’s 

• Training of Trainers 

• Service Delivery Workshop 



To complement the focus on organizational and staff development, 

a Human Resource Information System has been acquired. It is being 

populated with the required data and the system will facilitate effective 

planning and implementation of training programmes, increased use of 

Human resource metrics and other related activities. 

During the review period, significant emphasis continued to be placed 

on achieving organizational compliance with the requirements of 

the proposed Safety and Health at Work Bill. The Safety and Health 

Committee has been restructured in accordance with the legislation 

and required training continues for members. Relevant training was also 

provided for committee members including: Indoor air quality and mould 

awareness training; Safety and Health Committee Member Certification 

Parts 1 & 2 and Disaster Preparedness. The effectiveness of the Health 

and Safety programme is expected to be reflected in the corporation’s 

smooth response to any emergencies (e.g. hurricanes) as well as concerns 

raised by staff to environmental conditions. 

Personal Safety. A Lecture on Budgeting and Saving was conducted by the 

Central Bank of Barbados and another on Investing 101 was conducted by 

Caribbean Money Market Brokers (Barbados) Ltd. (CMMB). 

As part of the employee recognition efforts, long-serving members of staff 

as well as outstanding employees were also honoured during the annual 

Christmas Party and Awards Ceremony. Of special significance was the 

presentation of the Bravery Award by CEO Basil Lavine to Messrs Ricardo 

Ward and Patrick Lovell for their actions in the prevention of a robbery of 

a coworker at the Small Business Centre on December 28, 2010. 

An ergonomic assessment was completed at the BIDC’S main office 

building, as well as its Pelican Craft Center and Small Business Centre 

offices. The report has been received and implementation of agreed 

recommendations continued during the year. The pace of implementation 

has however been restricted because of financial constraints. 

EMPLOYEE RELATIONS AND WELFARE 

Emphasis continued to be placed on improving staff relations and the 

quality of work life. In support of this a number of events were held: These 

included: BIDC – The Other Side which enabled members of staff to show 

case their talents and the BIDC Wellness Day, which served to increase 

employee awareness of health issues and providing concrete assistance 

through the offering of free health checks (blood pressure, blood sugar, 

cholesterol, weight and urine. 

To encourage physical fitness and activity, line dancing classes were also 

organised for employees. Negotiations were completed and permission 

received for the introduction of a contributory Medical and Life Insurance 

plan for staff. The Scheme is schedule to become effective in the new 

fiscal year. 

Several educational sessions were organized in support of employee 

health, wellness and personal development. A two (2) hour nutritional 

lecture was hosted, followed by two others on Crime Prevention and 

26 


ANNUAL REPORT 2010

KPMG Telephone (246) 427 - 5230 

Hastings Fax (246) 427 - 7123 

Christ Church, BB 15154 Email info@kpmg.bb 

Barbados 

Auditors’ Report 

P.O. Box 690C 

Bridgetown, Barbados 

To the Board of Directors Barbados Investment and Development Corporation 

We have audited the accompanying consolidated financial statements of the Barbados Investment and Development Corporation (the “Corporation”), 

which comprise the consolidated statement of financial position as at March 31, 2010, the consolidated statements of changes in equity, comprehensive 

income 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 consolidated financial statements in accordance with International 

Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and 

fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate 

accounting policies; and making accounting estimates that are reasonable in the circumstances. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance 

with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan and perform the 

audit to obtain reasonable assurance whether the consolidated financial statements are free of material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The 

procedures selected depend on our 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, we 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 principles used 

and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial 

statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

Opinion 

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as at March 31, 

2010, its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. 

Chartered Accountants 

Bridgetown, Barbados 

September 23, 2010 

KPMG, a Barbados partnership and a member firm of the KPMG network of Independent member firms affiliated with 

KPMG International Cooperative (“KPMG International”) a Swiss entity.

