1forward focused

Our VisiOn statement

Neal & Massy: A Force for Good

The Most Responsible and Profitable

Investment Holding/Management

Company in the Caribbean Basin

This we know.

This we believe.

To this we commit.

2 2012

MIAMI

JAMAICA

3forward focused

UK

BARBADOS

TRINIDAD & TOBAGO

GUYANA

INTEGRATED RETAIL BUSINESS UNIT

RETAIL LINE of BUSINESS

DISTRIBuTION LINe OF BuSINeSS

CONSuMeR FINANCe LINe OF BuSINeSS

AuTOMOTIve & INDuSTRIAL equIPMeNT BuSINeSS uNIT

eNeRGy & INDuSTRIAL GASeS BuSINeSS uNIT

INSuRANCe BuSINeSS uNIT

ITC BuSINeSS uNIT

OTHeR INveSTMeNTS

ANTIGuA

ST LuCIA

4 2012

5forward focused

RePORTS

Corporate Information 6

Notice of Annual Meeting 7

Chairman’s Report 8

Chief Executive officer’s Report 12

Chief financial officer’s Report 18

Executive Committee 22

Segment Review 24

Board of Directors 53

Directors’ Report 58

Management Proxy Circular 61

FINANCIALS

Statement of Management’sResponsibility 62

Independent Auditor’s Report 63 Consolidated Statement of financial Position 64

Consolidated Income Statement 66

Consolidated Statement of Comprehensive Income 68

Consolidated Statement of Changes in Equity 69

Consolidated Statement of Cash flows 70 Notes to the Summary Consolidated financial Statements 72

TABLE OF CONTENTS

6 2012

COrpOrate infOrmatiOn nOtiCe Of annuaL meeting

DIRECToRS

Mr. Arthur Lok Jack, Chairman

Mr. E. Gervase Warner, President and Group CEO

Dr. Rolph Balgobin

Mr. Robert Bermudez

Mr. Earl Boodasingh

Mr. Geoffrey Cave

Sir Allan Fields

Mr. Patrick Hylton

Mr. G. Anthony King

Mr. William Lucie-Smith

Mrs. Paula Rajkumarsingh

Mr. Gary Voss

Mr. Brian Young

CoRPoRATE SECRETARy

Ms. Wendy Kerry

ASSISTANT CoRPoRATE SECRETARy

Mrs. Camille Mascall

REGISTERED offICE

63 Park Street

Port of Spain

Trinidad, West Indies

Telephone: (868) 625-3426

Facsimile: (868) 627-9061

Email: nmh@neal-and-massy.com

Website: www.neal-and-massy.com

REGISTRAR AND TRANSfER offICE

63 Park Street

Port of Spain

AUDIToRS

PricewaterhouseCoopers

11-13 Victoria Avenue

Port of Spain

PRINCIPAL BANKERS

RBC Royal Bank

19-21 Park Street

Port of Spain

Trinidad and Tobago, West Indies

first Caribbean International Bank

74 Long Circular Road

Maraval

Trinidad and Tobago, West Indies

AUDIT CoMMITTEE

Mr. William Lucie-Smith, Chairman

Dr. Rolph Balgobin

Mr. Robert Bermudez

Mr. Brian Young

GovERNANCE & CoMPENSATIoN CoMMITTEE

Mr. Arthur Lok Jack, Chairman

Dr. Rolph Balgobin

Mr. Robert Bermudez

Mr. Geoffrey Cave

Sir Allan Fields

7forward focused

nOtiCe Of annuaL meeting

TO ALL SHAREHOLDERS

NOTICE IS HEREBY GIVEN that the Eighty-Ninth Annual Meeting of Shareholders of Neal & Massy Holdings Limited (“the Company”) will

be held at the Belmont Salon, Hilton Trinidad, Lady Young Road, Port of Spain, Trinidad on Friday February 1, 2013 at 10:00 a.m. for the

following purposes:

1 To receive and consider the Report of the Directors and the Audited Financial Statements for the financial year ended September 30,

2012 together with the Report of the Auditors thereon, and to note the final dividend.

2 To elect Directors for specified terms and (if thought fit) to pass the following Resolutions:

a THAT, the Directors to be elected be elected en bloc;

b THAT, in accordance with the requirements of paragraph 4.4.1 and 4.4.2 of By-Law No. 1 of the Company, Messrs. Arthur Lok Jack,

William Lucie-Smith, Rolph Balgobin and David O’Brien be and are hereby elected Directors of the Company to hold office until the

close of the third Annual Meeting of the Shareholders of the Company following this election;

c THAT, in accordance with the requirements of paragraph 4.4.1 and 4.4.2 of By-Law No. 1 of the Company, Messrs. E. Gervase

Warner and G. Anthony King be and are hereby elected Directors of the Company to hold office until the close of the next Annual

Meeting of the Shareholders of the Company following this election.

3 To appoint Auditors and authorise the Directors to fix their remuneration and expenses for the ensuing year.

By Order of the Board

WENDy KERRy

Corporate Secretary

December 20, 2012

NoTES

1 No service contracts were entered into between the Company and any of its Directors.

2 A Member of the Company entitled to attend and vote at the above Meeting is entitled to appoint a proxy to attend and vote in his

or her stead. Such proxy need not also be a Member of the Company. Where a proxy is appointed by a Corporate Member, the form

of proxy should be executed under seal or signed by its Attorney.

3 Corporate Members are entitled to attend and vote by a duly authorised representative who need not himself be a member. Such

appointment must be by Resolution of the Board of Directors of the Corporate Member.

4 Attached is a Proxy Form which must be completed, signed and then deposited with the Secretary of the Company, at the Company’s

Registered Office, 63 Park Street, Port of Spain, no less than 48 hours before the time fixed for holding the Meeting.

8 2012

The Neal & Massy Group of Companies has rebounded from the

difficult year in 2011 reporting a record setting $802 million in Profit

Before Tax (PBT). With Revenue growth of 7.6 percent, the Group’s

Earnings Per Share (EPS) from Continuing Operations increased by

23 percent to $5.13. After Discontinued Operations, the overall EPS

was $4.87, which is almost five times the overall EPS from 2011,

as the charges associated with the Almond Resort Inc. assets were

not repeated in 2012.

These results reflect the strength and resilience of the Group. The

difficulties encountered after acquiring the BS&T group of companies

and the impact of the financial and economic crises which began

in the Caribbean in 2009, are almost completely behind us. The

Group’s Executives now have more time to focus on the strategic

growth plans for Neal & Massy.

While the economies in which the Group operates continue

to mostly struggle, diversity of the Group has helped to secure

growth in difficult times. The Group was ably assisted by growth in

the Automotive & Industrial Equipment and the Integrated Retail

Business Units in Trinidad, the group of companies in Guyana and

by the turnaround of the performance of the Insurance operations.

In Trinidad and Tobago, the economy contracted by 3.6 percent

and the energy sector, the mainstay of the economy, contracted by

7.3 percent. However, bpTT’s announcement in November 2012 of its

gas find in its off-shore Savonette field, provides a source of optimism

for the supply and availability of natural gas and signals anticipated

improvement in the performance of the sector. The petroleum

sector continues to dominate our output, recording a 46.8 percent

contribution to GDP. Non-energy output decreased by 0.7 percent,

with the construction component decreasing by 3.7 percent.

Neal & Massy is seeking to deepen its involvement in the

downstream sector through its participation in the recently

announced multi-national Consortium to engineer, construct and

operate a natural gas-based integrated chemical complex in La Brea.

Gervase Warner in his CEO’s report will further describe this project,

its phases and potential for creating additional growth opportunities

for the Group through the introduction of new manufacturing

sectors to Trinidad and Tobago.

CHairman’s repOrt

CHAIRMAN

ARTHuR LOK JACK

Chairman

9forward focused

Our businesses in Barbados continue to grapple with the effects of

a protracted period of economic stagnation. The Barbados economy

grew by 0.2 percent for the first nine months in 2012. Not since

2007 has the Barbados economy grown by more than 1 percent.

Tourism, the sector on which Barbados is most reliant, experienced

another year of weak performance and tourism value-added for

the first three quarters of 2012 is estimated to have declined by

3.7 percent. The 12-month rate of inflation stood at 7.8 percent

as at the end of July, a decline of 2 percent from the prior period.

The growth rate in food prices stood at 3.1 percent, a decline of

0.6 percent from the prior period. Though a small decline, this is a

hopeful sign for our retail business in Barbados.

In Guyana, real GDP growth of 2.8 percent was reported for the

first half of 2012, and is projected to be 3.8 percent for the full

calendar year. Mining and quarrying, one of the leading growth

sectors in recent years, experienced a 16.4 percent growth rate for

the first six months of 2012. Once again our Guyana results were

correlated to the positive economic growth. Through the strong

management of the Executive Team in Guyana, the organisation has

consistently delivered double digit growth for the Company. Inflation

stood at 1.8 percent for the year ending June 2012, with food prices

registering an increase of 4.5 percent. This is encouraging for our

plans to extend our Retail Lines of Business in Guyana in the short

to medium term.

The Jamaican economy continues to stagnate. GDP growth

for the first two quarters of 2012 was weak, recording -0.1

percent to -0.2 percent respectively. Since January 2011 when the

agreement with the IMF stalled over the payment of back wages to

public sector workers, the IMF has curtailed disbursements to the

Government of Jamaica (GOJ). Other multilateral institutions; i.e.,

World Bank, IADB and the European Union have also followed the

IMF in curtailing disbursements to the GOJ, leaving the GOJ with

little capital to spend on much needed infrastructure, health and

education investments. Without these investments to stimulate

activity, the Jamaica economy has continued to reflect the impact

of weak domestic demand. The unemployment rate is expected

to reach a record high of over 13 percent, with inflation at around

6.9 percent. Our businesses in Jamaica, which operate in the

distribution, industrial gases and information, technology and

communication sectors, continue to remain prudent, committed

to maintaining and improving cost efficiencies to stay competitive

in Jamaica’s tight economy. Despite its discouraging economic

outlook, the tourism sector grew with stop-over visitors growing

by approximately 10 percent in the first nine months of the year.

The hotel and restaurant sector also grew by 0.8 percent in the

first quarter and by 3.8 percent in the second quarter of 2012. The

Group continues to embark on new investments in Jamaica. This

year, through our subsidiary Illuminat (Jamaica) Limited, we finalised

an agreement with CRIF to form a joint-venture credit bureau. The

business will be hinged on a new data centre which will provide

credit reports to at least 60 percent of annual credit applicants. In

2012, Gas Products Limited also made a major capital investment

to expand LPG storage capacity at its import terminal in Montego

Bay.

With the exception of Guyana and Suriname, predictions for

the coming year for the Caricom countries remain cautious and

the performance of these countries over the past year continues

to reinforce our need to seek opportunities outside our traditional

Caribbean home markets. The Group has become quite dominant

in the sectors in which it participates in the major Caricom countries

and to support its growth objectives, the Group will need to expand

its operations beyond its traditional territories. In the last year

the Group’s management dedicated some time to exploring and

examining opportunities in Latin and Central America as well as

West Africa. The Group has now narrowed its focus to a few select

countries for market entry.

In closing, I would like to thank Gervase Warner, President

and Group CEO and his team of Executives for their astute and

practical leadership. They have piloted the Group through a

difficult economic period and through the requisite restructuring

to assure the continued strength of the Group’s core operations.

The Executive Team has created a bold vision that is being fully

embraced throughout the organization; i.e., to be A force for Good

– the Most Responsible and Profitable Investment Holding/

CHAIRMAN

10 2012

Management Company in the Caribbean Basin. The Executive

Team is also well underway towards implementing the strategies

that were created to fulfill on this vision.

I would also like to thank the Board for their partnership over

the past year. I especially wish to thank Sir Allan Fields who retired

from the Company’s Board of Directors on November 6, 2012. Sir

Allan is a highly recognised and accomplished citizen of Barbados

and was first appointed to the Board of Neal & Massy Holdings in

1998. Sir Allan has served the Company for many years and on

behalf of the Board of Directors, I would like to thank him for his

numerous, valuable contributions. I would also like to thank Brian

Young and Geoffrey Cave who are also retiring from the Company’s

Board of Directors effective December 31, 2012 and February 1,

2013 respectively. Mr. Young has served on the Board since 1995

and had been the Board’s longest serving member. Mr. Young was

asked to stay on the Board for an additional four years after reaching

his 70th birthday in recognition of his critical roles as the Chairman

of the Company’s Audit Committee and as the Chairman of the

Company’s joint venture with Cool Corporation Ltd.; Cool Petroleum

Ltd. (CPL) in Jamaica. The Company’s minority stake in CPL was sold

in 2012 and William Lucie-Smith has taken over the chairmanship

of the Audit Committee from Mr. Young. Geoffrey Cave, who is the

Chairman of the Cave Shepherd group of companies, joined the

Neal & Massy Board in February 2009 following the acquisition of

BS&T. Mr. Cave has provided excellent counsel and assistance to the

Company’s Barbados operations and also served as a Director on

United Insurance Company Limited’s Board. On behalf of the entire

Board of Directors, I wish all three gentlemen well in their respective

endeavours ahead.

The Board also, in this past year, welcomed the addition of two

new directors – Gary Voss and Patrick Hylton. Gary Voss, a citizen

of Trinidad and Tobago, is currently the Non-Executive Chairman of

Unilever Caribbean Limited. He joined Lever Brothers West Indies

Limited in 1982 as Technical Director, and was appointed Chairman

and Managing Director in 1987. He retired from Unilever in 2001.

His early career was spent with the (then) Texaco Pointe-a-Pierre

refinery, the Caribbean Industrial Research Institute (CARIRI) and the

Iron and Steel Company of Trinidad and Tobago (ISCOTT). He is also

a director of RBC Finance Holdings and several of its subsidiaries.

