Directors Report ... The Directors of the Copyright Music Organisation of Trinidad and Tobago are pleased to submit their Annual Report and Accounts in respect of the year ended December 31, 2001.

Principal Activity

The principal activity of the Organisation is the licensing, collection and distribution of royalties and licence fees for the rights vested in it by its members and affiliated collecting societies

Business Review

The statement of Revenue and Expenditure for 2001 is set out in the Accounts on page 14 hereunder.

Total Income from all sources amounted to $5,467,738, which compares with the sum of $5,488,456 realized in 2000. Income from Performing Rights amounted to $5,365,927 or 2.2% less than the $5,488,456 realized from Performing Rights in 2000. Alternatively, Income from Recording Rights in 2001 amounted to $101,811, or nearly twice the Income from Recording Rights collected in 2000.

On the downside, Administrative Expenses as a percentage of Revenue increased from 34% in 2000 to 44% in 2001. The major contributors to this increase were Collection Costs, which rose from $170,148 in 2000 to $254,860; Professional Services, principally Legal Expenses, which increased from $155,053 to $306,092, as the Organisation sought to recover royalties from defaulting licensees; and Salaries and Staff Benefits from $680,816 to $767,685. Further explanations of these and other variances are contained in the Notes to the Accounts.

The net surplus from Performing and Recording Rights available for distribution in the year under review amounted to $3,011,525. Distribution to local right owners amounted to $1,011,135 and $1,911,390 to foreign right owners.

Despite the reversals outlined above, the Board is satisfied that the overall performance of the Organisation and its year-end financial position are once again satisfactory. In addition, with a competent, well-trained and capable staff and a growing membership, the Directors are convinced that COTT will return to a more favourable level of financial performance in 2002.

Accounts

• Transfers to the Reserve Fund are noted on page 19 of the accounts.
  
   

• The movement in Fixed Assets during the year is shown in Note 6 to the accounts and listed on page 18.

Directors

Ann Marie Chadee

Paul Trotman

The Board of Directors for the year 2001 comprised:

Writers

Ann Marie Chadee

Christophe Grant - Secretary

Rooplal Girdharie

Seadly Joseph

Colin Lucas

Paul Trotman

Publishers

Earl Crosby - E & E Publishing

Kenny Phillips - KMP Music Publishing - Vice President

PRS

Allison Demas - President

Richard de Lima - retired August 2001

Diana Derrick - appointed by PRS with effect from September 2001

External

Sonja Dumas,

Terence O'Neil Lewis

Auditors

A resolution to re-appoint Messrs Pannell Kerr Foster as Auditors for the financial year ending December 31, 2002 will be proposed at the Annual Meeting in 2002.

By Order of the Board
Sonja Dumas
Secretary