Chartered Accountants. & Business Advisors AMGECU CREDIT UNION CO-OPERATIVE SOCIETY LIMITED FINANCIAL STATEMENTS

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1 Chartered Accountants & Business Advisors AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED FINANCIAL STATEMENTS

2 I AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED Chartered Accountants & Business Advisors INDEX Statement of Management Responsibilities 1 Independent Auditors' Report 2 Statement of Financial Position 3 Statement of Comprehensive Income 4 Statement of Changes in Equity 5 6 Statement of Cash Flows 7 Notes to the Financial Statements 8 44

3 / a * * * * * * THE KEY TO YOUR DREAMS AMGECU Credit Union Cooperative Society Limited Statement of Management Responsibilities it is the responsibility of management to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Credit Union as at the end of the financial year and of the operating results of the Credit Union for the year. It is also management's responsibility to ensure that the Credit Union keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Credit Union. They are also responsible for safeguarding the assets of the Credit Union. Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards. Management are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Credit Union and of its operating results. Management further accepts responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of Management to indicate that the Credit Union will not remain a going concern for at least the next twelve months from the date of this statement. Sec et ral nager Accountant 4* 4m Ma 201. March, 2016., 4 Borde Street, Port of Spain, Republic of Trinidad and Tobago P.O. Box 1587, Port of Spain, Republic of Trinidad and Tobago Telephone: (868) , , , , ~ Fax: (868) amgecu@flowtrinidad.com // Website:

4 Chartered Accountants & Business Advisors INDEPENDENT AUDITORS' REPORT The Members AMGECU Credit Union Cooperative Society Limited We have audited the accompanying financial statements ofamgecu Credit Union Cooperative Society Limited, which comprise the statement of financial position as at 31 December 2015 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of AMGECU Credit Union Cooperative Society Limited as of 31 December 2015, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. PortofSpain 4 March 2016 Direct tel (868) I Direct fax (868) pkftrinidad@trinidad.net PKF I 90 Edward Street I PortofSpain 1 PO Bag 250 Belmont I Trinidad I WI Directors Rene6Lisa Philip Mark K. Superville

5 AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. STATEMENT OF FINANCIAL POSITION ASSETS 31 December Notes (Restated) Current Assets: Cash in hand and at bank 5 $ 9,989,128 $ 7,915,958 Other financial assets 6 27,778,552 29,287,234 Accounts receivable 7 705, ,012 Amounts due from member companies 8 853, ,016 Total Current Assets 39,327,108 38,830,220 NonCurrent Assets: Loans to members 9 109,514, ,983,395 Other financial assets 10 19,967,682 18,773,246 Employee benefit assets 11 5,671,000 4,082,000 Investment properties 12 11,629,456 11,709,903 Fixed assets 13 3,085, ,887 Total NonCurrent Assets 149,868,09I 141,655,431 Total Assets S 189, LIABILITIES AND MEMBERS' EQUITY Current Liabilities: Accounts payable and accrued charges 14 $ 854,904 $ 665,270 Christmas Savings Plan , ,271 Education Savings Plan , ,027 Total Current Liabilities 1,247,968 1,024,568 NonCurrent Liabilities: Members' savings and pooled funds 17 9,045,191 7,785,488 Employee benefit obligation 18 87,000 53,000 Members' shares ,378, ,177,091 Total NonCurrent Liabilities 160,511, ,015,579 Total Liabilities 161,759, ,040,147 Members' Equity: Reserve Fund 20 11,838,080 11,077,917 Building Fund , ,000 Education Fund , ,000 Charitable Fund 21 50,000 50,000 Investment Remeasurement Reserve 22 5,642,110 5,077,435 Undivided surplus 9,605,933 8,940,152 Total Members' Equity 27,436,123 25,445,504 Total Liabilities and Members' Equity S 189, S 180,485,651 These financial stat ts were approved by the Board of Directors and authorise iss eo 4 March 2016 and signed on the al y:, President See e ar a Su isory Committee (The accompanying notes form an in al pa these financial state nts)