Patrick Hylton, a citizen of Jamaica, is the Group Managing Director

of National Commercial Bank Jamaica Limited (NCB), Jamaica’s

largest commercial bank. He first received public recognition when

the Government appointed him to a leading role in the rehabilitation

of the Jamaican financial sector during the late 1990s.

I wish to also announce the appointments of David O’Brien and

Richard P. Young to the Board. Mr. O’Brien’s appointment will be

effective from January 1, 2013 and Mr. Young’s appointment was

made effective on December 20, 2012. Mr. O’Brien is currently a

Senior Vice President of the Neal & Massy Group and the Executive

Chairman of the Group’s Automotive & Industrial Equipment

Business Unit. In this capacity, he is the Chairman of a number of

companies in this Business Unit, including Neal & Massy Automotive

Limited, Tracmac Engineering Limited and Automotive Components

Limited. He held a number of senior positions at Sagicor Life

Incorporated, before joining Neal & Massy in 2005. Richard P. Young

is a Chartered Accountant and a well-respected member of Trinidad

and Tobago’s business and banking communities. In 2012, he retired

as the Managing Director of Scotiabank Trinidad and Tobago Limited

and its wholly owned subsidiaries, after serving in that post for 15

years. Prior to joining Scotiabank, he was a Chartered Accountant at

Price Waterhouse for 18 years and a Managing Director at the then

NEM (West Indies) Insurance Limited. It is my pleasure to welcome

Mr. O’Brien and Mr. Young to the Board.

My gratitude, as always, goes out to our customers for their

continued trust and loyalty and all the employees of Neal & Massy

who dedicate themselves everyday to delivering value and supporting

the growth and longevity of the Group.

CHairman’s repOrt

11forward focused

neW appOintments tO tHe BOard Of direCtOrs OVer tHe past Year

PATRICK HylTon Jamaican Citizen

PATRICK P. HyLToN is the Group Managing Director of National Commercial Bank

Jamaica Limited (NCB), Jamaica’s largest commercial bank. He first received public

recognition when the Government appointed him to a leading role in the rehabilitation

of the Jamaican financial sector during the late 1990s.

GARy Voss Trinidad & Tobago Citizen

GARy voSS is currently the Non-Executive Chairman of Unilever Caribbean Limited.

He joined Lever Brothers West Indies Limited in 1982 as Technical Director, and was

appointed Chairman and Managing Director in 1987. He retired from Unilever in

2001. His early career was spent with the (then) Texaco Pointe-a-Pierre refinery, the

Caribbean Industrial Research Institute (CARIRI) and the Iron and Steel Company of

Trinidad and Tobago (ISCOTT). He is also a director of RBC Finance Holdings and

several of its subsidiaries.

DAVID o’BRIEn Trinidad & Tobago Citizen

DAvID o’BRIEN is currently a Senior Vice President of the Neal & Massy Group and

the Executive Chairman of the Group’s Automotive & Industrial Equipment Business

Unit. In this capacity, he is the Chairman of a number of companies in this Business

Unit, including Neal & Massy Automotive Limited, Tracmac Engineering Limited and

Automotive Components Limited. He held a number of senior positions at Sagicor

Life Incorporated, before joining Neal & Massy in 2005. Mr. O’Brien’s appointment

will be effective from January 1, 2013.

RICHARD P. yoUnG Trinidad & Tobago Citizen

RICHARD P. yoUNG is a Chartered Accountant and a well-respected member of

Trinidad and Tobago’s business and banking communities. In 2012, he retired as the

Managing Director of Scotiabank Trinidad and Tobago Limited and its wholly owned

subsidiaries, after serving in that post for 15 years. Prior to joining Scotiabank, he was

a chartered accountant at Price Waterhouse for 18 years and a Managing Director at

the then NEM (West Indies) Insurance Limited. Mr. Young’s appointment was made

effective on December 20, 2012.

12 2012

CHIEF EXECUTIVE OFFICERCHief eXeCutiVe OffiCer’s repOrt

RECAP of 2012

The Neal & Massy Group of Companies continued to perform

strongly throughout 2012. The Group’s Profit Before Tax (PBT) from

Continuing Operations grew by 25.4 percent from $640 million

to $802 million, a record high for the Group. The improvement

was primarily driven by the growth in the Automotive & Industrial

Equipment Business Unit and the Guyana Group and by the non-

recurrence of one-off expenses and charges, which were incurred

in 2011. The Group also demonstrated healthy Third Party Revenue

growth of 7.6 percent in 2012, growing from $8.5 billion in 2011 to

exceed $9.1 billion in 2012. Earnings Per Share (EPS) from Continuing

Operations of $5.13 was also 23 percent above EPS from Continuing

Operations in 2011. Substantially reduced losses from Discontinued

Operations resulted in an overall EPS of $4.87, almost five times the

Overall EPS of $1.02 reported in 2011.

The Group is approaching the end of its restructuring arising from

the BS&T acquisition and the fallout of the 2009 global economic

recession. While the sale of the remaining Almond hotels has not

happened as quickly as we would have hoped, we are happy to

report that Almond Beach Club was sold to Elite Island Resorts in

July 2012 and meaningful progress is being made on the sale of

the remaining Casuarina and Beach Village properties. In 2012, the

decision was taken to close the Almond Beach Village hotel and all

costs associated with the closure were booked. The operating losses

going forward until the eventual sale of the remaining properties,

have therefore been minimized.

In 2011, the Group incurred a number of one-off charges against

property revaluations in Barbados, for provisions within the insurance

business related to exiting the international inward reinsurance

business, consulting services for the strategy engagement with

McKinsey & Company and for pension and other head office

adjustments. None of these charges or expenses were repeated

in 2012 and assisted in the overall profitability improvement from

Continuing Operations.

e. GeRvASe WARNeR

Pesident and Group

Chief Executive

officer

13forward focused

CHIEF EXECUTIVE OFFICER The Group has emerged from the economic and financial crises

of 2009 with a strategy for future growth and with a strong balance

sheet and a resilient group of core companies to fuel that growth.

Cash Flow from operating activities increased from $522 million to

$698 million and the Group’s Cash position increased from $1.1

billion to $1.3 billion.

STRATEGIC oUTLooK

Strategic Initiatives

All Business Units in the Group are forward focused on the growth

objectives and force for Good vision of the Group. Significant

progress was made against the Group’s strategic plan in 2012:

• TheintroductionoftheGroupCustomerServiceManagement

System has worked very well for Hi-Lo and Neal & Massy

Automotive Ltd. Both companies have improved their customer

service measures significantly, resulting in increased supermarket

transactions and new vehicle sales.

• ThestrengthoftheGroup’span-Caribbeandistributionnetwork

was reflected in new lines from principals coming over to Neal

& Massy. In addition, the Group acquired the Valrico brand

of contract manufactured, high quality food products for

distribution throughout the region.

• Plansfornewretailformatscontinuedandtheopeningofthe

expanded Hi-Lo supermarket in north-west Trinidad provided an

indication of the new look for new store locations coming in

South and Central Trinidad, Guyana and in south-east, Barbados.

• We also increased our shareholding in the St. Lucia-based

supermarket chain, Gablewoods Supermart Limited to expand

our retail operations in the region.

• TheAutomotive&IndustrialEquipmentBusinessUnitlaunched

the National and Alamo car rental business with locations in

Trinidad and Tobago. Rollout to other Caribbean islands is

underway.

• UnitedInsurancehasexitedtheunprofitableinwardre-insurance

business and has renewed its focus on its core Caribbean

markets.

• ThePrimeMinisteroftheRepublicofTrinidadandTobagorecently

announced the Government’s approval of a Methanol to Di-

Methyl Ether (DME) project for the energy sector in Trinidad and

Tobago, which is a joint venture between Mitsubishi Corporation,

Mitsubishi Gas Chemical Company Inc. of Japan, Neal & Massy

and Texas-based Integrated Chemicals Company Limited. The

first stage of the project is projected to produce 750,000 MT

per year of Methanol and 100,000 MT per year of DME. It is

estimated that for the first stage, 100MMSCFD of natural gas

will be consumed in the production of the Methanol and DME.

The production of DME could be used as a blending stock for

LPG and as a replacement for diesel, and can therefore help to

ease the Government’s subsidy removal on these products. Phase

two of the project will produce Mono Ethylene Glycol (MEG)

from Syngas and/or Ethane extraction. MEG could be used to

develop additional downstream manufacturing operations, such

as Automotive coolants, Polyester fibre and PET resin. Initial

investments are projected to be approximately USD$850 million

and will generate approximately 180 permanent jobs but peak

employment during construction could be as high as 3,000.

Additional phases of the project also include the production

of Acetic Acid and Acrylonitrile, which could lead to further

downstream industries in plastics manufacturing.

• TheInformationTechnologyandCommunications(ITC)Group

made further strides in the managed services area with a major

contract being negotiated, which will be the largest ATM

managed services contract ever awarded in Jamaica. The Business

Unit also launched the leading credit bureau service in Jamaica

in conjunction with its joint venture partner, CRIF.

• The growth of theGuyana group continues to outpace the

growth in the economy. Improvements in efficiency and

investments in expanding and modernizing the plant for all

Guyana companies is allowing the Group to add new products

and services to its portfolio and fuelling growth.

14 2012

Leadership Strengthening

After the Group’s Corporate and Business Unit strategy development

exercise was completed, we recognized that the key constraint

to implementation success was having sufficient and appropriate

leadership within the Group. A number of gaps were identified and

we have made excellent progress in recruiting and reorganizing our

leadership team to successfully execute the growth strategy. Some

of the important developments for the year were:

• NishaDass,theAssociatePrincipalfromMcKinsey&Company

who led the McKinsey strategy engagement with Neal & Massy,

was recruited to the position of Group Chief Strategy Officer

to lead and support the continuous review of our strategic

plans and support major business development projects and

acquisitions.

• CurtisTobalhasagreedtojointheGroupinJanuary2013to

take over the role of the CEO of General Finance Corporation

Limited and will also hold the title of Chairman Designate for

the Consumer Finance Business Unit. Curtis has significant

experience in Consumer Finance and will play an important role

in the evolution of the Integrated Retail business model.

• Jorrell Best also joined theGroup in 2012 as the Business

Development Manager for the Consumer Finance Line of

Business. Jorrell is a returning resident whose last position before

joining the Group was Associate Director at UBS Investment Bank

in New York.

• AaronSuitealso joinedthe IntegratedRetailBusinessUnit in

the 2012 financial year as the Business Excellence Manager.

Aaron spent 18 years with Nestle in various positions in Finance,

Business Excellence, Project Management and Logistics. He is

also another returning resident, last stationed in Nestle’s Canada

operations.

• Richard Barrowwas recruited as CEO of HDHopwood in

Jamaica. Richard is an experienced executive with an extensive

career in distribution that spans over 30 years. Prior to joining

the company, he held the position of CEO (Consumer Division)

at Facey Commodity Company Limited, a conglomerate with a

presence in 30 countries.

• FrereDelmaswhohasservedastheExecutiveChairmanofNeal

& Massy’s Retail Line of Business for the last four years has been

appointed as Neal & Massy Barbados Country Manager, effective

from January 2013. He replaces Anthony King as the most Senior

Executive in the Group in Barbados. In addition to the boards

he currently chairs, he will also assume the chairmanship for a

number of other Barbados-based companies, namely Roberts

Manufacturing Co. Ltd, Seawell Air Services and Booth Steamship

Co. (Barbados) Ltd. and will serve as a director on the boards of

key subsidiaries in Barbados. Frere will continue to serve as the

Integrated Retail Country Manager in Barbados, which includes

oversight for the Group’s retail interests in St. Lucia.

• EvertonBrowne,whoservedastheHumanResourceManager

for Barbados will expand his role to provide more executive

support to the Country Manager, providing oversight for public

relations and communications activities. In his new role as Chief

Administrative Officer (CAO), effective from January 2013, he

will be responsible for corporate governance and ethics policies

administration and will continue to have direct responsibility for

human resources and all its related areas.

•ThomasPantin,whohasservedastheExecutiveChairmanof

the Consumer Finance Line of Business, has been appointed as

the Executive Chairman of the Retail Line of Business – taking

over from Frere Delmas. Thomas worked closely with Frere over

the last year in the Integrated Retail Business Unit and a smooth

transition between the two is already underway.

vISIoN AND vALUES

The Neal & Massy Vision underpins all our forward focused thinking

and behaviours:

A force for Good: The Most Responsible and Profitable

Investment Holding/Management Company in the Caribbean

Basin.

Our growth initiatives are grounded in our values, which help us

demonstrate the behaviours necessary to accomplish our objectives.

Our values are embodied in our guiding principles: Integrity, Care,

Confidence and Growth:

CHief eXeCutiVe OffiCer’s repOrt

15forward focused

integrity

care

confidence

growth

INTEGRITy is the cornerstone of the foundation on which our values are built. It is

the reason that Neal & Massy continues to be the partner of choice, dependable and

protective of the interests of all of our stakeholders. All our employees are encouraged

and expected to act with the highest ethical standards that will merit the continued trust

and confidence of our customers, business partners, suppliers, colleagues, shareholders

and our communities.

We CARE. We believe in building long term relationships with our employees and

customers. We believe we have a duty to have our employees return to their homes safely

after work. We are committed to building future generations of professionals and leaders

and invest heavily in the training and development of our executives and staff. Through

the work of The Neal & Massy Foundation and our individual subsidiary companies in all

territories in which we operate, we continue to provide financial and other support to

worthy causes to assist the less fortunate through education, development programs,

arts and culture, sport and religion.

