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Annual Report 2019

World-class building materials

ANNUAL REPORT 2019

BUILDING A BRIGHTER FUTURE 1

Design and Layout: Paria Publishing Co. Ltd.

Contents

Strategic Framework 2Corporate Information 3Board of Directors 4Directors’ Report 5Principal Officers 7New Appointments 8Chairman’s Report 9General Manager’s Report & Management Discussion 2019 11Consolidated Financial Statements For The Year Ended December 31, 2019 20Statement of Management Responsibilities 21Independent Auditors’ Report 22Consolidated Income Statement 30Consolidated Statement of Comprehensive Income 31Consolidated Statement of Financial Position 32Consolidated Statement of Cash Flows 34Consolidated Statement of Changes in Stockholders’ Equity 36Notes to the Consolidated Financial Statements 37 - 80

2 WORLD-CLASS BUILDING MATERIALS

ANNUAL REPORT 2019

Strategic Framework

Strategic Priorities

Business Model

Vision

Value

Mission

Building a Brighter Future

To create sustainable value by providing industry-leading construction products and solutions to satisfy the needs of our customers in the Caribbean

We leverage our Group’s expertise and footprint to establish best practices and common processes, in order to operate with agility and effectiveness to ultimately create value for all of our stakeholders.

Health & Safety Customer Centricity

Innovation Sustainability

EBITDA Growth towards Investment Grade

Safety Customers

Excellence Leadership

Integrity

ANNUAL REPORT 2019


Corporate Information

Company Secretary:Ms. Khelsy Maharaj

Registered Office:Tumpuna Road, GuanapoArima, Trinidad, W.I.Tel: (868) 225 - 8254Fax: (868) 643 - 3209Email: [email protected]

Registrar:Trinidad & Tobago Central Depository Limited10th Floor, Nicholas Tower63 - 65 Independence SquarePort of Spain, Trinidad, W.I.

Principal Bankers:First Citizens Bank Limited Cor. Hollis Avenue & Woodford StreetArima, Trinidad, W.I.

Auditors:KPMGSavannah East11 Queen’s Park EastPort of Spain, Trinidad, W.I.

Attorneys - At - Law:Girwar & DeonarineHarris Court, 17 - 19 Court StreetSan Fernando, Trinidad, W.I

J.D. Sellier & Company129 - 131 Abercromby StreetPort of Spain, Trinidad, W.I.

Byrne & Byrne84 Abercromby StreetPort of Spain, Trinidad, W.I.

Jason K. MootooBarrister & Attorney - at - Law77 Abercromby StreetPort of Spain, Trinidad, W.I.

Mr. Derek Ali Attorney - at - Law12 Fitt Street, WoodbrookPort of Spain, Trinidad, W.I.

MG Daly and Partners115A Abercromby StreetPort of Spain, Trinidad, W.I.

Johnson, Camacho & Singh5th Floor, Newtown Centre30 - 36 Maraval Road, NewtownPort of Spain, Trinidad, W.I.

M. Hamel - Smith & CompanyAlbion StreetPort of Spain, Trinidad, W.I.

Hobsons Attorneys - at - Law & Notaries Public25 Stanmore Ave. Port of Spain, Trinidad, W.I.


ANNUAL REPORT 2019

Board of Directors

Mr. Michael Glenn Hamel-Smith Mr. José Luis Seijo González - Chairman - Director

Mr. Guillermo Rojo De Diego Mr. Anton Gopaulsingh- Director - Director

ANNUAL REPORT 2019


The Directors present their Report to the Members together with the Financial Statements for the year ended December 31, 2019.

Financial Results TT$’000

Turnover 70,471Net Loss for the Year (18,294)Translation Difference NilDividends NilRetained Earnings Carried Forward 30,524

Directors’ Interests Ordinary Shares

Michael Glenn Hamel-Smith - Chairman NilJosé Luis Seijo González NilAnton Gopaulsingh NilGuillermo Rojo de Diego Nil

Senior Officers’ Interests Ordinary Shares

Guillermo Rojo De Diego - General Manager, Trinidad Cement Limited NilCindy Siewbally - Human Resource Manager NilMalcolm Sooknanan - Finance Manager NilAfzal Ali - Marketing Manager NilAnthony Ferguson - Health, Safety, Security & Environment Coordinator NilPedro Arjona Conde - Senior Procurement Officer NilAvaleen Mooloo - Readymix Coordinator Nil

Substantial InterestsA substantial interest means a holding of 5% or more of the issued share capital of the Company.

Directors’ Report

Shareholding Distribution % Distribution

Trinidad Cement Limited - 11,727,712 Ordinary Shares 97.73%

Other Shareholders - 272,288 Ordinary Shares 2.27%


ANNUAL REPORT 2019

ContractsNo Director of the Company had any material interest in any contract relating to the business of the Company during or at the end of the financial year.

DividendsGiven the existing challenges, your Board of Directors does not consider it prudent to approve a dividend for 2019.

DirectorsIn accordance with Clause 4.4.2 of By-Laws of the Company, Mr. Guillermo Rojo de Diego will hold office until the next general meeting of the Company, when he will offer himself for re-election.

AuditorsThe Auditors, KPMG, retire and being eligible, offer themselves for re-appointment.

By Order of the Board

Khelsy MaharajCompany Secretary

Directors’ Report (continued)

ANNUAL REPORT 2019


Principal Officers

Mr. Guillermo Rojo De Diego - General Manager, Trinidad Cement Limited * Mr. Malcolm Sooknanan - Finance ManagerMr. Afzal Ali - Marketing ManagerMs. Cindy Siewbally - Human Resource Manager

Ms. Avaleen Mooloo - Readymix CoordinatorMr. Pedro Arjona Conde - Senior Procurement OfficerMs. Liselle-Joy Garcia - Quarry CoordinatorMr. Anthony Ferguson - Health, Safety, Security & Environment Coordinator

* Mr. Guillermo Rojo De Diego, in addition to his substantive duties as the General Manager of TCL, oversees the operations of RML.


ANNUAL REPORT 2019

Guillermo Rojo De Diego - Director Mr. Guillermo Rojo De Diego was appointed a Director of Readymix (West Indies) Limited on October 31, 2019. He is also the General Manager of Trinidad Cement Limited and oversees the operations of Readymix (West Indies) Limited. He is an experienced Country Manager with over 20 years’ experience in the building materials industry.Prior to his role of General Manager, Mr. Rojo de Diego held the position of Country Manager at CEMEX, Guatemala for a period of 4 years. He developed his career, assuming increasing roles of responsibility in different areas, including commercial, strategic planning and operations before going into general management responsibilities in all main business lines in 5 countries in Europe, Africa and Latin America.He holds a B.Sc. in Geological Sciences, specialising in Mineral Resources from the Universidad Complutense de Madrid, Spain and an MBA from INSEAD MBA (France).

Khelsy A. Maharaj, Company SecretaryMs. Khelsy Maharaj was appointed Company Secretary for Readymix (West Indies) Limited in October 2019. She is the Group Legal Advisor at Trinidad Cement Limited and has been practising law for eight years. Ms. Maharaj obtained her Bachelor of Laws Degree (Upper Seconds Division) from the University of the West Indies; Legal Education Certificate from the Hugh Wooding Law School and Master of Laws (Corporate and Commercial) from the University of the West Indies. She was admitted to practice law in the Republic of Trinidad and Tobago in the year 2012.Her years of legal experience are entrenched in the Corporate and Commercial Law arena, with expertise in corporate and government financing transactions, project development, commercial negotiations, complex loan arrangements, shareholder agreements and real estate. She has worked in various sectors, rendering legal advice on a broad range of commercial issues, including employment and pensions, issues arising in insurance and commercial contracts; and issues arising in the leasing and ownership of property.Ms. Maharaj is a member of the Law Association of Trinidad and Tobago and its Corporate, Commercial and Conveyancing Committee and Insurance Committee. She is also a member of the Naparima Girls’ High School (NGHS) Alumnae.Being a strong supporter of educational growth and development, she has held the post of Consultant at the University of the West Indies, St. Augustine Campus since the year 2015, tutoring Corporate and Commercial Law courses, such as Company Law, Real Property Law, Contract Law and Equitable Remedies to Undergraduate Law Students of the Faculty of Law.

New Appointments

ANNUAL REPORT 2019


Chairman’s Report

The year 2019 marked the culmination of a major portion of the restructuring of Readymix (West Indies) Limited (RML), which began in 2017. This programme involved all areas of the company, including policies, procedures, investments in plant and equipment, manpower levels and health and safety systems. We believe that most of the restructuring is behind us and the company is now well placed to capitalise on any improvements in the economy and the construction sector.Another significant milestone was the progress made regarding our strategic participation in the development and sale of housing units, with the completion and sale of a number of these units reflected in our 2019 results. One of the Board’s key priorities is the health, safety and well-being of our most valuable asset - our people, and so we are pleased to report that the trend of safe operations continued in 2019, with no Lost Time Incidents reported for two consecutive years. This is a strong demonstration of an ongoing commitment to our “ZERO-4-Life” programme, which places emphasis on the safety, health and well-being of our employees and contractors. Our safety focus was also extended beyond this stakeholder group to nearby communities where school children were sensitised to correct road safety practices under the company’s ‘Vulnerable Road Users’ programme. In addition, we are encouraged by a significant improvement in our current quarry reserves position established by conducting geographical surveys. Notwithstanding these positive developments, conditions within the construction sector continued to be very challenging in 2019 with persistently low levels of economic activity in a highly-competitive market. These conditions have had a significant negative impact on the operations and results of RML, but have been partially mitigated by the restructuring and other measures implemented. Revenue for the year 2019 declined by $12.9 million (15%) compared to 2018, mainly due to lower sales volumes and depressed market prices. However, despite this large drop in revenue,

Michael Glenn Hamel-SmithChairman


ANNUAL REPORT 2019

RML generated a gross profit of $9.7 million (2018 - $14.6 million), due largely to the major restructuring and cost-saving measures adopted by the company as well as revenue derived from the housing initiative. Net loss for the year was $18.3 million (2018 - $12.9 million) after charging $11.6 million in restructuring costs (2018 - $14.6 million). Cash flow provided by operating activities improved by $1.8 million compared to the previous year, while the company continued to invest in property, plant and equipment to the tune of $4.7 million (2018 - $8.3 million).From an operational perspective, several key successes were also realised including a major upgrade of the Point Lisas batch plant, effectively boosting its HSE performance and production capability. Lab facilities were upgraded in both concrete and aggregate to facilitate quality control including that of our Value Added Products (VAPs). We successfully launched our first VAP to market, Eco Evolution, which is self-compacting concrete. Optimisation of our mining operations is also bearing fruit and a reforestation and rehabilitation project will ensure that the areas exploited are properly reclaimed and regenerated. The ongoing challenges affecting the local economy, and by extension the construction sector, are likely to continue into the immediate future, however we continue to build on the pillars of health & safety and customer centricity, delivering positive results in both areas. We remain focused on providing customers with affordable, high-quality concrete solutions and technology, distinguished by our reputable service, and on gaining inroads into the supply of aggregates to industrial customers. We are determined to stay committed to our long-term transformation programme which is designed to improve productivity, raise competitiveness and enhance sustainability, but remain fully aware of the impact being caused by COVID-19 and the need to quickly adapt our plans while we focus on what we can control to offset expected economic volatility in the short to medium term.

AcknowledgementsDuring the year, Messrs. Jinda Maharaj and Luis Ali Moya resigned from the Board of RML and Mr. Nigel Tozer resigned as the General Manager. I would like to extend my sincere appreciation to them for their invaluable contributions, along with best wishes for success in all future endeavours. To our valued stakeholders, including all the committed, loyal and hardworking employees of RML, I extend my heartfelt gratitude. Finally, I wish to thank the members of the Board of Directors for their contributions in working to ensure that RML continuously creates value for its shareholders.

Michael Glenn Hamel-SmithChairman

Chairman’s Report (continued)

ANNUAL REPORT 2019


Management’s Report & Discussion 2019

The External Environment

Global and Regional View:After almost two years of economic expansion, the global economy decelerated in the latter part of 2018. Several factors contributed to this with the most noteworthy being the trade tensions between China and the United States; erosion of business confidence; a tightening of financial conditions; and heightened policy uncertainty across numerous economies. Against this backdrop, International Monetary Fund (IMF) estimates for global growth were forecasted at 3.2 percent for 2019 assuming stabilisation in currently stressed emerging markets and developing economies. However, the World Bank downgraded its forecasts for global growth to 2.6 percent in 2019. These estimates are predicated on continued benign global financing conditions and modest recovery in emerging and developing economies. World inflation remained subdued as a temporary waiver of US sanctions on Iranian oil exports coupled with record-high US crude production depressed prices toward the end of 2018.Growth forecasts for Latin America and the Caribbean were downgraded to 0.6 percent in 2019, with plans of recovering to 2.3 percent in 2020; underpinned by divergent growth outcomes across the region.

Guillermo Rojo De DiegoGeneral Manager, Trinidad Cement Limited


ANNUAL REPORT 2019

Local Construction Landscape:After three successive years of recession, Trinidad and Tobago’s growth was estimated to have remained flat during 2019, according to IMF data.In 2019, the construction industry declined by 8.2 percent when compared to 2018 according to a review of the economy by the Ministry of Finance.Retail sales by construction and hardware businesses contracted by 3.9 percent. Other indications of lower construction activity during the quarter, included the reductions in the domestic output of various building aggregates and construction material, namely, clay bricks, blocks and tiles; concrete products; metal building material; iron, steel and related products; and glass and plastic products for construction. Although the local construction sector experienced some challenges, it benefited from the commencement of construction of the new Sangre Grande Hospital and the Central Block of the Port-of-Spain General Hospital earlier in the year. Ongoing construction projects during 2019 included the construction of: houses through Government’s accelerated housing programme and public private partnership arrangements; the Curepe Interchange; continuation of the highway extension to Point Fortin; road rehabilitation and coastal protection works; completion of the President’s House and the Moruga Agro-Processing and Light Industrial Park; the Arima and Point Fortin hospitals; and the building structure at the Tamana InTech Park for the Alutech Research and Development Facility. The other major construction projects that impacted the sector in 2019 included: the construction of the Phoenix Park Industrial Estate in Couva, a Regional Corporation Administrative Complex in Diego Martin and the upgrade of the terminal building at the A.N.R. Robinson International Airport in Tobago.

COVID-19 and our ActionsThe COVID-19 pandemic is undoubtedly one of the greatest challenges of our time. At the CEMEX TCL Group, we are acting decisively to properly analyse, develop, and execute measures to safeguard our company and our people, as well as our customers, suppliers and communities. Our operations are facing complications due to strict authority measures on commercial and industrial activities; however, we are following government regulations while minimising as much as possible, the impact on our business and our ability to serve our customers. Our action plans are, therefore, focused on maximising the protection of our employees while fostering operational resilience. In this regard, we have implemented multiple protocols and other measures, including:• Building inventories and sourcing for critical components. • Focusing only on essential activities across our businesses to safeguard cash-flows. • Developing and considering different contingency plans. • Enhancing our communication with employees and all relevant stakeholders. • Reinforcing physical distancing measures and personal hygiene. • Promoting remote work where possible according to job responsibilities. • Thermometer testing at access points.• Increasing cleaning procedures at all sites. • Keeping main doors opened.

