telesur annual report 2017 pag. · telesur annual report 2017_ pag. 5 director’s message dear...

Telesur Annual Report 2017_ pag. 1


TABLE OF CONTENTS

Profile 04 Director’s message 05 2017keyfigures 07 Multiyearfinancialoverview 08 Corevalues 09 Historicaloverview 10 Missionandvision 11 Meaning of logo and colors 11

ThedistrictofMarowijne;CoastalInland 12

MayraColom,Theneverquittingschoolprincipal 14 Governance 16 Theboardofsupervisorydirectors 17 Reportoftheboardofsupervisorydirectors 18 Boardofdirectors 19 Organizational chart 20

OscarAwese,coachandfatherofyoungsters 21

2017BusinessReview 23 Macro-economicdevelopments 24 Highlights 24 2018outlook 28

SoeratIrodikromo,decoratedgamelanguru 29

The2017summaryconvertedSRDannualaccounts 31 Statementoffinancialpositionasat31-12-2017 31 2017statementofcomprehensiveincome 32 Overviewofmovementinequityover2017 33 2017Statementofcashflow 34 Generalnotestothe2017summaryconverted 35 SRD annual accounts Overviewtangiblefixedassetsasat31-12-2017 42Reportoftheindependentauditor 43TresnaPinas,versatilemoengonese 45

TelesurlocationsinSuriname 48


PROFILE


DIRECTOR’S MESSAGEDear reader,

Theyear2017forTelesur,hasbeenonewherethefocuswastosystematicallycontrolandwherepossible,reduceexpenditure,andsimultaneouslyincreaserevenues.Indoingso,providingoptimalservices and high-quality telecommunications connections were the constant preconditions.Consequently, realization of the 2017 theme “We improve to serve” wasworked on. The 2017Telesurannualreport,elaboratesontheroutetakentofulfilthepolicyobjectivesmentionedabove.Lookingback,itcanbeconcludedthatweasacompanyhavepartlybeenabletoachievetheseobjectives.

Belowpleasefindasummaryofsome2017policyhighlights:

• StructuringprocurementproceduresbytheCorporateAuditdepartmentwiththemain objectiveofcostsavings.• Investmentsintelecominfrastructureandnetworkconnectionsinparticularthe“Telesur NationalBroadbandProject”.• Performancemeasurement,analysisandtrendwatchingtosupportbusinessinnovationand development.• Marketingcampaignsviasocialmedia.• Improvementofadministrationandregistrationofcustomercontact,tocollectdatatherefrom withtheaimtoimproveoverallservice.• Constructionofwarehousesandautomationofinventorymanagement.• Trainingofstaffandputtingintopracticetheuseofautomatedadministrationapplicationsin differentdepartments.• Optimizationofpartnershipswithinternationaltelecomserviceproviders.• Rebuilding of Telesur branch Nickerie.• CelebrationofATV’s30thanniversary.

With regard to Telesur’s financial performance, we can report on successfully turning the tide,as2017wasconcludedwithapositivefinancialresult.Theprocessofpublishingauditedannualaccountsofpastyearsiscontinuedinclosecooperationwiththeexternalauditor.

Inclosingofthismessage,wewishtoindicatethattheTelesurfamilywillcontinuestrivingtoplacecustomerserviceattheheartofallprojectsexecuted.Thus,achievingbothshorttermandlong-termdevelopmentofTelesur.

WarmTelesurgreetings,

Mike Antonius, MBADirector Telesur


RoadsignindowntownParamaribo,markingthedifferentdistricts.


2017 KEY FIGURES


MULTI YEAR FINANCIAL OVERVIEW


CORE VALUES


HISTORICAL OVERVIEW


MISSION AND VISION

Mission:Facilitatecommunicationthroughinnovativemarket-basedsolutions

Vision:RemaintheleaderofcommunicationsdevelopmentofSuriname

MEANING OF LOGO AND COLORS

• Derivedfromafingerprint:• Representstheownidentity.• Givescontenttothemissionstatement;servicesandproducts. - Personal/customizeddeliverytothecustomer.• Representstheuniquenessofthecompany.• Makesanassociationwiththeenduser. - He/she recognizes himself/herself in the logo. • SevenlinesequalthenumberoflettersmakingupTelesur’sname.

YELLOWisassociatedwith:

• Intellect• Honor • Energy • Loyalty • Stimulationofmentalactivity• Joy • Happiness • Attention

BLUEisassociatedwith:

• Reliability • Honesty • Wisdom• Confidence• Accuracy in promoting high-tech products • Intelligence• Faith


THE DISTRICT OF MAROWIJNE; COASTAL INLANDMarowijneisthedistrictparexcellencetogetatasteofwhat it is like tobe in theheartof theinterior while travelling alongside the coastalstrip. This tells much about the district’s pristine nature. Marowijne is known for its nestingbeacheswhere sea turtles, including the giantleatherback turtle (Aitkanti), come from other parts of the world to lay their eggs. For thisreason, the Galibi Nature Reserve is a touristattraction.

MINERALRESOURCESMarowijne is rich in mineral resources.At thebeginning of the twentieth century, bauxitewasdiscoverednearMoengowhichmade thisSuralco town flourish. Situated in a slopinglandscape,Moengo is an example of beautifulurban architecture modeled according to American style. Albina, the main town of theMarowijne district, is also gorgeously situatedon thecurvy,wideMarowijne riverwithon theopposite side “France”, as Saint Laurent duMaroni is called. Albina, initially founded as a tradingpost,becamebestknownasariversideresortafter theFirstWorldWar.Thanks to thelively, back-and-forth boat transport of peopleand goods, Albina has maintained its dynamic character.

POSITIVEIMPACTIn Moengo efforts are also being made tobring back economic prosperity and nice living conditions. Individuals put in efforts, beit as teachers, youth coachesor preservers ofcultural heritage. With minimal resources anda large dose of perseverance, they make apositiveimpactonthefutureoftheirimmediateenvironment, no matter how small. With thedistrict of Marowijne as this annual report’stheme,youasareaderwillbeintroducedtofouroftheseimpactfulindividuals.

Dugoutcanoeonthe“Beneden-Marowijne”River.


AnchoragepointforrivercrossingtoSaint-Laurent,French-Guiana.

RearsideoftheshoppingpromenadeatAlbina’swaterfront.


