2006 - Eastern Caribbean Securities Exchange

Notes to the Consolidated Financial Statementsfor the year ended 31st December, 2006Expressed in Thousands of Trinidad and Tobago dollars19. Employee share ownership plan (ESOP) and key management compensation (continued)Independent Trustees are engaged to hold in trust all shares in the Plan as well as to carry out the necessaryadministrative functions.Shares acquired by the ESOP are funded by parent company contributions. The shares so acquired withcost of $34.8 million (2005:$36.1 million) which remain unallocated to employees have been recognisedin shareholders’ equity under ‘Unallocated ESOP Shares’. All dealings in the shares will be recogniseddirectly in equity.The fair value of shares was derived from the closing market price prevailing on the Trinidad and TobagoStock Exchange at year end.Key management compensation 2006 2005Short-term employment benefits 10,543 11,710Pension plan and post retirement benefits 451 44820. Contingent liabilitiesThere are contingent liabilities amounting to $6.9 million for various claims against the Group. Thereare several pending legal actions and other claims in which the Group is involved. It is the opinion of thedirectors, based on the information provided by the Group’s attorneys at law, that if any liability shouldarise out of these claims it is not likely to be material. Accordingly, no provision has been made in thesefinancial statements in respect of these matters.21. Cash from operations 2006 2005Profit before taxation 160,488 86,799Adjustments to reconcile profit before taxation to netcash generated by operating activities:Depreciation 116,370 113,732Impairment of goodwill - 2,458Net finance cost 104,355 93,777Loss on disposal of plant and equipment 32 2,106Foreign exchange rate adjustment - 964Net pension benefit credit (11,844) (14,827)Pension plan contribution (7,464) (6,646)Other non-cash items 16,262 11,090Changes in net current assets 378,199 289,453Increase in inventories (25,875) (58,041)(Increase)/decrease in receivables and prepayments (33,265) 4,192Decrease in payables and accruals 13,766 74,374332,825 309,978Annual Report 200631