Chairman’s Message

CEO’s Year-end Report on Operations

Gross Revenue Breakdown / Asset Comparison

Shareholders’ Equity / Ratios

Products and Services

Board of Directors

Independent Auditors’ Report

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to Consolidated Financial Statements

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Table of ConTenTs

ANNUAL REPORT & ACCOUNTS

2 0 1 7

Chairman’s message

Itisalwaysgratifyingtoreportanotheryearofprofitablegrowthmoreoverwiththeknowledgethatthecompanyisperformingwellinthecurrentfinancialyear.Aswelookforwardweareconfidentthatourbusinessmodelhasprovenitssustainability–26yearsofprofitablegrowthanddevelopment–andwhiletheperformanceofsomeofourmarketsisslowerthanwewouldlike,ourpipelineofnewbusinessishealthyandourforecastforthecurrentyearisfullofpromise.Butwhatdoesthefutureholdlongertermforus?

Weareinadigitalrevolution,andmereadaptationisnotenough.Digitaltechnologiesareadvancingrapidly,constantlychanginghowpeople liveandwork.Weneedtoseeourbusiness,whatwedo forourcustomers, throughdigitaleyes.Inotherwordsweneedtochangehowwedesignanddeliverourservicesinadigitalage.Theseservicesrequiretransformationintothedigitalage.ChrisSkinnersays:“This,tome,isthebattlegroundwhenI’mtalkingaboutthedigitalrevolution,thedigitalhuman,thedigitalbank:Ifyoudonotgetcognitive,predictive,proactive,customanalyticsthatgivethecustomerfarmoreinformedviewabouttheirfinancialaffairs,youwillnotbethepartnerforthatcustomerintheirfinancialfuture.Howdo[banksofthefuture]makemoney?Theansweris,bybeingthemostintimateproviderofservicetothecustomerbasedonthatdigitalfootprint,andbybeingabletoreallyleverageourunderstandingofthecustomer’sfinanciallifestylefarbetterthananyotherplayer.”

Tostaycompetitive,wewill invest in thisdigital transformationmoredeeplyandmoreprofoundly thaneverbeforeinourhistoryinordertorealisedramaticcostreductions.However,costreductionsontheirownwillnotguaranteea profitable outcome and likely thesemust bemore for the benefit of our clients anyway. Our transformationmustcontemplatereorganizingourbusinesstoidentifythekeyrolesthatwecanplayinthisnewfinancialecosystem,andthecapabilitiesonwhichwewillneedtofocus,thenicheswherewecangainsustainablecompetitiveadvantages.Havingsaidthis,andaswithallareasofchange,makingithappentimelywithinthecontextofongoingbusinessdemandsandpressuresisasignificantchallenge.Asaresult,weneedtofocusonthespeedofdeployment,ratherthancost,thecriticalbenefitofnewtechnologybeingmakingitworkinthecontextofactualbusinessandavailableresources.Isthispossiblebearinginmindthatourbusinessisrelationshipdriven?

Asamerchantbank, inaddition toproviding trusteeandfirst classadministrative services tocorporateandinvestmentfunds,Winterbothamhasestablishedpoliciesandproceduresdesignedtosatisfytheongoingevolutionofregulatoryrequirementsandtodeliversolutionstoourclientsasefficientlyaspossible,whilesafeguardingtheclients’and thecompany’s interest.New technologiesareallowingpeople toengagewitheachotherandbusinesses innewways,whichmeansadaptingtechnologiestobehavioralchanges.Comingtotermswithdigitalizationasaholisticeffortwillmeanchange.Thischangeimpliesre-focusingprioritieswhichwillrequirebringingonboardnewskillsets,imposingsignificantdemandsontheleadershipoftheCompany.

Gonearethelongstandingnotionswegrewuptotakeforgranted:theautomaticabilitytohaveabankaccount,accesstoabankmanagercapableofprovidingintelligentadvice,discretionarypersonalservices,theabilitytodiscussandresolvesituationsthatdonotfitinthebox;inare:aregulatoryinvasionintovirtuallyeveryaspectofourlives,obligatorydigitalaccess,necessityofhigh levelusersophistication, the functionarywhoseskillsare limited todigitalprocess.AtWinterbothamweare striving to transformourdelivery toprovide thecustomerwithgreater self-servicepreferences,recognizingthatourcustomerisbecomingdigitallysophisticatedandaccustomedtocomputerizedefficiencies;weareengagedinredesigningourarchitecturewiththeaimofsimplifyingoperationsandtopromoterapidlearningandagility;weareprovidingincentivestocollaborationandintentonbuildingourleadershiptalentandensurethatweacquirethecriticalskillsneeded;weareseekingtorenewourgovernancetodrivesystematicinnovationandtoclarifyourdecisionmakingprocesstobettermanageandsharekeycapabilities.

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Atthesametimewearealsostrivingtomaintainpersonalrelationshipswithourclients.Ourbusinessmodeldoesnotthriveonsocialmedia“touches”;wecannotdependsimplyontextsandemailstobuildrelationships,notwithstandingthesearevital tools toour trade.ForWinterbothamdigitalization isnotasubstitutebutratheranenhancement inourengagementtodeveloppersonalrelationships.Itisourconvictionthatunderstandingtheneedsofourclientscanonlybeachievedthroughspendingtimemeetingandconversingwiththem,andlearningaboutthem.

Winterbothamisdifferent fromour [perceived]competitorsbecausewecraft tailormadesolutionsthatplugintoarangeofcustomerexperiences,andwegobeyondtypicalindustryboundariestoensurethatthesolutionsmeetthegoalsset.TheWinterbothamTrustCompanysuppliesthecomponentstostructuretransactionsandtooptimizetheirperformance;TheWinterbothamMerchantBankisaplatformenablingtheimplementationoftransactions,brokeringtheservicesofotherplayersacrossthefinancialecosystem.Digitalizationintheseendeavorswillcreatenewsourcesofgrowthforthecompanyandincreasedrewardsforallourstakeholders.

Duringthefinancialyear,welaunchedourCaymanofficeandtheinitialresultsareencouraging,andweanticipatethatthisventurewillbeprofitablethisyear.WestartthenewfinancialyearwithourPuertoRicanproject.Hurricanescomeandgoleavingdevastationintheirwake,andinPuertoRicoHurricaneMariawastrulyacatastrophe.WewerefortunateinthatourfacilitiesinTheBahamasandCaymanwerenotaffectedbyeitherIrmaorMaria,andthatinSanJuantheofficebuildingwherewehaveleasedspacewasnotdamaged.However,therecoveryinPuertoRicohasbeenslowandthishasaffectedourabilitytogettheofficeupandrunning.Similarly,thoseinvolvedintheprocessoflaunchingournewsubsidiarybank,WTCInternationalBankCorporation,staff,regulatorsandadvisorshaveallbeenpersonallydisadvantagedinonewayoranotherandgettingbacktonormalisapainfulprocess.Wenowanticipatethattheissueofourlicenceisimminentandthatwewillbeabletoinaugurateoperationsin2018.

Thefinancialyearalsosawthecorrespondentbankingdebacleevolve.WinterbothamwasabletoopennewcorrespondentrelationshipsinEurope,whilethereseemedtobelightattheendofthetunnelwithrespecttoUSbanks.Toassuagetheincredulityof[potential]correspondents,WinterbothamundertooktwoindependentrigorousAML/KYCauditsbytworeputableUSconsultanciesspecializedinregulatorycompliance.Thefirstbychoice,inordertoreconfirmourownbeliefthatourpolicies,proceduresandsystemsandtheirimplementationmeetbestpracticesthroughouttheindustryintheOECD,andthesecondattherequestofaUSbankasapartoftheirduediligenceprocess.Iampleasedtoreportthatinbothcasestheresultsweresatisfactory,andnomaterialomissionswereidentified.Wehavesinceintroducedanumberofenhancementswhichwereproposedtoensurethatwemeettheexpectationsofcorrespondents,particularlyUSbased,andsothatwearealignedwiththeirmethodology.

MycongratulationstotheCEOandtheCsfortheirperformance,andmythankstoallmanagementandstafffortheirhardworkanddedicationthroughthefinancialyear.

GeoffreyHooperChairman

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WeatWinterbotham,withcontinuedhardworkanddedication,haveseenyetanotherexcellentperformanceforourfinancialyearendtoJune30,2017,asaresultofagoodmixtureofsolidclientandcounterpartyrelationships,soundbusinesspractice,andriskadversepolicies.

Iampleasedtoreportthatforathirdconsecutiveyearrunning,wehaveachievedarecordresult,thebestinourhistory.Wecontinuefocusingourstrategyinconsistentlyprovidingaqualifiedvarietyofcorporate,fundadministration,trust,bankingandfinancialservicesacrossaboardbaseofmarketsandsectors.Themaintenanceofthesestrategiesisthusreflectedinthegoodresultswehavebeenabletogenerateyearonyear.

OurfinancialresultstoJune30,2016wereanall-timerecordforourcompany.Whenweplannedthebudgetforfinancialyear2017weknewwewouldfinditchallengingtocontinuethelevelofgrowthandprofitability,givenourexpansion into theCayman Islands, thedevelopmentofabanking subsidiary in theUS, focusingoncertifying to ISOstandardsmanyofourprocedures,aswellastheincreasedregulatoryandcompliancecostsassociatedtooperatinginfinancialservices.Atthesametime,weanticipatedareductioninrevenuefromourbankingservicesfollowingthechangeinourbankingstrategy.

Grossrevenuesincreasedby6%,toUS$21.7million.Ournetincomebeforeemployeeprofitparticipationgrewby8%overlastyear.Returnonequitywas41%.

Ouradministrativebusinesslineshadamixedperformance.OurTrustDivisiongrewby9%,ourFundServicesdivisionby5%andservicestofinancialinstitutionsbyanimpressive61%,whilewesawa9%decreaseinourCorporateServicesrevenue.

Onthetransactionalside,wealsoachievedmixedresultsthroughoutourbusinesslines.AsImentionedinmyreportat thecloseof lastyearwehaverefocusedourbankingstrategytomainlyserviceonly thoseclientswhichalsoutilizeouradministrativebusinesslines,withourbankingplatform.Wehadanticipatedadeclinefortheyearofaround30%onourbankingservicesandare thereforeencouragedby the fact thatactualdecreasewas11%.Showinggreatstrengthasnewaccountstiedtoouradministrativebusinesslinesopened.OurCustodydivisionincreased40%andwesawadecreaseof19%intherevenuefromourFXdeskand28%inourbrokerageservicesfollowingwhathadbeenaverysuccessfulpreviousyear.

