2006 - Eastern Caribbean Securities Exchange

Notes to the Consolidated Financial Statementsfor the year ended 31st December, 2006Expressed in Thousands of Trinidad and Tobago dollars1. Incorporation and activitiesThe parent company (Trinidad Cement Limited) is a limited liability company incorporated and residentin the Republic of Trinidad and Tobago and its shares are publicly traded on Trinidad and Tobago StockExchange (TTSE), Jamaica Stock Exchange (JSE), Barbados Stock Exchange (BSE) and the Eastern CaribbeanSecurities Exchange (ECSE). The Group (Trinidad Cement Limited and Consolidated Subsidiaries) is involvedin the manufacture and sale of cement and lime, premixed concrete, packaging materials and the winningand sale of sand, gravel and gypsum. The registered office of the parent company is Southern MainRoad, Claxton Bay, Trinidad.2. Significant accounting policiesa) Basis of preparationThese consolidated financial statements are prepared under the historical cost convention and inaccordance with International Financial Reporting Standards.The accounting policies adopted are consistent with those of the previous year except that theGroup has adopted all the new and revised IFRSs and IFRIC interpretations that are mandatoryfor annual accounting periods beginning on or after 1st January 2006 and which are relevant tothe Group’s operations. The following revised standards and interpretations were adopted:IAS 21 – The effects of changes in foreign exchange ratesIAS 39 – Financial instruments: Recognition and measurementIFRIC 4 – Determining whether an Arrangement contains a leaseThe adoption of these revised accounting standards and interpretations has had no material effecton the Group’s financial position, however has resulted in additional disclosures.b) Basis of consolidationThese consolidated financial statements comprise the financial statements of Trinidad CementLimited (the Parent) and its Subsidiaries as at 31st December. The financial statements of thesubsidiaries are prepared for the same reporting period as the Parent, using consistent accountingpolicies. Subsidiary undertakings, being those companies in which the Group, directly or indirectly,has an interest of more than one half of the voting rights, are fully consolidated from the date ofacquisition being the date on which the Group obtained control. All intercompany transactionsand balances and unrealised surpluses and deficits on transactions between Group companiesare eliminated.Annual Report 2006