Management’s Report & Discussion 2019 (continued)

ANNUAL REPORT 2019


Local Rapid Response Teams (RRTs) also remain activated throughout our operations as we continue to implement preventive measures to reduce the risks to the CEMEX TCL Group community.

Health, Safety and Environment (HSE)Health, Safety & the Environment remains a top priority. We are happy to report another year of safe operations with no Lost Time Incidents (LTIs) recorded at any of RML’s facilities. Here are some of the many initiatives undertaken during 2019 in support of our commitment:

Launch of the VRU Safety Campaign

RML launched its Vulnerable Road Users (VRU) safety campaign with the repainting of two concrete mixers, which convey the slogan: “Don’t Chance it…. Look Out Before You Step Out!” The campaign is a road safety awareness initiative which targets vulnerable groups, namely the elderly, cyclists/motor cyclists and children. The programme was successfully rolled out at the La Horquetta North Government Primary School and continues to be shared with primary schools throughout the country.

Contracted Drivers’ TrainingTo reduce the number of vehicle incidents involving our contracted drivers, the “Driving School” programme, which was developed by CEMEX was rolled out. This training covered areas such as defensive driving, fatigue, vehicle checks, hazard recognition, road conditions and procedures to be followed during and after an incident. Also included in the training of Contractor Concrete Pump Operators/Drivers was a component dealing with working around energised electricity lines and this was facilitated by T&TEC’s Safety Department.

Aggregate Haulage Truck InspectionsAggregate Haulage Truck Inspections were coordinated by RML’s lead mechanic at its Guanapo and Melajo facilities. Trucks were subjected to a full inspection with identified defects documented and sent to the relevant contractor for rectification. This initiative was seen as critical to reducing the number of defective trucks working within our operations and on the nation’s roadways.


ANNUAL REPORT 2019

Launch of the Breathalyser CampaignRML launched its Breathalyser campaign to ensure that all persons entering the facilities are compliant with our ‘Zero Tolerance’ policy regarding alcohol use.

Know your Numbers CampaignAs part of the CEMEX Health Essentials, the Know Your Numbers campaign was introduced where all employees and contractors were evaluated by TCL’s Nurse on a monthly basis and a record of their blood pressure, blood sugar and cholesterol levels taken and monitored during the year. In addition to these tests, lung function tests, and eye tests were conducted. RML received

a Reward and Recognition Award for the Most Improved Business Unit (TCL Trinidad) in appreciation of the company’s efforts in promoting and maintaining healthy lifestyles among employees.

First Aid Training

Employees from Guanapo and Melajo benefited from First Aid training with an emphasis on the use of Defibrillators. Two Defibrillator units were procured and placed at both facilities in the event that anyone suffers cardiac arrest, a trained First Aider will be able to provide some measure of relief until medical attention could be sought. In addition to the First Aid training, two employees from the Melajo Quarry attended ambulance driving training in preparation for the acquisition of an ambulance by the Melajo Quarry in 2020.

Point Lisas Upgrade ProjectPhase 1 of the Traffic Management plan was completed at the Point Lisas Batch Plant. A new car park for employees, contractors and visitors; a walkway to and from the car park, and a new wash out stand for the concrete mixer drivers were all achieved as part of the plan.

Lung function testing.



ANNUAL REPORT 2019


As a result of management’s commitment to continuous improvement in all activities revolving around Health, Safety and the Environment, RML as at December 31, 2019 has worked a total of 1219 days without a Lost Time Incident (LTI). This is the third year in succession that RML has completed operations without an LTI. We will continue to work assiduously to maintain our “ZERO-4-Life” goal, guided by CEMEX, which has been instrumental in providing world-class systems and support.RML continues to be fully compliant with all the necessary requirements for its operations and maintains a close and professional relationship with all statutory and regulatory agencies.

Financial Review and AnalysisConditions within the construction sector continued to be very challenging in 2019 with persistently low levels of economic activity in a highly competitive market. Although various strategies and initiatives were implemented to improve revenue, concrete and aggregate sales volume declined by 24% and 19% respectively compared to 2018, as well as downward pressure on selling prices. Because of this, RML recorded $70.5 million in third party revenue, a decline of $12.9 million or 15 percent (15%) when compared to the same period in 2018.Notwithstanding this significant decline in revenue and reduced margins, RML achieved a positive gross profit of $9.7 million (2018: $14.6 million), which was due in part to the major restructuring and cost saving measures adopted by the company. In the last quarter of 2019, the company began to realise the benefits of a key strategic initiative aimed at further diversification of its revenue base through participation in the development and sale of housing units to augment concrete and aggregate sales. That contributed approximately four percent (4%) of total revenue for 2019.As a result of restructuring and cost-saving initiatives, there were significant savings in operating costs and other expenses. However, despite these savings, the company incurred a loss after taxation of $18.3 million (2018 - $12.9 million) for the year, after charging restructuring costs of $11.6 million (2018 $14.6 million).



ANNUAL REPORT 2019

Liquidity & Financial PositionDespite the decline in revenue and restructuring costs, cash flow provided by operating activities was $5.9 million, compared with $4.1 million in the previous year. Investment in property, plant and equipment was $4.7 million (2018 - $8.3 million), while settlement of pension liabilities amounted to $1.4 million (2018 - $8.0 million). Additionally, the company reduced its interest-bearing deposit with its immediate parent company by $9.5 million. Group net cash increased by $0.3 million (2018: decrease $3.4 million), resulting in a cash balance at year-end of $2.9M (2018:- $2.2 million).

MarketingIn the Ready-mix concrete sector in Trinidad and Tobago, activity in construction remained flat in 2019. Concrete sales volumes at RML declined by 24% compared to 2018, however the company was able to maintain a leadership position in this sector, remaining focused on providing its customers with affordable high-quality concrete solutions and technology together with its reputable level of service. Third-party aggregate sales increased in 2019 due to product and plant availability and increased road work activity. It is expected that for 2020, the company will continue to grow in this sector as demand further increases in an election year for road paving projects. The company is focused on gaining inroads into the supply of aggregates to industrial customers.

OperationsIn 2019, 65% of CAPEX was executed for the concrete operations mainly at the Point Lisas batch plant and the health and safety focus at the Guanapo batch plant. These works have boosted the HSE performance and production capability of the plant. In 2019, lab facilities were both upgraded in concrete and aggregate to aid better control for our value added products, (VAPS) initiatives. In the fourth quarter, we successfully launched to market the first VAP, Eco Evolution, which is self-compacting concrete. The key performing indicator for VAPS is 1% of total concrete sales.

The Readymix quarries, which include Melajo Quarry and Bermudez Quarry continue to carry out sand and gravel extraction methods guided by CEMEX’s experts. RML’s goal continues to be optimisation of its mining operations to achieve production and quality targets. RML’s “Pit-Run exploration” project is ongoing in its bid to estimate the reserves in virgin territory. A reforestation and rehabilitation project will be run concurrently with this initiative, ensuring that the areas exploited are properly reclaimed and regenerated. HSE, Operations and Quarry Improvements are shown on the following page.

Oil Room improvements


ANNUAL REPORT 2019


Traffic management completedPedestrian walkway to #1 plant

Ground storage for material Ground storage for material at Pt. Lisas

Installation of radial conveyor Silo installation



ANNUAL REPORT 2019

Human CapitalThe company continued its efforts to improve efficiency and reduce cost of operations to levels, which are more sustainable in a continuously increasing competitive environment. In 2019, there was a deliberate drive to objectively gain a deeper understanding of the reasons which might be contributing to a perceived decrease in employee morale with the launch of a group-wide morale survey from which a road map was developed to re-establish employees’ faith and confidence in the company. In-house training and development were undertaken to ensure that our employees have the tools and resources needed to perform efficiently and to transition to leadership roles. Human Resources has been doing its part in developing our talent to help achieve the company’s strategic objectives and internalise its core values by bridging performance gaps and increasing staff morale.

Grow the Pie InitiativeSustainable Road SolutionsIn Trinidad, continuous lobbying of key government agencies has been the primary step. With the closure of state-owned Petrotrin in Q4 of 2018, the supply of refinery bitumen for road paving has been deeply impacted and the respective Common External Tariffs (CET) has since been reduced to facilitate imports. The opportunity remains strong for conversion from asphalt to concrete for road construction and, with increased lobbying and promotion of the technology, our target of capturing at least 5% of all public roads requiring construction/rehabilitation remains the benchmark.

HousingHousing continues to be a major socio-economic issue for the Caribbean. Most countries have indicated that affordable housing is an ongoing challenge especially for people in the lower income tier.In Trinidad, discussions with the Ministry of Housing (HDC) have been ongoing with the objective of filling the gaps in low-cost housing. The TCL Group has been working to provide support to assigned contractors through bundled packages for housing.

Phase one of the East Lake housing project being built on RML’s land at Guanapo in collaboration with Home Solutions Limited is almost 90% completed. It is primarily aimed at providing middle income homes, a segment identified by the Housing Ministry to be in high demand. Construction of the development also utilises concrete in ancillary work such as pavements, sidewalks, car parks and drainage. We will continue to benefit from this initiative in 2020.

East Lake Development


ANNUAL REPORT 2019


Looking AheadDespite the challenges being experienced in the concrete and aggregate sectors, RML continues to invest both time and resources on health and safety improvements, as well as the implementation of strategies to improve operational efficiency and secure the long-term viability of the company. We continue to fully integrate with the systems, policies and best practices of our ultimate parent company - CEMEX S.A.B. de C.V. and to also leverage on the tremendous benefits that come with this global industry leader. Our strategic partnership for the development and sale of housing units is progressing and we expect to continue to see rewards in 2020. We continue to strengthen our strategic priorities through Innovation (VAPS) and EBITDA Growth. These areas are of main concern along with a continued focus on Health and Safety, Customer Centricity, Competitiveness and Sustainability.We are determined to stay committed to our long-term transformation programme designed to improve productivity, raise competitiveness and enhance sustainability, while being fully aware of the impact being caused by COVID-19 and the need to quickly adapt our plans and focus, on what we can control to offset expected economic volatility in the short to medium term.

Guillermo Rojo De DiegoGeneral Manager, Trinidad Cement Limited

East Lake concrete road Foundation for multi-storey apartments


Consolidated Financial StatementsFor The Year Ended December 31, 2019

(Expressed in Trinidad and Tobago Dollars)

ANNUAL REPORT 2019


Readymix (West Indies) Limited

Management is responsible for the following:• Preparing and fairly presenting the accompanying consolidated financial statements of

Readymix (West Indies) Limited and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as at December 31, 2019, the consolidated income statement and consolidated statements of comprehensive income, changes in stockholders’ 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 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 financial statements have been authorised for issue, if later.Management affirms that it has carried out its responsibilities as outlined above.

Edgar Campos Piedra Malcolm SooknananGroup Finance Manager Finance ManagerDate: March 20, 2020 Date: March 20, 2020

Statement of Management Responsibilities

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2KPMG, a Trinidad and Tobago partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Auditors’ Report To the Shareholders of Readymix (West Indies) Limited Opinion

We have audited the consolidated financial statements of Readymix (West Indies) Limited and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2019, the consolidated income statement and, consolidated statements of comprehensive income, changes in stockholders’ 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, 2019 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' Code of Ethics for Professional Accountants (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 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 judgment, 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 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: [email protected] Web: https://home.kpmg/tt

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Key Audit Matters (continued)

Allowance for impairment of trade accounts receivable See Note 10 to the consolidated financial statements and accounting policy notes 2.3 (iii) The key audit matter

How the matter was addressed in our audit

Gross trade accounts receivable amounted to $15.8 million (net - $4.3 million) and were significant to the Group. The determination of the allowance for impairment of trade accounts receivable requires management judgement in computing the weight-average loss rate related to each risk category identified in the Group’s Expected Credit Loss model.

Our audit procedures included:

• Using our specialists in reviewing the Expected Credit Loss model, including methodology, underlying assumptions and data inputs; and

• Comparing the data inputs to internal reports and third-party sources.

In addition, we considered the adequacy of the Group’s disclosures in respect of trade accounts receivable.

Impairment testing of property, plant and equipment See accounting policy notes 2.3 (iv) The key audit matter How the matter was addressed in our

audit

Management’s impairment tests on assets involve significant estimation and the application of a high level of judgment relative to key assumptions such as the applicable discount rate and future cash-flows. We consider this a key audit matter because it involves complex and subjective judgements by the Group regarding long-term sales growth, costs and projected gross margins as well as discount rates used to discount future cash flows and expected market share.

Our audit procedures included reviewing the Group’s methodology and assumptions used in preparing discounted cash flow models and the determination of Cash Generating Unit (CGU), in accordance with the applicable accounting standards. We assessed the appropriateness of the disclosures in the notes to the consolidated financial statements, with reference to applicable accounting standards.

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Revenue recognition See accounting policy note 2.14 The key audit matter How the matter was addressed in our

audit Revenue is recognised when the risks and rewards of saleable inventory have been transferred to the customer. The Group operates in an industry in which sales growth is constrained due to reduced spending on infrastructure by the Government of Trinidad and Tobago, lower household incomes and increased competition in the market. Furthermore, given an environment in which maintaining market share is challenging, we considered there to be a risk of misstatement of the consolidated financial statements related to the recognition of sales transactions occurring close to the reporting date in the wrong financial period (i.e. before the risks and rewards have been transferred.) We considered the contractual arrangements with respect to a new business activity and related revenue recognition principles to be complex.

Our audit procedures included review of the Group’s manual and automated controls focused on controls around the accurate recording of sales transactions. Our audit work in relation to the Group’s manual journal entries included the review of: • Credit journal entries posted to revenue

accounts; • Journals related to adjustments,

corrections and amendments; • Journals with rounded, high value

balances; and • Journals made by non-authorised

personnel Our audit procedures in relation to the sales cut-off included reviewing the Group’s process around revenue recognition. We reviewed the contractual arrangements related to the Group’s new business venture. Our substantive testing focused on sales transactions on either side of the reporting date, obtaining evidence to support the appropriate timing of revenue recognition, based on terms and conditions set out in sales contracts and delivery documents or system generated reports. We also tested credit notes issued after the reporting date to assess whether the related revenue was recognised in the correct accounting period.

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Deferred tax asset See Note 19.2 to the financial statements and accounting policy note 2.3 (ii) The key audit matter How the matter was addressed in our audit The recoverability of recognised deferred tax assets is in part dependent on the Group’s ability to generate future taxable profits sufficient to utilise deductible temporary differences and tax losses. We have determined this to be a key audit matter, due to the inherent uncertainty in forecasting the amount and timing of future taxable profits for the reversal of temporary differences.

Our audit procedures in this area included:

• using our own tax specialists to evaluate the tax strategies that the Group expects will enable the successful recovery of the recognised deferred tax assets;

• comparing tax losses to tax statements;

• assessing the accuracy of forecast future taxable profits by evaluating historical forecasting accuracy and comparing the assumptions, such as projected growth rates, with our own expectations of those assumptions derived from our knowledge of the industry and our understanding obtained during our audit, including where applicable their consistency with business plans and forecasts used for impairment testing purposes.

