2017 · 2019-03-14 · Notice is hereby given that the Seventy-Eighth Annual General Meetingof the Members of the New Building Society Limited will be held at 10.30 a.m on Saturday,

The New Building Society Limited

Annual Report2017

2. Mission Statement

2. BusinessObjective

3. NoticeofMeeting

4. CorporateInformation

5. Five-yearStatisticalInformation

5. FinancialHighlights

7. Chairman’sReport

10. BoardofDirectors

12. CEO/Director/Secretay’sReport

17 StaffMatters

18. ManagementTeam

20. ReportofDirectors

22. ReportoftheDirectorsonCorporateGovernance

24. ReportoftheIndependentAuditors

27. StatementofFinancialPosition

28. StatementofProfitorLossandOtherComprehensiveIncome

29. StatementofCashFlows

30. NotestotheFinancialStatements

59. OurContributionsandSponsorships

Contents

Annual Report 2017 1


Toprovideourmemberswiththevery

bestMortgageandSavingsproducts

throughalargenetworkofbranches,

moderntechnologyandadisciplined,

affableandwelltrainedstaffandto

upholdoursocialresponsibilities

throughinvolvementinworthwhile

communityprojects.

ToprovideabroadrangeofMortgageandSavings

Productsthroughawidenetworkofbranches.

Toprovideindependentfinancialadviceonproductsoffered.

Topracticeprudentmanagementtoensurefinancialstability.

Toprovideexcellentcustomerserviceusingtechnologyandahighlyefficientanddisciplinedstaff.

Toprovideemployeeswithveryfavorableworkingconditionstherebyenhancingtheirpersonalgrowthanddevelopment.

Tobearespectedandappreciatedcorporatecitizen.

Mission Statement

Business Objective

Annual Report 20172


NoticeisherebygiventhattheSeventy-EighthAnnualGeneralMeetingoftheMembersoftheNewBuildingSocietyLimitedwillbeheldat10.30a.monSaturday,21stApril,2018attheSociety’sChiefOfficeatLot1NorthRoad&AvenueoftheRepublic,Georgetown.

AGENDA

1. ToreceivetheFinancialStatementsandtheReportsoftheDirectorsandAuditorsfortheyearended31stDecember,2017.

2. ToelectDirectorsinaccordancewithRule47(1).TheDirectorsretiringbyrotationareDr.NandaK.GopaulandMr.SeepaulNarinewhobeingeligible,offerthemselvesforre-election-Rule47(2).

3. TofixtheremunerationoftheDirectorsfortheyear2018.

4. ToappointAuditorsfortheyear2018. 5. TofixtheremunerationoftheAuditorsfortheyear2018.

6. Toapprovethesumofeight million dollars ($8,000,000.00)fordonationstoCharityandforEducationalpurposesfortheyear2018.

7. TotransactanyotherbusinessofwhichduenoticeshallhavebeengiveninaccordancewithRule36.

ByOrderoftheBoard,

………………………..AnilKishunCEO/Director/Secretary14thFebruary,2018

Please Note:

• OnlyMembersholdingatleastoneofthefollowingAccountsareentitledtoattendthemeeting– Save&ProsperAccounts -minimumbalance$1,000: FiveDollarShareAccounts -minimumbalance$1,000:

• OnlyfirstnamedMembersholdinganyoftheAccountsmentionedabovewillbeallowedentry.

• AproxyneednotbeamemberoftheSociety. AMembermayupliftoneproxyformfromanyoftheSociety’sOfficesandtheformmustbereturnednolaterthan2.30p.m.onFriday,13thApril,2018.

• AnyCompanywhichisaMemberoftheSocietymaybyresolutionofitsDirectorsauthorizesuchpersonas

itthinksfittoactasitsrepresentativeatthemeeting.

• PleasebringyourPassbookandsomeformofIdentificationtogainentrytotheMeeting.

Notice of Meeting



Corporate InformationBOARDOFDIRECTORS FloydMcDonald-Chairman SeepaulNarine-Vice-Chairman Dr.NandaK.Gopaul EdwinVerasammy KalyanTiwari ChandrawatiRamson AnilKishun-CEO/Director/Secretary

CHIEFOFFICE 1NorthRoad&AvenueoftheRepublic, Georgetown,Guyana. Tel:227-4444.Fax:225-0832 Website:www.nbsgy.com Email:[email protected]

BRANCHES NewAmsterdam 15-16NewStreet,NewAmsterdam, Berbice,Guyana. Tel:333-2157,2893,5024.Fax:333-5642

Rosignol 196Section‘A’,Rosignol, WestCoastBerbice,Guyana. Tel:330-2341.Fax:330-2268

Corriverton 31No.78Village,Corriverton, Corentyne,Berbice,Guyana. Tel:335-3239.Fax:335-3344 Rosehall 26BPublicRoad,Williamsburg, Corentyne,Berbice,Guyana. Tel:322-5035.Fax:322-5036

Mackenzie 34ARepublicAvenue,Mackenzie, Linden,Guyana. Tel:444-6543.Fax:444-6066 Essequibo 29Henrietta, EssequiboCoast,Guyana. Tel:771-4956.Fax:771-4954

ATTORNEYS-AT-LAW Messrs.Cameron&Shepherd 2AvenueoftheRepublic, Georgetown,Guyana.

Messrs.McDoom&Co. 215KingStreet&SouthRoad, Lacytown, Georgetown,Guyana.

BANKERS BankofNovaScotia 104CarmichaelStreet, NorthCummingsburg, Georgetown,Guyana.

RepublicBank(Guyana)Limited 38-40WaterStreet,Robbstown, Georgetown,Guyana.

BankofBaroda(Guyana)Inc. 10AvenueoftheRepublic,Robbstown, Georgetown,Guyana. GuyanaBankforTrade&Industry

Limited 47-48WaterStreet,Robbstown, Georgetown,Guyana.

DemeraraBankLimited 214CampStreet,NorthCummingsburg, Georgetown,Guyana.

CitizensBankGuyanaInc. 231-233CampStreet&SouthRoad, Lacytown,Georgetown,Guyana.

AUDITORS MauriceSolomon&Company 92OronoqueStreet,Queenstown, Georgetown,Guyana. Tel:227-5568.Fax:227-5564

Annual Report 20174


Five-Year Statistical Information (2013-2017)

Financial Highlights

Profitability (2013-2017)

DESCRIPTION 2013$M

2014$M

2015$M

2016$M

2017$M

PROFIT 993 1,447 1,259 1,277 1,279TOTAL ASSETS 53,973 56,440 58,872 59,811 63,236TOTAL MORTGAGE BALANCE 32,880 36,946 37,368 37,288 38,513INVESTMENTS 17,972 16,211 18,130 19,426 21,389TOTAL SAVINGS BALANCE 44,730 45,883 47,186 47,005 49,055RESERVES 8,950 10,377 11,455 12,638 14,063MORTGAGE LOANS DISBURSED FOR YEAR 7,764 6,843 3,623 3,196 4,235

1600

1400

1200

1000

800

600

400

200

0

$Mill

ions

2013 2014 2015 2016 2017YEAR

Asset Composition31st December 2017 Income Distribution 2016

Loans Assets

$38,512,771,000

$507,884,000 $18,552,000$396,761,000

$273,540,000

$1,628,692,000

$2,400,827,000

$22,587,064,000

Investments and Cash

Fixed Assets

Other Assets

Loans Assets

Investments

Cash Resources

Other Income

993

1447

1259 1276 1279

DESCRIPTION 2013$M

2014$M

2015$M

2016$M

2017$M



Financial Highlights (cont’d)SAVINGS GROWTH 2013 - 2017

ASSET GROWTH 2013 - 2017

2013 2014 2015 2016 2017

$Mill

ions

44,730

50,000

49,000

48,000

47,000

46,000

45,000

44,000

43,000

42,000

45,883

47,186 47,006

49,055

2013 2014 2015 2016 2017

$Mill

ions

32,880

39,000

38,000

37,000

36,000

35,000

34,000

33,000

32,000

31,000

30,000

36,946

37,368 37,288

38,513

2013 2014 2015 2016 2017

$Mill

ions

53,973

64,000

62,000

60,000

58,000

56,000

54,000

52,000

50,000

48,000

56,440

58,872

59,811

63,236

MORTGAGE GROWTH 2013 - 2017

Annual Report 20176


Chairman’s Report

Thisyear,aswecelebratethe78thAnniversaryoftheNewBuildingSocietyLimited,Iampleasedtoreport thatwehaveonceagaindonewell

despiteacontractionineconomicactivitiesnationally.TheSocietyrecordedaprofitof$1.279Bfortheyearended2017whichisslightlyabovethepreviousyear’sfigureof$1.277B.

Asanorganisationthatispremisedonmembership,theSocietycontinuestopursuetheconceptofmutuality,striving tobalance the interestsofour saversandborrowersequitably. It is importanttonotethattheSocietyhasmanagedtomaintainconsistentBalanceSheetgrowthwhichisakeyindicatorofoverallgrowthoftheorganisation.

TheDirectorsoftheSocietyareevermindfuloftheuncertaintiesintheFinancialSectorinGuyanaandasaresult,conductperiodicreviewsofourdaytodayoperationsinkeepingwithbestpracticesincorporategovernance.Wealsorecognisethatitisvitaltocontrolcostsandtoexerciseprudenceinourmortgagelending

tomaintainourcompetitiveposition inthemarketplace.

ECONOMICREVIEW

In2017,theworldeconomyrecoveredslightlyfrom2016asaresultof increasedinvestments,tradeandproduction. TheWorld EconomicOutlook reportpointedtoaglobalgrowthof3%in2017,amere0.4%higherthan2016. Italsoprojectedthatthisgrowthwill increasemarginallyto3.7%in2018.Theoverallworldgrowthcanbeattributedtoprogressachievedbytheadvancedeconomiesthroughincreasedglobaldemandsforcommoditiesandstrongerexports.

In2018,however, this saidgrowth isexpected todeclineinallmajoreconomiesexcepttheUnitedStatesandFrance.TheUnitedKingdomisalsoexperiencingdeclininggrowthasthepoundsterlingweakenswiththeeffectsofBrexit.China’seconomyontheother-handexpandedin2017anditisanticipatedtocontinuetogrowin2018.

The Society recorded a profit of $1.279B for the year ended 2017

which is slightly above the previous year’s figure of $1.277B



TheCaribbeanandLatinAmericaneconomieswhichsufferedcontinueddeclineover the last fewyears,recordeda growthof less than1%at theendof2017accordingtotheCaribbeanDevelopmentBank.Growth in theCaribbeaneconomies isanticipatedtoincreasetoapproximately2%bytheendof2018.AlthoughGuyana experienced economic growthduring2017,comparedto2016,manyofourfellowCaribbeanneighbours likeTrinidad&TobagoandSurinameexperienceddownturns.Eventhoughthereistheexpectationthattheseeconomieswillrecoverin2018,theentireregionmustremainwaryofthethreatofincreasedclimaterelateddisasters,tighteningglobalfinancialconditionsandvolatilecommodityprices.

Guyana’s economy grewby approximately 3% in2017comparedto2.6% in2016.This isasaresultofrecovery inagriculture,fishing,rice, livestockandothercropssectorswhichcompensatedforthedeclineinthesugarandforestryindustries.

The mining and quarrying sectors declined byapproximately1.9%compared to46.1%growth in2016.Howeverthemanufacturing,constructionandservicessectorsall recordedgrowth in2017,whilstgoldproductionremainedstable.

FINANCIALRESULTS

WetheDirectorsareproudtoinformourmembersthatdespitethemanyhardshipsexperiencedthroughouttheyear2017,theSocietyrecordedaprofitinexcessof$1Billiondollarseven though thesmall spreadbetweensavingsandmortgageratesweremaintainedduringtheyear.

Thisistobeseenagainstthebackdropofapaucityofinvestmentopportunitiesotherthaninthemortgagesector.

TheSocietywillcontinuetostrivetoadjustitsstrategiesandpolicies toensure thatourbusiness remainsprofitable,whilstat thesametime,providequalityservicestoourmembers.Overtheyears,theSocietyhasalwaysbeenconsciousof theneedtomanagecostscarefullyandourprudentstrategiesare in linewithourmodernmutualityconcept.AsaBuildingSociety,ouraimistorunastable,lowriskorganizationforthebenefitofourmembers.

Wewillcontinuetobecognizantof thechanges intheregulatoryenvironmentandtakeallthenecessary

stepstocomplywiththeAntiMoneyLaunderingandCounteringtheFinancingofTerrorismActinGuyanaaswellasthecapitaladequacyrequirements.