Consolidated Statement of Financial Position 

As at March 31, 2010 

with comparative figures for 2009 

(Expressed in Barbados dollars) 

2010 2009 

Assets 

Current Assets 

Cash and cash equivalents (note 4) $ 10,995,056 4,020,416 

Accounts receivable (note 5) 4,955,766 2,135,687 

Investments (note 6) 15,640 14,000 

Staff loans 296,278 155,044 

Inventory 66,818 205,979 

Prepaid expenses 61,028 65,732 

16,390,586 6,596,858 

Staff loans 163,398 411,818 

Sinking fund investment (note 7) 3,663,235 1,430,412 

Development projects (note 8) 106,244,489 144,690,419 

Property, plant and equipment (note 9) 2,027,590 2,244,854 

Total Assets $ 128,489,298 155,374,361 

Liabilities and Equity 

Current liabilities 

Accounts payable and accrued liabilities $ 7,770,066 7,570,195 

Bank overdraft - 1,657,005 

Current portion of long term debt (note 10) 22,359 3,062,995 

7,792,425 12,290,195 

Due to Government of Barbados (note 11) 16,411,206 15,797,427 

Long term debt (note 10) 37,962,775 56,725,854 

Deferred capital grants (note 12) 41,291,863 43,680,073 

Special Technical Assistance Fund (note 13) 5,378,971 3,913,739 

108,837,240 132,407,288 

Equity 

Capital contributed by Government of Barbados (note 14) 7,504,087 7,504,087 

Fair value reserve 9,183 7,740 

Sinking Fund (note 7) 5,663,265 3,430,442 

Accumulated excess of revenue over expenditure 6,475,523 12,024,804 

19,652,058 22,967,073 

Total Liabilities and Equity $ 128,489,298 155,374,361 

See accompanying notes to consolidated financial statements. 

Approved on behalf of the Board: 

............................................ Director ......................................................... Director 

28 


ANNUAL REPORT 2010

Consolidated Statement of Changes in Equity 




Capital 

Contribution 

Accumulated 

by Fair excess of 

Government Value Sinking Minority revenue over 

of Barbados reserve fund interest expenditure Total 

Balance - March 31, 2008 $ 7,504,087 10,440 1,703,410 - 13,327,574 22,545,511 

Excess of revenue over expenditure for the year - - - (14,955) 382,867 367,912 

Appropriation to sinking fund (note 7) - - 1,670,682 - (1,670,682) - 

Interest earned on amounts invested (note 7) - - 56,350 - - 56,350 

Amount transferred to retained earnings - - - 14,955 (14,955) - 

Fair value adjustment - (2,700) - - - (2,700) 

Balance - March 31, 2009 7,504,087 7,740 3,430,442 - 12,024,804 22,967,073 

Excess of revenue over expenditure for the year - - - (742) (3,355,265) (3,356,007) 

Appropriation to sinking fund (note 7) - - 2,193,274 - (2,193,274) - 

Interest earned on amounts invested (note 7) - - 39,549 - - 39,549 

Amount transferred to retained earnings - - - 742 (742) - 

Fair value adjustment - 1,443 - - - 1,443 

Balance - March 31, 2010 $ 7,504,087 9,183 5,663,265 - 6,475,523 19,652,058 




Consolidated Statement of Comprehensive Income 

For the year ended March 31, 2010 



2010 2009 

Revenue 

Factory space rental $ 10,548,850 9,799,078 

Retail gross profit (note 15) 68,314 498,690 

Other (note 16) 290,663 562,573 

10,907,827 10,860,341 

Revenue grant from Government of Barbados (note 17) 15,666,314 14,421,144 

Gain (loss) on disposal of plant and equipment (13,155) 6,211 

Gain on disposal of development projects (7,716,940) 5,418 

18,844,046 25,293,114 

Expenditure 

Industrial estates 10,177,275 9,758,051 

Administration (note 18) 8,712,578 10,704,364 

Industrial and training grants 501,917 804,898 

Bad debts 1,090,696 409,456 

Interest expense 33,446 1,783,891 

20,515,912 23,460,660 

Excess of (expenditure over revenue) 

revenue over expenditure before the following items (1,671,866) 1,832,454 

Depreciation (notes 8 & 9) (4,072,351) (3,852,752) 

Amortisation of capital grants (note 12) 2,388,210 2,388,210 

Excess of (expenditure over revenue) revenue over expenditure, 

being comprehensive (loss) income for the year (3,356,007) 367,912 

Attributable to: 

Equity holder of the parent (3,355,265) 382,867 

Minority Interest (742) (14,955) 

Excess of (expenditure over revenue) revenue over expenditure, 

being comprehensive (loss) income for the year $ (3,356,007) 367,912 


30 


ANNUAL REPORT 2010

Consolidated Statement of Cash Flows 

For the year ended March 31, 2010 



2010 2009 

Cash flows from operating activities 

Excess of revenue over expenditure for the year $ (3,356,007) 367,912 

Adjustments for: 