Valuation of employee benefits obligation See Note 18 to the financial statements and accounting policy note 2.3 (v) The key audit matter How the matter was addressed in our audit The Group operates defined benefit pension plans and postretirement medical benefit schemes. Significant assumptions are used in estimating the Group's obligation for these employee benefits. The estimation process poses a significant risk of misstatement, as small variances in the assumptions can have a material financial impact on the Group's financial statements. The key assumptions involved in calculating the obligation are the discount, inflation, salary increase and future growth in medical rates.

Our audit procedures included: • Evaluating the competency and objectivity

of the appointed Actuary.

• Determining that the actuarial valuation was performed using the projected unit credit method as required under International Accounting Standard 19, Employee Benefits

• Engaging a KPMG actuarial valuation specialist to assess the assumptions used and compare these, to industry norms.

26

6


Valuation of employee benefits obligation (continued) See Note 18 to the financial statements and accounting policy note 2.3 (v) The key audit matter


The Group appointed an external actuarial expert to guide the determination of the assumptions and compute the obligation.

The use of significant assumptions increases the risk that management's estimate can be materially misstated which requires special audit consideration.

• Checking that the accounting policy and disclosures were in accordance with the accounting standards.

Going concern The key audit matter


The Group’s consolidated financial statements have been prepared using the going concern basis of accounting. The use of this basis of accounting is appropriate unless management either intends to liquidate the Group or to cease operations or, has no realistic alternative but to do so. The Group supported the preparation of the consolidated financial statements on a going concern basis with 5-year income and cost projections. This computation involved the use of input data and the application of significant assumptions. Management prepared the income and cost projections under various scenarios in order to assess the volatility of the results to variability of income flows.

Our audit procedures included:

• evaluating the 5-year income and cost projections by assessing the volatility of the projections to variability in income caused by different product mixes and varying growth scenarios

• Assessing the significant costs projections by comparing them to related activities during the year and decisions made by management that impact the planned expenditure for the next five years.

27

7

Other Information

Management is responsible for the other information. Other information consists of the information included in the Group’s 2019 Annual Report, but does not include the consolidated financial statements and our auditors’ report thereon. The Group’s 2019 Annual Report is expected to be made available to us after the date of this auditors’ report. Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so. Those charged with Governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated financial statements.

28

8

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements (continued) As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated 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 Group’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 Group’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 consolidated 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 Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial

statements, including the disclosures, and whether the consolidated 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 Group 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.

29

9

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements (continued) We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditors’ report is Robert Alleyne.

Chartered Accountants March 20, 2020 Port of Spain Trinidad, West Indies


ANNUAL REPORT 2019

Years ended December 31, 2019 2018 Notes $ $

Revenues 3 70,471 83,330Cost of sales 2.15 (60,751) (68,768)

Gross profit 9,720 14,562

Operating expenses 2.15, 5 (10,537) (14,851)

Operating loss before impairment credit on trade receivables, other income, and other expenses 2.1 (817) (289)Impairment credit on trade receivables 1,196 2,438Other income 6 1 3,818Other expenses 7 (16,975) (19,078)

Operating loss (16,595) (13,111)Financial expense (731) (695)Financial income and other items, net 8 110 329

Loss before taxation (17,216) (13,477)Taxation 19 (1,501) 600

Net loss from continuing operations (18,717) (12,877)Discontinued operation 4.1 423 -

CONSOLIDATED NET LOSS (18,294) (12,877)Non-controlling interest net income - -

CONTROLLING INTEREST NET LOSS (18,294) (12,877)

Basic loss per share 21 (1.52) (1.07)Basic loss per share from continuing operations 21 (1.56) (1.07)

The accompanying notes are part of these consolidated financial statements.

Consolidated Income Statement

(Thousands of Trinidad and Tobago Dollars, except earnings per share)

ANNUAL REPORT 2019



CONSOLIDATED NET LOSS (18,294) (12,877)

Items that will not be reclassified subsequently to the income statement Net actuarial gains (losses) from remeasurements of defined benefit pension plans 18 11,672 (16)

Taxation recognised directly in other comprehensive income 19 (3,501) 5

8,171 (11)

Items that are or may be reclassified subsequently to the income statementCurrency translation results of foreign subsidiaries 20.2 - (2)

Total items of other comprehensive income (loss), net 8,171 (13)

TOTAL COMPREHENSIVE LOSS (10,123) (12,890)

Non-controlling interest comprehensive loss - (2)

CONTROLLING INTEREST COMPREHENSIVE LOSS (10,123) (12,888)


Consolidated Statement of Comprehensive Income

(Thousands of Trinidad and Tobago Dollars)


ANNUAL REPORT 2019

December 31, 2019 2018 Notes $ $

ASSETS

CURRENT ASSETS

Cash and cash equivalents 9 2,934 2,244Trade accounts receivable, net 10 4,348 10,543Other accounts receivable 11 9,971 19,692Inventories, net 12 7,250 9,340

Total current assets 24,503 41,819

NON-CURRENT ASSETS

Other investments 14 1 1Property, machinery and equipment, net 15 58,532 59,383Employee benefits 18 6,409 -Deferred taxation assets 19.2 18,767 14,297

Total non-current assets 83,709 73,681

TOTAL ASSETS 108,212 115,500

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Other financial obligations 16.1 418 -Trade payables 8,862 10,290Other current liabilities 17 42,693 42,663Liabilities directly associated with the discontinued operation 13 - 423

Total current liabilities 51,973 53,376

NON-CURRENT LIABILITIES

Other financial obligations 16.1 1,051 -Employee benefits 18 - 4,784Deferred taxation liabilities 19.2 12,664 4,693

Total non-current liabilities 13,715 9,477

TOTAL LIABILITIES 65,688 62,853

Consolidated Statement of Financial Position


ANNUAL REPORT 2019


Consolidated Statement of Financial Position (Continued)

STOCKHOLDERS’ EQUITY

Controlling interest: Stated capital 20.1 12,000 12,000Retained earnings 20.2 48,818 58,425Net loss (18,294) (12,877)

Total controlling interest 42,524 57,548Non-controlling interest 20.3 - (4,901)

TOTAL STOCKHOLDERS’ EQUITY 42,524 52,647

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 108,212 115,500

The accompanying notes are part of these consolidated financial statements.These consolidated financial statements were approved by the Board of Directors on March 20, 2020 and signed on their behalf by:

December 31, 2019 2018 Notes $ $

Notes 2019 2018 ASSETS

9 $ 2,934 2,244

10 4,348 10,543 11 9,971 19,692 12 7,250 9,340

24,503 41,819

14 1 1 15 58,532 59,383 18 6,409 -

19.2 18,767 14,297 83,709 73,681 $ 108,212 115,500

16.1 $ 418 -

8,862 10,290 17 42,693 42,663

13.2 - 423 51,973 53,376

16.1 1,051 - 18 - 4,784

19.2 12,664 4,693 13,715 9,477 65,688 62,853

20.1 12,000 12,000 20.2 48,818 58,425

(18,294) (12,877) 42,524 57,548

20.3 - (4,901) 42,524 52,647 $ 108,212 115,500


Controlling interest:

Deferred taxation assets........................................................................................................................................

Retained earnings......................................................................................................................................Net loss......................................................................................................................................................

Other current liabilities.........................................................................................................................................Liabilities directly associated with the discontinued operation............................................................................

NON-CURRENT LIABILITIES

Stated capital.............................................................................................................................................

TOTAL LIABILITIES....................................................................................................................

STOCKHOLDERS’ EQUITY

These consolidated financial statements were approved by the Board of Directors on March 20, 2020 and signed on their behalf by:

Total controlling interest....................................................................................................................Non-controlling interest............................................................................................................................

TOTAL STOCKHOLDERS’ EQUITY.........................................................................................TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY......................................................

Total current assets............................................................................................................................

Total non-current assets.....................................................................................................................TOTAL ASSETS.............................................................................................................................

Total current liabilities.......................................................................................................................

Total non-current liabilities................................................................................................................

Trade payables......................................................................................................................................................

Property, machinery and equipment, net..............................................................................................................

CURRENT LIABILITIES

Other financial obligations...................................................................................................................................Employee benefits................................................................................................................................................Deferred taxation liabilities..................................................................................................................................

READYMIX (WEST INDIES) LIMITEDConsolidated Statement of Financial Position

(Thousands of Trinidad and Tobago dollars)

LIABILITIES AND STOCKHOLDERS’ EQUITY

Other financial obligations...................................................................................................................................

Other investments.................................................................................................................................................

Employee benefits................................................................................................................................................

Years Ended December 31,

CURRENT ASSETSCash and cash equivalents....................................................................................................................................Trade accounts receivable, net..............................................................................................................................Other accounts receivable.....................................................................................................................................Inventories, net.....................................................................................................................................................

NON-CURRENT ASSETS

Director Director

12



ANNUAL REPORT 2019


OPERATING ACTIVITIES Consolidated net loss (18,294) (12,877) Discontinued operation 423 –Net loss from continuing operations (18,717) (12,877

Non-cash items:Depreciation and amortisation of assets 5 7,958 5,455Results on sale of subsidiaries, other disposal groups and others (1) (791)Financial income and other items, net 618 361Pension plan expense 1,695 169Taxation 19.1 1,501 (600)Changes in working capital, excluding taxation 15,314 21,156Net cash flow provided by operating activities from continuing operations before financial expense, pension payments and taxation 8,368 12,873

Interest paid (510) (304)Interest received 113 334Taxation paid (630) (811)Pension payments 18 (1,437) (8,002)

Net cash flow provided by operating activities from continuing operations 5,904 4,090

INVESTING ACTIVITIES Proceeds from the sale of property, machinery and equipment 15 1 791Acquisition of property, machinery and equipment 15 (4,735) (8,260)Acquisition of investment – (1)Net cash flow used in investing activities from continuing operations (4,734) (7,470)Net cash flow provided by investing activities from discontinued operation 423 –

Net cash flow used in investing activities (4,311) (7,470)

Consolidated Statement of Cash Flows


ANNUAL REPORT 2019


FINANCING ACTIVITIES

Payment of lease liabilities 16.1 (903) –

Net cash flow used in financing activities (903) –

Increase (decrease) in cash and cash equivalents from continuing operations 267 (3,380)Increase in cash and cash equivalents from discontinued operation 423 –Cash conversion effect, net – (2)Cash and cash equivalents at beginning of period 2,244 5,626

CASH AND CASH EQUIVALENTS AT END OF PERIOD 9 2,934 2,244

Changes in working capital, excluding taxation: Trade receivables, net 6,195 (1,891)Other accounts receivable and other assets 8,850 26,451Inventories 2,090 2,600Trade payables (1,428) (2,948)Other accounts payable and accrued expenses (393) (3,056)

Changes in working capital, excluding taxation 15,314 21,156



Consolidated Statement of Cash Flows (Continued)



ANNUAL REPORT 2019

To

tal

Non

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tal

Com

mon

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Consolidated Statement of Changes in Stockholders’ Equity


ANNUAL REPORT 2019


As of December 31, 2019(Thousands of Trinidad and Tobago Dollars)

Notes to the Consolidated Financial Statements

1) DESCRIPTION OF BUSINESS Readymix (West Indies) Limited (“the Parent” or “RML”) is a limited liability company incorporated and resident in the Republic of Trinidad and Tobago. The shares of RML were de-listed from the Trinidad and Tobago Stock Exchange on December 31, 2018 and the Company has applied to the Trinidad and Tobago Securities and Exchange Commission to be de-registered as a reporting issuer. The registered office of the Company is Tumpuna Road, Guanapo, Arima. Trinidad Cement Limited (“TCL”), also incorporated in the Republic of Trinidad and Tobago, is the parent company and as at December 31, 2019 holds 97.73% (2018: 97.73%) of the issued ordinary shares of the Parent. Readymix (West Indies) Limited had a 60% shareholding in Premix & Precast Concrete Incorporated (“PPCI”), a company incorporated and domiciled in Barbados as of December 31, 2018 but the entity was dissolved on November 6, 2019. RML also has a 100% shareholding in RML Property Development Limited, a company incorporated and domiciled in Trinidad and Tobago. Effective January 24, 2017, the Company’s ultimate Parent Company is CEMEX, S.A.B. de C.V., a public stock corporation with variable capital (S.A.B. de C.V.) organised under the laws of the United Mexican States, or Mexico, and its shares are publicly traded on the Mexican Stock Exchange (“MSE”) as Ordinary Participation Certificates (“CPOs”) under the symbol “CEMEXCPO”.On May 23, 2014, RML Property Development Limited (“RML Property”), a limited liability company was incorporated under the Companies Act, 1995 in the Republic of Trinidad and Tobago and is a wholly owned subsidiary of the parent company, Readymix (West Indies) Limited. This subsidiary has had no trading activities to date.Readymix (West Indies) Limited operates in Trinidad and Tobago and its subsidiary PPCI operated in Barbados. The principal business activities of Readymix (West Indies) Limited and its subsidiaries (the “Group”) are the manufacture and sale of pre-mixed concrete, and the winning and sale of sand and gravel (“aggregates”).Additionally, the Company has participation in and contribution to other ventures which promote the utilisation of output from its quarrying and manufacturing processes.These financial statements were authorised for issue by the Board of Directors on March 20, 2020.

2) SIGNIFICANT ACCOUNTING POLICIES2.1) BASIS OF PRESENTATION AND DISCLOSUREStatement of complianceThe consolidated financial statements of the Group as of December 2019 and 2018 and for the years ended December 31, 2019 and 2018 were prepared using the historic cost convention and in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).Presentation currency and definition of terms The consolidated financial statements are presented in thousands of Trinidad and Tobago dollars ($), which is also the functional currency of the Parent. It is the currency of the primary economic environment in which the Group operates.


ANNUAL REPORT 2019



Newly issued IFRS adopted in 2019IFRS 16, Leases (“IFRS 16”) (notes 15 and 24)The Group initially applied IFRS 16 Leases from January 1, 2019. A number of other new standards are also effective from January 1, 2019 but they do not have a material effect on the Group’s consolidated financial statements.The Group applied IFRS 16 using the modified retrospective approach. Upon initial application, right-of-use assets were recognised at an amount equal to lease liabilities. Accordingly, the comparative information presented for 2018 is not restated — i.e. it is presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been applied to comparative information. The Group has applied the recognition exception for short-term leases and low-value assets, as well as the practical expedient to not separate the non-lease component from the lease component included in the same contract. Right-of-use assets are separately presented in note 15.IFRS 16 defines leases as any contract or part of a contract that conveys to the lessee the right to use an asset for a period in exchange for consideration and the lessee directs the use of the identified asset throughout that period. IFRS 16 introduces a single lessee accounting model, and requires a lessee to recognise, for all leases, allowing exemptions in case of the leases with a term of less than 12 months or when the underlying asset is of low value, assets for the right of use of the underlying asset against a corresponding financial liability, representing the net present value (NPV) of estimated lease payments under the contract, with a single income statement model in which a lessee recognises amortisation of the right-of-use asset and interest on the lease liability. A lessee shall present either in the consolidated statement of financial position, or disclose in the notes, right-of-use assets separately from other assets, as well as, lease liabilities separately from other liabilities.On transition to IFRS 16, the Group recognised additional right-of-use assets and additional lease liabilities. The impact on transition is summarised below. January 1, 2019 $

Right-of-use assets – property, machinery and equipment 2,372Lease liabilities 2,372

When measuring lease liabilities for leases that were classified as operating leases, the Group discounted lease payments using its incremental borrowing rate at January 1, 2019. The weighted–average rate applied is 10.17% for real estate, 8.83% for machinery and equipment and 7.97% for other assets.