MAYRA COLOM, THE NEVER QUITTING SCHOOL PRINCIPAL

“IWANTCHILDRENTOBECOMESOMETHINGINSOCIETYANDRETURNPROUDLY”At the IporomaSchool in Erowarte, about fivekilometers from Albina, the paved road endsabruptly, just in front of a sandy beach on thewideMarowijneRiver.Thismakes it seem likeyou have landed in a far corner of the world.About 50 pupils sing the national anthem during the flag ceremony. At this small-scale school,great work is being done by school principalMayra Colom and her often work-overloadedteam. “Never give up!” is her life motto. Sheherself was in the fourth grade of this schoolwhen her family moved to French Guiana in1986becauseoftheInlandWar.Yetshehadtodailycrosstheriverbyboat, togotoschool inAlbina. After the MULO (secondary school), she

Surinamese Pedagogical Institute (SPI) andthen becameassistant teacher at the Iporomaschool.

MULTIPLECLASSESMotherhood has not stopped Colom from studying.Sheobtainedtheteacher’scertificateandheadmaster’scertificateandreturnedtotheIporoma school. She first taught kindergartenandthenbecameresponsibleforfirstandsecondgrade.“Thatwasanexperienceforme:howtoteachtwoclassesat thesametime?”When inaddition to these matters, the school principal at thattimefellill,anothercolleagueandIwereincharge of the school.”The “biggest challenge”for Colom came in 2013, when she took overfifth and sixth grade as well as the school’sadministration from the ailing school principal whose illness turned out to be untreatable. “Itwasreallytoomuch.However,Iperseveredoutof sympathy for the children. I know them allpersonallyand it’s important that theycanvisitschoolclosetohome.”

RETURNPROUDLYWhenColomherselfvisitedtheMULOinMoengo,she had to ride her bike to Albina in the morning on an awfully bad road. During her follow-upstudies, she also made long days because of the poor condition of the roads that led to the school. “Yet, I kept going. I share these experienceswithmypupilssotheywillnevergiveup.Ialsotell them, “Youcanalwaysbecomea fatheroramother, but you can’t always get a degree.”TheeffortsofColomandherteamhaveahugeimpact on the pupils’ future. In recent years,between70and80percentpassedtheschool’sfinalexam.“Iwantthekidstosay,“We’regoingtobesomethinginsociety”andproudlyreturntoErowartetohelpbringdevelopment.Thatismypurpose.”

PrincipalMayraColomoftheIporomaSchoolinErowarte.


PupilsoftheIporomaSchoolinErowarte.


GOVERNANCE


THE BOARD OF SUPERVISORY DIRECTORSAsatjuly2020


REPORT OF THE BOARD OF SUPERVISORY DIRECTORSIn order to comply withArticle 15 of the act on the provision of telecommunications, the “WetTelecommunicatievoorzieningen”, we have audited the 2017 statement of financial position andthe statement of comprehensive incomeof the “Telecommunicatiebedrijf Suriname”,Telesur, forthe2017fiscalyearincludingthenotesthereon,andwereassistedindoingsobyAuditFirmTjongAHungN.V.Thisexternal auditorprovidedaqualifiedopinionon theUSDfinancial statements2017.Weapprovedthe2017USDannualreportofwhichthestatementoffinancialpositionasatDecember31st,2017andthe2017statementofcomprehensiveincomeareanintegralpart.

InlinewithArticle17sub1ofthesameacttheBoardofSupervisoryDirectorsadvisestheGeneralMeetingofShareholders tokeepTelesur’sprofits if any,over thenext10 (ten) yearswithin thecompany,forthefollowingpurposes.

1. TorepaytheloanstotheBankofChina(USD25million)andtheExportImportBankofChina (USD98.5million).

2. SettlementofoutstandingdebtsoftheSurinameseGovernmenttoTelesur(SRD168,5million asatJune2019).

3. Paymentofinvoicesforservicespurchased(SafeCity,Datacenter,videoconferencing,data lines,telecommunicationstraffic,SMSetc.)bytheRepublicofSuriname.

4. FurtherimplementationoftheInlandAccessProject,inaccordancewithSuriname’s Governmentpolicy.

If the above obligations are met before the 10-year term, Telesur will again pay dividends inaccordancewithstatutoryprovisions.

WethereforerecommendthatTelesur’sGeneralMeetingofShareholdersdeterminethestatementoffinancialpositionasatDecember31st,2017andthe2017statementofcomprehensiveincomeandapprovetherecommendedprofitallocation.Thisdetermination,pursuanttoArticle15sub7oftheaforementionedLaw,extendsdischargeofTelesur’smanagementandsupervisoryboardforthemanagementandsupervisionconductedin2017.

TheaboverecommendationtotheGeneralMeetingofShareholdersofTelesurhasbeenapprovedand adopted by the shareholder’s representative, The Minister of Public Works, Transport &CommunicationsMr.VijayChotkan.

Finally, we are pleased to express our appreciation and gratitude for the way that Telesur’smanagement and all other employees have committed themselves to the company in the yearpassed.

TheBoardofSupervisoryDirectorsofTelesur

Mr.G.HewAKee,PhD ChairmanoftheBoardMr. Drs. J. Bolman Deputy Chairman of the BoardMrs.F.Harpal–vanOmmerenMPA,BSc SecretaryMr.Ir.R.Abrahams MemberMr.Ing.R.Doekhie MemberMrs.Drs.M.Isselt,MBA Member


THE BOARD OF DIRECTORSAsatjuly2020


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Asatjuly2020


OSCAR AWESE, COACH AND FATHER OF YOUNGSTERS“BETTERGRADESBYDOINGHOMEWORK”It isabout5o’clockonMondayafternoon.OnafencedartificialturffieldintheheartofAlbina,twoboys’ teams inyellowandblueoutfitsplayfootball against each other. From the stands, the then 50 year old trainer, coach and caretaker OscarAweseiswatching.“Iseechildrenasthefuture.When I was a kid, I did not have this.These village children are also my family,” hesays. Every afternoonAwesewelcomes about80 football-loving youngsters at the turf field.“Sport is particularly important for those whogotoschool,”Aweseexplainshismotivation.”Itis refreshing for their brains and teaches them discipline. I think it is important tospendeveryafternoonwiththeseyoungsters.Otherwisetheyhang out in the streets or in the supermarkets andsomeofthemwillshoplift.”