REVENUE

Interestincomefor2017was$3.1B,thesameaslastyear2016$3.1B.Earningson loanassetswere78%oftotal interest income(2016-77%).AstheSocietycontinuedtogrow,wewereabletokeepourexpensesinlinewiththebudgetedtargets.

ASSETS

Assetsgrewby5.7%to$63.2Bin2017,comparedto2016whichwas$59.8B.

SAVINGS

TheSociety’sDepositbaseasatDecember31,2017was$49Bcomparedto$47Bin2016.ThetraditionalBuildingSocietyprincipleofmutuality remainsourcornerstone aswe continue to deliver excellentcustomerservicetoourmembers.Weactively lookafterourmembers’ interestsbyofferingcompetitiveinterestratesonbothsavingsandmortgages.

MORTGAGES

Despite therebeing increasingcompetition in themortgagemarket,theSocietyhasmanagedtokeepitsratesstablewhetherborrowerswererenovating,purchasingorconstructingtheirownhomes.Wehavealso,overtheyears,supportedfirsttimehomeownersbyoffering soundadvicebasedonour immenseexperienceaccumulatedovertheyears.

Themortgageportfolioattheendof2017was$38.5Bcomparedto$37.3Battheendof2016,anincreaseof3.2%.

Thisgrowth inthemortgageportfoliowasachieveddespite greater competition in the industry anddecliningmarketopportunities.Notwithstandingthesechallenges, theSocietykept its interestratescompetitively priced and used a combination ofappropriatelendingcriteriaandhighqualityservicetoachievegrowth.

Ourapproachtodealingwithpeopleexperiencingfinancialdifficultiesisthemainreasonforourcontinuedlow levelofarrearscomparedtoourcompetitors.

Chairman’s Report (Cont’d)

Annual Report 20178


However,factorsinourexternalenvironmentcontinuetobevolatileand thesecanhaveasevere impacton ourmembers’ ability tomeet their financialobligations.Members,whoareaffectedby theseadverseconditions,willbesupportedbytheSocietythroughfinancialflexibilityandhumanunderstanding.

COMPLIANCE

TheSocietyhasbeenadheringtoallaspectsoftheAntiMoneyLaunderingandCounteringtheFinancingofTerrorismregulationsinclusiveoftheamendmentsmaderecently.

CUSTOMERFOCUS

TheBoardofDirectorsalsorecognisesthatservicetoourmembersisvitaltoourcontinuedfinancialsuccess.To thisend,weensure thatourcustomers receiveexcellentservicebycontinuouslyinvestinginthecareerdevelopmentofourstaff.Additionally,wecontinuetocare forourmembersbymaintainingcompetitivesavingsratesinalowinterestrateenvironment.

Ourmembersremainournumberonepriorityandwecontinuetoofferourservicesthroughournetworkofbranches inGeorgetown,Linden,EssequiboandBerbice.

CORPORATESOCIALRESPONSIBILITY

Inanefforttocontinuetobeagoodcorporatecitizen,weattheNewBuildingSocietycontinuetointegratesocial,environmentalandethicalissuesatalllevelsinourdaytodayoperationsandoverallstrategies.

Weat theNewBuildingSocietydemonstrateourcommitment toour social responsibility throughourdonationinitiativetargetingbothcharitableandeducational institutionsonamonthly,quarterlyandannualbasis.Ourtrackrecordwillshowthatwehavesponsoredanumberofcharitable,educationalandsportsrelatedprojectsovertheyears.

EMPLOYEES

Inordertobestserveourmembers,weattheSociety,continuouslydevelopand invest inouremployeesthroughin-houseandexternaltrainingprograms.Wealsostrivetoprovideastable, lowriskenvironmentforouremployeestoworkin,alongwiththerequisitetools andadequate compensationpackages.Ouraim is toattractandretainappropriatelyqualifiedandexperiencedemployeestoachieveourgoalofprovidingexcellentcustomerservicetoyou,ourvaluedmembers.

TheSocietyactively supportsemployeespursuingpersonalgrowthinattainingprofessionalqualificationsviaour trainingandeducationaldevelopmentandfinancialassistanceprograms.

OUTLOOKTOTHEFUTURE

Notwithstandingthemanychallengesinthebankingsector, theSocietycontinuedtoexperiencegrowthinitsmortgageandsavingsportfoliosandtotalassetsbase.Weremainoptimisticabouttheexpansionofthehousingsector inGuyana,particularlyabouttherolewecanplayin increasingthenumberofhousesnationwide.

TheNewBuilding Society is in a strong financialpositionand remainsa leadingFinancial ServicesProvider.Aswe looktothefuture,wewillcontinuetomonitorgrowthandseektoimprovekeyfinancialindicatorssuchasprofitmargin,returnonassetsandnon-performingloanstonameafew.

The year 2018will undoubtedly present its ownchallenges.However,theSocietywillstrivetoovercometheseandpursue furthergrowthby firmlystickingtoourmutualvaluesandresponsibilitiestoyou,ourvaluedmembers.

Wewill continuetomonitorchanges in legislationaffectingthefinancialsectorinGuyanaespeciallyasitrelatestotheAntiMoneyLaunderingandCounteringthe Financing of Terrorism Act with the aim ofimplementingsame.

ACKNOWLEDGMENT

AsChairmanoftheBoardofDirectors,Iwouldliketotakethisopportunitytothankallofyou,ourmembersforyourcontinuedloyalsupportthroughouttheyears.Asaresultofthissupportandconfidence,theSocietywasabletomaintainitsfinancialstrengthandstrongbalancesheet.

IalsowishtocommendtheManagementandstaffoftheSocietyfortheircommitmenttothegoalsandobjectivesoftheSocietyandwearegratefulforyourcontinuedsupportfortheyearsahead.

TomyfellowDirectors,Iwishtorecognizeyourvaluablesupporttothesuccessful functioningoftheSocietyduringtheyear2017.

………………………………………………FloydMcDonaldChairman14thFebruary,2018



Board of Directors

Floyd McDonald, Chairman

Dr. Nanda K. Gopaul, DirectorSeepaul Narine, Vice - Chairman

Annual Report 201710


Anil Kishun, CEO / Director / Secretary

Edwin Verasammy, Director Kalyan Tiwari, Director

Edwin Verasammy, DirectorChandrawati Ramson, Director



CEO/Director/Secretary’s Report

TheprimaryfocusoftheNewBuildingSocietyLtd.istoensurethattheSocietyhasasustainablefuturebasedonexcellent customer service

andstrongfinancialandriskmanagementpolicies.Toachieve this, theSocietyactivelypromotesanenvironmentthatcanquicklyadapttochangeswhichhopefullycantranslateto improvementsofservicedeliverytotheSociety’scustomers.

Ourcustomersareourgreatestassetandweplacethemattheheartofeverythingwedo.IampleasedtoreportthattheNewBuildingSocietyLtd.hasonce

againdeliveredanothersolidfinancialperformance.Theyear2017wasanotherchallengingyear forusanddespitethis,wewereabletorecordaprofitof$1,279M.

Asamutualorganization, theSocietyconsistentlyprioritizesthedeliveryofgood long-termvaluestoourmembershipandcustomersbymaintainingastrongandsustainablebusinessmodel. Ourgoal istogeneratesufficientprofittomaintainthefinancialhealthoftheSocietyanditsmembers.

The Society’s products continue to be very attractive

to the market as at the end of 2017, our Investors Balance was $49B while

the Mortgage Portfolio was $38.5B, covering just under

10,000 homes.



TheSociety’s corebusinessmission is tohelpourcustomers toowntheirownhomes,managetheirfinancesandprovideasafeplacefortheirSavings.TheSociety’smutualityconceptprovidesabusinessenvironmenttomakesurewedeliverthebestratesofreturnonSavingsandthemostcompetitivelendingrates to our customers.

Thegoalof theSociety isprofit sufficiency ratherthanprofitmaximisation.This istoensurethesafetyandstabilityofourmembers’ interests,adequatecapitalstrengthandresiliencetomarketforces.Thisconceptalsogivesustheabilitytofurther invest intheSociety’sbusiness infrastructuretobetterserveourcustomers. In2017, themodern facilityofourCorrivertonBranchOfficewasdesigned tobetterserveourcustomersinthatarea.Wealsocontinuedthedrivetomodernizeourtechnologiessoastoallowmoremarketcompetitivenessandefficiency.

TheSociety’sproductscontinuetobeveryattractivetothemarketasattheendof2017,ourInvestorsBalancewas$49BwhiletheMortgagePortfoliowas$38.5B,coveringjustunder10,000homes.Ourassetsbaseisnow$63.2Bwithreservesof$14B.

ECONOMICREVIEW

TheGlobalEconomyexperiencedacyclicalrecoveryin2017andgrowthfortheyearwasestimatedtobeapproximately3%.Thisgrowthwasduetoareboundininvestments,manufacturingactivitiesandtrade.Inparticular,thereboundinglobalinvestmentsaccountedformostof thegrowth in2017andwassupportedfavorablybyfinancingcosts,risingprofitsandimprovedbusinesssentimentsacrossbothadvancedeconomiesandemergingmarketsofdevelopingeconomies.TheGlobal growthoutcomes for2017weregenerallystrongerthanexpectedandtheoutlook,especiallyforadvancedeconomiessuchas those in theEurocountries,improvingthemost.

However, inmanycountries inflationstill remainedweakandEconomicGrowthstillcontinuedtobemajorissues formanyemergingmarketsanddevelopingeconomies inSub-SaharanAfrica, theMiddleEastandLatinAmericawheregrowthwasconsideredtobe lacklusterandwithseveralofthemexperiencingstagnantpercapitaincomefortheyear2017.

Guyana’seconomywasprojectedtogrowbythreepercent in2017, the sameasGlobalgrowth.This

growthwasexpectedtobefueledbyincreasesintheproductionofriceandmanufacturedgoodsaswellasintheactivitiesofconstructionandotherservices.Ontheotherhandtheoutputoftheminingsector,thesugarandforestry industrieswereexpectedtocontract.Howeverthecostofthepriceoffoodandfuelwasexpectedtoriseonlymoderately.

FINANCIALRESULTS

TheSociety recordedaprofit of $1.279B for theyear2017,marginallyabovethe$1.277Bfor2016.This financialperformancewasattaineddespiteachallenging yearwhereearningson liquidassetscontinuedtodecline.

REVENUE

Revenue frommortgages was $2.4B or 78% oftotalrevenueof$3.1Bfortheyear2017.MortgagecontinuedtobetheSociety’smajorrevenuestreamandmortgagedisbursementstotaled$4.2Bforyear2017comparedto$3.2Bfor2016.Thisincreaseinmortgagedisbursementscontrastedwiththedownwardtrendexperiencedinthetwopreviousyears.

RevenuefromCashResourcesandInvestmentswas$670Mfortheyear2017ascomparedwith$720Mfor2016.ThedecreaseinearningsonthesefinancialInstrumentswasasdirectresultofdecliningratesofearningsand limitedmarketopportunitiesforshorttermLiquidinvestments.

ASSETS

TheSociety’sAssetsattheendoftheyear2017was$63.2Brepresentingagrowthof$3.4Bor5.7%overthepreviousyear(comparedto1.6%for2016).TheAssetsgrowthwasaugmentedbyincreasedinvestmentsbytheSocietyinitscorebusiness(mortgages).

SAVINGS

Oursuperior interestratesofferedsawourSavingsPortfoliogrowby$2Bto$49B,anincreaseof4%over2016.ThegrowthintheSavingsBalancesaccountedfor58%oftheassetsgrowthoftheSociety.Wearemindfulthat,asamutualorganization,weareabletooperatedifferentlyandSaversareattheheartofeverydecisionwemake.Inparticular,ourprofitabilitytargetsaresetaroundbeing financially sustainable,whileensuring thatSaversgetanequitableshareof the



CEO/Director/Secretary’s Report (Cont’d)Revenues.Themembers’returnontheirinvestmentswas$1.1Bor35%ofTotalRevenue.

MORTGAGES

TheSocietyremainedfocusedonassistingborrowerstoowntheirownhomesatamostaffordablecost.Weprocessed1,081newMortgageapplicationsfortheyear2017,asignificantimprovementoverthepreviousyear’s656applications.2017wasanothersuccessfulyear forMortgagesgiventhechallengingeconomicconditions and an ever increasing competitiveenvironment inwhichwechoose tooperate. OurMortgagePortfoliogrewby$1.2Bor3%to$38.5Bfortheyear2017.

Thequalityofourmortgageportfolio ismonitoredbyManagementandtheBoardofDirectors,usinganumberof indicators toensureour levelofarrearsremains low.Despite this, delinquentmortgagesincreasedfromthepreviousyearwithnonperformingloansmovingfrom1%attheendof2016to1.69%attheendof2017oftheMortgagePortfolio.Enhancedmonitoringhassincebeenimplemented.