2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.1) BASIS OF PRESENTATION AND DISCLOSURE (continued)

ANNUAL REPORT 2019




2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.1) BASIS OF PRESENTATION AND DISCLOSURE (continued)Newly issued IFRS adopted in 2019 (continued)IFRS 16, Leases (“IFRS 16”) (notes 15 and 24) (continued) January 1, 2019 $

Operating lease commitments at December 31, 2018 as disclosed under IAS 17 in the Group’s consolidated financial statements 1,927Discounted using the incremental borrowing rate at January 1, 2019 1,321Extension options reasonably certain to be exercised 1,051 Lease liabilities recognised at January 1, 2019 2,372

IFRIC 23, Uncertainty over income tax treatmentsIFRIC 23 Uncertainty over income tax treatments clarifies how the accounting for income tax treatments that have yet to be accepted by tax authorities is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.An entity has to consider whether it is probable that the relevant tax authority would accept the tax treatment, or group of tax treatments, that is adopted in its income tax filing.If the entity concludes that it is not probable that a particular tax treatment will be accepted, the entity has to use the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The decision should be based on which method provides better prediction of the resolution of the uncertainty.If facts and circumstances change, the entity is required to reassess the judgements and estimates applied.IFRIC 23 reinforces the need to comply with existing disclosure requirements regarding:• judgements made in the process of applying accounting policy to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates;• assumptions and other estimates used; and• potential impact of uncertainties that are not reflected in the consolidated financial statements.This had no impact on adoption.Amendments to IAS 28, Long-term interests in associates and joint ventures (“IAS 28”)Amendments to IAS 28 Long-term interests in associates and joint ventures became effective on January 1, 2019. It requires that an entity should recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised the transactions that generated the distributable profits.This had no impact on adoption.


ANNUAL REPORT 2019



2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.1) BASIS OF PRESENTATION AND DISCLOSURE (continued)Amendments to IAS 19, Employee benefits (plan amendment, curtailment or settlement)Amendments to IAS 19 Employee benefits became effective on January 1, 2019 and requires that the past service cost (or of the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement) but ignoring the effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position).This had no impact on adoption.Amendments to IFRS 9, Financial instruments (prepayment features with negative compensation)Amendments to IFRS 9 Financial instruments became effective on January 1, 2019 and requires that the sign of the prepayment amount is not relevant, i.e. depending on the interest rate prevailing at the time of termination, a payment may also be made in favour of the contracting party effecting the early repayment.The calculation of this compensation payment must be the same for both the case of an early repayment penalty and the case of an early repayment gain.As a consequence of this amendment, negative compensation may be regarded as “reasonable compensation” irrespective of the cause of the early termination. Financial assets with these prepayment features can therefore be measured at amortised cost or at fair value through other comprehensive income (FVOCI) if they meet the other relevant requirements of IFRS 9. Retrospective application is required, subject to relevant transitional reliefs. The Board clarified that IFRS 9 (as issued in 2014) requires preparers to:• recalculate the amortised cost of the modified financial liability by discounting the modified contractual cash flows using the original effective interest rate (EIR); and• recognise any adjustment to profit or loss.The accounting treatment is therefore consistent with that required for modification of financial assets that do not result in derecognition. If the initial application of IFRS 9 results in a change in accounting policy for these modifications or exchanges, then retrospective application is required, subject to transitional reliefs.Annual Improvements to IFRS 2015-2017 CycleThe following amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 became effective on January 1, 2019. Amendments to IAS 23, Borrowing costsAmendments to IAS 23 Borrowing costs became effective on January 1, 2019. It requires that, if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, then that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.This had no impact on adoption.

ANNUAL REPORT 2019




Amendments to IFRS 3, Business combinations and IFRS 11, Joint arrangements (long term interests in associates and joint ventures)Amendments to IFRS 3 Business combinations became effective on January 1, 2019 and requires that when an entity obtains control of a business that is a joint operation, the entity applies the requirements for a business combination achieved in stages, including remeasuring its previously held interest in the joint operation at fair value.This had no impact on adoption.Amendments to IAS 12, Income taxesAmendments to IAS 12 Income taxes became effective on January 1, 2019 and requires that the income tax consequences of dividends be recognised where the transactions or events that generated distributable profits are recognised.This had no impact on adoption.Discontinued operation (note 4.1)The subsidiary PPCI was dissolved on November 6, 2019. However, the entity was dormant since 2014 and consequently earned no income nor incurred any expenses in 2018 and 2019. Thus, there are no amounts presented for “discontinued operation” in the consolidated income statement or in the consolidated statement of comprehensive income.Consolidated financial statementsFor the year ended December 31, 2019, the Group has adopted the presentation style of its ultimate parent company, Cemex S.A.B. de C.V. This is to ensure that the information is presented in a manner more suitable to the line of business. As a result of this change, certain amounts from 2018 have been reclassified. Reconciliations of the amounts disclosed for 2018 in these consolidated financial statements to the amounts disclosed for 2018 in the consolidated financial statements for the year ended December 31, 2018 are presented within the related notes of these consolidated financial statements.Readymix (West Indies) Limited includes in its consolidated income statement the line item titled ‘Operating loss before impairment credit on trade receivables, other income and other expenses’ considering that it is a relevant operating measure for Readymix (West Indies) Limited’s management. The line items ‘Other income’ and ‘Other expenses’ consist primarily of revenues and expenses not directly related to Readymix (West Indies) Limited’s main activities, including impairment losses of non-financial assets, results on disposal of assets and restructuring costs, among others (note 7). Under IFRS, the inclusion of certain subtotals such as ‘Operating loss before impairment credit on trade receivables, other income and other expenses’ and the display of the consolidated income statement varies significantly by industry and company according to specific needs. Considering that it is an indicator of Readymix (West Indies) Limited’s ability to internally fund capital expenditures and to measure its ability to service or incur debt under its financing agreements, for the purposes of note 16, Readymix (West Indies) Limited presents ‘Operating EBITDA’ (operating loss before impairment credit on trade receivables, other income and other expenses, plus depreciation and amortisation). This is not an indicator of Readymix (West Indies) Limited’s financial performance, an alternative to cash flows, a measure of liquidity or comparable to other similarly titled measures of other companies. This indicator is used by Readymix (West Indies) Limited’s management for decision-making purposes.

2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.1) BASIS OF PRESENTATION AND DISCLOSURE (continued)


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“Financial expense” comprises the amount included in the former caption “Finance costs” (in the 2018 consolidated financial statements) as well “Financial expense from pensions”.2.2) PRINCIPLES OF CONSOLIDATIONThese consolidated financial statements comprise the financial statements of Readymix (West Indies) Limited and its subsidiaries (PPCI and RML Property Development in 2018; RML Property Development alone in 2019). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Balances and operations between related parties are eliminated in consolidation.Investments are accounted for by the equity method when Readymix (West Indies) Limited has significant influence which is generally presumed with a minimum equity interest of 20%. The equity method reflects in the consolidated financial statements, the investee’s original cost and the Group’s share of the investee’s equity and earnings after acquisition. The financial statements of joint ventures, which relate to those arrangements in which the Group and other third-party investors have joint control and have rights to the net assets of the arrangements, are recognised under the equity method. During the reported periods, the Group did not have joint operations, referring to those cases in which the parties that have joint control of the arrangement have rights over specific assets and obligations for specific liabilities relating to the arrangements. The equity method is discontinued when the carrying amount of the investment, including any long-term interest in the investee or joint venture, is reduced to zero, unless the Group has incurred or guaranteed additional obligations of the investee or joint venture.Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated income statement, consolidated statement of comprehensive income and within equity in the consolidated statement of financial position.2.3) USE OF ESTIMATES AND CRITICAL ASSUMPTIONSThe preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements; as well as the reported amounts of revenues and expenses during the period. These assumptions are reviewed on an ongoing basis using available information. Actual results could differ from these estimates. The items subject to significant estimates and assumptions by management include impairment tests of non-financial assets, investments and trade receivables, recognition of deferred taxation assets, inventory valuation and the assets and liabilities related to employee benefits. Significant judgment is required by management to appropriately assess the amounts of these concepts.(i) Impairment of non-financial assetsThe recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.1) BASIS OF PRESENTATION AND DISCLOSURE (continued)Consolidated financial statements (continued)

ANNUAL REPORT 2019




2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.3) USE OF ESTIMATES AND CRITICAL ASSUMPTIONS (continued)(ii) TaxesUncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the existence of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Companies’ domiciles.Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.(iii) Provision for expected credit losses (ECL)Management exercises judgment in determining the adequacy of provisions established for accounts receivable balances. Judgement is used in the measurement of expected credit loss (ECL) allowance for trade receivables: key assumptions in determining the weighted-average loss rate.(iv) Property, machinery and equipmentManagement exercises judgment in determining whether costs incurred can accrue significant future economic benefits to the Group to enable the value to be treated as a capital expense.Management also exercises judgment in the annual review of the useful lives of all categories of property, plant and equipment and the resulting depreciation charge determined thereon.Further judgement is applied in the annual review of the useful lives of all categories of property, plant and equipment and the resulting depreciation determined thereon.Additionally, management exercises judgement in the determination of the key assumptions utilised in the impairment tests performed on the property, plant and equipment. These assumptions include the use of a suitable discount rate and applicable cash flow forecasts to be used in the analysis. These variables significantly impact the results and conclusions derived from the impairment tests performed.(v) Defined benefit plansThe cost of the defined benefit pension plan is determined using an actuarial valuation. The actuarial valuation involves making judgements and assumptions in determining discount rates, expected rates of return on assets, future salary increases, and future pension increases. Due to the long-term nature of this plan, such assumptions are subject to significant uncertainty. All assumptions are reviewed at each reporting date.


ANNUAL REPORT 2019



2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.3) USE OF ESTIMATES AND CRITICAL ASSUMPTIONS (continued)(vi) InventoriesThe Company analyses its inventory balances to determine if, as a result of internal events, such as physical damage, or external events, such as technological changes or market conditions, certain portions of such balances have become obsolete or impaired. When an impairment situation arises, the inventory balance is adjusted to its net realisable value, whereas, if an obsolescence situation occurs, the inventory obsolescence reserve is increased. Management exercises judgement in determining if inventory is impaired and in determining the amount of the impairment.2.4) FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION OF FOREIGN

CURRENCY FINANCIAL STATEMENTSThe consolidated financial statements are presented in Trinidad and Tobago dollars (expressed in thousands), which is the functional and presentation currency of the Parent. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.Transactions denominated in foreign currencies are recorded in the functional currency at the exchange rates prevailing on the dates of their execution. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the consolidated statement of financial position date, and the resulting foreign exchange fluctuations are recognised in earnings, except for exchange fluctuations arising from: 1) foreign currency indebtedness associated with the acquisition of foreign entities; and 2) fluctuations associated with related parties’ balances denominated in foreign currency, whose settlement is neither planned nor likely to occur in the foreseeable future and as a result, such balances are of a permanent investment nature. These fluctuations are recorded against “Retained earnings”, as part of the foreign currency translation adjustment (note 20.2) until the disposal of the foreign net investment, at which time, the accumulated amount is recycled through the consolidated income statement as part of the gain or loss on disposal.The financial statements of foreign subsidiaries, as determined using their respective functional currency, are translated to Trinidad and Tobago dollars (TTD) at the closing exchange rate for consolidated statement of financial position accounts and at the closing exchange rates of each month within the period for consolidated income statement accounts. The functional currency is that in which each consolidated entity primarily generates and expends cash. The corresponding translation effect is included within “Retained earnings” and is presented in the consolidated statement of other comprehensive income for the period as part of the foreign currency translation adjustment (note 20.2) until the disposal of the net investment in the foreign subsidiary.The most significant closing exchange rate and the approximate average exchange rate for consolidated statement of financial position accounts and consolidated income statement accounts as of December 31, 2019 and 2018, were as follows (expressed in the quantity of Trinidad and Tobago dollars equivalent to one unit of the currency):

2019 2018Currency Closing Average Closing AverageUnited States Dollar 6.7992 6.7664 6.7986 6.7630

ANNUAL REPORT 2019




2.5) CASH AND CASH EQUIVALENTS (note 9)The balance in this caption comprises available amounts of cash and cash equivalents, mainly represented by highly liquid short-term investments, which are readily convertible into known amounts of cash, and which are not subject to significant risks of changes in their values, including overnight investments, which yield fixed returns and have maturities of less than three months from the investment date. These fixed-income investments are recorded at cost plus accrued interest. Accrued interest is included in the consolidated income statement as part of “Financial income and other items, net”.2.6) FINANCIAL INSTRUMENTSFinancial instruments carried on the consolidated statement of financial position include cash and cash equivalents, trade accounts receivable, other accounts receivable, trade payables, other financial obligations and other current liabilities.Classification and measurement of financial instrumentsThe financial assets that meet both of the following conditions and are not designated as at fair value through profit or loss: a) are held within a business model whose objective is to hold assets to collect contractual cash flows, and b) their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are classified as “Held to collect” and measured at amortised cost. Amortised cost represents the net present value (”NPV”) of the consideration receivable or payable as of the transaction date. This classification of financial assets comprises the following captions:• Cash and cash equivalents (note 9) and• Trade accounts receivable and other accounts receivable (notes 10 and 11).The financial assets that are not classified as “Held to collect” or that have strategic characteristics fall into the residual category of held at fair value through the consolidated income statement as part of “Financial income and other items, net”.Impairment of financial assetsImpairment losses of financial assets, including trade accounts receivable, are recognised using the expected credit loss model for the entire lifetime of such financial assets on initial recognition, and at each subsequent reporting period, even in the absence of a credit event or if a loss has not yet been incurred, considering past events and current conditions, as well as reasonable and supportable forecasts affecting collectability.Finance leasesFinance leases are recognised as financial liabilities against a corresponding right-of-use asset for the lesser of the market value of the leased asset and the net present value (NPV) of future minimum lease payments, using the contract’s implicit interest rate to the extent available, or the incremental borrowing cost under IFRS 16.Fair value measurementsAssets and liabilities arising from the defined benefit plan are measured at fair value (note 18).The fair values of short-term financial assets and liabilities comprising cash and cash equivalents, trade accounts receivable, trade payables and other current liabilities approximate their carrying amounts because of the short-term maturities of these instruments.

