Download File - TCL Group

One of the most famous sites in the world, Stonehenge is believed to have been 

erected around 2500 B.C. and is still standing today. Similar to this historic 

monument, Readymix (West Indies) Limited, through effective leadership, 

has been built to last for generations. Stability, security and strength have been 

embedded into the very foundation of the organisation to create a company 

that can stand the test of time and weather the storms of the economy. 

Readymix (West Indies) Limited, a Caribbean icon that is here to stay!

Our MISSION 

To lead as a customer-driven producer and supplier of high quality pre-mixed concrete and related products and services, providing a superior 

rate of return to our shareholders, whilst being committed to the development of our human resources and the preservation of the environment. 

TABLE OF CONTENTS 

1 Mission Statement 

2 Board of Directors 

3 Corporate Information/Notice of Annual Meeting 

4 Management Team 

5 New Appointment 

6 Chairman’s Review 

8 Directors’ & Substantial Interests 

9 Independent Auditors’ Report 

10 Consolidated Statement of Financial Position 

11 Consolidated Income of Statement 

12 Consolidated Statement of Comprehensive Income 

13 Consolidated Statement of Changes in Equity 

14 Consolidated Statement of Cashflows 

16 Notes to the Consolidated Financial Statements 

46 Management Proxy Circular 

47 Proxy Form (Detachable)

2 

BUILD TO LAST FOR GENERATIONS 

(L-R) 

1 Mr. Satnarine Bachew 

2 Mr. Hollis Hosein 

3 Dr. Rollin Bertrand 

4 Mr. C.H. Wayne Manning 

5 Ms. Eutrice Carrington - Chairman 

6 Mr. Lawford Dupres 

7 Mr. Anton Ramcharan 

8 Mr. Lincoln Parmasar 

9 Mr. Arun K. Goyal

NOTICE OF ANNUAL MEETING 

Notice is hereby given that the ANNUAL MEETING of READYMIX 

(WEST INDIES) LIMITED for the year ended 31st December, 2010 

will be held at the CLR James Conference Room, Cipriani College 

of Labour and Co-operative Studies, Churchill Roosevelt Highway, 

Valsayn on 21st July, 2011 at 2:30 p.m. for the transaction of the 

following business: 

ORDINARY BUSINESS 

1. To receive and consider the Report of the Directors and the Audited 

Financial Statements for the financial year ended 31st December, 

2010, with the Report of the Auditors thereon. 

2. To elect Directors. 

3. To appoint Auditors and authorize the Directors to fix their 

remuneration for the ensuing year. 

4. To transact any other business which may be properly brought 

before the meeting. 

CORPORATE INFORMATION 

Company Secretary: 

Mrs. Isha Reuben-Theodore 

Registered Office: 

Tumpuna Road, Guanapo 

Arima, Trinidad, W.I. 

Tel: (868) 643-2429/2430 

Fax: (868) 643-3209 

Email: rmlinfo@tclgroup.com 

Registrar: 

Trinidad & Tobago Central Depository Limited 

10th Floor, Nicholas Tower 

63-65 Independence Square 

Port of Spain, Trinidad, W.I. 

Auditors: 

Ernst & Young 

5-7 Sweet Briar Road, St. Clair 


Attorneys At Law: 

J.D. Sellier & Company 

129–131 Abercromby Street 


NOTES 

1. Record Date 

The Directors have fixed Tuesday 21st June, 2011 as the record 

date for shareholders entitled to receive notice of the Annual 

Meeting. Formal notice of the Meeting will be sent to shareholders 

on the Register of Members as at the close of business on that 

date. A list of such shareholders will be available for examination 

by shareholders at the registered office of The Trinidad & 

Tobago Central Depository, 10th Floor, Nicholas Tower, 63-65 

Independence Square, Port of Spain during usual business hours 

and at the Annual Meeting. 

2. Proxies 

Members of the Company entitled to attend and vote at the 

Meeting are entitled to appoint one or more proxies to attend 

and vote instead of them. A proxy need not also be a member. 

Where a proxy is appointed by a corporate member, the form of 

proxy should be executed under seal or signed by some officer or 

attorney duly authorized. 

To be valid, the Proxy Form must be completed and deposited at 

the registered office of The Trinidad & Tobago Central Depository, 

10th Floor, Nicholas Tower, 63-65 Independence Square, Port of 

Spain, not less than 48 hours before the time fixed for holding the 

Meeting. 

BY ORDER OF THE BOARD 

…………………………………................ 

ISHA REUBEN-THEODORE 

COMPANY SECRETARY 

13th June, 2011 

3 

BUILD TO LAST FOR GENERATIONS

(L-R) 

1 Mr. Richard Dash (Materials Manager) 

2 Mr. Dexter East (Operations Manager) 

3 Ms. Nicole Giuseppi (Senior Human Resource Specialist) 

4 Mr. Malcolm Smith (Plant Manager - Premix & Precast Concrete Inc.) 

5 Mr. Manan Deo (General Manager) 

6 Mr. Austin Rodriguez (Technical Services Manager) 

7 Mrs. Isha Reuben-Theodore (Corporate Services Manager) 

8 Mr. John Cardenas (Marketing Manager) 

4 


Lincoln Parmasar 

Lincoln Parmasar has been with the TCL Group since April 1995, holding a 

number of senior positions. He is currently the Group’s Finance Manager, 

having assumed the position from August 1, 2009. Mr. Parmasar has many years 

of experience in the field of accounting, having previously worked at a public 

auditing firm and in the energy sector. He is a Fellow of the Chartered Association 

of Certified Accountants (FCCA) and a member of the Institute of Chartered 

Accountants of Trinidad and Tobago (ICATT), as well as a graduate (Upper 

Second Class Honours) of the University of the West Indies with a Bachelor’s 

Degree in Accounting. 

5 


CHAIRMAN’S REVIEW - 2010 

RML Group sales and profit performance continued its decline 

in 2010, a trend which started in 2008 when evidence of the 

global economic recession took hold, affecting the markets 

of the Region, particularly Trinidad & Tobago, Barbados, and 

St Maarten/St Martin, where RML operations were located. 

Those respective territories were further affected by political 

uncertainty during the year. In the second quarter of 2010, 

a general election was announced and held in Trinidad & 

Tobago. In Barbados, Prime Minister David Thompson became 

terminally ill and subsequently passed away during his term 

of office, while in St Maarten, the island took a further step 

towards self-government from the Netherlands, and with it, the 

announcement of further fiscal measures including the increase 

of Turnover Tax from 2% to 5%. These critical events created 

additional uncertainty in construction activity in the respective 

territories. 

In Trinidad & Tobago, where government-initiated projects 

and large commercial ventures generally account for more 

than 60% of all concrete sales, there was a continued decline in 

activity with the shutdown of several projects and the shelving 

of others previously earmarked for start-up. In Barbados, the 

economy remained weak, characterized by high fiscal deficit, 

slowing revenues and high expenditure on government’s current 

account. Investor confidence was generally soft and many 

construction projects in the tourism sector previously approved 

did not commence. In St Maarten/St Martin, new resident and 

resort developments which were at various stages of progress 

were halted, without news of a potential date for resumption. 

Given the depressed state of the market, the RML Board took a 

decision to cease operations in St Maarten/ St Martin and to put 

up for sale the shares of the company (ICNV / IC SARL). At 

year-end, there were no firm buyers identified for the company. 

6 


The Company improved its safety performance throughout 

the workplace, which coincided with workers displaying a 

heightened sense of safety awareness and ownership of the 

“Safety First” motto. In particular, there was a 77% decline 

in the number of vehicular accidents compared with the prior 

year. This improvement is directly attributed to a number of 

initiatives started in 2009, including programs in Defensive 

Driving and Vehicle Inspections, and a Management decision 

controlling the use of Company vehicles outside of employees’ 

work duties. 

For the financial year 2010, the Group recorded an overall 

net loss of $7.7M; this represented a significant shortfall 

compared with the profit of $9.7M of the prior year. 

During the year, RML remained the overall market leader, 

with 17 active participants in the pre-mix concrete market. 

Of these, 75% of the operators were involved in a more 

diversified offering, including the supply of concrete blocks, 

general construction, and asphalt paving services. As a result 

of the supply/demand relationship for concrete, average price 

fell during the year by 25%, in comparison with the prior 

year. In the Trinidad & Tobago market, RML sold 106,278m3 

in 2010, representing a 28% decline from 147,818m3 of the 

prior year. 

RML considered plans for diversifying outside of its core 

business, and entered into discussions which would involve 

joint venture arrangements and mutual sales agreements with 

reputable complementary-type business in the industry. The 

Company also increased the sale of quarry products, including 

pitrun and aggregates, to third-party purchasers, with overall 

revenue of $20.9M, an increase of 100% over the prior year. 

Other internal cost-cutting and efficiency-improvement 

initiatives were implemented, such as reduction in the areas 

of Wages, External Plant Hire, and Repairs and Maintenance, 

which yielded positive results in terms of cost; however, they 

could not reverse the overall loss which was realized. 

At the RML quarry, a comprehensive study was initiated to 

determine the location and extent of mineable pitrun reserves, 

and to develop a new mining and rehabilitation plan for the 

quarry lands. This project, due for completion in 2011, will 

assist in streamlining pitrun production for purposes such as 

for supply to the building of highways and agricultural access 

roads, in addition to the production of high quality aggregates. 