LIqUIDITY

TheSocietymaintainsaprudentlevelofliquidassetsandcontinuestoholdliquiditybalanceswellinexcessofregulatoryrequirements,primarilyinTreasuryBillsandBanksAccountswhicharereadilyconvertibletocash.TheSociety’sLiquidAssetsgrewby$2.1Bfrom$19.1Bin2016to$21.2Bin2017andcovers43%ofMembers’ funds (2016-40%).This levelof liquidityprovidesanadequatebufferintheeventofanymajorfunding issues arising andprovides comfort thattheSocietywillbeabletomeetanyotherfinancialobligationsunderstressfulscenarios.

CAPITALADEqUACYRATIO

WhilstaugmentingAssetsgrowthin2017,theSocietyalsomaintainedastrongcapitalpositionensuringallcapitalratiosweresignificantlyabovetheregulatoryrequirements.ThisratiowhichreflectsaccumulatedprofitscomparedtotheSociety’sriskweightedassetsrepresents thestrongestandmost robust formofcapitaladequacywhichstoodat51.5%attheendof2017comparedto47%attheendof2016.

CUSTOMERFOCUS

TheSocietybeingamutualorganization isable tohaveacustomercentricfocusoneverythingitdoes.Ourmortgageandsavingsproductsarecompetitivelydesignedtomeetourcustomerneedsandenhancingtheir long term value. The Society continues toplaceemphasisonallareasofouroperationsaswemodernizeourbusinessinfrastructuresandprocessestoefficientlyserveourcustomers.

We continuously engagewith our customers bylisteningtothemandunderstandingwhattheywantfrom theSociety. Thishelpsus tomake the rightdecisions intheirbest interests. In2017,theSocietycontinuedtoelectronicallymodernizeourcustomers’dataonourNewBankingSoftwarewhichprovidesuswiththetoolstoimproveourcustomerservice.

CORPORATESOCIALRESPONSIBILITY

Ithasalwaysbeenimportantforustoworktogetherwithallstakeholders inourcommunities.Wetargetgrassrootsorganizations thatdeliver realbenefitsandvalue to theseCommunities.Wecontinue toSponsorAnnualCrickettournamentswhichprovideopportunities foryoungcricketers to improveandshowcasetheirskills.

In2017, theSocietymadedonations toanumberofCharitableOrganizations,whichenabledthemtosupportahostofwelldeservingcausesandthosewhoseneedswereconsiderablythegreatest.Thesedonationssupportedthe invaluableworkofhelpingtheelderlyandothervulnerablemembers inourCommunities.

EMPLOYEES

Oneof theareasof focus inourcustomerservicestrategyisourhumantouch. Weensurethatthis ispartofourorganization’sculture.Weconsistentlyengagewithouremployeesforthemtounderstandtheirrespectiveroles.Thisgivesusthekeytobetterable to implement our strategy and to achieveourgoals.Weworkhard tosustainahigh levelofemployeecommitmentandprofessionalismtoourjobs.Thisisachievedbyreinforcingourdesiredcultureinaproactiveandpurposefulway,usingavariety



of tangibleand intangiblemethods suchas goodremunerationandbenefitspackage,acomfortableworkenvironmentandcontinuousonthejobtraining,amongothers.

OUTLOOKTOTHEFUTURE

Theyear2017wasanothergoodonefortheSociety.Werecordedhealthygrowth inbothmortgageandsavingsbalances thusachievinga strong financialperformance.Thecompetitivemarketenvironmentfor2018 isexpectedtobesimilar to thatof2017.Thecurrentmarkettrendsareexpectedtoimpactondisposable incomesformortgagorsandtherateofreturnsonInvestmentsforsavers.WeareconsciousoftheeffectofthisrealityonourbusinessandassuchtheSocietywillcontinuewith itsnaturallycautiousapproachaswestrivetofurthersolidifytheSociety’sAssetbase.

TheFinancialoutlookfortheSocietyremainshealthy.Weremainvigilant toallmarketuncertaintiesandwelcomeanynewregulatoryrequirementswhichwillstrengthentheresilienceoftheFinancialSector.We

arewellplacedtocapitalizeupontheallfuturemarketopportunitiesaswellasmanagetheresultantrisksthatmayarise.

ACKNOWLEDGEMENT

TheSocietywill continue to focusonmeeting theneedsofyou,ourmembers,throughsustainedgrowth.Iamconfidentthattheskilledanddedicatedstaffwillcontinue todeliveroutstandingcustomerservice.ThecontinuedguidanceoftheBoardofDirectorswillensuretheprogressandsuccessoftheSocietyin2018.Iwould like to thankyou,ourmembers for yourcontinued loyalty, Directors, staff and otherstakeholders foryourhardwork,commitmentanddedicationwhichresultedinanothersuccessfulyearforTheNewBuildingSocietyLtd.

………………………….AnilKishunCEO/Director/Secretary14thFebruary,2018



NBS provides loans for various categories of income earners.These are houses completed with funding from the Society.

Higher Income Residence

Middle Income Residence

Low Income Residence



Staff Matters

In 2017 six members of staff received Long Service Awards. Some served 25 years while others completed 15 years. The Directors, Management and other Staff extend heartfelt thanks to all and wish them continued success.

LONG SERVICE AWARDS GEORGETOWN LONG SERVICE AWARDS BERBICE

Miss Annamika Ramdat, daughter of Mrs. Sarojne Ramdat, Branch Manager, assists the Honorable Minister of Finance, Winston Jordan with cutting of the ribbon to open the new Corriverton Office Building.

The Chairman of the Board of Directors, Mr. Floyd Mc Donald with other Directors and Staff, stand alongside Mr. Rana Persaud, Captain of the Branches whose team won the Overall Champion Trophy from their counterparts from Georgetown.

RIBBON CUTTING AT BRANCH OFFICE OPENING

FUN DAY GATHERING 2017



Management Team

Anil Beharry, Assistant Secretary

Savitri Samaroo, Operations Manager

Mohamed MajeedIT Systems Administrator

Noel FernandesAssistant Manager - Mortgage

Rana PersaudManager, Berbice Operation



Bibi A. JagnarayanBranch Manager - Rosignol

Atma L. RajaramManager - Internal Audit

Sarojne RamdatBranch Manager - Corriverton

Sewchan RaghunandanBranch Manager - Essequibo

Gleniss RamsahoiBranch Manager - Mackenzie

Subrena BudhooBranch Manager - Rosehall



Report of The DirectorsFor The Year Ended December 31, 2017

TheDirectorsarepleasedtopresentthe78thAnnualReporttogetherwiththeauditedFinancialStatementsoftheNewBuildingSocietyLimited(NBS)fortheyearendedDecember31,2017.

PRINCIPALBUSINESSACTIVITIES

ThemainaimoftheNewBuildingSocietyistoprovideabroadrangeofqualityMortgageandSavingsProductsthatarewidelyavailablefromournetworkofbrancheslocatedacrossthecountry.Theseproductsandservicesaredeliveredwithquality,efficiency,courtesyandarereliability supportedbyourkeyvaluesof fairness,honesty, corporate responsibility,employees’andcustomers’prioritization.

BUSINESSHIGHLIGHTS:

ResidentialMortgageBalancesincreasedfrom$37.3Bin2016to$38.5Battheendoftheyear2017.

SavingsBalancesincreasedfrom$47Bin2016to$49Bin 2017.

FINANCIALHIGHLIGHTS

Intheyear2017NBS:-

MORTGAGES;

AsatDecember31,2017,therewere9,808MortgageAccountstotaling$38,629Mwhichrepresent61%ofourTotalAssets (2016–9,832MortgageAccountstotaling$37,348Mor62%ofourTotalAssets).

SAVINGS:

Thevalueofnetreceiptsfortheyear2017was$2,050Masagainstadeficitof$180Mforthecorrespondingperiodof2016.OurTotal Investors’BalancesasatDecember31,2017was$49,055M(2016-$47,006M).

ASSETS:

TotalAssetsasatDecember31,2017was$63,236M(2016 - $59,811M), representing an increase ofapproximately5.7%.All changes in tangible fixedassetsduringtheyeararedetailed intheFinancialStatements.FreeholdLandsandBuildingswerere-valued inOctober2016andhavebeen included intheFinancialStatementsatthesevaluations.LiquidAssetsintheformofCashandShortTermSecuritieswas$21,224Mandrepresented43%ofourInvestors’BalancesasatDecember31,2017(2016–$19,071M–40%).

CHARITABLEDONATIONS:

Attheendof2017,theSocietymadedonationstoseveralcharitableandeducational institutionsinthecommunitiesacrossthecountrytotaling$5.7M.

EMPLOYEES:

TheNewBuildingSocietyrecognizesthe importantroleemployeesplay in its continuedgrowthanddevelopment and therefore continually trains,motivatesandappropriatelycompensatesthem.

GOINGCONCERN:

TheDirectorsaresatisfiedthattheNewBuildingSocietyhasadequateresourcestocontinueinbusinessfortheforeseeablefutureand it isthereforeappropriateto

2017 2016 %$Millions $Millions Change

- Recordedaprofitof 1,279 1,277 + 0.2

- IncreasedTotalReservesto 14,063 12,638 + 11.3

- Increased AssetsunderManagementto 63,236 59,811 + 5.7

- ProvidedNewAdvancestoMortgagorstotaling 4,235 3,196 + 32.5



adoptthegoingconcernprincipleinpreparingtheseFinancialStatements.

DIRECTORATE:

InaccordancewithRule47(1), theDirectorswhosenamesarelistedbelow,willretireafterthe78thAnnualGeneralMeetingandareeligibleforre-election.

-Dr.NandaK.Gopaul- Mr.SeepaulNarine

AUDITORS:

TheAuditorsMessrs.MauriceSolomonandCompanywillretireandareeligibleforre-election.

ByOrderoftheBoard,

………………………………AnilO.KishunCEO/Director/Secretary14thFebruary,2018



Report of the Directorson Corporate Governance

CORPORATEGOVERNANCEANDSUBCOMMITTEESOFTHEBOARD

TheBoardensuresour longtermsustainability forthegoodofour customersandmembers.Wedothisby formulatingourstrategy inorder toensurethatwemeettheneedsofourcustomers,membersandregulators, remaincompetitiveanddeliverourservicesadequatelywithaprofit tohelpbuildourcapitaloverthelongterm.TheBoardformulatesthestrategy, reviewsbusinessperformance,overseesthe identificationandmanagementofrisks,ensuresadherenceto lawsandregulationsandensuresthattherequiredcontrolsareinplaceandalignedtoourstrategy.YearsofsuccessivegrowthandgenerationofprofitsistestamenttothesuccessandeffectivenessofthepoliciesoftheBoardandtheirimplementationbyManagement.

TheDirectorsof theSocietyarecommittedtobestpracticesincorporategovernanceandarededicatedtotheprinciplesofgoodcorporategovernanceinordertoachievethehighestlevelofintegrityandenhancedstakeholders’value.

InadditiontoattendingBoardmeetings,DirectorsarerequiredtoserveononeormoreofthefollowingSubCommitteeswhichmeetonaquarterlybasis:-

ROLEOFTHESUBCOMMITTEESOFTHEBOARD

SubCommitteesarechairedbyNon-ExecutiveDirectorsandconsistprimarilyofNon-ExecutiveDirectors.

AUDITANDCOMPLIANCESUBCOMMITTEE

TheAuditandComplianceSubCommitteeensurestheadequacyofcontrolsandjudgmentsmadeinfinancialreportingandregulatorycomplianceandassesstheeffectivenessof the internalauditandcomplianceunits.TheCommitteereviewstheTermsofReferenceofourExternalAuditorsandensurestheircontinuedindependenceandeffectiveness.

ThisCommitteeisalsoresponsiblefortheeffectivenessof the Society’sAML/CFT framework andhas anoversight role designed to ensure that there iscompliancewithallrelevant lawsandregulations. ItalsoreviewstheSociety’s’AML/CFTPoliciestoensurethattheyareconsistentwithitsbusinessmodel.

Additionally,theCommitteereviewsthefunctionalityofourinternalcontrolmechanism,riskmanagementpol ic ies and ensures that observat ions andrecommendationsmadebytheinternalandexternalauditors are addressed.

CurrentChair(Director): Mr.E.VerasammyDirector: Mr.F.McDonaldDirector: Mrs.C.Ramson HUMANRESOURCESSUBCOMMITTEE

TheHumanResourcesSubCommitteecomprisingthreeNon-ExecutiveDirectorsdiscussesandmakesproposalstotheBoardontheSociety’sorganizationalstructure,employees’compensationandemploymentpolicies and procedures. Appointment of keymanagementpersonnelisapprovedbythisCommitteepriortodeliberationsbythefullBoard.

