Download File - TCL Group

“From seemingly useless rocks to valuable resources, RML is in the business of turningraw materials into precious commodities for the customers we serve. This cover designdetails the process from the quarry into your home and business. The pictures tell a story;they depict each stage of interaction with RML’s team of professionals, from CustomerService, to manufacturing, delivery and the final outcome of customer satisfaction, RMLconsistently delivers quality.”

Our MISSIONTo lead as a customer-driven producer and supplier of highquality pre-mixed concrete and related products and services,providing a superior rate of return to our shareholders, whilstbeing committed to the development of our human resources andthe preservation of the environment.TABLE OF CONTENTS1 Mission Statement2 Board of Directors3 Notice of Annual Meeting/Corporate Information4 Management/Support Teams6 Chairman’s Review8 Year In Review10 Directors’ & Substantial Interests11 Independent Auditor’s Report12 Consolidated Statement of Financial Position13 Consolidated Statement of Income14 Consolidated Statement of Comprehensive Income15 Consolidated Statement of Changes in Equity16 Consolidated Statement of Cashflows18 Notes to the Consolidated Financial Statements48 Management Proxy Circular49 Proxy Form (Detachable)

1THE BOARDOF DIRECTORS821 Eutrice Carrington - Chairman2 Rollin Bertrand - Director/Group CEO3 Arun Goyal - Director4 Anton Ramcharan - Director735 Satnarine Bachew - Director6 C.H. Wayne Manning - Director647 Hollis Hosein - Director58 Lawford Dupres - Director2BUILD TO LAST FOR GENERATIONS

3BUILD TO LAST FOR GENERATIONSNOTICE OF ANNUAL MEETINGNotice is hereby given that the 51ST ANNUAL MEETING of READYMIX (WEST INDIES)LIMITED for the year ended 31st December, 2009 will be held at the HCL OrganizationalDevelopment Centre, #22 Orange Grove Road, Tagaricua on Thursday 10th June, 2010 at 2:30p.m. for the transaction of the following business:ORDINARY BUSINESS1. To receive and consider the Report of the Directors and the Audited Financial Statements forthe financial year ended 31st December, 2009, 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.NOTES1. Record DateThe Directors have fixed Monday 10th May, 2010 as the record date for shareholders entitled toreceive notice of the Annual Meeting. Formal notice of the Meeting will be sent to shareholderson the Register of Members as at the close of business on that date. A list of such shareholderswill 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 ofSpain during usual business hours and at the Annual Meeting.2. ProxiesMembers of the Company entitled to attend and vote at the Meeting are entitled to appoint oneor more proxies to attend and vote instead of them. A proxy need not also be a member. Wherea proxy is appointed by a corporate member, the form of proxy should be executed under sealor signed by some officer or attorney duly authorized.CORPORATE INFORMATIONCompany Secretary:Mrs. Isha Reuben-TheodoreRegistered Office:Tumpuna Road, GuanapoArima, Trinidad, W.I.Tel: (868) 643-2429/2430Fax: (868) 643-3209Email: rmlinfo@tclgroup.comRegistrar:Trinidad & Tobago Central Depository Limited10th Floor, Nicholas Tower63-65 Independence SquarePort of Spain, Trinidad, W.I.Auditors:Ernst & Young5-7 Sweet Briar Road, St. ClairPort of Spain, Trinidad, W.I.Attorneys At Law:J.D. Sellier & Company129–131 Abercromby StreetPort of Spain, Trinidad, W.I.To be valid, the Proxy Form must be completed and deposited at the registered office of TheTrinidad & Tobago Central Depository, 10th Floor, Nicholas Tower, 63-65 IndependenceSquare, Port of Spain, not less than 48 hours before the time fixed for holding the Meeting.BY ORDER OF THE BOARD…………………………………................ISHA REUBEN-THEODORECOMPANY SECRETARY3rd May, 2010

MANAGEMENT / SUPPORT TEAMSMr. Manan DeoGeneral ManagerMrs. Isha Reuben-TheodoreFinance Manager/Company SecretaryMr. Dexter EastOperations ManagerAustin RodriguezTechnical Services ManagerJohn CardenasSpecial Projects ManagerAnthony FergusonHealth, Safety, Environment &Security OfficerAyanna GarnesFinancial AccountantRannie Bigram-SeepersadManagement AccountantGordon RichardsQuarry ManagerMalcolm SmithPlant ManagerPremix & Precast Concrete Inc.Jaris LiburdPlant ManagerIsland Concrete Products NVMurielle LancienManagerIsland Concrete SARLMichelle JonesCredit ControllerSiewdath BahalProduction Superintendent4BUILD TO LAST FOR GENERATIONS

5BUILD TO LAST FOR GENERATIONSMANAGEMENT / SUPPORT TEAMSMr. Learie HindsHuman Resource ManagerMr. Gerard TorresMarketing ManagerMr. Richard DashMaterials ManagerMs. Nicole GiuseppiHuman Resource SpecialistMrs. Cheryl MungalCo-Ordinator – Customer CareMr. Nirmal NananCo-Ordinator – Customer CareMr. Reval SankarCo-Ordinator – Customer CareMr. Horace BoodooMaterials OfficerMr. Allan KongCo-Ordinator – Customer CareMr. Sanish MaharajCo-Ordinator – Customer Care

CHAIRMAN’S REVIEW - 2009The year 2009 marked the 50th anniversary ofReadymix’s operations in Trinidad and Tobago. The yearwas very challenging, as the RML Group felt the full impactof the global economic recession in all territories in which itoperated. The demand for concrete fell, revenues declined,and consequently the Group net profit was adversely affected.In the face of the challenges, the Company took severalinitiatives to improve its efficiency, and to position itselfto take advantage of the improvement in business activitywhich is anticipated to resume in the period 2010 - 2011.For the year, the Group recorded a profit of $9.7M comparedwith a profit of $35.3M for 2008. Sale of concrete fell 32% to174K cubic metres in 2009, while revenue also fell by 32%to $211M. The resulting Earnings per Share of the Groupwas $0.81 compared with $2.93 of the prior year.In the Trinidad and Tobago market, there were no new majorprojects started during the year, while many Governmentprojects, which normally account for approximately 60%of concrete consumption were either winding down or cameto a close, particularly in the area of housing construction.Other new projects in the state sector, such as constructionof schools, community centres, police stations, and otherinfrastructural projects were discussed by the relevantcontractors, but did not materialise. Some constructioncontinued in the private commercial, and domestic housingsectors where operators took advantage of favourable prices,to advance construction of warehouses and private homesrespectively. The industry also suffered as a result of thefailure of State Agencies such as Housing DevelopmentCorporation, the Educational Facilities Companies Ltd, andNational Infrastructural Development Company Ltd to paysums owing to contractors, who in turn defaulted in theirpayment obligation to RML.Sales at Premix and Precast Concrete Incorporated (PPCI)represented a shortfall of 34% compared with the prioryearvolumes. The Barbados construction industry wasaffected by the worse than expected fall-off in economicactivity as the recession deepened during the year, withinvestors and contractors exercising caution in the face ofthe economic uncertainty. There was also reduced demandfor residential mortgages due to increased unemploymentin the Barbados economy.In St Maarten and St Martin, our subsidiaries IslandConcrete Products NV (ICNV) and Island Concrete SARL(SARL) experienced poor sales for the entire year ( in somemonths more than 50% decline over the prior year) as aresult of factors including the with drawal of investors fromprojects, the non-issuing of building permits by the relevantGovernment Agency, and the reluctance of Banks to providecredit for homebuilders. By the end of November, owing tothe sustained level of low sales, the Board gave approvalfor a temporary shut-down of operations, and the review ofoptions going forward. By the end of the year, Managementhad commenced negotiations with an interested party for thesale of 100% of the shares of ICNV and SARL.RML’s quarrying operations supplied 100% of all aggregateneeded for production of concrete at the batch plants. Surplusproduction of 20mm stone together with other materials weresold in the open market, resulting in third party sales risingto 89K metric tonnes for the year, which was 48% over theprevious year. Generally however, the demand for aggregatewas lower than prior years; thus the Quarry was downsizedfrom a 7-day week to a 5-day operation. This resulted in theretrenchment of sixteen (16) temporary employees who hadformed the additional shift at the plant.6BUILD TO LAST FOR GENERATIONS