6 4. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED STATEMENT OF COMPREHENSIVE INCOME Income: 31 December Notes (Restated) Interest on loans to members $ 10,433,722 $ 9,876,746 Investment income 27 1,472,469 1,973,099 Miscellaneous income , ,365 Total Income 12,569,138 12,479,210 Expenses: Administrative expenses 29 2,317,746 2,145,239 Board and committee expenses , ,447 Depreciation 290, ,622 Fund expenses , ,482 Impairment of financial assets 1,284,922 Interest on members' savings and pooled funds 32 50,751 51,456 Investment property expenses 83,241 89,559 Personnel costs 33 1,661,668 1,532,112 Total Expenses 4,975,304 5,970,839 Net surplus for the year 7,593,834 6,508,371 Other Comprehensive Income: Items that may be reclassified subsequently to profit or loss: Net gain/(loss) on equity investments 564,675 (828,863) Items that will not be reclassified subsequently to profit or loss: Net actuarial gain on employee benefit asset and obligation 34 1,369, ,000 Total Other Comprehensive Income for the year 1,933,675 (700,863) Total Comprehensive Income S $ 5.807,508 (The accompanying notes form an integral part of these financial statements)

7 ,675 (159,148) 159,148 (7,536,890) 5. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMEBR 2015 Investment Reserve Building Education Charitable measurement Undivided Fund Fund Fund Fund Reserve Surplus Total Re Balance as at 1 January 2015 (Restated) $11,077,917 $ 100,000 $ 200,000 $ 50,000 $ 5,077,435 $ 8,940,152 $25,445,504 Total comprehensive income 8,962,834 9,527,509 Transfer from net surplus 759,383 4,912 (923,443) 11,837, , ,148 54,912 5,642,110 16,979,543 34,973,013 Entrance fees 780 (780) Fund expenses (4,912) 164,060 Dividends paid (net) (7,536,890) Balance as at 31 December 2015 $11.838,080 S 100,000 $ 200,000 $ 50,000 $ 5, $ 9, $ (The accompanying notes form an integral part of these financial statements)

8 143,269 (143,269) (834,125) 1,284,922 (828,863) 6,636,371 9,541,024 15,358,719 (6,585,206) $ 6. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMEBR 2015 Investment Re Property Reserve Building Education Charitable measurement Revaluation Undivided Fund Fund Fund Fund Reserve Reserve Total Balance as at 1 January 2014 as previously reported $10,400,535 $ 100,000 $ 200,000 $ 50,000 $ 4,822,516 $ 834,125 $ 9,482,113 $25,889,289 Restatement (Note 23) 58,911 (775,214) 10,400, , ,000 50,000 4,822,516 25,114,075 Total comprehensive income 5,807,508 Transfer from net surplus 650,837 24,570 (818,676) 11,051, , ,269 74,570 3,993,653 30,921,583 Entrance fees 1,200 (1,200) Fund expenses (24,570) 167,839 Impairment of financial assets. 1,284,922 Transfer of realised gains on disposal of financial assets (201,140) (201,140) Transfer from exmembers Transfer from unclaimed shares 24,537 24,537 Dividends paid (net) 2013 (6,585,206) Balance as at 31 December 2014( Restated) $11,077,917 $ 100,000 $ 200,000 $ 50,000 $ 5,077,435 $ 8,940,152 $25.445,504 (The accomdrbvine notes form an interral Dart of these financial statements)

9 IAS 7. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED STATEMENT OF CASH FLOWS 31 December (Restated) Cash Flows from Operating Activities: Net surplus for the year $ 7,593,834 $ 6,508,371 Employee Benefit/Obligation # 19 Adjustment (186,000) (171,000) Depreciation 290, ,622 Impairment of financial assets 1,284,922 Loss/(gain) on disposal of investments 121,443 (205,709) Interest on investments (1,099,412) (1,174,240) Provision for loan losses expense 252, ,004 Adjusted net surplus for the year 6,972,344 6,624,970 Net change in amounts due from member companies (32,584) 304,432 Net change in accounts receivable and prepayments 100,184 (152,706) Net change in accounts payable and accrued charges 189, ,298 Net change in Christmas savings plan 23,410 (9,350) Net change in Education savings plan 10,356 7,730 Transfers to Reserve Fund 25,345 Cash generated from Operating Activities 7,263,344 6,937,719 Interest received 1,099,412 1,174,240 Cash Flows from Investing Activities: Net movement in members' loans (5,783,246) (12,111,435) Net change in fixed assets and investment properties (188,457) (176,086) Additions to investments (15,487,843) (9,298,337) Sale of investments 16,245,321 10,239,998 Proceeds from disposal of fixed asset 17,240 Cash used in Investing Activities (5,214,225) (11,328,620) Net cash flow before financing activities 3,148,531 (3,216,661) Cash Flows from Financing Activities: Net change in members' savings and pooled funds 1,259,703 (349,613) Net change in members' shares 5,201,826 8,614,209 Dividends paid (net) (7,536,890) (6,585,206) Cash (used in)/generated from Financing Activities (1,075,361) 1,679,390 Net change in cash and cash equivalents 2,073,170 (1,537,271) Cash and cash equivalents at beginning of year 7,915,958 9,453,229 Cash and cash equivalents at end of year $ $ 7,915,958 Represented by: Cash in hand and at bank $ 9.989,128 $ 7,915,958 (The accompanying notes form an integral part of these financial statements)

