EPL 2017 Annual Report

ANNUAL REPORT 2017

FACING THE FUTURE – TOGETHER

CONTENTS

04

Vision, Mission, Va l u e s

P ra ye r

06

08

13

15

23

25

54

A n E P L Ye a r i n P h o to s

Au d i te d Financials for E P L P ro p e r t i e s L i m i te d 2 0 17

M i n u te s o f Fo u r te e n t h Annual G e n e ra l Meeting

05

T h e B o a rd o f D i re c to r s

N o t i ce o f F i fte e n t h Annual G e n e ra l Meeting

C h a i r m a n’s Re p o r t

2 0 17 Re s o l u t i o n s

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

04

VISION, MISSION, VALUES

our vision To be an elite provider of Property Management, Janitorial, Events Management and Health & Fitness services within the Co-operative sector, Financial Institutions, Government Departments and beyond; through leveraging our competency and experience in these areas, and by providing superior product/service offerings.

our values • • • •

our mission To optimize the profitability of all business units, while focusing on inspiring employees to strive for greatness, while upholding the highest principles of ethical behaviour and transparency in all areas of operations.

Honesty Integrity Team Work Transparency In All Undertakings • Ethical Behaviour • Respect For All • Superior Customer Service

05 THE PRAYER OF ST. FRANCIS OF ASSISI LORD, MAKE ME AN INSTRUMENT OF THY PEACE; WHERE THERE IS HATRED, LET ME SOW LOVE, WHERE THERE IS INJURY, PARDON, WHERE THERE IS DOUBT, FAITH. WHERE THERE IS DESPAIR, HOPE. WHERE THERE IS DARKNESS, LIGHT AND WHERE THERE IS SADNESS, JOY. O DIVINE MASTER, GRANT THAT I MAY NOT SO MUCH SEEK TO BE CONSOLED AS TO CONSOLE, TO BE UNDERSTOOD AS TO UNDERSTAND, TO BE LOVED AS TO LOVE; FOR IT IS IN GIVING THAT WE RECEIVE, IT IS IN PARDONING THAT WE ARE PARDONED, AND IT IS IN DYING THAT WE ARE BORN TO ETERNAL LIFE. AMEN

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

06

NOTICE OF FIFTEENTH ANNUAL GENERAL MEETING July 6th, 2018

N O T I C E

NOTICE TO THE SHAREHOLDER: FIFTEENTH ANNUAL GENERAL MEETING NOTICE is hereby given that the Fifteenth Annual General Meeting of the Shareholder of EPL Properties Ltd. (The Company) would be held at the Eric Williams, Multi-Purpose

Facility, La Joya, Eastern Main Road, St. Joseph at 5.00 pm on Thursday 26th July 2018.

1.

Commencement/ Opening Prayer

2.

Reading of the Notice of the Fifteenth Annual General Meeting

3.

Welcome and Introductions

4.

Confirmation of the Minutes of the Fourteenth Annual General Meeting held on Monday 28th August 2017

5.

Matters Arising from the Minutes

6.

Chairman’s Report

7.

To receive and consider the Audited Financial Statements of the Company for the financial year ended December 31st, 2017

8.

To appoint Directors

9.

To declare a dividend for the financial year ended December 31 st2017

10.

To appoint an External Auditor of the company for the Financial year ending December 31, 2018

11.

To transact any other business

12.

Adjournment

By order of The Board

Gloria Rolingson Company Secretary

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

08

MINUTES OF THE FOURTEENTH ANNUAL GENERAL MEETING

Held On Wednesday, August 30, 2017 at The Eric Williams MultiPurpose Facility, La Joya, Eastern Main Road, St. Joseph

PRESENT:

Ms. Janelle Benjamin Chairman, EPL Properties Limited Mr. Wayne Estrada Vice Chairman/President of ECU Mrs. Gloria Rolingson Director/ Corporate Secretary Mr. Don Isaac Director Mr. Brent Hewitt-Borde Independent Director Mr. Darnley Faria Chief Operating Officer

BY INVITATION:

Mr. Conrad Enill Group Chief Executive Officer Ms. Helen Bernard Shareholder’s Representative Mrs. Francisca Lassalle ECU Director Mrs. Sherry Ann Joseph Group Financial Comptroller Mr. Dwayne Rodriguez-Seijas External Auditor, PricewaterhouseCoopers Miss Krystle George PricewaterhouseCoopers Mr. Kerry Benjamin PricewaterhouseCoopers

ABSENT/EXCUSED:

Mrs. Avyann Ferguson-Awai Independent Director Mr. Don Isaac Director Mr. Jameel Mohammed Independent Director Miss Ayana St. Louis Manager, Finance & Accounting

1.0 COMMENCEMENT/PRAYER 1.1

The Chairman, Ms. Janelle Benjamin, called the meeting to order at 5.15 p.m. The National Anthem was played on the steelpan, following which those present recited the St. Francis of Assisi Prayer.

1.2

She warmly welcomed those in attendance at the Fourteenth Annual General Meeting of EPL Properties Limited. She then informed the meeting that the Manager, Finance and Accounting and Independent Director Jameel Mohammed were excused because they were out of the country and Directors Avyann Ferguson-Awai and Don Isaac could not attend the meeting.

2.0 NOTICE OF FOURTEENTH ANNUAL GENERAL MEETING 2.1

The Corporate Secretary, Director Gloria Rolingson, advised that EPL Properties Limited, and the shareholder, Eastern Credit Union, agreed to the re-scheduling of the Annual General Meeting from Monday, August 28, 2017 to Wednesday, August 30, 2017. The Shareholder Representative and the External Auditors confirmed their agreement to the change of date for the meeting.

Director Rolingson then read the Notice of the Fourteenth Annual General Meeting.

3.0 ACKNOWLEDGEMENT OF GUESTS 3.1

The Chairman acknowledged the presence of the specially invited guests.

4.0 MINUTES OF 13TH ANNUAL GENERAL MEETING 4.1

On a motion of Mr. Wayne Estrada and seconded by Ms. Helen Bernard, the Minutes of the 13th Annual General Meeting held on Monday, May 16, 2016 were taken as read and considered.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

MINUTES OF 14TH AGM (CONTINUED) 4.2 Confirmation

The Minutes were confirmed on a motion of Director Brent Hewitt-Borde and seconded by Mr. Darius Figuera.

5.0 MATTERS ARISING 5.1

The Chief Operating Officer gave an update on the matters arising out of the Minutes as follows:

HVAC Maintenance and Service Contract: Negotiations on repair and

renovation works are still taking

place with the one local service provider

of that particular chiller system.

Painting of External Wall of ECU Branches: Some Branches have been

completed and the others will be

completed during the course of this year.

EPL – La Joya New PABX System: The new System has been installed and is func tioning at EPL Properties Limited.

The company has relocated from Artisan Units 7, 8 and 9 to Artisan Unit 12.

La Joya Swimming Pool Bathroom Upgrade: Some bathrooms have been

upgraded done in the recent past,

however, there continues to

be some challenges.

La Joya Sporting Complex – Gym Weight Room: Some repairs to the Gym Weight Room have been completed. Some new equipment has also been purchased following the renovation upgrade works.

Retaining Wall - La Joya West: That

project has been completed and is functioning.

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Upgrade Works – Loans Department, La Joya: Upgrade works to the Loans

Department have been completed recently.

6.0 CHAIRMAN’S REPORT 6.1

Ms. Janelle Benjamin presented the Chairman’s Report.

6.2

She sincerely thanked the senior management of EPL Properties Limited as well as Eastern Credit Union for their contribution during the period under review.

6.3

•

The Chairman reported that the company refocused on its Vision and the following key actions were embarked upon: Development of a shared understanding of the vision of EPL, including its role within the Eastern Credit Union family.

• Identification of key outcomes for EPL in the next five (5) years with particular focus on deliverables of ‘low hanging fruits’.

• Enabling action that would ensure that EPL is an objective focused organization which resulted in the following: • Strengthening of Internal Systems and Controls.

• Developing a suite of policies thereby improving and/or enhancing the governance structures.

• Improving processes to allow for greater efficiency.

• Expanding the Suite of Product Offerings and Diversifying Revenue Stream.

• Developing and/or enhancing human resources to ensure the organization benefitted from people capable of high quality delivery.