ITservicestothirdpartiesperformedasexpectedwithariseof4%.Wewillcontinuetoinnovateandenhanceourtechnologyservicestoclientswithaviewofcontinuingthegrowthinthisdivision.Technologybasedsolutionsarekeyenhancementsinourservicerelationshiptoourclients.

AstheFedincreasedinterestrates,andcombinedwithprofessionalsupportenabledustoimproveourfinancialincomesignificantlyachievinga60%increaseversuslastyear.

Operating expenses (before employee profit participation) increased 4% compared to the previous yearandweremaintainedwithinthelevelprojectedinthebudget.OurmainincreaseincostsisreflectedbyHR,up12%ascomparedtothepreviousyear.TheopeningofanofficeintheCaymanIslandsresultedincostincreaseinmostareasasweaddedrent,salariesandallotheroperatingexpenses.Weareconfidentthattherevenueoriginatedbythisofficewillbecomeasolidrevenuecontributorgoingforward.

Evidentlyourstaff formsan importantbackbone toouroperations,and in recognitionof theirdedication toourcustomersandourorganization,andforathirdyearrunningthecompanyhasagainprovidedthemaximumbonusentitlement for those who qualified, through our employee profit participation and performance bonus schemes.Managementperformancewasawardedthroughourdiscretionarybonusprogram.

Ceo´s Year-end reporT on operaTions

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Wecontinuedevelopingourmanagements leadership skills, and I ampleasedwith thecommitment toourprogram.Furtherworkisrequiredtocontinueenhancingourcapabilitiesandcontinuetobenefitpositivelyfrominvestingtheadequatetimeinthisarea.Ourinternalemployeesurveycontinuestoreflectpositivelyonthecommitmentandsuccessoftheprogram.Wewillcontinuetocreatetheconditionsforsuccessforeachindividualstaffmemberandthecompanyasawhole.

Stafftrainingisanotherareathatremainsattheforefrontofourcompany,asthroughtrainingweareabletomaintainandimproveonthelevelofreliabletailormadeservicestoourcustomers.Ourbudgetforthisissignificant,andisincreasedfromyeartoyear.Trainingcoursesincludelanguages(Mandarin,Spanish,PortugueseandEnglish),securities,trust,fund,informationtechnology,riskmanagement,banking,humanresourcesandcompliance.Inaddition,wecontinuetosponsorhighereducationcoursesandpostgraduatestudies.

Bothcompliance,AML/CFTinternalauditandriskmanagementhavebeenconstantlyatthetopofouragendasthroughouttheyear,andwecontinuetomakefurtherenhancementstowardstheseareasinordertoexceedglobalbestpracticesandregulatoryrequirements.

AsIcontinuetorepeatyearafteryear,westillhavealottodo,andmuchtoachieve.Solongaswekeepourfocusanddedication,Ihavenodoubtthatwewillachieveevenbetterresultsinthefuture.

Ourthankstoallthosecustomers,staff,partners,correspondents,serviceproviders,suppliersandregulatorswhocontributedtoanothersuccessfulfinancialyear.Wewillcontinuetomakegoodprogressinadaptingthebusinesstomeetthechallengesofthefuture,andgrowaswedoso.

IvanHooperCeo

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gross revenue breakdown

asset Comparison

Cash&Banks AccountsReceivable Others FixedAssets InvestmentPortfolio SecuredLoans

Companies&Trusts Funds

CorporateFinance CustodyServices

FinancialInstitutions FinancialOperations FinancialIncome&Other

WCA.netFees Brokerage&ForexOp.

70,000

65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

000'

s of

USD'

s

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

000'

s of

USD

's

8

shareholders’ equity

ratios

NetIncome/TotalIncome NetIncome/Shareholders´Equity TotalDebtors/TotalIncome

15,000

14,000

13,000

12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

000'

s of

USD

's

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

60%

50%

40%

30%

20%

10%

0%2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Regulated by the Central Bank of The Bahamas and the Securities CommissionThe Winterbotham Trust Company Limited is a bank and trust company,

investment fund administrator and broker/dealer.

Regulated by the Central Bank of Uruguay Winterbotham Fiduciaria S.A.is a fund administrator and trust company.

Regulated in Hong Kong under the Trustee OrdinanceThe Winterbotham Trust Company (Hong Kong) Limited

is a registered trust company.

Regulated by the Cayman Islands Monetary AuthorityWinterbotham Corporate and Fund Services (Cayman) Limited

Is a registered Mutual Fund Administrator and a Companies Management Licensee

The main divisions are:

The Winterbotham Merchant Bank, Winterbotham Trust & Fiduciary Services,Winterbotham International Securities, Winterbotham Fund Services,Winterbotham Corporate Services, Winterbotham Corporate Finance

and Winterbotham Outsourcing Services.

The Winterbotham Merchant Bank,provides Cash Management services to a broad range of businesses involved in

cross-border financial transactions, trade and investment. Receive and pay moneyinternationally with ease and efficiency and optimize overnight placement of

surplus liquidity.

Accounts are multi-currency and may be established in any currency.

Winterbotham Trust & Fiduciary ServicesComprehensive trust administration services including PTC’s to meet the

objectives of both corporations and individuals.

Corporate trust services – escrow agent, loan trustee, dissolutions trusts.

Winterbotham Corporate ServicesPrime solutions for complex situations structuring

transactions and operations for corporate customers and their shareholders.Proven ability in the implementation of cross border trade and investment.

Added value in the provision of administrative and accounting (IFRS) services.

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Winterbotham Funds ServicesTailor-made provision of advisory,

licensing, and incorporation services to fund sponsors,promoters and managers.

Providing domiciliary, administrative, registrar and transfer agent,compliance, and full accounting services (daily, weekly, monthly, quarterly NAV)

to investment funds, including hedge, private equity, venture capital and alternativeinvestment funds.

Execution, clearing, custody and asset servicing.

Winterbotham International Securities,

Global Custody platform viaWinterbotham Custody Services

provides non-discretionary – execution only – brokerage services.Executing and trading fixed income and equities – specializing in emerging markets.

Winterbotham Corporate FinanceProviding corporate finance, merger & acquisition,

and structured trade finance services to middle-marketcorporations in Mercosur, Caribbean and Asia Pacific

regions and for companies seeking to undertakebusiness or investments in Latin America and China.

The division is also actively engaged in providingboth equity and debt financing solutions and in

advising on joint-venture or acquisition strategies forits clients.

Winterbotham Outsourcing ServicesProvides administrative, IT (support and contingency),

compliance, accounting services and physical presenceinfrastructure on an outsourced basis to financial

institutions and corporations.

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board of direCTors

geoffrey hooper, Chairman – director

EstablishedWinterbothamin1990.PreviouslyGeoffreywasVicePresidentandSeniorAreaRepresentativeforLloydsBankInternationalPrivateBanking,apartofLLoydsBankPlc,andadirectorofLloyds(IPB)AmericasSAWithmorethan30yearsexperienceinInternationalbanking and financial servicesGeoffrey hasworked in theUK. Spain, and LatinAmericawith Lloyds Bank Plc, Natwest lnternational Trust Corporation (formerly Roywest TrustCorporation),theArabLatinAmericanBank(Arlabank)andTraditionInternationalS.A.

ivan hooper, director

Ivan,Winterbotham`sCEO,hasspentmorethanfifteenyearsatWinterbotham,startingasan IndependentConsultant forTheWinterbothamTrustCompany (Uruguay)S.A.,beforejoiningtheGroupfulltimeinJuly2001.IvanhasaBSc.inBusinessAdministrationfromtheUniversityofBath, aMBAWealthManagers, Fiduciaries andTrustees from theUniversityofManchester, and is a graduate of Harvard Business School on theOwners Presidentsmanagement program. Ivan is a member of STEP, a foundingmember, current directorand thepastChairof STEP - SouthAmericaBranch, currentChairof theCaribbeanandLatinAmericaregion,aSTEPTrusteeManagedPortfolioIndices(TMPI)PractitionerGroupmember,aFellowoftheInternationalComplianceAssociation,isLicensedasaPrincipalbytheSecuritiesCommissionofTheBahamas,isCo-ChairoftheAssociationofInternationalBankandTrustcompaniesinTheBahamasandaDirectoroftheBahamasFinancialServicesBoard.IvanwasarecipientoftheSTEP2014Founder’sAwardsforOutstandingAchievementand the recipient of the Bahamas Financial Service Board 14th FSI ExcellenceAward ofExecutiveoftheYear.

andrew law, deputy Chairman – director

AndrewistheFounderofIPGFamilyOfficeLimited,anindependentestateandinheritanceplanning consultancy based in Nassau, Bahamas and Zurich, Switzerland. He has morethan 30 years experience in the fiduciary services industry having worked in Guernsey,Switzerland,andTheBahamasfortheCreditSuisseGroup.Mr.LawservesonanumberofGovernment/privatesectorindustryworkinggroupsestablishedbytheBahamasFinancialServicesBoard.HeisalsoapastChairmanoftheAssociationofInternationalBanksandTrustCompaniesinTheBahamas.

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alan davidson, director

Ahighlysuccessfulbanker,AlanwaspreviouslywithABNAMROBankfor15years,whereheheldnotableseniormanagementpostsasDirectorLatinAmerica,basedintheUSA,ChiefOperationsOfficer inUruguay,andSVPOperations inBrazil.Before thatheheldvariousseniormanagementpositionswithLloydsTSBBank,wherehespent15yearsbetweenBrazilandtheUnitedKingdom.

peter Trace, director

AFellowoftheInstituteofCharteredAccountantsinEnglandandWalesandaMemberoftheSocietyofTrustandEstatePractitioners,PeterstartedandheadedupSchrodersprivatebankingbusinessinAsia.AsdirectorofSchrodersAsia,SchrodersInvestmentManagement,SchrodersCaymanandChiefRepresentativeofSchrodersSwitzerlandinAsia,Peterspentsome11yearsinchargeofSchroders’businessesthere.PriortojoiningSchroders,hewasManagingDirectorofPrivateCapital(Asia)Limited,asubsidiaryofScandinavianBankGroupPlc,andpreviouslyranhisownfinancialconsultancybusinessinHongKong.

sandra Knowles, director

An historian, and teacher at heart, Sandra’s experience in the financial services industryspannedmore than twenty years, duringwhich time she acquiredextensive expertise ininternational banking and financial regulation. Having spent thirteen years at RoywestCorporation (Bahamas) Limited, In 1993, Sandrawas appointed the first femaleGeneralManagerof theBroadcastingCorporationofTheBahamas. In1997,shebecamethefirstfemaleChiefExecutiveOfficerofTheSecuritiesCommissionofTheBahamas,apositionshehelduntil2002.From2002,SandraservesAFHoldingsGroupofCompaniesinmanycapacities, including director, consultant and General Manager to the Nassau Guardian(1844) Ltd. She continues to advise in the successful development of multiple smallbusinesses.