The Company is also reviewing the feasibility of establishing 

a modern wash plant at the quarry to replace the existing 

aggregates wash plant, which is over 25 years old, and which 

is characterized by issues such as frequent breakdowns, high 

maintenance cost, and lack of spares by suppliers. 

During the year, the Company continued the process of bilateral 

negotiations with the Union for a new Collective 

Agreement for employees. This matter started in 2009, 

and remained outstanding at year-end 2010, as there was a 

substantial difference in the positions between the respective 

parties. The matter was referred to the Ministry of Labour for 

conciliation, but has since been sent to the Industrial Court. 

The Company also pursued its thrust to diversify its operations 

into other territories, on the basis of a confirmed project. 

Particular focus was placed on Haiti, where parent Company 

TCL was involved in discussions for entering the market. A 

firm opportunity has not yet been identified, but the company 

will continue to explore potential projects in the New Year. 

For the year in review, PPCI sold 13,636m3 of concrete, a 

19% fall below the budgeted sales volume of 16,800m3 

and 1.9% below that of 2009.The depressed sales reflect the 

challenges during the year, as prospective home-builders 

remained cautious in the face of the prevailing economic 

difficulties and private investors further delayed construction 

of their approved projects until a clearer picture of economic 

recovery could be envisaged. 

During the year there was a decrease in the Group’s cash and 

cash equivalents of $19.5M. Challenges were experienced 

in the collection of receivables owed from contractors who 

worked on government-related projects. The Company 

used its lobby with business groups such as the Trinidad 

and Tobago Manufacturers Association and the Contractors 

Association to assist in eliciting payments on behalf of its 

clients. However, payments trickled, and at year-end almost 

60% of the Company’s receivables represented amounts due 

from government-related projects. 

Despite the challenging market and economic conditions of 

2010, RML maintained a strong financial position, and met 

and exceeded all of its financial covenants. In the midst of 

the challenges, the Company has positioned itself to improve 

its position as market leader, and to take advantage of 

opportunities which are anticipated in the various sectors in 

the economy. 

For the year ended, the stock price traded firm, with no change, 

at $31.35 per share for the entire year. The Board has agreed 

that no dividend will be paid to shareholders for the financial 

year 2010. 

Ms. Eutrice Carrington 

Chairman 

7 


DIRECTORS’ & SUBSTANTIAL INTERESTS 

DIRECTORS’ INTERESTS: 

In accordance with the provisions of Section 64 of the 

Securities Industry Act 1981 and the provisions of our 

Listing Agreement with the Stock Exchange, particulars 

of the interest of each Director in the Share Capital of the 

Company are set out below: 

Directors 

Ordinary Shares 

E. Carrington Nil 

R. Bertrand Nil 

A. Goyal Nil 

L. Dupres Nil 

H. Hosein Nil 

A. Ramcharan Nil 

C.H. Wayne Manning 

Nil 

S. Bachew Nil 

L. Parmasar Nil 

SUBSTANTIAL INTERESTS: 

A substantial interest means a holding of 5% or more of the 

issued share capital of the Company. 

No. of % of Issued 

Shares Share Capital 

Trinidad Cement 8,531,977 71.1% 

Limited 

Republic Bank 1,529,953 12.75% 

Limited -1162 

Colonial Life Ins. 670,646 5.59% 

Co. Trinidad Ltd. 

CONTRACTS 

No 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. 

DIRECTORS’ REPORT 

The Directors present their Report to the Members together 

with the Financial Statements for the year ended 31st 

December, 2010. 

FINANCIAL RESULTS 

Turnover 138,525 

Net Profit for the year (7,690) 

Translation Difference (85) 

Dividends 

Nil 

Retained Earnings Carried Forward 84,428 

DIVIDENDS 

The Board of Directors does not consider it prudent to 

approve a dividend for 2010, in light of the net losses 

recorded for the year. 

DIRECTORS 

In accordance with Clause 4.6.1 of By Law No. 1, Ms. Eutrice 

Carrington, Mr. Hollis Hosein and Mr. C.H. Wayne Manning 

retire by rotation and being eligible, offer themselves for reelection 

for a period up to the conclusion of the third Annual 

Meeting following. 

In accordance with Clause 4.4.2 of By Law No. 1, Mr. 

Lincoln Parmasar, having been appointed by the Board to 

fill a casual vacancy, is subject to re-election at the Annual 

Meeting for a period up to the conclusion of the third Annual 

Meeting following. 

AUDITORS 

The Auditors, Ernst & Young retire and being eligible, offer 

themselves for re-election. 

BY ORDER OF THE BOARD 

ISHA REUBEN-THEODORE 

Company Secretary 

8 


INDEPENDENT AUDITORS’ REPORT 

TO THE SHAREHOLDERS OF READYMIX (WEST INDIES) LIMITED 

We have audited 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 31 December 2010 and the consolidated income statement, consolidated 

statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then 

ended, and a summary of significant accounting policies and other explanatory information. 

Management’s responsibility for the financial statements 

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International 

Financial Reporting Standards, 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. 

Auditors’ responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance 

with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to 

obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. 

The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated 

financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 

entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate for 

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes 

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as 

evaluating the overall presentation of the consolidated financial statements. 

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

Opinion 

In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2010, 

and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. 

Emphasis of matter 

Without qualifying our opinion, we draw attention to Note 26 in the consolidated financial statements which indicates that subsequent to 

year end, on 14 January 2011, the ultimate parent company, Trinidad Cement Limited, publicly declared a moratorium on all debt service 

obligations due by all entities in the Trinidad Cement Limited Group, inclusive of Readymix (West Indies) Limited and its subsidiaries. 

Subsequent to the declaration date, debt service payments falling due have not been made. 

This condition, along with the matters set forth in the Note 26, indicates the existence of a material uncertainty that may impact the Group’s 

ability to continue as a going concern. 

Chartered Accountants 

5-7 Sweet Briar Road 

St. Clair, Port-Of-Spain 

Trinidad, West Indies 

17 May 2011 

9 


CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

AS AT 31 DECEMBER 2010 

(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated) 

31 December 

Notes 2010 2009 

$ $ 

Non–current assets 

Property, plant and equipment 7 39,859 46,419 

Goodwill 8 1,764 1,764 

Employee benefits asset 15 2,446 1,828 

Deferred tax assets 16 (b) 1,100 959 

45,169 50,970 

Current assets 

Inventories 9 47,412 42,867 

Receivables and prepayments 10 66,889 75,400 

Cash and cash equivalents 11 643 4,313 

114,944 122,580 

Assets classified as held for sale 25 3,178 – 

118,122 122,580 

Current liabilities 

Bank overdraft and advances 12 18,148 3,259 

Payables and accruals 13 29,104 46,974 

Current portion of borrowings 14 3,095 3,846 

50,347 54,079 

Liabilities associated with assets classified 

as held for sale 25 4,207 – 

Net current assets 63,568 68,501 

Non–current liabilities 

Borrowings 14 4,950 8,004 

Deferred tax liabilities 16 (b) 6,077 5,982 

11,027 13,986 

Total net assets 97,710 105,485 

Equity attributable to the parent 

Stated capital 17 12,000 12,000 

Retained earnings 84,428 91,876 

96,428 103,876 

Non-controlling interests 1,282 1,609 

Total equity 97,710 105,485 

The accompanying notes form an integral part of these financial statements. 

On 17 May 2011 the Board of Directors of Readymix (West Indies) Limited authorised these financial statements for 

issue and were signed on their behalf by: 

______________________ Director 

______________________ Director 

10 


CONSOLIDATED INCOME OF STATEMENT 

FOR THE YEAR ENDED 31ST DECEMBER, 2010 


Year ended 

31 December 

Notes 2010 2009 

Continuing operations $ $ 

Revenue 3 138,525 195,474 

Operating (loss)/profit 3 (2,580) 26,075 

Finance costs 4 (1,446) (1,637) 

Interest income 610 479 

(Loss)/profit before taxation from continuing operations (3,416) 24,917 

Taxation 5 (21) (5,864) 

(Loss)/profit for the year from continuing operations (3,437) 19,053 

Discontinued operations 

Loss for the year from discontinued operations 25 (4,253) (9,322) 

(Loss)/profit for the year (7,690) 9,731 

Attributable to: 

Equity holders of the Parent (7,362) 9,926 

Non-controlling interests (328) (195) 

(7,690) 9,731 

Basic and diluted (loss)/earnings per share: 

From continuing operations 6 ($0.26) $1.60 

From discontinued operations 6 ($0.35) ($0.78) 

($0.61) $0.82 


11 


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 



Year ended 

31 December 

2010 2009 

$ $ 

(Loss)/profit for the year (7,690) 9,731 

Other comprehensive income 

Exchange differences on translation of foreign operations (85) 18 

Total comprehensive (loss)/income for the year, net of tax (7,775) 9,749 

Attributable to: 

Equity holders of the Parent (7,448) 9,932 

Non-controlling interests (327) (183) 

(7,775) 9,749 


12 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 



Year ended 31st December, 2010 

Equity attributable to the parent 

Non 

Stated Retained Controlling Total 

capital earnings Total interests equity 

$ $ $ $ $ 

Balance at 1 January 2010 12,000 91,876 103,876 1,609 105,485 

Other comprehensive loss – (86) (86) 1 (85) 

Profit after taxation – (7,362) (7,362) (328) (7,690) 