With almost 90 years of committed presence and experience through different peaks

and troughs, our Group has become a well-respected conglomerate wherever we do

business. Our diversity gives us the resilience to rebound after difficult times and our sound

investment and good operational management has helped us to demonstrate consistent

growth in shareholder returns over time. Our financial strength and experience gives us

the CoNfIDENCE to pursue new ventures and strategies to keep reinventing the Group

to stay abreast of changing times.

GRoWTH is a mandate from our Shareholders, to which this Group is committed. Our

financial position provides a solid base for growth as we expand beyond our traditional

geographies and within our existing industries. We have invested in a strategic plan, which

charts the course for growth over the next four years. We are investing in the recruitment

and development of executives and talented individuals to provide the organizational

capacity to achieve our growth objectives. The introduction of Shareholder Value Added

(SVA) as the key financial performance metric for executives has sharpened the focus on both

income statement and balance sheet management for growth. SVA is a measure of value

creation that subtracts the Cost of Capital tied up in the Assets of a business from the Net

Operating Profit After Tax. The Group’s Executive Performance Incentive Program requires

a minimum growth in SVA which aligns Executives’ interests with those of Shareholders.

16 2012

CHief eXeCutiVe OffiCer’s repOrt

HEALTH, SAfETy, SECURITy AND THE ENvIRoNMENT (HSSE)

PERfoRMANCE

Our journey to overall HSSE performance improvement continued

throughout the year. Once again we recorded year on year

improvement in our Key Performance Indicators, particularly in the

areas of internal audits and workplace inspections, where there has

been an approximate 20 percent increase. Of note is the increased

level of participation from Chairmen and CEOs in these exercises. The

Energy & Industrial Gases Business Unit continues to lead the way on

this journey, having not recorded a Lost Time Incident (LTI) for the

year with Neal & Massy Wood Group (10 million man hours since

its last LTI), Neal & Massy Energy Resources Limited (1 million man

hours since its last LTI) and Industrial Gases Limited (500,000 man

hours since its last LTI) having achieved significant milestones along

the way. Additionally a number of non-energy companies achieved

Safe to Work (STOW) certification, an advanced safety management

system, initiated and administered by the Energy Chamber.

On November 27, 2012 a Gas Pro tanker wagon, contracted

to an external party to transport Liquefied Petroleum Gas (LPG),

was involved in a tragic accident, in which a female pedestrian

was fatally injured. The incident occurred on the Chalky Hill Main

Road, en route to Kingston from Port Maria Jamaica. I wish to add

my deepest sympathies to the family and friends of the deceased

to those already expressed by the entire Gas Pro organisation.

The circumstances surrounding the incident are being thoroughly

investigated by an independent investigation team and local police,

with full cooperation from Gas Pro. Based on findings from the

investigations, Gas Pro will make any necessary changes to ensure

that this calamity is not repeated. Prior to this incident, Gas Pro

maintained an incident-free safety record for the past six years.

The company has been recognized as a leader in safety in the LPG

industry for three consecutive years. Gas Pro has already initiated

enhancements to its contractor management processes to gain

clearer insights into maintenance and training of its contractors’

equipment and staff.

General HSSE training and the conducting of internal audits were

intensified in Guyana, Barbados and Jamaica with the expectation

that these territories will become fully compliant with the Group’s

HSSE Management System during 2013.

CoRPoRATE SoCIAL RESPoNSIBILITy PERfoRMANCE

2012 was a meaningful year for the Neal & Massy Group, in terms of

making a positive difference in the communities in which we operate.

We continued our flagship programmes, such as the Boys To Men

programme, which has been focused on developing leadership skills

in young men. We also sponsored key projects including the Arrive

Alive Safety Programme, to increase road safety awareness, and

the Rainbow Cup Triathlon, to promote health and wellness. Our

companies in Barbados, Guyana and Jamaica also maintained their

sustainable, community development contributions in a number of

social spheres including sport, education and culture.

A full report on Neal & Massy’s Corporate Social Responsibility

activities is included in the Annual Report package.

CLoSING REMARKS

2012 was an excellent year for the Group. A new record was set for

the Group’s PBT from its Continuing Operations, as all Business Units

are well on their way towards implementing the Strategic Plan that

was created in 2011. The Group has become increasingly focused

on people, as it appreciates that our employees, managers and

executives are the key competitive advantage we enjoy that allows us

to be innovative and to deliver excellent customer service. To this end,

the Group continues to invest in executive development and training

for Graduates and Middle Management. We continue to improve

our Middle Management and Graduate Trainee programmes and will

introduce a MBA in Retail and Distribution in conjunction with the

Arthur Lok Jack Graduate School of Business in 2013. Furthermore,

a 360 Feedback process has been rolled out to all Senior Executives

and CEOs of our major subsidiaries to complement our Group-wide

performance appraisal and development planning process.

I wish to thank and acknowledge our over 9,000 employees

across the region. You are the key to the success of our companies.

Without your initiative, passion and dedication to serving customers

and clients, we could not be as successful as we are. We will continue

to strive to create a working environment that motivates and inspires

you to be the best “you”. We value your ideas and input and want

to make sure you are given opportunities to develop as a person

and as a professional while working with the Neal & Massy Group

of Companies.

17forward focused

I also wish to thank all our customers and clients for your continued

business with the Group. Our Customer Service Improvement efforts

should be reaching you. We are investing in processes, people and

plant to continuously improve our service to you and we value

your consistent feedback. You have our commitment to continue

to strive to meet and surpass your expectations. Customer Service

transformation is a difficult undertaking but we are putting in a

systematic process to achieve our objective. Please give us feedback

on our web site at www.neal-and-massy.com.

I also wish to thank and acknowledge the best group of executives

anyone could have the privilege of serving. The Neal & Massy Group

has an excellent cadre of leaders across our functions, Business

Units and territories. I wish to acknowledge their commitment and

leadership, which produce the success that the Group enjoys. I

welcome Nisha Dass and Curtis Tobal to our Executive Committee

and congratulate Frere Delmas and Everton Browne on their new

leadership roles in Barbados.

I am grateful to our Board of Directors, led by our Chairman,

Arthur Lok Jack, for their guidance and support. I especially thank

our three departing Directors: Brian Young, Geoffrey Cave and Sir

Allan Fields for support and partnership throughout their tenures

on the Neal & Massy Board. I welcome our new members to the

Board: Gary Voss, Patrick Hylton, Richard Young and David O’Brien,

our most recent Executive Director, replacing G. Anthony King who

has retired.

I must thank Anthony (Tony) King for his career and service to

the Neal & Massy Group of Companies. Tony spent 28 years of his

career with the Neal & Massy Group. Prior to his departure from

Neal & Massy in October 2004 to take up the appointment of Chief

Executive Officer of the Barbados Shipping & Trading Company

Limited (BS&T), he chaired Neal & Massy’s Eastern Caribbean Group

of Companies. After the take-over of BS&T in 2008 by Neal &

Massy, Tony became a Group Executive Vice President at the Neal

& Massy Group but also remained as BS&T’s CEO, co-ordinating the

integration of BS&T’s operations into the Group. With that process

substantially complete, he retired as an Executive of the Group during

2012. Tony continues to serve on the Neal & Massy Holdings Board,

now as a Non-Executive Director. I thank him for his partnership in

the integration process and his contributions to the leadership team

over the last four years.

I wish to especially thank our Shareholders for the faith and

confidence that you continue to demonstrate. We appreciate the

need to generate growth and a superior return on your capital. Rest

assured we continue to operate with your interest at the forefront

of our concerns, as we remain forward focused on the new vision

and strategy for the Group.

18 2012

CHIEF FINANCIAL OFFICERCHief finanCiaL OffiCer’s repOrt

PAuLA RAJKuMARSINGH

Executive vice President &

Chief financial officer

Financial Highlights

• GroupThirdPartyRevenueincreased7.6%from$8.5billionto

$9.1 billion

• ProfitBeforeTax(PBT)increasedby25.4%,from$640million

in 2011 to $802 million in 2012

• The losses fromDiscontinuedOperationswere $50million,

compared to $474 million in 2011

• EarningsPerShare(EPS)fromContinuingOperationswas$5.13,

compared to $4.17 in 2011.

• TotalEPSincreasedfrom$1.02to$4.87

• GroupDebtremainedat$1.4billion

• GroupCashincreasedby16%to$1.3billion

• Debt toShareholders’EquityRatio improved, from47.1% in

2011to43%in2012

• CurrentRatiocontinuedtoimproved,from1.49in2011to1.50

in 2012

Results overview

We continue to face a challenging economic environment in the

Caribbean. In Trinidad & Tobago the falling energy sector revenues

and the stagnant construction sector have negatively impacted our

business environment. The economies of Barbados and Jamaica also

continue to grapple with the effects of recession and stagnation in

the US and UK economies on which both islands are dependant

for tourism and remittance inflows. Consumers remained cautious

and discretionary spending declined in most territories in which we

operate. Despite this, Neal & Massy’s diversity has allowed us to

balance difficult years in one geography or industry, with successful

growth in others. In 2012 the PBT from Continuing Operations

crossed the $800 million mark, increasing to $802 million, 25.4

percent ahead of last year. Revenue from Continuing Operations

increased by 7.6 percent from $8.5 billion to $9.1 billion, and the

EPS from Continuing Operations increased by 23 percent from

$4.17 to $5.13.

This achievement resulted from an improvement in Business

Unit performance and non-recurrence of some of the previous

year’s expenses. In 2011, the Group incurred a number of one-off

19forward focused

CHIEF FINANCIAL OFFICERcharges including investment property write downs in Barbados,

and consulting costs for the strategy engagement exercise. None

of these expenses were repeated in 2012 and this assisted in the

overall profitability improvement from Continuing Operations.

Particluarly pleasing was the continuing excellent performance

in our operating companies in Guyana and in the Automotive &

Industrial Equipment Business Unit in Trinidad. The turnaround

of United Insurance has also contributed to the significant

growth. The Insurance operations struggled with soft market

conditions, changing regulations and closure of its International

business. However, there was an improvement in the underwriting

performance for the Caribbean operations, while the closure of

the international business impacted the results with losses of $61.2

million in 2012 versus $25 million in losses in 2011.

The Integrated Retail Business Unit closed the year with solid

trading results throughout the region, recording operating profits

of $271 million (exclusive of Guyana companies), compared to

$266 million in the previous year. The Information Technology and

Communications Business Unit also performed commendably, with

a 4 percent growth (excluding Guyana companies), in Operating

Profits in 2012.

The Other Investments Portfolio, with Operating Assets of

$1.5 billion, includes our investment properties in Trinidad and

Barbados and the Robert’s Manufacturing plant. The improvement

in the results in this portfolio, was mainly attributable to a good

performance by Roberts Manufacturing, as well as the non-

recurrence of one-off investment properties write-offs made in 2011.

Head office and other expenses decreased by $17 million, from

$165 million to $148 million in 2012.

The Chart below shows a comparison of the 2011 versus 2012

results and the Business Units’ impact on those results.

271

176

103 802

145

95054

26

102

73

(148)

(165)in 2011

Integrated Automotive Insurance Energy & ITC Guyana other Associates Sub-total Head office 2012 Retail & Industrial Industrial Group Investments Costs & PBT Equipment Gases Adjustments

Integrated Consumer Portfolio

Strategic InvestmentPortfolio

Guyana Group,Non-Strategic

Investments & Associates

2%

18%

0.2%4%

12%

52%34% 18% 10%

25%

212%

INCReASe 2011-2012 By %Expressed in Millions of Trinidad and Tobago dollars

20 2012

CHief finanCiaL OffiCer’s repOrt

Interest costs have fallen by 4 percent to $46 million. The interest

rate environment remained low throughout the year.

The taxation charge for the Group increased to $258 million,

compared to $195 million in 2011, and the effective tax rate

increased from 31 percent to 32 percent. The Tax charge from our

Associate Companies increased from $14 million to $43 million. In

addition, increased profits generated in the higher tax jurisdictions

of Guyana and Jamaica accounted for part of the increase in the

taxation charge.

The business environment remains challenging, but the Group

has a conservative business model which prudently manages risk

and we expect our performance to continue to improve in 2013.

STATEMENT of fINANCIAL PoSITIoN

The strength of the Statement of Financial Position was maintained

during the year, as evidenced by improvements in all key liquidity

ratios. Total Assets closed at $8.5 billion, an increase from $8.2

billion. Assets in our Continuing Operations are valued at $7.9 billion

and the assets of the disposal group classified as ‘Held for Sale’ are

valued at $591 million. The classification of the Hotel assets as ‘Held

for Sale’ remained, as two out of the four hotel properties remained

unsold at the year end. The Cash held in the Group increased 16

percent to $1.3 billion while our debt was $1.5 billion, 73 percent

of which is medium to long term debt.

Our Net Assets after non-controlling interest per Share was $35.01

as at end of financial year, compared to $31.20 in 2011 and our

leverage improved from 47.1 percent to 43 percent.

7,47

1*

731*

8,04

5*

730*

8,49

7

640

7,96

9

715

9,14

6

802

2008 20082009 20092011 20112010 20102012 2012

10000

8000

6000

4000

2000

0

900

800

700

600

500

400

300

200

100

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

Increase 2011-2012

8%Increase 2011-2012

25%

FIVE YEAR REVIEW

* Restated for Continuing Operations * Restated for Continuing Operations

21forward focused

Our investing activities utilized $302 million in cash during 2012,

compared to $279 million in 2011. There were no new acquisitions

for the last two years and the major capital expenditure was

concentrated in the Integrated Retail Business Unit. The Integrated

Retail Business Unit invested in the purchase of its own regional

brand, Valrico, expanded its warehousing capacity in Trinidad and

Tobago and started the refurbishment of several of its supermarkets

in Trinidad and Tobago.