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opinion

We have audited the financial statements of The Winterbotham Trust Company Limited (the Company), which comprise the statement of financial position as at June 30, 2017, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at June 30, 2017, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our

report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

responsibilities of management and Those Charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, 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.

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

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

auditors’ responsibilities for the audit of the financial statements

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

independenT audiTors’ reporTTo the Board of Directors of The Winterbotham Trust Company Limited:

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As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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

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

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

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Bank to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

october 31, 2017

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Seenotestoconsolidatedfinancialstatements.

These consolidated financial statements were approved by theBoard of Directors on October 26, 2017, are signed on its behalf by:

asseTs 2017 2016

CURRENTASSETS:Cashandcashequivalents(Note5) $ 51,005,232 $ 39,792,132Accountsreceivable,net(Note6) 1,401,885 1,366,068Prepaidexpensesandotherassets(Notes7and21) 909,055 1,738,155Repurchaseagreements(Note8) 1,171,562 1,279,790Investments(Note9) 9,022,684 5,102,154 Total current assets 63,510,418 49,278,299

NON-CURRENTASSETS:Securitydeposits 619,312 570,600Property,plantandequipment,net(Note10) 4,205,792 4,426,670Deferredtaxassets(Notes22and23) 9,902 33,150 Total non-current assets 4,835,006 5,030,420

ToTal $ 68,345,424 $ 54,308,719

liabiliTies and eQuiTY

CURRENTLIABILITIES:Callaccounts(Note11) $ 24,254,408 $ 27,715,035Accountspayableandaccruedliabilities(Note12) 8,835,269 3,970,043Loansandinterestpayable 11,606,645 291,875Dividendspayable(Note18) 6,000,000 5,000,000Advancesfromclients(Note13) 996,649 707,349Feesreceivedinadvance(Note13) 2,198,238 2,075,683 Total current liabilities 53,891,209 39,759,985

EQUITY:Sharecapital:Authorized,issuedandfullypaid:2,500,000sharesof$1each 2,500,000 2,500,000Contributedsurplus(Note19) 551,000 551,000Legalreserves(Note20) 168,169 156,638Revaluationreservesforavailable-for-saleinvestments(Note9) 855,236 1,043,760Retainedearnings 10,340,820 10,258,346 equity attributable to equity holders of the parent 14,415,225 14,509,744

Non-controllinginterest 38,990 38,990 Total equity 14,454,215 14,548,734

ToTal $ 68,345,424 $ 54,308,719

director

ConsolidaTed sTaTemenT of finanCial posiTionAS AT JUNE 30, 2017 (Expressed in United States Dollars)

director

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Seenotestoconsolidatedfinancialstatements.

ConsolidaTed sTaTemenT of profiT or loss and oTherComprehensiVe inCome

YEAR ENDED JUNE 30, 2017 (Expressed in United States Dollars)

2017 2016

INCOME:Feesforadministrationservices $ 12,247,269 $ 12,083,148Commissionsandfeesonfiduciarytransactions(Note14) 5,725,265 6,197,990Feesforcompanyincorporationservices 650,657 670,889 Total net fee and commission income 18,623,191 18,952,027

EXPENSES:Salariesandbenefits(Note21) (7,544,667) (6,724,545)Administrativeandgeneralexpenses(Note16) (3,776,948) (4,288,484)Employeeprofitparticipation(Notes15and21) (2,352,830) (1,872,000)Costsrelatedwithfeesonfiduciarytransactions(Note14) (794,643) (564,821)Depreciation(Note10) (495,539) (431,782)Costsrelatedtocompanyincorporationservices (87,508) (126,368)Commissions (249,364) (278,469) Total expenses (15,301,499) (14,286,469)

Profit from operations 3,321,692 4,665,558

finanCial inCome (note 17) 2,306,261 1,446,603

oTher inCome 779,470 34,600

profiT before TaXaTion 6,407,423 6,146,761

Taxation(Notes22and23) (313,418) (231,357)profiT for The Year 6,094,005 5,915,404

OTHERCOMPREHENSIVEINCOME(LOSS): unrealized gain (loss) on available-for-sale investments (188,524) 359,318

ToTal ComprehensiVe inCome for The Year $ 5,905,481 $ 6,274,722

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ConsolidaTed sTaTemenT of Changes in eQuiTYYEAR ENDED JUNE 30, 2017 (Expressed in United States dollars)

balance at June 30, 2015 $ 2,500,000 $ 551,000 $ 153,342 $ 684,442 $ 9,346,238 $ 13,235,022 $ 38,990 $ 13,274,012

Netincomefortheyear - - - - 5,915,404 5,915,404 - 5,915,404

Legalreserve(Note20) - - 3,296 - (3,296) - - -

Dividendsdeclared(Note18) - - - - (5,000,000) (5,000,000) - (5,000,000)

Othercomprehensiveincome

for the year - - - 359,318 - 359,318 - 359,318

balance at June 30, 2016 2,500,000 551,000 156,638 1,043,760 10,258,346 14,509,744 38,990 14,548,734

Netincomefortheyear - - - - 6,094,005 6,094,005 - 6,094,005

Legalreserve(Note20) - - 11,531 - (11,531) - - -

Dividendsdeclared(Note18) - - - - (6,000,000) (6,000,000) - (6,000,000)

Othercomprehensiveincome

for the year - - - (188,524) - (188,524) - (188,524)

balance at June 30, 2017 $ 2,500,000 $ 551,000 $ 168,169 $ 855,236 $ 10,340,820 $ 14,415,225 $ 38,990 $ 14,454,215

Revaluationreservesfor

available-for-saleinvestments

Share

Capital

ContributedSurplus

Legal

ReservesRetained Earnings

Equityattributabletoequityholdersofthe parent

Non-controlling

interest Total

Seenotestoconsolidatedfinancialstatements.

18

ConsolidaTed sTaTemenT of Cash floWsYEAR ENDED JUNE 30, 2017 (Expressed in United States dollars)

2017 2016CASHFLOWSFROMOPERATINGACTIVITIES:Profitfortheyear $ 6,094,005 $ 5,915,404Adjustmentsfor:Depreciation(Note10) 495,539 431,782Unrealizedloss(gain)oninvestments 123,247 (174,007)Gainondisposaloffixedassets - (35,706) net cash from operations before working capital changes 6,712,791 6,137,473

Increaseinaccountsreceivable,net (35,817) (76,709)Decrease(increase)inprepaidexpensesandotherassets 829,100 (265,463)(Increase)decreaseinsecuritydeposits (48,712) 74,372Decreaseindeferredtaxassets 23,248 6,220Decreaseincallaccounts (3,460,627) (770,113)Increaseinaccountspayableandaccruedliabilities 4,865,226 1,071,105Increase(decrease)inadvancesfromclients 289,300 (528,801)Increaseinfeesreceivedinadvance 122,555 167,071 net cash from operating activities 9,297,064 5,815,155

CASHFLOWSFROMINVESTINGACTIVITIES:Purchaseoffixedassets(Note10) (274,661) (613,424)Newrepurchaseagreements (17,629) (665,881)Repurchaseagreementsproceeds 125,857 296,492Proceedsfromsaleoffixedassets - 35,706Purchaseofinvestments (4,306,762) (278,813)Proceedsfromsaleofinvestments 134,038 - net cash used in investing activities (4,339,157) (1,225,920)

CASHFLOWSFROMFINANCINGACTIVITIES:Dividendspaid (5,000,000) (2,000,000)Loansadvances 11,266,003 281,999Loansrepayments - (260,050)Interestcollected 184,444 116,300Interestpaid (195,254) (107,039) Net cash from (used in) financing activities 6,255,193 (1,968,790)

NETCHANGEINCASHANDCASHEQUIVALENTS 11,213,100 2,620,445

CASHANDCASHEQUIVALENTS,BEGINNINGOFYEAR 39,792,132 37,171,687

Cash and Cash eQuiValenTs, end of Year $ 51,005,232 $ 39,792,132

SUPPLEMENTALDISCLOSUREOFOPERATINGACTIVITIES: interest received $ 2,400,440 $ 1,205,213

Taxes paid $ 304,200 $ 225,455

dividends received $ 3,169 $ 181

Seenotestoconsolidatedfinancialstatements.

19

1. general

TheWinterbothamTrustCompanyLimited(the“Company”)wasincorporatedandlicensedinTheCommonwealthofTheBahamasin1994undertheBank&TrustCompanies’RegulationActof1965,andisa75%subsidiaryofWinterbothamHoldingsLimited. InDecember1996, theCompanywasgranteda license tocarryonunrestrictedbankingand trustbusiness,activitieswhich,today,aresubjecttothetermsandconditionsoftheBank&TrustCompaniesRegulationAct,2000.TheCompanyisregulatedbytheCentralBankofTheBahamas.TheCompanyisalsoalicensedfundadministratorandsecuritiesbroker/dealer,activitiesthatareregulatedbySecuritiesCommissionofTheBahamas.

TheseconsolidatedfinancialstatementsincludetheaccountsoftheCompanyanditssubsidiaries,whicharehereinaftercollectivelyreferredtoas“theGroup”.

AsofJune30,2017,theCompany’sholdingsinsubsidiariesareasfollows:

NAMEOFSUBSIDIARY

PLACEOFINCORPORATION

ANDOPERATION

OWNERSHIPINTEREST

PRINCIPALACTIVITY

TheWinterbothamTrustCompany(Uruguay)S.A.

Uruguay 100%

Providesadministrativeservicestotheparentcompanyoninternalmatters(suchascertainaccountingfunctions)andalsowithrespecttoclientservicing(withparticularfocusonclientsinLatinAmericaduetogeographicalproximity

andlanguagesimilarity).

ShiffelCorp.S.A. Uruguay 100%

Providesadministrativeservicestotheparentcompanyoninternalmatters(suchascertainaccountingfunctions)andalsowithrespecttoclientservicing(withparticularfocusonclientsinLatinAmericaduetogeographicalproximityandlanguagesimilarity).TheCompanyalsoprovidesITcontingencyservicestoitsParentandtoitsclients.Thiscompany

operatesfromafreetradezone.

WinterbothamPropertiesLimited Bahamas 100% Holdsreal-estateinNassau.

HaplarHoldingsLimited Bahamas 100% Holdsreal-estateinUruguay.

WNSLimited Bahamas 100% ActsasCompanySecretaryforclientcompanies.