2) SIGNIFICANT ACCOUNTING POLICIES (continued)


ANNUAL REPORT 2019



2.7) INVENTORIES (note 12)Inventories are stated at the lower of cost and net realisable value. Costs of finished goods, raw materials, plant spares and consumables are determined using the weighted average cost method. Land held for sale in the ordinary course of business, or that is in the process of construction or development for such sale, is stated at cost. Work in progress and finished goods include attributable production overheads. Net realisable value is the estimate of the selling price in the ordinary course of business, less estimated cost of completion and the estimated costs necessary to make the sale.2.8) PROPERTY, MACHINERY AND EQUIPMENT (note 15)Property, machinery and equipment are recognised at their acquisition or construction costs, as applicable, less accumulated depreciation and accumulated impairment losses. Depreciation of property, machinery and equipment is recognised as part of cost of sales and operating expenses (note 5) and is calculated using the straight-line method over the estimated useful lives of the assets.Property, machinery and equipment acquired under a finance lease or leasehold improvements are depreciated over the shorter of the useful lives of the assets and the lease terms. Land and capital work in progress are not depreciated.Current rates of depreciation are: Building, land improvements and leasehold improvements - 2% - 4%Machinery and equipment in plant - 3% - 40%Office equipment and other assets - 10% - 25%As of December 31, 2019, the average useful lives by category of property, machinery and equipment were as follows: Years

Administrative buildings 19Industrial buildings 16Machinery and equipment in plant 7Office equipment and other assets 4The Group capitalises, as part of the related cost of property, machinery and equipment, interest expense from existing debt during the construction or installation period of significant items of property, machinery and equipment, considering the Group’s corporate average interest rate and the average balance of investments in process for the period.All waste removal costs or stripping costs incurred in the operative phase of a surface mine in order to access the mineral reserves are recognised as part of the carrying amount of the related quarries. The capitalised amounts are further amortised over the expected useful life of exposed minerals based on the units of production method.Costs incurred in respect of operating property, machinery and equipment that result in future economic benefits, such as an extension in their useful lives, an increase in their production capacity or in safety, as well as those costs incurred to mitigate or prevent environmental damage, are capitalised as part of the carrying amount of the related assets.


ANNUAL REPORT 2019




2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.8) PROPERTY, MACHINERY AND EQUIPMENT (note 15) (continued)The capitalised costs are depreciated over the remaining useful lives of such property, machinery and equipment. Periodic maintenance on property, machinery and equipment is expensed as incurred. Advances to suppliers of property, machinery and equipment are presented as part of “Construction in progress”.The useful lives and residual values of property, machinery and equipment are reviewed at each reporting date and adjusted if appropriate.An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.Any gain or loss arising on the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated income statement in the year the asset is derecognised.2.9) IMPAIRMENT OF NON-FINANCIAL ASSETS (note 15)Property, machinery and equipment and other investmentsThese assets are tested for impairment upon the occurrence of factors such as the occurrence of a significant adverse event, changes in the Group’s operating environment or in technology, as well as expectations of lower operating results, to determine whether their carrying amounts may not be recovered. An impairment loss is recorded in the consolidated income statement for the period within “Other expenses” for the excess of the asset’s carrying amount over its recoverable amount, corresponding to the higher of the fair value less costs to sell the asset, and the asset’s value in use, the latter represented by the NPV of estimated cash flows related to the use and eventual disposal of the asset. The main assumptions utilised to develop estimates of NPV are a discount rate that reflects the risk of the cash flows associated with the assets and the estimations of future income. Those assumptions are evaluated for reasonableness by comparing such discount rates to available market information and by comparing to third-party expectations of industry growth, such as governmental agencies or industry chambers.2.10) PROVISIONSThe Group recognises provisions when it has a legal or constructive obligation resulting from past events, whose resolution would imply cash outflows, or the delivery of other resources owned by the Group. As of December 31, 2019 and 2018 some significant proceedings that gave rise to a portion of the carrying amount of the Group’s other current and non-current liabilities and provisions are detailed in note 23.RestructuringThe Group recognises provisions for restructuring when the detailed restructuring plans have been properly finalised and authorised by management and have been communicated to the third parties involved and/or affected by the restructuring prior to the consolidated statement of financial position’s date.


ANNUAL REPORT 2019



2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.10) Provisions (continued)

Asset retirement obligations (note 17)Unavoidable obligations, legal or constructive, to restore operating sites upon retirement of non-financial assets at the end of their useful lives are measured at the NPV of estimated future cash flows to be incurred in the restoration process and are initially recognised against the related assets’ book values. The increase to the assets’ book values is depreciated during their remaining useful lives. The increase in the liability related to adjustments to NPV by the passage of time is charged to the line item “Financial income and other items, net.” Adjustments to the liability for changes in estimations are recognised against property, machinery and equipment, and depreciation is modified prospectively. These obligations are related mainly to future costs of demolition, cleaning and reforestation, so that quarries, maritime terminals and other production sites are left in acceptable condition at the end of their operation.Costs related to remediation of the environment (note 17)Provisions associated with environmental damage represent the estimated future cost of remediation, which are recognised at their nominal value when the time schedule for the disbursement is not clear, or when the economic effect for the passage of time is not significant; otherwise, such provisions are recognised at their discounted values. Reimbursements from insurance companies are recognised as assets only when their recovery is practically certain. In that case, such reimbursement assets are not offset against the provision for remediation costs.Contingencies and commitments (note 23)Obligations or losses related to contingencies are recognised as liabilities in the consolidated statement of financial position only when present obligations exist resulting from past events that are probable to result in an outflow of resources and the amount can be measured reliably. Otherwise, a qualitative disclosure is included in the notes to the consolidated financial statements. The effects of long-term commitments established with third parties, such as supply contracts with suppliers or customers, are recognised in the consolidated financial statements on an incurred or accrued basis, after taking into consideration the substance of the agreements. Relevant commitments are disclosed in the notes to the consolidated financial statements. The Group recognises contingent revenues, income or assets only when their realisation is virtually certain.2.11) PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS (note 18)Defined benefit pension plans and other post-employment benefitsThe costs associated with employees’ benefits for the defined benefit pension plan granted by the Group are recognised as services are rendered, based on actuarial estimations of the benefits’ present value with the advice of external actuaries. The Group has created an irrevocable trust fund to cover future benefit payments (“plan assets”). These plan assets are valued at their estimated fair value at the consolidated statement of financial position date. The actuarial assumptions and accounting policy consider: a) the use of nominal rates; b) a single rate is used for the determination of the expected return on plan assets and the discount of the benefits obligation to present value; c) net interest is recognised on the net defined benefit liability (liability minus plan assets); and d) all actuarial gains and losses for the period, related to differences between the projected and real actuarial assumptions at the end of the period, as well as the difference between the expected

ANNUAL REPORT 2019




2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.11) PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS (note 18) (continued)Defined benefit pension plans and other post-employment benefits (continued)and real return on plan assets, are recognised as part of “Other items of comprehensive income, net” within the consolidated statement of changes in stockholders’ equity.The service cost, corresponding to the increase in the obligation for additional benefits earned by employees during the period, is recognised within operating costs and expenses. The net interest cost, resulting from the increase in obligations for changes in NPV and the change during the period in the estimated fair value of plan assets, is recognised within “Financial income and other items, net”.The effects from modifications to the pension plans that affect the cost of past services are recognised within operating costs and expenses over the period in which such modifications become effective to the employees or without delay if changes are effective immediately. Likewise, the effects from curtailments and/or settlements of obligations occurring during the period, associated with events that significantly reduce the cost of future services and/or reduce significantly the population subject to pension benefits, respectively, are recognised within operating costs and expenses.Termination benefitsTermination benefits, not associated with a restructuring event, which mainly represent severance payments by law, are recognised in the operating results for the period in which they are incurred.2.12) TAXATION (note 19)The effects reflected in the consolidated income statement for taxation include the amounts incurred during the period and the amounts of deferred taxation, determined according to the taxation law applicable to each subsidiary. Consolidated deferred taxation represent the addition of the amounts determined in each subsidiary by applying the enacted statutory taxation rate to the total temporary differences resulting from comparing the book and taxable values of assets and liabilities, considering tax assets such as loss carry forwards and other recoverable taxes, to the extent that it is probable that future taxable profits will be available against which they can be utilised. The measurement of deferred taxation for the reporting period reflects the tax consequences that follow the way in which the Group expects to recover or settle the carrying amount of its assets and liabilities. Deferred taxation for the period represents the difference between balances of deferred taxation at the beginning and the end of the period. Deferred taxation assets and liabilities relating to different tax jurisdictions are not offset. According to IFRS, all items charged or credited directly in stockholders’ equity or as part of other comprehensive income or loss for the period are recognised net of their current and deferred taxation effects. The effect of a change in enacted statutory tax rates is recognised in the period in which the change is officially enacted.Deferred tax assets are reviewed at each reporting date and are reduced when it is not deemed probable that the related tax benefit will be realised, considering the aggregate amount of self-determined tax loss carry forwards that the Group believes will not be rejected by the tax authorities based on available evidence and the likelihood of recovering them prior to their expiration through an analysis of estimated future taxable income. If it is probable that the tax authorities would reject a self-determined deferred tax asset, the Group would decrease such an asset. When it is considered that a deferred tax asset will not be recovered before its expiration, the Group would not recognise such a deferred tax


ANNUAL REPORT 2019



2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.12) TAXATION (note 19) (continued)asset. Both situations would result in additional taxation expenses for the period in which such a determination is made. In order to determine whether it is probable that deferred tax assets will ultimately be recovered, the Group takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carry forward periods, current tax structure, potential changes or adjustments in tax structure, tax planning strategies, future reversals of existing temporary differences. Likewise, the Group analyses its actual results versus the Group’s estimates, and adjusts, as necessary, its tax asset valuations. If actual results vary from the Group’s estimates, the deferred tax asset and/or valuations may be affected, and necessary adjustments will be made based on relevant information in the Group’s income statement for such period.The taxation effects from an uncertain tax position are recognised when is probable that the position will be sustained based on its technical merits and assuming that the tax authorities will examine each position and have full knowledge of all relevant information, and they are measured using a cumulative probability model. Each position has been considered on its own, regardless of its relation to any other broader tax settlement. The high probability threshold represents a positive assertion by management that the Group is entitled to the economic benefits of a tax position. If a tax position is considered not probable of being sustained, no benefits of the position are recognised. Interest and penalties related to unrecognised tax benefits are recorded as part of the taxation in the consolidated income statements.The effective taxation rate is determined dividing the line item “Taxation” by the line item “Loss before taxation.” This effective tax rate is further reconciled to the Group’s statutory tax rate applicable in Trinidad and Tobago (note 19.3). A significant effect in the Group’s effective tax rate and consequently in the reconciliation of the Group’s effective tax rate, relates to the difference between the statutory taxation rate in Trinidad and Tobago of 30% against the applicable taxation rates of each country where the Group operates.Country 2019 2018

Trinidad and Tobago 30.0% 30.0%The Group’s current and deferred taxation amounts included in the consolidated income statement for the period are highly variable, and are subject, among other factors, to taxable income determined in each jurisdiction in which the Group operates. Such amounts of taxable income depend on factors such as sale volumes and prices, costs and expenses, exchange rates fluctuations and interest on debt, among others, as well as to the estimated tax assets at the end of the period due to the expected future generation of taxable gains in each jurisdiction.

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2.13) STOCKHOLDERS’ EQUITYStated capital (note 20.1)These items represent the value of stockholders’ contributions.Retained earnings (note 20.2)Retained earnings represent the cumulative net results of prior years, net of: a) dividends declared; b) capitalisation of retained earnings; c) cumulative effects from adoption of new IFRS and d) other comprehensive income.Non-controlling interest (note 20.3)This caption includes the share of non-controlling stockholders in the results and equity of consolidated subsidiaries.2.14) REVENUE RECOGNITION (note 3)Sale of goods and servicesRevenue is recognised at a point in time as the amount of the price, before tax on sales, expected to be received for goods and services supplied as a result of their ordinary activities, as contractual performance obligations are fulfilled, and control of goods and services passes to the customer. Revenues are decreased by any trade discounts or volume rebates granted to customers. Transactions between related parties are eliminated in consolidation.Variable consideration is recognised when it is highly probable that a significant reversal in the amount of cumulative revenue recognised for the contract will not occur and is measured using the expected value or the most likely amount method, whichever is expected to better predict the amount based on the terms and conditions of the contract.Revenue and costs from trading activities, in which the Group acquires finished goods from a third party and subsequently sells the goods to another third-party, are recognised on a gross basis, considering that the Group assumes ownership risks on the goods purchased, not acting as an agent or a broker.Advances received from customers do not reflect the work performed and are recognised in other current liabilities.2.15) COST OF SALES AND OPERATING EXPENSES (note 5)Cost of sales represents the production cost of inventories at the moment of sale. Cost of sales includes depreciation, amortisation and depletion of assets involved in production, expenses related to storage in production plants and freight expenses of raw material in plants and delivery expenses of the Group’s ready-mix concrete business.Administrative expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortisation, related to managerial activities and back office for the Group’s management.Sales expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortisation, involved specifically in sales activities.



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2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.15) COST OF SALES AND OPERATING EXPENSES (note 5) (continued)Distribution and logistics expenses refer to expenses of storage at points of sales, including depreciation and amortisation, as well as freight expenses of finished products between plants and points of sale and freight expenses between points of sales and the customers’ facilities.2.16) INVESTMENTS IN EQUITIES (note 14)Investments in strategic equity securities are carried at cost. At December 31, 2019 the carrying value of investments in equity securities is $1 (2018: $1). This represents an investment in the related party East Lake Development Company Limited (ELDCL) (see note 14).2.17) CONCENTRATION OF CREDITAll of the Group’s customers are in Trinidad and Tobago. Three customers collectively accounted for 26% of trade receivables (2018: 27%).2.18) NEWLY ISSUED IFRS NOT YET ADOPTEDThere are several amendments or new IFRS issued but not yet effective which the Group’s management expects to adopt at their specific effective dates without any significant effect in the Group’s financial position or operating results, and which are summarised as follows:

Standard Main Topic Effective date

Conceptual Framework Amendments to References to Conceptual Framework in IFRS Standards is effective retrospectively for annual reporting periods beginning on or after January 1, 2020. The revised framework covers all aspects of standard setting including the objective of financial reporting. The main change relates to how and when assets and liabilities are recognised and de-recognised in the consolidated financial statements.

January 1, 2020

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2) SIGNIFICANT ACCOUNTING POLICIES (continued)2.18) NEWLY ISSUED IFRS NOT YET ADOPTED (continued)

Standard Main Topic Effective date

IFRS 9 Financial instruments, IAS 39 Financial instruments: recognition and measurement and IFRS 7 Financial instruments: disclosures

The amendments to IFRS 9, IAS 39 and IFRS 7 amend requirements for hedge accounting to support the provision of useful financial information during the period of uncertainty caused by the phasing out of interest-rate benchmarks such as interbank offered rates (IBORs) on hedge accounting. The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties.

January 1, 2020

IAS 1 Presentation of financial statements and IAS 8 Accounting policies, changes in accounting estimates and errors

The amendments provide a definition of ‘material’ to guide preparers of financial statements in making judgements about information to be included in financial statements.

January 1, 2020

IAS 1 Presentation of financial statements and IAS 28 Investments in associates and joint ventures

The amendments provide guidance on the classification of liabilities as current or noncurrent and introduces narrow-scope amendments to IAS 1 to clarify how to classify debt and other liabilities as current or non-current.

January 1, 2022

Amendments to IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint ventures

The amendments clarify the recognition of gains or losses in the Parent’s financial statements for the sale or contribution of assets between an investor and its associate or joint venture.

