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P a g e
TRINIDAD CEMENT LIMITED
SECTION 8: RISK FACTORS
(Continued)
The Company is responsible for maintaining adequate funding of these pension plans. Should any actuarial
review of the defined benefit plans include a recommendation from an independent actuary for additional
funding because of changes in interest rates, mortality rates etc. the business, financial position, results of
operations, liquidity and cash flows of the TCL Group may be materially affected. Additionally, the
Company relies on agreements with representative trade unions with respect to the amount of employee
funding, and if the Company fails to achieve agreement, an additional funding burden could be placed on
the Company.
The Company’s operations are subject to various hazards that may cause personal injury or property
damage and increase its operating costs.
Operating cement-manufacturing plants, ready-mixed operations, packaging plants and mobile equipment
expose the Company’s employees, contractors, and others to hazards which can cause personal injury and
loss of life, damage to or destruction of property, plant and equipment and environmental damage.
Although the Company conducts training programs designed to reduce these risks, the Company cannot
eliminate them. The Company maintains insurance coverage in amounts it believes are consistent with
industry practice; however, this insurance may not be adequate to cover all losses or liabilities the
Company may incur in its operations, and the Company cannot ensure that it maintains insurance of the
types and levels that would always prevent uninsured losses arising . A partially or completely uninsured
claim, if successful and of sufficient magnitude, could have a material adverse effect on the Company.
The insurance policies the Company maintains are subject to varying levels of deductibles. Losses up to
the deductible amounts are accrued based on the Company’s estimates of the ultimate liability for claims
incurred and an estimate of claims incurred but not reported. If the Company were to experience insurance
claims or costs above its estimates, its business, financial position, results of operations, liquidity and cash
flows may be materially adversely affected.
There are risks related to the Company’s internal growth and operating strategy.
The Company’s ability to generate internal growth will be affected by, among other factors, its ability to:
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attract new customers and retain existing customers;
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differentiate itself in a competitive market by emphasizing new product development and value-added
products and services;
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hire and retain employees;
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reduce operating and overhead expenses; and
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rearrange the debt and equity component of its capital structure
The Company’s inability to achieve internal growth could have a material adverse effect on its business,
financial position, results of operations, liquidity and cash flows.
The Company is dependent on information technology to support many facets of its business.
If the Company’s information systems are breached, destroyed or fail due to cyber-attack, unauthorized
access, natural disaster, or equipment breakdown, its business could be interrupted, proprietary information
could be lost or stolen, and the Company’s reputation could be damaged. The Company takes measures to
protect its information systems from such occurrences, but the Company cannot ensure that its efforts will
always prevent them. The Company could be negatively affected by any such occurrences.