CurrentChair(Director): Mr.S.NarineDirector: Mr.F.McDonaldDirector: Mrs.C.RamsonDirector: Mr.E.Verasammy

PENSIONSSUBCOMMITTEE

ThePensionsSubCommitteecomprisingofthreeNon-ExecutiveDirectorsdiscussesmattersrelatedtothemanagementoftheSociety’sdefinedbenefitpensionscheme.

CurrentChair(Director): Mr.S.NarineDirector: Mrs.C.RamsonDirector: Mr.E.Verasammy



FINANCESUBCOMMITTEE

TheFinanceSubCommitteeconsiderstheexternalandinternalenvironmentoftheSocietyandassessestheopportunitiesforinvestmentalongwiththeassociatedinherentriskthereofaspartof itsstrategytoensurethesoundnessofsuch investments.TheCommitteealsoreviewstheperformanceoftheSocietyagainstitsbudgetandaddressesissuesrelatingtoanyshortfallsorcostoverruns. Itcomprises threeNon-ExecutiveDirectors.

CurrentChair(Director): Mr.F.McDonaldDirector: Mr.K.TiwariDirector: Mr.E.Verasammy

LOANSSUBCOMMITTEE

TheLoansSubCommitteewhichcomprisesofthreeNon-ExecutiveDirectorsisguidedbyaclearlydefinedlendingpolicyasapprovedbytheBoard.TheCommitteepaysparticularattentiontotherisksrelatingtolendingandassessesourDebtRecoveryManagementSystemsforadequacyandcompliance.

CurrentChair(Director): Mr.F.McDonaldDirector: Mr.K.TiwariDirector: Mrs.C.Ramson

INFORMATIONTECHNOLOGY(IT)SUBCOMMITTEE

This Sub Committee is tasked with reviewingInformationTechnologypoliciesof theSociety tomitigateagainstanypotentialorrealoperationalrisksoftheSocietynotbeingabletocarryoutitsdaytodayoperationsduetotechnologicalfailures.

CurrentChair(Director): Dr.N.K.GopaulDirector: Mr.K.Tiwari

ExecutivesandSeniorManagersarerequiredtoattendmeetingsoftheSubCommitteesdependingonthenatureandfunctionsofeachSubCommittee.

Directors’ResponsibilitiesforAccountingRecordsandInternalControls

The Directors have general responsibil ity forsafeguardingtheassetsoftheSocietyandfortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

TheDirectorsarealsoresponsibleforensuringthattheSociety:

• KeepsaccountingrecordsinaccordancewiththeNewBuildingSociety (Amendment)Act2010,theFinancial InstitutionAct1995andtheAML/CFTAct2009.

• Takesreasonablecaretoestablish,maintain,document and review such systems andcontrolsasareappropriateto itsbusiness inaccordancewiththeFinancialInstitutionsAct1995andrecommendationsandguidelinesasissuedbytheBankofGuyana.

BUSINESSOBjECTIVESANDACTIVITIES

TheSociety’sbusinessobjectivesandprincipalactivitiesaretoprovidethebestsavingsproductandtopromotehomeownership.

TheBoardpayscontinuousattentiontothefinancialmarkethavingregardtotheprovisionofattractiveratesof interest for investorsandmortgagors.Weendeavourtocontinueofferingaffordablefinancingforhome-buildingandprovideexcellentreturnstoourinvestorsinasafeandsecuredenvironment.

EachmortgageoradvancegrantedbytheSociety iscertifiedbyat leastoneDirector,andsubsequentlyapprovedbythefullBoard.

TheSocietyhasestablishedethicalrulesandpoliciesinorder,toensurethattheaffairsofourcustomersandmembersremainconfidential.Wepromoteacultureofzerotoleranceagainstdiscriminationofall forms.Westrivetoresolveall issuescommunicatedtousinwritingororallybyourcustomersandmembers,inatimelyandefficientmanner.

OnbehalfoftheBoardofDirectors

………………………………………………FloydMcDonaldChairman14thFebruary,2018



Independent Auditor’s ReportTo The Members of

The New Building Society LimitedREPORT ON THE AUDIT OF THE F INANCIALSTATEMENTS

OPINION

We have audited the accompanying financialstatementsofTheNewBuildingSocietyLimitedwhichcomprisetheStatementofFinancialPositionasat31December2017,theStatementofProfitorLossandOtherComprehensiveIncomeandtheStatementofCashFlowsfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpoliciesassetoutinpages30to58.

Inouropinion,theaccompanyingfinancialstatementspresent fairly, inallmaterial respects, the financialpositionoftheSocietyasat31December2017,andofitsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandards,TheNewBuildingSocietyAct,TheNewBuildingSocietyAct(Amendment)2010(ActNo.12of2010)andtheFinancialInstitutionsAct1995.

BASISFOROPINION

We conducted our audit in accordance with

InternationalStandardsonAuditing.Ourresponsibilitiesunderthosestandardsare furtherdescribed intheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Weareindependentof theSociety inaccordancewiththe InternationalEthics StandardsBoard forAccountants’CodeofEthicsforProfessionalAccountantstogetherwiththeethical requirementsthatarerelevanttoourauditofthefinancialstatements,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheInternationalEthicsStandardsBoard forAccountants’Code.Webelieve that theauditevidencewehaveobtained is sufficientandappropriatetoprovideabasisforouropinion.

KEYAUDITMATTERS

Keyauditmatters are thosematters that, inourprofessional judgment,wereofmostsignificance inourauditofthefinancialstatementsofthecurrentperiod.Thekeyauditmatternotedhereunderwasaddressedinthecontextofourauditofthefinancialstatementsasawhole,and in formingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

KEYAUDITMATTERS HOWOURAUDITPROCEDURESADDRESSEDTHEKEYAUDITMATTER

ImpairmentProvisionforLoansandMortgagesTheSocietyhasmortgagesoutstandingof$38.5billion,or61%oftotalassetnetofprovisionasreferredtoinnote6.The methodologies required by IFRS and Bank ofGuyana in respect of impairment provisions involvesignificantjudgmentbymanagementonmatterssuchas:• Loanclassificationasimpaired;• Valuationandrealizationofcollateralspledged;

Our procedures in relation to this key audit matterincluded,butwerenotlimitedto,thefollowing:• WeevaluatedandtestedtheSociety’sprocessand

documentedpolicyformortgagelossprovisioning.• Forloanlossprovisionscalculatedonanindividual

basis,wetestedthefactorsunderlyingthe



ResponsibilitiesofManagementandthoseChargedwithGovernancefortheFinancialStatements

ManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithInternationalFinancialReportingStandards,TheNewBuildingSocietyAct,TheNewBuildingSocietyAct(Amendment)2010(ActNo.12of2010),theFinancialInstitutionsAct1995andforsuchinternalcontrolasmanagementdetermines isnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementis responsible forassessing theSociety’sability to

continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheSocietyortoceaseoperations,orhasnorealisticalternativebuttodoso.

Thosechargedwithgovernanceareresponsible foroverseeingtheSociety’sfinancialreportingprocess.

Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesare toobtain reasonableassuranceaboutwhetherthefinancialstatementsasawhole

• Amountandtimingofcashflows.

With a high degree of critical judgments involvedin assessing the mortgage impairment provisions,mortgage impairmentwasconsideredasakeyauditmatter.

impairment identification and quantification includingforecastsoffuturecashflows,valuationofunderlyingcollateralandestimatesof recoveryondefault.

• Wealsotestedtheagingofthe loanportfolioandconsidered the completeness of the loan bookassessed for impairment in conformity with theBankofGuyanaSupervisionGuidelines.

• For mortgage loss provisions calculated on acollective basis, we reviewed management’sinherent risk provisions estimate, with a focuson the reasonableness of the factors applied andassumptions used, considering the economicchangesinGuyana.

• Finally,wefocusedontheadequacyoftheSociety’sfinancialstatementdisclosuresregardingmortgageandtherelatedprovisions.

REGULATORYENVIRONMENT The Society operates in a highly regulatedenvironment and non-compliance with laws andregulations, particularly the Anti-Money LaunderingandCounteringtheFinancingofTerrorism(AML/CFT)Act could result in the Society facing penalties andotheradministrativesanctionsbyBankofGuyanaandFinancialIntelligenceUnit(FIU).

The Compliance Officer is responsible to establishvariouscontrolstoensurethattheSocietyisAML/CFTcompliantwithgoverningregulations.

Our procedures in relation to this key audit matterincluded,butwerenotlimitedto,thefollowing:WeevaluatedandtestedtheSociety’sinternalcontrolswithemphasisoncompliancewithAML/CFTpolicy.Thisinclude:• Areviewofpoliciesandproceduresinplaceincluding

approval of those policies by those charged withgovernance.

• Adequate training and refresher programmes fornew and existing bank personnel including thosechargedwithgovernance.

• Testing of transactions to ensure AML/CFTrequirementsarecarriedoutbybankpersonnel.

• ReportingtoFinancialIntelligenceUnit(FIU)areinconformitywiththerequirementsoftheAML/CFTAct.

impairment identification and quantification



arefreefrommaterialmisstatement,whetherduetofraudorerror,andto issueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithInternationalStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

Aspartofanaudit inaccordancewith InternationalStandards onAuditing,we exercise professionaljudgment andmaintain professional skepticismthroughouttheaudit.Wealso:

• Identify and assess the r isks of materialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethat issufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheaudit inordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheSociety’sinternalcontrol.

• Evaluate the appropriateness of accountingpoliciesusedandthereasonablenessofaccountingestimates and related disclosures made bymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingandbasedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheSociety’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,

wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosures inthefinancialstatementsor, ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtainedupto thedateofourauditor’s report.However, futureeventsorconditionsmaycausetheSocietytoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• Obtain sufficient appropriate audit evidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheSocietytoexpressanopiniononthefinancialstatements.Weareresponsible for thedirection, supervisionandperformanceofthesocietyaudit.Weremainsolelyresponsibleforourauditopinion.

We communicate with those charged withgovernance regarding, amongothermatters,theplannedscopeandtimingof theauditandsignificantauditfindings,includinganysignificantdeficiencies in internalcontrol thatwe identifyduringouraudit.

REPORTONADDITIONALREqUIREMENT

Wehaveexaminedthemortgagedeeds, transportsandothersecuritiesbelongingtotheSociety. Titledeedsheldinrespectofmortgageswereproducedtousandactually inspectedbyusandwearesatisfiedthatdeedsnotinspectedbyuswereinthehandsoftheSociety’sattorneysorelsewhere in thenormalcourseofthebusinessoftheSociety.

…………………………………MauriceSolomon&Co.CharteredAccountants16February,2018

Independent Auditor’s Report To The Members ofThe New Building Society Limited - continued



STATEMENTOFFINANCIALPOSITIONASAT31DECEMBER2017

ExpressedinThousandsofGuyanaDollars

NOTE 2017 2016 AssetsCashResources 5 15,332,921 12,647,421LoanAssets 6 38,512,771 37,288,192Investments 7 7,254,143 7,930,571Property,Plant&Equipment 8 1,628,692 1,573,695OtherAssets 9 269,048 279,077RetirementBenefitSurplus 238,836 92,247

63,236,411 59,811,203Investors'Balances,OtherLiabilitiesAndReserves

Investors'Balances 10 49,055,168 47,005,510OtherLiabilities 11 118,664 167,202RiskReserve 13 107,253 48,238AssignedCapital 13 250,000 250,000RevaluationReserve 13 317,998 317,998RetainedEarnings 13 13,387,328 12,022,255

63,236,411 59,811,203

TheBoardofDirectorsapprovedthesefinancialstatementsforissueon14thFebruary,2018.

The notes on pages 30 to 58 form an integral part of the Financial Statements.

……………………….........................

Chairman

…………………………………….

Vice-Chairman

…………………………………….