Available for adoption/ effective date deferred


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3) REVENUESReadymix (West Indies) Limited’s revenues are mainly originated from the production and sale of pre-mix concrete and the winning and sale of sand and gravel. Readymix (West Indies) Limited grants credit for terms ranging from 30 to 45 days depending of the type and risk of each customer. For the years ended December 31, 2019 and 2018, revenue is as follows: 2019 2018 $ $

From the sale of goods associated toReadymix (West Indies) Limited’s main activities 67,961 83,330From other activities1 2,510 - 70,471 83,330

1 Revenue from other activities in 2019 arose from participation in a venture with the related party East Lake Development Company Limited for the provision of housing solutions.

Information of revenues by reportable segment and line of business for the years 2019 and 2018 is presented in note 4.2.

4) DISCONTINUED OPERATION AND SELECTED FINANCIAL INFORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESS4.1) DISCONTINUED OPERATIONNon-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.Assets and liabilities classified as held for discontinuation are presented separately as current items in the consolidated statement of financial position. The discontinued operation is excluded from the results of the continuing operations and presented as profit or loss from discontinued operation in the consolidated income statement. There were no cash inflows or outflows associated with the discontinued operation.The Board of Directors suspended operations of Premix & Precast Concrete Incorporated (PPCI), located in Barbados effective September 30, 2014, due to a major decline in the demand for concrete on the island. On November 6, 2019, approval was granted for the dissolution of Premix & Precast Concrete Incorporated. The approval resulted in Premix & Precast Concrete Incorporated being struck off the Registrar of Companies pursuant to sections 360 to 370 of the Companies Act, Chap. 308 of the laws of Barbados. The remaining liabilities of Premix & Precast Concrete were extinguished, having been previously carried in the consolidated financial statements as liabilities associated with a discontinued operation.

ANNUAL REPORT 2019




4) DISCONTINUED OPERATION AND SELECTED FINANCIAL INFORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESS (continued)4.1) DISCONTINUED OPERATION (continued)A gain of $423 was recognised in the consolidated income statement as a result of the dissolution of PPCI. The entity did not incur any costs or earn any revenue in 2018 and 2019 from operations.The assets and liabilities associated with this operation as at December 31, 2018 are disclosed in note 13.4.2) SELECTED FINANCIAL INFORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESSReportable segments represent the components of the Group that engage in business activities from which the Group may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity’s top management to make decisions about resources to be allocated to the segments and assess their performance, and for which discrete financial information is available. The Group operates based on product line. For the reported periods, the Group’s main product lines are as follows: 1) concrete and 2) aggregates. The accounting policies applied to determine the financial information by reportable segment are consistent with those described in note 2.Administrative and general and selling expenses are apportioned between the concrete and aggregate segments based on the ratio of revenues derived from each segment. Certain assets are not managed by business unit, being cash and deferred tax of $21,701 (2018: $16,541). Certain liabilities are not managed by business unit, being deferred tax of $12,664 (2018: $4,693). Less: Other Operating Depreciation Operating Other Financial financing Revenues EBITDA and amortisation EBIT 1 expenses expense items, net2019 $ $ $ $ $ $ $

Concrete 50,527 3,443 5,917 (2,474) 12,952 543 (82)Aggregates 17,434 1,188 2,041 (853) 4,023 188 (28)Others 2,510 – – – – – –Continuing Operations 70,471 4,631 7,958 (3,327) 16,975 731 (110)Discontinued Operation 423 – – – – – –Total 70,894 4,631 7,958 (3,327) 16,975 731 (110)1 The “Operating EBIT” is the “Operating EBITDA” less depreciation and amortisation. Less: Other Operating Depreciation Operating Other Financial financing Revenues EBITDA1 and amortisation EBIT expenses expense items, net2018 $ $ $ $ $ $ $

Concrete 67,250 4,169 4,402 (233) 13,429 561 (266)Aggregate 16,080 997 1,053 (56) 3,211 134 (63) Total 83,330 5,166 5,455 (289) 16,640 695 (329)


ANNUAL REPORT 2019



4) DISCONTINUED OPERATION AND SELECTED FINANCIAL IN FORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESS (continued)4.2) SELECTED FINANCIAL INFORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESS (continued)1 The “Operating EBITDA” disclosed for 2018 is $5,166, which differs from the $3,360 in the former caption “Earnings before interest, tax, depreciation, gain on disposal of property, plant and equipment, restructuring costs and impairment” as this amount excludes the loss on foreign exchange of $5 (now included in “Financial income and other items, net”; $391 for “Financial expense from pensions”; $4,436 in “Management Fees” and $1 in “Charitable contributions” (both formerly included in “Other operating expenses”); and included $3,027 in “Excess provisions from prior periods” (now included in “Other income”).

$Earnings before interest, tax, depreciation, gain on disposal of property, plant and equipment, restructuring costs and impairment per 2018 consolidated financial statements 3,360Loss on foreign exchange 5Financial expense from pensions 391Management fees 4,436Excess provisions from prior periods (3,027)Charitable contributions 1Operating EBITDA for 2018 per new presentation in 2019 5,166As of December 31, 2019 and 2018, selected consolidated statement of financial position information by reportable segment was as follows: Additions to property, Net assets machinery and Total assets Total liabilities by segment equipment 2019 $ $ $ $

Concrete 63,920 39,178 24,742 3,520Aggregate 22,055 13,518 8,537 1,215Total 85,975 52,696 33,279 4,735

Additions to property, Net assets machinery and Total assets Total liabilities by segment equipment 2018 $ $ $ $

Concrete 24,428 17,029 7,399 3,618Aggregate 58,395 40,708 17,687 4,642Total 82,823 57,737 25,086 8,260

ANNUAL REPORT 2019




5) OPERATING EXPENSES, DEPRECIATION AND AMORTISATIONConsolidated operating expenses during 2019 and 2018 by function are as follows: 2019 2018 $ $

Administrative expenses 10,537 14,851

Depreciation and amortisation recognised during 2019 and 2018 are detailed as follows: 2019 2018 $ $

Included in cost of sales 7,489 4,942Included in administrative, selling and distribution and logistics expenses 469 513 7,958 5,455

In the 2018 consolidated financial statements, amounts for “Cost of sales” and “Operating expenses” were not disclosed. The list of expenses deducted to arrive at the “Earnings before interest, tax, depreciation, gain on disposal of property, plant and equipment, restructuring costs and impairment” was disclosed in 2018, and it can be reconciled to the sum of the “Cost of sales” and “Operating expenses” as follows”: $Revenue for 2018 per 2018 consolidated financial statements 83,330Earnings before interest, tax, depreciation, gain on disposal of property, plant and equipment, restructuring costs and impairment per 2018 consolidated financial statements 3,360 Expenses deducted in 2018 79,970Less Loss on foreign exchange (now included in note 7 “Financial income and other items, net”) (5)Less Financial expense from pensions (now included in “Financial expense”) (391)Less Management fees (now included in note 6 “Other expenses”) (4,436)Less Charitable contributions (now included in note 6 “Other expenses”) (1)Add Excess provisions from prior periods (now included in “Other income”) 3,027Add Depreciation (now included within “Cost of sales” and “Operating expenses”) 5,455 Sum of cost of sales and operating expenses for 2018 per new presentation 83,619Less Cost of sales for 2018 per new presentation (68,768)Operating expenses for 2018 per new presentation 14,851


ANNUAL REPORT 2019



6) OTHER INCOMEThe details of the line item “Other income” in 2019 and 2018 were as follows: 2019 2018 $ $

Results from the sale of assets and others, net 1 1 791Excess provisions from prior periods 2 - 3,027 1 3,818

1 Results from the sale of assets and others, net in 2019 consists of the gain on disposal of $1 (2018: $791). In the 2018 consolidated financial statements, this caption (formerly called “Gain on disposal of property, plant and equipment”) was disclosed in the face of the consolidated income statement.

2 In 2019 there were reversals of excess provisions of nil (2018: $3,027). In the 2018 consolidated financial statements “Excess provisions from prior periods” (formerly “Other income”) was disclosed in note 13.

7) OTHER EXPENSESThe details of the line item “Other expenses” in 2019 and 2018 were as follows: 2019 2018 $ $

Restructuring costs 1 11,711 14,641Charitable contributions - 1Management fees 5,264 4,436 16,975 19,078

1 Restructuring costs comprise manpower restructuring costs of $11,626 (2018: $14,610), integration restructuring costs of nil (2018: $31) and inventory restructuring costs of $85 (2018: nil). Manpower restructuring costs consist mainly of severance costs incurred during the year relative to the implementation of restructuring programmes by the Group. The objective of the programmes is to improve cost efficiency Integration restructuring expenses comprise the expenses incurred to align the operations and integrate the processes with the ultimate parent company.

In the 2018 consolidated financial statements, the amount for “Restructuring costs” (formerly disclosed as two separate captions, “Manpower restructuring costs” and “Integration restructuring expenses”) was disclosed in the face of the consolidated income statement. The amounts for “Management fees” and “Charitable contributions” were included within “Other operating expenses” in note 13 of the 2018 consolidated financial statements.

ANNUAL REPORT 2019




8) FINANCIAL INCOME AND OTHER ITEMS, NETThe details of financial income and other items, net in 2019 and 2018 were as follows: 2019 2018 $ $

Financial income 1 (113) (334)Foreign exchange results 2 3 5 (110) (329)

1 In the 2018 consolidated financial statements “Financial income” was called “Interest income” and was disclosed in the face of the consolidated income statement.

2 In the 2018 consolidated financial statements, “Foreign exchange results” (then called “Foreign exchange loss”) was disclosed in note 13.

9) CASH AND CASH EQUIVALENTSAs of December 31, 2019 and 2018, cash and cash equivalents consisted of: 2019 2018 $ $

Cash and bank accounts 2,934 2,244

Cash at bank earns interest at floating rates based on daily bank deposit rates.Under the new presentation, “Cash and cash equivalents” is being used instead of “Cash at bank and short-term deposits”. It excludes the short-term deposits, which were fixed deposit investments of $16,136 in the immediate parent, Trinidad Cement Limited. The fixed deposit investment is now included within “Other accounts receivable” as part of “Due from related parties”.

10) TRADE ACCOUNTS RECEIVABLE, NETAs of December 31, 2019 and 2018, the consolidated trade accounts receivable consisted of: 2019 2018 $ $

Trade accounts receivable 15,787 24,719Provision for expected credit losses (ECL) (11,439) (14,176) 4,348 10,543

Under this ECL model, the Group segments its accounts receivable in a matrix by country, type of client or homogeneous credit risk and days past due and determines for each segment an average rate of ECL, considering actual credit loss experience over the last 24 months and analyses of future delinquency, that is applied to the balance of the accounts receivable. The average ECL rate increases in each segment of days past due until the rate is 100% for the segment of 150 days or more past due.


ANNUAL REPORT 2019



As of December 31, 2019 and 2018, the balances of trade accounts receivable and the allowance for ECL were as follows: 2019 2018 Accounts ECL ECL average Accounts ECL ECL average $ $ % $ $ %

Current receivables 962 130 13.51% 5,560 28 0.50%Receivables between 0 and 30 days past due 2,651 575 21.69% 2,691 377 14.01%Receivables between 30 and 60 days past due 1,365 276 20.22% 2,062 349 16.93%Receivables between 60 and 90 days past due 334 88 26.35% 811 169 20.84%Receivables between 90 and 120 days past due 126 42 33.33% 403 112 27.79%Receivables between 120 and 150 days past due 36 15 41.67% 87 36 41.38%Receivables over 150 days past due 10,313 10,313 100.00% 13,105 13,105 100.00%

15,787 11,439 – 24,719 14,176 –

Changes in the ECL provision in 2019 and 2018 were as follows:

2019 2018 $ $

ECL provision at beginning of period 14,176 15,467Adoption effects of IFRS 9 charged to retained earnings (note 2.1) - 4,397Charged to selling expenses (1,196) (2,438)Deductions (1,541) (3,250)ECL provision at end of period 11,439 14,176

In the 2018 consolidated statement of financial position, “Trade receivables” was included within “Receivables and prepayments”.

11) OTHER ACCOUNTS RECEIVABLE 2019 2018 $ $

Non-trade accounts receivable 1 1,831 1,163Loans to employees and others 1 31 31Due from related parties 2 6,875 16,393Refundable taxes 1,234 2,105 9,971 19,692

10) TRADE ACCOUNTS RECEIVABLE, NET (continued)

ANNUAL REPORT 2019




1 The items “Non-trade accounts receivable” and “Loans to employees and others” were formerly combined in the single item “Sundry receivables and prepayments” in the 2018 consolidated financial statements. The entire amount in “Other receivables” was presented within “Receivables and prepayments” in the 2018 consolidated financial statements, with the exception of the short-term deposit due from a related party.

2 The amounts due from related parties include an advance placed with Trinidad Cement Limited for a period of one year maturing March 15, 2020 and which earns interest at a rate of 0.92% per annum. This advance was rolled over on the maturity date of September 15, 2019, for a period of six months.

The “Due from related parties” amount for 2018 of $16,393 comprises the $257 included last year, as well as the $16,136 formerly included under “Cash and short-term deposits”.

12) INVENTORIES, NETAs of December 31, 2019 and 2018, the balances of inventories were summarised as follows: 2019 2018 $ $

Finished goods 3,076 5,290Raw materials 1,220 1,484Materials and spare parts 2,954 2,566 7,250 9,340

For the years ended December 31, 2019 and 2018, the Group recognised within “Cost of Sales” in the consolidated income statement, inventory impairment losses of nil and nil, respectively. As at December 31, 2019 and 2018, the Group recognised inventory provisions for obsolescence of $117 and $2,921, respectively.Inventory includes finished goods held at the Melajo quarry, which comprise sand and gravel (“aggregates”), and raw materials held at the concrete plants which comprise cement, add-mixtures, fibre-mesh and aggregates, and pitrun at the Melajo quarry.Land held for sale in the ordinary course of business, or that is in the process of construction or development for such sale comprise a portion of the Group’s landholdings that has been parcelled and earmarked for sale.

13) DISCONTINUED OPERATIONAs at December 31, 2014, PPCI was classified as a disposal group held for sale and as a discontinued operation, and it was dissolved on November 6, 2019 (see note 4). There were no income or expenses recorded in 2019 for this subsidiary (2018: nil). At December 31, 2019, there were no assets or liabilities recorded for the operation (2018: liabilities of $423).

11) OTHER ACCOUNTS RECEIVABLE (continued)


ANNUAL REPORT 2019



14) OTHER INVESTMENTS 2019 2018 $ $

Investments in strategic equity securities ‘ 1 1

1 This is a strategic investment in East Lake Property Development Company Limited (ELPDCL). The Group holds a 10% minority shareholding and does not exercise control.