Depreciation 4,072,351 3,852,752 

Amortisation of capital grants (2,388,210) (2,388,210) 

Deferred revenue grant - (79,581) 

Revenue grant reversed - 31,460 

(Gain) loss on disposal of plant and equipment 13,155 (6,211) 

Gain on disposal of development projects 7,716,940 (5,418) 

Interest income (31,970) (68,099) 

Interest expense 33,446 1,783,891 

Operating income before working capital changes 6,059,705 3,488,496 

(Increase) decrease in accounts receivable (2,820,079) 1,159,198 

(Increase) decrease in inventory 139,161 (56,878) 

Decrease (increase) in staff loans 107,186 (47,888) 

Decrease (increase) in prepaid expenses 4,704 (9,943) 

Increase in accounts payable and accrued liabilities 199,871 860,071 

Cash generated from operations 3,690,548 5,393,056 

Interest paid (11,592) (2,639,217) 

Net cash from operating activities 3,678,956 2,753,839 

Cash flows from investing activities 

(Purchase) redemption of sinking fund investments (2,232,823) 272,998 

Additions to development projects - net (3,421,194) (13,326,915) 

Additions to property, plant and equipment - net (93,971) (317,053) 

Proceeds on disposal of development projects 30,375,832 1,081,319 

Proceeds on disposal of plant and equipment 19 7,826 

Interest received 49,529 72,325 

Net cash from (used in) investing activities 24,677,392 (12,209,500) 

Cash flows from financing activities 

Increase in balance due to Government of Barbados 613,780 1,084,325 

Decrease in Special Technical Assistance Fund (net) 1,465,232 (2,047,208) 

Decrease in deferred revenue grant - (79,581) 

Long term loan instalments paid (21,803,715) (3,263,436) 

Net cash used in financing activities (19,724,703) (4,305,900) 

Net increase (decrease) in cash and cash equivalents 8,631,645 (13,761,561) 

Cash and cash equivalents - beginning of year 2,363,411 16,124,972 

Cash and cash equivalents - end of year (note 4) $ 10,995,056 2,363,411 

Represented by: 

Cash and cash equivalents $ 10,955,056 4,020,416 

Bank overdraft - (1,657,005) 


$ 10,955,056 2,363,411 



Notes to Consolidated Financial Statements 



1. Principal activity and principal place of business 

The Corporation was established under the Barbados Investment and Development Corporation Act 1992-30 for the purpose of developing Barbados’ 

industrial, off-shore financial, export and other related activities. The consolidated financial statements for the year ended March 31, 2010 comprise the 

corporation and its subsidiaries. 

The Corporation’s subsidiary, Islandcrafts (Barbados) Inc. was incorporated under the Companies Act of Barbados on September 03, 1998, and commenced 

operations on April 19, 1999. The principal activity of the subsidiary is the sale and marketing of indigenous handicraft items. The Corporation’s subsidiary, 

Newton Business Park Project Company Limited, was incorporated on June 12 , 2001 as the Special Purpose Vehicle Company established under a Build Own 

Transfer (BOT) arrangement set up to carry out construction works at the Newton Business Park Project – Phase 1. 

The Corporation’s principal place of business is located at Princess Alice Highway, St. Michael. 

2. Significant accounting policies 

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and its interpretations adopted 

by the International Accounting Standards Board (IASB). These consolidated financial statements were approved by the Board of Directors on September 23, 

2010. 

During the year, the Corporation adopted IAS 1 Presentation of Financial Statements – Capital Disclosures. The adoption of the amendment to IAS 1 impacted 

the type and amount of disclosures made in these financial statements, but had no impact on the reported income or financial position of the Corporation. In 

accordance with the transitional requirements of the standards, the Corporation has provided full comparative information. 

The accounting policies adopted by the Corporation are consistent with those of the previous financial year and have been applied consistently by the Group 

entities. These are as follows: 

(a) Basis of preparation 

These consolidated financial statements have been prepared on the historical cost basis. 

(b) Use of estimates and adjustments 

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that could affect the reported 

amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of 

revenues and expenditure during the year. Actual results could differ significantly from those reported. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the 

estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future 

periods. 

(c) Basis of consolidation 

(i) Subsidiaries 

Subsidiaries are entities controlled by the Corporation. Control exists when the Corporation has the power, directly or indirectly, to govern the financial 

and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or 

convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control 

commences until the date that control ceases. 