• Development of inspirational leadership.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

10 6.4

MINUTES OF 14TH AGM (CONTINUED)

The action items informed several of the initiatives pursued in the second half of 2016 and the strategic goals contained in the Board approved Strategic Plan 2017-2019 which focus on five (5) key objectives: 1. Optimizing the organizational structure 2. Improving the policy framework 3. Developing New Business Opportunities 4. Developing Human Capital 5. Improving the Profitability of the business units

6.5

Some highlights during the period under review were: • Marginal increase in Assets from $110.2 million to $110.4 million • Net profit before tax of $1.485 million • Income of $15.1 million • 5.7% increase in expenditure from $12.9 million to $13.6 million • Recruitment of a Human Resource Generalist and a Facilities Manager • Implementation of Staff Pension Plan on May 28, 2016 • Recommendation to convert the Arima Banquet Hall to Offices – handover on Friday, September 1st, 2017.

• Establishment of a Custodial Unit • Launch of a new website in July 2016 • Review of the MOU between EPL and ECU.

7.0 AUDITORS’ REPORT/ FINANCIALS Auditors’ Report Mr. Dwayne Rodriguez-Seijas, representative of PwC, presented the Auditors’ Report. The Chief Operating Officer, Mr. Darnley Faria, apologized for the absence of the Manager, Finance and Accounting and then read the Statement of Management’s Responsibilities.

Financials The Chief Operating Officer, Mr. Darnley Faria presented the Financials for the year ended December 31, 2016.

Ms. Helen Bernard enquired what accounted for the increase in Miscellaneous Administrative Expenses from $14,693 in 2015 to $335,856 in 2016. The Chief Operating Officer was unable to offer an explanation, so it was noted that the information could be provided in due course because the Manager, Finance and Accounting was not present at the meeting.

8.0 RESOLUTIONS 8.1

Audited Financial Statement and Chairman’s Report The following Resolution moved by Ms. Janelle Benjamin and seconded by ECU Director Stephanie Benjamin was unanimously accepted: Be it resolved that the Audited Financial Statements and Chairman’s Report for the year ended December 31, 2016 be hereby approved and adopted.

8.2 Dividend

The following Resolution moved by Ms.

Janelle Benjamin and seconded

by Director Wayne Estrada was

unanimously accepted:

Be it resolved that a dividend of fifty

thousand dollars ($50,000.00)

be paid to the Shareholder, based on the

financial returns of EPL Properties Limited

as at December 31, 2016.

8.3 Appointment of Auditors and

Authorization of Directors to set Remuneration

The following Resolution moved by Ms.

Janelle Benjamin and seconded

by Director Wayne Estrada was

unanimously accepted:

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

MINUTES OF 14TH AGM (CONTINUED)

Be it resolved that the firm PwC be and are hereby appointed Auditors until the next Annual General Meeting of the Company and that their remuneration be fixed by the Directors.

8.4 Appointment of Directors of the

Company in accordance with the

Companies Act 1995 8.4.1 The following Resolution moved by Ms.

Helen Bernard and seconded by Director

Wayne Estrada was unanimously accepted:

Be it resolved that:

Mr. Brent Hewitt-Borde be and is hereby

re-appointed as an Independent Director

of the Company for the term of office

beginning August 30th, 2017 and

expiring at the Fifteenth Annual General

Meeting to be held in 2018.

8.4.2

The following Resolution moved by Ms. Helen Bernard and seconded by Director Gloria Rolingson was unanimously accepted: Be it resolved that: Mr. Jameel Mohammed be and is hereby appointed as an Independent Director of the Company for the term of office beginning August 30th 2017 and expiring at the Fifteenth Annual General Meeting to be held in 2018.

8.4.3 The following Resolution moved by Ms.

Helen Bernard and seconded by Director

Brent Hewitt-Borde was unanimously accepted:

Be it resolved that:

Mrs. Gloria Rolingson be and is hereby

appointed as an Independent Director of

the Company for the term of office

beginning August 30th, 2017 and expiring

at the Fifteenth Annual General Meeting

to be held in 2018.

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8.4.3

The following Resolution moved by Ms. Helen Bernard and seconded by Director Janelle Benjamin was unanimously accepted: Be it resolved that: Mr. Wayne Estrada be and is hereby re-appointed as a Director of the Company for the term of office beginning August 30th, 2017 and expiring at the Fifteenth Annual General Meeting to be held in 2018.

8.4.4

The following Resolution moved by Ms. Helen Bernard and seconded by Director Wayne Estrada was unanimously accepted: Be it resolved that: Ms. Janelle Benjamin be and is hereby re-appointed as a Director of the Company for the term of office beginning August 30th, 2017 and expiring at the Fifteenth Annual General Meeting to be held in 2018.

8.4.5 The following Resolution moved by Ms.

Helen Bernard and seconded by ECU

Director Darius Figuera was unanimously accepted:

Be it resolved that:

Mr. Marlon Mark Phillips be and is hereby

appointed as a Director of the Company

for the term of office beginning August

30th, 2017 and expiring at the Fifteenth

Annual General Meeting to be held in 2018.

8.4.6

The following Resolution moved by Ms. Helen Bernard and seconded by ECU Director Francisca Lassalle was unani- mously accepted: Be it resolved that: Mr. Ronald Bobb be and is hereby appointed as a Director of the Company for the term of office beginning August 30th, 2017 and expiring at the Fifteenth Annual General Meeting to be held in 2018.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

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MINUTES OF 14TH AGM (CONTINUED)

8.5 Appointment of Shareholder’s Representative

The following Resolution moved by

Ms. Helen Bernard and seconded by

Director Stephanie Benjamin was unani mously accepted:

Be it resolved that:

Mr. Darius Figuera be appointed

Shareholder’s Representative for the

period beginning August 30th, 2017 and

expiring at the Fifteenth Annual General

Meeting to be held in 2018.

8.6

Ms. Helen Bernard thanked the Management of EPL Properties Limited and Eastern Credit Union for the opportunity to serve as the Shareholder Representative of EPL Properties Limited.

She indicated that it was a pleasure working with the Management and employees of EPL Properties Limited.

She extended best wishes to EPL Properties Limited going forward in ensuring that Eastern Credit Union’s needs are fulfilled.

8.7

On behalf of EPL Properties Limited, Director Janelle Benjamin thanked Ms. Bernard for her services during the year.

9.0 OTHER BUSINESS 9.1

The Chairman thanked the guests from the parent credit union for their attendance and welcomed the new Directors and Shareholder’s Representative appointed for the 2017/2018 term of office.

9.2

On the invitation of the Chairman, the President of Eastern Credit Union, Mr. Wayne Estrada, addressed the gathering.

He noted that there were several opportunities for EPL Properties Limited to seize. There were several projects to be executed by the subsidiary, including

Eastern Credit Union’s signature project, Las Viviendas, which he hoped will be up and running before its next Annual General Meeting.

9.3

Mr. Estrada thanked everyone for their stewardship during the past year amidst the challenging situation in which the company operated. He then thanked the auditors for their service.

9.4

In closing, the Chairman thanked everyone who contributed to the success of the Fourteenth Annual General Meeting and wished them a safe journey home. Participants were then invited to partake of refreshments.

10.0 ADJOURNMENT 10.1 There being no further business to discuss,

the meeting was ended at 6:35p.m.

Gloria Rolingson (Mrs.) CORPORATE SECRETARY

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

BOARD OF DIRECTORS

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Mr. Wayne Estrada Chairman

Ms. Janelle Benjamin Vice-Chairman

Mrs. Gloria Rolingson Corporate Secretary

Mr. Ronald Bobb Director

Mr. Marlon Phillips Director

Mr. Brent Hewitt-Borde Director (Independent)

Mr. Jameel Mohammed Director (Independent)

Mr. Darius Figuera Shareholder Representative

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

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MANAGEMENT

Mr. Darnley Faria Chief Operating Officer

Ms. Ayana St. Louis Manager – Finance and Accounting

Ms. Acacia de Verteuil Manager – Business Development and Marketing

Mr. Garvin Toussaint Facilities Manager

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

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CHAIRMAN’S REPORT 1. INTRODUCTION On behalf of the Board of Directors of EPL Properties Limited (EPL), I am pleased to provide this report to our shareholder, Eastern Credit Union Co-operative Society Ltd, on our stewardship for the period August 2017 to July 2018. This is inclusive of the operational aspects of the company’s performance along with the financial results for the year ended December 31st 2017.

