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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER, 2010
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
(Continued)
22. Financial risk management (continued)
Credit quality per category of financial asset
The credit quality of the balance due from the Group’s various counterparties are internally determined from an
assessment of each counterparty based on a combination of factors.
These factors include financial strength and the ability of the counterparty to service its debts, the stability of the
industry or market in which it operates and its proven track record with the Company. The categories defined are
as follows:
Superior:
Desirable:
Acceptable:
This category includes balances due from the Government and Government agencies that have
been secured by a letter of comfort from the Government and balances due from institutions
that have been accorded the highest rating by an international rating agency. These balances are
considered risk free.
These are balances due from counterparties that are considered to have good financial strength
and reputation.
These are balances due from counterparties that are considered to have fair financial strength and
reputation.
Sub-standard: Balances that are impaired.
The table below illustrates the credit quality of the Group’s trade receivable as at 31 December:
Superior Desirable Acceptable Sub-standard Total
$ $ $ $ $
2010 3,939 13,753 27,400 18,788 63,880
2009 8,116 43,436 11,880 18,340 81,772
23. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximize shareholder value, and comply with the capital
requirements set by the regulators of the markets where the Group operates.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during
the years ended 31 December 2010 and 31 December 2009. For 2010 and 2009, the Group complied with all
externally imposed capital ratio requirements to which it is subject.
24. Dividends
The 2008 final dividend declared and approved in 2009 of 20 cents per share amounting to $2.4 million has been
presented as an appropriation against retained earnings in the Consolidated statement of changes in equity for the
year end 31 December 2009.
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BUILD TO LAST FOR GENERATIONS