(ii) 

Transactions eliminated on consolidation 

Intragroup (corporation and subsidiary) balances and transactions, and any unrealised losses on income and expenses arising from intragroup transactions, 

are eliminated in preparing the consolidated financial statements. 

(d) Cash and cash equivalents 

Cash and cash equivalents are carried in the Statement of Financial Position at cost. For the purposes of the statement of cash flows, cash and cash equivalents 

comprise cash on hand and deposits held at call with other banks with original maturities of 90 days or less. 

32 


ANNUAL REPORT 2010




2. Significant accounting policies, continued 

(e) Revenue recognition 

Revenue from factory space rental and related interest charges is recognised on an accrual basis. Revenue from the sale of goods is recognised in the statement 

of comprehensive income when the significant risks and rewards of ownership have been transferred to the buyer. 

Other revenue is recognised at the point of delivery of the service. 

(f) Property, plant and equipment and development projects 

Property, plant and equipment and development projects are stated at cost less accumulated depreciation and impairment losses. Depreciation on property, 

plant and equipment and development projects is provided on the straight line method at rates which are calculated to write the assets off over their expected 

useful lives as follows: 

Buildings 

Furniture and fittings 

Computer hardware 

Computer software 

Machinery and equipment 

Vehicles 

2.5% per annum 

10% per annum 

33.3% per annum 

100% per annum 

10% per annum 

20% per annum 

Depreciation methods, useful lives and residual values are reviewed at each reporting date. 

Assets taken over from the former BIDC and the former BEPC are being depreciated over their remaining useful lives. 

Building repair and maintenance costs are charged to current operations and the cost of improvements capitalised. 

(g) Inventories 

Inventories are valued at the lower of cost and net realisable value. Cost is based on the first-in-first-out method. 

(h) Revenue and capital grants 

Revenue grants received from Government are taken to income in the period in which the related expenditure is incurred. 

Grants received from Government for capital expenditure are treated as deferred grants and amortised over the useful life of the assets purchased with grant 

funds. (See note 12) 

(i) 

(j) 

Capitalisation of interest 

Interest on loans obtained for the construction of development projects is capitalised during the period of construction. 

Pension scheme 

The Corporation operates a fully insured purchased annuity pension scheme for certain of its employees. The scheme takes the form of a defined contribution 

pension scheme. Pension costs are accounted for on the basis of contributions payable in the year. (Note 19) 

(k) Impairment 

The carrying amounts of the Group’s assets are reviewed at each statement of financial position date to determine whether there is an indication of impairment. 

If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its 

cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the statement of revenue and expenditure. 

For goodwill, assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is estimated at each 

Statement of Financial Position date. 






2. Significant accounting policies, continued 

(l) 

Accounts receivable 

Tenants’ rent receivables are carried at original invoice amount less an estimate for doubtful receivables based on a review of all outstanding amounts at 

the year end. The provision for doubtful receivables is based on the specific identification of doubtful receivables. Additions to the provision are charged 

to current operations. As receivables become uncollectible they are written off against the provision. 

(m) Interest-bearing borrowings 

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. They are subsequently stated at amortised cost with any 

difference between cost and redemption value recognised in the statement of revenue and expenditure over the period of the borrowing on an effective 

interest basis. 

(n) Investments 

The Company’s investments in equity are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value 

and changes therein, other impairment losses and foreign exchange gains and losses on available-for-sale monetary items are recognised directly in equity. 

When an investment is derecognised, the cumulative gain or loss in equity is transferred to profit or loss. 

(o) New standards and interpretations not yet adopted 

A number of new standards, amendments to standards and interpretations are not yet effective for the year ended March 31, 2010, and have not 

been applied in preparing these consolidated financial statements. None of these will have any effect on the consolidated financial statements of the 

Company. 

3. Determination of fair values 

A number of the company’s accounting policies and disclosures require the determination of fair value, for its financial assets and liabilities. Fair values 

have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the 

assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. 

(i) 

Trade and other receivables: 

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the 

reporting date. 

(ii) Non-derivative financial liabilities: 

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at 

the market rate of interest at the reporting date. 

