December 31, 2020 and 2019
CASH FLOWS FROM OPERATING ACTIVITIES
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
December 31, 2020 December 31, 2019
Petty cash $ 110,000 $ 110,000
Demand deposits 1,611,943,059 973,596,983
Time deposits 3,164,576,471 4,169,829,495
Total $ 4,776,629,530 $ 5,143,536,478
(2) Available-for-sale financial assets
Items December 31, 2020 December 31, 2019
Non-current items:
Exchange trade funds $ 58,682,576 $ 35,763,118
Valuation adjustments 37,528,174 6,797,932
Total $ 96,210,750 $ 42,561,050
A. For the years ended December 31, 2020 and 2019, the TaiwanICDF recognized $30,730,242 and $6,797,932 in other comprehensive income for fair value changes, respectively.
B. The fair values of investment in exchange traded funds are based on the closing price in market on balance sheet date.
(3) Held-to-maturity financial assets
December 31, 2020 December 31, 2019 Current items
Government bonds $ 90,741,404 $
Corporate bonds 573,343,651 673,557,003
Total $ 664,085,055 $ 673,557,003
Non-current items
Government bonds $ 390,952,950 $ 484,528,749
Corporate bonds 2,813,406,569 3,243,676,697
Total $ 3,204,359,519 $ 3,728,205,446
The TaiwanICDF recognised interest income of $93,311,969 and $102,597,024 for the years ended December 31, 2020 and 2019, respectively.
(4) Other receivables
December 31, 2020 December 31, 2019 Retained money receivable on completed projects $ 193,430,627 $ 365,582,251
Interest receivable 84,259,618 91,637,556
Other receivables - 3,686
277,690,245 457,223,493
Less: Allowance for doubtful accounts ( 601,699 ) ( 597,103 )
$ 277,088,546 $ 456,626,390
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(5) Long-term loans receivable
December 31, 2020 December 31, 2019 Current items
Current portion of long-term loans receivable $ 197,609,843 $ 242,764,354
Less: Allowance for doubtful accounts ( 7,564,230 ) ( 8,412,758 )
Net $ 190,045,613 $ 234,351,596
Non-current items
Long-term loans receivable $ 7,856,933,551 $ 3,532,565,595
Less: Allowance for doubtful accounts ( 96,597,828 ) ( 59,956,332 )
Net $ 7,760,335,723 $ 3,472,609,263
Total $ 7,950,381,336 $ 3,706,960,859
A. TaiwanICDF provides long-term loans in accordance with the Regulations for Loans by the International Cooperation and Development Fund as approved by the Executive Yuan. As of December 31, 2020 and 2019, the total outstanding loans denominated in U.S. dollars, Australia dollars and Euro dollars amounted to US$
196,002,181.23, AU$20,227,983,€47,775,635.62 and US$62,461,384.36, AU$20,227,983, €34,012,905.09, respectively.
B. Allowances for doubtful accounts were based on the Regulation for TaiwanICDF Dealings with Past Due/Non-Performing Loans and Bad Debts.
C. As Parque Industrial Oriente S.A. (PIO) defaulted on the loan extended for the Industrial Park Development Project in Paraguay amounting to US$11,003,488.32, TaiwanICDF filed a legal claim against PIO on September 1, 2003. The court in Ciudad del Este ruled in favor of TaiwanICDF in the first trial on March 26, 2004. PIO filed an appeal, which was rejected. Accordingly, it was proposed that the Industrial Park be auctioned off. Under TaiwanICDF’s 51st board resolution, TaiwanICDF has agreed, under a term of 20 years, for MOFA to repay the remaining loan balance. Although the MOFA agreed to pay off the remaining balance annually for 3 years beginning 2012 on December 13, 2012, payments of only US$3,293,162.77 and US$400,000 were made in years 2012 and 2013, respectively. The MOFA stated in a letter dated on April 16, 2014 that there were no payments made by MOFA for year 2014 and installments would resume starting from 2015 through annual budgets, and a payment of US$500,000 was made in year 2016 to 2019. As of December 31, 2020, the MOFA had repaid US$8,793,162.77 and the remaining balance was US$2,210,325.55.