CEO/Director/Secretary



STATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOME

FORTHEYEARENDED31DECEMBER2017ExpressedinThousandsofGuyanaDollars

NOTE 2017 2016

INTERESTINCOMEON:LoanAssets 2,400,827 2,376,564Investments 273,540 301,651CashResources 396,761 419,114

3,071,128 3,097,329

INTERESTEXPENSE 16 1,070,552 1,177,341

INTERESTREVENUE 2,000,576 1,919,988

OtherIncomeProfitonSaleofAssets 743 59,954Fees and Commission Income 12,845 5,989OtherOperatingIncome 5,975 5,502LossonExchange (1,011) (26,848)TOTALNETINCOME 2,019,128 1,964,585

OperatingExpensesGeneralAdministrativeExpenses 15 (603,310) (560,621)NetProvisionforImpairmentonLoanAssets 14;15 (25,820) (16,018)Depreciation 15 (50,837) (55,818)OtherExpenses 15 (59,769) (55,547)TotalOperatingExpenses (739,736) (688,004)

PROFITFORTHEYEAR 1,279,392 1,276,581

OTHERCOMPREHENSIVEINCOME

Itemsthatwillnotbereclassifiedsubsequentlytoprofitorloss:RemeasurementofProvisionofEmployeeBenefits 12 144,696 (93,238)

TOTALCOMPREHENSIVEINCOMEFORTHEYEAR 1,424,088 1,183,343




STATEMENTOFCASHFLOWSFORTHEYEARENDED31DECEMBER2017


2017 2016 OPERATINGACTIVITIESNetProfitfortheYear 1,279,392 1,276,581Adjustmentsfor:Depreciation 50,837 55,818NetProvisionforImpairmentonLoanAssets 25,820 16,018UtilizationofProvisionforImpairmentonLoanAssets (20,204) (7,190)MovementinRetirementBenefitPlanLiability (1,894) (6,187)GainonDisposalofProperty,PlantandEquipment (743) (59,954)

OPERATINGINCOMEBEFORECHANGESINOPERATINGASSETSANDLIABILITIES 1,333,208 1,275,086

LoansAdvancesNetofRepayments (1,230,195) 71,126IncreaseinOtherAssets 10,029 (36,176)ReceiptsfromInvestorsNetofWithdrawals 2,049,658 (180,296)(Decrease)/IncreaseinOtherLiabilities (48,537) (63,875)

NETCASHOUTFLOW-OPERATINGACTIVITIES 2,114,163 1,065,865

INVESTINGACTIVITIESPurchaseofProperty,PlantandEquipment (105,883) (66,000)AdditionstoInvestments (6,288,321) (6,423,892)RedemptionsofInvestments 6,964,749 6,308,333NetDecrease/(Increase)inRestrictedCashResourcesandFixedDeposits (2,639,732) (1,180,862)ProceedsfromtheSaleofProperty,PlantandEquipment 790 122,879

NETCASHINFLOW-INVESTINGACTIVITIES (2,068,397) (1,239,542)

NETMOVEMENTINCASHANDCASHEqUIVALENTS 45,766 (173,677)

CASHANDCASHEqUIVALENTSASATBEGINNINGOFYEAR 1,151,918 1,325,595

CASHANDCASHEqUIVALENTSASATENDOFYEAR 1,197,684 1,151,918




NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED31DECEMBER2017

1. ENTITYIDENTIFICATION TheNewBuildingSocietyLimitedwasestablishedinGuyanaundertheNewBuildingSocietyAct1940,as

amended.ItsregisteredofficeislocatedatLot1,NorthRoadandAvenueoftheRepublic,Georgetown. TheSocietyoperatesunderthepurviewoftheFinancialInstitutionsAct1995andthesupervisionofthe

BankofGuyana,asprovidedundertheNewBuildingSociety(Amendment)Act2010(ActNo.12of2010).

TheSocietyisnotsubjecttotaxationunderthetaxregimeofGuyana. 2. PRINCIPALACTIVITY Theprincipalactivityistheprovisionofarangeofmortgageandsavingsproducts. 3. SIGNIFICANTACCOUNTINGPOLICIES

3.1 BASISOFPREPARATION TheFinancialStatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedby

therevaluationoffreeholdlandandbuildings,andinaccordancewiththeNewBuildingSocietyActandInternationalFinancialReportingStandards.

ThepreparationoftheSociety’sfinancialstatementsinconformitywithInternationalFinancial

ReportingStandardsrequirestheuseofcertaincriticalaccountingestimates. ItalsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheSociety’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementandcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinnote4.

a) Standards,amendmentsandinterpretationsthatarenotyeteffectiveinthecurrentyear.

Thesestandards,amendmentsandinterpretationswillbeapplicabletotheSocietyat

afuturedateandwillbeadoptedwhentheybecomeeffective.TheSocietyiscurrentlyassessingtheimpactofadoptingthesestandards,amendmentsandinterpretations.

IAS12-IncomeTaxes:Incometaxconsequencesofdividends(effectiveonorbefore1

January2019) IAS19-EmployeeBenefits:Amendmentsregardingplanamendments,curtailmentsor

settlements(effectiveonorbefore1January2019) IAS223-BorrowingCostseligibleforcapitalisation(effectiveonorbefore1January

2018) IAS28-InvestmentsinAssociatesandJointVentures:Amendmentsregardinglongterm

interestsinassociatesandjointventures(effectiveonorbefore1January2019)



IAS40-InvestmentProperty:Amendmentstoclarifytransfersorpropertyto,orfrom,investmentproperty(effectiveonorbefore1January2018)

IFRS1-Firsttimeadoptionof IFRS:Removingshorttermexemptions(effectiveonor

before1January2018) IFRS2-ShareBasedPayments:Definitionofvestingcondition(effectiveonorbefore1

January2018) IFRS3-BusinessCombinations:Remeasurementofpreviouslyheldinterest(effectiveon

orbefore1January2019) IFRS4-InsuranceContracts:AmendmentsregardingtheinteractionofIFRS4&IFRS9

(effectiveonorbefore1January2018)

IFRS9-Financial Instruments:Classificationandmeasurement, impairment,generalhedgeaccountingandderecognition(effectiveonorbefore1January2018)

IFRS11-JointArrangements:Remeasurementofpreviouslyheldinterest(effectiveonor

before1January2019) IFRS15-RevenuefromContractswithCustomers(effectiveonorbefore1January2018) IFRS16-Leases(effectiveonorbefore1January2019) IFRS17-InsuranceContracts(effectiveonorbefore1January2021)

3.2 FOREIGNCURRENCIES

Functional and Presentation Currency Items included inthefinancialstatementsaremeasuredusingthecurrencyof theprimary

economicenvironmentinwhichtheSocietyoperates.ThefinancialstatementsarepresentedinGuyanaDollars,whichistheSociety’sfunctionalcurrency.

Transactions and Balances

Foreigncurrencytransactionsareaccountedforattheexchangeratesprevailingatthedateofthetransactions.Gainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognizedintheincomestatement.Suchbalancesaretranslatedattheprevailingyearendexchangerates.

3. SIGNIFICANTACCOUNTINGPOLICIES(cont’d)

3.1 BASISOFPREPARATION(cont’d)

a) Standards,amendmentsandinterpretationsthatarenotyeteffectiveinthecurrentyear.(cont’d)





3.3 LOANASSETS Loanassetsarestatedatamortizedcostusingtheeffectiveinterestmethod.Specificprovisions

forimpairmentaremadethroughouttheyearandatyearendifthereisobjectiveevidencethataloanassetisimpaired.Objectiveevidencethatafinancialassetisimpairedincludesindicationsthattheborrowerisexperiencingsignificantfinancialdifficulty,defaultordelinquencyininterestorprincipalpayments.

Ifthereisobjectiveevidencethatanimpairmentlossonafinancialassethasbeenincurred,theamountoftheallowancefor impairmentismeasuredasthedifferencebetweenthecarryingamountandtherecoverableamount,beingthepresentvalueoftheexpectedfuturecashflows,includingamountsrecoverable fromcollateral,discountedat theoriginaleffective interestrate.ThespecificprovisionforpropertiesinpossessionisbasedonanagreedsalespricewithathirdpartyoraDirector’svaluation.

Thecarryingvaluesofimpairedassetsarereducedthroughtheuseofanallowanceaccountandtheamountisrecognizedintheincomestatement.Write-offsaremadewhenallorpartofaloanassetisdeemeduncollectibleandarechargedagainsttheallowanceaccount.Recoveriesinpartorinfullofamountspreviouslywrittenoffarecreditedtoincome.

TheSocietyalsocollectivelyassessesitsmortgagesforimpairmentbyapplyinghistoricallossratestotheportionoftheportfolionotdeemedtobeindividuallyimpaired.

Renegotiationsnormallyinvolvethedeferralofrepaymentsformembersexperiencingsignificantbuttemporarycashflowproblems, inthe judgmentofmanagement.Renegotiatedfacilitiescontinuetoearninterestandareagedbasedontheoriginalterms.

3.4 INVESTMENTS TheSocietyclassifiesits investmentsasheld-to-maturitysecuritiesasthesearenon-derivative

financialassetswithfixedanddeterminablepaymentsandfixedmaturitiesthatmanagementhasthepositiveintentandabilitytoholdtomaturity.Theinvestmentsarecarriedatamortizedcostwithpremiumsanddiscountsbeingamortizedtotheincomestatementovertheperiodtomaturityonaneffectiveyieldbasis.





3.5 PROPERTY,PLANT&EqUIPMENT Freeholdlandandbuildingsarestatedattherevaluedamountslessaccumulateddepreciation

thereon.Allotherfixedassetsarestatedatcostlessaccumulateddepreciation. Freeholdlandisnotdepreciated.Depreciationonallotherassetsiscalculatedonastraightline

basisatratesestimatedtowriteoffthedepreciableassetsovertheirexpectedusefuleconomiclives.

Thefollowingratesareused:- Buildings 2.0% OfficeFurniture 10.0% MachineryandEquipment 12.5% MotorVehicles 20.0% Increasesinthecarryingamountarisingontherevaluationoflandandbuildingarecreditedto

arevaluationreserve.Decreasesthatoffsetpreviousincreasesofthesameassetarechargedagainsttherevaluationreserve;allotherdecreasesarechargedtotheincomestatement.

Subsequentcostsareincludedintheassetscarryingamountorrecognizedasaseparateasset,

asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheSocietyandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialperiodinwhichtheyareincurred.

Assetsarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethat

thecarryingamountmaynotberecoverable.Animpairmentlossisrecognizedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscosttosellandvalueinuse.

3.6 INTANGIBLEASSETS(COMPUTERSOFTWARE) Thecostofacquiringandinstallingcomputersoftwareiscapitalizedandamortizedovertheir

estimatedusefuleconomic lifeofeightyearsonastraight linebasis.Costsassociatedwithmaintenanceofcomputersoftwareareexpensedasincurred.

3.7 INTERESTRECOGNITION Forinstrumentsmeasuredatamortizedcost,theeffectiveinterestmethodisusedtomeasure

thecarryingvalueofafinancialassetoraliabilityandtoallocatetheassociatedinterestincomeorexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsorreceiptsthroughtheexpectedlifeofthefinancialinstrumenttothenetcarryingamountofthefinancialassetorliability.





3.8 RECOGNITIONOFFEESANDCOMMISSION Feesandcommissionaregenerallyrecognizedonanaccrualbasiswhentheservicehasbeen

provided.Propertyinspectionfeesformortgagesthatarelikelytobedrawndownaredeferredoverthetermofthemortgage.

3.9 INVESTORS’BALANCES Investors’balancesare initially recognizedat thenominalamountof funds receivedand

subsequentlyatnominalamountplusaccruedinterests. 3.10 RETIREMENTBENEFITPLAN TheSocietyoperatestheNewBuildingSocietyLimitedPensionSchemewhichisadefinedbenefit

schemeastheamountofpensionthatanemployeewillreceiveonretirementisdependentonyearsofserviceandcompensation.TheassetsoftheschemeareheldindependentlyfromthoseoftheSociety.TheSchemeisfundedbyemployeeandSocietycontributions.

Theprojectedactuarialmethod isusedfortheretirementbenefitplan.Underthismethod,

theactuarialliabilitiesconsistofthepresentvalueofpensionsinpaymentandvesteddeferredbenefitsforterminatedmembers,plusthatportionofthefuturebenefitsexpectedtobepaidtopresentmemberswhichisrelatedtotheircreditedserviceuptothevaluationdate.Amountsofpensionaredeterminedbasedoneachmember’sprojectedfinalearnings.Thecurrentservicecostforthedefinedbenefitprovisionsfortheyearfollowingthevaluationdateisthepresentvalueofbenefitsaccruedbymemberswithrespecttotheirserviceinthatyear.

Thecharacteristicsofthisactuarialcostmethodarethatitmatchesyear-by-yearcostsofbenefits

expectedtobeaccruedbythememberseachyeartothecontributionsrequiredforthoseyearsand,sinceitresultsinapatternofprogressivelyincreasingcostsforanindividualemployeeasthatemployeeages,itmayalsoresultinprogressivelyincreasingcostsfortheSchemeasawholeiftheaverageageprofileoftheSchememembershipincreasesfromyeartoyear.

3.11 PROVISIONSANDCONTINGENTLIABILITIES Aprovision isrecognizedwhenthere isapresentobligationasaresultofapastevent, it is

probablethattheobligationwillbesettledanditcanbereliablyestimated.Contingentliabilitieshavenotbeenrecognized.