34 


ANNUAL REPORT 2010




4. Cash and cash equivalents 

For the purposes of the statement of cash flows, cash and cash equivalents comprise: 

2010 2009 

Cash and bank balances $ 10,061,368 3,119,287 

Bank term deposits 933,688 901,129 

Cash 10,995,056 4,020,416 

Bank overdraft - (1,657,005) 

$ 10,995,056 2,363,411 

The following restrictions have been placed on certain bank and term deposit accounts: 

a) two of the current accounts amounting to $4,269,764 (2009: $1,224,503) have been restricted to provide special technical assistance to the 

manufacturing sector. 

b) one of the current accounts amounting to $4,446,068 (2009: $1,657,005) has been restricted to capital projects. 

c) the car loan revolving account amounting to $231,447 (2009: $124,716) has been restricted to car loans. 

The short term deposits earn interest at rates varying from 2.60% - 5.00% (2009: 4.50% - 6.35%) per annum. 

5. Accounts receivable 

2010 2009 

Tenants rent receivable $ 8,022,928 7,004,765 

Other 5,085,344 2,819,025 

13,108,272 9,823,790 

Less: Allowance for doubtful accounts (8,152,506) (7,688,103) 

$ 4,955,766 2,135,687 






6. Investments 

The investment held by the Corporation is classified as available-for-sale and is stated at fair value, with any resultant gain or loss being recognised directly in 

equity. The investment is represented by shares held in a publicly listed entity. 

When the investment classified as available-for-sale is sold, collected or otherwise disposed of, or when the carrying amount of the investment is impaired, the 

cumulative gain or loss recognised in equity is transferred to the income statement. 

Investments available-for-sale are recognised/derecognised by the Corporation on the date it commits to purchase/sell the investments. 

7. Sinking fund investments 

Under the terms of the Prospectus issued in relation to the issue of $12,000,000 - 8 3/4% Investment and Development Bonds 2008, the Corporation was 

required to set up a sinking fund by half yearly appropriations from its resources in order to provide for the redemption of bonds surrendered or maturing 

under the bond issue. The bonds were redeemed on March 31, 2009. 

In April 2008, the Corporation set up a sinking fund by monthly appropriations from its resources to provide for the repayment of the principal on the RBTT 

$38 million loan (US$19 million) in the year 2022. 

The balance in the sinking fund account is made up as follows: 

2010 2009 

Balance at beginning of year $ 3,430,442 1,703,410 

Appropriation to Sinking Fund 2,193,274 1,670,682 

Interest earned on amounts invested 39,549 56,350 

5,663,265 3,430,442 

Cash transfers to Capital Account (to be replenished) (2,000,030) (2,000,030) 

Balance at end of year $ 3,663,235 1,430,412 


Investment in term deposits $ 3,663,235 1,430,412 

The term deposits earned interest at rates varying from 2.60% - 5.00% (2009: 4.75% - 6.35%) per annum during the period. 

36 


ANNUAL REPORT 2010




8. Development projects 

Land and 

Development Construction 

Buildings Cost in Progress Total 

Cost 

Balance at April 1, 2008 $ 126,016,804 8,604,429 40,570,884 175,192,117 

Additions 95,002 7,449 9,443,879 9,546,330 

Transfers from construction in progress 989,741 138,877 (40,590) 1,088,028 

Disposals (2,455,177) (19,196) - (2,474,373) 

Other costs - - 3,548,825 3,548,825 

Balance at March 31, 2009 124,646,370 8,731,559 53,522,998 186,900,927 

Balance at April 1, 2009 124,646,370 8,731,559 53,522,998 186,900,927 

Additions 310,696 12,051 149,526 472,273 

Transfers from construction in progress 9,633,087 - (9,633,566) (479) 

Disposals - - (38,092,772) (38,092,772) 

Other costs - - 2,949,400 2,949,400 

Balance at March 31, 2010 134,590,153 8,743,610 8,895,586 152,229,349 

Accumulated Depreciation 

Balance at April 1, 2008 40,098,926 - - 40,098,926 

Charge for the year 3,510,054 - - 3,510,054 

Disposal of buildings (1,398,472) - - (1,398,472) 

Balance at March 31, 2009 42,210,508 - - 42,210,508 

Balance at April 1, 2009 42,210,508 - - 42,210,508 

Charge for the year 3,774,352 - - 3,774,352 

Disposal of buildings - - - - 

Balance at March 31, 2010 45,984,860 - - 45,984,860 

Net Book Value 

At April 1, 2008 85,917,878 8,604,429 40,570,884 135,093,191 

At March 31, 2009 82,435,862 8,731,559 53,322,998 144,690,419 

At April 1, 2009 82,435,862 8,731,559 53,322,998 144,690,419 

At March 31, 2010 $ 88,605,293 8,743,610 8,895,586 106,244,489 






9. Property, plant and equipment 

Furniture 

Computer 

Equipment 

Software Buildings and Vehicles Total 

Cost 

Balance at April 1, 2008 $ 6,155 2,486,286 2,475,133 4,967,574 

Additions - 89,133 227,920 317,053 

Work-in-progress - - - - 

Disposals - - (88,119) (88,119) 