TEENAGECLUBLEADERAwese did not finish primary school becauseof the InlandWar thatbrokeout in1986.Withhis familyhefled toFrenchGuiana,where foryears they stayed in a refugee camp. Before the war, he was a teenage club leader at theBaptist church inAlfonsdorp, where he and amissionaryreadbiblicalstoriestochildreneveryFriday.“Manyof thesechildrendiedduringthewar,”herememberspainfully.“Theirnamesareon the monument in Moiwana. That’s wheremostofthemdied.”IntherefugeecampAwesewas also involved with children and sports. In1997hereturnedtoAlbinaandcontinued.Theartificial turf field has been donated to Albinaby the Royal Dutch Football Association, partly becauseofhiseffortsasamemberoftheAlbinaSports association.“Before, it was an open field where childrenran uncontrolled which was dangerous due topassingcars.”Theballsandoutfitsaredonatedby sponsors. POSITIVEIMPACTAwesealsoactsasa‘fatherandlawyer’forhisyoungsters.Heregularlyvisitsthematschoolorathome to inquire if theyarebehavingwell. Ifthey are not, they are disciplined by not being

allowed to come and play football. “By doingtheir homework, they get better grades,” hesaysaboutthepositiveimpactofhisapproach.“In case they are disciplined, I also explain tothemwhattochangeorimprove.Athome,theirbehavior also changes.” Many youngsters arenot met at home by their parents after school. “That’sabigsocialproblem inAlbina.So, it isimportant that we keep them occupied.” Theefforts ofAwese and his team are paying off.“Youcansee thatyoungstersare less likely tohang around the shops or be arrested for theft. Ifparentsdonotfindtheirchildrenathome,theyknow: “TheyarewithOscar.” Ipray toGod forgoodhealthso Icancontinue this foryears tocome.”

OscarAwese,footballcoachofAlbinayoungsters.


CoachOscarAwesewithtwocompetingAlbinayouth football teams.


2017 BUSINESS REVIEW


Thebusinessreviewsequentiallygoesintothefollowing:

1. MACRO-ECONOMICDEVELOPMENTS Abriefreflectionbymanagementonmacro-economicdevelopments,outliningtheenvironment Telesurhasoperatedin.Thissectionalsoaddressesdevelopmentsinthetelecomsector.

2. HIGHLIGHTS Management’sreportondevelopmentswithinTelesurformthecoreofthe2017Business Review.

3. 2018OUTLOOK ManagementconcludeswithabriefpreviewoftheagendatobecompletedbyTelesurto strengthen the company’s strategic position.

MACRO- ECONOMIC DEVELOPMENTS

In2017Surinameachieveda1.7%economicgrowth, i.e.progressafter twoyearsofeconomicrecessionwithnegativegrowthfigures.Themaindriverbehindthisgrowthwastheupsurgeinpricesontheinternationalgoldmarket,whichincreasedtheearningsfromgoldexports.Inflationalsofellsharplycompared to2016andendedat22%.Theofficialexchangeratebetween theSRDandtheUSDbarelyrose,andfinancialratiosinthebankingsectoralsoshowedpositivedevelopment.Nevertheless,itisachallengetopurchaseforeigncurrencyattheexchangerateoftheCentralBankofSuriname,inaccordancewithinstructionsoftheMinisterofFinance.

The “TelesurNationalBroadbandProject” (TNBP)was implemented in2017aiming to increaseTelesur’sresilience.TheinvestmentamountstoUSD115million,toberealizedbymeansofaloantotheStateofSurinamebytheExportImportBankofChina(EXIMBank)amountingtoUSD.98.5millionwithatermof15yearsat3%interestandagraceperiodof5years.TheimplementationoftheTNBPwillcoveraperiodofbetween18and24months.

HIGHLIGHTS

GENERALThecompositionofTelesur’smanagementasatDecember31st,2017differsfromthatatthetimeof publication of this annual report. For completeness’ sake, it is stated that as of December 31st, 2017, besides Mr. M. Antonius, Telesur’s management team also consisted of Mr. R. Headley, Mr. S.TjitrotaroenoandMr.R.Naipal.

Thefollowing2017highlightsarelisted:

• Validationofthee-Surinamevisionbymanagement ThisvisionshouldpartlyleadtotransformationoftheSurinameseeconomyindigitalsense. Asagovernmentownedcompany,Telesurwantstoplayanimportantroleinenrichingthe livesofitsclientsandinthewaybusinessisconducted.Thee-Surinamevisionisthefirst steptowardsanintegratedapproachtothisend.Togetherwithalreadyidentifiedandpotential partners,thisdreamwillberealized.Thefirststephasbeentakenwiththekick-offofthe


TNBPtoprovidethecoastalplainwithhighspeedinternetbytheendof2019,whichwillform thebasisforfurtherdevelopmentoftheecosystemneededforthetransformation.Through thisvisionfurthercontributionstothesocio-economicdevelopmentofSurinamearemadeby enablementofabroadbandecosystem.Withinthatecosystem,Telesur’sroleisthatofprovider ofleadingICTservicestofurtherconnectsociety(government,companies,organizations, andhouseholds).Inaddition,Telesuralsoplaysaroleasane-servicesenablerforandfrom Suriname.Inthisway,Telesurcreatesaplatformforitselfontheonehand,andontheother handfortheentireSurinameseeconomyforthecreationofvariousnewe-services.Asan enabler,Telesurwantstogiveothercompaniestheopportunityto(further)digitalizetheir operationsandservices,enablingthemtoimprovetheircompetitiveposition.Thiscreates opportunitiesforcompaniesandvarioussectorstofurthergrowandcontributetothereali- zationofe-Suriname.Inordertogiveshapetothisecosystem,Telesuritselfwillparticipate inthedevelopmentandlaunchofanumberofe-services.