3.12 CASHANDCASHEqUIVALENTS Forthepurposeofthestatementofcashflows,cashandcashequivalentscomprisecashinhand

andcashatbankexcludingbalancesredeemableafterthreemonths. 3.13 COMPARATIVES Wherenecessary,comparativefigureshavebeenadjustedtoconformwithchangesinpresentation

inthecurrentyear.




4. CRITICALACCOUNTINGESTIMATESANDjUDGMENTS

4.1 IMPAIRMENTLOSSESONLOANASSETS ToidentifyimpairmentintheSociety’sloanassets,judgmentsaremadeastowhetherthereis

anyobservabledataindicatingthatthereisameasurabledecreaseintheestimatedfuturecashflows.Estimatingthequantumandtimingoffuturerecoveries involvessignificant judgment.Thesizeofreceiptswilldependonthefutureperformanceoftheborrowerandthevalueofthesecurity,bothofwhichwillbeaffectedbyfutureeconomicconditions;additionally,collateralmaynotbereadilymarketable.Theactualamountoffuturecashflowsandthedatetheyarereceivedmaydifferfromtheseestimatesandconsequentlyactuallossesincurredmaydifferfromthoserecognizedinthesefinancialstatements.

4.2 HELD-TO-MATURITYINVESTMENTS The Society follows the guidanceof InternationalAccounting Standards 39 - Financial

Instruments:RecognitionandMeasurement,onclassifyingnon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturityasheld-to-maturity.Thisclassificationrequiressignificant judgmentforwhichmanagementevaluates its intentionandabilitytoholdsuchinvestmentstomaturity.

4.3 RETIREMENTBENEFITPLAN Thepresentvalueoftheretirementbenefitplanobligationdependsonanumberoffactors

thataredeterminedonanactuarialbasisusinganumberofassumptions.Anychangesintheseassumptionswillimpactthecarryingamountoftheplan’sobligation.Theassumptionsusedaredisclosedinnote12tothefinancialstatements.






2017 2016

7,200 7,200 1,190,484 1,144,718

1,197,684 1,151,918

14,135,237 11,495,50315,332,921 12,647,421

38,647,749 37,355,01524,234 75,012

38,671,983 37,430,027

(140,569) (134,953)(18,643) (6,882)

38,512,771 37,288,192

5. CASHRESOURCES

RedeemableonDemand:CashinHandCashatBank,excludingFixedDeposits

ClassifiedasCashandCashEquivalents

Redeemableafter3Months:FixedDeposits

6. LOANASSETS

MortgagesPropertiesinPossession

ProvisionforImpairmentonLoanAssets(note14)UnearnedInterest

ThetablebelowshowsthemovementtothePropertiesinPossession

2017 2016No.of

PropertiesValue No.of

PropertiesValue

AsattheBeginningoftheYear 7 75,012 8 50,312AdditionsintheYear - - 4 71,275DisposalsintheYear (5) (50,778) (5) (46,575)

AsatEndofYear 2 24,234 7 75,012

Propertiesinpossessionaresoldassoonaspracticable,withproceedsusedtoreducetheoutstandingbalance.





2017 20166. LOANASSETS(cont'd)

Thetablebelowshowstheanalysisofthemortgageportfoliobyvaluebands

No.ofSecurities

Value No.ofSecurities

Value

Balancesnotexceeding$1,000,000 1,623 859,155 1,700 907,620Balancesexceeding$1,000,000 butnot$1,500,000 718 891,188 804 987,682Balancesexceeding$1,500,000butnot$2,000,000 704 1,233,057 731 1,282,879Balancesexceeding$2,000,000butnot$2,500,000 629 1,410,699 686 1,536,801Balancesexceeding$2,500,000butnot$3,000,000 750 2,058,388 740 2,039,446Balancesexceeding$3,000,000butnot$4,000,000 1,517 5,344,216 1,475 5,202,591Balancesexceeding$4,000,000butnot$5,000,000 980 4,378,874 990 4,432,557Balancesexceeding$5,000,000butnot$6,000,000 766 4,218,292 717 3,936,467Balancesexceeding$6,000,000butnot$7,000,000 575 3,732,957 564 3,649,378Balancesexceeding$7,000,000butnot$8,000,000 420 3,134,347 417 3,108,312Balancesexceeding$8,000,000butnot$9,000,000 288 2,445,845 235 1,995,961Balancesexceeding$9,000,000butnot$10,000,000 287 2,725,405 252 2,400,698Balancesexceeding$10,000,000butnot$11,000,000 210 2,206,047 180 1,883,258Balancesexceeding$11,000,000butnot$12,000,000 257 2,959,576 263 3,026,112

Balancesexceeding$12,000,000 84 1,031,059 78 958,371

Total 9,808 38,629,106 9,832 37,348,133





2017 20167. INVESTMENTS

GovernmentofGuyanaTreasuryBills 5,890,921 6,423,892UnitedKingdomGovernmentTreasuryLoans - 49,434BerbiceBridgeCompanyInc.Bonds 1,363,222 1,457,245

7,254,143 7,930,571

8. PROPERTY,PLANT&EqUIPMENT Freehold LandandBuildings

Machinery,Furniture

and Equipment

Work-In-Progress

MotorVehicles

Total

Cost

Asat01January,2017 1,554,745 266,979 - 67,665 1,889,389Additions 67,044 11,077 2,262 25,500 105,883Disposals - (17,714) - (17,165) (34,879)

Asat31December,2017 1,621,789 260,342 2,262 76,000 1,960,393

AccumulatedDepreciation

Asat01January,2017 (103,328) (148,576) - (63,790) (315,694)ChargesfortheYear (26,726) (21,145) - (2,966) (50,837)WrittenbackonDisposals - 17,668 - 17,162 34,830

Asat31December,2017 (130,054) (152,053) - (49,594) (331,701)

NetBookValueAsat31December,2017 1,491,735 108,289 2,262 26,406 1,628,692

FreeholdlandandbuildingsarerecordedatthevaluationsoftheDirectors,basedonindependentprofessionaladviceasaresultofvaluationscarriedoutbytheSeniorValuationOfficer,Mr.CharlesMcGarrellinOctober2016onthebasisofopenmarketvalue.





8. PROPERTY,PLANT&EqUIPMENT(cont’d)

Freehold LandandBuildings

Machinery,Furniture

and Equipment

MotorVehicles

Total

Cost

Asat01January,2016 1,570,573 248,076 67,665 1,886,314Additions 47,097 31,855 - 78,952Disposals (62,925) (12,952) - (75,877)

Asat31December,2016 1,554,745 266,979 67,665 1,889,389

AccumulatedDepreciation

Asat01January,2016 (77,424) (120,212) (62,240) (259,876)ChargesfortheYear (25,904) (28,364) (1,550) (55,818)

Asat31December,2016 (103,328) (148,576) (63,790) (315,694)

NetBookValueAsat31December,2016 1,451,417 118,403 3,875 1,573,695

If freehold land and buildings were stated at historical cost, the carrying values would be:

Cost AccumulatedDepreciation

9. OTHERASSETS 2017 2016

AccruedInterest 228,900 249,422AccountsReceivablesandPrepayments 40,148 29,655

269,048 279,077

2017 2016

1,252,928 1,141,789(161,326) (137,165)

1,091,602 1,004,624





10. INVESTORS'BALANCES 2017 2016

FiveDollarShares 22,463,274 21,937,615SaveandProsper 25,577,933 24,035,463Deposits 1,013,961 1,032,432

49,055,168 47,005,510

11. OTHERLIABILITIES

WithholdingTaxes 31,332 40,464AccountsPayablesandAccruals 42,420 81,485DeferredIncome 44,912 45,253

118,664 167,20212. RETIREMENTBENEFITPLAN

TheamountrecognizedintheStatementofFinancialPositionisasfollows:

PresentValueofObligations 669,141 747,933FairValueofPlanAssets (1,020,188) (840,180)EffectofAssetCeiling 112,211 -AssetRecognizedintheStatementofFinancialPosition (238,836) (92,247)

ThemovementinthePresentValueoftheObligationis:

AsatBeginningofYear 747,933 689,112InterestExpense 43,018 39,121CurrentServiceCost 31,624 30,034ContributionsbyPlanParticipants 14,368 13,250BenefitsPaid (23,568) (42,183)ActuarialGain (144,234) 18,599AsatEndofYear 669,141 747,933





ThemovementintheFairValueofPlanAssetsis:

AsatBeginningofYear 840,179 868,409ActualReturnonPlanAssets 159,448 (26,914)ContributionsbytheSociety 31,131 28,709ContributionsbyPlanParticipants 14,368 13,250BenefitsPaid (23,568) (42,183)AdministrativeExpenses (1,370) (1,092)AsatEndofYear 1,020,188 840,179

TheamountrecognizedintheStatementofProfitorLoss:

CurrentServiceCost 31,624 30,034 Interest Cost 43,018 39,121ExpectedReturnonPlanAssets (46,775) (47,726)AdministrativeExpenses 1,370 1,092TotalincludedinStaffCost 29,237 22,521

TheamountrecognizedinOtherComprehensiveIncome:

ChangeInAssumptionGains (142,353) -ExperienceGains-Demographic (1,881) 18,597ExperienceGains-Financial (112,673) 74,641EffectofAssetCeiling 112,211 -

(144,696) 93,238

ExpectedContributionsinUpcomingYear 46,727 43,244

12. RETIREMENTBENEFITPLAN(cont’d) 2017 2016





Theprincipalassumptionsusedwere:

DiscountRate 5.50% 5.50%FutureSalaryIncreases 4.50% 4.50%ReturnonAssets 5.50% 5.50%Mortality UP-94

(+1)(withaprojectionscaleAA)

UP-94(+1)(withaprojectionscaleAA)

Theexpectedreturnonplanassetscomprisesincomeandcapitalgainslessamarginforadministrativeexpenses.The incomecomponenthasbeendeterminedbyreferencetoaweightedaverageofratesofinterestatwhichdepositshavebeenfixed,andthedividendyieldonequityholdings.Anallowanceforcapitalgainshasbeendeterminedbyconsideringtheproportionofplanassetsinvestedinequityholdings,adjustedforgrowthinthecapitalvalueinlinewitheconomicconditions. RisksspecifictotheSocietyarisingfromtheRetirementBenefitPlan: InterestRisk:Adecreaseinthebondinterestratewilldecreasetheretirementbenefitsurplus. MortalityRisk:Thepresentvalueoftheplanobligationiscalculatedbyreferencetothebestestimateof themortality of the plan participants during and after their employment. An increase in the lifeexpectantcyoftheplanparticipantswilldecreasetheretirementbenefitsurplus. SalaryRisk:Thepresentvalueoftheplanobligation iscalculatedbyreferencetothefuturesalariesoftheplanparticipants.Anincreaseinthesalaryoftheplanparticipantswilldecreasetheretirementbenefitsurplus. Investment Risk: A decrease in the return on plan assets will decrease the retirement benefitsurplus.

2017 2016PlanAssetsarecomprisedasfollows:CashResources 315,016 31% 281,239 33%Equity:Manufacturing 138,115 97,891Distribution 70,195 80,919FinancialInstitutions 445,465 322,200

653,775 64% 501,010 60%Debt Instruments (United Kingdom GovernmentBonds) 51,397 5% 57,930 7%

1,020,188 100% 840,179 100%

Thefairvaluesoftheaboveequityanddebtinstrumentsaredeterminedbasedonquotedmarketpricesinactivemarkets.

12. RETIREMENTBENEFITPLAN(cont’d) 2017 2016





Asummaryoftheplanpositionandexperienceadjustmentsisasfollows:

2017 2016 2015 2014 2013

PresentValueofObligation 669,141 747,933 689,112 538,205 498,524FairValueofPlanAssets 1,020,188 840,179 868,409 872,563 828,904

Impactofchangesinsignificantactuarialassumptions Significantactuarialassumptionsforthedeterminationofthedefinedobligationarediscountrate,expectedsalaryincreasesandmortality.Thesensitivityanalysisprovidedbelowhavebeendeterminedbasedonreasonablepossiblechangesoftherespectiveassumptionsoccuringattheendofthereportingperiod,whileholdingallotherassumptionsconstant.