10 Mandatory 8. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 1. Incorporation and Principal Activities: The Society was incorporated under the Cooperative Societies Act of the Republic of Trinidad and Tobago Ch 81: 03 on 28th March The registered office of the Credit Union is located at #4 Borde Street, Port of Spain. The Society operates in the capacity of a Credit Union for the benefit of employees of Ansa Mc Al Limited and its subsidiary companies. During the year ended 31 December 2011, the Society changed its name to AMGECU Credit Union Cooperative Society Limited. 2. Significant Accounting Policies: (a) Basis of financial statements preparation These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), and are expressed in Trinidad and Tobago dollars and stated in whole dollars. These financial statements are stated on the historical cost basis, except for the measurements at fair value of availableforsale investments and certain other financial instruments. (b) Use of estimates The preparation of financial statements in conformity with International Financial Reporting Standards requires the use of certain critical accounting estimates and requires management to exercise its judgement in the process of applying the Society's accounting policies. It also requires the use of assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the income and expenditure 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) New Accounting Standards and Interpretations i) The Society has not applied the following standard that became effective during the current year, as it does not apply to the activities of the Society or have a material impact on its financial statements: IFRS 7 Financial Instruments: Disclosures effective date and transition disclosures (effective for accounting periods beginning on or after 1 January 2015). ii) The Society has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Society or have no material impact on its financial statements, except for IFRS 9 Financial Instruments: IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations Amendments regarding changes in methods of disposal (effective for accounting periods beginning on or after 1 January 2016).

11 Amendments Amendments Amendments Servicing Amendments Amendments Amendments Amendments, 9. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (c) New Accounting Standards and Interpretations (cont'd) IFRS 7 IFRS 9 IFRS 10 Financial Instruments: Disclosures contracts and applicability to condense interim financial statements (effective for accounting periods beginning on or after 1 January 2016). Financial Instruments (effective for accounting periods beginning on or after 1 January 2018). Consolidated Financial Statements regarding the sale or contribution of assets between an investor and its associate or joint venture (effective for accounting periods beginning on or after 1 January 2016). IFRS 10 Consolidated Financial Statements regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016). IFRS 11 Joint Arrangements regarding the accounting for acquisitions of an interest in a joint operation (effective for accounting periods beginning on or after 1 January 2016). IFRS 12 Disclosure of Interest in Other Entities regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016). IFRS 14 Regulatory Deferral Accounts (effective for accounting periods beginning on or after 1 January 2016). IFRS 15 IFRS 16 IAS 1 IAS 7 IAS 12 Revenue from Contracts with Customers (effective for accounting periods beginning on or after 1 January 2017). Leases (effective for accounting periods beginning on or after 1 January 2019). Presentation of Financial Statements resulting from disclosure initiative (effective for accounting periods beginning on or after 1 January 2016). Statement of Cash Flows resulting from disclosure initiative (effective for accounting periods beginning on or after 1 January 2017). Income Taxes resulting from recognition of deferred tax assets for unrealised losses (effective for accounting periods beginning on or after 1 January 2017).