• Kick-off“TelesurNationalBroadbandProject” OnFridayJune9th,2017,aceremonialstartoftheTNBPwasmade.Onthisoccasion,the MinisterofPublicWorks,Transport&Communication,JerrydeMirandaandtheVicePresident oftheNationalAssembly,MelvinBouvawerepresentasrepresentativesofthegovernment. AtoastwasmadetogetherwiththechairmanoftheBoardofSupervisoryDirectorsofTelesur, GardelitoHewaKee,GeneralDirectorofTelesur,MikeAntoniusandtherepresentativeof Huawei,ZacharyQuiZhuyu.ThevariousspeechesemphasizedfaithinTelesurandthepo- tentialthecompanyhas.Thehighlightofthedaywasthecommissioningoftherenovated powerplantinClevia.ThisoperationwascarriedoutbyTelesur’sGeneralDirectorandthe VicePresidentoftheNationalAssembly.Theceremonywasconcludedwithaspeedtestin which48Mbpswasmeasuredfortheuploadand81.42Mbpsforthedownload.

• Focusoncontent Awell-knownquotefromBillGatesis“ContentisKing”.Theearningpotentialofcontentser- vicesisviewedagainstthisbackground.Thiscanbedeliveredwhentheinternetcapacity tocustomersathomeisincreased.Apackageconsistingofphonecalling,televisionandin- ternetisanexampleofatripleplayservice,alreadyofferedinternationally.Astarthasbeen madetoreviewthepossibilitiesofInternet-TV.Also,variouscontentsuppliershavebeen contacted.InpreparationforimplementationofaTelesurtripleplayservice,contenthasbeen purchased and is currently situated at ATV.

InordertoincreaseATV’saudienceshare,itwasdecidedtotightenupthestrategy.Firstof all,the“ATVnewstyle”trajectorywasstarted.Thegoalofthistrajectorywastodetermine whatthenecessaryimprovementsforATV’sorganizationare,andtoworktherefromonim- provingthequalityofservices.ThemainreasonbehindthisisthedecisiontouseTelesur’s owntelevisionstationasmuchaspossibletopromoteitsproductsandservices.Costcontrol isleadinginthisdecision.InthiscontextitwasdecidedthatATVwillfocusmoreonlocal productions in terms of content.


“TheIndigenous”byJozefKlasattheMarim-bopark in Albina.

HowlermonkeyattheGalibinaturereserve.

ArtworkmadeoutofbauxiteinMoengo.IndigenousgirlinGalibi.


PRODUCT DEVELOPMENTWithintheframeworkofproductdevelopment,acollaborationhasbeenestablishedwithKirpalaniKom(KKOM).TheprimarygoalofthiscollaborationistocombatchurnontheTelesurnetwork.Telesurhascreated“Data&Voice/SMSbundles”forKirpalaniNV,whichareintendedforprepaidsubscribers.ThesewillbeavailableexclusivelyatorthroughKirplalaniunderthename“KirpalaniKOM;aMobileVirtualNetworkOperatorontheTelesurnetwork”.

ORGANIZATIONALMATTERSIn 2017 an organizational change was implemented, namely separation of PR from the PublicRelations&Facilities(PR&F)department,resultingintheCorporateCommunicationandFacilitiesManagement departments. This separation creates a better basis for safeguarding the company’s reputationandthemanagementofanimportantpartofthecompany’stangiblefixedassets.

FINANCIALIMPACTInordertofinalizethefinancialstatementsregardingthe2017fiscalyear,anintensiveauditprocesshas been completed. This has resulted in determining the annual accounts and granting of discharge inanExtraordinaryGeneralMeetingofShareholders,ledbytherepresentativeoftheShareholder,theMinisterofPublicWorks,Transport&Communication,Mr.VijayChotkan.The2017fiscalyearendedwithapositivefinancialresult.

Inordertofurtherimprovetheorganization’sfinancialpolicy,increasedpriorityisgiventoestablishingfinancialprocessesandprocedures.Amongotherthings,emphasisisplacedontimelyinternalandexternalreporting,budgetmonitoringandcashflowmanagement.

Anabsolutepreconditionforimprovingthefinancialset-upwithintheorganizationistheoptimaluseofavailablefinancialsoftwarepackages.Inthiscontextithasbeendecidedtostartacompany-wideprojectinwhichoptimizationofuseofthesoftwarepackageinwhichourfinancialadministrationiscarriedout,willtakeplace.


2018 OUTLOOKIn2018,emphasiswillbeon “Operational Stability, Innovation & Growth”.Thisshouldbereflectedinimprovingthe“QualityofService,SeamlessCustomerExperience,SeamlessEmployeeExperience”andarobustfoundationforgrowth.ThiswilltakeintoaccountthetransformationTelesurhastogothroughinbecomingadigitalserviceenablerandprovider.

Toensurestability inoperations, investmentsaremadebymeansoftheTBNPin infrastructural,processes and systems to improve the quality of services and customer service to achieve anexcellentandstreamlinedcustomerexperience(“excellentandseamlesscustomerexperience”)soastoretaincustomersandacquirenewones.Thefocusforthe2018investmentbudgethasbeenonfixedinfrastructure,particularlythroughtheTNBP.Thiscreatesasolidfoundationforoursociety,whereeveryonehasaccesstodigitalcommunication.Theinvestmentsinthebroadbandnetworkarenotonlycateringtotheconstructionoffixedinfrastructure,butalsototheconstructionofdigitalinfrastructurerelatedtothee-Surinamevision.


SOERAT IRODIKROMO,DECORATED GAMELAN GURU

“MYIDEAISTOMIXALLCULTURES”InthecompoundofSuratIrodikromo(71yearsoldatthetimeoftheinterview),soothinggamelanmusic composed by himself can be heard.Irodikromo is dressed in Javanese traditionalattire and his grandchildren are listening. He playsthedrumandsaysafterwards:“Thedrumisdifficult,therearenomusicalnotes,soyou’vegottohaveafeelforit.”Theinstrumentshadtobedustedproperlyfirst,becauseithasbeenawhilesince thegroupmemberswere together.The gamalans, made of ‘Suralco iron’, wereinheritedfromapreviousgroupwhosemembershavealreadypassedaway.Irodikromohasbeencommitted to cultural preservation for over 25years. “I loveJavaneseandothercultures.Myideaactually,istomixthecultures.Thatiswhywe played the first “Ala kondreman dron” withHenkTjoninThaliain1992.”