Scenario BenefitObligation %ChangeinBenefitObligation

ValuationResults 669,141DiscountRate-1% 818,247 22.28DiscountRate+1% 556,660 -16.81SalaryIncreases-1% 614,820 -8.12SalaryIncreases+1% 732,216 9.43Increaseaveragelifeexpectancyby1year 680,637 1.72Decreaseaveragelifeexpectancyby1year 657,632 -1.72

12. RETIREMENTBENEFITPLAN(cont’d)





13.A) RESERVES 2017 2016

RevaluationReserveAsatBeginningofYear 317,998 317,998

AsatEndofYear 317,998 317,998

RetainedEarningsAsatBeginningofYear 12,022,255 10,829,707Transferred(to)/fromRiskReserve (59,015) 9,205

11,963,240 10,838,912

ProfitfortheYear 1,279,392 1,276,581

OtherComprehensiveIncome:Remeasurementofprovisionofemployeebenefits 144,696 (93,238)

AsatEndofYear 13,387,328 12,022,255

B) TheRiskReserve

TheRiskReserveiscreatedasanappropriationofretainedearningstoaccountforthedifferencebetweenthespecificprovisioncreatedbytheSocietyandtheprovisionsasrequiredunderBankOfGuyanaSupervisionGuidelineNo.5.

TheSocietymakesspecificprovisionsfornon-performingadvancesbasedonthedifferencebetweenthecarryingamountandthediscountedexpectedcashflows.Theseprovisionsbookedasat31December,2017totalled$140,569comparedwithaprovisionof$247,821asrequiredunderBankOfGuyanaSupervisionGuidelineNo.5.

TheRiskReserveasat31December,2017was$107,252.Theincreaseof$59,015isshownasatransferofRetainedEarningstoRiskReserve.Thisisshowninnote13(A).

C) AssignedCapital

AsrequiredbytheFinancialInstitutionsAct1995,theBankofGuyanahasassignedtheSociety'scapitalofitsbusinessasnotlessthananamountof$250,000.





2017 2016 14. PROVISIONFORIMPAIRMENTONLOANASSETS

AsatBeginningofYear 134,953 126,125UtilizedintheYear (20,204) (7,190)ChargedfortheYear 25,820 16,018AsatEndofYear 140,569 134,953

15. NON-INTERESTEXPENSESBYNATURE

Depreciation 50,837 55,818NetProvisionforImpairment(Note14) 25,820 16,018StaffCosts(Note17) 428,868 392,459Security 50,805 46,746Electricity 39,000 35,104SoftwareLicenceFee 32,498 22,824Advertising 3,214 4,873PostageandTelephone 10,104 9,236CharitableandEducationalDonations 5,692 5,685Auditors'Remuneration 3,272 3,116Other 89,626 96,125TotalNon-InterestExpenses 739,736 688,004

16. INTERESTEXPENSES

FiveDollarShares 373,089 423,297SaveandProsperShares 683,296 739,811 Deposits 14,167 14,233

1,070,552 1,177,341

17. STAFFCOSTS

WagesandSalaries 349,253 322,328SocialSecurityCosts 19,223 15,599PensionCosts 29,237 22,521OtherStaffCosts 31,155 32,011

428,868 392,459





18 RELATEDPARTYTRANSACTIONS

Anumberoftransactionsareenteredintowithrelatedpartiesinthenormalcourseofbusiness.TherelatedpartiesarekeymanagementpersonnelincludingDirectorsandSeniorOfficersoftheSocietyandclosefamilymembersofsuchindividuals.MortgagesareextendedtoSeniorOfficersoftheSocietyattheapplicableemployeerateof50%oftheprevailingrate.Allothertransactionsarecarriedoutoncommercialtermsandatprevailingrates.

2017 2016

(a) MORTGAGES

BalanceasatBeginningofYear 47,904 48,562EffectsofChangesinKeyManagementPersonnel (14,512)MortgagesissuedduringtheYear - 1,600MortgageInterestChargedduringtheYear 1,357 2,419MortgagePaymentsduringtheYear (6,311) (4,677)BalanceasatEndofYear 28,438 47,904

Noprovisionhasbeenrequiredin2017and2016forthemortgagesgrantedtorelatedparties.

(b) INVESTORS’BALANCES

BalanceasatBeginningofYear 90,773 96,789EffectsofChangesinKeyManagementPersonnel 31,020DepositsReceivedduringtheYear 86,151 27,270InterestearnedduringtheYear(netoftax) 2,857 2,085WithdrawalsmadeduringtheYear (73,737) (35,371)BalanceasatEndofYear 137,064 90,773





2017 2016

18 RELATEDPARTYTRANSACTIONS(Cont’d)

(c) KEYMANAGEMENTCOMPENSATION

Short-TermEmployeeBenefits 109,346 103,638Post-EmploymentBenefits 5,264 4,552

114,610 108,190

(d) OTHERSERVICES LegalServicesfromKeyManagement 852 13,319

19. DIRECTORS'COSTS

Directors'CostsincludedinKeyManagementCompensation

Directors'Fees 4,500 4,200Directors'Travel 4,500 4,200Directors'Pension 2,810 2,010

11,810 10,410

20. FINANCIALINSTRUMENTSANDFINANCIALRISKMANAGEMENT

(a) CATEGORIESOFFINANCIALINSTRUMENTS

Financial instruments carried at the Statement of Financial Position date include cashresources,loanassets,investments,otherassets(excludingproperty,plantandequipmentandprepayments),andinvestors’balances,accountspayablesandaccruals.

The Society’s financial instruments are classified into the following categories identified inIFRS7:held-to-maturityand loansandreceivables.AlloftheSociety’sfinancial liabilitiesareclassifiedasfinancialliabilitiesmeasuredatamortizedcost.

Financial assets classified as held-to-maturity are non-derivative instruments with fixed ordeterminable payments and fixedmaturities that management has the positive intent andabilitytoholdtomaturity.TheSociety’sinvestmentsareclassifiedasheld-to-maturity.





20. FINANCIALINSTRUMENTSANDFINANCIALRISKMANAGEMENT(Cont'd)

(a) CATEGORIESOFFINANCIALINSTRUMENTS(Cont'd)

Financialassetsclassifiedasloansandreceivablesarenon-derivativeinstrumentswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.TheSociety’scashresources,loanassetsandotherassets(excludingproperty,plantandequipmentandprepayments)areclassifiedasloansandreceivables.

Financialliabilitieswhicharenotclassifiedasfairvaluethroughtheprofitandlossareclassifiedasfinancialliabilitiesmeasuredatamortizedcost.Afinancialliabilitywhichisacquiredprincipallyforthepurposeofsellingintheshorttermorderivativesarecategorizedasfairvaluethroughtheprofitandloss.TheSocietyholdsnosuchfinancialliabilities.Assuch,theSociety’sinvestors’balances, accounts payables and accruals are classified as financial liabilities measured atamortizedcost.

Therewerenochangesintheseclassificationsfromtheprioryear.

(b) RISKARISINGFROMFINANCIALINSTRUMENTS

Financial instruments incorporatethevastmajorityof theSociety’sassetsand liabilities.TheSociety’sactivityinvolvestheacceptanceofdepositsfrominvestorswhicharethenusedtoearnaninterestmarginbyinvestingthesefundsinhighqualityassets.Theprincipalriskswhicharisefromthiscoreactivity,andwhichneedstobemanagedbytheSociety,arecreditrisks,liquidityrisk,interestraterisksandforeignexchangerisk.TheSociety’sobjectiveistolimititsexposuretosuchriskswhilemaintainingasteadygrowthinprofitabilityandnetassetbase.TheSociety’sriskmanagementpoliciesforeachoftheserisksisdescribedinthefollowingpartstothisnote.

(c) CREDITRISK

TheSocietytakesonexposuretocreditrisk,whichistheriskthatacounterpartywillbeunabletopayamountsinfullwhendue.CreditriskarisesontheSociety’sholdingsofcashresources,investmentsandloanassets.ThemaximumcreditriskexposureapproximatestothecarryingvaluesoftheseassetsattheStatementofFinancialPositiondate.

To reduce theSociety’sexposure,cash resourcesareheldwithfinancial institutions licensedinGuyana or theUnited Kingdom. The Society’s investments are largely in securities issuedor guaranteed by governments of Commonwealth countries. The investment in the bondsissuedbytheBerbiceBridgeCompanyInc.,whilenot issuedorguaranteedbyagovernmentofaCommonwealthCountry,isconsideredtobeofsoundcreditqualitybasedontheSociety’sassessmentoftheviabilityofthatcompany’sactivity;thebondissecuredontheassetsofthatcompany.






(c) CREDITRISK(cont’d)

Withrespecttotheexposuretocreditriskonmortgages,thefollowingmitigatingmeasuresarereliedupon.

(i) Prior to the advancing of funds, an initial interview of the potential borrower isconductedbyanOfficeroftheMortgageDepartment.Duringtheinterview,theOfficercollectsinformationontheproposedproject,theincomeresourcestoberelieduponforrepaymentsandthepropertytobelodgedascollateral.

(ii) TheinitialinspectionofthepropertytobelodgedascollateraliscarriedoutbyaSeniorManager of the Societywith a Director duringwhich a value is assessed. For loansbetweententotwelvemilliondollars,twoDirectorsinspectthepropertytoensurethecollateralisadequate.

(iii) Arecommendationismadefortheamounttobeapprovedusinginformationcollectedon theproject, sourcesof repayment and the assessed valueof the collateral to belodged.Therecommendationmustbewithinseventy-fivepercentoftheassessedvalueofthecollateraltobelodgedandwithinthestatutorylendinglimitsoftheSocietyoftwelvemillionGuyanadollars.

(iv) TheBoardofDirectorsisrequiredtoapproveallmortgagesregardlessoftheamounttobe disbursed.

(v) Themortgagemustberegisteredonthecollateralpriortothedisbursementoffunds.

(vi) Formortgagesthatinvolvedisbursementoffundsinstages,aweeklysiteinspectioniscarriedoutbyanOfficeroftheMortgageDepartmenttoassessthesatisfactionofsettargetspriortofurtherreleaseofdisbursements.

(vii) Dailyreportsaregeneratedtoidentifymortgagorswhohavedefaultedonrepayments.The Society has a team within its Mortgage Department that is tasked with theidentificationandmonitoringofdefaultingmortgagors.

(viii) ADirectoroftheSocietyisrequiredtoinspectcollaterallodgedatleastonceeverythreeyears.

GiventhehomogenousnatureoftheSociety’sloanassets,managementmonitorstheoverallqualityofitsportfoliobyexaminingthegeographicconcentrationagainsthistoricdefaultrates(foreclosedmortgagesasapercentageofthegeographictotal).






(c) CREDITRISK(cont’d)

TheconcentrationofloanassetsthatareneitherpastduenorimpairedasattheStatementofFinancialPositiondateandthegeographicdefaultratesareshownbelow.

2017 2016Value Default

RateValue Default

Rate

Demerara,exceptLinden 29,558,087 0.36% 24,582,980 0.24% Berbice 6,424,881 0.35% 5,175,090 0.53% Essequibo 1,827,009 0.44% 1,426,435 0.34%Linden 819,129 0.10% 610,868 0.00%

38,629,106 31,795,373

Duringtheyeartherewereloanassetstotaling$77,575(2016-$209,320)whichwererenegotiatedandwhichwouldhaveotherwisebeenpastdueorimpaired.

ThetablebelowshowstheageanalysisofloanassetsthatarepastdueandimpairedmortgagesasattheStatementofFinancialPositiondate,alongwiththeestimatedfairvalueofthecollateralheldagainstthesebalances.

2017 2016PastDueAccountsPastdueupto30days 4,419,864 3,393,102Pastdue30to90days 2,376,535 1,826,036Impaired(Over90days) 294,284 181,000Total 7,090,683 5,400,138

Fairvalueofcollateral 14,295,650 11,034,600






(c) CREDITRISK(Cont’d)

The table below shows the geographic analysis of loan assets that are impaired as at theStatementofFinancialPositiondate,alongwiththeestimatedfairvalueofthecollateralheldagainst these balances. All impaired loan assets exceeding 180 days and one year totalled$186,983(2016-$50,367)and$15,737respectively.

2017 2016

Demerara,exceptLinden 310,901 172,686 Berbice 270,661 146,568 Essequibo 31,975 23,221Linden 27,192 6,751

640,729 349,226

Fairvalueofcollateral 1,079,600 528,850






(d) INTERESTRATERISK

The Society assumes interest rate risk from dealing with members and other third partiesthroughfixedterm lendingor investmentactivity.Theriskarises frommovement in interestrateswheretheSociety’sfinancialassetsorliabilitieshavedifferentrepricingdates.TheSocietymanagesthisriskthroughtheretentionoftherighttochangeapplicableratesonmortgagesandinvestors’balancesandtheholdingofshort-terminvestments.

The Society’s interest bearing instruments carry fixed rate of interest except cash resourcestotaling $451,465 (2016 – $102,104) with an effective interest rate of 0.5% (2016 – 0.5%).Shouldtheinterestratesonthefloatingrateinstrumentsincrease/decreaseby50basispoints(2015–50basispoints),withallothervariablesheldconstant,theprofitfortheyearwouldincrease/decreaseby$2,257(2016–$511).