Balance at March 31, 2009 6,155 2,575,419 2,614,934 5,196,508 

Balance at April 1, 2009 6,155 2,575,419 2,614,934 5,196,508 

Additions - 11,999 81,972 93,971 

Work-in-progress - - - - 

Disposals - (14,113) (4,339) (18,452) 


Accumulated Depreciation 

Balance at April 1, 2008 6,155 898,227 1,789,322 2,693,704 

Charge for the year - 63,238 281,219 344,457 

Disposals - - (86,507) (86,507) 

Balance at March 31, 2009 6,155 961,465 1,984,034 2,951,654 

Balance at April 1, 2009 6,155 961,465 1,984,034 2,951,654 

Charge for the year - 64,414 233,585 297,999 

Disposals - (2,333) (2,883) (5,216) 


Net Book Value 

Balance at April 1, 2008 - 1,588,059 685,811 2,273,870 

Balance at March 31, 2009 - 1,613,954 630,900 2,244,854 

Balance at March 31, 2010 $ - 1,549,759 477,831 2,027,590 

38 


ANNUAL REPORT 2010




10. Long-term debt 

2010 2009 

a) Inter-American Development Bank $ 32,634 54,993 

b) CDB (4th loan) No. 4/SFR-OR-BDS - 603,319 

c) RBTT $38.00M Bond 37,952,500 37,952,500 

d) Republic Finance and Merchant Bank Ltd. (FINCOR) - 21,178,037 

37,985,134 59,788,849 

Less: instalments due within the next 12 months 

and shown under current liabilities (22,359) (3,062,995) 

$ 37,962,775 56,725,854 

a) Inter-American Development Bank (lADB) 

This loan was taken over from the former BIDC which entered into an agreement with the IADB on March 8, 1992 for a loan of US$250,000 to partially finance 

an Embroidery Programme in Barbados. The Bank also agreed to make a non-reimbursable Technical Co-operation grant to the Corporation of US$55,000 to 

provide the technical expertise necessary for production efficiency and the quality and design of the products to be produced. 

The loan bears interest at the rate of 1% per annum payable semi-annually on November 15 and May 15 of each year on the outstanding balance and is 

repayable not later than November 15, 2011, by means of 40 semi-annual, consecutive and as far as possible equal instalments, the first of which was paid on 

May 15, 1992. 

b) Caribbean Development Bank (CDB) 

This loan was taken over from the former BIDC. On May 17, 1989, the Government of Barbados and the former Corporation entered into a loan agreement 

with the CDB for a loan of US$10,200,000 to partially finance the construction and renovation of factory shells and related works at certain industrial estates, 

at an estimated total cost of $22,997,300. 

Repayments are being made by the Government in US dollars not exceeding the equivalent of US$143,634 payable in sixty (60) equal quarterly instalments of 

blended principal and interest from December 31, 1994 to September 30, 2009. 

This loan was repaid during the year. 

The loan outstanding was bearing interest at the rate of 5.32%. 

c) RBTT $38.00M Bond 

On March 29, 2007 the Corporation entered into a US$19,000,000 non-callable fixed rate bond to assist with its capital works programme. This bond matures 

on March 29, 2022, and bears an interest rate of 6.85% per annum. Semi-annual payments of US$660,345 are made in September and March and there is a 

moratorium on the principal until year 2022; a sinking fund has been set up from April 16, 2007 to facilitate full repayment in 2022. This bond is guaranteed 

by the Government of Barbados. 

d) Republic Finance and Merchant Bank Limited 

On October 6, 2007, Newton Business Park Project Company Limited entered into a BDS$24,493,647 loan agreement with the Republic Finance and Merchant 

Bank Limited (FINCOR), Trinidad, for the construction of Newton Business Park Project - Phase 1. Under a Build, Own, Transfer (BOT) arrangement, this loan 

expires on April 6, 2027 and bears an interest rate of 7% per annum. Semi-annual instalments of blended principal and interest of BDS$1,950,056 are made 

in April and October; the interest rates on the serial bonds are 5.75%, 7.00%, 7.75% and 8.25%. This loan is guaranteed by the Government of Barbados. 

