Trinidad Cement : 31 Mar 2022 – Trinidad Cement Limited – Consolidated Audited Financial Statements for the year ended December 31, 2021 (FULL)

TRINIDAD CEMENT LIMITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in Trinidad and Tobago Dollars)

June 30, 2019

(Expressed in Trinidad and Tobago Dollars)

TRINIDAD CEMENT LIMITED Consolidated Financial Statements

INDEX

Statement of Management's Responsibilities ............................................................................................................. .................................................. 1

Independent Auditors' Report ................................................................................................................................................ ....................................... 2-8

Consolidated Income Statement ........................................................................................................................................................ ........................... 9

Consolidated Statement of Comprehensive Income .................................................................................................................................................... . 10

Consolidated Statement of Financial Position .............................................................................................................................................................. 11

Consolidated Statement of Cash Flows ........................................................................................................................ ................................................. 12

Consolidated Statement of Changes in Shareholders' Equity ....................................................................................................................... ................ 13

Notes to the Consolidated Financial Statements ................................................................................................................... ........................................ 14-62

TRINIDAD CEMENT LIMITED

Statement of Management's Responsibilities Trinidad Cement Limited

Management is responsible for the following:

• • Preparing and fairly presenting the accompanying consolidated financial statements of Trinidad Cement Limited ("the Company") and its subsidiaries (collectively, "the Group") which comprise the consolidated statement of financial position as at December 31, 2021, the consolidated income statement, consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information;

• • Ensuring that the Group keeps proper accounting records;

• • Selecting appropriate accounting policies and applying them in a consistent manner;

• • Implementing, monitoring and evaluating the system of internal control that assures security of the Group's assets, detection/prevention of fraud and the achievement of the Group's operational efficiencies;

• • Ensuring that the system of internal control operated effectively during the reporting period;

• • Producing reliable financial reporting that complies with laws and regulations, including the Companies Act; and

• • Using reasonable and prudent judgement in the determination of estimates.

In preparing these consolidated financial statements, management utilised the International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances.

Nothing has come to the attention of management to indicate that the Group will not remain a going concern for the next twelve months from the reporting date, or up to the date the accompanying consolidated financial statements have been authorised for issue, if later.

Management affirms that it has carried out its responsibilities as outlined above.

Francisco Aguilera Mendoza Managing Director

Edgar Campos Piedra Group Finance Manager

March 25, 2022

March 25, 2022

1

KPMG

Chartered Accountants Savannah East

11 Queen's Park East P.O. Box 1328

Port of Spain

Trinidad and Tobago, W.I.

Tel: (868) 612-KPMG Email:[e-mail]:https://home.kpmg/tt

Independent Auditors' Report

To the Shareholders of Trinidad Cement Limited

Opinion

We have audited the consolidated financial statements of Trinidad Cement Limited and its subsidiaries (collectively, "the Group"), which comprise the consolidated statement of financial position as at December 31, 2021, and the statements of consolidated income statement, comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRS").

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 Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Trinidad and Tobago, and we have fulfilled our other ethical responsibilities in accordance with these requirements and with the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

KPMG, a Trinidad and Tobago partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Key Audit Matters (continued)

Revenue recognition

Key audit matter

How our audit addressed the key audit matter

Refer to Notes 2.17 and 3. The main activities of the Group are the manufacture and sale of cement, concrete and aggregates. The Group recognised revenue from the sale of cement, concrete and aggregates from a combination of domestic and foreign sales. Revenue is a key performance indicator for the Group. Revenue is recognised when the risk and rewards of the underlying products have been transferred to the customer. There is a risk of material misstatement of the consolidated financial statements occurring as the end of the year, as transactions can be recorded to inflate sales reported.

Our audit procedures over revenue recognition included: • Obtaining an understanding of and assessing the design, implementation and operating effectiveness of management's key internal controls in relation to revenue recognition. • Testing a sample of revenue transactions occurring throughout the year and close to the year end. We inspected invoices and delivery notes to identify the date that risk and reward of ownership of the sold items was transferred to the customer to determine whether the sale was recorded in the appropriate period. • Inspecting a sample of credit notes issued after year end and assessing whether the underlying reason for the issue of the credit note required the reversal of a recorded sale. • Inspecting the underlying documentation for manual journal entries entered in the revenue accounts in the general ledger, during the year and subsequent to the reporting date, which were considered to be material or met other specific risk-based criteria. • Confirmation transactions customers. of revenue with specific No material exceptions were noted as part of our testing.

the year and close to the year end.