7BUILD TO LAST FOR GENERATIONSThe Company’s batch plant operations were also streamlinedduring the year, based on sales levels at the respectivelocations. In the second quarter, RML merged the operationsof the Pt Lisas batch plant with that of Harmony Hall.Refurbishing work was undertaken on the Mayaro batchplant for re-opening in 2010 upon the commencement ofthe proposed port upgrade works in the area. A second batchplant was erected at Guanapo during the first quarter of theyear, while the existing Guanapo plant was taken out ofproduction for major overhaul, scheduled for completion in2010. During the two-year period leading to 2009, five (5)new batch plant operators came into the market, bringing thenumber of operators to sixteen (16) thus creating an overcapacityin the industry.The Company continued to place major focus on its qualitysystem, and was successful in its Audit for ISO-9001: 2000re-certification. The number of customer complaints for theperiod, and its associated cost fell during the year, and theCompany achieved an overall on-time delivery of 92% toits customers.During the year, the Company amicably settled the CollectiveAgreement at PPCI, at a wage increase of 3.75% over athree-year period. Negotiations also commenced at RMLfor new Collective Agreements for the three-year periodcommencing 1st January 2010, in respect of BargainingUnits #1 and #2 respectively, involving all of the Company’sHourly-Rated, Junior Staff, and Senior Staff employees. Bythe end of the year, negotiations were still being conductedat a bi-lateral level.For the year in review, the Company’s Balance Sheet grewby $7.3M, with cash and cash equivalents showing $7Mimprovement over the prior year. Capital expenditure wastightly controlled, and was restricted mainly to the upgradeand re-furbishment of existing plant and machinery, withthe purchase of new equipment and construction of garagebuildings scheduled for ensuing periods. The Company alsomet and exceeded all its financial covenants.As part of its overall strategic objective, the Company receivedand reviewed several proposals for expansion of its businesswithin the Caribbean, and outside of the Region. None of theproposals were considered feasible for investment, but theCompany remains committed to diligently seeking out newbusiness opportunities, so as to diversify the earnings baseof the Group.The year 2010 will be another challenging period, as theCaribbean is expected to lag behind the rest of the Americasin its economic recovery. We expect to finalise the sale ofICNV/SARL in the first quarter of 2010. This will enableManagement to focus on continuing to improve the efficienciesof its operations in Trinidad and Tobago, and in Barbados,and to actively seek out new business opportunities, whichwill be adequately investigated and presented to the Boardfor possible investment.For the year ended the stock price traded firm, with nochange, at $31.35 per share for the entire year. The Boardhas agreed that no dividend will be paid to shareholders forthe financial year 2009.Ms. Eutrice CarringtonChairman

8BUILD TO LAST FOR GENERATIONS

9BUILD TO LAST FOR GENERATIONS

DIRECTORS’ & SUBSTANTIAL INTERESTSDIRECTORS’ INTERESTS:In accordance with the provisions of Section 64 of theSecurities Industry Act 1981 and the provisions of ourListing Agreement with the Stock Exchange, particularsof the interest of each Director in the Share Capital of theCompany are set out below:DirectorsOrdinary SharesE. Carrington NilR. Bertrand NilA. Goyal NilL. Dupres NilH. Hosein NilA. Ramcharan NilC.H. Wayne ManningNilS. Bachew NilSUBSTANTIAL INTERESTS:A substantial interest means a holding of 5% or more of theissued share capital of the Company.No. of % of IssuedShares Share CapitalTrinidad Cement 8,531,977 71.1%LimitedRepublic Bank 1,529,953 12.75%Limited -1162Colonial Life Ins. 670,646 5.59%Co. Trinidad Ltd.CONTRACTSNo Director of the Company had any material interest in anycontract relating to the business of the Company during or atthe end of the financial year.DIRECTORS’ REPORTThe Directors present their Report to the Members togetherwith the Financial Statements for the year ended31st December, 2009.FINANCIAL RESULTSTurnover 210,850Net Profit for the year 9,926Translation Difference 6Dividends (2,400)Retained Earnings Carried Forward 84,344DIVIDENDSGiven the existing challenges and the marked reduction inthe Company’s profitability, your Board of Directors doesnot consider it prudent to approve a dividend for 2009.DIRECTORSIn accordance with Clause 4.6.1 of By Law No. 1, Dr. RollinBertrand retires by rotation and being eligible, offers himselffor re-election for a period up to the conclusion of the thirdAnnual Meeting following.AUDITORSThe Auditors, Ernst & Young retire and being eligible, offerthemselves for re-election.BY ORDER OF THE BOARDISHA REUBEN-THEODORECompany Secretary10BUILD TO LAST FOR GENERATIONS

11BUILD TO LAST FOR GENERATIONSINDEPENDENT AUDITORS’ REPORTTO THE SHAREHOLDERS OF READYMIX (WEST INDIES) LIMITEDWe 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 31st December, 2009 and the consolidated statement of income,consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows forthe year then ended, and a summary of significant accounting policies and other explanatory notes.Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International FinancialReporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation andfair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applyingappropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.Auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withInternational Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance whether the financial statements are free from material mis–statement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.OpinionIn our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group as at 31st December, 2009,and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting StandardsChatered Accountants5-7 Sweet Briar RoadSt. Clair, Port-Of-SpainTrinidad, West Indies1st March, 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)Notes 2009 2008$ $Non–current assetsProperty, plant and equipment 7 46,419 48,620Goodwill 8 1,764 1,764Employee benefits asset 15 1,828 1,473Deferred tax asset 16 (b) 959 94850,970 52,805Current assetsInventories 9 42,867 40,356Receivables and prepayments 10 70,247 69,161Cash and short term deposits 11 9,466 10,378122,580 119,895Current liabilitiesBank advances 12 3,259 11,128Payables and accruals 13 46,974 41,628Current portion of borrowings 14 3,846 4,45854,079 57,214Net current assets 68,501 62,681Non–current liabilitiesBorrowings 14 8,004 11,779Deferred tax liability 16 (b) 5,982 5,57113,986 17,350Total net assets 105,485 98,136Equity attributable to the parentStated capital 17 12,000 12,000Retained earnings 91,876 84,344103,876 96,344Minority interests 1,609 1,792Total equity 105,485 98,136The accompanying notes form an integral part of these financial statements.On 1st March, 2010, the Board of Directors of Readymix (West Indies) Limited authorised these financial statementsfor issue and were signed on their behalf by:______________________ Director______________________ Director12BUILD TO LAST FOR GENERATIONS

13BUILD TO LAST FOR GENERATIONSNotes 2009 2008$ $Revenue 3 210,850 301,022Operating profit 3 16,999 52,132Finance costs 4 (1,368) (1,939)Profit before taxation 15,631 50,193Taxation 5 (5,900) (14,926)Profit after taxation 9,731 35,267Attributable to:CONSOLIDATED STATEMENT OF INCOMEFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)Shareholders of the Parent 9,926 35,171Minority interests (195) 969,731 35,267Earnings per share 6 $0.81 $2.93(Basic and diluted – expressed in $ per share)The accompanying notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)Notes 2009 2008$ $Profit for the year 9,731 35,267Other comprehensive incomeExchange differences on translation of foreign operations 18 (45)Total comprehensive income for the year 9,749 35,222Attributable to:Equity holders of the parent9,932 35,131Minority interests (183) 919,749 35,222The accompanying notes form an integral part of these financial statements.14BUILD TO LAST FOR GENERATIONS