WNDLimited Bahamas 100% ActsasCompanyDirectorforclientcompanies.

noTes To ConsolidaTed finanCial sTaTemenTsYEAR ENDED JUNE 30, 2017 (Expressed in United States dollars)

20

DelacroixLimitedandDelarocheLimitedaredulylicensedandregulatedbytheCentralBankofTheBahamasasNomineeTrustCompanies.Thesecompanies,actingindividuallyortogether,arenomineesforTheWinterbothamTrustCompanyLimitedinitscapacityastrusteeand/orcustodian.WNSLimited,WNDLimitedandWTDLimitedhavebeenapprovedby the Central Bank of The Bahamas as Financial and Corporate Services providers. Winterbotham Fiduciaria S.A.AdministradoradeFondosdeInversiónisdulylicensedandregulatedbytheCentralBankofUruguayasaprofessionalTrustCompanyandisawholly-ownedsubsidiaryofTheWinterbothamTrustCompany(Uruguay)S.A.

TheregisteredofficeoftheCompanyisWinterbothamPlace,MarlboroughandQueenStreets,Nassau,Bahamas.

Theaveragenumberofemployeesfortheyearis113(2016:112).

NAMEOFSUBSIDIARY

PLACEOFINCORPORATION

ANDOPERATION

OWNERSHIPINTEREST

PRINCIPALACTIVITY

WTDLimited Bahamas 100% ActsasCompanyDirectorforclientcompanies.

DelacroixLimited Bahamas 100%

ActsasanomineeofTheWinterbothamTrustCompany

Limitedinitscapacityastrusteeand/orcustodian.

DelarocheLimited Bahamas 100%

ActsasanomineeofTheWinterbothamTrustCompany

Limitedinitscapacityastrusteeand/orcustodian.

TheWinterbothamTrustCompany

(HongKong)LimitedHongKong 97%

Providesfiduciary,corporate,andtrustservicestoclientsandrepresentsthe

GroupinAsia.

WinterbothamCorporateandFundsServices(Cayman)Limited

Cayman 100%Providescorporateandfunds

administrationservicestoclientsandrepresentsthegroupinCayman

21

In the current year, there were several new and amended Standards and Interpretations issued by the InternationalAccountingStandardsBoard(the“IASB”)andtheInternationalFinancialReportingInterpretationsCommittee(the“IFRIC”)oftheIASBeffectiveforannualreportingperiodsbeginningonorafterJuly1,2016.TheadoptionoftheseStandardsandInterpretationshasnotledtoanychangesintheCompany’saccountingpolicies.

a. Standards and Interpretations effective but not affecting the reported results or financial position

effective date annual periods beginning on or after January 1, 2016IFRS5 Non-currentAssetsHeldforSaleandDiscontinuedOperations(Amendments)IFRS7 FinancialInstruments:Disclosures(Amendments)IFRS10 ConsolidatedFinancialStatements(Amendments)IFRS11 JointArrangements(Amendments)IFRS12 DisclosuresofInterestsinOtherEntities(Amendments)IFRS14 RegulatoryDeferralAccountsIAS1 PresentationofFinancialStatements(Amendments)IAS16 Property,PlantandEquipment(Amendments)IAS19 EmployeeBenefits(Amendments)IAS27 SeparateFinancialStatements(Amendments)IAS28 InvestmentsinAssociatesandJointVentures(Amendments)IAS34 InterimFinancialReporting(Amendments)IAS38 IntangibleAssets(Amendments)IAS41 Agriculture(Amendments)

b. standards and interpretations in issue but not yet effective

effective date annual periods beginning on or after January 1, 2017International Financial Reporting Standard for Small and Medium-sized Entities(Amendments)IAS7 StatementsofCashFlows(Amendments)IAS12 IncomeTaxes(Amendments)IFRS12 DisclosureofInterestsinOtherEntities(Amendments)

effective date annual periods beginning on or after January 1, 2018IFRS1 FirstTimeAdoptionofInternationalFinancialReportingStandards(Amendments)IFRS2 ShareBasedPayment(Amendments)IFRS4 InsuranceContracts(Amendments)IFRS7 FinancialInstruments:Disclosures(Amendments)IFRS9 FinancialInstrumentsIFRS15 RevenuefromContractswithCustomersIAS28 InvestmentsinAssociatesandJointVentures(Amendments)IAS39 FinancialInstruments:RecognitionandMeasurement(Amendments)IAS40 InvestmentProperty(Amendments)IFRIC22 ForeignCurrencyTransactionsandAdvanceConsideration effective date annual periods beginning on or after January 1, 2019IFRS16 Leases

effective date annual periods beginning on or after January 1, 2021IFRS17 InsuranceContracts

Except for IFRS 9 and IFRS 15 management does not anticipate that the relevant adoption of these standards andinterpretationsinfutureperiodswillhaveamaterialimpactonthefinancialstatementsoftheCompany.ManagementhasnotyetassessedtheimpactofIFRS9andIFRS15.

2. adopTion of neW and amended inTernaTional finanCial reporTing sTandards (ifrs) and inTernaTional aCCounTing sTandards (ias)

22

3. summarY of signifiCanT aCCounTing poliCies

statement of compliance - ThesefinancialstatementshavebeenpreparedinaccordancewithIFRS.

basis of preparation - Theconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,andmodifiedbyanyrevaluationofassetsandliabilitiesatfairvaluethroughthestatementofcomprehensiveincomeandthestatementofchangesinequityaccordingtothepoliciesfortherelevantareas.

Thefollowingisasummaryofthesignificantaccountingpolicies:

a. basis of consolidation

i.Subsidiaries-SubsidiariesareentitiescontrolledbytheCompany.TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompany,entities(includingstructuredentities)controlledbytheCompany,anditssubsidiaries.ControlisachievedwhentheCompany:

•Haspowerovertheinvestee;

•Isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;and,

•Hastheabilitytouseitspowertoaffectitsreturns.

TheCompanyreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangestooneormoreofthethreeelementsofcontrollistedabove.

ConsolidationofasubsidiarybeginswhentheCompanyobtainscontroloverthesubsidiaryandceaseswhentheCompanylosescontrolofthesubsidiary.Specifically,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearareincludedintheconsolidatedstatementofcomprehensiveincomefromthedatetheCompanygainscontroluntilthedatewhentheCompanyceasestocontrolthesubsidiary.

ii. Transactions eliminated on consolidation - Intra-groupbalances and any unrealizedgains or losses or income andexpensesarisingfromintra-grouptransactionsareeliminatedinpreparingtheconsolidatedfinancialstatements.

b. financial instruments -Oninitialrecognition,afinancialassetorliabilityismeasuredatitsfairvalueplustransactioncostsdirectlyattributabletotheacquisitionorissueofthefinancialassetorliability.Also,oninitialrecognition,financialassetsareclassifiedaseitherfinancialassetsatfairvaluethroughprofitorloss(FVTPL);held-to-maturityinvestments;loansandreceivables;oravailable-for-sale;andaremeasuredattheirfairvalueswithoutanydeductionfortransactioncosts,exceptforthefollowingfinancialassets:

i. loansandreceivablesandheld-to-maturityfinancial instrumentsaremeasuredat amortizedcostusing theeffectiveinterestratemethod;

ii.Investmentsinequityinstrumentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefairvaluecannotbereliablymeasuredaremeasuredatcost.

Afterinitialrecognitionfinancialliabilitiesaremeasuredatamortizedcostusingtheeffectiveinterestmethod,exceptforfinancialliabilitiesatfairvaluethroughprofitorloss.Suchliabilities,includingderivativesthatareliabilities,aremeasuredat fair value. Termdepositsmaturing after threemonthsof the consolidated statementof financial positiondate areclassifiedasheld-to-maturityfinancialinstruments.Theyhavefixedordeterminablepaymentsandfixedmaturitydates,andtheGrouphastheintentandabilitytoholdthemtomaturity.

Loans andother receivables that have fixed anddeterminablepayments that are notquoted in an activemarket areclassifiedas loansand receivablesandarecarriedat cost,whichequates toamortizedcost. Call accountsandotherliabilitiesarefinancialliabilities,whicharecarriedatcost.

23

recognition and derecognition

Financialassetsandfinancialliabilitiesarerecognisedwhenagroupentitybecomesapartytothecontractualprovisionsoftheinstruments.

TheGroupderecognizesafinancialassetwhenthecontractualrights tothecashflowsfromtheassetexpire,orwhenit transfers thefinancialassetandsubstantiallyall the risksandrewardsofownershipof theasset toanotherparty. IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipandcontinuestocontrolthetransferredasset,theGrouprecognizesitsretainedinterestintheassetandanassociatedliabilityforamountsitmayhavetopay.IftheGroupretainssubstantiallyalltherisksandrewardsofownershipofatransferredfinancialasset,theGroupcontinuestorecognizethefinancialassetandalsorecognizesacollateralizedborrowingfortheproceedsreceived.

Onderecognitionofafinancialassetinitsentirety,thedifferencebetweentheasset’scarryingamountandthesumoftheconsiderationreceivedandreceivableandthecumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeandaccumulatedinequityisrecognizedinprofitorloss.

Onderecognitionofafinancialassetotherthaninitsentirety(e.g.whentheGroupretainsanoptiontorepurchasepartofatransferredasset),theGroupallocatesthepreviouscarryingamountofthefinancialassetbetweenthepartitcontinuestorecogniseundercontinuinginvolvement,andthepartitnolongerrecognisesonthebasisoftherelativefairvaluesofthosepartsonthedateofthetransfer.Thedifferencebetweenthecarryingamountallocatedtothepartthatisnolongerrecognisedandthesumoftheconsiderationreceivedforthepartnolongerrecognisedandanycumulativegainorlossallocated to it thathadbeenrecognized inothercomprehensive income is recognised inprofitor loss. Acumulativegainorlossthathadbeenrecognizedinothercomprehensiveincomeisallocatedbetweenthepartthatcontinuestoberecognisedandthepartthatisnolongerrecognisedonthebasisoftherelativefairvaluesofthoseparts.

TheGroupderecognisesfinancialliabilitieswhen,andonlywhen,theGroup’sobligationsaredischarged,cancelledorhaveexpired.Thedifferencebetweenthecarryingamountofthefinancialliabilityderecognisedandtheconsiderationpaidandpayableisrecognisedinprofitorloss.

c. Cash and cash equivalents -Cashandcashequivalentscomprisecashonhand,demandaccounts,shorttermdeposits,overnightplacementsandinvestmentsinmoneymarketfunds.

d. accounts receivable, net -Accountsreceivablearestatedatcostlessprovisionfordoubtfulaccounts(seenote3h).

e. assets held under repurchase agreements -TheGrouppurchases securitiesunderagreements to resell (reverserepurchaseagreements). Reverserepurchaseagreementsaretreatedasshort-termcollateralizedlendingtransactions.Reverserepurchaseagreementsarerecordedontheconsolidatedstatementoffinancialposition.