The sale of two buildings (A & B) at Newton Business Park facilitated the full repayment of the loan facility on February 2, 2010. 






11. Due to Government of Barbados 

This represents principal repayments, interest and commitment fees paid on the CDB loan by Government. (Note 10 (b)) 

2010 2009 


Paid by Government during the year: 

Interest 10,460 65,019 

Loan repayments 603,319 1,019,306 


This balance is interest free and has no fixed terms of repayment. 

12. Deferred capital grants 

Grants received 

2010 2009 

Balance - beginning of year $ 79,962,853 79,962,853 

Amortisation 

Balance - beginning of year $ 36,282,780 33,894,570 

Amortisation for the year 2,388,210 2,388,210 

Balance - end of year $ 38,670,990 36,282,780 

Net balance deferred - end of year $ 41,291,863 43,680,073 

Net balance deferred - beginning of year $ 43,680,073 46,068,283 

Deferred capital grants are amounts received from Government for capital expenditure. The grants are amortised over the useful life of the assets purchased 

with grant funds. (See note 2(h)) 

40 


ANNUAL REPORT 2010




13. Special Technical Assistance Fund (STA) 

2010 2009 


Received from Government during the year for Special 

Technical Assistance to the manufacturing sector (note 17) 4,250,000 4,000,000 

Disbursements from STA (2,784,767) (6,047,207) 



Cash at bank (note 4) $ 4,270,351 1,130,030 

Amount to be reimbursed from the Corporation’s capital account - 1,500,000 

Other – Timing differences 1,108,620 1,283,709 

$ 5,378,971 3,913,739 

14. Capital contributed by Government of Barbados 

2010 2009 

Balance at beginning and end of year $ 7,504,087 7,504,087 

The balance represents capital appropriations from Government for the purchase of land vested in the Corporation by the Government. 

15. Retail gross profit 

The amount represents the gross profit earned by the subsidiary on the sale of handicraft items. 

2010 2009 

Sales $ 284,908 671,647 

Cost of sales (216,594) (172,957) 

Retail Gross Profit $ 68,314 498,690 

16. Other revenue 

2010 2009 

Documentation fees $ 73,073 79,324 

Interest on term deposits 31,970 68,099 

Sale of craft supplies 34,041 227,131 

Rental income – Training room 16,772 27,404 

Miscellaneous 134,807 160,615 

$ 290,663 562,573 






17. Revenue grant 

2010 2009 

Revenue grant received from Government during the year $ 15,666,314 14,421,144 

Amount received from Government for Special Technical 

Assistance (note 13) 4,250,000 4,000,000 

$ 19,916,314 18,421,144 

18. Administration expenses 

2010 2009 

Staff $ 6,761,091 7,383,353 

Premises 638,928 653,920 

Office 614,752 793,911 

Operational 253,377 530,397 

Promotional 417,210 1,050,763 

Miscellaneous 27,220 292,020 

19. Pension scheme 

$ 8,712,578 10,704,364 

The Corporation has established a non-contributory pension scheme for certain employees with Sagicor Life Inc. (formerly Life of Barbados Limited). It is a 

fully insured purchased annuity pension scheme. The annual premiums paid to the insurance company are charged to operations and amounted to $387,720 

(2009 - $1,058,005), net of anniversary credits. 

The plan has been accounted for as a defined contribution plan because benefits due to employees would have been secured by the prior payment of 

premiums and the fact that the insurer has sole responsibility for paying the benefits. 

20. Approved capital expenditure 

Capital expenditure amounting to $18,500,000 for the year ending March 31, 2011 (2010 - $16,000,000) has been proposed, but is yet to be approved by 

the Directors. At the Statement of Financial Position date no contracts had been entered into in respect of this expenditure. 

21. Related party balances and transactions 

Key management personnel compensation paid during the year was as follows: 

2010 2009 

Directors $ 50,460 37,491 

Senior Management 723,369 716,631 

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ANNUAL REPORT 2010




22. Contingent liabilities and commitments 

a) A personal injury claim has been filed against the organization by a third party. The outcome of this claim is uncertain. 

(b) A writ was filed by a former employee on February 23, 1995 claiming $142,000 for wrongful dismissal. 

(c) An injunction was brought against the BIDC during 2009 by a third party. However, subsequent to year-end, withdrawal of the injunction was discussed 

by both parties. A letter was received on April 12, 2010, informing of the withdrawal of the above action. 