These results were achieved mainly through the untiring efforts of a dedicated executive management team and the support of a motivated employees who made invaluable contributions in their various units and departments.

The external and internal environments within which we delivered our mandate, were far from ideal, but we were able to overcome some of the several challenges which emerged during the period and move steadily towards the targets set for the year. We also sought to take advantage of the opportunities that arose to grow and expand our operations and our prospects.

Our financial results in most areas were positive during the review period and the details provided in our management reports enabled us to identify areas that were underperforming. We endeavoured to take corrective action in all

areas of inefficiency with the aim of achieving the dividend targets set by our parent for the year. Although we did not meet all our expectations in the year ending December 2017, there was considerable improvement during the first six (6) months of 2018, as we managed to position the company on a strong platform to achieve the targets set for the current financial year.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

16 CHAIRMAN’S REPORT (CONTINUED) 2. BOARD OF DIRECTORS At the Fourteenth Annual General Meeting held on August 30th 2017, the following persons were appointed to serve as Directors and are now outgoing:

Representatives of the Executive Management Team also served on these Committees depending on their areas of responsibility.

3. EXECUTIVE MANAGEMENT The members of the Executive Management team of EPL are as follows:

Mr. Wayne Estrada

Chairman

Ms. Janelle Benjamin

Vice-Chairman

Mr. Ronald Bobb

Director

Mr. Darnley Faria

Chief Operating Officer

Mr. Marlon Mark Phillips

Director

Ms. Ayana St. Louis

Mrs. Gloria Rolingson

Independent Director

Manager, Finance and Accounting

Ms. Acacia de Verteuil

Mr. Brent Hewitt-Borde

Independent Director

Mr. Jameel Mohammed

Independent Director

Manager, Business Development and Marketing

Mr. Garvin Toussaint

Facilities Manager

Mr. Darius Figuera, was appointed as the Shareholder Representative and was present at most Board meetings.

Action is currently in train to fill the vacant position of Human Resource Generalist, a key position in the establishment.

At its first meeting the Board agreed to appoint Director Gloria Rolingson to serve as Corporate Secretary in accordance with its By Laws. The following assignments were also made to the Standing Committees of the Board:

The team members were in constant communication with the Group Executive Management team to ensure synergistic approaches to implementing the strategic goals of the organisation.

I wish to acknowledge the support provided in this regard by the following officers:

ANCILLARY SERVICES Janelle Benjamin (Chairman), Wayne Estrada, Gloria Rolingson.

AUDIT AND RISK MANAGEMENT Gloria Rolingson (Chairman), Ronald Bobb, Brent Hewitt-Borde, Marlon Phillips.

GOVERNANCE AND HUMAN RESOURCES Wayne Estrada (Chairman), Janelle Benjamin, Jameel Mohammed, Marlon Phillips.

PROJECTS AND TENDERS Brent Hewitt-Borde (Chairman), Janelle Benjamin, Ronald Bobb, Wayne Estrada, Jameel Mohammed.

Mr. Conrad Enill

Group Chief Executive Officer

Mr. Steve Albino

Deputy Chief Executive Officer

Mrs. Sherry Ann Mc Donald-Joseph

Group Financial Comptroller

Mrs. Jessell Moraldo-Cumberbatch

Group Executive Manager, Human Resources

Mr. Kester Regis

Group Executive Manager, Marketing, Research and Business Development

Mr. Cecil Gittens

Security Co-ordinator

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

CHAIRMAN’S REPORT (CONTINUED) 4. THE EXTERNAL ENVIRONMENT Official statistics indicate that there was some improvement in the performance of the economy beginning during the last quarter of 2017 and continuing into the first half of 2018, with the Ministry of Finance in its Mid-year Budget Review 2018 estimating a growth forecast of 2.0 percent in 2018. This improvement is buoyed by the upward trend in global energy prices and by increased domestic production of oil and gas. By contrast, sluggish performance characterized all major non-energy sectors including the distribution, the finance, insurance and real estate, the construction and manufacturing sectors. Similar trends were observed in transport and electricity and water.

Figures published by the Central Statistical Office show that inflation was relatively low during the year falling to 1.2 percent in September 2017 from 3.6 percent in January of that year. However, this was reversed towards the end of 2017, influenced mainly by deteriorating weather conditions which resulted in higher prices for domestic agricultural supplies.

The unemployment rate continued to trend upwards, averaging 4.9 percent in the first half of 2017, with the highest rates being observed in the construction and energy sectors.

The negative impact of constrained Government budgets and the resulting lower spending on goods and services, as well as reduced transfers and subsidies, posed considerable hardship for lower and middle-income groups in the society. These trends along with other social ills, including the worrisome trend of increased criminal activity all had implications for the operations of EPL Properties Ltd. It is important to note that the operations for the period under review were planned in accordance with the direction established for

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the company in the approved Strategic Plan 2017-2019 as follows: a. Optimizing the Organizational Structure b. Improving the Policy Framework c. Developing New Business Opportunities d. Developing Human Capital e. Improving the Profitability of the business units.

5.FINANCIAL PERFORMANCE The company’s asset base grew by 2.7 percent from $110.4 million in 2016 to $113.4 million in 2017, due mainly to an increase in current assets during the period. Short term investments declined by 12.7 percent as holdings fell from $11.0 million in 2016 to $9.7 million in 2017.

However, there were increases in cash in hand and at the bank and in accounts receivable and prepayments.

With regard to liabilities and equity, the value of shareholder’s equity increased marginally by 1.3 percent at the end of 2017, to a value of $82.0 million, reflecting an increase of $1.1 million (5.3 percent) in retained earnings.

EPL ‘s total revenue rose from $15.1 million in 2016 to $18.0 million in 2017, an increase of 19.2 percent. Total expenditure also increased by 18.4 percent over the same period while net profit before taxation grew by 29.2 percent to $1.9 million. After accounting for taxation and other comprehensive income and expenditure, the total comprehensive income of the company quadrupled from $0.3 million in 2016 to $1.2 million in 2017.

Unaudited management accounts prepared for the first six months of 2018 indicate that the company’s performance has improved during the year with its revenue and surplus targets being surpassed. Revenue amounted to $8.2 million compared with a budget of $8.0 million, while expenses totalled $6.5 million as against

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

18 CHAIRMAN’S REPORT (CONTINUED) a budget of $6.8 million. Surplus for the period was $1.7 million compared with a budget of $1.2 million.

6. H UMAN RESOURCE DEVELOPMENT a. Training As articulated in the Strategic Plan 2017-2019, a major goal is optimizing the human resource capability of the organisation. This requires that all employees are competent in performing the duties and responsibilities entrusted to them.

In pursuit of this objective a comprehensive programme of training has been developed to afford employees the opportunity to improve their technical and management skills.

With the support of our parent credit union, all employees can now access Continuous Professional Development (CPD) training, which are training modules that could be pursued online at the level and pace desired by the individual employee. Management is developing an incentive programme designed to encourage employees to make full use of this training facility.

Additionally, as a follow-up to customer service training provided to employees in 2017, a survey was conducted to assess the impact of the training on the quality of customer service delivery. The results were positive and provided some insight into areas of focus in going forward.

In fulfilment of its statutory obligations, compliance training in the Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Regulations was undertaken by the company in September 2017. The entire executive management team and Board of Directors were exposed to this training.

b. Employee Relations The annual team building day was held in May 2018. There was intense participation by employees and a range of activities geared towards building camaraderie throughout the organisation. This continues to be an important and highly anticipated event in our annual calendar. c. Job Evaluation Pursuant to the Board’s review of the Job Evaluation report prepared earlier in 2017, it was agreed that a comprehensive review of the job descriptions would be undertaken to ensure that they are in sync with the duties and responsibilities ascribed to those positions. This exercise is ongoing.

7. AUDIT AND RISK MANAGEMENT Monthly management reports on the status of statutory payments and filings were reviewed by the Audit and Risk committee and submitted to the Board of Directors for acceptance.

The Committee also reviewed the internal audit report submitted by the firm of consultants, Maharaj, Mohammed and Company, contracted in September 2017 to provide internal audit services to the Board. Management has undertaken to treat with the deficiencies identified in each report submitted..