15) PROPERTY, MACHINERY AND EQUIPMENT, NETAs of December 31, 2019 and 2018, property, machinery and equipment, net and the changes in such line item during 2019 and 2018, were as follows: Land Machinery Construction and land and in improvements Building equipment progress3 Total2019 $ $ $ $ $

Cost at December 31 8,049 25,750 131,084 3,864 168,747Recognition of right-of-use assets on initial application of IFRS 16 - 991 1,381 - 2,372Adjusted Cost balance as at January 1 8,049 26,741 132,465 3,864 171,119Accumulated depreciation and depletion as at December 31 (2,364) (16,066) (90,934) - (109,364)Net book value at beginning of period 5,685 10,675 41,531 3,864 61,755Capital expenditures - - - 4,735 4,735Disposals 2 - - (60,674) - (60,674)Reclassifications - 1,025 4,132 (5,157) -Depreciation and depletion for the period (237) (1,364) (6,357) - (7,958)Depreciation and depletion for the period on disposals - - 60,674 - 60,674Cost at end of period 8,049 27,766 75,923 3,442 115,180Accumulated depreciation and depletion 1 (2,601) (17,430) (36,617) - (56,648)Net book value at end of period 5,448 10,336 39,306 3,442 58,5321 Cost as at the end of the period include the cost of right-of-use assets of $1,851. Accumulated depreciation and depletion as at the end of the period includes accumulated depreciation and depletion on right-of-use assets of $444.

2 The disposals comprised assets that were both fully depreciated and retired.

ANNUAL REPORT 2019




3 Construction in progress” is comprised mainly of the costs incurred to date on the upgrade of the Pt. Lisas concrete plant and lab equipment and facilities. These upgrades are expected to be commissioned in 2020, at which time all related costs would be transferred from “Construction in progress” to “Machinery and equipment”.

Land Machinery Construction and land and in improvements2 Building2 equipment3 progress4 Total 2018 $ $ $ $ $

Cost at beginning of period 8,049 23,681 109,839 24,100 165,669Accumulated depreciation and depletion (2,127) (14,726) (92,255) - (109,108)Net book value at beginning of period 5,922 8,955 17,584 24,100 56,561Capital expenditures – 436 4,216 3,608 8,260Disposals1 – 64 (6,273) – (6,209)Reclassifications – 1,569 23,302 (23,844) 1,027Depreciation and depletion for the period (237) (1,276) (3,942) – (5,455)Depreciation and depletion for the period on disposals - (64) 5,263 – 5,199Cost at end of period 8,049 25,750 131,084 3,864 168,747Accumulated depreciation and depletion (2,364) (16,066) (90,934) – (109,364)Net book value at end of period 5,685 9,684 40,150 3,864 59,3831 There was a net loss on disposal of nil (2018: net nil).2 In the 2018 consolidated financial statements, the categories “Land and land improvements” and “Building” were presented as a single category, “Land and buildings”.

3 In the 2018 consolidated financial statements, the category “Machinery and equipment” was represented by two separate captions, “Plant machinery & equipment & motor vehicles” and “Office furniture”.

4 In the 2018 consolidated financial statements, the category “Construction in progress” was called “Capital WIP”.

15) PROPERTY, MACHINERY AND EQUIPMENT, NET (continued)


ANNUAL REPORT 2019



16) FINANCIAL INSTRUMENTS16.1) OTHER FINANCIAL OBLIGATIONSAs of December 31, 2019 and 2018, other financial obligations in the consolidated statement of financial position are detailed as follows: 2019 2018 Short-term Long-term Total Short-term Long-term Total $ $ $ $ $ $

Lease Obligations 418 1,051 1,469 – – –

The details of the lease obligations are provided in note 24.2.16.2) RISK MANAGEMENTEnterprise risks may arise from any of the following situations: i) the potential change in the value of assets owned or reasonably anticipated to be owned; ii) the potential change in value of liabilities incurred or reasonably anticipated to be incurred; iii) the potential change in value of services provided, purchased or reasonably anticipated to be provided or purchased in the ordinary course of business; iv) the potential change in the value of assets, services, inputs, products or commodities owned, produced, manufactured, processed, merchandised, leased or sold or reasonably anticipated to be owned, produced, manufactured, processed, merchandised, leased or sold in the ordinary course of business; or v) any potential change in the value arising from interest rate or foreign exchange rate exposures arising from current or anticipated assets or liabilities.The Board of Directors is ultimately responsible for the overall risk management approach and for approving the risk strategies, principles and policies and procedures. Day to day adherence to risk principles is carried out by the executive management, in compliance with the policies approved by the Board of Directors.The main risk categories are credit risk, foreign currency risk, liquidity risk, and credit quality risk.Credit riskCredit risk is the risk of financial loss faced by the Group if a customer or counterparty to a financial instrument does not meet its contractual obligations and originates mainly from trade accounts receivable. As of December 31, 2019 and 2018, the maximum exposure to credit risk is represented by the balance of financial assets. Management has developed policies for the authorisation of credit to customers. Exposure to credit risk is monitored constantly according to the payment behaviour of debtors. Credit is assigned on a customer-by-customer basis and is subject to assessments which consider the customers’ payment capacity, as well as past behaviour regarding due dates, balances past due and delinquent accounts. In cases deemed necessary, the Group’s management requires guarantees from its customers and financial counterparties with regard to financial assets.

ANNUAL REPORT 2019




16) FINANCIAL INSTRUMENTS (continued)16.2) RISK MANAGEMENT (continued)Credit risk (continued)The Group’s management has established a policy of low risk tolerance which analyses the creditworthiness of each new client individually before offering the general conditions of payment terms and delivery. The review includes external ratings, when references are available, and in some cases bank references. Thresholds of purchase limits are established for each client, which represent the maximum purchase amounts that require different levels of approval. Customers that do not meet the levels of solvency requirements imposed by the Group can only carry out transactions by paying cash in advance. As of December 31, 2019, considering the Group’s best estimate of potential expected losses based on the ECL model developed by the Group (note 10), the allowance for doubtful accounts was $11,439.The following table shows the maximum exposure to credit risk for the components of the consolidated statement of financial position, without taking account of any other credit enhancements:

Gross maximum exposure 2019 2018 $ $

Cash and cash equivalents 2,934 2,244Trade accounts receivable 4,348 10,543 7,282 12,787Foreign currency riskForeign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit’s functional currency. Management monitors its exposure to foreign currency fluctuations and employs appropriate strategies to mitigate any potential losses. As such, there is no material risk relating to foreign currency fluctuations.The aggregate value of financial assets and liabilities by denominated currency are as follows:

2019 2018 $ $

Monetary assets 42,429 46,776Monetary liabilities 65,688 62,430Net monetary assets (liabilities) (23,259) (15,654)Out of which:Trinidad and Tobago dollars (23,757) (14,960)United States dollars 499 (604)Colombian peso (1) (90) (23,259) (15,654)


ANNUAL REPORT 2019



The following table demonstrates the sensitivity to a reasonably possible change in the exchange rate of the currency in which the majority of foreign transactions are denominated, with all other variables held constant, of profit (loss) before tax (due to changes in the fair value of monetary assets and liabilities) and the Group’s equity: 2019 2018 Effect on profit Effect Effect on profit Effect before tax on equity before tax on equityCurrency +100 bps -100 bps +100 bps -100 bps 100 bps -100 bps 100 bps -100 bps $ $ $ $ $ $ $ $

USD 7 (7) 7 (7) 1 (1) 1 (1)

Liquidity riskLiquidity risk is the risk that the Group will not have sufficient funds available to meet its obligations. In addition to cash flows provided by its operating activities, in order to meet the Group’s overall liquidity needs for operations, servicing debt and funding capital expenditures, the Group relies on cost-cutting and operating improvements to optimise capacity utilisation and maximise profitability, as well as borrowing under credit facilities, proceeds of debt and equity offerings, and proceeds from asset sales. The Group is exposed to risks from changes in foreign currency exchange rates, prices and currency controls, interest rates, inflation, governmental spending, social instability and other political, economic and/or social developments in the countries in which it operates, any one of which may materially affect the Group’s results and reduce cash from operations. The maturities of the Group’s contractual obligations are included in notes 22.3 and 24.1.The table below summarises the maturity profile of the Group’s financial instruments at December 31, based on contractual undiscounted payments:

2019On demand

$< 1 year

$1 to 5 years

$> 5 years

$Total

$

Financial assetsCash and cash equivalents 2,934 – – – 2,934Other accounts receivable – 9,971 – – 9,971Trade accounts receivable – 4,568 – – 4,568Tax assets – – 18,767 – 15,767

2,934 14,539 18,767 – 36,240

Financial liabilitiesLong-term liabilities – 418 686 385 1,489Other current liabilities – 42,693 – – 42,693Tax liabilities – – 12,664 – 12,664Trade payables – 8,862 – – 8,862

– 51,973 13,350 385 65,708

16) FINANCIAL INSTRUMENTS (continued)16.2) RISK MANAGEMENT (continued)Foreign currency risk (continued)

ANNUAL REPORT 2019




2018On demand

$< 1 year

$1 to 5 years

$> 5 years

$Total

$Financial assets Cash and cash equivalents 2,244 16,136 – – 18,380Other accounts receivable – 10,800 – – 10,800Trade accounts receivable – 19,692 – – 19,692Tax assets – – 14,297 – 14,297

2,244 46,628 14,297 – 63,169

Financial liabilitiesLong-term liabilities – – – – –Other current liabilities – 42,663 – – 42,663Tax liabilities – – 4,693 – 4,693Trade payables – 10,290 – – 10,290

– 52,953 4,693 – 57,646

Credit quality riskThe credit quality of the balance due from the Group’s various counterparties are internally determined from an assessment of each counterparty based on a combination of factors.These factors include financial strength and the ability of the counterparty to service its debts, the stability of the industry or market in which it operates and its proven track record with the Group. The categories defined are as follows:Superior: This category includes balances due from the Government and Government

agencies that have been secured by a letter of comfort from the Government and balances due from institutions that have been accorded the highest rating by an international rating agency or is considered to have the highest credit rating. These balances are considered risk free.

Desirable: These are balances due from counterparties that are considered to have good financial strength and reputation.

Acceptable: These are balances due from counterparties that are considered to have fair financial strength and reputation.

Sub-standard: Balances that are impaired.The table below illustrates the credit quality of the Group’s trade accounts receivable as at December 31: Superior Desirable Acceptable Sub-standard Total $ $ $ $ $

2019 3,613 735 - 11,439 15,7872018 7,660 2,883 - 14,176 24,719

16) FINANCIAL INSTRUMENTS (continued)16.2) RISK MANAGEMENT (continued)Liquidity risk (continued)


ANNUAL REPORT 2019



17) OTHER CURRENT LIABILITIESAs of December 31, 2019 and 2018, consolidated other current liabilities were as follows:

2019 2018 $ $

Provisions 1 41,016 37,445Due to related parties 1,370 4,763Other accounts payable and accrued expenses 2 307 455 42,693 42,663

1 Current provisions primarily consist of accrued employee benefits, insurance payments, accruals for legal assessments and others. In 2018, the amount in this caption was split between the captions “Restructuring costs and other obligations” and “Sundry payables and accruals”.

2 “Other accounts payable and accrued expenses” comprises very short-term accruals for VAT, NIS and expenses. This caption was previously included with the item “Sundry payables and accruals” in the 2018 consolidated financial statements.

The amounts in this caption were previously included in the caption “Payables and accruals” together with “Trade payables” in the 2018 consolidated financial statements.

18) PENSIONS AND POST-EMPLOYMENT BENEFITSDefined benefit pension plansThe Parent participates in a defined benefit pension plan (“the Plan”) which is a final salary plan for its employees, which requires contributions to be made to a separately administered fund (“the Fund”).This Plan is governed by the employment laws of Trinidad and Tobago, which require final salary payments to be adjusted for the consumer price index once in payment during retirement. The level of benefits provided depends on the members’ length of service and salary at retirement age.The Fund has the legal form of a foundation and it is governed by the Board of Trustees, which consists of an equal number of employer’s and employees’ representatives. The Board of Trustees is responsible for the administration of the Plan’s assets and for the definition of the investment strategy.The Plan’s financial funding position is assessed by means of triennial actuarial valuations carried out by an independent actuary, Bacon Woodrow & de Souza Limited. The Actuarial Valuation report as at December 31, 2018 revealed that the Group’s section of the Plan was in deficit of $2.1 million and the Group could continue to make its contributions above the rate of 15.7% of pensionable earnings. The next triennial Actuarial Valuation is due as at December 31, 2021.The Plan’s assets are invested in a strategy agreed with the Plan’s Trustee and Management Committee. This strategy is largely dictated by statutory constraints and the availability of suitable investments.The Barbados subsidiary had participated in a defined benefit pension plan, operated by a fellow subsidiary of TCL, which is a final salary plan for the subsidiary’s employees

ANNUAL REPORT 2019




18) PENSIONS AND POST-EMPLOYMENT BENEFITS (continued)Defined benefit pension plans (continued)that required contributions to be made to a separately administered fund. As a result of cessation of PPCI Operations, the participation in that pension plan in respect of the subsidiary’s employees was terminated with effect from December 31, 2014. The subsidiary itself was dissolved on November 6, 2019. A potential defined benefit asset relating to the participation in that plan, based on its current actuarial position, has not been recognised in these financial statements.The data that follows relates to the defined benefit plan of the Group.Net period cost (income): 2019 2018 $ $

Recorded in operating expenses Service cost 1,474 (222)Recorded in other financial expenses Net interest cost 221 391Recorded in other comprehensive income Actuarial gains for the period (12,036) (3,201)Return on plan assets excluding interest income 364 3,217 (11,672) 16 (9,977) 185

For the years 2019 and 2018, actuarial (gains) losses for the period were generated by the following main factors:

2019 2018 $ $

Actuarial gains due to experience (12,693) (3,201)Actuarial losses due to demographic assumptions 657 – (12,036) (3,201)

As of December 31, 2019 and 2018, the reconciliation of the actuarial benefits obligations and pension plan assets, are presented as follows:

2019 2018 $ $

Change in benefits obligation:Projected benefit obligation at beginning of the period 75,879 74,612Service cost 1,353 (391)Interest cost 4,082 4,047Actuarial gains (12,036) (3,201)Benefits paid (3,359) (2,097)Employee contributions 465 2,909Projected benefit obligation at end of the period 66,384 75,879


ANNUAL REPORT 2019



Change in plan assets:Fair value of plan assets at beginning of the period 71,095 62,402Return on plan assets 3,861 3,656Administrative expenses (121) (169)Actuarial losses (364) (3,217)Employer contributions 1,681 10,520Benefits paid (3,359) (2,097)Fair value of plan assets at end of the period 72,793 71,095Net projected asset (liability) in the consolidated statement of financial position 6,409 (4,784)

As of December 31, 2019 and 2018, based on the hierarchy of fair values, plan assets are detailed as follows: 2019 2018

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total $ $ $ $ $ $ $ $

Cash 2,102 - - 2,102 3,930 - - 3,930Investments in TTD bonds - 35,702 - 35,702 - 36,014 - 36,014Investments in USD bonds - 5 - 5 - 5 - 5Total fixed- income securities 2,102 35,707 - 37,809 3,930 36,019 - 39,949Investment in marketable securities 34,624 - - 34,624 30,689 - - 30,689Other investments and private funds - 89 271 360 - 108 349 457Total variable- income securities 34,624 89 271 34,984 30,689 108 349 31,146Total plan assets 36,726 35,796 271 72,793 34,619 36,127 349 71,095

The most significant assumptions used in the determination of the benefit obligation were as follows: 2019 2018

Discount rates 5.50% 5.50%Rate of promotional salary increases 0.00% 0.00%Rate of future inflationary salary increases 5.00% 5.00%Rate of future pension increases 0.00% 0.00%

18) PENSIONS AND POST-EMPLOYMENT BENEFITS (continued)Defined benefit pension plans (continued)

2019 2018 $ $

ANNUAL REPORT 2019




2019 2018 Male Female Male Female

Life expectancy at age 60 for current pensioners in years 21.7 26.0 21.0 25.1Life expectancy at age 60 for current members aged 40 in years 22.6 26.9 21.4 25.4As of December 31, 2019 and 2018, the aggregate projected benefit obligation (“PBO”) for pension plans and other post-employment benefits and the plan assets by country were as follows: 2019 2018 PBO Assets Surplus PBO Assets Deficit $ $ $ $ $ $

Trinidad & Tobago 66,384 72,793 6,409 75,879 71,095 4,784

Sensitivity analyses of pension and other post-employment benefitsFor the year ended December 31, 2019, Readymix (West Indies) Limited performed sensitivity analyses on the most significant assumptions that affect the PBO, considering reasonable independent changes of plus or minus 100 basis points in each of these assumptions. The increase (decrease) that would have resulted in the PBO of pensions and other post-employment benefits as of December 31, 2019 are shown below: Pension +100 bps -100 bpsAssumptions: $ $

Discount Rate Sensitivity (8,382) 10,462Salary Increase Rate Sensitivity 3,318 (2,934)An increase of 1 year in the assumed life expectancies would increase the defined pension benefit obligation as at December 31, 2019 by $774.The weighted average duration of the defined obligation for the pension plan at the end of the reporting period is 14.8 years (2018: 17.4 years).