Assetspledgedascollateralforreverserepurchaseagreementsareheldinafiduciarycapacity.Interestincomeonreverserepurchaseagreementsisincludedintheconsolidatedstatementofcomprehensiveincomeininterestincome.

f. investments -Investmentsarerecognizedonatradedatebasisandareclassifiedasfairvaluethroughprofitorloss(FVTPL)andavailable-for-saleinvestments.Investmentsareinitiallymeasuredatcostandaresubsequentlyremeasuredatfairvaluebasedonquotedmarketprices.AFSequityinvestmentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefairvaluecannotbereliablymeasuredandderivativesthatarelinkedtoandmustbesettledbydeliveryof such unquoted equity investments aremeasured at cost less any identified impairment losses at the end of eachreportingperiod.

Unrealizedgainsandlossesarisingfromachangeinthefairvalueofavailable-for-saleinvestmentsarerecognizedintheothercomprehensive incomesectionof theconsolidatedstatementof comprehensive income. UnrealizedgainsandlossesarisingfromachangeinthefairvalueofFVTPLinvestmentsarerecognizedinfinancialincomeintheconsolidatedstatementofcomprehensiveincome.

24

Land NotdepreciatedHousingproperty 2%Officebuildingimprovements 6.67%to25%Vehicles 25%Software 33%to50%Officeequipment 20%to50%Officefurnitureandfittings 10%

Otherchangesinthecarryingamountofavailable-for-salefinancialassetsarerecognizedinothercomprehensiveincomeandaccumulatedundertheheadingofinvestmentsrevaluationreserve.

g. property, plant and equipment, net - Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses.Depreciationisbeingprovidedbythestraight-linemethodatthefollowingrates:

h. impairment -Fixedassets,accountsreceivableandreverserepurchaseagreementsarereviewedateachconsolidatedstatementoffinancialpositiondatetodeterminewhetherthereisobjectiveevidenceofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimated.

property, plant and equipment

An impairment loss is recognizedwhenever the carrying amount of the asset or its cash-generating unit exceeds itsrecoverableamount.Theimpairmentlossesarerecognizedintheconsolidatedstatementofcomprehensiveincome.

The recoverableamountofassets is thegreaterof theirnet sellingpriceandvalue inuse. Inassessingvalue inuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingadiscountratethatreflectscurrentmarketassessmentofthetimevalueofmoneyandtherisksspecifictotheasset.

Foranassetthatdoesnotgeneratecashflowslargelyindependentofthosefromotherassets,therecoverableamountisdeterminedforthecashgeneratingunittowhichtheassetbelongs.

Animpairmentlossisonlyreversedtotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedifnoimpairmentlosshadbeenrecognized.

accounts receivable

TheGroup’spolicyistofullyprovideforallbalancesoutstandingformorethan120days.However,incertainsituationsmanagementmaydeterminethatnoprovisionisneededforbalancesinexcessof120daysiftheyconcludethatultimatecollectionismorelikelythannot.

reverse repurchase agreements

Animpairedreverserepurchaseagreementreferstoalendingarrangementwherethereisnolongerreasonableassuranceoftimelycollectionofthefullamountofprincipalandinterestduetodeteriorationinthecreditqualityofthecounterparty.Anagreementisimpairediftheestimatedrecoverableamountoftheassetislessthanitscarryingamount.Impairmentismeasuredandaprovisionforcreditlossesisestablishedforthedifferencebetweenthecarryingamountanditsestimatedrecoverablevalue.

Uponimpairment,theaccrualofinterestincomebasedontheoriginaltermsoftheagreementisdiscontinuedandtheassetiswrittendowntoitsestimatedrecoverableamount.Interestincomethereafterisrecognizedonacashbasis.

i. revenue recognition - Revenueisrecognizedintheconsolidatedstatementofcomprehensiveincomeonanaccrual

25

basiswhen the service has beenprovided. No revenue is recognized if there are significant uncertainties regardingrecoveryoftheconsiderationdueandassociatedcosts.

j. interest income and expenses - Interest income and expenses are recorded in the consolidated statement ofcomprehensiveincomeonanaccrualbasis.

k. Commissions -Commissionsarerecognizedwhenearned,whichiswhentheserviceisprovided.

l. provisions -AprovisionisrecognizedintheconsolidatedstatementoffinancialpositionwhentheGrouphasapresentandlegalobligationasaresultofapasteventanditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation.

m. Classification -Assetsareclassifiedascurrentwhenintendedforsaleinthenormaloperatingcycle,orheldprimarilyforthepurposeofbeingtraded,orexpectedtoberealizedwithintwelvemonthsorwhenclassifiedascashandcashequivalents.Allotherassetsareclassifiedasnon-current.Liabilitiesareclassifiedascurrentwhenexpectedtobesettledinthenormaloperatingcycle,orheldprimarilyforthepurposeofbeingtraded,orduetobesettledwithintwelvemonths,ortherearenounconditionalrightstodefersettlementforat leasttwelvemonths. Allother liabilitiesareclassifiedasnon-current.

n. assets under management -Assetsundermanagementwhichareheldinafiduciarycapacityforclientsareexcludedfrom the consolidatedfinancial statements, other than those assets and liabilitieswhich related tobanking, securitiesexecutionandcustodyservicesprovidedbytheGrouptotheirclients.

o. Fair value of financial instruments - Allof theGroup’sfinancial instrumentsarecarriedat fairvalueorcontractedamountswhichapproximatefairvalue.Financialinstrumentsrecordedatcontractedamountsconsistofcashandcashequivalents,prepaidexpensesandotherassets,reverserepurchaseagreements,accountspayableandaccruedliabilities.Thevalueof these instrumentsapproximates fairvalue,as the instrumentshaveshort-termmaturities,variable interestratesandarenotmateriallyaffectedbychangesininterestrates.

p. related parties - Related parties include officers and directors who are related through having authority andresponsibilityfordirectingandcontrollingtheactivitiesoftheGroupandcompaniesrelatedthroughcommondirectorsand/orshareholders.

q. foreign currency translation -TheGroup’sfunctionalcurrencyisUnitedStatesDollars.InpreparingtheconsolidatedfinancialstatementsoftheGroup,transactionsincurrenciesotherthanUnitedStatesDollarsarerecordedattheratesofexchangeprevailingonthedateofthetransaction.Ateachconsolidatedstatementoffinancialpositiondate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedattheratesprevailingonthestatementoffinancialpositiondate.Non-monetaryitemscarriedatfairvaluethataredenominatedinforeigncurrenciesaretranslatedattheratesprevailingonthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedattheratesprevailingonthestatementoffinancialpositiondate.

Exchangedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetaryitems,areincludedin financial income in the consolidated statement of comprehensive income. Exchange differences arising on thetranslationofnon-monetaryitemscarriedatfairvalueareincludedinfinancialincomeintheconsolidatedstatementofcomprehensiveincomefortheperiod.

26

IntheapplicationoftheGroup’saccountingpolicies,whicharedescribedinnote3,thedirectorsarerequiredtomakejudgements,estimatesandassumptionsaboutthecarryingamountsofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsare reviewedonanongoingbasis. Revisions toaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

Critical judgments in applying the Company’s accounting policies -Therearenocriticaljudgments,apartfromthoseinvolvingestimations,thatmanagementhasmadeintheprocessofapplyingtheCompany’saccountingpoliciesandthathavethemostsignificanteffectontheamountsrecognizedintheconsolidatedfinancialstatements.

Key sources of estimation uncertainty - Thefollowingarethekeyassumptionsconcerningthe future,andotherkeysourcesofestimationuncertaintyattheendofthereportingperiodthatmayhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountofassetsandliabilitieswithinthenextfinancialyear.

a. impairment --TheGrouphassignificantinvestmentsinfixedassets,accountsreceivableandrepurchaseagreements.These assets are tested for impairment when circumstances indicate there may be a potential impairment. Factorsconsideredimportantwhichcouldtriggeranimpairmentreviewincludethefollowing:significantfall inmarketvalues;significantunderperformance relative tohistoricalorprojected futureoperating results; significantchanges in theuseof theassetsor the strategy for theoverallbusiness, includingassets that aredecided tobephasedoutor replacedandassetsthataredamagedortakenoutofuse;significantnegativeindustryoreconomictrends;andsignificantcostoverrunsinthedevelopmentofassets.

Estimatingrecoverableamountsofassetsmustinpartbebasedonmanagementevaluations,includingestimatesoffutureperformance,revenuegeneratingcapacityoftheassets,assumptionsofthefuturemarketconditionsandthesuccessinmarketingofnewproductsandservices.Changesincircumstancesandinmanagement’sevaluationsandassumptionsmaygiverisetoimpairmentlossesintherelevantperiods.

b. depreciation -Depreciationisbasedonmanagementestimatesofthefutureusefullifeoffixedassets.Estimatesmaychangeduetotechnologicaldevelopments,competition,changesinmarketconditionsandotherfactorsandmayresultinchangesintheestimatedusefullifeandinthedepreciationcharges.TheGroupreviewsthefutureusefullifeoffixedassetsperiodically,takingintoconsiderationthefactorsmentionedaboveandallotherimportantfactors.

EstimatedusefullifeforsimilartypesofassetsmayvarybetweendifferententitiesintheGroupduetolocalfactorssuchasgrowthrate,maturityofthemarket,historyandexpectationsforreplacementsortransferofassets,climate,etc.Inthecaseofsignificantchangesintheestimatedusefullives,depreciationchargesareadjustedprospectively.

c. legal proceedings, claims and regulatory discussions -TheGroupissubjecttovariouslegalproceedings,claimsandregulatorydiscussions, theoutcomesofwhicharesubjecttosignificantuncertainty. TheGroupevaluates,amongotherfactors,thedegreeofprobabilityofanunfavorableoutcomeandtheabilitytomakeareasonableestimateoftheamountof loss. Unanticipatedeventsorchanges in these factorsmay require theGroup to increaseordecrease theamounttheGrouphasaccruedforanymatteroraccrueforamatterthathasnotbeenpreviouslyaccruedbecauseitwasnotconsideredprobableorareasonableestimatecouldnotbemade.