PricewaterhouseCoopers(PwC) the firm contracted to conduct the AML/ CFT audits for the years 2015 and 2016 completed the assignment in May 2018 and this is to be submitted to the regulatory authorities as required.

Arrangements for the 2017 audit are currently being finalized.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

CHAIRMAN’S REPORT (CONTINUED) 8. GOVERNANCE

a. Review of Charters and Policies Following its comprehensive review of the existing polices and charters of the organization, the Governance and Human Resources Committee recommended changes the Board.

The Committee also considered several human resource policies submitted by management for Board approval.

In August 2017 the Board approved several employment policies as recommended by management including: • Staff Classification • Recruitment and Selection • Staff Transfer • Probationary Period for New Staff • Personnel Files • Promotions • Acting and Responsibility Allowance In April 2018, deliberated upon and approved revisions to the charters which guide the operations of the Board and its Standing Committees, as well as several human resource policies.

These policies include: • Physically challenged employees • End of Employment Term • Performance Management Planning and Review • Confidentiality • Health Related Issues • Employee Injury on the Job • Education Assistance The approval of these policies is a major step towards ensuring that EPL Properties Ltd. implements best practices in the workplace.

9. ANCILLARY SERVICES a. Custodial Unit Based on its track record to date, the custodial unit established in 2016 has the potential to provide substantial earnings for the company.

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Thus far, it has provided services solely within the group, but is now vigorously pursuing opportunities in other institutions (inclusive of Government and private sector agencies), by tendering for advertised services. Several organisations, including those in the credit union movement have also been targeted as prospective clients.

b. Events management The Events Management Unit has performed below expectations in the period under review despite embarking on several initiatives intended to increase its earnings potential. These include: • The Annual Easter Bonnet Parade • Quarterly Buy Local Market (formerly the Green Market) • Annual Christmas Village • Annual Bingo (held on Corpus Christi holiday) We also partnered with the Super Nova community group for an event entitled “Come Let’s Dance” but his was not as successful as anticipated.

Several of these events are still in the early stages of their life cycle but appear to be good prospects for sustainability. c. Sporting Complex The fitness industry in which our Sporting Complex operates is somewhat saturated and highly competitive. This has constrained its ability to meet its targets for membership growth and income during the review period.

Management reports suggest that the fortunes of our Sporting Complex are inextricably bound to our ability to attract and retain our gym membership by building a strong brand and creating a new and unique experience.

Accordingly, our growth strategies include the marketing of fitness packages that promote nutritional, exercise and motivational programmes targeted to different demographic groups.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

20 CHAIRMAN’S REPORT (CONTINUED) Among the more popular events run by the complex are the following: • Annual Easter Vacation Camps and Tropicamps • Annual Fitness and Health Week • Annual Road Race (co-hosted with Eastern Credit Union)

10. SOCIAL MEDIA We continue to increase our social media presence as a means of building our brand awareness, promoting our products and services and communicating more effectively with our customers and stakeholders. The records show that there is an increased awareness of the EPL Properties brand especially regarding our events management and sporting complex activities. To date, we maintain an active website along with Facebook, Instagram and LinkedIn accounts which expand our reach to a broad demographic of existing and potential customers.

11. PROJECTS AND TENDERS The Projects and Tenders Committee maintained oversight of several projects which were being managed or directly implemented by management during the period under review as well as several projects which are earmarked for commencement during the second half of 2018.

These include the following: a. Conversion of the Arima Banquet Hall to Offices The conversion of the former Arima Banquet Hall to offices commenced in February 2017 and was completed in September 2017. It has since been leased to the parent for housing its Accounts department. This arrangement has impacted favourably in our earnings from this location.

b. Renovation of Artisan Units The renovations to Artisan Units 7, 8, 9 and 10

were completed during the period March to October 2017 and the space is now occupied by the parent as administrative offices.

c. The Gazebo The Gazebo, which is an outdoor area located at the north-eastern end of the EPL offices, has been developed and landscaped and hired out to the public for special events. The first such event was held in November 2017 and efforts are continuing to advertise the space more heavily. d. Parking Space As we seek to expand our revenue base, particularly about events and the sporting complex activities, there is a major concern about the shortage of parking accommodation. This must be addressed in collaboration with our parent which also has a strong demand for parking space for staff and customers. In this regard, we have conducted negotiations with the owners of properties in the immediate vicinity of the La Joya complex, regarding arrangements for lease or acquisition. However, thus far we have only been able to successfully negotiate a lease for a parcel of land in Narine Trace South, which has the potential to provide thirty-five additional parking spaces.

e. Management of ECU Projects During the review period, EPL played a major advisory role in the management of projects being undertaken Eastern Credit Union. These projects included the assessment visits to properties identified for relocation of the Chaguanas and Sangre Grande Branches as well as major construction projects being considered for implementation. EPL was also responsible for undertaking some of its own projects several of which involved infrastructural development.

In summary these projects are as follows: i. Refurbishment of the third floor of the La Joya Administrative Complex ii. Construction and outfitting of the basement and ground floors of the building to

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

21

CHAIRMAN’S REPORT (CONTINUED) accommodate the relocation of the ECU Tobago branch. iii. Renovation of Artisan Units to provide office space for ECU iv. Renovation of the Conference Room at La Joya to accommodate offices v. Renovation of the Arima Banquet hall to provide office accommodation for ECU vi. Removal of the island in the La Joya East car park to provide for additional parking spaces vii. Installation of a Ramp at the ECU Port of Spain Branch viii. Upgrade of the Fire Suppression System – La Joya ix.Conversion of Apartment 7 to an Executive Suite x. Replacement of the Generator at La Joya xi. Widening of the Pedestrian Bridge to the La Joya East car park xii. Renovation of the St. Joseph Branch located on the ground floor of the Administrative Building xiii. Las Viviendas property located in Valencia Our successful involvement in these projects has demonstrated that we have the technical capacity to manage, and in some cases implement construction projects. We see this as an opportunity to diversify our income by offering our services to the ECU membership base and to the wider community.

13. MEMORANDUM OF UNDERSTANDING (MOU) Several meetings of the Committee appointed to consider revisions to the Memorandum of Understanding between EPL and ECU were held during the review period. However, this report is yet to be finalized. It is expected that this exercise which would also involve the preparation of Service Level Agreements will be concluded before end of 2019.

1 4. ATTENDANCE AT BOARD MEETINGS The following table summarises the attendance of Board members at the monthly and special board meetings held during the period May 2016 to July 2017: ATTENDANCE AT BOARD MEETINGS (August 2017-May 2018) Statutory Meetings

Special Meetings

Present Excused

Present Excused

Wayne Estrada

10

0

4

0

Janelle Benjamin

10

0

4

0

Gloria Rolingson

10

0

4

0

8

2

4

0

12. SECURITY

Marlon Mark Phillips

With the increasing threat of crime, special attention is paid to the security arrangements in force at La Joya. It must be noted that while the credit union has a major presence at this location, the facilities provided by EPL include the hosting of events, sporting activities, residential and parking services all of which demand a high standard of security and vigilance. This is an area in which we need full cooperation of the Group security services to ensure that we afford the highest level of security to our stakeholders, while optimizing the resources available to us.

Ronald Bobb

10

0

4

0

Brent HewittBorde

10

0

4

0

8

2

3

1

Jameel Mohammed

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

22 CHAIRMAN’S REPORT (CONTINUED) 15. CONCLUSION This Board of Directors was pleased to be of service to our shareholder during the period under review, and by extension to the membership of Eastern Credit Union and the wider populace. We are determined in our resolve to provide our shareholder with a healthy return on its investment. Our current menu of services has the capacity to enable the Eastern Credit Union Group, of which we are an important component, to become a highly branded “one stop shop” responding to the financial, health and wellness, property development and social needs of its membership and customers.

While our financial performance in 2017 fell short of expectations, we believe that based on the unaudited results for the year 2018 to date, we are poised to achieve and even exceed the targets set for the year. During the period under review we have made considerable progress in the areas for which we are directly responsible, and it is hoped that this momentum would continue under our successors.

Once again, we wish to thank our shareholder for affording us the opportunity to serve on the Board of Directors at this very exciting but challenging time in the organization’s history.