D. There was no significant past due loan as of December 31, 2020 and 2019.
E. See Appendix 1 for the statement of changes in long-term loans for the year ended December 31, 2020.
(6) Financial assets measured at cost
As of December 31, 2020 and 2019, the details of financial assets at cost are as follows:
Items December 31, 2020 December 31, 2019
Carrying Amount Ownership Carrying Amount Ownership Equity investments accounted for using cost method:
Overseas Investment & Development
Corporation $ 175,000,000 19.44% $ 175,000,000 19.44%
Less: Accumulated Impairment ( 6,000,000 ) ( 6,000,000 )
169,000,000 169,000,000
BTS India Private Equity Fund Limited - - 113,333,733 6.80%
( =US$ - ) ( =US$ 3,640,112 )
Less: Accumulated Impairment ( - ) ( 113,333,733 )
( =US$ - ) ( =US$ 3,640,112 )
-
-Taiwan's Agricultural
Development Corporation 20,000,000 8.33% 20,000,000 8.33%
Less: Accumulated Impairment ( 6,910,615 ) ( 6,910,615 )
13,089,385 13,089,385
Net 182,089,385 182,089,385
International institution investment fund:
FIISF-Small Business
Account-Phase III 1,174,490,000 1,174,490,000
( =US$ 38,000,000 ) ( =US$ 38,000,000 )
Agribusiness Account 474,630,000 474,630,000
( =US$ 15,000,000 ) ( =US$ 15,000,000 )
Innovation and Sustainability in
Agribusiness Value Chains Account 210,245,000
-( =US$ 7,000,000 ) ( =US$ - )
Less: Accumulated Impairment ( 18,165,864 ) 18,165,864
( =US$ 591,433 ) ( =US$ 591,433 )
1,841,199,136 1,630,954,136
EBRD Financial Intermediary and
Private Enterprises Investment 476,300,000 . 476,300,000
Special Fund-Agribusiness Account ( =US$ 15,000,000 ) ( =US$ 15,000,000 )
Net 2,317,499,136 2,107,254,136
Total $ 2,499,588,521 $ 2,289,343,521
A. TaiwanICDF and the European Bank for Reconstruction Development (EBRD) entered into a contribution agreement dated May 19, 2011 in respect of the Financial Intermediary and Private Enterprises Investment Special Fund (FIPEISF)-Small Business Account III (SBA III), as amended on April 19, 2017 and March 19, 2019, pursuant to which TaiwanICDF had committed US$50,000,000. The contribution to SBA III is used to co-finance EBRD lending operations with financial intermediaries for on-lending to micro and small enterprises.
TaiwanICDF’s accumulated contribution amounted to US$50,000,000 and US$38,000,000 as of December 31, 2020 and 2019, respectively.
B. TaiwanICDF and the Inter-American Development Bank (IDB) entered into an agreement dated March 27, 2006 in respect of the Specialized Financial Intermediary Development Fund (SFIDF), pursuant to which TaiwanICDF had committed US$15,000,000. The contribution to the SFIDF is used to co-invest in, or co-finance well-performing microfinance institutions with the LAB of IDB Group. TaiwanICDF’s accumulated contribution both amounted to US$15,000,000 as of December 31, 2020 and 2019.
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C. TaiwanICDF and the EBRD entered into a contribution agreement dated November 18, 2015 in respect of the FIPEISF-Agribusiness Account (ABA), pursuant to which TaiwanICDF had committed US$15,000,000.
The contribution to the ABA is mainly used to co-finance EBRD lending operations for the private enterprises operating in agribusiness sector. TaiwanICDF’s accumulated contribution both amounted to US$15,000,000 as of December 31, 2020 and 2019.
D. TaiwanICDF and the EBRD entered into a contribution agreement dated November 27, 2019 in respect of the FIPEISF- Innovation and Sustainability in Agribusiness Value Chains Account(ISAVCA), pursuant to which TaiwanICDF had committed US$20,000,000. The contribution to the ISAVCA is mainly used to co-finance EBRD lending operations for the private enterprises operating in agribusiness sector. TaiwanICDF’s accumulated contribution both amounted to US$7,000,000 as of December 31, 2020.
E. TaiwanICDF takes into consideration the possible losses of a financial asset measured at cost-Indian private equity funds, and recognizes impairment losses annually based on a conservatism principle. The accumulated impairment losses of Indian private equity funds amounted to $113,333,733 as of December 31, 2019, and is deducted as of December 31, 2020.