4. CriTiCal aCCounTing JudgmenTs and KeY sourCes of esTimaTion unCerTainTY

27

5. Cash and Cash eQuiValenTs

Cashandcashequivalentsarecomprisedofthefollowing:

2017 2016

balanceaverage

rate balanceaverage

rate

Cashonhand $ 21,264 0.00% $ 30,322 0.00%Demandaccounts 13,787,391 0.00% 1,661,810 0.00%Shorttermdeposits 15,689,338 1.35% 10,000,000 0.90%Sharesinmoneymarketfunds:KBLEuropeanPrivateBankers - 0.00% 20,000,000 0.30%HSBCGlobalLiquidityFunds 2,347,716 0.99% 3,000,000 0.45%CitiInstitutionalLiquidReservesLtd. 11,705,247 1.06% 2,000,000 0.45%WesternAssetShortTermYieldFund,Ltd., - 1,500,000 0.69%WesternAssetsWaInstitutionalCashReserves 6,524,935 1.02% -WesternAssetInstitutionalU.S.TreasuryReservesLtd.C11 818,639 0.63% 1,200,000 0.20%SantanderInternationalBank - 200,000 0.25%MerrilLynchautocall 110,702 0.02% 200,000 0.02%

$ 51,005,232 $ 39,792,132

28

6. aCCounTs reCeiVable, neT

2017 2016

accounts receivable $ 2,101,991 $ 1,994,213

Provisionfordoubtfulaccounts:Balance,beginningofyear (628,145) (361,399)Provisionfortheyear (289,652) (361,235) Write offs 217,691 94,489 balance, end of year (700,106) (628,145)

accounts receivable, net $ 1,401,885 $ 1,366,068

Accountsreceivable,netiscomprisedofthefollowing:

7. prepaid eXpenses and oTher asseTs

2017 2016

Accountswithrelatedentities(Note21) $ - $ 951,965Deferredexpenses 392,601 452,359Loanstostaff(Note21) 111,911 144,734Advancestosuppliers 79,158 82,948Other 319,075 92,564Shelfcompaniesavailableforsale 6,310 13,585

$ 909,055 $ 1,738,155

Prepaidexpensesandotherassetsarecomprisedofthefollowing:

2017 2016

Current $ 524,195 $ 378,12331-60days 322,866 369,189 61-90days 235,717 278,611Over90days 1,019,213 968,290

$ 2,101,991 $ 1,994,213

Theagingoftradeaccountsreceivableisasfollows:

29

9. inVesTmenTs

2017 2016

fVTpl

Equities $ 5,549,560 $ 1,443,446

Cost

Otherinvestments 780,649 777,709

available-for-sale

Gold(cost) 1,837,239 1,837,239Gold(revaluationreserve) 855,236 1,043,760

2,692,475 2,880,999

Total $ 9,022,684 $ 5,102,154

Investmentsarecomprisedofthefollowing:

8. repurChase agreemenTs

2017 2016 2017 2016

Capital rate maturity Client

Agreement#1 $ 162,604 $ 117,660 8.50% 8.50% 7/17/17 5002118Agreement#2 508,958 512,871 8.50% 8.50% 7/5/17 5002169Agreement#3 500,000 149,259 3.70% 8.50% 8/14/17 8000015Agreement#4 - 500,000 2.97%

$

$ 1,171,562 $ 1,279,790

Theseare specific lendingagreements fullyguaranteedby securities’ collateralheldonaccount. It is notpartof theGroup’s regular activity togrant such agreements, but itmaydo soon a caseby casebasis, requiring full securities’collateralineverycase.AsofJune30,2017,threeagreementsremainedoutstanding(2016:fouragreements):

30

10. properTY, planT and eQuipmenT - neT

Property,plantandequipmentarecomprisedofthefollowing:

COST:BalanceatJune30,2015 $ 572,937 $ 3,043,405 $ 1,350,529 $ 398,311 $ 708,451 $ 2,395,242 $ 1,077,699 $ 9,546,574Additions - - 18,075 200,601 66,913 279,358 48,477 613,424Disposals - - - (32,064) - (14,489) - (46,553)

BalanceatJune30,2016 572,937 3,043,405 1,368,604 566,848 775,364 2,660,111 1,126,176 10,113,445Additions - - - - 91,650 159,098 23,913 274,661Disposals - - - - - - - -

balance at June 30, 2017 $ 572,937 $ 3,043,405 $ 1,368,604 $ 566,848 $ 867,014 $ 2,819,209 $ 1,150,089 $ 10,388,106

ACCUMULATEDDEPRECIATION:BalanceatJune30,2015 $ - $ 374,545 $ 1,007,988 $ 398,311 $ 667,411 $ 2,063,678 $ 789,613 $ 5,301,546Additions - 65,000 72,915 10,599 44,126 189,684 49,458 431,782Disposals - - - (32,064) - (14,489) - (46,55)

BalanceatJune30,2016 - 439,545 1,080,903 376,846 711,537 2,238,873 839,071 5,686,775Additions - 65,000 74,779 43,334 60,603 199,318 52,505 495,539Disposals - - - - - - - -

balance at June 30, 2017 $ - $ 504,545 $ 1,155,682 $ 420,180 $ 772,140 $ 2,438,191 $ 891,576 $ 6,182,314

NETBOOKVALUE:

as at June 30, 2017 $ 572,937 $ 2,538,860 $ 212,922 $ 146,668 $ 94,874 $ 381,018 $ 258,513 $ 4,205,792

as at June 30, 2016 $ 572,937 $ 2,603,860 $ 287,701 $ 190,002 $ 63,827 $ 421,238 $ 287,105 $ 4,426,670

landhousingproperty

Officebuilding

improvements Vehicles softwareOffice

equipment

Officefurniture

and fittings Total

31

Callaccountsrepresentthetotalon-balanceamountsheldbyclientsinbankaccountswiththeCompany.Fundsinexcessof$50,000areplacedoutonafiduciarybasis fortheaccountandriskof theaccountholder(s). Thebalance intheseconsolidatedfinancialstatementsrepresentsthefirst$50,000heldineachaccount.

2017 2016

Provisionforstaffbenefitsandtrainingexpenses(*) $ 2,638,700 $ 2,038,600Provisions-other(*) 928,435 1,099,152Accountswithrelatedentities(Note21) 4,194,208 -Accountspayable 856,853 527,328Commissionspayable 97,291 221,095Socialsecurity 99,383 68,426Taxespayableinadvance 20,399 15,442

$ 8,835,269 $ 3,970,043

11. Call aCCounTs

12. aCCounTs paYable and aCCrued liabiliTies

Accountspayableandaccruedliabilitiesarecomprisedofthefollowing:

initial balance additions

reductions (payments)

final balanceJune 2017

(*) provisions:

Provisionforstaffbenefitsandtrainingexpenses:Provisionforbonusesandprofitshare $ 1,872,000 $ 2,357,637 $ (1,872,000) $ 2,357,637

Otherstaffbenefitsprovisions(holidayleave,13thSalary) 166,600 609,021 (494,558) 281,063

2,038,600 2,966,658 (2,366,558) 2,638,700

Provisions-other:LegalFees 654,459 229,159 (330,136) 553,482DirectorFees $ 90,200 178,177 (191,315) 77,062Auditfees 131,758 110,574 (107,462) 134,870

Taxes 33,486 76,215 (37,808) 71,893Otherprovisions 189,249 181,061 (279,182) 91,128

$ 1,099,152 $ 775,186 $ (945,903) $ 928,435

32

Advancesfromclientsarecreditbalancescorrespondingtoclientswhohavemadeadvancepaymentsonaccount.FeesreceivedinadvanceincludestheportionofannualclientfeeswhichhavebeencollectedintheyearendedJune30,2017,andrelatetoperiodssubsequenttotheconsolidatedstatementoffinancialpositiondate.

13. adVanCes from ClienTs and fees reCeiVed in adVanCe

14. Commissions and fees on fiduCiarY TransaCTions, neT

2017 2016

WCA.netfees $ 3,239,441 $ 3,416,552Brokerageandcurrencyexchangeservices 978,687 1,288,436Custodyservices 926,378 568,049Strutcturedoperations 580,759 924,953Total fees on fiduciary transactions, net 5,725,265 6,197,990

WCA.netchargesandcommissions (413,777) (326,973)Brokeragechargesandcommissions (93,615) (81,294)Custodychargesandcommissions (287,251) (113,054)Commissionsonstructuredoperations - (43,500)Total cost related with fees on fiduciary transactions,net $ (794,643) $ (564,821)

15. salaries and benefiTs

Duringtheyear,anamountof$2,352,830(2016:$1,872,000)waspaidtothestaffasprofitshareandbonus.

33

2017 2016

Otherexpenses $ 873,113 $ 744,009Professionaladvisors 706,388 1,304,024Marketingexpenses 513,486 553,150Travel 327,844 327,888Baddebts 289,652 361,235Rent(*) 268,139 244,325Directors'feesandexpenses 212,794 221,379Licensesandfees 179,059 172,024Utilities 141,015 113,901Insurance 130,273 123,586Maintenance 135,185 122,963

$ 3,776,948 $ 4,288,484

16. adminisTraTiVe and general eXpenses

(*)RentmainlycomprisestheleasecontractoftheShiffelCorpofficeforUSD10,000annual,leasecontractofHongKongofficeforHKD1,182,000(eqtoUSD155,000aprox),leasecontractofCaymanofficeforaproxUSD20,000annualandotherexpensesassociatedwiththereferredcontracts.

17. finanCial inCome

2017 2016

NetInterestearned $ 2,400,440 $ 1,205,213Returnoninvestments(capitallosses)andcapitalgains (81,384) 262,917ResultofthechangeinFXrates (12,795) (21,527)

$ 2,306,261 $ 1,446,603

34

18. diVidends

DividendsareaccountedforintheperiodinwhichtheyaredeclaredbytheGroup’sBoardofDirectors.

OnJune30,2017,dividendsof$2.4pershare(totaldividends$6,000,000)weredeclared(2016:$2persharetotaling$5,000,000).

19. ConTribuTed surplus

ThisrepresentscapitalfundingreceivedfromtheshareholdersofTheWinterbothamTrustCompanyLimitedforpurchaseof90%ofTheWinterbothamTrustCompany(HongKong)LimitedonMay22,2009.

Article93oftheUruguayanCompanyLaw(Law16.060)establishesthatcompaniesmustcontributeat least5%oftheannualnetprofitstowardsthecreationofalegalreserveuntilthereservereachestheequivalentof20%oftherelevantCompany’spaidincapital.Thisincludessharecapitalandcontributedsurplus.