(d) An endorsement of writ of summons was filed on June 25, 2009 by a third party. The BIDC is awaiting the plaintiff’s statement of claim. 

During 2004 the BIDC entered into an implementation agreement with Newton Business Park Project Company Limited and Hafeez Karamath Construction 

Limited (the contractor) to develop 6.5 acres of BIDC lands at Newton, Christ Church for the purposes of a business park. Under the terms of the Agreement, 

BIDC leased the land to Newton Business Park Project Company Limited for a term of 20 years. Newton Business Park Project Company Limited shall construct 

the business park and sub-lease it back to the BIDC for a term of 20 years less one day. 

23. Operating leases 

The Corporation leased out its property held under operating leases. The future minimum lease payments under non-cancellable leases are as follows: 

2010 2009 

Less than one year $ 10,637,244 9,968,239 

Between one and five years 33,865,018 31,735,155 

More than five years - - 

$ 44,502,262 41,703,394 






24. 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: 

2010 2009 

Current $ 98,553 11,075 

1 – 180 days 1,124,937 1,770,040 

181 – 360 days 854,411 602,180 

> 360 days 5,945,027 4,621,470 

$ 8,022,928 7,004,765 

The allowance for doubtful debts in respect of tenants’ rent receivables during the year was $7,304,634 (2009 – $6,281,120). 

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ANNUAL REPORT 2010




24. 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, 2010 

Carrying Contractual Up to 1 1 to 5 Over 

Amount Cash Flows Year Years 5 Years 

Long term debt $ 37,985,134 38,022,359 22,359 - 38,000,000 

Accounts payable and accrued liabilities 7,770,067 7,770,067 7,770,067 - - 

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 - - 

Market risk 

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Corporation’s income or 

the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable 

parameters, while optimising the return. 

(i) 

Currency risk 

The Corporation is exposed to currency risk on purchases that are denominated in a currency other than the functional currency of the Corporation. 

(ii) Interest rate risk 

The Corporation faces some risks associated with the effects of fluctuations in the levels of interest rates on certain financial assets and liabilities. The 

interest rates and terms of repayment of long-term debt are disclosed in note 10 to the financial statements, and are fixed for the most part. 

(iii) Capital management 

The Board’s policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the 

business. 

There were no changes to the Corporation’s approach to capital management during the year. 

(iv) Fair values 

The fair value of cash and cash equivalents, accounts receivables, investments, staff loans, accounts payable and accrued liabilities and long term debt 

are determined not to be materially different from their carrying value due to their short term nature. Long-term debt is not materially different from its 

carrying amounts. 

Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates 

are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in 

assumptions could significantly affect the estimates. All non-financial instruments such as inventory are excluded from fair value disclosure. Thus the total 

fair value amounts cannot be aggregated to determine the underlying economic value of the Company. 

The basis for determining fair values is disclosed in note 3. 






24. Financial risk management, continued 

The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows: 

2010 2009 

Carrying Fair Carrying Fair 

Amount Value Amount Value 

Cash and cash equivalents $ 10,995,056 10,995,056 4,020,416 4,020,416 

Accounts receivable 4,955,766 4,955,766 2,135,687 2,135,687 

Investments 15,640 15,640 14,000 14,000 

Staff loans 459,676 459,676 566,862 566,862 

Bank overdraft - - (1,657,005) (1,657,005) 

Accounts payable and accrued liabilities (7,770,066) (7,770,066) (7,570,195) (7,570,195) 

Long term debt (37,985,134) (37,985,134) (59,788,848) (59,788,848) 

$ (29,329,062) (29,329,062) (62,279,083) (62,279,083) 

25. Taxation 

Under the Barbados Investment and Development Corporation Act, the Corporation is exempt from payment of all taxes on income. 

The Corporation’s subsidiary (Islandcrafts (Barbados) Inc.) is subject to corporation tax at a rate of 25%. Cumulative tax losses at March 31, 2010 were 

estimated at $ 764,620 (2009 – $515,158). These losses have to date neither been agreed or disputed by the Department of Inland Revenue. 

A deferred tax asset arising from tax losses has not been recognised in these financial statements. As the subsidiary does not have a history of taxable profits, 

it has not been deemed probable that future taxable profits will be available against which any tax assets can be utilised. 

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ANNUAL REPORT 2010

Notes to Consolidated Financial Statements - Barbados Investment ...

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