Total comprehensive loss – (7,448) (7,448) (327) (7,775) 

Balance at 31 December 2010 12,000 84,428 96,428 1,282 97,710 

Year ended 31 December 2009 

Balance at 1 January 2009 12,000 84,344 96,344 1,792 98,136 

Other comprehensive income – 6 6 12 18 

Profit after taxation – 9,926 9,926 (195) 9,731 

Total comprehensive income – 9,932 9,932 (183) 9,749 

Dividends (Note 24) – (2,400) (2,400) – (2,400) 

Balance at 31 December 2009 12,000 91,876 103,876 1,609 105,485 


13 


CONSOLIDATED STATEMENT OF CASH FLOWS 



2010 2009 

$ $ 

Operating activities 


Loss before taxation from discontinued operations (4,253) (9,286) 

(Loss)/profit before taxation (7,669) 15,631 

Adjustments to reconcile profit before taxation to 

net cash generated by operating activities: 

Depreciation 9,211 9,798 

Increase in provision for doubtful debts 4,909 2,607 

Other non–cash items (35) (58) 

Interest expense (net) 1,540 1,924 

Employee benefits expense 1,914 2,076 

Loss/(gain) on disposal of property, plant and equipment 297 (4) 

10,167 31,974 

Changes in net current assets 

Increase in inventories (5,084) (2,511) 

Increase/(decrease) in receivables and prepayments 4,664 (8,506) 

(Decrease)/increase in payables and accruals (14,782) 7,332 

Cash (used in)/generated by operating activities (5,035) 28,289 

Taxation paid (1,222) (7,810) 

Net interest paid (1,399) (1,938) 

Pension contributions paid (2,532) (2,427) 

Net cash (used in)/generated from operating activities (10,188) 16,114 

Investing activities 

Additions to property, plant and equipment (5,518) (7,561) 

Proceeds from sale of property, plant and equipment – 38 

Net cash used in investing activities (5,518) (7,523) 


14 


CONSOLIDATED STATEMENT OF CASH FLOWS 



(Continued) 

2010 2009 

Financing activities $ $ 

Repayment of borrowings (3,805) (4,387) 

Dividends paid – (2,400) 

Net cash used in financing activities (3,805) (6,787) 

Net (decrease)/increase in cash and cash equivalents (19,511) 1,804 

Net cash/(borrowings) – beginning of year 1,054 (750) 

Net (borrowings)/cash – end of year (18,457) 1,054 

Represented by: 

Cash at bank and on hand (Note 11) 660 4,313 

Bank overdraft and advances (Note 11) (19,117) (3,259) 

(18,457) 1,054 


15 


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 



1. Incorporation and activities 

Readymix (West Indies) Limited (the “Company”) is a limited liability company incorporated and resident in the Republic of Trinidad and 

Tobago and its shares are publicly listed on the Trinidad and Tobago Stock Exchange. The Company is the parent company of subsidiaries 

located in Barbados, St. Maarten and St. Martin. The registered office of the parent company is Tumpuna Road, Guanapo, Arima. Trinidad 

Cement Limited, also incorporated in the Republic of Trinidad and Tobago, is the ultimate parent company and as at 31 December 2010 

holds 71% (2009: 71%) of the issued ordinary shares of the Company. Readymix (West Indies) Limited has a 100% shareholding in 

Island Concrete Products N.V and Island Concrete SARL companies, which are registered and located in St. Maarten and St. Martin 

respectively. The Company also holds a 60% shareholding in Premix & Precast Concrete Incorporated, a company incorporated and 

operating in Barbados. 

Readymix (West Indies) Limited and its subsidiaries (the “Group”) operate in Trinidad and Tobago and Barbados. As described in Note 

25, the operations of the St. Maarten and St. Martin subsidiaries were discontinued in 2010. 

The principal business activities of the Group are the manufacture and sale of pre–mixed concrete and the winning and sale of sand and 

gravel. 

2. Significant accounting policies 

a) Basis of preparation 

The consolidated financial statements of the Group are prepared under the historical cost convention. 

Statement of Compliance 

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards 

(IFRS) as issued by the International Accounting Standards Board (IASB). 

Changes in accounting policy and disclosures 

The accounting policies adopted are consistent with those of the previous financial year except that the Group has adopted the 

following new and amended IFRS and IFRIC (International Financial Reporting Interpretations Committee) interpretations as of 1 

January 2010: 

• IFRS 2 Share-based Payment: Group Cash-settled Share-based Payment Transactions effective 1 January 2010 

• IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate Financial Statements (Amended) 

effective 1 July 2009 

• IAS 39 Financial Instruments; Recognition and Measurement – Eligible Hedged Items effective 1 July 2009 

• IFRIC 17 Distributions of Non-cash Assets to Owners effective 1 July 2009 

• Improvements to IFRSs (May 2008 and April 2009) 

Adoption of these Standards and Interpretations did not have any effect on the financial performance or position of the Group. 

The Group has not adopted early the following new and revised IFRS’s and IFRIC interpretations that have been issued but are not 

yet effective or not relevant to the Group’s operations: 

IAS 24 Related Party Disclosures (Amendment) (effective 1 January 2011) It clarified the definition of a related party to simplify 

the identification of such relationships and to eliminate inconsistencies in its application. The revised standard introduces a partial 

exemption of disclosure requirements for government related entities. The Group does not expect any impact on its financial position or 

performance. Early adoption is permitted for either the partial exemption for government-related entities or for the entire standard. 

16 





(Continued) 

2. Significant accounting policies (continued) 

a) Basis of preparation (continued) 

Changes in accounting policy and disclosures (continued) 

The Group has not adopted early the following new and revised IFRS’s and IFRIC interpretations that have been issued but are not 

yet effective or not relevant to the Group’s operations:(continued) 

IAS 32 Financial Instruments: Presentation Classification of Rights Issue (Amendment) (effective 1 February 2010). Amended the 

definition of a financial liability in order to classify rights issues (and certain options or warrants) as equity instruments in cases where 

such rights are given pro rata to all of the existing owners of the same class of an entity’s non-derivative equity instruments, or to 

acquire a fixed number of the entity’s own equity instruments for a fixed amount in any currency. The amendment will have no impact 

on the Group after intial application. 

IFRS 9 Financial Instruments: Classification and Measurement (effective 1 January 2013) IFRS 9 as issued reflects the first phase 

of the IASB’s work on the replacement of IAS 39 and applies to classification and measurement of financial assets as defined in 

IAS 39. In subsequent phases, the IASB will address classification and measurement of financial liabilities, hedge accounting and 

de-recognition. The adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Group’s 

financial assets. 

IFRIC 14 Prepayments of a minimum funding requirement (Amendment) (effective 1 January 2011) The amendment provides guidance 

on assessing the recoverable amount of a net pension asset. The amendment permits an entity to treat the prepayment of a minimum 

funding requirement as an asset. The amendment is deemed to have no impact on the financial statement of the Group. 

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective 1 July 2010) The interpretation clarifies that equity 

instruments issued to a creditor to extinguish a financial liability qualify as consideration paid. The equity instruments issued are 

measured at their fair value. In case that this cannot be reliably measured, the instruments are measured at the fair value of the liability 

extinguished. Any gain or loss is recognized immediately in consolidated income statement. The adoption of this interpretation will 

have no effect on the financial statements of the Group. 

Improvements to IFRSs (issued in May 2010) 

The IASB issued Improvements to IFRSs, an omnibus of amendments to its IFRS standards. The amendments have not been adopted 

as they become effective for annual periods on or after 1 July 2010 or 1 January 2011. The amendments listed below are considered 

to have a reasonable possible impact on the Group or are not relevant to the Group’s operations: 

• IFRS 3 Business Combinations 

• IFRS 7 Financial Instruments: Disclosures 

• IAS 1 Presentation of Financial Statements 

• IAS 27 Consolidated and Separate Financial Statements 

• IFRIC 13 Customer Loyalty Programmes 

17 





(Continued) 


b) Basis of consolidation 

These consolidated financial statements comprise the financial statements of Readymix (West Indies) Limited (the “Parent”) and its 

subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent, using consistent 

accounting policies. Subsidiary undertakings, being those companies in which the Group, directly or indirectly has an interest of more 

than one half of the voting rights, are fully consolidated from the date of acquisition, being the date on which the Group obtained 

control. All intercompany transactions, balances and unrealised surpluses and deficits on transactions between group companies are 

eliminated in full. 

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 statement of income, comprehensive income and within equity in the consolidated statement of financial position. 

c) Significant accounting judgments, estimates and assumptions 

The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that 

affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reporting 

dates. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to 

the carrying amount of the asset or liability affected in future periods. The key judgments, estimates and assumptions concerning 

the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material 

adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: 

Deferred tax assets 

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against 

which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can 

be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. 

Pension benefits 

The cost of defined benefit pension plans as well as the present value of the pension obligation is determined using actuarial valuations. 

The actuarial valuation involves making judgments 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 these plans, such assumptions are subject to 

significant uncertainty. All assumptions are reviewed at the reporting date. 

Property, plant and equipment 

Management exercises judgment in determining whether cost 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. 

Impairment of goodwill 

The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the ‘value-in-use’ of the 

cash generating units to which the goodwill is allocated. Estimating a value-in-use amount requires management to make an estimate 

of the expected future cash flows from the cash generating units and also to choose a suitable discount rate in order to calculate the 

present value of those cash flows. Further details are provided in Note 8. 