DECLININGINTERESTHowever, interestofyoungpeople isdeclining,while simultaneously Irodikromo’s group isageing. “Thegroupconsistsofnine ladiesandour singer is almost ninety.” His father taughtgamelan music and wajang puppetry. “Almostevery day I heard gamelan and learned itwithout notations. Out of the nine children,I was the only one involved in culture.” In thepast, his group performed every week with“jaran kepang dancers”. Those glory days areover.“Nevertheless, Iencourageyoungpeopleto come and take classes instead of hanging out on the streets. You get free classes and a drink and still they are not interested. That’s too bad.” Irodikromo has trained five generationsof dancers and teaches every Saturday. Heblames the ageing population partly on the lack of a secondary school in Moengo. “IteachJavanesedancetogirlsaged9to15.Butafterprimaryschool they leave forParamaribotocontinuetheirstudies.NowIhavenogirlsindanceclassanymore.”

DECORATEDTWICENarda has been an ‘apprentice’ for twenty-five years and says about Irodikromo: “He isour gamelan guru. We were able to preservethe music and that is certainly thanks to him. It is a pity that so few young people stillparticipate. They think their mobile phone is moreimportantandhavenointerestinculture.Howcantheculturebepreservedifthereisnorejuvenation?” Nevertheless, Irodikromo hasreceived recognition for his multigenerationalculturalimpact.In2018hewasdecoratedbythePresidentonIndependenceDayandin2019bythe “Federatie Javanisme Suriname”. StudentRosieonherguru: “Hehasearned itbecausehereallydoesthisoutofloveandforourculture,whichhewantstopreserveandtransfer.Weareveryappreciativethereof.”

SoeratIrodikromoelaboratesongamelanmusic.


GamelanguruSoeratIrodikromoandhis“apprentices”inaction.


THE 2017 SUMMARY CONVERTED SRD ANNUAL ACCOUNTS

STATEMENT OF FINANCIAL POSITION AS AT 31-12-2017


2017 STATEMENT OF COMPREHENSIVE INCOME


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ountingtoSRD22,838,878.Theallocatedresultishigherthantheadministrativeresult(USD

1,837,301).Thedifferencebetween

theallocatedresultandtheadministrativeresultisdeductedfromthegeneralreserve.


2017 SATEMENT OF CASH FLOW


GENERAL NOTES TO THE 2017 SUMMARY CONVERTED SRD ANNUAL ACCOUNTS

1. GENERAL

Nature of business activities:

• Installing,maintaining,andusingtelephones,internetfacilitiesandothermeansof telecommunications.• Performing tasks regarding telecommunications based on statutory regulations. • Fulfillingalloperationsdeemedtobelongtothecompany’sworkterrain,resultingfromthe above-mentionedtasks.

2. ACCOUNTINGPRINCIPLESANDDETERMINATIONOFFINANCIALRESULTS

General

BasisforcompilingoftheconvertedfinancialstatementsTheconvertedfinancialstatementsarepreparedbasedon theUSDfinancialstatements,whichareinlinewithgenerallyacceptedaccountingprinciples.Thesubsidiarycompanieshavenotbeenconsolidatedinthefinancialstatementsandareincludedunder“Financialfixedassets”.

ConversionmethodTelesur’sadministrationisdoneinUSD.IncometaxreturnsarealsosubmittedinUSD.TheconvertedfinancialstatementsinSRDarederivedfromthefinancialstatementsinUSD.DuetoexchangeratefluctuationsduringtheyearbetweendeUSDandtheSRD,theconvertedSRDfinancialstatementspresentanapproximationofthestatementoffinancialpositionandthecomprehensivestatementof income.The increase in theexchangeratebetween theSRDand theUSD in2017(averageexchangerateofUSD1=SRD7.55andyearendexchangerateofUSD1=SRD7.52in2017versusaverageexchangerateofUSD1=SRD6.26andyearendexchangerateofUSD1=SRD7.49in2016)isthereasonthe2017convertedfinancialstatementsreflectadifferentpicturethanthe2017USDfinancialstatements.Thisappliesmainlytodevelopmentsin(net)income.

ThebodiesinchargeofgovernancehavefirmlyintenttochangetheadministrativecurrencyfromUSDtoSRD.The2017USDfinancialstatementswereconvertedtoSRDbasedonthefollowing:

Statementoffinancialposition• Theitemsincludedintheequityinitialcapital,capitaldepositandgeneralreservewere convertedatthehistoricalpriceUSD/SRG,afterwhichitwasnominatedbacktoSRD.Had theequitynotbeenconvertedintoUSDandconvertedbacktoSRD,thesharecapitalwould besubstantiallylowerifthecapitaldepositsinSRGwereconverteddirectlyintoSRD.• Conversionofthetangiblefixedassetshasbeendoneonthebasisofthebalanceofthe convertedSRDfinancialstatements2016.TheendingbalanceinSRDequalstheending balanceatDecember31,2017attheyear-endrate.Movementsduringtheyearareconverted inSRDagainsttheaverageSRD/USDexchangerate.Thedifferencehasbeenaccountedfor asconversiondifferences.• Theotheritemsonthestatementoffinancialpositionwereconvertedattheyear-end exchangerateasatDecember31st,2017


• TheConversionDifferencesitemwasusedasabalancingamount.

Statementofcomprehensiveincome• Allitemshavebeenconvertedattheaverageannualexchangerate.• Thisremainsanestimatebecauseitdoesnottakeintoaccountinterimexchangerate fluctuations,whichoccurredduring2017andhavehadamaterialimpactonfinancial transactions.

ComparisonwiththepreviousyearThe principles for determining the assets, liabilities and financial results have not changed incomparisontothepreviousyear.

Accounting principles for valuation of assets and liabilities

Tangiblefixedassets

Landacquiredprior to January 1st, 1990 is accounted for at theappraised valueasat January1st,1990,whilelandacquiredafterJanuary1st,1990hasbeenaccountedforatacquisitioncosts.Thebuildings,telephoneswitchboardplantsandstationsacquiredpriortoJanuary1st,1990areaccounted forat theappraisedvalueasatJanuary1st,1990, lesscalculateddepreciations.Thebuildings,telephoneswitchboardplantsandstationsacquiredafterJanuary1st,1990areaccountedforatacquisitioncosts,lesscalculateddepreciations.Othertangiblefixedassetsareaccountedforatacquisitioncost,lesstheaccumulateddepreciations.Depreciationsaredonelinearly,basedontheestimatedeconomiclifespan.Investmentsinprocessofconstructionhavebeenvaluedattheamounts spent thereon.