The tables below summarize the Society’s exposure to interest rate risk by categorizing thecarryingamountsofassetsandliabilitiesbytheearlierofthecontractualrepricingormaturitydates.

Up to one year

Overoneyear

Non-InterestBearing

Total

Asat31December2017

CashResources 14,889,254 - 443,667 15,332,921LoanAssets 3,197,173 35,450,576 24,234 38,671,983Investments 6,199,143 1,055,000 - 7,254,143Other Assets (Property, Plant andEquipment / Retirement BenefitSurplus) - - 2,136,576 2,136,576TotalAssets 24,285,570 36,505,576 2,604,477 63,395,623

Investors'Balances 49,055,168 - - 49,055,168 OtherLiabilities - - 118,664 118,664 TotalInvestors'BalancesandOtherLiabilties 49,055,168 - 118,664 49,173,832

InterestSensitivityGap (24,769,598) 36,505,576 2,485,813






(d) INTERESTRATERISK

Up to one year

Overoneyear

Non-InterestBearing

Total

Asat31December2016

CashResources 12,178,706 - 468,715 12,647,421LoanAssets 37,220,062 - 75,012 37,295,074Investments 6,423,892 1,506,679 - 7,930,571Other Assets (Property, Plant andEquipment / Retirement BenefitSurplus) - - 1,945,019 1,945,019TotalAssets 55,822,660 1,506,679 2,488,746 59,818,085

Investors'Balances 47,005,510 - - 47,005,510OtherLiabilities - - 167,202 167,202TotalInvestors'BalancesandOtherLiabilties 47,005,510 - 167,202 47,172,712

InterestSensitivityGap 8,817,150 1,506,679 2,321,544

The effective interest rates/yields on significant financialinstrumentsareasfollows: 2017 2016 % %

FixedDeposits 2.8 3.6 Mortgages 6.2 6.4 Investments 3.8 3.8 Investors'Balances 2.2 2.5






(e) LIqUIDITYRISK

LiquidityriskistheriskthattheSocietyisnotabletomeetitsfinancialobligationsastheyfalldue.TheSociety isexposed todaily callson its cash resources from investors’accountsandmortgagedrawdowns.TheSociety’sliquiditypolicyistomaintainsufficientliquidresourcestocovercashflowimbalancesandfluctuationsinfunding,toretainfullpublicconfidenceinthesolvencyoftheSocietyandtoenableittomeetallfinancialobligations.Thisisachievedthroughmaintainingaprudentlevelofliquidassetsandthroughmanagementcontrolofthegrowthofbusiness.

AlltheSociety’sfinancialliabilitiesarepayablewithinonemonthoftheStatementofFinancialPositiondate.However,inpractice,investors’balancesarerepaidlaterthanontheearliestdateonwhichrepaymentcanberequired.

ThetablesbelowanalyzeassetsandliabilitiesoftheSocietyintorelevantmaturitygroupings.

Up to one year

Onetofiveyears

Overfiveyears

Total

Asat31December2017

CashResources 15,332,921 - - 15,332,921LoanAssets 3,221,407 8,724,517 26,726,059 38,671,983Investments 6,199,143 1,055,000 - 7,254,143OtherAssets 269,048 1,628,692 238,836 2,136,576TotalAssets 25,022,519 11,408,209 26,964,895 63,395,623

Investors'Balances 49,055,168 - - 49,055,168 OtherLiabilities 79,626 25,136 13,902 118,664

TotalInvestors'BalancesandOtherLiabilities 49,134,794 25,136 13,902 49,173,832

NetLiquidityGap (24,112,275) 11,383,073 26,950,993






(e) LIqUIDITYRISK(Cont’d)

Up to one year

Onetofiveyears

Overfiveyears

Total

Asat31December2016

CashResources 12,647,421 - - 12,647,421LoanAssets 2,988,763 8,534,444 25,831,808 37,355,015Investments 6,768,276 1,162,295 - 7,930,571OtherAssets 279,077 1,573,695 92,247 1,945,019TotalAssets 22,683,537 11,270,434 25,924,055 59,878,026

Investors'Balances 47,005,510 - - 47,005,510OtherLiabilities 122,448 25,584 19,170 167,202

TotalInvestors'BalancesandOtherLiabilities 47,127,958 25,584 19,170 47,172,712

NetLiquidityGap (24,444,421) 11,244,850 25,904,885

(f) FOREIGNEXCHANGERISK

ForeignexchangeexposurearisesfromtheSociety’sholdingofforeign-denominatedfinancialassets.Managementlimitstheexposuretounfavourableexchangeratemovementsbyinvestinginstablecurrencies.

AggregateAssetsdenominatedinForeignCurrencies 2017 2016amountedto:

BritishPoundSterling 67,282 52,714

UnitedStatesDollar 686,736 679,924






(f) FOREIGNEXCHANGERISK(Cont'd)

At31December2017,iftheGuyanadollarhadweakened/strengthenedby1%againsttheBritishPoundSterling,withallothervariablesheldconstant,profitfortheyearwouldhavebeen$673(2016–$2,635fora5%change)higher/lower.

At31December2017,iftheGuyanadollarhadweakened/strengthenedby1%againsttheUSDollar,withallothervariablesheldconstant,profitfortheyearwouldhavebeen$6,867higher/lower.

21. CAPITALCOMMITMENT

2017 2016CapitalCommitmentsforPropertyandEquipmentAuthorizedandContractedfor - 61,000

22. FAIRVALUEMEASUREMENTS

Financialassets/financialliabilities

Fairvalueasat Fairvaluehierarchy

Valuationtechniquesandkeyinputs

Significantunobservable

inputs

Relationshipof

unobservableinputstofair

value31/12/2017 31/12/2016

LoanAssets Asset-41,674,058

Asset-40,662,836

Level-2 Thefairvalueoftheloanassetswasestimatedtobeusingthediscountedamountoftheestimateoffuturecashflowsexpectedtobereceived.Expectedcashflowsarediscountedatthecurrentmarketratestodeterminethefairvalue.

N/A N/A

Investments-GovernmentofGuyanaTreasuryBills

Asset-5,842,598

Asset-6,424,386

Level-2 Thefairvalueshavebeenestimatedbyapplyingdiscountedcashflowsanalysis,usingcurrentmarketrates.

N/A N/A

Investments-UnitedKingdomGovernmentTreasuryLoans

Nil Asset-63,976

Level-1 ThefairvalueoftheUnitedKingdomGovernmentTreasuryLoansisbasedoncurrentmarketvalue.

N/A N/A

Investments-BerbiceBridgeCompanyInc.Bonds

Asset-1,569,845

Asset-1,663,926

Level-2 Thefairvalueshavebeenestimatedbyapplyingdiscountedcashflowsanalysis,usingactuarialdiscountedratesforsimilarterminvestments.

N/A N/A





23. FAIRVALUEMEASUREMENTS(Cont’d)

Financialassets/financialliabilities

Fairvalueasat Fairvaluehierarchy

Valuationtechniquesandkeyinputs

Significantunobservable

inputs

Relationshipof

unobservableinputstofair

value31/12/2017 31/12/2016

FreeholdLandandBuildings

Asset-1,554,745

Asset-1,570,573

Level-3 "TheappraisalwascarriedoutinOctober2016usingamarketapproachthatreflectsobservedpricesforrecentmarkettransactionsforsimilarpropertiesandincorporatesadjustmentsforfactorsspecifictothe freeholdlandandbuildingsinquestion,includingplotsize,location,encumbrancesandcurrent use."

"Thesignificantunobservableinputistheadjustment forfactorsspecifictothefreeholdlandandbuildingsinquestion.Theextentanddirectionofthisadjustment depends onthenumber and characteristicsofthe observablemarkettransactionsinsimilarpropertiesthatareusedasthestartingpointforvaluation."

Grantingthattheinputsaresubjectivejudgements,managementconsidersthattheoverallvaluationwouldnotbemateriallyaffectedbyreasonablypossiblealternativeassumptions.

CashResourcesandOtherAssets

CashResourcesandOtherAssets:Thecarryingvalueofcashresourcesandotherassetsapproximatetofairvaluegiventheirshorttermnature.

Investors'BalancesandOtherLiabilities

Thefairvalueofinvestors'balancesandotherliabilitiesapproximatestotheamountrepayableondemandasthebalancescarrynostatedmaturity.

There were no transfer between levels in the current year.





24. CONTINGENTMATTERS

(a) CLAIMFROMAMEMBER

On16October2007,theSocietyreceivedawritfromamemberseekinganamountof$7,673whichwasallegedlygiventoanemployeeoftheSocietytoconvert intoforeigncurrencyforremittanceoverseas.Thesum,itwasclaimed,wasnotremittedorreturnedtothemember.Theinitialrulingofthecourtwasinfavouroftheplaintiff.TheSocietyhasappealedthisrulingandisconfidentofsuccessonappeal.Noprovisionhasbeenmadeforthesumsinthisregardinthesefinancialstatements.

(b) CLAIMSFROMBUILDINGCONSULTANTS

During December 2008 the Society received three writs of claim totaling $29,829 fromconsultants involved inprovidingarchitectural, structuralengineeringandquantitysurveyingservicesinrespectofpreparatoryworksfortheconstructionoftheSociety’snewHeadOffice.Theinitialrulingofthecourtwasinfavouroftheplaintiff.TheSocietyhasappealedthisrulingandisconfidentofsuccessonappeal.Noprovisionhasbeenmadeforthesumsinthisregardinthesefinancialstatements.

(c) CLAIMSFROMFORMEREMPLOYEES

During2010,theSocietyreceivedfromthreeformeremployeeswritsseekingdamagesinexcessoffiftymilliondollarsineachcaseforwrongfuldismissalandbreachofcontractofemployment.Thetrial for thesecasesarecurrentlyengagingtheattentionof thecourt. Judgement in theHighCourtwasgrantedinfavourofoneofthePlaintiffsonJuly20,2017inexcessoffiftymilliondollars.TheSocietyhasfiledanappealinresponsetothatjudgement.However,anorderwasgrantedbytheCourtofAppealdirectingthatthepensionbenefitsbepaid,whilethepropertyof the Plaintiffwas lodged on security representing the amount paid. Thismatter has beenappealedandawaitinghearingintheCourtofAppeal.Theothertwo(2)mattersarecurrentlywaitingtobeheardbytheHighCourt.Noprovisionhasbeenmadeforthesumsclaimedinthesefinancialstatements,astheSocietyisconfidentofdefendingallthree(3)actions.



Our Contributions and Sponsorships

Mrs. Bibi Jagnarayan, Manager of the NBS’ Rosignol Branch, presents a Trophy to the Best Graduating Student of Cotton Tree Primary School in Mathematics at the National Grade Six Assessment 2017.

Miss Angale Alberts of NBS’ Mackenzie Branch presents Ms. Marcia Brisport, Head Teacher of Watooka Day Primary with a Trophy for that School’s Annual Prize Giving Exercise.

Ms. Malveka Persaud of the Society’s Rosignol Branch Office, hands over the Society’s donation to a member of the Disabled Persons Network Region 5 in the presence of his colleague and other Members of Staff of the NBS.

COTTON TREE PRIMARY BEST GRADUATING STUDENT IN MATHS

WATOOKA DAY PRIMARY SCHOOL DONATION

DISABLED PEOPLE NETWORK



Our Contributions and Sponsorships (Cont’d)

Mr. Roger Harper, President of the Georgetown Cricket Association (GCA), accepts NBS’ Sponsorship cheque for the Second Division 40-Over Cricket Competition from the Society’s CEO/Director/Secretary, Mr. Anil Kishun. NBS Directors and other members of the GCA look on approvingly

Ms. Bridget Chichester, the Centre Administrator for the Community Based Rehabilitation Programme Region 6, receives NBS’ Contribution from Mr. Mahendra Ramdihal of the Society’s Rosehall Branch Office

Researchers from the American University in Washington, D.C. visited Guyana to conduct studies of various aspects of life in Guyana. They visited NBS as part of their program.

CRICKET LAUNCH 2017

RAMDIHAL PRESENTING TO REHAB CENTRE

AMERICAN RESEARCHERS VISIT NBS



The New Building Society Limited1 North Road & Avenue of the Republic,Georgetown, Guyana.Tel: 227-4444. Fax: 225-0832Website: www.nbsgy.comEmail: [email protected]

NBS Corriverton Branch

Documents

2017 · 2019-03-14 · Notice is hereby given that the Seventy-Eighth Annual General Meetingof the Members of the New Building Society Limited will be held at 10.30 a.m on Saturday,