18 





(Continued) 


d) Business combinations and goodwill 

Business combinations from 1 January 2010 

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the 

consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For 

each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the proportionate 

share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed and included in administrative expenses. 

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation 

in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the 

separation of embedded derivatives in host contracts by the acquiree. 

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the 

acquiree is remeasured to fair value at the acquisition date through the consolidated income statement. 

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent 

changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance 

with IAS 39 either in the consolidated income statement or as a change to other comprehensive income. If the contingent consideration 

is classified as equity, it should not be remeasured until it is finally settled within equity. 

Goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized 

for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair 

value of the net assets of the subsidiary acquired, the difference is recognized in consolidated statement of income. 

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, 

goodwill acquired in a business combination is, from the acquisition date, allocated each of the Group’s cash-generating units that 

are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those 

units. 

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated 

with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of 

the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the 

portion of the cash-generating unit retained. 

Business combinations prior to 1 January 2010 

In comparison to the above-mentioned requirements, the following differences applied: 

Business combinations were accounted for using the purchase method. Transaction costs directly attributable to the acquisition formed 

part of the acquisition costs. The non-controlling interest (formerly known as minority interest) was measured at the proportionate 

share of the acquiree’s identifiable net assets. 

Business combinations achieved in stages were accounted for as separate steps. Any additional acquired share of interest did not affect 

previously recognized goodwill. 

When the Group acquired a business, embedded derivatives separated from the host contract by the acquiree were not reassessed on 

acquisition unless the business combination resulted in a change in the terms of the contract that significantly modified the cash flows 

that otherwise would have been required under the contract. 

Contingent consideration was recognized if, and only if, the Group had a present obligation, the economic outflow was more likely 

than not and a reliable estimate was determinable. Subsequent adjustments to the contingent consideration were recognized as part 

of the goodwill. 

19 





(Continued) 


e) Property, plant and equipment 

It is the Group’s policy to account for property, plant and equipment at cost less accumulated depreciation and/or accumulated 

impairment losses, if any (Note 7). Such cost includes the cost of replacing part of the property, plant and equipment and borrowing 

costs for long-term construction projects if the recognition criteria are met. All other repairs and maintenance are recognised in the 

consolidated income statement. 

Depreciation is provided on the straight line basis at rates estimated to write–off the assets over their expected useful lives. The 

estimated useful lives of assets are reviewed periodically, taking account of commercial and technological obsolescence as well as 

normal wear and tear, and the depreciation rates are adjusted if appropriate. 

Current rates of depreciation are: 

Buildings – 2% – 4% 

Plant, machinery and equipment – 3% – 40% 

Motor vehicles – 10% – 20% 

Office furniture and equipment – 10% – 25% 

Leasehold improvements are amortised over the remaining term of the lease. Land and work–in–progress are not depreciated. 

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 asset) is included in the statement of income in the year the asset is derecognised. 

f) Inventories 

Plant spares and raw materials are valued at the lower of cost and net realizable value using the average cost method. Work in progress 

and finished goods are valued at the lower of cost, including attributable production overheads, and net realizable value. Net realizable 

value is the estimate of the selling price less costs of completion and direct selling expenses. 

g) Foreign currency translation 

The consolidated financial statements are presented in Trinidad and Tobago dollars (expressed in thousands), which is the Group’s 

functional and presentation currency. That is the currency of the primary economic environment in which the Group operates. 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. 

Foreign currency transactions and balances 

Transactions in foreign currencies are initially recorded in the functional currency at the rate ruling at the date of the transaction. 

Monetary assets and liabilities denominated in foreign currencies are translated into Trinidad and Tobago dollars at the rate of exchange 

ruling at the reporting date. Non–monetary assets and liabilities are translated using exchange rates that existed when the values were 

determined. Exchange differences on foreign currency transactions are recognized in the consolidated income statement. 

Foreign entities 

On consolidation, assets and liabilities of foreign entities are translated into Trinidad and Tobago dollars at the rate of exchange 

ruling at the reporting date and their income statements are translated at exchange rates at the date of the transaction. The exchange 

differences arising on re-translation are taken directly to Consolidated Statement of Comprehensive Income. On disposal of the 

foreign entity, the deferred cumulative amount recognized in equity relates to that particular foreign operation is recognized in the 

consolidated income statement. 

20 





(Continued) 


h) Taxation 

Current income tax 

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from 

or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively 

enacted by the reporting date. 

Deferred income tax 

A deferred tax charge is provided, using the liability method, on all temporary differences between the tax bases of assets and 

liabilities and their carrying amounts for financial reporting purposes. 

Deferred tax assets are recognized for all deductible temporary differences, carry–forward of unused tax credits and unused tax losses, 

to the extent that it is probable that future taxable profit will be available against which these deductible temporary differences, and 

carry-forward of unused tax credits and tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each 

reporting date and reduced to the extent that it is no longer probable that sufficient future taxable profit will be available to allow all 

or part of the deferred tax assets to be utilised. 

i) Employee benefits 

The parent company employees are members of the Trinidad Cement Limited Employee’s pension plan, while Premix & Precast 

Concrete Incorporated’s employees are members of the Arawak Cement Limited Employee’s pension plan. The pension plans are 

generally funded by payments from employees and by the relevant Group companies, taking account of the rules of the pension plans 

and recommendations of independent qualified actuaries. 

The Group accounts for this defined benefit plan using the projected unit credit method. Under this method, the cost of providing 

pensions is charged to the consolidated income statement so as to spread the regular cost over the service lives of the employees 

in accordance with the advice of independent actuaries who carry out a full valuation every three years. The pension obligation 

is measured at the present value of the estimated future cash outflows using interest rates of long term government securities. All 

actuarial gains and losses are spread forward over the average remaining service lives of employees. 

j) Financial instruments 

Financial instruments carried on the statement of financial position include cash and bank balances including advances/overdrafts, 

accounts payables, accounts receivables and borrowings. The particular recognition methods adopted are disclosed in the individual 

policy statements associated with each items. 

k) Cash and cash equivalents 

For the purpose of the statement of cash flows, cash and cash equivalents include all cash and bank balances and overdraft balances 

with maturities of less than three months from date of establishment. 

l) Revenue recognition 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably 

measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes. The 

following specific recognition criteria must be met before revenue is recognised: 

Sales of concrete and other materials 

Revenue from the sale of concrete and other materials is recognised when the significant risks and rewards of ownership of the goods 

have passed to the buyer, usually on delivery of the goods. 

Interest income 

Interest income is recognized as interest accrues. 

21 





(Continued) 


m) Trade and other receivables 

Trade and other receivables are carried at anticipated realisable value. A provision is made for doubtful receivables based on a review 

of all outstanding amounts at year end. 

n) Trade and other payables 

Liabilities for trade and other amounts payable, which are normally settled on 30–90 day terms are carried at cost, which is the fair 

value of the consideration to be paid in the future for goods and services received whether or not billed to the Group. 

o) Earnings per share 

Earnings per share is computed by dividing net profit 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 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 Group has 

no potential dilutive ordinary shares in issue. 

p) Provisions 

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that 

an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. 

q) Leases 

Operating leases 

Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating 

leases. Payments made under operating leases are charged to the consolidated income statement on a straight-line basis over the period 

of the lease. 

Finance leases 

Finance leases which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are 

capitalised at the inception of the lease at the fair value of the leased assets or if lower, at the present value of the minimum lease 

payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant 

rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalised leased assets 

are depreciated over the shorter of the estimated useful life of the asset or the lease term. 

r) Interest bearing loans and borrowings 

Borrowings are initially stated at cost, being the fair value of the consideration received, net of issue costs associated with the 

borrowings. After initial recognition, borrowings are stated at amortised cost using the effective yield method; any difference between 

proceeds and the redemption value is recognised in the consolidated income statement over the period of the borrowings. 

s) Borrowing costs 

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial 

period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing 

costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with 

the borrowing of funds. 

22 





(Continued) 


t) Impairment of assets 

Non–financial assets 

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, 

or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s 

recoverable amount is the higher of an asset’s or cash generating unit’s fair value less costs to sell and its value in use and is determined 

for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups 

of assets. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down 

to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax 

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 

Impairment losses of continuing operations are recognized in the statement of income in those expense categories consistent with the 

function of the impaired asset. 

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may 

no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously 

recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable 

amount since the last impairment loss was recognized. If that is the case the carrying amount of the asset is increased to its recoverable 

amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no 

impairment been recognized for the asset in prior years. Such reversal is treated as a revaluation increase. 

Financial assets 

The carrying value of all financial assets not carried at fair value through the statement of income is reviewed for impairment 

whenever events or circumstances indicate that the carrying amount may not be recoverable. The identification of impairment and 

the determination of recoverable amounts is an inherently uncertain process involving various assumptions and factors, including the 

financial condition of the counterparty, expected future cash flows, observable market prices and expected net selling prices. 

u) Non-current assets held for sale and discontinued operations 

Non-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. 

In the consolidated income statement of the reporting period, and of the comparable period of the previous year, income and expenses 

from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of 

profit after taxes, even when the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss 

(after taxes) is reported separately in the income statement. 