2017 2016

Openingbalances:Legalreserve $ 58,745 $ 55,449Reservefortaxexoneration 97,893 97,893

156,638 153,342 Additions(reductions):Legalreserve 11,531 3,296

11,531 3,296 Closingbalances:Legalreserve 70,276 58,745Reservefortaxexoneration 97,893 97,893

$ 168,169 $ 156,638

20. reserVes

35

21. balanCes and TransaCTions WiTh relaTed parTies

Relatedparties includeofficers, directors, shareholders andother companieswith commonownership. Where theserelated parties have the authority and responsibility for directing and controlling the authorities of other companies(establishedtoparticipateintheGroup’sbusinessactivities),theseentitiesarealsoregardedasrelatedpartiesintheseconsolidatedfinancialstatements.EntitiesadministeredbytheGrouponbehalfofclientswheretheGroupalsoprovidesdirectorsarenotconsideredrelatedparties.

Balancesandtransactionswithrelatedparties:

2017 2016

balances:

Prepaidexpensesandotherassets:Accountswithrelatedentities $ - $ 951,865Loanstostaff-keymanagementpersonnel $ 48,050 $ 75,958Provisionforstaffbenefitsandtrainingexpenses $ 1,457,605 $ 1,291,755AccountsPayableandAccruedLiabilities:Accountswithrelatedentities $ 4,194,208 $ -

Transactions:

Salariesandbenefits-keymanagementpersonnel $ 1,947,089 $ 1,734,581Employeeprofitparticipation-keymanagementpersonnel $ 1,457,605 $ 1,291,755

36

22. TaXaTion

The Winterbotham Trust Company (Uruguay) S.A. and its wholly owned subsidiary Winterbotham Fiduciaria S.A.AdministradoradeFondosdeInversiónaredomiciledinUruguayandsubjecttoUruguayantaxlaws.ThetaxregimeinplaceinUruguayincludespersonalandcorporateincometax.

Uruguayantaxlawisappliedonaterritorialbasisasopposedtoauniversaltaxationsystemwhichdeterminesthatwherethecompanyisdoingbusiness,receivingincomeand/orholdingitsassets(i.e.hasUruguayansourceincomeandassets)withinUruguayanterritoryissubjecttotaxatthefollowingrates:

a. IncomeTax(“IRAE”) 25%b. Taxonnetworthofcorporations 1.5%c. SalesorValueAddedTax(VAT) 10%or22%

WhereacompanyhasUruguayansourceincome,itwillhavetopayaminimummonthlytaxorIRAEatarateof25%ofitstaxablenetincomeasanadvance(pleaserefertopoint(a)above)theamountofwhichwilldependonthelevelofitsprioryear’staxablenetoperatingincome.

Withholdingtaxoninterestpaymentsforloansgrantedbyforeignlenders,whichdonotoperatelocallyinUruguay,shallbeappliedattherateof12%.

Paymentofdividends:Dividendpaymentsaresubjecttoa7%withholdingtax.

Double taxation treaties:Uruguayhas signeddouble-taxationagreementswith the following states: Germany,Spain,Hungary,Mexico,Switzerland,Portugal,Liechtenstein,Ecuador,Malta,India,Korea,Argentina,Finland,Belgium,England,Luxembourg,NorthIreland,UnitedArabEmirates,Romania,SingaporeandVietnam.

Additionally,Uruguayhassignedtaxinformationexchangeagreementswith:France,Denmark,Greenland,Iceland,FaroeIslands,Norway,Sweden,Australia,Canada,England,NorthIrelandandNetherlands.

37

2017 2016

Profitbeforetax $ 220,546 $ 152,652Fiscallossfrompreviousyear (9,925) (128,952)Non-deductibleexpense (1,108) (12,540)

Taxable profit $ 209,513 $ 11,160

income tax using corporate tax rate (25%) $ 52,378 $ 2,790

23. inCome TaX

CompaniessubjecttoCorporateIncomeTaxareTheWinterbothamTrustCompany(Uruguay)S.A(rate25%),itssubsidiaryWinterbothamFiduciariaS.A.AdministradoradeFondosdeInversion(rate25%)andTheWinterbothamTrustCompany(HongKong)Limited(rate16.5%).

deferred tax assets and liabilities

Thedeferred taxstatedcorresponds todifferencesbetweenbookand taxvaluesoffixedassetsoriginatedmainlybydifferencesofvaluationanddepreciationcriteria.

Thedeferredtaxisthetaxexpectedtobepaidorrecoveredbasedonthedifferencesexistingbetweenthebookvalueofanassetorliability,anditstaxvalue.

Assetsfordeferredtax,asatJune30,2017,arisefromapplyingthetaxrateinforceatthatmoment(25%)onthetemporarytaxabledifferencesofUS$9,902(2016:US$33,150),whichcorrespondmainlytothedifferentvaluationcriteriaandfixedassetsdepreciationcriteria.

Assetsfordeferredtaxarerecognizedaslongastheentityislikelytohavefiscalearningsagainstwhichtousethedeductibletemporarydifferences.Liabilitiesfordeferredtaxarenormallyrecognizedforallthetemporarytaxabledifferences.

Assetsandliabilitiesfordeferredtaxareoffsetwhenrelatedtoincometaxesleviedbythesametaxauthorityandtheentityseekstoliquidateitsassetsandliabilitiescurrenttaxonanetbasis.

AsofJune30,2017,deferredtaxassetsandliabilitiesareattributabletothefollowing:

Deferredtaxrecognizedfortheperiod:

assets

2017Charge for the year

Conversion adjustment 2016

TemporarydifferencesarisingfromdifferencesinFixedassets'valuationanddepreciationcriteria $ (123) $ 3,661 $ (15,508) $ 11,724Temporarydifferencesforunusedtaxlosses 10,025 (12,879) 1,478 21,426

$ 9,902 $ (9,218) $ (14,030) $ 33,150

38

TaxbreakdownastoJune30,2017:

24. fiduCiarY operaTions

AsatJune30,2017,TheWinterbothamMerchantBank,adivisionofTheWinterbothamTrustCompanyLimitedusedforbankingactivities,andtheWinterbothamInternationalSecuritiesadivisionoftheWinterbothamTrustCompanyLimitedusedforbrokerageactivities,hadenteredintofiduciaryagreementsforanaggregateamountof$1,488,461,177(2016:$1,455,554,145).

Theclientsbearallriskandresponsibilityforactivitiescarriedoutbytheentityontheirbehalfunderthesecontracts.Thedepositorsagreeto indemnifyandholdharmlessTheWinterbothamTrustCompanyLimited, itsdirectors,employees,agents and representatives against all liability, losses or damages arising out of or in connection with the fiduciaryagreement.

2017 2016

Currenttaxcharges:Incometaxusingcorporatetaxrate(25%) $ 52,378 $ 2,790Taxonnetworthofcorporations 70,184 73,564SalesorValueAddedTax(VAT) 181,638 149,101

$ 304,200 $ 225,455

deferred tax $ 9,218 $ 5,902

Total $ 313,418 $ 231,357

39

25. finanCial insTrumenTs

Detailsofthesignificantaccountingpoliciesandmethodsadopted, includingthecriteriaforrecognition,thebasisofmeasurementandthebasisonwhich incomeandexpensesarerecognized, inrespectofeachclassoffinancialasset,financialliabilityandequityinstrumentsaredisclosedinNote3totheconsolidatedfinancialstatements.

ThefollowingtableanalyzesthecarryingamountsoffinancialassetsandfinancialliabilitiesasdefinedbyIAS39FinancialInstruments:RecognitionandMeasurement:

2017

fVTplloans and

receivablesavailablefor sale

amortizedcost Total

finanCial asseTs

Cashandcashequivalents $ - $ - $ - $ 51,005,232 $ 51,005,232Accountsreceivables,net $ - $ 1,401,885 $ - $ - $ 1,401,885Prepaidexpensesandotherassets $ - $ 111,911 $ - $ 797,144 $ 909,055Repurchaseagreements $ - $ 1,171,562 $ - $ - $ 1,171,562Investments $ 5,549,560 $ - $ 2,692,475 $ 780,649 $ 9,022,684Securitydeposits $ - $ - $ - $ 619,312 $ 619,312

Totals $ 5,549,560 $ 2,685,358 $ 2,692,475 $ 53,202,337 $ 64,129,730

finanCial liabiliTies

Callaccounts $ - $ - $ - $ 24,254,408 $ 24,254,408Accountspayableandaccruedliabilities $ - $ - $ - $ 8,835,269 $ 8,835,269Loansandinterestpayable $ - $ - $ - $ 11,606,645 $ 11,606,645Advancesfromclients $ - $ - $ - $ 996,649 $ 996,649Dividendspayable $ - $ - $ - $ 6,000,000 $ 6,000,000Feesreceivedinadvance $ - $ - $ - $ 2,198,238 $ 2,198,238

Totals $ - $ - $ - $ 53,891,209 $ 53,891,209

40

2016

fVTplloans and

receivablesavailablefor sale

amortizedcost Total

finanCial asseTs

Cashandcashequivalents $ - $ - $ - $ 39,792,132 $ 39,792,132Accountsreceivables,net $ - $ 1,366,068 $ - $ - $ 1,366,068Prepaidexpensesandotherassets $ - $ 1,096,699 $ - $ 641,456 $ 1,738,155Repurchaseagreements $ - $ 1,279,790 $ - $ - $ 1,279,790Investments $ 1,443,446 $ - $ 2,880,999 $ 777,709 $ 5,102,154Securitydeposits $ - $ - $ - $ 570,600 $ 570,600

Totals $ 1,443,446 $ 3,742,557 $ 2,880,999 $ 41,781,897 $ 49,848,899

finanCial liabiliTies

Callaccounts $ - $ - $ - $ 27,715,035 $ 27,715,035Accountspayableandaccruedliabilities $ - $ - $ - $ 3,970,043 $ 3,970,043Loansandinterestpayable $ - $ - $ - $ 291,875 $ 291,875Advancesfromclients $ - $ - $ - $ 707,349 $ 707,349Dividendspayable $ - $ - $ - $ 5,000,000 $ 5,000,000Feesreceivedinadvance $ - $ - $ - $ 2,075,683 $ 2,075,683

Totals $ - $ - $ - $ 39,759,985 $ 39,759,985

AtJune30,2017therewerenoassetsandliabilitiesthatwereclassifiedasheld-to-maturity.Thefollowingtableshowsconsolidatedstatementofcomprehensiveincomeinformationonfinancialinstruments:

2017 2016

INTERESTINCOME:Loansandreceivables $ 4,726 $ 5,348Amortizedcost $ 2,400,440 $ 1,205,213

DIVIDENDINCOME:FVTPL $ 3,169 $ 181

41

Thefollowingtableprovidesananalysisoffinancialinstrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvalue,groupedintoLevels1to3basedonthedegreetowhichthefairvalueisobservable:

• Level1fairvaluemeasurementsarethosederivedfromquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;

• Level2fairvaluemeasurementsarethosederivedfrominputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices);and

• Level3fairvaluemeasurementsarethosederivedfromvaluationtechniquesthatincludeinputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Therewerenotransfersbetweenanyofthelevelsinthecurrentperiod.

