Trinidad Cement Limited
Annual Report 2012
44
TO THE SHAREHOLDERS OF TRINIDAD CEMENT LIMITED
(continued)
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 2(ii) in the financial statements which indicates
that the Group has reported a loss before taxation of $378.7 million for the year ended 31 December,
2012 ($457.2 million in 2011) and there is $2.05 billion in outstanding debt obligations as presented on its
consolidated statement of financial position as at 31 December, 2012. Debt service (inclusive of principal
and interest) is forecast to be $293 million for 2013.
Note 2(ii) also indicates that the ability of the Group to generate the sustained incremental cash flows to
meet its significant debt service obligations is sensitive to the successful implementation of the strategies
and the key assumptions aroundmarket size growth, newmarkets, cost reductions and price adjustments.
Should these assumptions not materialise such that the Group is unable to service its debt obligations
when due, this will pose a going concern risk to the TCL Group.
The financial statements have been prepared on the going concern basis because, as described in Note
2(ii), based on current plans and strategies being pursued and implemented, including the successful
completion of the debt restructure exercise in May 2012, the directors have a reasonable expectation that
the Group will generate adequate cash flows and profitability which would allow the Group to continue in
operational existence in the foreseeable future.
This basis of preparation presumes that the Group will be able to realise its assets and discharge its
liabilities in the ordinary course of business. The factors described above, along with other matters as set
forth in Note 2(ii) indicates the existence of material uncertainties related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern and therefore, that it may be
unable to realise its assets and discharge its liabilities in the normal course of business.
Port of Spain
TRINIDAD:
25 March, 2013
Independent Auditor’s Report (continued)