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised. 

v) Comparative information 

Certain changes in the presentation of comparative information have been made in these financial statements. These changes relate 

to the reclassification of an amount of $5.1 million previously presented within cash and cash equivalents, now presented within 

amounts due from related parties (note 18) as at 31 December 2009. This also resulted in a corresponding reduction in the cash and 

cash equivalents balance as at 31 December 2009. 

Comparatives were also amended in the consolidated income statement and related notes to reflect the separate presentation of the 

results of the discontinued operations as described in Note 25. 

These changes had no effect on the net assets or operating results of the previous year. 

23 





(Continued) 

2010 2009 

3. Operating (loss)/profit – continuing operations $ $ 

Revenue 138,525 195,474 

Less expenses: 

Raw materials and consumables 46,300 64,842 

Personnel remuneration and benefits 37,225 40,384 

Equipment hire 21,318 30,459 

Repairs and maintenance 9,486 9,870 

Other operating expenses 17,398 15,108 

Provision for doubtful debts 3,397 867 

Depreciation 9,211 8,682 

Fuel and electricity 3,455 3,005 

Insurance 1,460 703 

Exchange loss/(gain) 58 (122) 

Changes in raw materials and work in progress (7,299) (3,598) 

(3,484) 25,274 

Other income 904 801 

Operating (loss)/profit (2,580) 26,075 

Included net in other income is a loss on disposal of property, plant and equipment of $0.297 million (2009: gain 

of $0.004 million). 

2010 2009 

Personnel remuneration and benefits include: $ $ 

Salaries and wages 31,532 33,496 

Pension cost – defined benefit plan (Note 15 (a)) 1,914 2,076 

Other benefits 2,303 3,279 

National insurance 1,476 1,533 

37,225 40,384 

24 





(Continued) 

4. Finance costs 

5. Taxation 

2010 2009 

$ $ 

Interest costs 1,446 1,637 

a) Taxation charge 

Deferred taxation (46) 366 

Prior year over accrual (55) – 

Current taxation 122 5,498 

21 5,864 

b) Reconciliation of applicable tax charge to effective tax charge 


Loss before taxation from discontinued operations (4,253) (9,286) 

(Loss)/profit before taxation (7,669) 15,631 

Tax calculated at the rate of 25% (1,917) 3,908 

Effect of different tax rates outside Trinidad and Tobago (93) (433) 

Net effect of other charges and allowances 1,160 1,185 

Prior year over accrual (55) – 

Effect of disallowed expenses 804 1,026 

Business levy 122 178 

Taxation charge reported in the consolidated 

income statement – continuing operations 21 5,864 

Taxation charge attributable to a discontinued 

operation – 36 

21 5,900 

25 





(Continued) 

6. Earnings per share 

2010 2009 

$ $ 

The following reflects the income and share data used in the earnings per 

share computation: 

Net (loss)/profit for the year attributable to equity holders 

of the Parent - continuing operations (3,109) 19,248 

Net loss for the year attributable to equity holders 

of the Parent - discontinued operations (4,253) (9,322) 

Net (loss)/profit for the year attributable to equity holders total company (7,362) 9,926 

Weighted average number of ordinary shares issued (thousands) 12,000 12,000 

Basic and diluted loss per share – continuing operations 

(expressed in $ per share) ($0.26) $1.60 

Basic and diluted loss per share – discontinued operations ($0.35) ($0.78) 

Basic and diluted (loss)/earnings per share – total company 

(expressed in $ per share) ($0.61) $0.82 

The Company has no dilutive potential ordinary shares in issue. 

26 





(Continued) 

7. Property, plant and equipment 

At 31st December, 2010 

Plant 

machinery 

and 

Land equipment Office 

and and furniture and Capital 

buildings motor vehicles equipment WIP Total 

$ $ $ $ $ 

Cost 23,761 119,639 7,716 2,300 153,416 

Accumulated depreciation (11,141) (96,120) (6,296) – (113,557) 

Net book amount 12,620 23,519 1,420 2,300 39,859 

1 January 2010 11,853 29,927 1,706 2,933 46,419 

Additions 97 2,680 319 2,422 5,518 

Transfer from WIP 2,716 339 – (3,055) – 

Discontinued operations (Note 25) (485) (2,065) (72) – (2,622) 

Disposals and adjustments – (245) – – (245) 

Depreciation charge (1,561) (7,117) (533) – (9,211) 

31 December 2010 12,620 23,519 1,420 2,300 39,859 

At 31 December 2009 

Cost 24,950 126,981 7,908 2,933 162,772 

Accumulated depreciation (13,097) (97,054) (6,202) – (116,353) 

Net book amount 11,853 29,927 1,706 2,933 46,419 

1 January 2009 11,880 32,436 1,455 2,849 48,620 

Additions 1,529 2,927 1,127 1,978 7,561 

Transfer from WIP 10 1,884 – (1,894) – 

Disposals and adjustments – 36 – – 36 

Depreciation charge (1,566) (7,356) (876) – (9,798) 

31 December 2009 11,853 29,927 1,706 2,933 46,419 

The carrying value of plant and equipment held under finance lease at 31 December 2010 amounted to $4.0 million 

(2009: $5.4 million). These leased assets are pledged as security for the related finance lease obligation. 

27 





(Continued) 

8. Goodwill 

In accordance with International Financial Reporting Standard 3: “Business Combinations”, goodwill acquired 

through business combinations has been allocated to the Group’s cash generating units that are expected to benefit 

from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the cash 

generating units to which goodwill relates. Goodwill represents that arising from the acquisition of Premix & 

Precast Concrete Incorporated (PPCI) in 2002 as follows: 

2010 2009 

$ $ 

Goodwill at cost 1,764 1,764 

Accumulated impairment – – 

Net carrying amount 1,764 1,764 

Impairment testing of goodwill 

As required by IAS 36: Impairment of assets goodwill is subject to an annual impairment test. The following 

table highlights the goodwill and impairment information used in the impairment test performed at 31 December 

2010: 

Carrying amount of goodwill 1,764 

Basis of recoverable amount 

Value in use 

Discount rate 10.5% 

Cash flow projection term 

5 years 

Growth rate (extrapolation period) 1.0% 

The values assigned to key assumptions reflect past experience. The recoverable amount of business units has 

been determined based on value-in-use calculations using pre-tax cash flow projections based on financial budgets 

approved by senior management and the Board of Directors. 

2010 2009 

$ $ 

9. Inventories 

Raw materials and work in progress 38,158 31,744 

Plant spares and consumables 9,254 11,123 

47,412 42,867 

Inventories are shown net of provisions of $1.160 million (2009: $1.160 million) in relation to plant spares and 

consumables. Inventories charged against operating profit is disclosed in Note 3. 

28 





(Continued) 

2010 2009 

$ $ 

10. Receivables and prepayments 

Trade receivables 63,880 81,772 

Less: provision for doubtful debts (18,788) (18,340) 

Trade receivables (net) 45,092 63,432 

Sundry receivables and prepayments 790 2,437 

Due from related parties (Note 18 (a)) 15,683 5,989 

Deferred expenditure 1,139 420 

Corporation tax recoverable 4,185 3,122 

66,889 75,400 

As at 31st December, the aging analysis of trade receivables is as follows: 

Past due but not impaired 

Neither past 

Over 

Total due nor impaired 1-90 days 91-180days 180 days 

$ $ $ $ $ 

2010 45,092 4,035 6,753 2,420 31,884 

2009 63 432 7,954 16,119 16,298 23,061 

As at 31 December, trade receivables at a value of $18.8 million (2009: $18.3 million) were impaired and provided 

for. Movements in the provision for impairment of receivables were as follows: 

2010 2009 

$ $ 

At 1st January 18,340 15,733 

Charge for the year 5,107 3,573 

Unused amounts reversed (198) (966) 

23,249 18,340 

Discontinued operations (4,461) – 

At 31 December 18,788 18,340 

29 





(Continued) 

11. Cash and cash equivalents 

Cash at bank and on hand 643 4,313 

Cash at bank earns interest at floating rates based on daily deposits rates. 

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise the following at 

31 December: 

2010 2009 

$ $ 

Cash at bank and on hand – continuing operations 643 4,313 

Cash at bank and on hand (Note 25) – discontinued operations 17 – 

660 4,313 

Bank overdraft and advances (Note 12) – continuing operations (18,148) (3,259) 

Bank overdrafts (Note 25) – discontinued operations (969) – 

(18,457) 1,054 

2010 2009 

$ $ 

12. Bank overdraft and advances 

Bank overdraft 4,690 503 

Bankers’ acceptances 12,400 – 

Debt factoring 1,058 2,756 

18,148 3,259 

The overdraft facility held by Readymix (West Indies) Limited and Premix & Precast Concrete Incorporated attracts 

interest at a rate of 8.25% at 31 December 2010 (2009: 8.25). 

Bankers’ acceptances bear interest at 9.75% per annum and are secured by charges over the fixed and floating assets 

of the parent company and a first mortgage over property situated at Valencia. 

In 2010, RML entered into debt factoring arrangements, whereby trade receivable balances amounting to $3.2 million 

(2009: $13.9 million) was sold to American International Corporation Finance Limited (AIC). AIC discounted 

the receivables at a rate of 11.5% (2009: 11%). The $1.058 million liability represents the amount due to AIC in 

respect of the debt factoring under recourse. 