26. fair Value measuremenTs reCognised in The sTaTemenT of finanCial posiTion

2017

level 1 level 2 level 3 Total

FinancialassetsatfairvaluethroughprofitandlossQuotedequities $ 5,549,560 $ - $ - $ 5,549,560

Available-for-salefinancialassetsPreciousmetals(commodities) 2,692,475 - - 2,692,475

Total $ 8,242,035 $ - $ - $ 8,242,035

2016

level 1 level 2 level 3 Total

FinancialassetsatfairvaluethroughprofitandlossQuotedequities $ 1,443,446 $ - $ - $ 1,443,446

Available-for-salefinancialassetsPreciousmetals(commodities) 2,880,999 - - 2,880,999

Total $ 4,324,445 $ - $ - $ 4,324,445

42

27. risK managemenT

June 30,2017us$

June 30,2016us$

ASSETS:Cashandcashequivalents 1.02% 0.46%Repurchaseagreements 8.50% 8.50%

2017

gbp Cad euro Chf usd hKd oTher ToTals

Assets $16,835,852 $ 160,645 $2,199,325 $ 699,307 $ 40,549,536 $ 487,079 $ 994,612 $ 61,926,356Liabilities 16,855,720 180,694 2,278,288 318,220 31,956,008 25,269 707,556 52,321,756Coverage $ (19,868) $ (20,049) $ (78,962) $ 381,086 $ 8,593,528 $ 461,810 $ 287,055 $ 9,604,600

2016

gbp Cad euro Chf usd hKd oTher ToTals

Assets $ 3,563,071 $ 175,209 $3,147,325 $ 1,404,724 $ 37,539,729 $ 329,120 $ 808,722 $ 46,967,900Liabilities 3,519,875 192,530 3,294,700 1,019,142 31,030,330 38,886 664,521 39,759,984Coverage $ 43,196 $ (17,321) $ (147,375) $ 385,582 $ 6,509,399 $ 290,234 $ 144,201 $ 7,207,916

TheGroupengagesintransactionsthatexposeittovariousrisksinthenormalcourseofbusiness.Theserisksincludecapitalrisk,marketrisk, includinginterestrateriskandforeignexchangerisk,creditrisk, liquidityriskandfiduciaryriskmanagement.TheGroup’sfinancialperformanceisdependentonitsabilitytounderstandandeffectivelymanagetheserisks.

a. Capital risk -TheGroupmanagesitscapitaltoensurethatitwillbeabletocontinueasagoingconcernwhilemaximizingthereturntostakeholdersthroughtheoptimizationofthedebtandequitybalance.TheGroup’soverallstrategyremainsunchangedsince2015. Thecapitalstructureof theGroupconsistsofnetdebt (callaccountsoffsetbycashandcashequivalents)andequityattributabletoequityholdersoftheGroup,comprisingissuedcapital,contributedsurplus,legalreserves,revaluationreservesandretainedearningsasdisclosedintheconsolidatedstatementofchangesinequity.

b. market risk -Marketriskistheriskthatthefairvalueofaninstrumentorthecashflowsfromaninstrumentwillfluctuateasaresultofchangesinmarketprices.Themainmarketrisksareinterestrateriskandforeignexchangerisk.TheGroupentersintoavarietyoffinancialinstrumentstomanageitsexposuretothisrisk.

i. interest rate risk - TheGroupisexposedtocashflowandfairvalueinterestrateriskoncashandcashequivalentsandreverserepurchaseagreements.TheGroupmanagesthisriskbyconsistentmonitoringofinterestratefluctuations.

ii. foreign exchange risk - Thisistheriskoflossresultingfromforeigncurrencytranslation.Currencyriskismanagedbymatchingliabilitieswithassetswithinthesamecurrencywheneverpossible.ThefollowingtableshowstheUSDequivalentofallcurrenciesheld:

43

c. Credit risk - TheGroupisexposedtocreditriskinrespectoflossesthatwouldhavetoberecognizedifcounterpartiesfailtoperformascontracted.

TheGroup’sexposure to credit risk isprimarily in respectof cashandcashequivalents, accounts receivable,prepaidexpensesandotherassets,repurchaseagreementsandinvestments.Asattheconsolidatedstatementoffinancialpositiondate,theGroup’smaximumexposuretocreditriskisequaltothecarryingamountoftheaboveassetsdisclosedintheconsolidatedstatementoffinancialposition. The repurchaseagreementsareadequatelycollateralizedbypledgesofassetsmanagedbytheGrouponbehalfoftheborrowers.

2017 2016

CASHANDCASHEQUIVALENTS:

neither past due or impaired $ 51,005,232 $ 39,792,132

ACCOUNTSRECEIVABLE:

neither past due or impaired $ 524,195 $ 378,123

past due not impaired $ 558,583 $ 647,800

impaired $ 1,019,213 $ 968,290

CertainreceivablebalancesincludefeesinvoicedinadvancebutnotaccruedastoJune30,2017.Thisportionofaccountsreceivablearenotconsideredwhencreatingtheprovisionforbaddebts.Similarly,someofthereceivablebalancesincludetherequestforthecorrespondingCompanyAnnualGovernmentFee.ThisamountdoesnotrepresentareceivableriskfortheCompanyasitwillonlybepaidtotheRegistrarofCompaniesifdulysettledbytheclient.Thereforetheseamountsarenotconsideredwhencreatingtheprovisionforbaddebts.

2017 2016

REVERSEREPURCHASEAGREEMENTS:

neither past due or impaired $ 1,171,562 $ 1,279,790

SECURITYDEPOSITS:

neither past due or impaired $ 619,312 $ 570,600

44

d. liquidity risk-LiquidityriskariseswhentheGrouphastomeetitsobligationsonborrowedfundsanddeposits.TheGroupmanagesitsliquidityriskbymatchingasfaraspossibleliabilitieswithassetsofsimilarmaturityperiods.

Assetsandliabilitiesareduetomaturebasedontheperiodremainingtomaturityfromtheconsolidatedstatementoffinancialpositiondate,asfollows:

June 30, 2017

No set

maturity/Upto3months

3-6months

Over6months Total

ASSETS:Cashandcashequivalents $ 51,005,232 $ - $ - $ 51,005,232Accountsreceivable,net 1,082,778 - 319,107 1,401,885Prepaidexpensesandotherassets 909,055 - - 909,055Reverserepurchaseagreements 1,171,562 - - 1,171,562Investments 9,022,684 - - 9,022,684Securitydeposits - - 619,312 619,312Deferredtaxassets - - 9,902 9,902

$ 63,191,311 $ - $ 948,321 $ 64,139,632

LIABILITIES:Callaccounts $ 24,254,408 $ - $ - $ 24,254,408Accountspayableandaccruedliabilities 8,835,269 - - 8,835,269Loansandinterestpayable 11,346,595 - 260,050 11,606,645Dividendspayable 6,000,000 - - 6,000,000Advancesfromclients - - 996,649 996,649Feesreceivedinadvance - - 2,198,238 2,198,238

$ 50,436,272 $ - $ 3,454,937 $ 53,891,209

45

e. fiduciary risk management-TheGroupisengagedinsignificantcustodialandfiduciaryactivitiesthatgiverisetotheriskthatitwillbeaccusedofmal-administrationornon-compliancewiththewishesofitsclients.Tomanagethisexposure,theGroupgenerallytakesaconservativeapproachinitsundertakings.

f. Fair value of financial assets and liabilities -Thefairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.UnderlyingthedefinitionoffairvalueisthepresumptionthattheGroupisagoingconcernwithoutanyintentionorneedtoliquidate,reducethescaleofitsoperationsorundertakeatransactiononadverseterms.

Intheopinionofmanagement,theestimatedfairvalueoffinancialassetsandfinancialliabilities(cashandcashequivalents,accounts receivable, repurchaseagreements, investments,prepaidexpensesandotherassets, callaccounts,accountspayable and accrued liabilities andother liabilities) at the consolidated statement of financial positiondatewere notmateriallydifferentfromtheircarryingvalueduetotheirshorttermnature.

June 30, 2016

No set

maturity/Upto3months

3-6months

Over6months Total

ASSETS:Cashandcashequivalents $ 39,792,132 $ - $ - $ 39,792,132Accountsreceivable,net 1,025,923 - 340,145 1,366,068Prepaidexpensesandotherassets 786,190 - 951,965 1,738,155Reverserepurchaseagreements 1,279,790 - 1,279,790Investments 5,102,154 - - 5,102,154Securitydeposits - - 570,600 570,600Deferredtaxassets - - 33,150 33,150

$ 47,986,189 $ - $ 1,895,860 $ 49,882,049

LIABILITIES:Callaccounts $ 27,715,035 $ - $ - $ 27,715,035Accountspayableandaccruedliabilities 3,970,043 - - 3,970,043Loansandinterestpayable - - - -Dividendspayable 5,000,000 - - 5,000,000Advancesfromclients - - 707,349 707,349Feesreceivedinadvance - - 2,075,683 2,075,683

$ 36,685,078 $ - $ 2,783,032 $ 39,468,110

28. loan paYable

OnJune29,2017,theCompanyenteredintoa7dayloanintheamountofGBP8,661,492ataninterestrateof1.5%perannum.

46

The Winterbotham Trust Company Limited(Incorporating The Winterbotham Merchant Bank)

Winterbotham Place

Marlborough & Queen StreetsP.O. Box N-3026, Nassau

The Bahamas

Tel.: (1-242) 356 5454Fax: (1-242) 356 9432

nassau@winterbotham.com

SWIFT: WNTRBSNS

The Winterbotham Trust Company (Uruguay) S.A.

Winterbotham HouseAv. de las Américas 8000

Parque Miramar, Canelones 14.000Uruguay

Tel.: (598) 2601 6544Fax: (598) 2601 7614

montevideo@winterbotham.com

The Winterbotham Trust Company (Hong Kong) Limited

Suite 1004, 10th FloorBank of America Tower

12 Harcourt RoadCentral

Hong Kong

Tel.: (852) 2526 6898Fax: (852) 2526 6897www.winterbotham.hk

Winterbotham Corporate and Funds Services (Cayman) Limited

Grand Pavilion Commercial CentreWest Bay Road

Grand Cayman, Cayman Islands

Tel.: (1-345) 946 2374cayman@winterbotham.com

www.winterbotham.com