Our financial activities utilised $213 million in cash in 2012

compared to $182 million in 2011. There was an increase in

dividends paid to non-controlling interest.

The Group has adequate financial resources to support its

anticipated short and long-term capital obligations.

INTERNAL CoNTRoL AND ASSURANCE

The Group maintains an independent Internal Audit function with

a Group-wide mandate to monitor and provide assurance to the

Board’s Audit Committee and ultimately to the Board of Directors as

to the effectiveness of the internal controls systems. The department

is also mandated to regularly report its findings to the Board, via

the Audit Committee. The annual Internal Audit Plan, which is also

approved by the Board, applies a risk -based methodology to ensure

that the Group’s key risks are appropriately and regularly reviewed. In

addition, as part of the annual operating cycle, each business is also

required to review and report on legal liabilities, financial controls,

HSSE issues, business risks and post-implementation reviews are

done on all major capital investment expenditure.

1.40

27.6

4

1.40

28.6

4

1.29

31.2

0

1.26

31.0

9

1.50

35.0

1

2008 20082009 20092011 20112010 20102012 2012

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0

40

35

30

25

20

15

10

5

0DIv

IDEN

DS

PER

SH

AR

E TT

$.¢.

NET

ASS

ETS

PER

SH

AR

E TT

$.¢.

Increase 2011-2012

16%Increase 2011-2012

12%

FIVE YEAR REVIEW

22 2012

EXECUTIVE MANAGEMENT

eXeCutiVe COmmittee

Left to right: David Affonso, Group Senior Vice President & Executive Chairman, Distribution Line of Business; Earl

Boodasingh, Group Executive Vice President & Executive Chairman, Integrated Retail Business Unit; frere Delmas,

Group Senior Vice President & Executive Chairman, Retail Line of Business; Thomas Pantin, Group Senior Vice President

& Executive Chairman, Consumer Finance Line of Business; Angela Hamel-Smith, Group Human Resources Manager;

Gervase Warner, President & Group Chief Executive Officer; fenwick Reid, Group Senior Vice President & Executive

Chairman, ITC Business Unit; Linford Carrabon, Group Senior Vice President & Executive Chairman, Energy & Industrial

Gases Business Unit; Deo Persaud, Chief Executive Officer, Neal & Massy Guyana Group; Judith Bowen, Group Senior

Vice President & Senior Legal Counsel; Paula Rajkumarsingh, Group Executive Vice President & Chief Financial Officer;

David o’Brien, Group Senior Vice President & Executive Chairman, Automotive & Industrial Equipment Business Unit;

Wendy Kerry, Corporate Secretary & Legal Advisor

23forward focused

EXECUTIVE MANAGEMENT

24 2012

autOmOtiVe & industriaL equipment Business unit

Neal & Massy Automotive Ltd.

Tracmac engineering Limited

Pres-T-Con Group

Automotive Components Limited

Best Auto Limited

Tobago Services Limited

Master Serv Limited

City Motors (1986) Limited

DAvID O’BRIeN Group Senior vice President & Executive Chairman

1,53

9 164

24

1,91

3

195

25

2011 2011 20112012 2012 2012

2000

1500

1000

500

0

200

150

100

50

0

30

20

10

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

24%inCrease 2011-2012

19%* rOna (return On net assets)

25forward focused

NEAL & MASSy AUToMoTIvE LTD. (NMAL) continued to pursue

further improvements in Customer Service at our three branches in

Trinidad, and Tobago Services Limited in the sister isle. “first on

CUstomer Service” (foCUS), our customer service philosophy was

developed and implemented with participation from every employee.

We introduced this year our new Customer Service vision statement,

“Driving you to love life”, as well as the “Men in White” - a team

of highly trained technicians who greet and analyse problems which

customers bring to our Morvant location. These new initiatives are

already positively impacting the overall customer experience and

the quality of the outcome.

Our National Car Rental and Alamo Rent-A-Car franchise was

successfully launched in April. Within the six months of opening

we have received hundreds of reservations. We are also pursuing

expansion of these brands in several other countries and will be

opening five additional locations in 2013.

Tracmac is proud to have hosted PACDA 2012, the annual

conference of the Pan American Caterpillar Dealers Association

in Trinidad. This conference brought together senior Caterpillar

executives and dealer principals of all the Caterpillar dealerships in

South and Central America as well as the Caribbean. The conference

blended strategic business sessions with a social aspect, where

Trinidad & Tobago was showcased in all its glory. In all aspects, it

was a great success for our Group and our country.

The Automotive & Industrial Equipment Business Unit continues

to support the communities in which we operate. Neal & Massy

Calendonia AIA Pro League Football Club had a highly successful

year; Tracmac’s CSR Team continues to give time and funding to

the children of the Jaya Lakshmi Home; and NMAL is helping to

renovate the basketball/small goal court in Mon Repos, Morvant.

In 2012 the Business Unit achieved growth in revenue and

profitability, 24 percent and 19 percent respectively. The Business

Unit also managed to reduce debt and interest costs. Working capital

has improved and our balance sheet is strong.

At Neal & Massy Automotive Ltd. (NMAL), the Hyundai Elantra,

Hyundai Tucson and Nissan Navara models played an important

role in our sales success. Awards were received from Hyundai for

Most Improved Market Share Growth in the Latin American region.

Nissan also grew its market share despite being the leader. Improving

customer service continues to be our major priority. Further

showroom and customer service facility improvements are planned

for 2013. The parts department exhibited record revenue levels

in 2012, as our customer service initiatives have led to increased

throughput in our service department and a greater propensity for

purchasing genuine parts from NMAL. Recently a new feature of

our phone system, called Customer Touch was activated. This will

allow automated text, email and voice messages to be sent updating

customers about their vehicle that is being serviced. The long-term

lease rental fleet also grew by approximately 10 percent.

Tracmac Engineering Limited’s (Tracmac) revenue increased

by 43 percent due to infrastructure projects in construction which

started in 2012. The margins on these sales are lower than usual in

the current competitive market. Tracmac also improved its working

capital margins significantly in 2012. In 2012, Tracmac also initiated

the implementation of the Group’s Customer Service Management

System. We have formed a strategic alliance with Louisiana

Machinery and we seconded from them a Senior Executive in After

Sales to lend support to our local operations for at least one year.

The Pres-T-Con Group (Pres-T-Con, Rabco and Pres-T-

Con Equipment) managed to marginally improve its financial

performance in 2012. Many construction projects, which were

scheduled to be on-stream this year, have been deferred. At this

time however, Pres-T-Con has several contracts in hand as many

projects have resumed. We are expecting that 2013 will show

greater improvement.

Automotive Components Limited (ACL) suffered some

reductions in profitability for 2012. ACL achieved marginal sales

growth in the local market due to competition from imported

batteries, however declining sales in the export markets negatively

impacted our expected results. Our plans for 2013 are to recover our

market share in both the local and export markets with an increase

in our sales force and additional retail presence.

Best Auto Limited has been focused on making Customer

Service improvement a top priority. The consistent supply of its most

popular models continues to be an area of concern but the Jetta

has grown in popularity in the market, with a moderate increase in

sales and positive customer reviews. The profitability of Best Auto

has improved as expected.

DAvID O’BRIeN Group Senior vice President & Executive Chairman

26 2012

Tobago Services Limited (TSL) continues to improve in financial

performance and remains the market leader in Tobago. We have

completed renovations of our facilities which will be opened during

December 2012. Sale of Caterpillar parts and Castrol lubricants

continue to contribute to the overall success of TSL.

Master Serv Limited (Master Serv) has improved overall sales

and profitability. Our aftermarket parts offering continues to be a

success. Marketing strategies developed by ACL are expected to

contribute to the battery and tyre sales in 2013.

City Motors (1986) Limited (City Motors) is now fully focused

on maintenance and repairs and we have been able to do so

profitably. Pricing of Peugeot cars remains an area of concern for

our local market.

A review on the performance of Associated Industries Limited

(AINLIM) discussed on page 47 of this report, together with the

other companies in the Guyana group.

autOmOtiVe & industriaL equipment Business unit

In october 2012, Tracmac Engineering hosted the annual conference

of the Pan American Caterpillar Dealers Association (PACDA). Through

the PACDA Conference, Tracmac positioned itself as an established,

solid partner of Caterpillar, created business opportunities, locally and

abroad, through networking with other dealers and major players in

their respective construction sectors and showcased Trinidad and Tobago

as a vibrant and diverse place to do business. from left to right in photo:

Ed Goodrich - vice President of Cat financial; William J. Rohner - vice

President with responsibility for the Electric Power Division; Stuart L.

Levenick – Group President Customer & Dealer Support; Mary Bell - vice

President for the Building Construction Products Division

27forward focused

energY & industriaL gases Business unit

Industrial Gases Limited

Trintogas Carbonics Limited

NM Petrochemicals Services Limited

Gas Products Limited

Caribbean Industrial Gases unlimited

Neal & Massy energy Limited

Neal & Massy Wood Group

Neal & Massy energy Services Limited

NM Insertech (Caribbean) Limited

NM Supply Chain Integrators Limited

Neal & Massy energy Resources Limited

LINFORD CARRABON Group Senior vice President & Executive Chairman

758

202 34

790

211

27

2011 2011 20112012 2012 2012

800

600

400

200

0

250

200

150

100

50

0

40

30

20

10

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

4%inCrease 2011-2012

5%* rOna (return On net assets)

28 2012

THE ENERGy AND INDUSTRIAL GASES BUSINESS UNIT performed

reasonably well, particularly when, taking into account the relatively

low level of new activity in the oil, gas and petrochemical sectors.

The Business Unit continues to be a leader in HSSE performance

with a number of significant milestones once again being achieved

in member companies. Business Development activities continued

to be given priority, and investment decisions with respect to two

major projects are expected to be taken in the 2013 financial year.

Industrial Gases Limited (IGL) had another successful year,

despite the continued general slowdown in the economy, which

negatively impacted the demand for some of its products. A long-

term contract for the supply of nitrogen was signed with Petrotrin.

During this year, the drive intensified to become customer-focused,

to increase export business, and to pursue new business applications.

Trintogas Carbonics Limited (TGCL) also had a successful year

as a result of increased product demand.

NM Petrochemicals Services Limited (NMPSL) had an excellent

year, exceeding budgeted expectations as a result of planned and

unplanned catalyst change-outs at several methanol and ammonia

plants in Point Lisas.

Gas Products Limited (GPL) produced favourable operating

and financial results despite the prevailing weak macro-economic

conditions. During the year, significant progress was made in

The top 10 subcontractor companies, who contributed to the achievement

of Neal & Massy Wood Group’s 10 million man hours milestone were

officially recognized at the company’s end of year celebration on December

1, 2012, in a formal safety award ceremony.

implementing the Customer Service Management System, and key

talent-development programmes were executed. In an effort to extract

greater value from the procurement chain, a major capital investment

was made to expand storage capacity. Further growth was realized in

the volume shipped to the Non-Cooking Applications (NCA) segment.

The company had another excellent safety performance within its

operations in the 2012 financial year. However, in November 2012 a

Gas Pro tanker wagon, contracted to an external party to transport

Liquefied Petroleum Gas (LPG), was involved in a tragic accident, in

which a female pedestrian was fatally injured. The incident is being

thoroughly investigated and based on findings from the investigations,

Gas Pro will make any necessary changes to ensure that this does not

happen again.

Caribbean Industrial Gases (CIG) successfully completed a

major plant overhaul during the second quarter. The plant, however,

operated below capacity for the rest of the financial year as the

client’s plant experienced technical problems. The plant is expected

to return to full production early in the 2013 financial year.

Neal & Massy Wood Group Limited (NMWG) continued to be

recognised by its clients for excellent safety performance. This year,

the company achieved over 10 million man-hours without a Lost-

Time Incident, and obtained Safe To Work (STOW) re-certification,

after having been the first company to achieve such certification

energY & industriaL gases Business unit

29forward focused

two years ago. Financial performance was above expectations. The

company recently signed a new contract for the maintenance of

bpTT’s onshore and offshore assets. Having grown its construction

management scope, the company is now able to perform all activities

associated with brown-field modifications and maintenance.

Neal & Massy Energy Services Limited (NMESL) experienced

another difficult year, particularly in the Services side of the business

where a number of projects proved to be challenging. The products

area showed a recovery from previous years, reflective of planned

and unplanned plant shutdowns that occured throughout the year

and the need to change out equipment during those shutdowns.

NMESL was successful in obtaining STOW certification, an industry

standard for Health and Safety management. NMESL and NMICL

collectively crossed the threshold of 3.5 million man-hours worked

without the occurrence of a Lost-Time incident.

NM Insertech (Caribbean) Limited (NMICL) had a successful

year in spite of a lack of projects coming from the energy industry.

A large number of plant turnarounds during the year provided

opportunities for the supply of technical labour. Technical Sales also

had breakthroughs into areas of instrumentation for replacement

of old equipment on petrochemicals plants. NMICL was successful

in obtaining STOW certification. NMICL was involved, as one of a

number of pilot companies, with the Energy Industry Competency

Development Initiative, to implement the certification of technical

skills for its workforce.

NM Supply Chain Integrators (NMSCI) had a disappointing year.

The company was unable to attract new clients for its purchasing

and warehouse management services. Additionally, an accounting

adjustment resulted in the company posting a small loss.

Neal & Massy Energy Resources Limited (NMERL) had a very

successful year as the company benefitted from favourable oil prices.

Effective cost management continued as the company sought to

streamline its activities, resulting in delivery of a positive net profit for

the year. During the year, a milestone of one million man-hours was

achieved without a Lost-Time Incident. This, in fact, represents more

than ten years of injury-free operations. The high-risk, low-production,

Point Fortin Lease was successfully sold and the enhanced oil recovery

project in Moruga is well on the way, and is expected to yield positive

results in about one year.