Theannualdepreciationratesforthedifferentcategoriesamounttothepercentagesbelow:Buildings: 3½% -10%Telephoneswitchboardplantsandstations: 15% -33⅓%Cablesystemsandmicrowaveradiolinks: 4% -25%Dataandsubscribers’equipment: 4% -33⅓%Vehicles: 33⅓%Otherfixedassets: 33⅓%

In2015,someofthelandandbuildingswereappraised.ThecurrentvalueofthispartoflandandbuildingsasatDecember31,2015equalsUSD34.7million.

Thisvaluehasnotyetbeenincorporatedinthe2016financialaccounts.Thefinancialpositionwillbedifferentasa resultofappraisalofallbuildingsand landand incorporating it in thefinancialstatements.

FinancialfixedassetsShareholdingsTheshareholdingsarevaluedattheacquisitionprice.


StockWarehouse stocksWarehousestocksareaccountedforattheaveragepurchaseprice,lessaprovisionforobsolescence.

Goods orderedGoodsorderedarevaluedatinvoicevalue.Invoicevaluesexpressedinacurrencyotherthanthereportingcurrency,havebeenconvertedtakingintoaccounttheexchangerateasattheendoftheyear.

AccountsReceivableAccounts receivable telecommunications carriersThesehavebeenaccountedfor,atnominalvalue,lessaprovisionfordebtors’risk.Theprovisionshavebeendeterminedonanindividualbasisforeachcarrier.

Private accounts receivableTheseaccountsreceivablehavebeenaccountedfor,atnominalvalue,lessaprovisionfordebtors’risk.

Provisions

Provision for pensioners

Thisrelatestoaprovisionforsupplementstothepensions,amonthlyallowanceandmedicalbenefitsforretireesandfutureretirees.Thestaff,includingthemanagementofTelesurparticipatesintheCivilServants’PensionPlan.The“AmbtenarenPensioenverordening1972”(theCivilServants’PensionAct)statesthatthemaximumpensionablesalaryequalsthesalaryofaDepartmentalDirectorattheGovernment.Theamountofthisprovisionisbasedonactuarialcalculations.

Actuarial assumptionsThefollowingassumptionshavebeenusedtocalculatetheprovision.MaritalfrequencyandagedifferenceAmaritalfrequencyof54%isassumedformaleandfemaleemployees.Anagedifferenceoffiveyearsisassumedbetweenspouses.ReturnoninvestmentsTheexpected returnon long-termSRD investments is14%.This rateof return isbasedon theexpectedaverageinterestrateonlowriskinvestmentsoftermdepositsatlocalcommercialbanks.IndexationTheannualallowancesarebasedonanassumedannualindexationrateof8.04%,whichisequaltothe5-yearaverageofthepublishedinflationrates.MortalityMortality rates are based on calculations by the “Kring vanActuarissen inSuriname” regardingobservationperiod2010-2013(KRIAS2010-2013).Funeral costsTheaveragefuneralcostsareestimatedatSRD7.260foreachfuneral.Medical costsThefollowingassumptionshavebeenusedtocalculatetheprovisionformedicalexpenses:


• Thepensionersmakeup34.34%oftheentirepersonnelpopulation.• ThenetmedicalcostsregardingpensionersequalSRD3,359,933(for2018).• TheaveragecostsperpensioneraftercostreductionequalSRD4.976.

OtherassetsandliabilitiesUnlessstatedotherwise,otherassetsandliabilitieshavebeenaccountedfor,atnominalvalue.

PrinciplesfordeterminingfinancialresultsThefinancialresultisdeterminedasthedifferencebetweenontheonehand,theincomeearnedfromproductssoldandservicesdeliveredandon theotherhand thecostofproductssold,andservicesdelivered,thecostsandotherchargesovertheyear.

Netrevenuesreferto:

• Theamountsinvoicedtocustomersforgoodsandservicesdelivered,ifapplicableless paymentsowedtocarriersforoutgoingtelecomtraffic,thecommissionsowedtodistributors of among other things telephone cards and security codes and the bonuses and discounts granted to customers. • Thepaymentsfromcarriersforincomingtelecomtraffic.

Theprofitsontransactionsareaccountedforintheyeartheyarerealized.Lossesareaccountedforas soon as they are foreseeable.

Costsareallocatedtothefiscalyeartheyregard.

Taxesarecalculatedbyapplyingtheapplicablerateonthefinancialresultofthefiscalyear,takingintoaccountapplicabletaxincentives.

3. CURRENCY3.1 Presentation,reportingandfunctionalcurrenciesDuetohyperinflationoftheSurinamesecurrencyinthepast,in1995theUSDwaschosenasthepresentationandreportingcurrency.TheconvertedfinancialstatementsinSRDarederivedfromtheUSDfinancialstatementsandtheunderlyingadministrationinUSD.Forprinciplesoftheconversion,we refer to the section “Conversionmethod” under “Accounting principles and determination offinancialresults”.

3.2 ForeigncurrencyMonetary assets and liabilities denominated in a currency other than the reporting currency are convertedat therateasat thebalancesheetdate.Theexchangedifferencesresulting fromtheconversion are included in the statement of comprehensive income.Transactions in a currencyotherthanthereportingcurrencyduringthereportingperiodwereprocessedattheexchangerateat the time of settlement.Theratesofthemaincurrenciesusedareasfollows:

December 31st, 2017 December 31st, 2016USD1=SRD7.52 USD1=SRD7.49USD1=Euro0.83 USD1=Euro0.95


TheaverageannualexchangerateUSD/SRDwas7.55in2017.(2016:USD/SRD6.29).

4. PRINCIPLESFORPREPARATIONOFTHECASHFLOWSTATEMENTThecashflowstatementisdrawnupusingtheindirectmethod.Thecashresourcesinthecashflowstatementconsistofbankbalancesandcash.Taxes,interestincomeandsimilarincome,aswellasinterestexpenseandsimilarexpenses,areincludedincashflowfromoperatingactivities.

5. THEACTONANNUALFINANCIALSTATEMENTSInAugustof2017,theActonAnnualFinancialStatementswasapprovedbyparliament.Inlinewiththisact,Telesurwill have toprepare itsfinancial statementsapplying the InternationalFinancialReportingStandards(IFRS)asofthe2020fiscalyear.TelesurispreparingfortheIFRSconversion.