F. The above listed foreign currency investments projects are stated using the historical exchange rate.
G. See Appendix 2 for the statement of changes in financial assets carried at cost for the year ended December 31, 2020.
(7) Property, plant and equipment Machinery and
equipment
Transportation equipment
Miscellaneous equipment
Leasehold
improvements Total At January 1, 2020
Cost $ 38,839,514 $ 3,589,397 $ 5,247,635 $ 3,857,054 $ 51,533,600
Accumulated
depreciation ( 24,993,731 ) ( 2,406,060 ) ( 3,454,925 ) ( 3,119,606 ) ( 33,974,322 )
$ 13,845,783 $ 1,183,337 $ 1,792,710 $ 737,448 $ 17,559,278
Opening net book amount as
at January 1 $ 13,845,783 $ 1,183,337 $ 1,792,710 $ 737,448 $ 17,559,278
Additions 4,599,880 28,999 148,050 - 4,776,929
Disposals ( 840,987 ) 5,000 ( 2,868 ) - ( 848,855 )
Depreciation
charge ( 3,155,339 ) ( 204,768 ) ( 399,175 ) ( 94,606 ) ( 3,853,888 )
Closing net book amount as at
December 31 14,449,337 $ 1,002,568 $ 1,538,717 $ 642,842 $ 17,633,464
At December 31, 2020
Cost $ 38,932,552 $ 3,573,396 $ 5,378,475 $ 3,857,054 $ 51,741,477
Accumulated
depreciation ( 24,483,215 ) ( 2,570,828 ) ( 3,839,758 ) ( 3,214,212 ) ( 34,108,013 )
$ 14,449,337 $ 1,002,568 $ 1,538,717 $ 642,842 $ 17,633,464
Machinery and equipment
Transportation equipment
Miscellaneous equipment
Leasehold
improvements Total At January 1, 2019
Cost $ 37,035,686 $ 3,565,597 $ 5,251,345 $ 3,857,054 $ 49,709,682
Accumulated
depreciation ( 21,446,843 ) ( 2,191,342 ) ( 3,055,767 ) ( 2,970,559 ) ( 29,664,511 )
$ 15,588,843 $ 1,374,255 $ 2,195,578 $ 886,495 $ 20,045,171
Opening net book amount as
at January 1 $ 15,588,843 $ 1,374,255 $ 2,195,578 $ 886,495 $ 20,045,171
Additions 1,940,355 23,800 12,390 - 1,976,545
Disposals ( 34,532 ) - ( 2,300 ) - ( 36,832 )
Depreciation
charge ( 3,648,883 ) ( 214,718 ) ( 412,958 ) ( 149,047 ) ( 4,425,606 )
Closing net book amount as at
December 31 13,845,783 $ 1,183,337 $ 1,792,710 $ 737,448 $ 17,559,278
At December 31, 2019
Cost $ 38,839,514 $ 3,589,397 $ 5,247,635 $ 3,857,054 $ 51,533,600
Accumulated
depreciation ( 24,993,731 ) ( 2,406,060 ) ( 3,454,925 ) ( 3,119,606 ) ( 33,974,322 )
$ 13,845,783 $ 1,183,337 $ 1,792,710 $ 737,448 $ 17,559,278
(8) Payables
December 31, 2020 December 31, 2019
Interset payable $ 3,378,260 $
-Accrued expenses 41,417,124 38,626,090
Other payables 90,459,682 144,559,009
Retained money payable on completed projects 241,164,511 393,134,342
$ 376,419,577 $ 576,319,441
(9) Long-term borrowings (Long-term borrowings are nil as at December 31,2019) Type of borrowings Borrowing period and
repayment term
Interest rate
range Collateral December 31, 2020 Bank borrowings
Long-term borrowings 15-Jun-42 0.40% - $ 3,747,900,000
Less: Current portion
-$ 3,747,900,000 TaiwanICDF participated in providing Credit to finance the Public Sector Operations and Financial Sector Support Facility for MSMEs led by the Central American Bank for Economic Integration (CABEI) in 2019, and received loans from the Bank of Taiwan amounting to US$50,000,000 and US$80,000,000.
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(10) Retirement funds
A. TaiwanICDF contributes monthly an amount based on seven percent of the employees’ remuneration and deposits it with a financial institution. This fund balance is not reflected in the financial statements. The fund balance with a financial institution was $91,527,545 and $98,215,436 as of December 31, 2020 and 2019, respectively.