12 Amendments Amendments Amendments Amendments Amendments Amendments Amendments Amendments Amendments 10. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (c) New Accounting Standards and Interpretations (cont'd) IAS 16 IAS 16 IAS 19 IAS 27 Property, Plant and Equipment regarding the clarification of acceptable methods of depreciation and amortisation (effective for accounting periods beginning on or after 1 January 2016). Property, Plant and Equipment bringing bearer plants into the scope of IAS 16 (effective for accounting periods beginning on or after 1 January 2016). Employee Benefits: Disclosures regarding discount rate: regional market issue (effective for accounting periods beginning on or after 1 January 2016). Separate Financial Statements reinstalling the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements (effective for accounting periods beginning on or after 1 January 2016). IAS 28 Investment in Associates regarding the sale or contribution of assets between investor and its associate or joint venture (effective for accounting periods beginning on or after 1 January 2016). IAS 28 IAS 34 IAS 38 IAS 41 Investment in Associates regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016). Interim Financial Reporting regarding disclosure of information "elsewhere in the interim financial report" (effective for accounting periods beginning on or after 1 January 2016). Intangible Assets regarding the clarification of acceptable methods of depreciation and amortisation (effective for accounting periods beginning on or after 1 January 2016). Agriculture bringing bearer plants into the scope of IAS 16 (effective for accounting periods beginning on or after 1 January 2016). The adoption of IFRS 9 Financial Instruments may result in significant changes in the Society's classification and presentation of financial instruments.

13 11. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (d) Fixed assets Fixed assets are stated at historical cost less accumulated depreciation. Depreciation is provided on the straightline basis. The following rates considered appropriate to writeoff the assets over their estimated useful lives are applied: Land and Building Office improvements Computer equipment Furniture and equipment 2% 25% 33% 25% No depreciation is provided on freehold land or capital workinprogress. The assets' residual values and useful lives are reviewed at each Statement of Financial Position date, and adjusted as appropriate. 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 within the "Gain /Loss on Disposal" account in the Statement of Comprehensive Income. e) Investment properties Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment losses, which are included in profit or loss in the period in which they arise. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is detecognized. The Society utilises the same depreciation rates and basis used for its fixed assets for the Investment Properties.

14 (iv) 12. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (f) Financial instruments Financial instruments carried on the Statement of Financial Position include cash resources, investments, loans, deposits and other liabilities. The standard treatment for recognition, derecognition, classification and measurement of the Credit Union's financial instruments are noted in notes (i) below, whilst additional information on specific categories of this Credit Union's financial instruments are disclosed in notes 5 8,10. i) Recognition The Credit Union initially recognizes loans, advances and deposits on the date that they are originated. All other financial assets and liabilities (including assets and liabilities designated at fair value through profit or loss) are initially recognized on the transaction date on which this Credit Union becomes a party to the contractual provision of the instrument. ii) Derecognition This Credit Union derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. iii) Classification This Credit Union classifies its financial assets into the following categories: Cash and cash equivalents, financial assets at fair value through profit and loss; loans and receivables; heldtomaturity; and availablefor sale assets. Management determines the classification of its investments at initial recognition. Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, deposits with banks and short term highly liquid investments with maturities of three months or less when purchased. These are shown at cost which approximates market value.

15 13. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (f) Financial instruments (cont'd) iii) Classification (cont'd) Loans and receivables Loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when this Credit Union provides money directly to its members with no intention of trading the receivable. Loans to members are stated at principal amounts outstanding net of allowances for loan losses. Specific provisions are made for potential losses on nonperforming loans on the basis of net realizable value. Periodic portfolio reviews are conducted during the course of each year to determine the adequacy of provisions. Loans are secured by various forms of collateral, including charges over tangible assets, certificates of deposit, and assignment of funds held with other financial institutions. Held to maturity Heldtomaturity investments are nonderivative financial assets with fixed or determinable payments and fixed maturities that this Credit Union's management has the positive intention and ability to hold to maturity. If this Credit Union were to sell other than an insignificant amount of heldtomaturity assets, the entire category would be compromised and reclassified as availableforsale. Availableforsale Availableforsale investments are those intended to be held for an indefinite period of time, and may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Members' deposits Members' deposits are stated at the principal amounts invested by members together with any capitalised interest. Members' deposits bear interest at rates that are not significantly different from current market rates and are assumed to have discounted cash flow values which approximate carrying values. Members' shares Members' shares are classified as equity and stated at fair value.