2010 2009 

$ $ 

13. Payables and accruals 

Due to related parties (Note 18 (a)) 5,427 15,445 

Sundry payables and accruals 12,344 14,830 

Trade payables 11,333 16,699 

29,104 46,974 

30 





(Continued) 

2010 2009 

$ $ 

14. Borrowings 

Amounts payable within: 

One year 3,095 3,846 

Two years 1,990 3,184 

Three years 1,940 1,835 

Four years 1,020 1,958 

Five and more years – 1,027 

8,045 11,850 

Current portion (3,095) (3,846) 

4,950 8,004 

Borrowings comprise: 

• A ten (10) year loan with an outstanding balance of $6.5 million (2009: $8.1 million), taken by the parent 

company carrying rates of interest of 6%, fixed for the first five years and variable over the remaining five 

years. At the end of 2010 the rate of interest was 5.5% (2009: 7.85%). The security for this loan is a first charge 

on the fixed and floating assets of Readymix (West Indies) Limited. 

• Medium term loans, with aggregate outstanding balance of $0.057 million (2009: $1.0 million), taken by 

Premix & Precast Concrete Incorporated, which bears a rate of interest of 9.7% (2009: 9.7%), and is secured 

by a charge over the fixed and floating assets of the company and a guarantee from Readymix (West Indies) 

Limited. 

• Finance leases which are included in borrowings at their net present values amounting to $1.5 million 

(2009:$2.8 million) bear interest at approximately 7% (2009:7%). 

As discussed further in Note 26, the ultimate parent company, Trinidad Cement Limited (TCL), has commenced 

negotiations with the majority of the TCL Group lenders for a re-profiling of the Group’s debt portfolio. This 

process when completed may alter the terms of the debt as described above. 

Finance leases 

Future minimum lease payments under these finance leases are as follows: 

2010 2009 

$ $ 

Amounts payable within: 

One year 1,378 1,502 

After one year but not more than five years 169 1,548 

Total minimum lease payments 1,547 3,050 

Less amounts representing interest charges (84) (258) 

Present value of minimum lease payments 1,463 2,792 

31 





(Continued) 

15. Employee benefits asset 

Pension plan-asset 2,446 1,828 

The details below were extracted from information supplied by independent professional actuaries. 

a) Amounts recognized in the statement of income are as follows: 

2010 2009 

$ $ 

Current service cost 2,175 2,261 

Past service cost – (50) 

Interest cost 1,954 2,003 

Actuarial loss 66 88 

Expected return on plan assets (2,281) (2,226) 

Total included in personnel remuneration and benefits (Note 3) 1,914 2,076 

Actual return on plan assets 1,501 1,585 

b) Movement in the pension plan benefit asset in the statement of financial position: 

Balance brought forward 1,828 1,473 

Total expense for the year (as shown above) (1,914) (2,076) 

Contributions paid 2,532 2,427 

Other movements – 4 

Net pension plan asset 2,446 1,828 

Pension asset recognized in the statement of financial position are as follows: 

Fair value of pension plan assets 30,146 25,620 

Present value of funded obligations (27,868) (26,062) 

2,278 (442) 

Unrecognized actuarial loss 168 2,270 

Pension plan asset 2,446 1,828 

Changes in the present value of the defined benefit obligation are as follows: 

Defined benefit obligation at 1 January 26,062 23,003 

Interest cost 1,954 2,003 

Current service cost 2,175 2,261 

Past service cost vested benefits – (50) 

Actuarial gain (2,813) (1,581) 

Benefits paid (278) (304) 

Members’ contributions 974 936 

Expense allowance (217) (212) 

Other adjustment 11 6 

Defined benefit obligation at 31 December 27,868 26,062 

32 





(Continued) 

15. Employee benefits asset (continued) 

b) Movement in the pension plan benefit asset in the statement of financial position: (continued) 

2010 2009 

$ $ 

Changes in the fair value of plan assets are as follows: 

Fair value of plan assets at 1 January 25,620 21,181 

Expected return 2,281 2,226 

Actuarial loss (766) (640) 

Benefits paid (278) (304) 

Employer and employees’ contribution 3,506 3,363 

Expense allowance (217) (206) 

Fair value of plans assets at 31 December 30,146 25,620 

The principal actuarial assumptions used for accounting purposes 

for the pension plans are: 

2010 2009 

$ $ 

Discount rate 6.25% - 7.75% 7.00% - 7.50% 

Expected return on plan assets 7.00% - 7.75% 7.00% - 8.50% 

Rate of future salary increases 5.00% - 6.75% 6.00% - 6.25% 

Rate of future pension increases 0.50% - 3.75% 2.00% - 3.00% 

The Group expects to contribute $2.7 million to its defined benefit plan in 2011. 

The major categories of plan assets are as follows: 

2010 2009 

$ $ 

Equities 37% 42% 

Debt securities 37% 36% 

Other 26% 22% 

Experience history for the current and previous period is as follows: 

2010 2009 2008 2007 2006 

$ $ $ $ $ 

Defined benefit obligation (27,868) (26,062) (23,003) 18,464 15,352 

Plan assets 30,146 25,620 21,181 (18,280) (14,763) 

Surplus/(deficit) 2,278 (442) (1,822) 184 589 

Experience adjustments on plan liabilities (2,813) (1,581) 207 (362) 151 

Experience adjustments on plan assets (766) (640) (1,874) (457) (1,375) 

33 





(Continued) 

15. Employee benefits asset (continued) 

b) Movement in the pension plan benefit asset in the statement of financial position: (continued) 

The plan’s financial funding position is assessed by means of triennial actuarial valuations carried out by an 

independent actuary. The last funding valuation was carried out as at 31 December 2009 and revealed that 

Readymix (West Indies) Limited’s section of the plan was in surplus to the extent of $1.4 million. The current 

rate of company contributions is 15.7% of salaries, which is at least sufficient to maintain the surplus. 

A roll forward valuation in accordance with IAS 19 ‘Employee Benefits’ using assumptions indicated above 

was done as at 31 December 2010 for the sole purpose of preparing these financial statements. 

16. Deferred taxation 

2010 2009 

$ $ 

(a) Movement in deferred taxation (net) 

Balance as at 1 January 5,023 4,621 

(Credit)/charge to income (46) 402 

Balance at 31 December 4,977 5,023 

(b) Components of deferred tax assets/(liabilities) 

Tax losses 785 677 

Provisions 315 282 

Deferred tax assets 1,100 959 

Accelerated depreciation (4,903) (4,946) 

Finance leases (625) (644) 

Post retirement asset (549) (392) 

Deferred tax liabilities (6,077) (5,982) 

Net balance at 31 December 4,977 5,023 

Tax losses available for set off against future taxable profit amounted to $5.2 million (2009:$4.5 million) but 

are yet to be agreed with the tax authorities. 

17. Stated capital 

Authorised 

An unlimited number of ordinary shares of no par value 

Issued and fully paid 

2010 2009 

$ $ 

12 million (2009: 12,000,000) ordinary shares of no par value 12,000 12,000 

34 





(Continued) 

18. Related party disclosures 

Related party balances arose from transactions with fellow companies of the Trinidad Cement Limited Group. 

Management believes that these transactions were consummated on terms no less favourable than those that could 

have been obtained from other parties providing those goods and services. 

(a) Related party balances 

Amounts due from related parties (Note 10): 

2010 2009 

$ $ 

Trinidad Cement Limited 15,669 5,975 

TCL Ponsa Manufacturing Limited 14 14 

15,683 5,989 

The amount due from the parent company, Trinidad Cement Limited, includes advances amounting to $14.8 

million which bear interest at rates ranging from 7.5% to 9.75% per annum (2009: 6%). These advances carry a 

duration of 90 days. At the year end date one of the advances due on 8 November 2010 and was rolled over by 

the Group. 

Amounts due to related parties (Note 13): 

2010 2009 

$ $ 

Trinidad Cement Limited 4,083 12,570 

TCL Trading Limited – 1,508 

Caribbean Cement Company Limited 4 4 

Arawak Cement Company Limited 1,340 1,363 

5,427 15,445 

(b) Related party transactions 

2010 2009 

$ $ 

Purchases of goods 32,794 46,767 

Cash advanced to Trinidad Cement Limited 42,752 5,000 

Management fees 1,938 1,763 

Interest income 597 390 

Compensation of key management personnel: 

Key management personnel are those persons having authority and responsibility for planning, directing and 

controlling the activities of the Company. 

2010 2009 

$ $ 

Short-term employment benefits 4,460 4,187 

Pension plan benefits 176 154 

In 2010, the total directors’ fees were $0.298 million (2009: $0.286 million). 

35 





(Continued) 

19. Segmental information 

The Group derived 85% (2009: 99%) of its revenue from the sale of pre-mixed concrete in Trinidad & Tobago and 

Barbados, whilst the sale of aggregates and the provision of technical services are purely incidental to this main 

activity. Accordingly, the majority of the Group’s assets and liabilities are associated with the pre-mixed concrete 

business. 

For management purposes the Group considers operating segment information with reference to the geographical 

location. The Group’s geographical segments are based on the location of the Group’s assets. Sales to external 

customers disclosed in geographical segments are based on the geographical location of its customers. 