6. EVENTSTHATOCCURREDAFTERTHEDATEOFTHESTATEMENTOFFINANCIAL POSITIONTheloansofDatasurN.V.andWiseN.V.andtheircurrentaccountswithTelesurhavebeenconvertedto share premium as at January 1st,2018.

7. NON-BALANCESHEETLIABILITIES

HuaweiIn2017TelesurandHuaweiInternationalCo.Limitedsignedanagreementforthepurchaseandinstallationofequipmentforthe“TelesurNationaalBreedbandProject”forthetotalamountofSRD115 million.

Columbus Networks Ltd. Suriname/Guyana Submarine Cable System OnAugust12th,2009,TelesurandGTTenteredintoanagreementwithColumbusNetworksLtd.toconnectthesecondseacabletotheexistingnetworksinTrinidad.TheeffectivedateisFebruary1st, 2010andthedurationis20years.TelesurpaysamonthlyfeeofUSD6,718toColumbusNetworksLtd.

OtherAspartoftheexpansionofitsnetworks,Telesurhasenteredintocontractswithvarioussuppliers,amountingtoUSD49millionexcludingimportdutiesandsalestax,forthesupplyofequipment,goods,andservices.AsofDecember31st,2016,equipment,goods,andservicesarestill tobereceivedamountingtoUSD15.7million(SRD117.8million).Noinvoicesinthisregardwerereceivedby thedateof thestatementoffinancialposition.Thisamountwas thereforenot included in theDecember 31st,2017statementoffinancialposition.

8. ONGOINGLAWSUITSThecompanylawyerhasreportedthefollowinglawsuits:

FormerdirectorsProceedings on the meritsTwo former directors namelyMr.D.Currie andMr.M.Muringen filed a claimwith the judge inpreliminary proceedings, objecting their termination with the company. The two aforementionedgentlemenhavefiledforproceedingsonthemeritclaimingthefollowing:


Drs. D.M.R. Currie• Primary:annulmentofthedismissalorderoftheMinisterofLaborandannihilationofhis dismissal.• Inthealternative:AsofJune30th, 2016, continued payment of his monthly salary of USD 12,000oritsequivalentvalueinSRDincreasedbytheannualstatutoryinterestrateof6% startingthedateoffilingtheclaimuntilcompletefulfilment.• Additionally,inthealternative:PaymentofanamountofUSD696,000oritsequivalentvalue inSRDincreasedbytheannualstatutoryinterestrateof6%,staringthedateoffilingthe claimuntilcompletefulfilment.M.K. Muringen MBA• Primary:identicaltoMr.Currie’sclaim;• Inthealternative:ContinuedpaymentofhismonthlysalaryofSRD20,000increasedby penaltyinterestof50%(latepaymentinterest),atleastwiththeannualstatutoryinterestrate of6%,startingthedateoffilingtheclaimuntilcompletefulfilment.• Additionally,inthealternative:PaymentofSRD1,200,000increasedbytheannualstatutory interestrateof6%,staringthedateoffilingtheclaimuntilcompletefulfilment.

OtherformeremployeesThe following former Telesur employees have also filed a lawsuit against Telesur for reversingterminationoftheiremployment,requiringpaymentofsalaryandemoluments,including6%statutoryinterestuptothedaytheiremploymentisrestored:1. Rahan, Henk2. Soemodikromo, DennyInaddition,thesetwoformeremployeesalsofiledalawsuitonOctober12th, 2017, demanding to pay SRD 10,000 per day from the aforementioned date to the day of the restoration of their employment.

InthecourtcaseagainstMrs.Braaf,thejudgeruledinTelesur’sfavoronJuly3rd,2019.

IntelsurN.V.TelesurfiledalawsuitagainstIntelsurN.V.onNovember3rd,2009foratotalofUSD641,235increasedby6%,tobemadepayablefromthedayofthejudge’srulinguntilfullpayoutisaccomplished.Inaddition,TelesurhasrequestedamonthlyfeeofUSD47,423including8%salestax,tobepaidonthe last day of each month.

Theaboveamountistobepaidretrospectivelyfromthedaytheagreementwasenteredintobetweenthe parties on October 30th,2007.ThislawsuitregardsservicesprovidedbyTelesurforinstallationof the InternationalPrivateLine thatwouldbeavailable fromAlbina/Moengo to Intelsur’scentralTelecommunicationsCenterinParamaribo,Geyersvlijt.TrialisscheduledforOctober8th,2019.

AmsittN.V.LawsuitsagainstTelesurhavebeenbroughtbyAmsittN.V.:1. ItcallsforannulmentofthecontractbetweenAmsittandTelesur.2. Inaddition,TelesurisrequiredtopayanamountofUSD850,000incompensationforlossof incomeovertheperiodMarch2012toNovember2013.

ThistrialisscheduledforJuly9,2019.


AtlanticArchitectsAtlanticArchitectsfiledalawsuitagainstTelesuronJuly15th,2013,requiringTelesurtopayUSD38,000toannuallybeincreasedby6%statutoryinterest,fromthedaythelawsuitisfileduntiltheday of a court ruling.ThecourtrulingisexpectedonAugust13th,2019.

Noprovisionforlitigationisconsiderednecessaryfortheaforementionedcases,astheamountsortimingoftheeventsareuncertainand/orthelawsuitsareexpectedtobesettledinTelesur’sfavor.

BoshuizenTraining&ConsultancySurinameFoundationBoshuizenTraining&ConsultancySurinameFoundationfiledalawsuitagainstTelesuronOctober30th,2017claimingtheoutstandingreceivableofSRD15,846.ThecourtrulingisexpectedonOctober2nd,2019.


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TelecommunicatiebedrijfSuriname(Telesur)

To:theManagementandtheSupervisoryBoardoftheTelecommunicatiebedrijfSuriname(Telesur)

REPORT OF THE INDEPENDENT AUDITOR

Ourqualifiedopinion

The summary converted SRD financial statements 2017 of Telecommunicatiebedrijf Suriname(Telesur)basedinParamariboasstatedonpages30to40isderivedfromtheUSDauditedfinancialstatements2017ofTelecommunicatiebedrijfSuriname(Telesur).