A review on the performance of Demerara Oxygen Company Ltd.

(DOCOL) is discussed on page 47 of this report together with the

other companies in the Guyana group.

30 2012

integrated retaiL Business unit

eARL BOODASINGH Group Executive vice President & Executive Chairman

4,83

5

303

18

5,11

5 312

19

2011 2011 20112012 2012 2012

6000

5000

4000

3000

2000

1000

0

400

300

200

100

0

20

15

10

5

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

6%inCrease 2011-2012

3%* rOna (return On net assets)

31forward focused

In the 2011 Annual Report, our President and Group CEO announced

the formation of the Integrated Retail Business Unit (BU). This Unit

coalesced our traditionally strong retail and distribution companies

with our rapidly developing consumer finance portfolio.

To execute its mandate, a flexible matrix organisation structure

has been adopted. This involved the establishment of a Corporate

Shared Services Unit, which brought more focus on critical areas

such as strategy, business excellence, procurement, information

technology, and real estate.

Although still in the early stages of the integration process, this

BU was able to develop and deliver a plan for success, spanning

several geographies and industries, which will be the foundation for

a formidable business model, certain to significantly contribute to

the Neal & Massy’s five-year growth aspirations. An overview of the

2012 performance of the three Lines of Business within the BU has

been provided in the subsequent sections by the respective Executive

Chairmen responsible for Retailing, Distribution and Logistics, and

Consumer Finance.

on Wednesday September 12, 2012 the newly refurbished, Hi-Lo Maraval

store was re-opened for business. Improvements to the store include

increased retail floor space; an expanded bakery; the installation of ultra

modern dry display pods for produce; a rebranded and colour coded

alcohol aisle; polished concrete flooring and a new light weight, energy

efficient insulated ceiling system, which will help to reduce energy costs.

32 2012

THE RETAIL LINE of BUSINESS currently operates over 40 stores in

four southern Caribbean markets—Trinidad and Tobago, Barbados,

St Lucia and St Vincent. Consistent with the Integrated Retail

strategy, the retail arm of Dacosta Mannings, our home specialist

operation in Barbados, was carved out and integrated into the

Retail Line of Business (LOB). As such the Retail LOB now extends

beyond food retail. This move has set the stage for more integrated

thinking among food, non-food and consumer finance, and will be

the springboard for future expansion of a new business model in

our core markets, and beyond.

The spin-off effect of a prolonged global economic slowdown

continues to hamper traditional retail formats. Our businesses have

not escaped the effects of this phenomenon. Although most of our

banners continue to maintain leading positions in their respective

markets, weak consumer demand continues to constrain top-line

growth.

Despite this, our business in Trinidad and Tobago performed

extremely well, and we expect this momentum to continue into

2013. In Barbados however, where economic activity has been

depressed and competition intensifying, the results have not been

as favourable. Our associate interest in the Eastern Caribbean,

Gablewoods Supermart Ltd., surpassed budgeted expectations in St

Lucia, but is facing some challenges in St Vincent, where we recently

expanded.

In general, the Retail Line of Business performed satisfactorily for

the year, posting modest year-on-year growth in revenue and profit.

We continue to focus on implementing the five-year strategic plan

developed in 2011 and this coming year will involve greater focus

on an integrated model which will not only transform our business

for sustainable growth, but also add greater value for our customers.

New site development in core markets, and regional expansion

within CARICOM remain important strategic themes within the BU.

Thus, we will continue to aggressively pursue these opportunities in

order to achieve our five-year aspiration.

TDL Retail (Hi-Lo food Stores, LB’s, and food Master) had

another successful year, experiencing commendable growth in both

sales and customer traffic. The past year saw continued focus on our

customers, through the further roll-out of Neal & Massy’s Customer

Service Management System.

Through our store modernisation programme, we continue

to offer customers a more exciting and pleasurable shopping

experience. The new Maraval store has delivered exactly that. After

the inconvenience of being closed for eight weeks, our customers

responded positively and were overwhelmingly impressed by the

new store experience.

Fiscal 2012 also saw renewed efforts in marketing and

promotional activity, which offered significant value to our customers

who responded positively to the various initiatives. We intend to

FReRe DeLMAS Group Senior vice President & Executive Chairman

integrated retaiL: retaiL Line Of Business

Hi-Lo Food Stores

Super Centre Limited

Sunset Crest Holdings Limited

DacostaMannings Retail Limited

Gablewoods Supermart Limited

33forward focused

continue creating excitement from our various value propositions

well into the foreseeable future, and hope in the coming year to

break ground for our first super combination store format in Trinidad

and Tobago.

The two Alternative Format stores, LB’s and food Master, have

been rebranded under the new banner “Diskomart”. Both stores

were closed for two days to facilitate the rebranding exercise, and

we have adjusted the variety and aligned the offering to cater to

value-seeking consumer segments.

Super Centre Limited (Super Centre) achieved moderate

results, despite the challenging economic conditions in the Barbados

market. Super Centre remains the market leader in the food

retail industry, but has come under increasing competition from

discounters, as consumers have become more price conscious in

the weakened economy. The company was unable to achieve the

anticipated top-line growth. Projected gross profit and net income

consequently fell short. During the year, a strategic decision was

taken to amalgamate the operations of Peronne Manufacturing

into Super Centre, implementation of which was completed at the

end of June 2012. One-off costs associated with the consolidation

further eroded profits for Super Centre, but the amalgamation will

produce savings for Super Centre in the future.

As mentioned last year, Super Centre established a new

centralised produce facility, which resulted in a major collaboration

with the cruise ship industry. Sales to this sector continue to be

extremely buoyant, and it is expected that, by comparison with

2012, the 2013 tourist season will be more fruitful for the company.

Stronger sales growth and greater expense control are key elements

of the 2013 Operating Plan. We will continue to price aggressively

in core categories to increase customer traffic, and to encourage

spending by providing greater value, particularly on the perimeter

(i.e. fresh food offerings). At the same time, the optimisation of

operating procedures is on the way to improve management of

operational cost, and to increase productivity with a more efficient

business model. The redevelopment of Sunset Crest is now in the

design phase, and we have a signed agreement to purchase land

at Kendal Hill to develop a new super combination store model.

Knights Pharmacies (Knights), the retail pharmacy unit of Super

Centre, performed creditably despite the sales decline occasioned

by a change in Government policy with regard to the Barbados

Drug Service. The Knights Health Advantage Club continues to be

promoted, and it is notably an important strategic pillar of growth

for Knights, by offering its patients value-added health care services.

The club now has approximately 1,700 members and several more

are expected to join in the coming financial year.

DacostaMannings Retail Limited (DMR) was split out of

Dacosta Mannings Inc. in 2012. The retail business was incorporated

into its own entity DMR, the distribution business lines were

incorporated into another entity – Dacosta Distribution Limited and

real estate properties remained with Dacosta Mannings Inc., which

was eventually amalgamated with SP Musson. DMR realised some

revenue growth over the past year due to the introduction of new

ranges of furniture and consumer electronics, as well as a new

consumer credit vehicle (Max Credit), which drew an encouraging

response from our customers. However, these gains were eroded

primarily by the increased costs related to the discontinuation of

hardware inventory, and one-off finance costs related to the original

Dacosta Mannings Inc. split, officially completed early in the financial

year.

A transformative business plan for further integration into the

Retail LOB has been put in place and is expected to bear fruit in the

coming financial year.

Gablewoods Supermart Limited (Associate Company) is the

parent of the operating company Consolidated Foods Limited (CFL),

which currently has nine supermarkets (Super J’s) and one warehouse

club (Mega J) in St Lucia, as well as two supermarkets (Super J) and

one Save-A-Lot franchise discounter in St Vincent. CFL in St Lucia

continues to show strong growth in sales and profits, but has been

experiencing some challenges with the operations in St Vincent.

CFL is looking forward to another year of growth in 2013, and the

company will continue to add Shareholder Value to the Group in

the Eastern Caribbean.

34 2012

In 2012, THE DISTRIBUTIoN & LoGISTICS LINE of BUSINESS

had a successful year, in which significant progress was made

toward laying a foundation for future growth. The alignment of

the companies along a “vertical” line of business has facilitated the

identification and transfer of best practices between companies. The

alignment has also accelerated the pace at which we can realise

synergies, as we build a truly regional organisation. In furtherance

of this objective, we have revisited and modified our commercial

and go-to-market structures as necessary to ensure that all major

growth initiatives are adequately resourced.

Despite a slowdown in the Trinidad and Tobago economy,

Marketing & Distribution (M&D) exceeded both its revenue and

its profit targets. The Pharmaceutical division, in particular, with a

new focus on the health care segments of the industry, delivered

exceptional sales growth. The Food and General Merchandise

division also performed creditably and, continuing on its path toward

building critical mass, acquired some new agencies, including Pine

Hill Dairy’s portfolio.

In preparation for future expansion, M&D acquired a five-acre

property, formerly owned by Consolidated Appliances Limited,

which is strategically located on the same industrial estate in Macoya

as M&D’s main complex. The property, comprising 126,000 square

feet of warehouse space and an office block, has been completely

refurbished and outfitted. It will eventually house all the company’s

dry warehousing as well as the marketing and sales offices for

the Geddes Grant operations. M&D also piloted an automated

replenishment system, which is expected to improve efficiency

and cost in serving larger retail customers. During the year, M&D

was once again recognised for excellence by several international

suppliers. It continues to build strong, committed relationships with

its principals and its customers.

In Barbados, SBI Distribution Inc. (SBI) has started its journey

towards ISO certification. We have established an alternate

distribution operation in Dacosta Distribution, which will work in

tandem with SBI Distribution to grow the Group’s business there. SBI

showed strong revenue growth over the previous year mainly due

to the expansion of the range of Pine Hill Dairy products, which the

company now co-distributes. A significant improvement in working

capital management and double-digit growth in the company’s

down-trade performance were also realised, as management moved

to contain cost, while simultaneously extracting any additional

growth. In the end, however, these efforts proved insufficient

to offset competitive margin pressure, which together with

increased sales of lower-margin commodities, resulted in company

performance marginally below that of the previous year.

integrated retaiL: distriButiOn Line Of Business

DAvID AFFONSO Group Senior vice President & Executive Chairman

Marketing & Distribution

SBI Distribution Inc.

Dacosta Distribution Limited

Knights Limited (Rainbow Paper Products)

NMH Trading & Distribution (Jamaica) Limited

Windsor Laboratories Limited

Neal & Massy Inc.

Melville Shipping Limited

Huggins Shipping & Customs Brokerage Limited

Booth Steamship Company (Barbados) Limited

35forward focused

Dacosta Distribution Limited (DDL) had a satisfactory year.

The Auto & Industrial division performed creditably despite sales

being affected by reduction in customer demand and in construction

activity, and by the collapse of the sugar industry in Barbados.

Toward the end of the year, the company secured the agency for

Turbo Batteries from Automotive Components Limited in Trinidad

and Tobago. The first shipment is expected to arrive early in the

new financial year. The Texgas division transitioned smoothly to

Rubigas, and completed significant upgrades to its filling plant and

cylinder fleet. The Shipping division had an improved year overall

with gains in the first half of the year. The second half saw huge

declines in volumes, which translated into much reduced income

from commissions.

During the year, work was done to establish an alternative food

and general merchandise distribution business in DDL. This operation

commenced business in October 2012. A nucleus of smaller brands

currently represented by SBI has been placed under this new banner.

Several suppliers have expressed an interest in having their brand

represented within the new operation. This division will provide

the avenue to further expand its distribution business in Barbados,

and to solidify its reputation as the partner of choice for principals

seeking representation for their brands on the island.

Knights Limited’s (trading as Rainbow Paper Products) results

improved slightly over the previous year, despite stiff competition

from international suppliers of popular brands of tissue paper

products. The food packaging division of this business had another

good year.

Our Jamaica operations NMH Trading & Distribution (Jamaica)

Limited (HD Hopwood) showed significant improvement in the

second half of the year, as a new and more experienced management

team, appointed in the second half of the year, has refocused the

company and set it on an aggressive path toward growth. The

company achieved ISO 9001:2008 certification in July, and secured

a number of new significant agencies toward the end of the year,

developments that will serve to position it favourably for the year

ahead. HD Hopwood’s results were negatively impacted by the slow

economy in Jamaica and uncertainty surrounding the stalled IMF

agreement, which resulted in an overall contraction in spending.

As with many other Caribbean territories, this trend is expected to

continue, as consumers adjust spending habits because of reduced

disposable income.

The operations of Windsor Laboratories were closed at the

end of the financial year, as its major principal, KAO Brands, opted

to supply Caribbean markets from its overseas plants, rather than

continue manufacturing a limited product range in Jamaica. With

the loss of this business, the Windsor operation was no longer viable,

and the decision was taken to close it. HD Hopwood has, however,

retained representation in Jamaica for an expanded range of Jergens

products.

Operating out of Miami, Florida, Neal & Massy Inc. (NMI)

enjoyed further growth during the financial year. Key to this was the

acquisition of the Valrico brand in May 2012, as well as a substantial

increase in sales of Sharp electronics. The acquisition of Valrico has

furthered NMI’s strategic expansion of its customer base and the

markets it serves throughout the region. The company doubled its

customer base during the year, and is now doing business in almost

every market in the Caribbean region.

Melville Shipping Limited (MSL) has responded positively

to the challenges and evolving changes in the global and local

shipping industry. The company achieved its financial targets and

has sustained growth in key sectors, while expanding its range of

services. MSL has also maintained its ISO 9001:2008 certification.