16 14. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (f) Financial instruments (cont'd) iv) Measurement Financial instruments are measured initially at cost, including transaction costs. Subsequent to initial recognition, all financial assets at fair value through profit and loss and availableforsale assets are measured at fair value, based on their quoted market price, at the Statement of Financial Position date, without any deduction for transaction costs. Where the instrument is not actively traded or quoted on recognized exchanges, fair value is determined using discounted cash flow analysis. Any availableforsale asset that does not have a quoted market price in an active market and where fair value cannot be reliably measured is stated at cost, including transaction costs, less impairment losses. Gains and losses, both realized and unrealized, arising from the change in the financial assets at fair value through profit and loss are reported in other income. All nontrading financial liabilities, originated loans and receivables and heldtomaturity assets are measured at amortised costs less impairment losses. Amortized cost is calculated on the effective interest method. On disposal or on maturity of an investment, the difference between the net proceeds and the carrying amount is included in the Statement of Comprehensive Income. When availableforsale assets are sold, converted or otherwise disposed of, the cumulative gain or loss recognized in equity is transferred to the Statement of Comprehensive Income. v) Impairment of financial assets The Credit Union assesses at each Statement of Financial Position date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a "loss event") and that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

17 15. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (f) Financial instruments (cont'd) v) Impairment of financial assets (cont'd) Objective evidence that a financial assets or group of financial assets is impaired includes observable data that comes to the attention of the Credit Union about the following loss events: * Significant financial difficulty of the issuer or obligor. * A breach of contract, such as default or delinquency in interest or principal payments. * It becoming probable that the borrower will enter in bankruptcy or other financial reorganization. * The disappearance of an active market for that financial asset because of financial difficulties. * Observable data indicating that there is a measurable decrease in the estimated cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets in the group, including adverse changes in the payment status of borrowers in the Credit Union or national or economic conditions that correlate with defaults on assets in the Credit Union. (g) Income recognition Interest on members' loans and fixed deposits are accounted for on the accrual basis. Interest on saving and current accounts and dividend income are accounted for on the cash basis. (h) Members' special deposits Members' special deposits bear interest at rates approved by the Board of Directors. The Board of Directors periodically reviews these rates.

18 16. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (i) Employee benefits The Alston's Pension Fund Plan covers monthly paid employees. This is a contributory defined pension plan that offers members' retirement benefits in accordance with the Plan's Trust Deed and Rules. Trustees administer the pension plan and the Trust is entirely divorced from the Credit Union's finances. The pension accounting cost for the plan is assessed using the project unit credit method. Under this method, the cost of provided pensions is charged to the statement of comprehensive income so as to spread the regular cost ofa qualified actuary, who carries out a full valuation of the plan every year. The Credit Union also provides post retirement health benefits to their retirees. The entitlement to these benefits is based on the employee remaining in service up to the retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment, using an accounting methodology similar to that of the defined benefit plan. (j) Unclaimed Dividends In accordance with Bye Law 8(a) of the Credit Union, all dividends to members remaining unclaimed after one (1) year from the date of declaration are transferred to Unclaimed Dividends. Any sum remaining unclaimed in this account for two (2) years may be transferred to the Reserve Fund. (k) Dividends Dividends are recommended by the Board of Directors and approved by the members at the Annual General Meeting. Dividends are an appropriation of retained earnings as disclosed in the Statement of Changes in Members' Equity and Reserves. In accordance with IAS # 10, the dividends are not accounted for as a liability at yearend. The dividends are computed on the basis of the average number of shares in issue throughout the year, the average being determined on the basis of the number of shares in issue at the end of each month.