We also thank the executive management team and our hardworking employees for their enthusiasm, energy, professionalism and support during the review period.

It therefore gives me great pleasure, on behalf of the Board of Directors, to submit this report to this Annual General Meeting for its consideration and acceptance.

Wayne Estrada CHAIRMAN

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

AN EPL YEAR IN PHOTOS

23

1. A team that plays together, stays together. 2017 Christmas Luncheon. 2. Words of encouragement to the Team, from our Chairman, Mr. Wayne Estrada at the 2017 Christmas Luncheon. 3. The EPL team after a successful day at the EPL Staff retreat in May 2018. 4. Our Vice Chairman, Janelle Benjamin, leading the pack at the EPL Staff retreat. 5. Our Management Team during the ECU Orientation 2018.

1.

3.

2.

4.

5.

Un co n s o l i d a te d Financial St a te m e n t s 31 December 2017

26

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

STATEMENT OF MANAGEMENT’S RESPONSIBILITIES Management is responsible for the following: • Preparing and fairly presenting the accompanying unconsolidated financial statements of EPL Properties Limited (the Company), which comprise the unconsolidated statement of financial position as at 31 December 2017 and the unconsolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information;

• Ensuring that the Company keeps proper accounting records;

• Selecting appropriate accounting policies and applying them in a consistent manner;

• Implementing, monitoring and evaluating the system of internal control that assures security of the Company’s assets, detection/prevention of fraud, and the achievement of Company operational efficiencies;

• Ensuring that the system of internal control operated effectively during the reporting period;

• Producing reliable financial reporting that comply with laws and regulations, including the Companies Act; and

• Using reasonable and prudent judgment in the determination of estimates.

In preparing these audited unconsolidated financial statements, management utilized the International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances.

Nothing has come to the attention of management to indicate that the Company will not remain a going concern for the next twelve months from the reporting date; or up to the date the accompanying unconsolidated financial statements have been authorised for issue, if later.

Management affirms that it has carried out its responsibilities as outlined above.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

27

INDEPENDENT AUDITOR’S REPORT To the shareholder of EPL Properties Limited Report on the audit of the unconsolidated financial statements Our opinion In our opinion the unconsolidated financial statements present fairly, in all material respects the financial position of EPL Properties Limited (the Company) as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

What we have audited The Company’s unconsolidated financial statements (the financial statements) comprise:

• the unconsolidated statement of financial position as at 31 December 2017;

• the unconsolidated statement of comprehensive income for the year then ended;

• the unconsolidated statement of changes in equity for the year then ended;

• the unconsolidated statement of cash flows for the year then ended; and

• the notes to the unconsolidated financial statements, which include a summary of

significant accounting policies.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the unconsolidated financial statements section of our report.

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

Independence We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

Responsibilities of management and those charged with governance for the unconsolidated financial statements Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

28

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

INDEPENDENT AUDITOR’S REPORT (CONTINUED) Auditor’s responsibilities for the audit of the unconsolidated financial statements Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

20 June 2018 Port of Spain Trinidad, West Indies

29

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Expressed in Trinidad and Tobago Dollars)

As at 31 December Notes

2017 $

2016 $

5 6 7 8

724,512 5,786,983 1,840,083 93,193,446 101,545,024

791,982 2,772,384 1,252,948 92,079,647 96,896,961

9 10 11

1,008,695 9,696,535 1,104,845 11,810,075 113,355,099

820,483 11,902,217 808,048 13,530,748 110,427,709

12 13

59,705,976 226,410 22,115,456 82,047,842

59,705,976 293,880 20,994,867 80,994,723

6 14 15

3,833,132 19,469,648 4,751,730 28,054,510

3,017,356 20,518,012 4,110,432 27,645,800

16

2,175,818 28,565 1,048,364 3,252,747 113,355,099

603,394 4,872 1,178,920 1,787,186 110,427,709

Assets Non-current assets Long-term investment Due from related party Property plant and equipment Investment property Current assets Cash in hand and at bank Short-term investments Accounts receivable and prepayments Total assets Equity and liabilities Shareholder’s equity Stated capital Investment re-measurement reserve Retained earnings Non-current liabilities Due to related party Loans – non-current portion Deferred taxation Current liabilities Accounts payable and accruals Corporation tax Loans – current portion Total liabilities and shareholder’s equity

14

The notes on pages 33 to 53 are an integral part of these unconsolidated financial statements.

The unconsolidated financial statements were authorised for issue by the Board of Directors of EPL Properties Limited on 20 June 2018 and were signed on its behalf.

30

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Expressed in Trinidad and Tobago Dollars)

As at 31 December Notes

2017

2016

$

$

12,272,652 155,265 2,194,556 3,390,790 -18,013,263

11,809,546 163,539 2,111,993 946,802 44,649 15,076,529

7,810,486 1,909,063 206,662 409,953 5,758,064 16,094,228

6,638,766 2,008,588 238,457 388,860 4,316,507 13,591,178

1,919,035

1,485,351

20

(748,446) 1,170,589

(1,196,764) 288,587

16

2,175,818

603,394

(67,470)

(453)

1,103,119

288,134

Income Rental income Investment income Gym income Other income Gain on disposal of fixed assets

Expenses Administrative Finance costs Marketing expenses Officers’ expenses Personnel costs Total expenditure

18

19

Net profit before taxation Taxation Other comprehensive income Items that may be reclassified subsequently to profit or loss Unrealised loss on available-for-sale financial asset Total comprehensive income

The notes on pages 33 to 53 are an integral part of these unconsolidated financial statements.

31

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Expressed in Trinidad and Tobago Dollars)

Investment Shareholder’s

Total

Stated

Re-measurement

Retained

capital

Reserve

earnings

Equity

$

$

$

$

Balance as at 1 January 2016

59,705,976

294,333

20,806,280

80,806,589

Total comprehensive income

--

(453)

288,587

288,134

Dividend

--

--

(100,000)

(100,000)

Balance as at 31 December 2016

59,705,976

293,880

20,994,867

80,994,723

Balance as at 1 January 2017

59,705,976

293,880

20,994,867

80,994,723

Total comprehensive income

--

(67,470)

1,170,589

1,103,119

Dividend

--

--

(50,000)

(50,000)

59,705,976

226,410

22,115,456

82,047,842

Balance as at 31 December 2017

The notes on pages 33 to 53 are an integral part of these unconsolidated financial statements.

32

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

UNCONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in Trinidad and Tobago Dollars)

Year ended 31 December 2017

2016

$

$

1,919,035

1,485,351

-1,962,616 ---

(698) 1,223,779 (3,653) 276,485

3,881,651

2,981,264

Changes in non-cash working capital amounts Increase in accounts receivable and prepayments Increase/(decrease) in accounts payable and accruals Increase in due from related party Increase in due to related party Taxes paid Net cash generated from operating activities

(296,797) 1,572,424 (3,014,599) 815,776 (83,455) 2,875,000

(139,077) (6,667) (892,602) 73,823 (88,333) 1,928,408

Cash flows from investing activities Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Net cash used in investing activities

111,368 (3,774,918) (3,663,550)

105,000 (2,018,634) (1,913,634)

Cash flows from financing activities Decrease in loans Dividends paid Net cash used in financing activities

(1,178,920) (50,000) (1,228,920)

(1,080,793) (100,000) (1,180,793)

Net decrease in cash and cash equivalents

(2,017,470)

(1,166,019)

Cash in hand and at bank: - at beginning of year - at end of year

12,722,700 10,705,230

13,888,719 12,722,700

1,008,695 9,696,535 10,705,230

820,483 11,902,217 12,722,700

Cash flows from operating activities Net profit before taxation Adjusted for: Bad debts written-off Depreciation Items written off Loss on disposal of fixed assets

Represented by: Cash in hand and at bank Short-term investments

The notes on pages 33 to 53 are an integral part of these unconsolidated financial statements.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

33

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

31 December 2017

(Expressed in Trinidad and Tobago Dollars)

1. GENERAL INFORMATION The Company, EPL Properties Limited, is incorporated in the Republic of Trinidad and Tobago. The main source of revenue is derived from the rental of properties. Its registered office is situated at La Joya Complex, Eastern Main Road, St. Joseph. It is the wholly-owned subsidiary of Eastern Credit Union Cooperative Society Limited.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these unconsolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. a. Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and under the historical cost convention.