19) TAXATION19.1) TAXATION FOR THE PERIODThe amounts of taxation expense in the consolidated income statement for 2019 and 2018 are summarised as follows: 2019 2018 $ $

Current taxation 1,501 764Deferred taxation expense – (1,364) 1,501 (600)

18) PENSIONS AND POST-EMPLOYMENT BENEFITS (continued)Defined benefit pension plans (continued)


ANNUAL REPORT 2019



19) TAXATION (continued)19.2) DEFERRED TAXATIONAs of December 31, 2019 and 2018, the main temporary differences that generated the consolidated deferred taxation assets and liabilities are presented below:

2019 2018 $ $

Deferred tax assets:Tax loss carry forwards and other tax credits 11,340 6,557Others 7,427 7,740Total deferred tax assets, net in the consolidated statement of financial position 18,767 14,297Deferred tax liabilities:Property, machinery and equipment 11,097 4,693Investments and other assets 1,567 –Total deferred tax liabilities, net in the consolidated statement of financial position 12,664 4,693Net deferred tax assets (6,103) (9,604)

The breakdown of changes in deferred taxation during 2019 and 2018 was as follows: 2019 2018

$ $

Deferred taxation credited to the income statement – (1,364)Deferred taxation credited (charged) to stockholders’ equity 3,501 (5)Change in deferred taxation during the period 3,501 (1,369)

Deferred taxation relative to items of other comprehensive income during 2019 and 2018 were as follows:

2019 2018 $ $

Tax effects relative to actuarial (gains) and losses (note 18) (3,501) 5

19.3) RECONCILIATION OF EFFECTIVE TAXATION RATE For the years ended December 31, 2019 and 2018, the effective consolidated taxation rates were as follows:

2019 2018 $ $

Loss before taxation (17,216) (13,477)Taxation expense (recovery) (1,501) 600Effective consolidated taxation rate 1 8.7% -4.5%

1 The average effective tax rate equals the net amount of taxation revenue or expense divided by income or loss before taxation, as these line items are reported in the consolidated income statement.

ANNUAL REPORT 2019




2019 2018% $ % $

Trinidad & Tobago statutory tax rate

30.0 (5,165) 30.5 (4,110)Net expenses not deductible for tax purposes

(5.1) 875 (2.5) 339

Revenue tax: Green Fund Levy

(1.2) 205 (1.8) 255

Revenue tax: Business Levy

(2.4) 411 (3.8) 510Unrecognised effects during the year related to applicable tax consolidation regimes

(24.9) 4,290 (17.9) 2,406

Prior year under-accrual (5.1) 885 – –

Effective consolidated tax rate (8.7) 1,501 4.5 (600)

19.4) UNCERTAIN TAX POSITIONS AND SIGNIFICANT TAX PROCEEDINGSAs at December 31, 2019, a deferred tax asset of $8.8 million (2018: $2.4 million) in relation to tax losses and capital allowances available for reducing future tax payments was not recognised in the consolidated statement of financial position given a level of uncertainty regarding their utilisation within a reasonable time.Readymix (West Indies) Limited has tax losses of $27.7 million (2018: $21.9 million) available for set off against future taxable profits. These losses are subject to agreement with the respective tax authorities.

20) STOCKHOLDERS’ EQUITY20.1) STATED CAPITALAs of December 31, 2019 and 2018, the breakdown of common stock and additional paid-in capital was as follows:

2019 2018 $ $

Common stock 12,000 12,000As of December 31, 2019 and 2018 the common stock of Readymix (West Indies) Limited was presented as follows:Shares 2019 2018

Subscribed and paid shares 12,000 12,000

19) TAXATION (continued)19.3) RECONCILIATION OF EFFECTIVE TAXATION RATE (continued)


ANNUAL REPORT 2019



20) STOCKHOLDERS’ EQUITY (continued)20.1) STATED CAPITAL (continued)AuthorisedAn unlimited number of ordinary shares of no par value.Issued and fully paid12,000,000 ordinary shares of no par value.20.2) RETAINED EARNINGSThere are no legal reserve requirements with respect to retained earnings. As of December 31, 2019, the retained earnings amounted to $30,524 (2018: $45,548).The “Retained earnings” caption in the consolidated statement of financial position represents the retained earnings less the net loss for the year as “Net loss” is now included in this caption as well.20.3) NON-CONTROLLING INTERESTNon-controlling interestNon-controlling interest represents the share of non-controlling stockholders in the equity and results of subsidiaries. As of December 31, 2019 and 2018, non-controlling interest in equity amounted to nil and $4,901, respectively. In addition, in 2019 and 2018, non-controlling interests in net income were nil and nil, respectively.There was a non-controlling interest of 40% in the direct subsidiary Premix & Precast Concrete Inc as at December 31, 2018. The entity was dissolved on November 6, 2019. The entity recorded no income and no expenses in 2019 (2018: nil). The entity recorded a liability of $423 in 2018, of which $170 was attributable to non-controlling interest.

21) EARNINGS PER SHAREEarnings per share is computed by dividing net profit or loss attributable to the shareholders of the Parent for the year by the weighted average number of ordinary shares in issue during the year. Diluted earnings or loss per share is computed by adjusting the weighted average number of ordinary shares in issue for the assumed conversion of potential dilutive ordinary shares into issued ordinary shares. The Parent has no dilutive potential ordinary shares in issue.

ANNUAL REPORT 2019




The amounts considered for calculations of earnings per share in 2019 and 2018 were as follows:

2019 2018 $ $

Denominator (thousands of shares) Weighted-average number of shares outstanding 12,000 12,000Numerator Net loss from continuing operations (18,294) (12,877)Less: non-controlling interest net income – –Controlling interest net loss from continuing operations for basic earnings per share calculations (18,717) (12,877) Net income from discontinued operation 423 –Basic earnings per shareControlling interest basic loss per share (1.52) (1.07)Controlling interest basic loss per share from continuing operations (1.56) (1.07)Controlling interest basic earnings per share from discontinued operation 0.04 –

22) COMMITMENTS22.1) GUARANTEESOn November 29, 2018, Readymix (West Indies) Limited (“RML”), in its capacity as land owner, and East Lake Development Company, as the borrower, executed a loan agreement for $80 million with Republic Bank Limited for the financing of the East Lake Land Development Project. RML has guaranteed up to $21.765 million, collateralised by the land, to secure the repayment of principal and interest and other monies due and payable under the loan agreement.22.2) OTHER COMMITMENTSThere were three (3) capital commitments for $0.075 million (2018: $1.416 million) as at December 31, 2019. These capital commitments consist of the following:(i) N&N Agency Ltd for $0.025 million for completion of refurbishment of Melajo

building upgrade.(ii) Conrad Pierre for $0.016 million for refurbishment of 38RB Dragline.(iii) Gangi’s Machine Shop Services & Supplies for $0.034 million for refurbishment of

38RB Dragline.

21) EARNINGS PER SHARE (continued)


ANNUAL REPORT 2019



23) CONTINGENT LIABILITIES AND LEGAL PROCEEDINGSThe Group operates in a regulatory and legal environment that, by nature, has an element of litigation risk inherent to its operations. As a result, it is involved in various litigation and regulatory investigations and proceedings both in Trinidad and Tobago and in other jurisdictions, arising in the ordinary course of the Group’s business.The Company was assessed by the Board of Inland Revenue (BIR) for additional corporation taxes of principal and interest for income tax year 2004. The Company has formally objected to this assessment. No provision has been recorded for the exposure of $0.88 million (2018: $0.88 million) inclusive of estimated interest as at December 31, 2019 as the Directors are of the opinion that the liability is not considered probable.There were no contingent liabilities as at December 31, 2019 in respect of bonds (2018: $1.743 million).

24) LEASES24.1) OPERATING LEASESOperating leases represent the lease commitments of the Group that do not transfer substantially all of the risks and rewards incidental to the ownership of underlying assets. The accumulated future minimum lease payments in respect of operating leases are as follows:

2019 2018 $ $

Within one year – 241After one year, but less than five years – 1,204More than five years – 482 – 1,92724.2) FINANCE LEASES (IFRS 16)As described in note 2.1 the Group adopted IFRS 16 Leases effective January 1, 2019.The following balances were included as part of the balance of Property, Machinery and Equipment (note 15):

2019 Land and Machinery land and improvements Building equipment Total $ $ $ $

Carrying amount of right-of-use assets as at January 1, 2019 – 991 1,381 2,372Depreciation – (119) (846) (965)Carrying amount of right-of-use assets as at December 31, 2019 – 872 535 1,407

ANNUAL REPORT 2019




The following amount was included in the consolidated income statement within “Financial expense”: 2019 $

Interest expense on lease liabilities 175

The following amounts were included in the consolidated statement of cashflows with respect to leases: 2019 $

Interest paid for lease liabilities (175)Payment of lease liabilities (903)Total cash outflow (1,078)

The table below summarises the maturity profile of the Group’s lease liabilities based on their undiscounted cash flows at December 31. The balance includes future interest over the remaining term to maturity and therefore would differ from the carrying amounts shown in the consolidated statement of financial position.

2019 On Demand 1 year 2 to 5 years > 5 years Total $ $ $ $ $

Lease liabilities – 125 260 47 432Interest on lease liabilities – 418 686 365 1,469Total lease payments – 543 946 412 1,901

24) LEASES (continued)24.2) FINANCE LEASES (IFRS 16) (continued)


ANNUAL REPORT 2019



25) RELATED PARTIESAll significant balances and transactions between the entities that constitute the Readymix (West Indies) Limited Group have been eliminated in the preparation of the consolidated financial statements. These balances with related parties resulted primarily from: (i) the sale and purchase of goods between Group entities; (ii) the sale and/or acquisition of subsidiaries’ shares within the Readymix (West Indies) Limited Group; (iii) the invoicing of administrative services, rentals, trademarks and commercial name rights, royalties and other services rendered between Group entities.The definition of related parties includes entities or individuals outside the Readymix (West Indies) Limited Group, which, due to their relationship with Readymix (West Indies) Limited, may take advantage of being in a privileged situation. Likewise, this applies to cases in which Readymix (West Indies) Limited may take advantage of such relationships and obtain benefits in its financial position or operating results.For the years ended December 31, 2019 and 2018, in ordinary course of business, Readymix (West Indies) Limited has entered into transactions with related parties for the sale of products, purchase of services or the lease of assets.The significant related party transactions in 2019 and 2018 are as follows:

2019 2018 $ $

Purchases of goods 14,285 19,777Management fee expenses - Parent Company 5,264 4,436Interest income 113 332Reduction in investment in short-term deposits 9,481 29,961Disposal of long-term asset and logistics charge – 781Sales to East Lake Development Company Limited 6,682 9,422Surplus from the disposal of land to the East Lake Development Company Limited 2,510 –The balances with related companies were as follows:Receivables from Trinidad Cement Limited 6,838 16,375Receivables from TCL Ponsa Manufacturing Limited 11 11Receivables from Arawak Cement Company Limited – 3Receivables from TCL Guyana Inc 26 4Receivables from East Lake Development Company Limited 1,392 1,966 8,267 18,359Payable to Trinidad Cement Limited 1,339 4,393Payable to Arawak Cement Company Limited 31 -Payable to TCL Ponsa Manufacturing Limited – 3Payable to Superquimicos De Centroamerica S.A. – 367 1,370 4,763

ANNUAL REPORT 2019




25) RELATED PARTIES (continued)The Group holds short-term advances at year-end with the Parent Company, Trinidad Cement Limited (TCL), amounting to $6.7 million (2018: $16.1 million), which earns interest at a rate of 0.92% per annum and matures on March 15, 2020.Compensation of key management personnelKey management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company.

2019 2018 $ $

Short-term employee benefits 4,985 3,163Pension plan benefits 101 113

In 2019, the total remuneration of the directors was $0.133 million (2018: $0.220 million).

26) SUBSEQUENT EVENTS There are no events occurring after these consolidated statement of financial position date and before the date of approval of these consolidated financial statements by the Board of Directors that require adjustment to or disclosure in these consolidated financial statements.

27) MAIN SUBSIDIARIESThe main subsidiaries as of December 31, 2019 and 2018 were as follows: % InterestSubsidiary Country 2019 2018

Premix and Precast Concrete Inc (PPCI) Barbados N/A 40RML Property Development Company Trinidad and Tobago 100 100


ANNUAL REPORT 2019



28) EXPENSES BY NATURE 2019 2018 $ $

Advertising and promotion 186 18Bank charges 335 304Charitable contributions – 1Concrete pumping cost 2,728 (52)Consumables 10 –Customer services – 4Depreciation 7,958 5,455Equipment rentals 2,799 13,732Excess provisions from prior periods – (3,027)Finance income (113) (334)Financial expenses from pensions 221 391Fixed assets leasing financial expenses 175 –Foreign exchange results 3 5Freight 7,797 3,330Fuel and electricity 482 1,688Gain on disposal of property, machinery and equipment (1) (791)Insurance 443 565Legal expenses 156 1,539Office expenses 53 78Other expenses 1,305 (3,378)Other taxes – 53Personnel services 69 20Professional fees 990 1,712Impairment credit on trade receivables (1,196) (2,438)Quotes and subscriptions 20 46Raw materials 27,900 29,925Repairs and maintenance 1,158 4,362Restructuring expenses 11,711 14,641Security 2,327 2,604Technical services 5,264 4,436Telecommunications 593 606Training expenses – 90Travel 80 356Wages, salaries and personnel benefits 14,234 20,866 87,687 96,807

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