19 17. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 2. Significant Accounting Policies (Cont'd): (1) Foreign Currency Transactions in foreign currencies are translated at the rate of exchange ruling at the transaction date. Foreign monetary assets and liabilities denominated in foreign currencies are expressed in Trinidad and Tobago dollars at rates of exchange prevailing at the Statement of Financial Position date. Resulting translation differences and profits and losses from trading activities are included in the Statement of Comprehensive Income. 3. Financial Risk Management: Financial risk factors The Society's activities are primarily related to the use of financial instruments. The Society accepts funds from members and earns interest by investing in equity investments, government securities and onlending to members at higher interest rates. Financial Instruments The following table summarizes the carrying amounts and fair values of the Society's financial assets and liabilities: Carrying Value 2015 Fair Value Financial Assets Cash in hand and at bank $ 9,989,128 $ 9,989,128 Other financial assets (Shortterm investments) 27,764,254 27,778,552 Accounts receivables and prepayments 705, ,828 Amounts due from Members' Companies 853, ,600 Loans to members 109,514, ,514,555 Other financial assets (Longterm investments) 14,341,450 19,967,682 Employee benefit assets 5,671,000 5,671,000 Financial Liabilities Accounts payable and accrued charges 854, ,904 Members' deposits: Christmas Saving Plan (shortterm) 202, ,681 Members' deposits: Education Saving Plan (shortterm) 190, ,383 Members' savings and pooled funds (longterm) 9,045,191 9,045,191 Employee benefit obligation 87,000 87,000 Members' shares 151,378, ,378,917

20 18. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) Carrying Value 2014 Fair Value Financial Assets Cash in hand and at bank $ 7,915,958 $ 7,915,958 Other financial assets (Shortterm investments) 28,939,471 29,287,234 Accounts receivables and prepayments 806, ,012 Amounts due from Members' Companies 821, ,016 Loans to members 103,983, ,983,395 Other financial assets (Longterm investments) 14,010,058 18,773,246 Employee benefit assets 4,082,000 4,082,000 Financial Liabilities Accounts payable and accrued charges 665, ,270 Members' deposits: Christmas Saving Plan (shortterm) 179, ,271 Members' deposits: Education Saving Plan (shortterm) 180, ,027 Members' savings and pooled funds (longterm) 7,785,488 7,785,488 Employee benefit obligation 53,000 53,000 Members' shares 146,177, ,177,091 The Society 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 Society 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 because of changes in market interest rates. The Society 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 bonds, loans, customer deposits and other funding instruments.

21 19. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) (a) Interest rate risk The exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields. i) Bonds The Society invests mainly in medium term bonds consisting of fixed rate instruments. The market values of the fixed rate bonds are not very sensitive to changes in interest rates. The market values of the floating rate bonds are sensitive to changes in interest rates. The longer the maturity of the bonds, the greater is the sensitivity to changes in interest rates. Because these assets are being held to maturity and are not traded, any changes in market values will not impact the Statement of Income. ii) Loans The Society generally invests in fixed rate loans to members for terms that average five years, however, mortgage loans can extend to a maximum of twenty (20) years. These are funded mainly from member deposits and shares and loan repayments.

22 $ $ 705, ,904 87, AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) Interest rate sensitivity analysis The Society'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 Non Effective Up to 1 to Over Interest Rate A 5_years 5m Bearing Total Financial Assets Cash in hand and at bank 0.01% $ 9,562,304 $ Other financial assets 4.02% 27,778,552 Accounts receivables and prepayments Amounts due from Members' Companies 853,600 Loans to members 12.00%. 2,242,? 18 32,700,131 74,572,206 Other financial assets 400% 2,676,916 17,290,766 Employee benefit assets 5.00% 426,824 $ 9,989,128 27,778, , ,600 _LO9, H4, 19,967,682 5,671,000 5,671,000 Financial Liabilities Accounts payable and accrued charges Members' deposits: Christmas Saving 1.00% 202,681 Members' deposits: Education Saving 1.00% 190,383 Members' savings and pooled funds 0.75% 9,045,191 Employee benefit obligation 5.00% Members' shares 5.30% 151,378, , , ,383 9,045,191 87, ,378,917

23 $ 821,016 $ 21. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) Interest rate sensitivity analysis (cont'd) 2014 Non Effective Up to 1 to Over Interest Rate & M & Bearing Total Financial Assets Cash in hand and at bank 0.01% $ 6,491,233 $ Other financial assets 4.02% 28,939,471 1,424,725 $ 7,915,958 28,939, , ,012 Amounts due from Members' Companies 821,016 Loans to members 12.00% 3,498,806 80,731,379 19,753, ,983,395 Accounts receivables and prepayments Other financial assets 4.00% 1,546,839 3,107,052 14,119,355 Employee benefit assets 5.00% 4,082,000 4,082, ,027 Financial Liabilities Accounts payable and accrued charges 665,270 Members' deposits: Christmas Saving 1.00% 179, , ,272 Members' deposits: Education Saving 1.00% 180,027 Members' savings and pooled funds 1.00% 7,785,489 Employee benefit obligation 5.00% 53,000 7,785,489 53,000 Members' shares 5.60% 146,177, ,177,091

