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P a g e
TRINIDAD CEMENT LIMITED
SECTION 9: OTHER INFORMATION
(Continued)
9.3 MATERIAL LITIGATION/ CLAIMS
(Continued)
The Company cannot assure you that these or other legal proceedings will not materially affect its ability to
conduct its business in the manner that it expects or otherwise adversely affect the Company should an
unfavorable ruling occur.
As of the date of this Information Memorandum, there are no material product defect claims pending against
the Company. Accordingly, the Company’s existing accruals for claims against the Company do not reflect
any material amounts relating to product defect claims. While the Company’s management is not aware of
any facts that would reasonably be expected to lead to material product defect claims against the Company
that would have a material adverse effect on its business, financial condition or results of operations, it is
possible that claims could be asserted against the Company in the future. Due to the inherent uncertainties
associated with estimating unasserted claims in its business, the Company cannot estimate the amount of any
future loss that may be attributable to unasserted product defect claims related to cement and pre-mixed
concrete.
A summary of material ongoing litigation/ claims follows:
Matter
Details and Status
Amount of Claim
Pre-Action Protocol –
Wrongful dismissal of Dr.
Rollin Bertrand
L
egal Rep. Mr. Stuart
Young
Claim for compensation re
wrongful dismissal.
TT$9.5M
TCL Trinidad v the
Board of Inland
Revenue
The Board of Inland Revenue
has audited the Corporation Tax
Returns and raised assessments
adjusting the Tax Losses of the
company by $102.1 M in respect
of Tax Year 2007 and $284.4 M
in respect of Tax Year 2008.
$102.1M and $284.4M - The
Company has lodged objections to
these assessments and awaits a
determination by the Board of Inland
Revenue. The Company is of the view
that its claim is well supported in law
and will continue to defend its
position in the resolution process.
TCL Guyana Inc. v.
Attorney General of
Guyana
Legal Rep. Hughes ,
Fields & Stoby
Dispute re Terms of the MOU -
Corporate Tax Rate of 35%
(reduced to 30% from 1 January
2011) included in the MOU. A
rate of 45% (reduced to 40%
from 1 January 2011) will be
applicable if the concession of
the MOU is repealed.
Maintenance of 35% tax rate up to
2010 and 30% thereafter.
Should the matter be resolved in
favour of the Government, the amount
payable as at December 2014 amounts
to TT$23M (including interest).
CV2012-01912, H.C.A
S-587 of 2000
SHEIK
LISHA v. TCL
Legal Rep. M.G. Daly &
Partners
Negligence / Unfair
Competition.
$26,000 per month since or about the
year 2001, and interest estimated at
$3.7M.
The Company believes that the resolution of all litigation currently pending or threatened against
the Company or any of its subsidiaries will not materially exceed its existing accruals for those
matters.