The preparation of these financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. There are no areas where assumptions and estimates are significant to the unconsolidated financial statements. b. Use of estimates The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company’s accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. c. Changes in accounting policies and disclosures (i)

New standards, amendments and interpretations adopted by the Company

The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2017: • Recognition of Deferred Tax Assets for Unrealized Losses – Amendments to IAS 12, and • Disclosure initiative – amendments to IAS 7.

34

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

2. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Changes in accounting policies and disclosures (continued) The adoption of these amendments did not have any impact on the amounts recognised in prior periods. Most of the amendments will also not affect the current or future periods. (ii)

New standards, amendments and interpretations not yet adopted

Many new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2017, and have not been applied in preparing these unconsolidated financial statements. None of these is expected to have a significant effect on the unconsolidated financial statements of the Company except the following set out below: • IFRS 9, requires financial assets to be classified into two measurements categories: those measured at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the entities business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. The Company is yet to assess the full impact of IFRS 9 and intends to adopt IFRS 9 no later than the accounting period beginning on or after 1 January 2018.

• IFRS 15, ‘Revenue from contracts with customers’, deals with revenue recognition and establishes principles for reporting useful information to users of the financial statements about the nature, amount and timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or a service and thus can direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction contracts’ and related interpretations. The standard is effective for annual periods beginning on or after 1 January 2018 and earlier application is permitted. The Company is yet to assess the impact of IFRS 15.

• IFRS 16 - Leases (effective 1 January 2019) eliminates the classification of leases as either operating leases or finance leases for a lessee. Instead all leases are treated in a similar way to finance leases applying IAS 17. Leases are ‘capitalized’ by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, a company also recognizes a financial liability representing its obligation to make future lease payments. The most significant effect of the new requirements will be an increase in lease assets and financial liabilities. The Company is yet to assess the impact of IFRS 16.

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

35

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

2. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d. Property plant and equipment Fixed assets are stated at cost/valuation less accumulated depreciation. Depreciation is provided for on a diminishing balance basis.

The following rates considered appropriate to write-off the assets over their estimated useful lives are applied: Buildings - 2% Furniture, fixtures and fittings - 20% Office and other equipment - 10 - 20 % Computer equipment - 20% Motor vehicles - 25% No depreciation is provided on land and capital work-in-progress.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income. e. Revenue recognition policy Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities.

Revenue is shown net of value-add tax, returns, rebates and discounts. The Company recognizes revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity. Revenue for sale of goods is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer. Revenue from rendering of services is recognised when services are provided.

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: (a) (b)

the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity;

36

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

2. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) e. Revenue recognition policy (continued) (c)

(d)

the stage of completion of the transaction at the end of the reporting period can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably

f. Taxation Current tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred tax Deferred income tax is provided, using the liability method on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry forward of unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. g. Investments The Company has classified all investments into the following category: Available-for-sale (These securities are intended to be held for an indefinite period but may be sold in response to the needs for liquidity or changes in interest rates, exchange rates or equity prices). After initial recognition, available-for-sale investments are measured at fair value with unrealized gains or losses recognised in the investment reserve account.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

37

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

2. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Financial instruments Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.

Cash and cash equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates market value.

Accounts receivables Accounts receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Comprehensive Income when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Accounts payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Loans Loans are recognised initially at fair value, net of transaction costs incurred. Loans are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Comprehensive Income over the period of the loan using the effective interest method.

Stated capital The Company’s shares are classified as equity and stated at fair value. i. Provisions

Provisions are recognised when the Company has a present legal or constructive obligation because of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

38

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

2. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Provisions (continued) (i)

Income recognition

All income is recognised on the accruals basis. (ii)

Foreign currency

Monetary assets and liabilities denominated in foreign currencies are expressed in Trinidad and Tobago dollars at rates of exchange ruling at the reporting date. All revenue and expenditure transactions denominated in foreign currencies are translated at the average rate and the resulting profits and losses on exchange from these trading activities are recorded in the Statement of Comprehensive Income.

3. F INANCIAL RISK MANAGEMENT Financial instruments The following table summarizes the carrying amounts and fair values of Company’s financial assets and liabilities: 2017 Carrying Fair value value $ $ Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayments Long term investments Due from related party Financial liabilities Accounts payable and accruals Loans Due to related party

1,008,695 9,696,535 1,104,845 724,512 5,786,983 18,321,570

1,008,695 9,696,535 1,104,845 724,512 5,786,983 18,321,570

2,175,818 20,518,012 3,833,132 26,526,962

2,175,818 20,518,012 3,833,132 26,526,962

39

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

3. F INANCIAL RISK MANAGEMENT (CONTINUED) 2016

Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayments Long term investments Due from related party Financial liabilities Accounts payable and accruals Loans Due to related party

Carrying value $

Fair value $

820,483 11,902,217 808,048 791,982 2,772,384 17,095,114

820,483 11,902,217 808,048 791,982 2,772,384 17,095,114

603,394 21,696,932 3,017,356 25,371,682

603,394 21,696,932 3,017,356 25,371,682

Financial risk factors The Company is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk and reputation risk arising from the financial instruments that it holds. The risk management policies employed by the Company to manage these risks are discussed below: a. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk through the effect of fluctuations in the prevailing levels of interest rates on interest bearing financial assets and liabilities, including investments in money market deposits and other funding instruments.

Interest rate sensitivity analysis The Company’s exposure to interest rate risk is summarized in the table below, which analyses assets and liabilities at their carrying amounts categorized according to their maturity dates.

40

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

3. F INANCIAL RISK MANAGEMENT (CONTINUED) a. Interest rate risk (continued) Interest rate sensitivity analysis (continued) Effective rate

Up to 1 year

1 to 5 years

2016 Over 5 years

Non-interest bearing

Total

As at 30 September 2016 Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayment Long term investment Due from related party

0.00% 0.92%

-11,902,217

---

---

820,482 --

820,482 11,902,217

0.00% 0.02% 0.00%

-791,982 -12,694,199

-----

-----

808,048 -2,772,384 4,400,914

808,048 791,982 2,772,384 17,095,113

Financial liabilities Accounts payable and accruals Loans Loans Due to related party

0.00% 7.00% 9.00% 0.00%

-162,400 1,016,521 -1,178,921

-281,477 3,946,115 -4,227,592

--16,290,420 -16,290,420

603,394 --3,017,356 3,620,750

603,394 443,877 21,253,056 3,017,356 25,317,683

Effective rate

Up to 1 year

1 to 5 years

Non-interest bearing

Total

2017 Over 5 years

As at 30 September 2017 Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayment Long term investment Due from related party

0.00% 1.23%

-9,696,535

---

---

1,008,695 --

1,008,695 9,696,535

0.00% 0.02% 0.00%

-724,512 -10,421,047

-----

-----

1,104,845 -5,786,983 7,900,523

1,104,845 724,512 5,786,983 18,321,57

Financial liabilities Accounts payable and accruals Loans Loans Due to related party

0.00% 7.00% 9.00% 0.00%

-174,139 874,224 -1,048,363

-107,338 5,630,120 -5,737,458

--13,732,191 -13,732,191

2,175,818 --3,833,132 6,008,950

2,175,818 281,477 20,236,535 3,833,132 26,526,962

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

41

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

3. F INANCIAL RISK MANAGEMENT (CONTINUED) b. Capital risk management Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Company relies heavily on its policies and guidelines on trade debtors’ management, which sets out the current policies governing the granting of credit to customers function and provides a comprehensive framework for prudent risk management of the credit function.

Adherence to these guidelines is expected to communicate the Company’s credit philosophy, provide policy guidelines to team members involved in granting credit, establish minimum standards for credit analysis, documentation, decision making and post-disbursement administration, as well as create analysis, documentation, decision making and post-disbursement administration, as well as create the foundation for sound credit portfolio.

The Company’s debtors’ portfolio is managed and consistently monitored by management and is adequately secured by collateral and where necessary, provisions have been established for potential credit losses on delinquent accounts.

Cash balances are held with high credit quality financial institutions and the Company has policies to limit the amount of exposure to any financial institution.

The Company also actively monitors global economic developments and government policies that may affect the growth rate of the local economy. c. Liquidity risk Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses.