24 22. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) (b) Credit risk 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 Statement of Financial Position date. The Society relies heavily on a written Loan Policy Manual, which sets out in detail the current policies governing the lending function and provides a comprehensive framework for prudent risk management of the credit function. Adherence to these guidelines is expected to communicate the Society's lending philosophy; provide policy guidelines to team members involved in lending; establish minimum standards for credit analysis, documentation, decision making and postdisbursement administration; as well as create the foundation for a sound credit portfolio. The Society's loan portfolio is managed and consistently monitored by the Credit Committee 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 Society has policies to limit the amount of exposure to any single financial institution. The Society 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 dates of assets and liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Society 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 Society is able to make daily calls on its available cash resources to settle financial and other liabilities.

25 2,676,916 87,000 $ 5,671,000 $ 23. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) (c) Liquidity risk (cont'd) i) Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Society. The Society employs various asset/liability techniques to manage liquidity gaps. Liquidity gaps are mitigated by the marketable nature of a substantial segment of the Society's assets as well as generating sufficient cash from new and renewed members' deposits and shares. To manage and reduce liquidity risk the Society's management actively seeks to match cash inflows with liability requirements. ii) Liquidity Rap The Society's exposure to liquidity risk is summarized in the table below which analyses assets and liabilities based on the remaining period from the Statement of Financial Position date to the contractual maturity date Up to 1 to Over Total Financial Assets Cash in hand and at bank $ 9,989,128 $ Other financial assets 27,778,552 Accounts receivables and prepayments 705,828 Amounts due from Members' Companies 853,600 9,989,128 27,778, , ,600 Loans to members 2,242,218 32,700,131 74,572, ,514,555 Other financial assets 17,290,766 19,967,682 Employee benefit assets 5,671, , , , ,378,917 Financial Liabilities Accounts payable and accrued charges 854,904 Members' deposits: Christmas Saving 202,681 Members' deposits: Education Saving 190,383 Members' savings and pooled funds 9,045,191 Employee benefit obligation 9,045, ,00() Members' shares 151,378,917

26 53,000 $ $ 24. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) (c) Liquidity risk (cont'd) 2014 Up to 1 to Over & & Total Financial Assets Cash in hand and at bank $ 7,915,958 $ 7,915,958 Other financial assets 29,287,234 29,287,234 Accounts receivables and prepayments 806, ,012 Amounts due from Members' Companies 821, ,016 Loans to members 3,498,806 80,731,379 19,753, ,983,395 Other financial assets 1,546,839 3,107,052 14,119,355 18,773,246 Employee benefit assets 4,082,000 4,082,000 Financial Liabilities Accounts payable and accrued charges 665,270 Members' deposits: Christmas Saving 179,272 Members' deposits: Education Saving 180,027 Members' savings and pooled funds 7,785,489 Employee benefit obligation Members' shares 146,129, , , ,027 7,785,489 53, ,129,730 (d) 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 recognized assets and liabilities are denominated in a currency that is not the Society's measurement currency. The Society is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Society's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. (e) Operational risk Operational risk is the risk derived from deficiencies relating to the Society's information technology and control systems, as well as the risk of human error and natural disasters. The Society's systems are evaluated, maintained and upgraded continuously. Supervisory controls are installed to minimize human error. Additionally, staff is often rotated and trained on an ongoing basis.

27 25. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 3. Financial Risk Management (Cont'd): Financial Instruments (cont'd) (f) Compliance risk Compliance risk is the risk of financial loss, including fines and other penalties, which arise from noncompliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Inspector of Financial Institutions at the Central Bank of Trinidad and Tobago, as well as by the monitoring controls applied by the Society. The Society has an Internal Audit Department which does routine reviews on compliance. (g) Reputation risk The risk of loss of reputation arising from the negative publicity relating to the Society's operations (whether true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Society. The Society engages in public social endeavours to engender trust and minimize this risk. 4. Critical Accounting Estimates and Judgments: The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgments, estimates and assumptions in the process of applying the Credit Union's accounting policies. See Note 2 (b). Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events, which are believed to be reasonable under the circumstances. The Credit Union makes estimates and assumptions concerning the future. However, 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.