15BUILD TO LAST FOR GENERATIONSCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)Year ended 31st December, 2009Equity attributable to the parentStated Retained Minority Totalcapital earnings Total interests equity$ $ $ $ $Balance at 1st January, 2009 12,000 84,344 96,344 1,792 98,136Other comprehensive income – 6 6 12 18Profit after taxation – 9,926 9,926 (195) 9,731Total comprehensive income – 9,932 9,932 (183) 9,749Dividends (Note 24) – (2,400) (2,400) – (2,400)Balance at 31st December, 2009 12,000 91,876 103,876 1,609 105,485Year ended 31st December, 2008Balance at 1st January, 2008 12,000 51,613 63,613 1,701 65,314Other comprehensive income – (40) (40) (5) (45)Profit after taxation – 35,171 35,171 96 35,267Total comprehensive income – 35,131 35,131 91 35,222Dividends (Note 24) – (2,400) (2,400) – (2,400)Balance at 31st December, 2008 12,000 84,344 96,344 1,792 98,136The accompanying notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)2009 2008$ $Operating activitiesProfit before taxation 15,631 50,193Adjustments to reconcile profit before taxation tonet cash generated by operating activities:Depreciation 9,798 10,876Increase in provision for doubtful debts 2,107 443Impairment of goodwill – 5,405Other non–cash items (58) 5Stock (provision)/write–off (2,216) 324Interest expense (net) 1,368 1,939Employee benefits asset 2,076 1,790Loss/(gain) on disposal of property, plant and equipment (4) 2728,702 71,002Changes in net current assetsIncrease in inventories ( 295) (9,608)Increase in receivables and prepayments (2,853) (17,327)Increase/(decrease) in payables and accruals 7,332 (571)Cash generated by operating activities 32,886 43,496Taxation paid (7,810) (19,087)Net interest paid (1,382) (1,961)Pension contributions paid (2,427) (2,262)Net cash generated from operating activities 21,267 20,186Investing activitiesAdditions to property, plant and equipment (7,561) (8,991)Proceeds from sale of property, plant and equipment 38 378Net cash used in investing activities (7,523) (8,613)The accompanying notes form an integral part of these financial statements.16BUILD TO LAST FOR GENERATIONS

17BUILD TO LAST FOR GENERATIONSCONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2009 2008$ $Financing activitiesRepayment of borrowings (4,387) (5,113)Dividends paid (2,400) (2,400)Net cash used in financing activities (6,787) (7,513)Net increase in cash and cash equivalents 6,957 4,060Net borrowings – beginning of year (750) (4,810)Net cash/(borrowings) – end of year 6,207 (750)Represented by:Cash and short-term deposits (Note 11) 9,466 10,378Bank advances (Note 12) (3,259) (11,128)6,207 (750)The accompanying notes form an integral part of these financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)1. Incorporation and activitiesReadymix (West Indies) Limited (the “Company”) is a limited liability company incorporated and resident in the Republic of Trinidadand Tobago and its shares are publicly listed on the Trinidad and Tobago Stock Exchange. The Company is the parent company ofsubsidiaries operating 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 asat 31st December, 2009 holds 71% (2008: 71%) of the issued ordinary shares of the Company. Readymix (West Indies) Limited anditssubsidiaries (the “Group”) operate in Trinidad and Tobago, Barbados, St. Maarten and St. Martin. The principal business activities ofthe Group are the manufacture and sale of pre–mixed concrete and the winning and sale of sand and gravel.Readymix (West Indies) Limited has a 100% shareholding in Island Concrete Products N.V and Island Concrete SARL companies, whoare registered and operate in St. Maarten and St. Martin respectively. The Company also holds a 60% shareholding in Premix & PrecastConcrete Incorporated, a company incorporated in Barbados.2. Significant accounting policiesa) Basis of preparationThe consolidated financial statements of the Group are prepared under the historical cost convention.Statement of ComplianceThe 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 disclosuresThe accounting policies adopted are consistent with those of the previous financial year except that the Group has adopted thefollowing new and amended IFRS and IFRIC (International Financial Reporting Interpretations Committee) interpretations as of 1stJanuary, 2009:• IFRS 2 Share-based Payment: Vesting Conditions and Cancellations effective 1st January, 2009• IFRS 7 Financial Instruments: Disclosures effective 1st January, 2009• IAS 23 Borrowing Costs (Revised) effective 1st January, 2009• IAS 32 Financial Instruments: Presentation and IAS 1 Puttable Financial Instruments: Presentation and Obligations Arising onLiquidation effective 1st January, 2009• IFRIC 13 Customer Loyalty Programmes effective 1st July, 2008• IFRIC 16 Hedges of a Net Investment in a Foreign Operation effective 1st October, 2008• Improvements to IFRSs (May 2008)Adoption of these Standards and Interpretations did not have any effect on the financial performance or position of the Group. However,the following standards have impacted the presentation and disclosure in the financial statements and are described below:IFRS 7 Financial Instruments: DisclosuresThe amended standard requires additional disclosures about fair value measurement and liquidity risk. Fair value measurements relatedto items recorded at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by class, for all financialinstruments recognized at fair value. In addition, a reconciliation between the beginning and ending balance for level 3 fair valuemeasurements is now required, as well as significant transfers between levels in the fair value hierarchy. The amendments also clarify therequirements for liquidity risk disclosures with respect to derivative transactions and assets used for liquidity management.18BUILD TO LAST FOR GENERATIONS

19BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)a) Basis of preparation (continued)Changes in accounting policy and disclosures (continued)IFRS 8: Operating SegmentsIFRS 8 replaced IAS 14 Segment Reporting upon its effective date. The Group concluded that the operating segments determined inaccordance with IFRS 8 are the same as the business segments previously identified under IAS 14. IFRS 8 disclosures are shown in Note19, including the related revised comparative information.IAS 1: Presentation of Financial StatementsThe revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details oftransactions with owners, with non-owner changes in equity presented in a reconciliation of each component of equity. In addition, thestandard introduces the statement of comprehensive income: it presents all items of recognized income and expense, either in one singlestatement or in two linked statements. The Group has elected to present two statements.IAS 23: Borrowing CostsThe revised IAS 23 requires capitalization of borrowing costs that are directly attributable to the acquisition, construction or productionof a qualifying asset. This is consistent with the Group’s policy and this did not impact 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 yeteffective or not relevant to the Group’s operations:IFRS 2 Share-based Payment: Group Cash settled Share-based Payment Transactions (effective 1st January, 2010). Clarifies the definitionof vesting conditions and prescribes the treatment for an award that is cancelled and provides guidance on the scope and the accountingfor group cash-settled share based payment transactions.IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items (effective 1st July, 2009). The amendment clarifiesthat an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial instrument as a hedgeditem.This also covers the designation of inflation as a hedged risk or portion in particular situations.IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate Financial Statements (Amended) (effective 1st July,2009) including consequential amendments to IFRS 7, IAS 21, IAS 28, IAS 31 and IAS 39. IFRS 3 (Revised) introduces significantchanges in the accounting for business combinations occurring after this date. Changes affect the valuation of non-controlling interest,the accounting for transaction costs, the initial recognition and subsequent measurement of a contingent consideration and businesscombinations achieved in stages. These changes will impact the amount of goodwill recognized, the reported results in the period that anacquisition occurs and future reported results.IAS 27 (Amended) requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as atransaction with owners in their capacity as owners. Therefore, such transactions will no longer give rise to goodwill, nor will it give riseto a gain or a loss. Furthermore, the amended standard changes the accounting for losses incurred by the subsidiary as well as the lossof control of a subsidiary. The changes by IFRS 3 (Revised) and IAS 27 (Amended) will affect future acquisitions or loss of control ofsubsidiaries and transactions with non-controlling interests.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(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 yeteffective or not relevant to the Group’s operations (continued):IFRIC 9 Remeasurement of Embedded Derivatives and IAS 39 Financial Instruments: Recognition and Measurement (effective for periodending on or after 30th June, 2009). This amendment to IFRIC 9 requires an entity to assess whether an embedded derivative must beseprated from a host contract when the entity reclassifies a hybrid financial asset out of the fair value through profit or loss category. Thisassessment is to be made based on circumstances that existed on the later of the date the entity first became a party to the contract andthe date of any contract amendments that significantly changes the cash flows of the contract. IAS 39 now states that if an embeddedderivative cannot be reliably measured, the entire hybrid instrument must remain classified as at fair value through profit and loss.IFRIC 17 Distributions of Non-cash Assets to Owners (effective from 1st July, 2009) provides guidance on how to account for suchtransactions. It also provides guidance on when to recognize a liability and how to measure it and the associated assets, and when toderecognize the asset and liability and the consequences of doing so.IFRIC 18 Transfers of Assets from Customers (effective from 1st July, 2009) provides guidance on when and how an entity shouldrecognize items of property, plant and equipment received from their customers.In May 2008 and April 2009 the International Accounting Standards Board issued omnibus of amendments to its standards, primarily witha view to removing inconsistencies and clarifying wording. There are separate transitional provisions for each standard. The followingamendments resulted in changes to accounting policies but did not have any impact on the financial position or performance of the Groupor are not applicable to the activities of the Group:IFRS 5 Non-current Assets Held for Sale and Discontinued Operations: Clarifies that the disclosures required in respect of non-currentassets and disposal groups classified as held for sale or discontinued operations are only those set out in IFRS 5. The disclosure requirementsof other IFRSs only apply if specifically required for such non-current assets or discontinued operations.IFRS 8 Operating Segment Information: Clarifies that segment assets and liabilities need only be reported when those assets and liabilitiesare included in measures that are used by the chief operating decision maker.Improvements to IFRSsIAS 1 Presentation of Financial Statements: Assets and Liabilities classified as held for trading in accordance with IAS 39 FinancialInstruments: Recognition and Measurement are not automatically classified as current in the statement of financial position.IAS 7 Statement of Cash Flows: Explicitly states that only expenditure that results in recognizing an asset can be classified as a cash flowfrom investing activities.IAS 16 Property, Plant and Equipment: Replaces the term “net selling price” with “fair value less costs to sell”.IAS 18 Revenue: The Board has added guidance (which accompanies the standard) to determine whether an entity is acting as a principalor as an agent. The features to consider are whether the entity:20BUILD TO LAST FOR GENERATIONS

21BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(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 notyet effective or not relevant to the Group’s operations (continued):• Has primary responsibility for providing the goods and service• Has inventory risk• Has discretion in establishing prices• Bears the credit riskIAS 20 Accounting for Government Grants and Disclosures of Government Assistance: Loans granted with no or low interest will not beexempt from the requirement to impute interest. Interest is to be imputed on loans granted with below-market interest rates.IAS 23 Borrowing Costs: The definition of costs is revised to consolidate the two types of items that are considered components of“borrowing costs” into one – the interest expense calculated using the effective interest rate method calculated in accordance with IAS39.IAS 36 Impairment of Assets: When discounted cash flows are used to estimate “fair value less costs to sell” additional disclosure isrequired about the discount rate, consistent with disclosures required when the discounted cash flows are used to estimate “value in use”.The amendment clarified that the largest unit permitted for allocating goodwill, acquired in a business combination, is the operatingsegment as defined in IFRS 8 before aggregation for reporting purposes.IAS 38 Intangible Assets: Expenditure on advertising and promotional activities is recognized as an expense when the Group either hasthe right to access the goods or has received the service. The reference to there being rarely, if ever, persuasive evidence to support anamortization method of intangible asset other than a straight-line method has been removed.Other amendments resulting from improvements to IFRSs to the following standards that are not applicable to the Group and/or did nothave any impact on the accounting policies, financial position or performance of the Group:• IFRS 2 Share-based Payment• IFRS 7 Financial Instruments: Disclosures• IAS 8 Accounting Policies, Change in Accounting Estimates and Error• IAS 10 Events after the Reporting Period• IAS 19 Employee Benefits• IAS 27 Consolidated and Separate Financial Statements• IAS 28 Investments in Associates• IAS 31 Interest in Joint Ventures• IAS 34 Interim Financial Reporting• IAS 38 Intangible Assets• IAS 40 Investment Properties• IAS 39 Financial Instruments: Recognition and Measurement

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)a) Basis of preparation (continued)Changes in accounting policy and disclosures (continued)Improvements to IFRSs (continued)Other amendments resulting from improvements to IFRSs to the following standards that are not applicable to the Group and/or did nothave any impact on the accounting policies, financial position or performance of the Group (continued):• IFRIC 9 Reassessment of Embedded Derivatives• IFRIC 16 Hedge of a Net Investment in a Foreign Operationb) Basis of ConsolidationThese consolidated financial statements comprise the financial statements of Readymix (West Indies) Limited (the “Parent”) and itssubsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent, using consistentaccounting policies. Subsidiary undertakings, being those companies in which the Group, directly or indirectly has an interest of morethan one half of the voting rights, are fully consolidated from the date of acquisition, being the date on which the Group obtainedcontrol. All intercompany transactions, balances and unrealised surpluses and deficits on transactions between group companies areeliminated in full.Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in thestatement of income and within equity in the consolidated statement of financial position.c) Significant accounting judgments, estimates and assumptionsThe preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions thataffect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reportingdates. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment tothe carrying amount of the asset or liability affected in future periods. The key judgements, estimates and assumptions concerningthe future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a materialadjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:Deferred tax assetsDeferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available againstwhich the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that canbe recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.Pension benefitsThe 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 judgements and assumptions in determining discount rates, expected rates of return on assets,future salary increases and future pension increases. Due to the long-term nature of these plans, such assumptions are subject tosignificant uncertainty. All assumptions are reviewed at the reporting date.22BUILD TO LAST FOR GENERATIONS

23BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)c) Significant accounting judgments, estimates and assumptions (continued)Property, plant and equipmentManagement exercises judgement in determining whether cost incurred can accrue significant future economic benefits to the Groupto enable the value to be treated as a capital expense.Management also exercises judgement in the annual review of the useful lives of all categories of property, plant and equipment andthe resulting depreciation charge determined thereon.Impairment of goodwillThe Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the ‘value in use’ of thecash generating units to which the goodwill is allocated. Estimating a value in use amount requires management to make an estimateof the expected future cash flows from the cash generating units and also to choose a suitable discount rate in order to calculate thepresent value of those cash flows. Further details are provided in Note 8.d) Business combinations and goodwillBusiness combinations are accounted for using the purchase method. This involves recognising identifiable assets (includingpreviously unrecognised intangible assets) and liabilities (including contingent liabilities and excluding future restructuring) of theacquired business at fair value.Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the business combination overthe Group’s interests in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition,goodwill is measured at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units for the purposeof impairment testing. From the acquisition date goodwill is allocated to these cash generating units or groups of cash generating unitswhich benefit from the synergies of the combination.Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carryingvalue may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash generating unit (orgroup of cash-generating units) to which the goodwill relates. When the recoverable amount of the cash-generating unit (or group ofcash-generating units) is less than the carrying amount of the cash-generating unit (group of cash-generating units) to which goodwillhas been allocated, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. TheGroup performs its annual impairment test of goodwill as at 31st December.e) Property, plant and equipmentIt is the Group’s policy to account for property, plant and equipment at cost less accumulated depreciation and/or accumulatedimpairment losses, if any (Note 7). Such cost includes the cost of replacing part of the property, plant and equipment and borrowingcosts for long-term construction projects if the recognition criteria are met. All other repairs and maintenance are recognised in thestatement of income.Depreciation is provided on the straight line basis at rates estimated to write–off the assets over their expected useful lives. Theestimated useful lives of assets are reviewed periodically, taking account of commercial and technological obsolescence as well asnormal wear and tear, and the depreciation rates are adjusted if appropriate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)e) Property, plant and equipment (continued)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 useor disposal. Any gain or loss arising on the derecognising of the asset (calculated as the difference between the net disposal proceedsand the carrying amount of asset) is included in the statement of income in the year the asset is derecognised.f) InventoriesPlant spares and raw materials are valued at the lower of cost and net realizable value using the average cost method. Work in progressand finished goods are valued at the lower of cost, including attributable production overheads, and net realizable value. Net realizablevalue is the estimate of the selling price less costs of completion and direct selling expenses.g) Foreign currency translationThe consolidated financial statements are presented in Trinidad and Tobago dollars (expressed in thousands), which is the Group’sfunctional and presentation currency. That is the currency of the primary economic environment in which the Group operates. Eachentity in the Group determines its own functional currency and items included in the financial statements of each entity are measuredusing that functional currency.Foreign currency transactionsTransactions 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 exchangeruling at the reporting date. Non–monetary assets and liabilities are translated using exchange rates that existed when the values weredetermined. Exchange differences on foreign currency transactions are recognized in the statement of income.Foreign entitiesOn consolidation, assets and liabilities of foreign entities are translated into Trinidad and Tobago dollars at the rate of exchange rulingat the reporting date and their income statements are translated at the weighted average exchange rates for the year. The exchangedifferences arising on re-translation are taken directly to 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 statement ofincome.24BUILD TO LAST FOR GENERATIONS

25BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)h) TaxationCurrent income taxCurrent income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered fromor paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantivelyenacted by the reporting date.Deferred income taxA deferred tax charge is provided, using the liability method, on all temporary differences between the tax bases of assets andliabilities 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, carryforwardof unused tax credits and tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each statementof financial position date and reduced to the extent that it is no longer probable that sufficient future taxable profit will be available toallow all or part of the deferred tax assets to be utilised.i) Employee benefitsThe parent company employees are members of the Trinidad Cement Limited Employee’s pension plan, while Premix & PrecastConcrete Incorporated’s employees are members of the Arawak Cement Limited Employee’s pension plan. The pension plans aregenerally funded by payments from employees and by the relevant Group companies, taking account of the rules of the pension plansand 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 providingpensions is charged to the statement of income so as to spread the regular cost over the service lives of the employees in accordancewith the advice of independent actuaries who carry out a full valuation every three years. The pension obligation is measured at thepresent value of the estimated future cash outflows using interest rates of long term government securities. All actuarial gains andlosses are spread forward over the average remaining service lives of employees.j) Financial instrumentsFinancial instruments carried on the statement of financial position include cash and bank balances including advances/overdrafts,short-term deposits, accounts payables, accounts receivables and borrowings. The particular recognition methods adopted are disclosedin the individual policy statements associated with each items.k) Cash and short-term depositsCash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-term deposits readilyconvertible to cash. For the purpose of the statement of cash flows, cash and cash equivalents include all cash and bank balances, shortterm deposits and overdraft balances with maturities of less than three months from date of establishment.l) Revenue recognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliablymeasured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)l) Revenue recognition (continued)The following specific recognition criteria must be met before revenue is recognised:Sales of concrete and other materialsRevenue from the sale of concrete and other materials is recognised when the significant risks and rewards of ownership of the goodshave passed to the buyer, usually on delivery of the goods.Interest incomeInterest income is recognized as interest accrues.m) Trade and other receivablesTrade and other receivables are carried at anticipated realisable value. A provision is made for doubtful receivables based on a reviewof all outstanding amounts at year end.n) Trade and other payablesLiabilities for trade and other amounts payable, which are normally settled on 30–90 day terms are carried at cost, which is the fairvalue of the consideration to be paid in the future for goods and services received whether or not billed to the Group.o) Earnings per shareEarnings per share is computed by dividing net profit attributable to the shareholders of the parent for the year by the weighted averagenumber of ordinary shares in issue during the year. Diluted earnings per share is computed by adjusting the weighted average numberof ordinary shares in issue for the assumed conversion of potential dilutive ordinary shares into issued ordinary shares. The Group hasno potential dilutive ordinary shares in issue.p) ProvisionsProvisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable thatan outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.q) LeasesOperating leasesLeases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operatingleases. Payments made under operating leases are charged to the statement of income on a straight-line basis over the period of thelease.Finance leasesFinance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, arecapitalised at the inception of the lease at the fair value of the leased assets or if lower, at the present value of the minimum leasepayments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constantrate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalised leased assetsare depreciated over the shorter of the estimated useful life of the asset or the lease term.26BUILD TO LAST FOR GENERATIONS

27BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)r) Interest bearing loans and borrowingsBorrowings are initially stated at cost, being the fair value of the consideration received, net of issue costs associated with theborrowings. After initial recognition, borrowings are stated at amortised cost using the effective yield method; any difference betweenproceeds and the redemption value is recognised in the statement of income over the period of the borrowings.s) Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantialperiod of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowingcosts are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection withthe borroing of funds.t) Impairment of assetsNon–financial assetsThe 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’srecoverable 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 determinedfor an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groupsof assets. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written downto its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretaxdiscount 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 thefunction of the impaired asset.An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses mayno longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previouslyrecognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverableamount since the last impairment loss was recognized. If that is the case the carrying amount of the asset is increased to its recoverableamount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had noimpairment been recognized for the asset in prior years. Such reversal is treated as a revaluation increase.Financial assetsThe carrying value of all financial assets not carried at fair value through the statement of income is reviewed for impairmentwhenever events or circumstances indicate that the carrying amount may not be recoverable. The identification of impairment andthe determination of recoverable amounts is an inherently uncertain process involving various assumptions and factors, including thefinancial condition of the counterparty, expected future cash flows, observable market prices and expected net selling prices.u) Comparative informationCertain changes in presentation of comparative information have been made in these financial statements. These changes relateto the reclassification of debt factoring from ‘Payable and Accruals’ to ‘Bank Advances’ which is consistent with the current yearpresentation. These changes had no effect on the net assets or operating results of the previous year.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2009 2008$ $3. Operating profitRevenue 210,850 301,022Less expenses:Raw materials and consumables 73,641 108,867Personnel remuneration and benefits 44,525 1,001Equipment hire 32,838 34,886Repairs and maintenance 10,572 15,467Other operating expenses 20,341 25,669Provision for doubtful debts 2,107 443Depreciation 9,798 10,876Fuel and electricity 3,454 4,963Impairment of goodwill – 5,405Insurance 696 335Turnover tax 278 –Changes in raw materials and work in progress (3,598) (8,402)16,198 51,512Other income 801 620Operating profit 16,999 52,132Included in other income is a gain on disposal of property, plant and equipment of $4 thousand(2008: gain of $0.027 million).2009 2008$ $Personnel remuneration and benefits include:Salaries and wages 37,375 44,756Pension cost – defined benefit plan (Note 15 (a)) 2,076 1,790Other benefits 3,541 2,844National insurance 1,533 1,61144,525 51,00128BUILD TO LAST FOR GENERATIONS

29BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2009 2008$ $4. Finance costsInterest costs 1,924 2,424Interest income (479) (302)Exchange (gain)/loss (77) (183)1,368 1,9395. Taxationa) Taxation chargeDeferred taxation (Note 16) 402 (156)Prior year under accrual – 343Current taxation 5,498 14,7395,900 14,926b) Reconciliation of applicable tax charge to effective tax chargeProfit before taxation 15,631 50,193Tax calculated at the rate of 25% 3,908 12,548Effect of different tax rates outside Trinidad and Tobago (433) 154)Net effect of other charges and allowances 1,221 553Prior year under accrual – 343Effect of disallowed expenses 1,026 1,387Business and green fund levies 178 249Taxation charge 5,900 14,9266. Earnings per shareNet profit attributable to shareholders of the Parent for the year 9,731 35,171Weighted average number of ordinary shares issued (thousands) 12,000 12,000Basic and diluted earnings per share (expressed in $ per share) $0.81 $2.93The Company has no dilutive potential ordinary shares in issue.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)7. Property, plant and equipmentAt 31st December, 2009PlantmachineryandLand equipment Officeand and furniture Capitalbuildings motor vehicles equipment WIP Total$ $ $ $ $Cost 24,950 126,981 7,908 2,933 162,772Accumulated depreciation (13,097) (97,054) (6,202) – (116,353)Net book amount 11,853 29,927 1,706 2,933 46,4191st January, 2009 11,880 32,436 1,455 2,849 48,620Additions 1,529 2,927 1,127 1,978 7,561Transfer from WIP 10 1,884 – (1,894) –Disposals and adjustments – 36 – – 36Depreciation charge (1,566) (7,356) (876) – (9,798)31st December, 2009 11,853 29,927 1,706 2,933 46,419At 31st December, 2008Cost 23,411 122,170 6,781 2,849 155,211Accumulated depreciation (11,531) (89,734) (5,326) – (106,591)Net book amount 11,880 32,436 1,455 2,849 48,6201st January, 2008 9,679 37,924 774 2,584 50,961Additions 3,598 3,251 1,176 966 8,991Transfer from WIP 338 363 – (701) –Disposals and adjustments – (457) 1 – (456)Depreciation charge (1,735) (8,645) (496) – (10,876)31st December, 2008 11,880 32,436 1,455 2,849 48,620The carrying value of plant and equipment held under finance lease at 31st December, 2009 amounted to $5.4 million(2008: $6.4 million). These leased assets are pledged as security for the related finance lease obligation.The Group performed a review of the remaining useful life of property, plant and equipment during the year. Basedon that review there was a change in estimated remaining useful life of certain plant and equipment and accordinglythe Group recorded a reduction in the depreciation charge of $0.814 million.30BUILD TO LAST FOR GENERATIONS

31BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)8. GoodwillIn accordance with International Financial Reporting Standard 3: “Business Combinations”, goodwill acquiredthrough business combinations has been allocated to the Group’s cash generating units that are expected to benefitfrom the synergies of the combination. Impairment is determined by assessing the recoverable amount of the cashgenerating units to which goodwill relates.The carrying amount of goodwill is presented below:2009 2008$ $Goodwill at cost 12,158 12,158Accumulated impairment (10,394) (10,394)Net carrying amount 1,764 1,764At 1st January 1,764 7,169Impairment charge for the year – (5,405)At 31st December 1,764 1,764Goodwill arising through business combinations was generated by the acquisition of Premix & Precast ConcreteIncorporated (PPCI) in 2002 and Island Concrete Products N.V./Island Concrete SARL (ICNV) in 2004. In 2008the goodwill arising from the 2004 acquisition was fully eliminated.Impairment testing of goodwillThe following table highlights the goodwill and impairment information for each cash generating unit as at 31stDecember, 2009:PPCIICNVCarrying amount of goodwill 1,764 NilBasis of recoverable amount Value in use –Discount rat 12.0% –Cash flow projection term 5 years –Growth rate (extrapolation period) 1.0% –The values assigned to key assumptions reflect past experience. The recoverable amount of business units hasbeen determined based on value in use calculations using pre-tax cash flow projections based on financial budgetsapproved by senior management and the Board of Directors of the respective companies.2009 2008$ $9. InventoriesRaw materials and work in progress 31,744 27,949Plant spares and consumables 11,123 12,40742,867 40,356Inventories are shown net of provision of $0.117 million (2008: $1.0 million) and write-offs/(write-backs) of($2.333) million (2008:$0.324 million) respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2009 2008$ $10. Receivables and prepaymentsTrade receivables 81,772 76,252Less: provision for doubtful debts (18,340) (15,733)Trade receivables (net) 63,432 60,519Sundry receivables and prepayments 2,437 2,648Due from related parties (Note 18 (a)) 836 3,212Deferred expenditure 420 –Corporation tax recoverable 3,122 2,78270,247 69,161As at 31st December, the aging analysis of trade receivables is as follows:Past due but not impairedNeither pastOverTotal due nor impaired 1-90 days 91-180days 180 days$ $ $ $ $2009 63,432 7,954 16,119 16,298 23,0612008 60,519 15,715 28,409 5,618 10,777As at 31st December, trade receivables at a value of $18.3 million (2008: $15.7 million) were impaired and fullyprovided for. Movements in the provision for impairment of receivables were as follows:2009 2008$ $At 1st January 15,733 15,290Charge for the year 3,573 1,999Unused amounts reversed (966) (1,556)At 31st December 18,340 15,7332009 2008$ $11. Cash and short-term depositsCash on hand and bank 4,313 7,378Short-term deposits 5,153 3,0009,466 10,378Cash at bank earns interest at floating rates based on daily deposits rates. Short-term deposits are readily convertibleinto cash and consist of TT$ deposits, and interest is earned at rates ranging between 4% -6% per annum (2007:6%-7%).32BUILD TO LAST FOR GENERATIONS

33BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2009 2008$ $12. Bank advancesBank overdraft 503 1,201Demand loan/ bankers’ acceptances – 3,015Debt factoring 2,756 6,9123,259 11,128Bank advances of $3.015 million were repaid during the year. These were secured by a charge on the fixed andfloating assets of the Company. Interest for 2009 was charged at 8% per annum (2008: 9%).RML entered into debt factoring arrangements, whereby trade receivable balances amounting to $2.5 million(2008: $6.9 million).was sold to American International Corporation Finance Limited (AIC). AIC discounted thereceivable at a rate of 9%.Bank advances bear interest at 8% per annum (2008: 9%) and are secured by charges over the fixed and floatingassets of the parent company and a first mortgage over property situated at Valencia. The facility held by IslandConcrete Products N.V. attracts interest at the rate of 8.5% per annum (2008 : 8.5%) and is secured by a charge overthe fixed and floating assets of that company and by a guarantee from Readymix (West Indies) Limited.2009 2008$ $13. Payables and accrualsDue to related parties (Note 18 (a)) 15,445 8,955Sundry payables and accruals 14,830 12,363Trade payables 16,699 18,338Corporation tax – 1,97246,974 41,6282009 2008$ $14. BorrowingsAmounts payable within:One year 3,846 4,458Two years 3,184 3,790Three years 1,835 3,011Four years 1,958 2,001Five and more years 1,027 2,97711,850 16,237Current portion (3,846) (4,458)8,004 11,779

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)14. Borrowings (continued)Borrowings comprise:• A ten (10) year loan with an outstanding balance of $8.1 million (2008: $10.0 million), taken by the parentcompany carrying rates of interest of 6%, fixed for the first five years and variable over the remaining fiveyears. At the end of 2009 the rate of interest was 7.85%. The security for this loan is a first charge on the fixedand floating assets of Readymix (West Indies) Limited.• Medium term loans, with aggregate outstanding balance of $1.0 million (2008: $1.9 million), taken by Premix& Precast Concrete Incorporated, which bear rates of interest of 9.7%, and is secured by a charge over thefixed 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 $2.8 million(2008:$4.0 million) bear interest at approximately 7%.Finance leasesFuture minimum lease payments under these financial leases are as follows:Amounts payable within:2009 2008$ $One year 1,502 1,502After one year but not more than five years 1,548 3,049Total minimum lease payments 3,050 4,551Less amounts representing interest charges (258) (519)Present value of minimum lease payments 2,792 4,03215. Employee benefits assetPension plan-asset 1,828 1,473The details below were extracted from information supplied by independent professional actuaries.a) Amounts recognized in the statement of income are as follows:34BUILD TO LAST FOR GENERATIONS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)15. Employee benefits asset (continued)b) Movement in the pension plan benefit asset in the balance sheet (continued):2009 2008$ $Changes in the fair value of plan assets are as follows:Fair value of plan assets at 1st January 21,181 18,286Expected return 2,226 1,943Actuarial loss (640) (1,874)Benefits paid (304) (107)Employer and employees’ contribution 3,363 3,133Expense allowance (206) (200)Fair value of plans assets at 31st December 25,620 21,181The principal actuarial assumptions used for accounting purposesfor the pension plans are:2009 2008$ $Discount rate 7.00% - 7.50% 7.50% - 8.75%Expected return on plan assets 7.00% - 8.50% 7.50% - 10.00%Rate of future salary increases 6.00% - 6.25% 6.50% - 7.75%Rate of future pension increases 2.00% - 3.00% 3.50% - 3.50%The Group expects to contribute $ 2.3 million to its defined benefit plan in 2010.The major categories of plan assets in Trinidad Cement Limited Employees’ Pension Fund are as follows:2009 2008$ $Equities 42% 41%Debt securities 36% 46%Other 22% 13%36BUILD TO LAST FOR GENERATIONS

37BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)15. Employee benefits asset (continued)Experience history for the current and previous period is as follows:2009 2008 2007 2006 2005$ $ $ $ $Defined benefit obligation (26,062) (23,003) 18,464 15,352 12,587Plan assets 25,620 21,181 (18,280) (14,763) (12,797)Deficit/(surplus) (442) (1,822) 184 589 (210)Experience adjustments on plan liabilities (1,581) 207 (362) 151 73Experience adjustments on plan assets (640) (1,874) (457) (1,375) (278)The plan’s financial funding position is assessed by means of triennial actuarial valuations carried out by anindependent actuary. The last funding valuation was carried out as at 31st December, 2006 and revealed thatReadymix (West Indies) Limited’s section of the plan was in deficit to the extent of $0.7 million. The report ofthe actuary states that if Readymix continues to contribute at its current rate of 15.7% of salaries, the past servicecosts in its section will be removed by the middle of 2010.A roll forward valuation in accordance with IAS 19 ‘Employee Benefits’ using assumptions indicated above wasdone as at 31st December, 2009 for the sole purpose of preparing these financial statements.16. Deferred taxation(a) Movement in deferred taxation (net)2009 2008$ $Balance as at 1st January 4,623 4,779Other adjustments – –(Credit)/charge to income 402 (156)Balance at 31st December 5,025 4,623(b) Components of deferred tax asset/(liability)Tax losses 677 689Provisions 282 259Deferred tax asset 959 948Accelerated depreciation (4,946) (4,650)Finance leases (644) (603)Post retirement asset (392) (318)Deferred tax liability (5,982) (5,571)Net balance at 31st December 5,023 4,623

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)16. Deferred taxation (continued)Tax losses available for set off against future taxable profit amounted to $36.0 million (2008: $35.1 million) butare yet to be agreed with the tax authorities. A deferred tax asset on losses amounting to $31.5 million (2008:$30.5million) has not been recognized.17. Stated capitalAuthorisedAn unlimited number of ordinary shares of no par value2009 2008$ $Issued and fully paid12,000,000 (2008: 12,000,000) ordinary shares of no par value 12,000 12,00018. Related party disclosuresRelated party balances arose from transactions with fellow companies of the Trinidad Cement Limited Group.Management believes that these transactions were consummated on terms no less favourable than those that couldhave been obtained from other parties providing those goods and services.(a) Related party balancesAmounts due from related parties (Note 10):2009 2008$ $TCL Packaging Limited – 3,150Trinidad Cement Limited 822 13TCL Ponsa Manufacturing Limited 14 21Arawak Cement Company Limited – 28836 3,212Amounts due from related parties include amounts due to the parent company from TCL Packaging Limited of$3.150 million. This balance consists of US $0.240 million and TT $1.638 million short term loans which bearinterest at interest rates of 7% and 8% respectively. This loan was repaid to the parent company by six monthlyinstalments commencing 31st January, 2009 and ending 30th June, 2009.38BUILD TO LAST FOR GENERATIONS

39BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)18. Related party disclosures (continued)Amounts due to related parties (Note 13):2009 2008$ $Trinidad Cement Limited 12,570 7,676TCL Trading Limited 1,508 –Caribbean Cement Company Limited 4 –Arawak Cement Company Limited 1,363 1,27915,445 8,955(b) Related party transactions2009 2008$ $Purchases of goods 46,767 67,832Loans advanced to TCL Packaging Limited – 3,150Management fees 1,763 1,839Interest income 390 635Compensation of key management personnelKey management personnel are those persons having authority and responsibility for planning, directingand controlling the activities of the Company.Compensation of key management personnel:2009 2008$ $Short-term employment benefits 4,187 4,375Pension plan benefits 154 125In 2009, the total directors’ fees were $0.189 million (2008: $0.120 million).19. Segmental informationThe primary segment reporting format is determined to be its business segments. Secondary information isreported geographically. The Group derives 99% of its revenue from the sale of pre-mixed concrete in Trinidad &Tobago, Barbados and St. Maarten, whilst the sale of aggregates and the provision of technical services are purelyincidental to this main activity. Accordingly, practically all of the Group’s assets and liabilities are associated withthe pre-mixed concrete business.The Group’s geographical segments are based on the location of the Group’s assets. Sales to external customersdisclosed in geographical segments are based on the geographical location of its customers.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)19. Segmental information (continued)The following table presents information regarding the Group’s geographical segments for the years ended 31stDecember, 2009 and 2008:Trinidad St. Mrarten /and Tobago St. Martin Barbados Eliminations Total$ $ $ $ $Year ended 31st December, 2009Total revenue 178,133 17,072 17,340 – 212,545Inter-segment revenue – (1,695) – – (1,695)Third party revenue 178,133 15,377 17,340 – 210,850Profit/(loss) before tax 22,559 (6,457) (471) – 15,631Segment assets 164,325 8,007 10,045 (8,827) 173,550Capital expenditure 6,691 630 240 – 7,561Trinidad St. Maarten /and Tobago St. Martin Barbados Eliminations Total$ $ $ $ $Year ended 31st December, 2008Total revenue 247,268 33,909 25,364 – 306,541Inter-segment revenue – (5,519) – – (5,519)Third party revenue 247,268 28,390 25,364 – 301,022Profit/(loss) before tax 51,368 (1,497) 322 – 50,193Segment assets 159,617 11,454 11,397 (9,768) 172,700Capital expenditure 7,991 283 717 – 8,99140BUILD TO LAST FOR GENERATIONS

41BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)20. Fair valueThe fair value of short term financial assets and liabilities comprising cash and bank balances, receivables andpayables approximate their carrying amounts because of the short term maturities of these instruments. The fairvalue and carrying amounts of financial assets and liabilities is presented below:Carrying Fair Carrying Fairamount value amount value2009 2009 2008 2008$ $ $ $Financial assetsCash and short-term deposits 9,466 9,466 10,378 10,378Receivables and prepayments 70,247 70,247 69,161 69,161Financial liabilitiesBank advances 3,259 3,259 11,126 11,126Payables and accruals 46,974 46,974 41,628 41,628Borrowings 11,850 9,877 16,237 14,27021. Commitments and contingenciesContingenciesAt 31st December, 2009 the Group had contingent liabilities in respect of bank guarantees, and custom bonds andreceivables factoring arrangement amounting to $3.2 million (2008: $5.4 million).Operating lease commitmentsThe Group’s St. Maarten subsidiary, Island Concrete Products N.V., had renewed the business agreement to leasethe property at their plant location for an amount of $0.098 million per year for a period of sixty years ending in2069.22. Financial risk managementIntroductionThe Group’s activities expose it to a variety of financial risks, including the effects of changes in debt and equityprices, interest rates, market liquidity conditions, and foreign currency exchange rates which are accentuatedby 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 riskmanagement measures are focused on minimising the potential adverse effects on the financial performance of theGroup of changes in financial markets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)22. Financial risk management (continued)The Board of Directors is ultimately responsible for the overall risk management approach and for approving therisk strategies, principles and policies and procedures. Day to day adherence to risk principles is carried out by theexecutive management in compliance with the policies approved by the Board of Directors.Credit riskCredit risk is the risk that a counter-party will not meet its obligations under a financial instrument or customercontract, leading to a financial loss. The Group is exposed to credit risks from its operating activities (primarilyfor 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 concentrationin 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 acceptedin relation to one customer, or group of customers, and to geographical and industry segments. Such risks aremonitored on an ongoing basis, and limits on the levels of credit risk that the Group can engage in are approvedby the Board of Directors.Exposure to credit risk is further managed through regular analysis of the ability of debtors and borrowers to settleoutstanding balances, meet capital and interest repayment obligations and by changing these lending limits whenappropriate. 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 financialposition, without taking account of any other credit enhancements:GrossGrossmaximum maximumexposure exposure2009 2008Receivables and prepayments 70,247 69,161Cash and short-term deposits 9,466 10,378Total credit risk exposure 79,713 79,53942BUILD TO LAST FOR GENERATIONS

43BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)22. Financial risk management (continued)Credit Risk related to receivablesCustomer credit risk is managed in accordance with the Group’s established policy, procedures and controlrelating to customer credit risk management. Credit limits are established for all customers based on internalrating criteria. Outstanding customer receivables are regularly monitored. At 31st December, 2009 the Group hadapproximately 14 individual customers (2008: 11 customers) that owed the Group more than $1.0 million eachand accounted for approximately 67% (2008: 66%) of all trade receivables owing.Credit risk related to cash and short-term depositsCredit risks from balances with banks and financial institutions are managed in accordance with Group policy.Investments of surplus funds are made only with approved counterparties and within limits assigned to eachcounterparty. Counterparty limits are reviewed by the Company’s Board of Directors on an annual basis, and maybe updated throughout the year subject to approval of the Company’s Finance Committee. The limits are set tominimize the concentration of risks and therefore mitigate financial loss through potential counterparty failure.Foreign currency riskCurrency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchangerates. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit’sfunctional currency. Management monitors its exposure to foreign currency fluctuations and employs appropriatestrategies to mitigate any potential losses.The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate,with all other variables held constant, of the Group’s profit before tax and the Group’s equity:Change in US Effect on profit Effect ondollar rate before tax equity$ $2009US Dollar ± 0.99% ± 27 ± 20Euro ± 0.48% ± 41 ± 302008US Dollar ± 0.66% ± 9 ± 7Euro ± 0.52% ± 86 ± 65

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)22. Financial risk management (continued)Foreign currency risk (continued)The aggregate value of financial assets and liabilities by denominated currency are as follows:2009ASSETSTTD USD Euro BDS Total$ $ $ $ $Cash and short-term deposits 8,715 459 130 162 9,466Receivables and prepayments 65,502 1,552 966 2,227 70,247LIABILITIES74,217 2,011 1,096 2,389 79,713Bank advances 2,756 503 – – 3,259Payables and accruals 38,820 4,280 251 3,623 46,974Borrowings 10,945 – – 905 11,8502008ASSETS52,521 4,783 251 4,528 62,083Cash and short-term deposits 9,002 1,115 82 179 10,378Receivables and prepayments 60,998 3,048 2,325 2,790 69,161LIABILITIES70,000 4,163 2,407 2,969 79,539Bank advances 9,927 1,083 18 – 11,128Payables and accruals 34,357 3,307 263 3,701 41,628Borrowings 14,021 – 365 1,851 16,23758,305 4,390 746 5,552 68,99344BUILD TO LAST FOR GENERATIONS

45BUILD TO LAST FOR GENERATIONSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)22. Financial risk management (continued)Foreign currency risk (continued)Interest rate riskInterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate becauseof changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relateprimarily to bank advances and other borrowings. The Group manages its interest rate risk by having a balancedportfolio of fixed and variable rate loans and borrowings.The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with other variablesheld constant of the Group’s profit before tax and equity (through the impact on floating rate borrowings):Increase/decrease in Effect on profit Effect onbasis points before tax equity2009 Banker’s acceptances +50 – –-50 – –2008 Banker’s acceptances +50 (21) (16)-50 21 16Liquidity riskLiquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due undernormal and stress circumstances. The Group monitors its liquidity risk by considering the maturity of both itsfinancial investments and financial assets and projected cash flows from operations. Where possible the Grouputilizes surplus internal funds to a large extent to finance its operations and ongoing projects. However, the Groupalso 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 31st December based oncontractual undiscounted payments:Year ended31st December, 2009 On demand 1 year 1 to 5 years > 5 years Total$ $ $ $Bank advances 3,259 – – – 3,259Borrowings – 3,846 6,977 1,027 11,850Payables and accruals – 46,974 – – 46,9743,259 50,820 6,977 1,027 62,083

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST DECEMBER, 2009(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)22. Financial risk management (continued)Liquidity risk (continued)Year ended31st December, 2008 On demand 1 year 1 to 5 years > 5 years Total$ $ $ $ $Bank advances 11,128 – – – 11,128Borrowings – 4,458 8,802 2,977 16,237Payables and accruals – 41,628 – – 41,62811,128 46,086 8,802 2,977 68,99323. Capital managementThe primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating andhealthy capital ratios in order to support its business and maximize shareholder value, and comply with the capitalrequirements 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 conditionsTo maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, returncapital to shareholders or issue new shares. No changes were made in the objectives, policies or processes duringthe years ended 31st December, 2009 and 31st December, 2008. For 2009 and 2008, the Group complied with allexternally imposed capital ratio requirements to which it is subject.24. DividendsDuring the year, the Board of Directors of Readymix (West Indies) Limited declared and paid the 2008 finaldividend of 20 cents per share amounting to $2.4 million (2007: 20 cents).25. Subsequent eventsThe Board of Directors decided to suspend operations at Island Concrete Products N.V/Island Concrete SARLeffective 1st December, 2009 for a three month period. There has been a major reduction in the demand forconcrete on the island, which has impacted negatively on the financial position of the Company. The Companyrecorded $6.5million net loss for 2009.The Group received an offer to purchase 100% shareholding of Island Concrete Products N.V., subsequent to thereporting date and negotiations are currently taking place.46BUILD TO LAST FOR GENERATIONS

NOTES47BUILD TO LAST FOR GENERATIONS

48BUILD TO LAST FOR GENERATIONSNOTES

NOTES49BUILD TO LAST FOR GENERATIONS

REPUBLIC OF TRINIDAD AND TOBAGOThe Companies Act, 1995(Section 144)MANAGEMENT PROXY CIRCULAR1. Name of Company:READYMIX (WEST INDIES) LIMITED. Company No. R-84 (C).2. Particulars of Meeting:Fifty-first Annual Meeting of the Company to be held on 10th June 2010 at the HCL Organizational and DevelopmentCentre, #22 Orange Grove Road, Tacarigua, Trinidad.3. Solicitation:It is intended to vote the Proxy solicited hereby (unless the Shareholder directs otherwise) in favour of all resolutionsspecified 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 CompaniesAct, 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 CompaniesAct, 1995.DATE NAME AND TITLE SIGNATURE3rd May 2010Isha Reuben-Theodore,Company Secretary50BUILD TO LAST FOR GENERATIONS

51BUILD TO LAST FOR GENERATIONSPROXY FORMTo RegistrarReadymix (West Indies) LimitedThe Trinidad and Tobago Central Depository Ltd.10th Floor, Nicholas Tower63-65 Independence SquarePort of SpainBLOCK CAPITALS PLEASEI/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 PROXYof ____________________________________________________________________________________________ADDRESSTo 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 10th June, 2010 and any adjournment thereof.______________________________Signature of Shareholder(s)________________DatePlease indicate with an “X” in the spaces below how you wish your votes to be cast.RESOLUTIONS FOR AGAINST1. Be it resolved that the Financial Statements for the year ended 31st December, 2009 andthe reports of the Directors and Auditors thereon be adopted.2. Election of Directors:i. Be it resolved that Dr. Rollin Bertrand, who retires by rotation and being eligible, bere-elected a director of the company, in accordance with Clause 4.6.1 of By-Law No. 1.3. Be it resolved that Ernst & Young be appointed as the Auditors for the Year 2009 and thatthe 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 hereFold hereTo RegistrarReadymix (West Indies) LimitedThe Trinidad and Tobago Central Depository Ltd.10th Floor, Nicholas Tower63-65 Independence SquarePort of SpainAffixSTAMPHere

“When we long for life without difficulties, remindus that oaks grow strong in contrary winds anddiamonds are made under pressure.”Peter MarshallDesigned by Saga Studios Ltd

Build to last for Generations