It continues to improve on customer service, thereby maintaining

its industry-leading position.

Huggins Shipping & Customs Brokerage Limited (Huggins),

in another successful year, again exceeded its financial targets. ISO

9001:2008 standards have also been maintained in keeping with the

company’s strong customer and quality management focus. During

the year The Customs & Excise Asycuda World was introduced,

bringing with it improved efficiencies that positively impacted our

customer base, but also changes which will, no doubt, require the

company to reinvent itself in years to come. Huggins continues to

work on expanding the range of services offered to customers, to

sustain growth, as well as to defend its position as the total logistics

provider of choice in Trinidad and Tobago.

Booth Steamship Company (Barbados) Limited (Booth

Steamship) experienced some challenges this year arising from over

capacity in the industry and lower volumes into Barbados, fuelled by

integrated retaiL: distriButiOn Line Of Business

36 2012

integrated retaiL: distriButiOn Line Of Business

fierce price-based competition among shipping lines. Despite this,

the company was able to grow its business and improve its share of

the inbound business into the island. Booth Steamship continues

to expose its staff to various forms of training, so that it can stay

abreast of changes in the industry, and thus remain relevant to its

principals and its growing customer base.

A review on the performance of Trading & Distribution Inc. in

Guyana is discussed on page 47 of this report, together with the

other companies in the Guyana group.

Marketing & Distribution acquired a five-acre property this year at the

Macoya estate. The new property adds 126,000 square feet to M&D’s

warehousing capacity, and has been completely refurbished and outfitted.

It will eventually house all the company’s dry warehousing as well as the

marketing and sales offices for the Geddes Grant operations.

37forward focused

THE CoNSUMER fINANCE LINE of BUSINESS was formalised

following completion of the Group’s five-year strategic plan in

October 2011. The focus for the year was to build a more cohesive

unit, together with a robust platform on which to grow our

portfolio of finance products. Specific focus and attention are

being placed on our revolving credit portfolio in Barbados, where

we have a significant penetration. Consumer finance, including

loyalty programmes, is the linchpin for the Integrated Retail Business

Unit. We continue to develop our capabilities that will enhance the

offering to both our existing and growing customer base.

General finance Corporation Limited (GfC), our financial

services company in Trinidad and Tobago, experienced a marginal

increase in new business volumes following four years of steady

decline. To address the challenge of a shrinking loan portfolio, GFC

sought to increase the penetration of financing motor vehicles sold

by Neal & Massy Automotive Ltd., an effort which began to bear

fruit, particularly in the latter half of 2012.

Our cost of funds continues to reduce in line with market

conditions. The company’s prudent approach to funding

requirements resulted in a further reduction of the Fixed Deposit

portfolio, and consequently interest costs. The level of delinquency,

trending lower than industry standards, improved over last year.

We wish to remember and pay tribute to Vishnu Tewari, a long-

standing Chief Executive Officer of GFC, who passed away suddenly

in June 2012. Vishnu’s leadership was an integral part of GFC’s

turnaround and success.

N&M Remittance Services Limited (NMRSL), which operates

the MoneyGram money transfer service in Trinidad and Tobago,

continued to experience increases in transaction volumes compared

to the previous year. This growth was achieved despite a slowdown

in the US economy, the main source market for remittances.

In fiscal 2012, NMRSL was awarded the “Top Send Agent

2011” by MoneyGram International, in recognition of its excellent

achievement and outstanding business growth. Operating expenses

have been maintained at the previous year’s levels, and this has also

contributed to improved results. A strategic marketing plan has

been implemented to drive growth in the upcoming year, and we

are proud to mention that over the past six months, the number of

operating agents has increased by about 50 percent.

Magna Rewards Inc. (Magna) is our loyalty services company

operating a coalition programme in six countries, with 1.35 million

customers within the Caribbean. Magna once again performed

above expectations on a consolidated basis. The largest growth

market for 2012 was in Jamaica, due to strong organic growth

THOMAS PANTIN Group Senior vice President & Executive Chairman

General Finance Corporation Limited

N&M Remittance Services Limited

Magna Rewards Inc

Medicard Limited

integrated retaiL: COnsumer finanCe Line Of Business

38 2012

N&M Remittance Services Limited increased the size of its network with

the addition of a MoneyGram branch at the newly-launched Diskomart

in Arouca. The new branch will tap into a new market segment at the

high-traffic location in Arouca.

by its largest customers as well as the addition of new partners

entering the programme. The Trinidad and Tobago operations

grew substantially over the previous year due to additional loyalty

processing opportunities set up early in the year. Barbados continues

to show moderate growth in a mature loyalty market, particularly

where, the retail sector has experienced anaemic growth.

During the year, a decision was taken to exit the Magna Eastern

Caribbean markets where sufficient critical mass does not exist to

sustain our businesses. However, there are still some residual points

to be awarded to Magna cardholders, and we expect to fully exit

by the end of fiscal 2013.

Medicard Limited (Medicard) is the issuer of a combination

discount card offering both medical and retail discounts from

merchants within Trinidad and Tobago. The company performed

creditably for the year and enjoyed steady growth in its Discount

Provider Network, featuring 260 merchants nationwide with a

cardholder base of approximately 63,000 members. In 2012,

Medicard has maintained its major corporate partnerships and

secured a new partnership agreement with Sagicor General. To

sustain growth and build on its existing product to ensure the

company’s continued success, management has actively pursued

various measures for card conversion.

A review on the performance of NM Services Limited in Guyana

is discussed on page 47 of this report, together with the other

companies in the Guyana group.

integrated retaiL: COnsumer finanCe Line Of Business insuranCe Business unit

39forward focused

united Insurance Company Limited

insuranCe Business unit

288

(24)

(8)

260 26

4

2011 2011 20112012 2012 2012

300

200

100

0

30

20

10

0

-10

-20

-30

6

4

2

0

-2

-4

-6

-8

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

deCrease 2011-2012

10%inCrease 2011-2012

208%* rOna (return On net assets)

e. GeRvASe WARNeR President, Group Chief Executive officer and Executive Chairman

40 2012

UNITED INSURANCE CoMPANy LIMITED’s (United) financial

performance improved significantly in 2012 mainly due to the

performance of its Caribbean Direct Insurance business. The absence

of any catastrophes for the year (compared to 2011, when the

organization was impacted by claims from three hurricanes) and

the improved loss experienced in the Motor and Accident lines

of business propelled a reversal of fortunes in Caribbean Direct

business.

In 2012, the Board of Directors of United made the decision

to discontinue the organisation’s involvement in the international

Inward Reinsurance line of business, to allow United to focus on

increasing its ability to deliver sustainable, profitable growth from

the Caribbean Direct business. United is in the process of run-off

from all sources of the inward business. The losses in that portfolio

and the one-off extraordinary expenses associated with terminating

contracts and closing operations led to a significant loss in this area of

the business in 2012. Nonetheless, United contributed a respectable

$26.4 million in Operating Profit to the Group’s bottom line.

Despite incurring a loss in 2011, United successfully re-affirmed its

AM Best A- (Excellent) rating in July 2012 for the eighth consecutive

year. Re-affirmation was largely based on the financial strength of

its parent company, the decision to exit the Inward Reinsurance

United Insurance improved its accessibility to its customer base by adding

a branch on the West Coast of Barbados. The new location is more

convenient for customers on the West Coast, who can now use the branch’s

videoconferencing technology to “meet” with underwriters at its Lower

Broad Street office. Clients can receive sound advice, arrange new policies,

pay their premiums, request quotes and submit claims without having to

travel to the company’s Bridgetown office.

business and its ability to secure high quality reinsurance support

for its Caribbean Direct insurance book.

United’s management team continued to focus on intimately

understanding its business across the Region and on implementing

actions tabled from a detailed review of its Caribbean Direct business,

including: (1) Creation of a standardized model for managing the

governance and performance of branches and agencies; (2) Review

of marketing and channel management initiatives; (3) Development

of an appropriate business model for our operations in Curacao;

and (4) Development of specific growth strategies for key markets

including the introduction of products and channels which not

only meet our customers’ needs, but which also inspire and amaze

them. The introduction of an insurance Kiosk at the Sunset Crest

Mall in Barbados which, using video conferencing technology to

allow customers to do business directly with the Head Office in

Bridgetown, is only the beginning.

While the company is pleased with the turnaround in its

financial performance, it recognises that there is still a need for

improvement to take its performance to a new level. Towards this

end, the company is improving its internal business processes and

pursuing increased use of technology. The company has substantially

completed the implementation of new General Ledger Accounting

insuranCe Business unit

41forward focused

software and has now developed a Request for Proposal for a new

Insurance Administration Software. United will also increase its

marketing activities to improve its understanding of its existing and

potential clients and to establish more meaningful connections with

its customers, agents and brokers.

The company has also taken substantial steps to improve its

governance, with the re-introduction of an Audit and Compliance

Committee and the appointment of an Internal Auditor and a

Compliance Officer. The company also formed a Re-insurance

Committee to provide oversight to this critical area of risk for the

company. These two new committees, along with the Investment

Committee have strengthened the oversight of the company’s

activities and will put the company in a strong position to meet the

challenges associated with increased regulation.

United will continue to support the communities in which it

operates. 2013 will see the company continue its support of sports

through funding provided to Under 19 Cricket in the OECS, Golf,

Horse-Racing and Tennis in Barbados, Sailing in Grenada and Baseball

in the Bahamas, just to name a few. An increased focus on the

support of charitable organizations and their causes throughout the

region will also be one of the key objectives of its corporate social

responsibility plan.

42 2012

infOrmatiOn teCHnOLOgY & COmmuniCatiOns Business unit

Illuminat (Trinidad & Tobago) Limited

Pereira & Company Limited

Three Sixty Communications Limited

Illuminat (Barbados) Limited

Illuminat (Jamaica) Limited

Illuminat (Antigua) Limited

FeNWICK ReID Group Senior vice President & Executive Chairman

572

75

29

551 79 30

2011 2011 20112012 2012 2012

600

500

400

300

200

100

0

80

60

40

20

0

30

20

10

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

deCrease 2011-2012

4%inCrease 2011-2012

5%* rOna (return On net assets)

43forward focused

THE INfoRMATIoN TECHNoLoGy & CoMMUNICATIoNS

(ITC) BUSINESS UNIT closed its financial year exceeding its prior

year budgeted Profit Before Tax (PBT), Shareholder Value Added

(SVA), and Free Cash Flow (FCF) targets. This was achieved despite

continued challenges in the Eastern Caribbean and Jamaican

economies.

The ITC Business Unit is focused on achieving its long-term

growth ambitions through the development of a number of new

services-related initiatives in the Caribbean. The Unit is also exploring

potential acquisition targets, in Latin America that are providers

of Imaging and Printing (IPS) and Information Technology and

Communications (ITC) solutions. One of the ITC Business Unit’s

newest initiatives is the establishment of a Credit Bureau in Jamaica

(CNM-CAL), a joint venture with CRIF, a leading provider of credit

solutions and services.

The ITC Business Unit has also made strides in its efforts to

improve its Health, Safety, Security and Environmental (HSSE)

standards in the region. Barbados and Jamaica operations made

advances in implementing their HSSE Management Systems. The

companies in Trinidad and Tobago are continuing to meet their

HSSE targets. All the Trinidad and Tobago companies are now Safe

To Work (STOW)-certified. Illuminat (Trinidad & Tobago) achieved

a one-year certification, and Pereira & Company Limited and 360

Communications Limited achieved two-year certification.

Illuminat (Trinidad & Tobago) Limited (ITTL), despite significant

reductions in Government spending, exceeded its budgeted Profit,

SVA and FCF targets, and previous year’s performance. This was

achieved through the company’s continued focus on growing its

recurrent revenue base and on delivering to customers a diverse

mix of transactional, managed and professional services.

The company also made strides in improving its service quality,

and was recently awarded “Service Provider of the Year” by the

Trinidad and Tobago Coalition of Services Industries (TTCSI). The ITTL

project management services unit has also been approved by the

global standards-setting body, PMI (Project Management Institute),

as a Global Registered Education Provider. In the coming year, ITTL

will continue to focus on delivering more transaction-based and

recurring-revenue services, as well as delivering new cloud-based

services in areas where it is currently strong. In addition, it will

continue to develop its footprint for communications services across

the Caribbean.

Pereira & Company Limited (Pereira) exceeded its budgeted

Profit, SVA ad FCF targets, based on creditable performances of the

Image and Print business and strong performance in its Office Interior

business. Despite significant reductions in construction opportunities,

the Company met its target through stringent expense management.

The company continues to exceed its customer satisfaction

targets, and to improve its quality assurance programme metrics.

The company was also named Client of the Year in the medium

company category by Leadership Management International Inc

(LMI), an international leadership development group.

In the coming year, Pereira will continue to focus on its managed

print service portfolio, while expanding its Ricoh business across the

Caribbean and into selected Latin American countries, through the

establishment of new operations and acquisitions.

Three Sixty Communications Limited (Three Sixty) exceeded

its budgetary targets in all key financial metrics and significantly

improved over its previous year performance. During fiscal 2012,

Three Sixty further expanded its international and domestic fibre optic

network to meet growing demands for high-capacity bandwidth

from the enterprise, government and telecommunications carrier

segments. The company’s strong top-line growth was significantly

fuelled by increased international voice traffic. In the upcoming

year, Three Sixty will continue to be strategically positioned as a

communications partner, providing 100 percent, all optical, fibre

to the building solutions.