28 TT$ US$ 26. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 4. Critical Accounting Estimates and Judgments (Cont'd): The critical judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i) Whether investments are classified as held to maturity investments, available for sale or loans and receivables. ii) Which depreciation method is used for fixed assets. The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date (requiring management's most difficult, subjective or complex judgments) 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 Statement of Financial Position 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. The 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 judgment in determining whether future economic benefits can be derived from expenditure to be capitalised and in estimating the useful lives and residual values of these assets. 5. Cash in Hand and at Bank: 31 December Cash in hand $ 10,000 $ 10,000 Cash in transit 416,824 1,414,725 Trinidad and Tobago Unit Trust Corporation Income Fund 2,718, ,908 Money Market Fund 2,861,711 2,568,236 Bourse Savinvest Structured Fund 1,339,124 RBC Royal Bank (Trinidad and Tobago) Limited Dividend Account 187,687 2,493 RBC Royal Bank (Trinidad and Tobago) Limited Multilplier Account 3,794,579 1,876,472 S 9.989,128 S 7,

29 Income Mortgage Savinvest Pooled MSCI 27. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 6. Other Financial Assets: 31 December Heldtomaturity Caribbean Finance Company Limited $ 3,822,088 $ 3,657,501 Availableforsale Trinidad and Tobago Unit Trust Corporation and Growth Fund 4,374,190 4,303,093 RBC Royal Bank (Trinidad and Tobago) Limited ROYTRIN Mutual Funds 2,678,118 1,751,046 Bourse Securities Limited Fund 975,834 Mutual Funds held with Republic Securities 374, ,550 KCL Capital Market Brokers Limited funds 1,000,000 1,881,606 AIC Securities Limited 3,000,000 Ansa Merchant Bank Limited 8,119,409 7,174,691 Firstline Securities Limited 4,000,000 4,000,000 Home Mortgage Bank Participation Fund 1,303,899 Guardian Asset Management Limited 2,106,074 2,076,913 23,956,464 25,629,733 S ,552 $ 29, Accounts Receivable and Prepayments: 31 December Interest receivable on fixed deposits $ 135,845 $ 176,580 Interest on loans 294, ,058 Prepayments 60,116 53,486 Family Indemnity Plan claims receivable 119,789 Staff Advances 7,411 Bond interest receivable 143, ,288 Other receivables 28,991 Rentreceivable 42,975 30,400 $

30 Agents $ 28. AMGECU CREDIT UNION COOPERATIVE SOCIETY LIMITED 8. Amounts due from Members' Companies: 31 December MBM Crown and Equipment $ 65,068 Alstons Marketing Company Limited 159,540 Alstons Shipping Limited 55,164 59,146 Alstons Building Enterprises Limited 149,463 Ansa Finance and Merchant Bank Limited 16,465 18,189 Ansa Polymer 124, ,996 Ansa Technologies Limited Carib Glassworks Limited 104,047 Penta Paints Caribbean Limited 57,246 42,559 Windsor Construction Company Limited 18,597 18,930 Trinidad Publishing Company Limited 42,436 43,064 Ansa Mc Al Limited 63,949 55,840 Ansa Mc Al Chemicals Limited 190 Brick Fource Limited/Bestcrete 105,606 Standard Distributors Limited 142,495 Caribbean Development Company Limited 1,000 Trinidad and Tobago Insurance Limited (TATL) (3,000) 29,455 Tatil Life Assurance Limited 28,154 Tatil Life 48,173 Trinidad Match Factory Limited 8,976 6,011 Pensioners 48,050 OTC payroll group 22,939 15,750 $ S 821, Loans to Members: Loans to members are stated at principal outstanding net of provision for loan losses. The provision for loan losses is based on the Board's evaluation of the loan portfolio under current economic conditions and past loan loss experience. 31 December Loans to members $ 111,477,287 $105,694,041 Less: Provision for loan losses (1,962,732) (1,710,646) Provision for loan losses $ ,555 $ ,395 Balance at beginning of year $ 1,710,646 $ 1,610,642, Charge for the year 252, ,004 Balance at end of year $ 1,962,732 $ 1,