InouropiniontheaccompanyingsummaryconvertedSRDfinancialstatements2017arederived,inallmaterialrespects,fromtheUSDauditedfinancialstatements2017ofTelecommunicatiebedrijfSuriname(Telesur)andconvertedbasedontheprinciplesasdescribedinthenotestothesummaryconvertedfinancialstatements.However,thesummaryconvertedSRDfinancialstatements2017haveapossiblemisstatementtotheequivalentextentastheUSDauditedfinancialstatements2017of Telesur.

ThesummaryconvertedSRDfinancialstatements2017comprise:

1. thestatementoffinancialpositionatDecember31,2017;2. thestatementofcomprehensiveincomeandcashflowsover2017;and3. therelatedexplanatoryinformationonthesummaryconvertedfinancialstatements.

SummaryconvertedSRDfinancialstatements

ThesummaryconvertedSRDfinancialstatements2017arederivedfromtheUSDauditedfinancialstatements2017.ThesummaryconvertedSRDfinancialstatements2017donotcontainall thedisclosuresrequiredbygeneralacceptedaccountingprinciples.Readingthesummaryconvertedfinancialstatements2017andourreportthereon,therefore,isnotasubstituteforreadingtheUSDauditedfinancialstatements2017ofTelecommunicatiebedrijfSuriname(Telesur)andourauditor’sreport thereon. ThesummaryconvertedSRDfinancialstatements2017andtheUSDauditedfinancialstatements2017donotreflecttheeffectsofeventsthatoccurredsubsequenttothedateofourauditor’sreportontheUSDfinancialstatements2017ofJuly10,2019.

TheUSDauditedfinancialstatements2017andourauditor’sreportthereon

We expressed a qualified opinion on the USD audited financial statements 2017 ofTelecommunicatiebedrijfSuriname(Telesur)inourauditor’sreportofJuly10,2019.Ourqualifiedopinionisbasedonthetelephonecardsincirculation,whicharepresentedundershorttermliabilities.Duetoorganizationalcircumstanceswehavenotbeenabletoobtainsufficientandappropriateauditevidence regarding theaccuracyandcompletenessof this financial statement line-itemand therelatingprofitandlossaccount.Asaresult,wewereunabletodeterminewhetheranycorrectionswere necessary.The auditor’s report also contains emphasis on the determination of the result2015.Determinationoftheresult2015isbasedontheconvertedSRDfinancialstatements.

ResponsibilitiesofManagementand theSupervisoryBoard for thesummaryconvertedfinancialstatements


Responsibilities of Management and the Supervisory Board for the summary convertedfinancialstatements

ManagementisresponsibleforthepreparationofthesummaryconvertedSRDfinancialstatements2017onthebasisoftheprinciplesandconversionmethodasdescribedintherelatedexplanatorynotes.

TheSupervisoryBoardisresponsibleforoverseeingthecompany’sfinancialreportingprocess.

Ourresponsibilities

Our responsibility is to express an opinion on whether the summary converted SRD financialstatementsarederived,inallmaterialrespectsfromtheUSDauditedfinancialstatementsbasedonourprocedures,whichweconducted inaccordancewith InternationalStandardsonAuditing,engagementstoreportonsummaryfinancialstatements.

Paramaribo, July 20, 2020

TjongAHungAccountantsN.V.

drs.J.D.KortramRACAPartner


TRESNA PINAS, VERSATILE MOENGONESE“WEHAVETOENHANCEMOENGOAGAIN”“I do a lot,”TresnaPinas replieswhen asked.At her home in Moengo she runs a craft shop wheremainlylocalfemalecrafterssellproductsto touristsand localvisitors.Pinas ischairmanof the Teke Leli Foundation (follow training)including a theatre school and a dance school, where young people can learn maroon dancestyles. Her father is a maroon culture expertand the ‘driving force’ behind Teke Leli. Pinasalsomakesrecordingsofconversationswiththeelderly.“Icanusethoselatertoeducateyoungpeoplewhodon’tknowthatpartofhistory.”Sheis also the principal of the Bambi School withabout400pupils.“Ifyoungpeoplehavetowritetheses, make presentations or recite something, Iamhappytohelpthem.”

ECONOMICSELF-RELIANCEPinas strives for economic self-reliance andfrequentlyworkswithsinglewomen.ShestarteddoingsouponherreturntoMoengoafteratwo-year stay in a refugee camp in French Guiana because of the Inland War. “Many womenlost their spouses during the war. There werealso teenagemotherswhono longer could goto school because they had to support their families.” Pinas, who is also a mother, knowshowharditistobesingle.“ThatiswhyIhadtodosomethingforthesewomen.Westartedwithsewingclasses,handicrafts,wemadethingsforsales purposes and that’s how the craft shopcameintobeing.”

INHEROWNHANDSShe completed her secondary school MULO education,which shehad to interrupt becauseof the war. After obtaining the “forest land”teacher’s certificate, for two years sheworkedas a teacher in the interior. She then obtained her teacher’s certificate within five yearsthereafter. Pinas also founded Teke Leli to take mattersintoherownhands.OrganizationsfromParamaribo and abroad approached Moengo’s manufacturing women in a manner based on

manufacturing women in a manner based onpity.“Somedidashorttimesuperficialprojectwithus,tookpicturesorhadanewspaperarticlewritten.Thereafter, theyweregoneandhad inthe meantime received payment from donors.ThatiswhyIstartedafoundationtobeabletodirectlydealwithdonors.”REBUILDPinas believes in the economic potential andtotal revival of her birthplace. “We, the peopleof Moengo have to work at its developmentourselves tomake itbeautifuloncemore.Thatis why I encourage young people to graduateandstarttheirownbusiness.”Shehasmadeasignificantimpactontheeconomicopportunitiesofthelocals.“Womenwhousedtobeunabletomakeclothesnowsellgenuinelynicehomemadeoutfitsandothergarments.Inmostcases,IamproudofthepeopleIhavesupported.Weteacheachothernottowaitonlanti(thegovernment)”.

Marron culture specialist, Tresna Pinas in front of her“CraftshopMoengo”.


Impressionoftheproductrangeat“CraftshopMoengo”.


TelesurShopattheriversideAlbina

TelesurshopinMoengoattheSumatraweg


TELESUR LOCATIONS IN SURINAME

telesur annual report 2017 pag. · telesur annual report 2017_ pag. 5 director’s message dear...

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