Illuminat Barbados and Eastern Caribbean (Illuminat

Barbados and EC) did not achieve its budgeted operational profit

targets, due mainly to limited availability of major Government

projects in Barbados and Antigua, territories both facing challenging

economic conditions. Despite the challenges, however, the Illuminat

Barbados operation achieved its SVA target mainly through effective

working capital and expense management. The continued shift of

the business to a greater proportion of transactional and professional

FeNWICK ReID Group Senior vice President & Executive Chairman

44 2012

services has also aided in mitigating the effects of the slowdown in

major strategic deals.

Illuminat Jamaica Limited (Illuminat Jamaica) showed growth

over the previous year but did not achieve its budgeted target mainly

due to deferred major projects in the Government sector. Other areas

of business, namely its IPS and Technical Support Services, mitigated

some of the shortfalls resulting from these deferred projects. Like the

other ITC companies, Illuminat Jamaica has made good progress in

shifting its model to delivering a greater proportion of transaction

and recurring-revenue services. It is currently working on major

managed services opportunities. In the new year, it is expected that

these managed services opportunities, will play a greater part in the

organization’s achievement of its budget and growth targets.

A review on the performance of CCS (Guyana) Ltd. and NM Security

Solutions Inc. is discussed on page 47 of this report, together with

the other companies in the Guyana group.

Pereira & Company Limited was awarded Safe To Work (SToW) Certification

by the SToW Project office of the Energy Chamber, after a stringent audit

and assessment of the Company’s HSE policies, management systems and

implementation. one remarkable highlight of Pereira’s Certification was

that the company scored high enough to merit a two-year certification,

instead of the one-year certification, typically awarded to first-time

applicants. In photo from left to right: Karen Abraham, HSE Coordinator,

Periera; Makonnen McQueen, HSE Coordinator, NM ITC Group; Anna

Henderson, CEo, Pereira and Gail figaro, HSE Manager, NM ITC Group.

infOrmatiOn teCHnOLOgY & COmmuniCatiOns Business unit

45forward focused

OtHer inVestments

505

83

7

517

126

10

2011 2011 20112012 2012 2012

600

500

400

300

200

100

0

150

100

50

0

10

5

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

2%inCrease 2011-2012

52%* rOna (return On net assets)

oTHER INvESTMENTS

Despite a slow-down in the Real Estate and Property Management

Industry, Nealco Properties Limited (NPL) exceeded its budgeted

revenue through concerted efforts on customer retention and

through the provision of brokerage services to customers who

required services outside of NPL’s portfolio. Assisted by rigorous

cost management initiatives, the company surpassed both its

profit and Shareholder Value Added goals. In the new Financial

Year, Management will execute similar strategies and techniques

to continue to improve its performance.

Nealco Real Estate Limited (NREL) continues to be profitable

despite a slow-down in sales in the real estate market. The company

continues to pursue new property management clients and to

improve on its service to its existing customer base.

SP Musson Son & Company Limited (SP Musson) enjoyed

a more profitable year, when compared to the prior year’s

performance. It should be noted that two unusual, one-off

transactions were responsible for the improved results: the sale of

land to the Barbados Government and the amalgamation of the

property holding entity, Dacosta Mannings Inc. The company also

benefited from land sales at Aerowoods Development in St. Philip,

but the core rental business did not perform as expected given the

recent trend of businesses relocating outside of Bridgetown. The

redevelopment of the Autodome in Warrens offers SP Musson the

potential for revenue growth in the near to medium term.

Roberts Manufacturing Company Limited (50.5 percent)

produces vegetable oils and margarines while its joint venture

subsidiaries of Pinnacle Feeds Ltd and VitaPet Ltd, manufacture

animal feeds and dog chow respectively. Profits for the year improved

through a mixture of cost controls and revenue improvement. While

the economic recession continued to affect many of the territories

in which the companies’ products are sold, sales of certain products

grew in Trinidad. The drought experienced by the USA mid-west

brought significant increases in the cost of soybeans and corn, which

46 2012

are essential raw materials in the production of all the products within

the portfolio. Management was able to cushion these through its

purchasing methods together with the consistent application of

standard formulations and pricing so as to generally achieve stability

in margins. New products are planned for certain market segments

which show room for growth while the company continues to pursue

the means to retain or improve market share for existing products.

BCB Communications Incorporated (BCB) (51 percent), the

in-house advertising agency for our Barbados companies and Banks

Holdings Limited, recorded a net profit 4 percent higher than the

prior year. For this period BCB managed its expenses carefully

and realised a 9 percent reduction versus prior year. These savings

were due to a decrease in employment expenses and prudent

management of other expenses throughout the year. The overall

performance was hampered by the economic slowdown in Barbados,

which resulted in reduced advertising spends and encouraged BCB to

look for new marketing options such as new media communication

platforms.

Banks Holdings Limited, (BHL) (20 percent) is the holding

company for the group of businesses in Barbados involved with

beverage production (namely beer, soft drinks, juices and milk) with

investments in the Coca Cola bottler in The Bahamas, Banks beer in

Guyana and a citrus producer in Belize. The performance of BHL was

led by its associated companies, specifically Banks DIH in Guyana and

Citrus Products of Belize Limited. In the case of Banks DIH, strong

economic growth in Guyana has led to significant volume increases

and these have generated record profits for that company. A good

crop and robust commodity pricing resulted in a strong performance

of Citrus Products of Belize while other associates also recorded

improved results in line with expectations.

Unfortunately the recessionary environment in Barbados

continued to limit sales across all product lines and there was no

meaningful growth recorded across the brands. While not yet

operating at optimum levels, the new brewery has nevertheless

brought several operational savings and profitability in that operation

was in line with expectations and ahead of the previous year.

Signia financial Group Incorporated (20 percent) experienced

a difficult year. 2012 was a challenging financial year in Barbados,

for the finance and banking sector, with high liquidity and high

delinquencies in an environment of increased unemployment.

Additionally, new Central Bank regulations restricted the spreads

and earnings in foreign exchange trading. Net interest income

improved marginally, but with higher loan provisions and reduced

trading income, profitability was notably lower for the period under

review.

Seawell Air Services Limited (SAS) provides ground handling

services to several of the major airlines serving Barbados such as

British Airways and Caribbean Airlines. The Company’s revenue

increased only marginally for the year under review but management

achieved a decrease in overall costs year on year resulting in a modest

profit on operations. Unfortunately the withdrawal of Redjet in the

first quarter of 2012 notably impacted revenue and profitability for

the financial year.

Caribbean Airport Services Limited (CAS) (49 percent), which

provides ground handling services at the V.C. Bird International

Airport in Antigua, faced similar challenges to those of SAS. The

company will produce a small profit for its financial year ending

December 2012, following the addition of LIAT’s cargo handling

business and the contract to handle Westjet during the year.

Based in Montreal, Canada, Medina foods Incorporated (30

percent) provides consultancy services and food safety audit services

to food processors and producers with food safety assurance

programmes. A key area of its business is the audit of airline caterers

worldwide on behalf of many major airlines through its Barbados

subsidiary Medina International, which is an International Business

Company. Medina’s results grew reasonably for the year under new

arrangements with the airlines.

OtHer inVestments

47forward focused

tHe guYana grOup

Trading & Distribution Inc.

Associated Industries Limited

CCS Guyana Limited

Demerara Oxygen Company Limited

NM Security Solutions Inc.

NM Services Limited

DeO PeRSAuD Chief Executive officer, Neal & Massy Guyana Group

THE GUyANA GRoUP once again recorded double-digit growth

in the past year, with all operating companies contributing to the

positive results. The economic outlook for Guyana in 2013 suggests

there is opportunity for continued organic growth from the current

business portfolio. However, management will also focus its efforts

on the development of new business opportunities. While each

of the subsidiaries of the Guyana Group has integrated into the

industry segments portfolios that Neal & Massy has reorganized

itself around, the group of companies continues to be managed as

a unit by a strong leadership team in Guyana sharing industry best

practices with the rest of the Group. The Group will continue to

focus on recruiting, leadership development and succession planning

in Guyana to sustain the excellent performance that this group of

companies has established over the last 10 years.

Trading & Distribution Inc. (TDI) recorded satisfactory results

as it continues to focus on its Distribution Excellence Initiative which

yielded improvements in distribution coverage and route expansion.

To facilitate future growth and expansion, the company plans to

establish new distribution and office facilities, construction of which

will commence in 2013.

Associated Industries Limited (AINLIM) had another year of

strong performance. The Capital Goods segment of our business

benefited from investments made in the rice and gold mining

sectors, which remained buoyant due to attractive world market

prices for these commodities. We have expanded our distribution

business by establishing new routes and have seen steady growth

in this segment. The Customer Service Initiative and investment in

our after-sales services within the dealership business are the main

priorities in the year ahead.

CCS Guyana Limited (CCS) had a successful year driven by

growth in its enterprise management systems business, success in

Government tenders, and improved sales for its business products

portfolio. In the New Year, the company will focus on offering new

solutions in a number of industries, and will progress initiatives in

customer service and employee engagement.

Demerara oxygen Company Limited (DoCoL) continued to

expand its distribution network with the activation of new dealers

throughout the country. During the year, the company also embarked

on a number of capital projects, which will lead to significant

improvement in plant capacity and efficiency for LPG and industrial

gases, and enhance the safety profile of the entire facility.

NM Security Solutions Inc. (NMSS) produced good growth

in its guarding and cash divisions. Good progress continues to be

made on training for the security officers, aimed at bringing more

value for its customers.

48 2012

This year, the Demerara oxygen Company Limited (DoCoL), rebranded

its LPG product to ‘Rubigas,’ replacing the Texgas brand. The rebrand

resulted from the acquisition of the Texaco operations in the Eastern

Caribbean by Rubis. DoCoL also recently increased its bulk LPG storage

capacity by 75 percent and has actively started streamlining its operations

to widen its dealer networks, reduce customer waiting times and improve

its delivery to customers in Guyana.

NM Services Limited (NMSL) launched SurePay bills payment

service during the latter part of the year. The loss of the CMA-CGM

shipping agency in January 2012, along with a decrease in the money

transfer business, impacted the business negatively. The company

continues to look for opportunities to develop additional service-

related businesses, and to focus on enlarging its share of market

for the current service offerings.

tHe guYana grOup

49forward focused

regiOnaL perfOrmanCe

4,48

8

522

43

5,02

6

576

34

2011 2011 20112012 2012 2012

6000

5000

4000

3000

2000

1000

0

600

500

400

300

200

100

0

50

40

30

20

10

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

12%inCrease 2011-2012

10%* rOna (return On net assets)

e. GeRvASe WARNeR President & Group Chief Executive officer, Neal & Massy Group

50 2012

2,64

9

126

5

2,68

1

217 11

2011 2011 20112012 2012 2012

3000

2000

1000

0

250

200

150

100

50

0

12

10

8

6

4

2

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

1%inCrease 2011-2012

73%

FReRe DeLMAS Country Manager, Neal & Massy Barbados

* rOna (return On net assets)

regiOnaL perfOrmanCe

51forward focused

687

92

34

766

103

30

2011 2011 20112012 2012 2012

800

600

400

200

0

125

100

75

50

25

0

40

30

20

10

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

11%inCrease 2011-2012

12%

DeO PeRSAuD Chief Executive officer, Neal & Massy Guyana Group

* rOna (return On net assets)

52 2012

CHRISTIAN MAINGOT Chairman, Gas Products Limited

659 58

16

663

49

13

2011 2011 20112012 2012 2012

700

600

500

400

300

200

100

0

60

50

40

30

20

10

0

20

15

10

5

0

REv

ENU

E TT

$M

PRo

fIT

BEf

oR

E TA

X T

T$M

*Ro

NA

%(PAT/AvERAGENETASSETS)

inCrease 2011-2012

1%deCrease 2011-2012

16%* rOna (return On net assets)

regiOnaL perfOrmanCe

53forward focused

BOard Of direCtOrs

ARTHUR loK JACK Chairman Trinidad & Tobago Citizen

In 1998, ARTHUR LOK JACK was elected to the Board of Neal & Massy Holdings

Limited and was appointed Chairman in June 2004. He is also the Executive Chairman

of the Associated Brands Group of Companies, Chairman of Guardian Holdings

Limited and serves on the boards of many other Caribbean companies. In 2001,

he was awarded the title of Master Entrepreneur from Ernst & Young and in 2002,

he was bestowed an Honorary Doctorate of Laws and recognized as a Caribbean

Luminary by the University of the West Indies. Mr. Lok Jack is also a recipient of the

prestigious Chaconia Medal (Gold) for his contribution to business development in

Trinidad and Tobago. In 2004 he was inducted into Queen’s Royal College (Alma

Mater) Hall of Honour and in November 2009, he was inducted into the Trinidad &

Tobago Chamber of Industry and Commerce’s Business Hall of Fame.

E. GERVAsE WARnER President & Group CEo Trinidad & Tobago Citizen

E. GERVASE WARNER is the President and Group CEO of the Neal & Massy Group of

Companies. Prior to his appointment in 2009, he served as the Executive Chairman

of the Group’s Energy & Industrial Gases Business Unit.

Mr. Warner holds an MBA from the Harvard Graduate School of Business and

BSE Degrees in Electrical Engineering and Computer Science Engineering from the

University of Pennsylvania.

Prior to joining the Neal & Massy Group, Mr. Warner was a partner with the

international management consulting firm, McKinsey & Company Inc., where he last

led the firm’s client services in the Caribbean region. He has extensive experience

in the petroleum, financial and ITC sectors and currently serves on the Trinidad and

Tobago Board of Citigroup Merchant Bank Limited and the Arthur Lok Jack Graduate

School of Business. Mr. Warner has over 20 years of international experience working

in the USA, Latin America and the Caribbean.