The Company has procedures with the object of minimizing such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

The Company is exposed to daily calls on its available cash resources to settle financial and other liabilities.

Liquidity gap The Company’s exposure to liquidity risk is summarized in the table below which analyses assets and liabilities based on the remaining period from the Balance Sheet date to the contractual maturity date.

42

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

3. F INANCIAL RISK MANAGEMENT (CONTINUED) c. Liquidity risk (continued) Liquidity gap (continued) 2016 Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayments Long term investment Due from related party Financial liabilities Accounts payable and accruals Loans Due to related party

Up to 1 Year

1 to 5 Years

Over 5 Years

Total

820,483 11,902,217

---

---

820,483 11,902,217

808,048 791,982 -14,322,730

--2,772,384 2,772,384

-----

808,048 791,982 2,772,384 17,095,114

603,394 7,975,574 -8,578,968

-13,510,798 3,017,356 16,528,154

-25,435,327 -25,435,327

603,394 46,921,699 3,017,356 50,542,449

2017 Financial assets Cash in hand and at bank Short-term investments Accounts receivable and prepayments Long term investment Due from related party Financial liabilities Accounts payable and accruals Loans Due to related party

Up to 1 Year

1 to 5 Years

Over 5 Years

Total

1,008,695 9,696,535

---

---

1,008,695 9,696,535

1,104,845 724,512 -12,534,587

--5,786,983 5,786,983

-----

1,104,845 724,512 5,786,983 18,321,570

2,175,818 2,847,495 -5,023,313

-10,663,303 3,833,132 17,134,797

-25,435,327 -22,796,965

2,175,818 38,946,125 3,833,132 44,955,075

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

43

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

3. F INANCIAL RISK MANAGEMENT (CONTINUED) d. Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Company. The Company employs various asset/liability techniques to manage liquidity gaps. Liquidity gaps are mitigated by generating sufficient cash from new and existing customers to settle outstanding liabilities.

To manage and reduce liquidity risk the Company’s management actively meets to match cash inflows with liability requirements. e. Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company’s measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Company’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. f. Fair value estimation The fair values of the Company’s financial assets and liabilities approximates to their carrying amounts at the reporting date.

44

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgements, estimates and assumptions in the process of applying the Company’s accounting policies.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future and actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Changes in accounting estimates are recognised in the Statement of Comprehensive Income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods.

The critical judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows:

a)

Whether investments are classified as held-to-maturity investments, available-for-sale investments or loans and receivables.

b)

Whether leases are classified as operating leases or finance leases.

c)

Which depreciation method for fixed assets is used.

d) Taxation

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date (requiring management’s most difficult, subjective or complex judgements) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i)

Impairment of assets

Management assesses at each reporting date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. (ii)

Fixed assets

Management exercises judgement in determining whether future economic benefits can be derived from expenditures to be capitalized and the useful lives and residual values of these assets.

45

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

5. LONG-TERM INVESTMENTS December Available for sale Shareholding – First Citizens Bank Limited

2017 $

2016 $

724,512

791,982

6. RELATED PARTY TRANSACTIONS Parties are related if one party can control the other party or exercise significant influence over the other party in making financial decisions.

Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Company.

Many transactions are entered with related parties in the normal course of business. These transactions were carried out on commercial terms at market rates.

Balances and transaction with related parties and key management personnel during the year were as follows:

December 2017 2016 $ $ Related party transactions a. Assets Due from related party

5,786,983

2,772,384

3,833,132

3,017,356

20,518,012

21,696,932

c. Income Property rental

9,909,144

9,331,824

d. Expenses Interest on loan to related party

1,897,449

1,995,576

e. Key management compensation Short-term benefits

1,124,765

1,064,077

b. Liabilities Due to related party Loans due to related party

46

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

7. P ROPERTY, PLANT AND EQUIPMENT Furniture Office and fittings equipment $ $

Computer equipment $

Motor vehicle $

Total $

Cost Balance as at 1 January 2017 Additions Balance as at 31 December 2017

2,026,921 435,141 2,462,062

365,349 99,750 465,099

627,580 440,979 1,068,559

405,767 -405,767

3,425,617 975,870 4,401,487

Balance as at 1 January 2017 Charge for the period Balance as at 31 December 2017

1,433,732 168,511 1,602,243

211,450 44,587 256,037

412,313 102,989 515,302

115,174 72,648 187,822

2,172,669 388,735 2,561,404

Net book value Balance as at 31 December 2017

859,819

209,062

553,257

217,945

1,840,083

Balance as at 1 January 2016

2,533,758

447,494

799,845

345,199

4,126,296

Additions Adjustments/disposals Balance as at 31 December 2016

17,956 (524,793) 2,026,921

22,961 (105,106) 365,349

-(172,265) 627,580

289,403 (228,835) 405,767

330,320 (1,030,999) 3,425,617

Balance as at 1 January 2016 Charge for the period Adjustments Balance as at 31 December 2016

1,734,285 146,305 (446,858) 1,433,732

268,477 35,440 (92,467) 211,450

494,201 67,039 (148,927) 412,313

223,875 59,783 (168,484) 115,174

2,720,838 308,567 (856,736) 2,172,669

Net book value Balance as at 31 December 2016

593,188

153,899

215,267

290,593

1,252,948

Balance as at 31 December 2015

799,473

179,017

305,644

121,324

1,405,458

Accumulated depreciation

Cost

Accumulated depreciation

47

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

8. INVESTMENT PROPERTIES Land and Building $

Buildings Capital Improve- Auditorium Maintenance Gymnasium Electrical Work In ments Equipment Equipment Equipment Equipment Progress $ $ $ $ $ $

Cost Balance as at 1 January 2017 82,576,344 14,211,480

Total $

17,155

282,759

1,786,517

1,191,218

367,652

100,433,125

Additions

--

1,735,994

--

--

258,778

--

804,276

2,799,048

Work in progress transfers

--

367,652

--

--

--

--

(367,652)

--

Adjustments/ disposals

--

(111,368)

--

--

--

--

--

(111,368)

17,155

282,759

2,045,295

1,191,218

Balance as at 31 December 2017 82,576,344 16,203,758

804,276 103,120,805

Accumulated depreciation Balance as at 1 January 2017 5,263,266

1,596,154

12,371

148,988

725,730

606,969

--

8,353,478

Charge for the period 1,059,599

272,662

719

20,064

162,415

58,422

--

1,573,881

--

--

Adjustments

--

--

--

--

--

Balance as at 31 December 2017

6,322,865

1,868,816

13,090

169,052

888,145

665,391

--

9,927,359

Balance as at 31 December 2017 76,253,479 14,334,942

4,065

113,707

1,157,150

525,827

804,276

93,193,446

Balance as at 31 December 2016 77,313,078 12,615,326

4,784

133,773

1,060,788

584,249

367,652

92,079,647

Net book value

48

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

8. INVESTMENT PROPERTIES (CONTINUED) Land and Building $

Buildings Capital Improve- Auditorium Maintenance Gymnasium Electrical Work In ments Equipment Equipment Equipment Equipment Progress $ $ $ $ $ $

Cost Balance as at 1 January 2016 82,576,344 12,952,520

Total $

77,869

300,120

2,513,398

1,191,218

--

99,611,469

Additions

--

1,258,960

--

43,490

18,213

--

367,652

1,688,315

Disposals

--

--

(60,714)

(60,851)

(745,094)

--

--

(866,659)

Transfer/Reclassification

--

--

--

--

--

--

--

--

17,155

282,759

1,786,517

1,191,218

367,652

100,433,125

1,477,273

59,738

174,640

1,115,527

542,573

--

8,097,866

535,151

118,881

844

18,449

184,891

64,917

--

923,133

--

--

(48,211)

(44,101)

(574,688)

(521)

--

(667,521)

5,263,266

1,596,154

12,371

148,988

725,730

606,969

--

8,353,478

Balance as at 31 December 2016 77,313,078 12,615,326

4,784

133,771

1,060,787

584,249

367,652

92,079,647

Balance as at 31 December 2015 77,848,229 11,475,247

18,131

125,480

1,397,871

648,645

--

91,513,603

Balance as at 31 December 2016 82,576,344 14,211,480

Accumulated depreciation Balance as at 1 January 2016 4,728,115 Charge for the period Disposals Balance as at 31 December 2016

Net book value

49

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

9. CASH IN HAND AND AT BANK

Petty cash Eastern Credit Union Co-operative Society Limited Scotiabank Trinidad and Tobago Limited

December 2017 2016 $ $ 15,837 17,500 460,744 50,169 532,114 752,814 1,008,695 820,483

10. SHORT-TERM INVESTMENTS This balance relates to an Income Fund account held at Trinidad and Tobago Unit Trust Corporation.