The following table presents information regarding the Group’s geographical segments for the years ended 31 

December 2010 and 2009: 

Trinidad St. Mrarten / Adjustments & 

and Tobago St. Martin Barbados Eliminations Total 

$ $ $ $ $ 


Total revenue 121,998 1,020 16,527 (1,020) 138,525 

Inter-segment revenue – – – – – 

Third party revenue 121,998 1,020 16,527 (1,020) 138,525 

Profit/(loss) before tax (3,971) (9,387) (948) 6,637 7,669 

Segment assets 159,278 3,178 9,868 (9,033) 163,291 

Non-current assests 46,024 2,622 5,671 (9,148) 45,169 

Capital expenditure 5,496 – 22 – 5,518 

Trinidad St. Mrarten / Adjustments & 

and Tobago St. Martin Barbados Eliminations Total 

$ $ $ $ $ 


Total revenue 178,134 17,073 17,340 (17,073) 195,474 

Inter-segment revenue – (1,697) – 1,697 – 

Third party revenue 178,134 15,376 17,340 (15,376) 195,474 

Profit/(loss) before tax 22,559 (6,457) (471) (36) 15,595 

Segment assets 164,325 8,007 10,045 (8,827) 173,550 

Non-current assests 48,380 2,610 6,506 (6,526) 50,970 

Capital expenditure 6,691 630 240 – 7,561 

36 





(Continued) 

19. Segmental information (continued) 

The following table presents information regarding the Group’s product segments for the years ended 31 December 

2010 and 2009: 

Adjustments & 

Concrete Aggregate Eliminations Total 

2010 2009 2010 2009 2010 2009 2010 2009 

Revenue 118,690 196,407 20,855 14,443 (1,020) (15,376) 138,525 195,474 

Profit/(loss) before tax (19,066) (586) 4,760 2,655 6,637 13,562 (7,669) 15,631 

‘Adjustments & eliminations’ include consolidation eliminations as well as other adjustments to reflect the 

results of the discontinued operations. 

20. Fair value 

The fair value of short term financial assets and liabilities comprising cash and bank balances, receivables and 

payables approximate their carrying amounts because of the short term maturities of these instruments. The fair 

value and carrying amounts of financial assets and liabilities is presented below: 

Carrying Fair Carrying Fair 

amount value amount value 

2010 2010 2009 2009 

$ $ $ $ 

Financial assets 

Cash & cash equivalents 643 643 4,313 4,313 

Receivables 60,775 60,775 69,421 69,421 

Financial liabilities 

Bank overdrafts & advances 18,148 18,148 3,259 3,259 

Payables & accruals 29,104 29,104 46,974 46,974 

Borrowings 8,045 5,932 11,850 9,877 

21. Commitments and contingencies 

Operating lease commitments (discontinued operation) 

The Group’s St. Maarten subsidiary, Island Concrete Products N.V., renewed the business agreement to lease 

the property at their plant location for an amount of $0.098 million per year for a period of sixty years ending in 

2069. 

Contingencies 

At 31 December 2010 the Group had contingent liabilities in respect of bank guarantees, custom and performance 

bonds amounting to $5.1 million (2009: $1.6 million). 

In 2010, the parent company was assessed by the Board of Inland Revenue (BIR) for income tax years 2002, 2003 

and 2004. The assessment is in excess of $6.3 million. The parent company has subsequently written to the BIR 

formally objecting to these assessments. No provision has been recorded in relation to these assessments as at 31 

December 2010 as their directors are of the opinion that the liability is not considered probable. 

37 





(Continued) 

22. Financial risk management 

Introduction 

The Group’s activities expose it to a variety of financial risks, including the effects of changes in debt and equity 

prices, interest rates, market liquidity conditions, and foreign currency exchange rates which are accentuated 

by the Group’s foreign operations, the earnings of which are denominated in foreign currencies. Accordingly, 

the Group’s financial performance and position are subject to changes in the financial markets. Overall risk 

management measures are focused on minimising the potential adverse effects on the financial performance of the 

Group of changes in financial markets. 

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. 

Credit risk 

Credit risk is the risk that a counter-party will not meet its obligations under a financial instrument or customer 

contract, leading to a financial loss. The Group is exposed to credit risks from its operating activities (primarily for 

trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign 

exchange transactions and other financial instruments. 

Significant changes in the economy, or in the state of a particular industry segment that represents a concentration 

in the Group’s portfolio, could result in losses that are different from those provided at the reporting date. 

Management therefore carefully manages its exposure to credit risk. 

The Group structures the level of credit risk it undertakes by placing limits on the amount of risk accepted in 

relation to one customer, or group of customers, and to geographical and industry segments. Such risks are 

monitored on an ongoing basis, and limits on the levels of credit risk that the Group can engage in are approved 

by the Board of Directors. 

Exposure to credit risk is further managed through regular analysis of the ability of debtors and borrowers to settle 

outstanding balances, meet capital and interest repayment obligations and by changing these lending limits when 

appropriate. The Group does not hold collateral as security. 

The following table shows the maximum exposure to credit risk for the components of the statement of financial 

position, without taking account of any other credit enhancements: 

Gross 

Gross 

maximum maximum 

exposure exposure 

2010 2009 

Receivables and prepayments 66,889 75,400 

Cash and cash equivalents 643 4,313 

Total credit risk exposure 67,532 79,713 

Credit risk related to receivables 

Customer credit risk is managed in accordance with the Group’s established policy, procedures and control relating 

to customer credit risk management. Credit limits are established for all customers based on internal rating criteria. 

Outstanding customer receivables are regularly monitored. At 31 December 2010 the Group had approximately 

6 individual customers (2009: 14 customers) that owed the Group more than $1.0 million each and accounted for 

approximately 63% (2009: 67%) of all trade receivables owing. 

38 





(Continued) 

22. Financial risk management (continued) 

Credit risk (continued) 

Credit risk related to cash and cash equivalents 

Credit risks from balances with banks and financial institutions are managed in accordance with Group policy. 

Investments of surplus funds are made only with approved counterparties and within limits assigned to each 

counterparty. Counterparty limits are reviewed by the Company’s Board of Directors on an annual basis, and may 

be updated throughout the year subject to approval of the Company’s Finance Committee. The limits are set to 

minimize the concentration of risks and therefore mitigate financial loss through potential counterparty failure. 

Foreign currency risk 

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. 

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar and Euro exchange 

rate, with all other variables held constant, of the Group’s profit before tax and the Group’s equity: 

Change in foreign Effect on profit Effect on 

exchange rate before tax equity 

$ $ 

2010 

US Dollar ± 0.90% ± 2 ± 2 

Euro 

There were no material transactions or balances in Euro currency for the year ended 31 December 2010. 

2009 

US Dollar ± 0.99% ± 27 ± 20 

Euro ± 0.48% ± 41 ± 30 

39 





(Continued) 


Foreign currency risk (continued) 

The aggregate value of financial assets and liabilities by denominated currency are as follows: 

2010 

ASSETS 

TTD USD Euro BDS Total 

$ $ $ $ $ 

Cash and cash equivalents 398 245 – – 643 

Receivables 57,383 – – 3,392 60,775 

LIABILITIES 

57,781 245 – 3,392 61,418 

Bank overdrafts & advances 18,025 – – 123 18,148 

Payables and accruals 25,556 – – 3,548 29,104 

Borrowings 7,988 – – 57 8,045 

2009 

ASSETS 

51,569 – – 3,728 55,297 

Cash and cash equivalents 3,562 459 130 162 4,313 

Receivable 64,676 1,552 966 2,227 69,421 

LIABILITIES 

68,238 2,011 1,096 2,389 73,734 

Bank overdraft & advances 2,756 503 – – 3,259 

Payables and accruals 38,820 4,280 251 3,623 46,974 

Borrowings 10,945 – – 905 11,850 

52,521 4,783 251 4,528 62,083 

40 





(Continued) 


Interest rate risk 

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because 

of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relate 

primarily to bank advances and other borrowings. The Group manages its interest rate risk by having a balanced 

portfolio of fixed and variable rate loans and borrowings. 

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with other variables 

held constant of the Group’s profit before tax and equity (through the impact on floating rate borrowings): 

Increase/decrease in Effect on profit Effect on 

basis points before tax equity 

2010 Banker’s acceptances ±50 ± 62 ± 47 

There were no banker’s acceptances as at 31 December 2009. 

Liquidity risk 

Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due under 

normal and stress circumstances. The Group monitors its liquidity risk by considering the maturity of both its 

financial investments and financial assets and projected cash flows from operations. Where possible the Group 

utilizes surplus internal funds to a large extent to finance its operations and ongoing projects. However, the Group 

also utilizes available credit facilities such as loans, overdrafts and other financing options where required. 

The table below summarises the maturity profile of the Group’s financial liabilities at 31 December based on 

contractual undiscounted payments: 

Year ended 31st December, 2010 On demand 1 year 1 to 5 years > 5 years Total 

$ $ $ $ $ 

Bank overdrafts & advances 18,148 – – – 18,148 

Borrowings – 3,262 5,697 – 8,959 

Payables and accruals – 29,104 – – 29,104 

18,148 32,366 5,697 – 56,211 

Year ended 31st December, 2009 On demand 1 year 1 to 5 years > 5 years Total 

$ $ $ $ $ 

Bank overdrafts & advances 3,259 – – – 3,259 

Borrowings – 4,505 7,882 1,044 13,431 

Payables and accruals – 46,974 – – 46,974 

3,259 51,479 7,882 1,044 63,664 

41 





(Continued) 


Credit quality per category of financial asset 

The 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 Company. The categories defined are 

as follows: 

Superior: 

Desirable: 

Acceptable: 

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. These balances are 

considered risk free. 