B. The details of employees’ retirement funds allocated by TaiwanICDF are as follows:
For the years ended December 31
2020 2019
Balance at the beginning of the year $ 98,215,436 $ 97,437,497
Interest income 849,311 985,119
Contribution during the year - 2,340,000
Payments during the year ( 7,537,202 ) 2,547,180
Balance at the end of the year $ 91,527,545 $ 98,215,436
C. Effective September 1, 2009, TaiwanICDF has been an entity covered by the Labor Standards Law and has adopted the following two schemes:
Scheme A: the pension and severance obligation are settled and the settled amounts are transferred to TaiwanICDF’s retirement fund deposited with the financial institution. The employees may claim pension benefits when they retire or reach 55 years old or upon their death.
Scheme B: the pension and severance obligation are not settled and the old pension plan is extended.
Accordingly, TaiwanICDF recognized an accrued pension reserve of $16,014,156 for the excess of present value of pension benefits for the past and future service years under the old pension plan over the fair value of the pension fund at the measurement date, September 1, 2009 and contributed the amount to the account in 2010.
D. Effective September 1, 2009, TaiwanICDF has established a funded defined contribution pension plan (the “New Plan”) under the Labor Pension Act. Under the New Plan, TaiwanICDF contributes monthly depending on the contribution grades an amount based on 7% of the payroll grades corresponding to the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued in the employees’ individual pension accounts could be received in full or in monthly installments when the employees retire. The pension costs under the New Plan for the years ended December 31, 2020 and 2019 amounted to $10,737,149 and $9,292,906, respectively.
(11) Funds
A. The founding fund balance of $11,614,338,576 (Total assets of $11,634,131,427 less total liabilities of
$19,792,851) was derived from the closure of the IECDF management committee on June 30, 1996. In the official registration with the court, the total property value filed as $11,634,131,427 was based on the closing balance of assets of the IECDF management committee. As of December 31, 2020, the total amount of the assets registered with TaiwanICDF was $15,562,520,816.
B. The donated fund of TaiwanICDF consisted of the following items:
(a) The amount of $4,423,541 from MOFA’s Committee of International Technical Cooperation (CITC) was consolidated in TaiwanICDF on July 1, 1997.
(b) The amount of $600,000,000 was donated by the MOFA on January 16, 1999.
(c) The MOFA provided the amount of $250,075,955 on December 31, 2001 under the Regulation for TaiwanICDF in Providing Guarantee for Credit Facilities Extended to Private Enterprises Which Invest in Countries with Formal Diplomatic Relationships.
(12) Accumulated earnings
TaiwanICDF is registered as a consortium juridical person with the aim of strengthening international cooperation and enhancing foreign relations by promoting economic development, social progress and the welfare of the people in partner nations around the world. As TaiwanICDF is a non-profit organization, distribution of income is not permitted in accordance with its Articles of Association.
(13) Contracted project expenses
For the years ended December 31
2020 2019
Personnel expenses $ 398,833,460 $ 414,721,426
Operating expenses 685,155,663 1,001,838,803
Travel and transportation expense 27,123,126 47,628,097
Equipment investment expense 92,157,880 120,725,053
Total $ 1,203,270,129 $ 1,584,913,379
(14) Personnel expenses, depreciation and amortization
For the years ended December 31
2020 2019
Personnel expenses (Note)
Salaries $ 126,910,603 $ 126,276,003
Labor and health insurance 11,421,473 11,041,800
Pension 10,737,149 9,292,906
Others 5,214,220 5,305,273
$ 154,283,445 $ 151,915,982
Depreciation $ 3,853,888 $ 4,425,606
Amortization $ 2,433,932 $ 3,408,408
Note: Including technical cooperation personnel.
(15) Financial income
For the years ended December 31
2020 2019
Interest income $ 132,610,299 $ 163,884,306
Gain on disposal of investments 18,090,721
-Investment income-non-operating 2,349,000 144,200
$ 153,050,020 $ 164,028,506
(16) Other non-operating income
For the years ended December 31
2020 2019
Reversal of allowance for doubtful accounts $ - $ 3,626,573
Subsidy and donation income 1,553,881 478,815
Others 4,668,652 5,657,481
$ 6,222,533 $ 9,762,869
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(17) Income tax
Activities and related expenses of TaiwanICDF are in compliance with “Standard for Non-profit Organizations Exempt from Income Tax”. Accordingly, TaiwanICDF is exempt from income tax. The income tax returns through 2017 have been assessed and approved by the Tax Authority.