December Unit Trust Corporation

2017 $ 9,696,535 9,696,535

2016 $ 11,902,217 11,902,217

230,731 11,053 21,352 61,914 163,781 616,014 1,104,845

275,079 42,917 45,540 4,100 55,005 385,407 808,048

59,705,976

59,705,976

11. ACCOUNTS RECEIVABLE AND PREPAYMENTS: Accounts receivable – Other Accounts receivable – Tenants Accounts receivable – Sporting Complex Employee advances Prepayments VAT receivable

12. STATED CAPITAL Issued 119,412 ordinary shares of no par value

13. INVESTMENT RE-MEASUREMENT RESERVES In accordance with IAS #39, an investment re-measurement reserve has been created to capture unrealized gains/losses on available-for-sale investments.

December 2017 2016 $ $ Investment re-measurement reserve 226,410 293,880 226,410 293,880

50

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

14. LOAN

Eastern Eastern Eastern Eastern

Credit Credit Credit Credit

Union Union Union Union

Co-operative Co-operative Co-operative Co-operative

Society Society Society Society

(See (See (See (See

a.) b.) c.) d.)

December 2017 2016 $ $ 281,477 443,877 20,653 256,805 7,065,438 7,626,618 13,150,444 13,369,632

Less: current portion

20,518,012 (1,048,364)

21,696,932 (1,178,920)

Non-current portion

19,469,648

20,518,012

a.

This balance represents bridging financing on a $30.0m loan taken to finance the

construction of a commercial and residential building to the western side of the

existing La Joya facility. It is repayable over 25 years at an interest rate of 7% per

annum. It is secured by a First Demand mortgage over the land and building situated

at Eastern Main Road, St. Joseph. This loan was issued in August 2011.

b.

This balance refers to a loan taken to the value of $1.6m. This loan facility is secured by

way of a fixed charge against the property situated east of La Joya, St. Joseph at an

interest rate of 9% per annum for a term of 10 years. This loan was issued in February 2008.

c.

This balance refers to a loan taken to the value of $10.7m. This loan facility is secured

by way of a fixed charge against the property situated in St. James Street, San

Fernando at an interest rate of 9% per annum for a term of 18 years. This loan was

issued in March 2008.

d.

This balance refers to a loan taken to the value of $14m for the financing of the Kabsco

project. It is repayable over 25 years at an interest rate of 9% per annum. This loan was issued April 2013.

51

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

15. DEFERRED TAXATION Deferred income taxes are calculated on all temporary differences under the liability method using a principal tax rate of 30% (2016: 30%).

The deferred income tax asset and liability in the statement of financial position and the deferred tax charge/(credit) in the statement of comprehensive income are attributable to the following items:

Balance at beginning of year Effect of statement of comprehensive income Balance at end of year Deferred taxation is attributable to the following items: Excess of net book value over written-down tax value Tax losses carried forward

December 2017 2016 $ $ (4,110,432) (3,002,996) (641,298) (1,107,435) (4,751,730) (4,110,432) (11,836,311) 7,084,581 (4,751,730)

(11,130,044) 7,019,612 (4,110,432)

16. ACCOUNTS PAYABLE AND ACCRUALS

Cautionary deposits Payables – other Stale-dated cheques

December 2017 2016 $ $ 96,268 100,069 2,031,015 473,501 48,535 29,824 2,175,818 603,394

17. CAPITAL RISK MANAGEMENT The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders. The Company’s overall strategy remains unchanged from previous years.

The capital structure of the Company consists of equity attributable to shareholders, and comprises stated capital and retained earnings.

52

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

18. ADMINISTRATIVE EXPENSES December 2017

2016

Audit fees

92,500

48,000

Aerobic expense

15,500

7,626

Courier

27,600

27,600

Bad debt

--

(22,811)

Donations

12,454

5,175

Green fund levy

53,574

44,739

Insurance

642,189

665,758

Legal & Professional fees

203,126

329,086

Miscellaneous

428,886

335,856

17,721

33,168

Office expense

169,403

82,086

Christmas expense

128,795

147,644

Camp expenditure

72,361

103,043

Gym expense

208,683

157,018

Rentals

20,000

48,000

119

3,221

(266)

320,439

72,228

68,983

1,019,825

1,458,736

962,162

989,557

Stationery

36,297

27,437

Training

70,911

30,512

Property tax

1,083,699

--

Depreciation

1,962,617

1,223,779

510,102

504,115

7,810,486

6,638,766

Motor vehicle expense

Travelling Expenditure adjustments Refreshments Repairs & maintenance Security

Utilities

53

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS

(continued) 31 December 2017

(Expressed in Trinidad and Tobago Dollars)

19. PERSONNEL COST December NIS Salaries and wages - admin Salaries and wages - sporting complex Salaries and wages - events Staff uniforms Staff retreat

2017 $ 326,716 3,564,106 1,527,935 276,397 10,670 52,240 5,758,064

2016 $ 211,988 2,265,679 1,509,533 247,216 28,826 53,266 4,316,507

20. TAXATION December Taxation Corporation tax Business levy Effects of changes in tax rates Deferred tax Income tax expense

2017

2016

107,148

89,329

641,298 748,446

1,107,435 1,196,764

The tax on profit before tax differs from the theoretical amount that would arise using the tax rate applicable to profits as follows: Accounting income Tax calculated at 25% Effects of changes in tax rate Expenses not deductible for tax purposes PY Under provision-deferred tax Business levy Permanent difference Tax charge in statement of comprehensive income

1,919,035 525,711 -31,990 90,245 107,148 (6,648)

1,485,352 371,338 600,599 (37,852) 106,422 89,329 66,928

748,446

1,196,764

21. EVENTS AFTER THE BALANCE SHEET DATE There were no events after the reporting period which were material to the financial statements and should have resulted in adjustments to the financial statements or disclosures when the financial statements were authorised for issue.

EPL PROPERTIES LIMITED 2017 ANNUAL REPORT

54

RESOLUTIONS

At the 15th Annual General Meeting of EPL Properties Limited (the “Company”) to be held on Thursday 26th July, 2018 the following shall be considered by Eastern Credit Union, the Shareholder:

RESOLUTION NO. 1

RESOLUTION NO. 4

Audited Financial Statement and Chairman’s Report

Appointment of Directors of the Company in accordance with the Companies Act 1995

Be it resolved that the Audited Financial Statements and the Chairman’s Report for the year ended December 31st 2017 be hereby approved and adopted.

RESOLUTION NO. 2 Dividend Be it resolved that a dividend in the sum of eight hundred thousand dollars ($800,000.00) be paid to the Shareholder, based on the financial returns of EPL Properties Limited as at December 31st, 2017.

RESOLUTION NO. 3 Appointment of Auditors and Authorization of Directors to set Remuneration Be it resolved that PwC be and are hereby appointed Auditors until the next Annual General Meeting of the Company and that their remuneration be fixed by the Directors.

Be it resolved that:a. Mr. Brent Hewitt-Borde be and is hereby re-appointed as an Independent Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. b. Mr. Jameel Mohammed be and is hereby appointed as an Independent Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. c. Mrs. Gloria Rolingson be and is hereby appointed as an Independent Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. d. Ms. Janelle Benjamin be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.

e. Mr. Ronald Bobb be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. f. Mr. Wayne Estrada be and is hereby re-appointed as a Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019. g. Mr. Clyde Herbert be and is hereby appointed as a Director of the Company for the term of office beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.

RESOLUTION NO 5 Shareholder’s Representative Be it resolved that Mr. Cyril Barran be appointed Shareholder’s Representative for the period beginning July 26th, 2018 and expiring at the Sixteenth Annual General Meeting to be held in 2019.

Unit 12 La Joya Administrative Complex, Eastern Main Road, St. Joseph. +1-868-225-4EPL (4375) +1-868-223-1980 eplpropertiesltd.com