These are balances due from counterparties that are considered to have good financial strength 

and reputation. 

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 receivable as at 31 December: 

Superior Desirable Acceptable Sub-standard Total 

$ $ $ $ $ 

2010 3,939 13,753 27,400 18,788 63,880 

2009 8,116 43,436 11,880 18,340 81,772 

23. Capital management 

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and 

healthy capital ratios in order to support its business and maximize shareholder value, and comply with the capital 

requirements set by the regulators of the markets where the Group operates. 

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. 

To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return 

capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during 

the years ended 31 December 2010 and 31 December 2009. For 2010 and 2009, the Group complied with all 

externally imposed capital ratio requirements to which it is subject. 

24. Dividends 

The 2008 final dividend declared and approved in 2009 of 20 cents per share amounting to $2.4 million has been 

presented as an appropriation against retained earnings in the Consolidated statement of changes in equity for the 

year end 31 December 2009. 

42 





(Continued) 

25. Assets classified as held for sale 

The Board of Directors suspended operations at Island Concrete Products N.V and Island Concrete SARL (“the 

Subsidiaries”), located in St. Maarten and St. Martin effective 1 December 2009 due to a major decline in the 

demand for concrete on the island. 

On 31 March 2010 the Board of Directors agreed to pursue disposal of the subsidiaries, and Management continues 

to explore all options in this regard. 

As at 31 December 2010, the subsidiary was classified as a disposal group held for sale and as a discontinued 

operation. The results of the subsidiary for the years ended 31 December 2010 and 2009 are presented below: 

2010 2009 

$ $ 

Revenue 1,020 15,376 

Expenses (5,179) (24,375) 

Operating loss (4,159) (8,999) 

Finance costs (94) (287) 

Loss before tax from discontinued operations (4,253) (9,286) 

Taxation – (36) 

Loss for the year from discontinued operations (4,253) (9,322) 

The major classes of assets and liabilities of Island Concrete Products N.V/Island Concrete SARL classified as 

held for sale as at 31 December 2010 are as follows: 

2010 

$ 

Assets 

Property, plant and equipment (Note 7) 2,622 

Inventories 539 

Cash and cash equivalents (Note 11) 17 

Assets classified as held for sale 3,178 

Liabilities 

Payables and accruals (3,238) 

Bank overdraft (Note 11) (969) 

Liabilities associated with assets classified as held for sale (4,207) 

Net assets directly associated with disposal group (1,029) 

43 





(Continued) 

25. Assets classified as held for sale (continue) 

The net cash flows incurred by Island Concrete Products N.V/Island Concrete SARL for the year ended 31 

December 2010 are as follows: 

Operating (356) 

Investing – 

Financing – 

Net cash outflow (356) 

The overdraft facility held by Island Concrete Products N.V. attracts interest at the rate of 8.5% per annum (2009: 

8.5%) and is secured by a charge over the fixed and floating assets of that company and by a guarantee from 

Readymix (West Indies) Limited. 

26. Subsequent events and going concern 

At year end date Readymix (West Indies) Limited and its Subsidiaries (RMLG) were in compliance with all terms 

of its various loan agreements. In the post year end period, on 14 January 2011, RMLG’s ultimate parent company, 

Trinidad Cement Limited (TCL), publicly declared a moratorium on all debt service payments due by all entities 

in the TCL Group, inclusive of Readymix (West Indies) Limited and its subsidiaries. 

Challenged by weak demand volumes across most markets, TCL had commenced negotiation in 2010 with lenders 

for a re-profiling of its debt portfolio and the declaration was made after informal agreement with the majority of 

lenders who wanted to ensure adequate liquidity in the TCL Group to allow for continuity of business operations. 

Subsequent to the declaration, debt service payments falling due have not been made by TCL and RMLG. Most 

of the debt agreements are therefore in default either through non-payment of interest and/or principal or due to 

cross default clauses. 

The majority of lenders have formed a Steering Committee to participate in the re-profiling process and have 

caused the engagement of independent restructuring consultants and legal advisors. The restructuring consultants 

have completed their review and report on TCL and its Subsidiaries (TCLG) business plans and financial projections 

which will form the basis of the re-profiling negotiation. 

The specific features of the re-profiling are yet to be negotiated but TCL expects the exercise to be completed by 

30 September 2011. 

The arrangement between the majority of lenders and TCLG and the declaration of the moratorium on debt service 

payments are informal and not subject to any legal agreement between TCLG and the lenders. Notwithstanding 

the explicit action taken by the majority of lenders to undertake the re-profiling of TCLG’s debt portfolio and continued 

credit support, lenders have retained their rights to demand immediate repayment of all outstanding obligations 

which the TCLG and RMLG are not in a position to immediately meet. Should Lenders demand immediate 

repayment and initiate legal action to enforce their security there may be a risk to the going concern of RMLG. 

However, no legal action has been taken to pursue recovery and the majority of lenders have maintained their lines 

of short term operating credit to TCLG and RMLG at the levels existing at 14 January 2011. Moreover, lenders 

have actively participated in the re-profiling process and have given every indication of their willingness to negotiate 

a successful conclusion. The restructuring exercise is intended to facilitate the full repayment of the debt 

obligations and position TCLG and RMLG to prosper from the rebound in market conditions. On this basis, the 

Directors have maintained the going concern assumption in the preparation of these accounts. 

44 


NOTES 

45 


REPUBLIC OF TRINIDAD AND TOBAGO 

The Companies Act, 1995 

(Section 144) 

MANAGEMENT PROXY CIRCULAR 

1. Name of Company: 

READYMIX (WEST INDIES) LIMITED. Company No. R-84 (C). 

2. Particulars of Meeting: 

Fifty-second Annual Meeting of the Company to be held on 21st July 2011 at the CLR James Conference Room, 

Cipriani College of Labour and Co-operative Studies, Churchill Rossevelt Highway, Valsayn. 

3. Solicitation: 

It is intended to vote the Proxy solicited hereby (unless the Shareholder directs otherwise) in favour of all resolutions 

specified therein. 

4. Any director’s statement submitted pursuant to Section 76 (2): 

No statement has been received from any Director pursuant to Section 76 (2) of The Companies Act, 1995. 

5. Any auditor’s statement submitted pursuant to Section 171 (1): 

No statement has been received from the Auditors of the Company pursuant to Section 171 (1) of The Companies 

Act, 1995. 

6. Any shareholder’s proposal and/or statement submitted pursuant to Sections 116 (a) and 117 (2): 

No proposal has been received from any Shareholder pursuant to Sections 116 (a) and 117 (2) of The Companies 

Act, 1995. 

DATE NAME AND TITLE SIGNATURE 

13th June, 2011 

Isha Reuben-Theodore, 

Company Secretary 

46 


PROXY FORM 

To Registrar 

Readymix (West Indies) Limited 

The Trinidad and Tobago Central Depository Ltd. 



Port of Spain 

BLOCK CAPITALS PLEASE 

I/We _______________________________________________________________ 

of _________________________________________________________________ 

being a Member/Members of the above named Company, hereby appoint the Chairman 

of the meeting or failing him, 

Mr./Mrs.____________________________________________________________ 

NAME OF PROXY 

of _________________________________________________________________ 

ADDRESS 

To be my/our Proxy to vote for me/us on my/our behalf at the Annual Meeting of the 

Company to be held at 2:30 p.m.on the 21st July, 2011 and any adjournment thereof. 

______________________________ 

Signature of Shareholder(s) 

Please indicate with an “X” in the spaces below how you wish your votes to be cast. 

_____________________ 

Date 

RESOLUTIONS FOR AGAINST 

1. Be it resolved that the Financial Statements for the year ended 31st December, 2010 and 

the reports of the Directors and Auditors thereon be adopted. 

2. Election of Directors: 

i. Be it resolved that Ms. Eutrice Carrington, who retires by rotation and being eligible, be 

re-elected a director of the company, in accordance with Clause 4.6.1 of By-Law No.1 

ii. Be it resolved that Mr. Hollis Hosein, who retires by rotation and being eligible, be 

re-elected a director of the company, in accordance with Clause 4.6.1 of By-Law No. 1. 

iii. Be it resolved that Mr. C.H. Wayne Manning, who retires by rotation and being eligible, be 

re-elected a director of the company, in accordance with Clause 4.6.1 of By-Law No. 1. 

iv. Be it resolved that Mr. Lincoln Parmasar, who was appointed by the Board to fill a casual 

vacancy, be re-elected a director of the Company, in accordance with Clause 4.4.2 of 

By-Law No. 1, until the conclusion of the third Annual Meeting following. 

3. Be it resolved that Ernst & Young be appointed as the Auditors for the Year 2011 and that 

the Board be authorized to fix their remuneration. 

NOTES: 

1. If the appointor is a corporation, this form must be under its common seal or under the hand of some officer or attorney duly 

authorised in that behalf. 

2. In the case of joint holders, the signature of any one holder should be stated. 

3. If you do not indicate how you wish to vote the proxy will use his discretion both as to how he votes or whether or not he 

abstains from voting. 

4. To be valid this form must be completed and deposited with the Registrar at least 48 hours before the time appointed for the 

meeting or adjourned meeting. 

5. Any alterations made on this form should be initialled.

Fold here 

Affix 

STAMP 

Here 

To Registrar 

Readymix (West Indies) Limited 

The Trinidad and Tobago Central Depository Ltd. 



Port of Spain 

Fold here

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