DR. RolPH BAlGoBIn Trinidad & Tobago Citizen

DR. ROLPH BALGOBIN is the Executive Chairman of Quicksilver Convenience Ltd.,

Deputy Chairman of EIL Holdings and a director of several other companies and

charities. He is an Independent Senator in the Parliament of The Republic of Trinidad

and Tobago and a Faculty Member of the Arthur Lok Jack Graduate School of Business.

He holds business degrees from the University of the West Indies, the University

of Manchester and the University of Cambridge, as well as an ACCA Diploma in

Corporate Governance. He currently researches and has published books, newspaper

columns and scholarly papers in the fields of competitiveness, corporate governance

and corporate turnaround.

54 2012

RoBERT BERmUDEz Trinidad & Tobago Citizen

ROBERT BERMUDEz is the Chairman of the Bermudez Group of Companies. He is

also associated with several other corporate bodies in and out of Trinidad and Tobago.

EARl BooDAsInGH Trinidad & Tobago Citizen

EARL BOODASINGH is an Executive Vice President and heads the Group’s Integrated

Retail Business Unit which includes the Retail, Distribution and Consumer Finance

lines of business (LOB).

Mr. Boodasingh joined the Neal & Massy Group in 1981 and has held many senior

positions across the Group throughout his tenure. His career within the group began

at Neal & Massy Industries Limited as a Cost and Management Accountant. He went

on to hold the positions of Financial Comptroller and Financial Director for a number

of companies and major divisions, including the Marketing & Distribution Division and

the Hi-Lo Food Stores Division. He later served as CEO for both divisions, consecutively.

In 2002, he was appointed as the Transition Manger for H.D Hopwood & Company

Limited in Jamaica.

In 2005, Mr. Boodasingh was appointed as the Executive Chairman of the Neal &

Massy Automotive & Industrial Equipment Business Unit.

GEoffREy CAVE Barbados Citizen

GEOFFREY CAVE is the Chairman of the Board of Directors of Cave Shepherd & Co.

Limited – a Barbados-based corporation with subsidiary and associate companies

located across the region.

Mr. Cave joined Cave Shepherd, which was a family-run business at the time, in

1963 and was later appointed as the company’s Managing Director, then elected as

its Chairman. He has enjoyed a distinguished career in business, serving as Director

and Chairman of several leading private and public organizations in Barbados.

In the year 2000, Mr. Cave was awarded the Barbados Centennial Honour.

Following that, he was appointed Commander of the Most Excellent Order of the

British Empire in the Queen’s New Years’ Honour List in 2003, and in October 2007

the University of the West Indies conferred on him an Honorary Degree of Doctor

of Laws (LLD). More recently, in October 2009, he was appointed an Independent

Senator by the Governor General of Barbados.

BOard Of direCtOrs

55forward focused

PATRICK HylTon Trinidad & Tobago Citizen

PATRICK HYLTON is the Group Managing Director of the National Commercial

Bank Jamaica Limited (NCB), Jamaica’s largest Commercial Bank. He received public

recognition when the Government appointed him to a leading role in the rehabilitation

of the Jamaican financial sector during the mid 1990s. His wealth of experience in

the financial services industry propelled him to the position of Managing Director of

the Financial Sector Adjustment Company (FINSAC). He performed in this role for

five years, and in 2002 joined NCB as Deputy Group Managing Director. In 2004, Mr

Hylton was appointed Group Managing Director of NCB and has led the organisation

to achieve record growth in profitability. Mr. Hylton is an Honours Graduate in Business

Administration and an Associate of the Chartered Institute of Bankers (ACIB), London.

He is a Past President of the Jamaica Bankers Association and, he is the Chairman of

Harmonisation Limited and sits on several boards, including the Caribbean Information

and Credit Rating Services (CariCRIS). In 2002, Mr Hylton was awarded the Order of

Distinction, Commander Class by the Prime Minister and Governor General of Jamaica.

G. AnTHony KInG Barbados Citizen

G. ANTHONY KING’s business career spans some 37 years, 28 of which have been

spent with the Neal & Massy Group. Prior to his departure from Neal & Massy in

October 2004 to take up the appointment of Chief Executive Officer of the Barbados

Shipping & Trading Company Limited (BS&T), he chaired Neal & Massy’s Eastern

Caribbean Group of Companies. After the take-over of BS&T in 2008 by Neal & Massy,

Mr King became a Group Executive Vice President of the Neal & Massy Group but

also remained as BS&T’s CEO, co-ordinating the integration of BS&T’s operations into

the Group. With that process substantially complete, he retired as an Executive of

the Group during 2012. Mr King continues to serve on the Neal & Massy Holdings

Board, now as a Non-Executive Director.

Mr. King is also a Director of other publicly traded companies in Barbados such as

Banks Holdings Limited, Almond Resorts Inc and Republic Bank (Barbados) Ltd and

is a Director of various private companies.

sIR AllAn fIElDs Barbados Citizen

SIR ALLAN FIELDS joined the Neal & Massy board in 1998 to 2008, and was reappointed

in 2009. He was the Chairman of the Barbados Shipping & Trading Co. Ltd. (BS&T).

Formally trained in Mechanical Engineering, he has served as Managing Director of

Lucas Industries Barbados’s operations, BS&T and Banks (Barbados) Breweries Ltd.

Sir Allan serves on many boards in Barbados, including the Barbados National

Insurance Corporation, First Caribbean International Bank, and the Barbados

Employers Confederation.

He is also Past President of the Private Sector Organization and Chairman of

Banks Holdings Limited, Barbados Dairy Industries Ltd, Cable & Wireless (Barbados)

Ltd. and the Commonwealth Business Association. He was Barbados’ non-resident

Ambassador to the Peoples Republic of China from 2003 to 2008 and served as an

Independent Senator in the Barbados Parliament.

56 2012

BOard Of direCtOrs

PAUlA RAJKUmARsInGH Trinidad & Tobago Citizen

PAULA RAJKUMARSINGH is a Corporate Financial Executive, with over 12 years of

experience at a senior management level, and the Group’s Chief Financial Officer.

She is currently a Director on the Parent Board of CIBC First Caribbean International

Bank in Barbados and CIBC First Caribbean International Bank in Trinidad and Tobago.

She also serves as a director for the St Joseph Convent Cluny Board of Management.

She previously served on the boards of the Sugar Manufacturing Company as well

as a private Equity Fund.

GARy Voss Trinidad & Tobago Citizen

GARY VOSS is currently the Non-Executive Chairman of Unilever Caribbean Limited.

He joined Lever Brothers West Indies Limited in 1982 as Technical Director, and was

appointed Chairman and Managing Director in 1987. He retired from Unilever in

2001. His early career was spent with the (then) Texaco Pointe-a-Pierre refinery, the

Caribbean Industrial Research Institute (CARIRI) and the Iron and Steel Company of

Trinidad and Tobago (ISCOTT). Mr Voss’ previous posts include Superintendent, Direct

Reduction, ISCOTT; Head of Engineering, CARIRI, as well as President of the Trinidad

and Tobago Manufacturers Association (TTMA) and President of the Caribbean

Association of Industry and Commerce. He is also a director of RBC Finance Holdings

and several of its subsidiaries. Mr Voss is a Chemical Engineer by profession and holds

a B.Sc. Degree (Honours) from Birmingham University in the UK.

William lucie-Smith Trinidad & Tobago Citizen

WILLIAM LUCIE-SMITH is a Chartered Accountant by profession and a former Senior

Partner of PricewaterhouseCoopers (Trinidad) where he headed its Corporate Finance

and Recoveries practice. Mr. Lucie-Smith has accumulated extensive experience in

mergers and acquisitions, taxation and valuations and holds an MA degree from

Oxford University in Philosophy, Politics and Economics. He currently serves as a

Non-Executive Director on a number of boards including Republic Bank and Sagicor

Financial Corporation.

57forward focused

BOard Of direCtOrs

BRIAn yoUnG Jamaican Citizen

BRIAN YOUNG is the Chairman of the Neal & Massy Group (Jamaica) Limited and a

member of the Audit Committee of Neal & Massy Holdings Limited.

A former Senior Partner of PricewaterhouseCoopers (Jamaica), Mr. Young has held

his position on the Board of Neal & Massy Holdings Limited for the past 16 years.

He is highly experienced in the areas of corporate finance, mergers and acquisitions,

insolvency and management information systems, with 45 years of management

consultancy experience.

Mr. Young is currently on the boards of Trinidad Cement Limited, Caribbean Cement

Company Limited, Bermudez Holdings Limited, Trade Winds Citrus Limited and has

served on many Jamaican Government teams.

58 2012

The Directors have pleasure in submitting their Report and the Audited Financial Statements for the financial year ended September 30, 2012.

PRINCIPAL ACTIvITIES

The main activity is that of a Holding Company.

financial results for the year $’000

Profit attributable to Shareholders 470,809

Dividends paid (131,220)

Profit retained for the year 339,589

Other movements on revenue reserves (19)

Balance brought forward 2,368,374

Retained earnings at end of year 2,707,944

DIvIDENDS

The Directors declared a final dividend of $1.05 cents per share, making a total dividend of $1.50 per share for the financial year. The final

dividend will be paid on or after January 18, 2013 to shareholders whose names appear on the Register of Members of the Company at

the close of business on January 2, 2013.

DIRECToRS

Pursuant to paragraph 4.4.1 and 4.4.2 of By-Law No. 1 of the Company Messrs. Arthur Lok Jack, William Lucie-Smith, Rolph Balgobin

and David O’Brien retire from the Board by rotation and being eligible offer themselves for re-election until the close of the third Annual

Meeting following this appointment.

Pursuant to paragraph 4.4.1 and 4.4.2 of By-Law No.1 of the Company, Messrs. E. Gervase Warner and G. Anthony King retire from the

Board by rotation and being eligible offer themselves for re-election until the close of the next Annual Meeting following this appointment.

DIRECToRS’, SENIoR offICERS’ & CoNNECTED PERSoNS’ INTERESTS

These should be read as part of this report.

AUDIToRS

The Auditors, PricewaterhouseCoopers, retire and being eligible offer themselves for re-appointment.

By Order of the Board

WENDy KERRy

Corporate Secretary

December 20, 2012

direCtOrs’ repOrt

59forward focused

DIRECToRS’, SENIoR offICERS’ & CoNNECTED PERSoNS’ INTERESTS

Set out below are the Directors, Senior Officers and their Connected Persons with interests in the shares of Neal & Massy Holdings Limited

and the holders of the ten (10) largest blocks of shares in the Company as at September 30, 2012.

Directors and Senior Officers Shareholding Connected Persons Shareholdings

Rolph Balgobin 6,500 Nil

Robert Bermudez 14,820 13,029

Earl Boodasingh 195,790 Nil

Geoffrey Cave Nil Nil

Allan Fields 1,000 Nil

Patrick Hylton Nil Nil

Gerald Anthony King 75,000 Nil

Arthur Lok Jack Nil 103,680

William Lucie-Smith Nil 22,897

Paula Rajkumarsingh 117,420 Nil

Gary Voss Nil Nil

Elliot Gervase Warner 99,327 Nil

Brian Young Nil Nil

David Affonso 7,401 Nil

Judith Bowen 28,349 Nil

Linford Carrabon 182,288 Nil

Frere Delmas 752 Nil

Angela Hamel-Smith 60,491 Nil

Christian Maingot 4,605 Nil

David O’Brien 33,454 Nil

Thomas Pantin 26,379 Nil

Doodnauth Persaud 27,531 Nil

Fenwick Reid 47,715 Nil

Wendy Kerry 284 Nil

DIRECToR’S NoN-BENEfICIAL INTEREST

Paula Rajkumarsingh, a Director (together with Curtis Lee Poy) holds a non-beneficial interest in 1,309,801 shares as a co-trustee of the

Neal & Massy Group Profit Sharing Plan.

60 2012

direCtOrs’ repOrt

HoLDERS of THE TEN (10) LARGEST BLoCKS of SHARES

Name of Registered Shareholder Number of Shares

National Insurance Board Limited 19,801,051

RBTT Trust Limited 8,643,163

RBTT Nominee Services Limited 9,205,981

Republic Bank Limited 7,564,105

First Citizens Trust & Asset Management Limited 5,325,212

Trinidad & Tobago Unit Trust Corporation 5,068,198

Trintrust Limited 3,416,794

Sagicor (Equity) Fund 1,959,858

Guardian Life of the Caribbean Limited 1,622,582

Paula Rajkumarsingh & Curtis Lee Poy 1,309,801

NoTES

Note 1

National Insurance Board Limited holds a substantial interest in the issued share capital of the Company. A substantial interest means one-

tenth or more of the issued share capital of the Company.

Note 2

There have been no changes to the Substantial Interests occurring between the end of the Company’s financial year and one month prior

to the date of the Notice convening the Annual Meeting. The following changes took place in the Interest of Directors and Senior Officers

between the end of Company’s financial year and one month prior to the date of the Notice convening the Annual Meeting; (i) Mr. Earl

Boodasingh sold 3,853 Ordinary Shares in the Company, on October 16, 2012 and 9,095 Ordinary Shares in the Company, on October 17,

2012; (ii) Mr. David O’Brien purchased 20,422 Ordinary Shares in the Company on October 17, 2012; (iii) Sir Allan Fields retired from the

Board of Directors of the Company on November 6, 2012, (iv) Mr Richard Young was appointed to the Board of Directors on December

20, 2012, and (v) Mr. David O’Brien was appointed to the Board of Directors, effective January 1, 2013.

Note 3

There were no beneficial interests attached to any shares in the names of the Directors in the Company’s subsidiary companies such shares

being held by the Directors as nominees of the Company or its subsidiaries.

Note 4

At no time during, or at the end of the financial year, where any material contracts, or proposed material contracts, granted by the

Company or any of its subsidiary companies to any Director or proposed Director of the Company.

management prOXY CirCuLar

61forward focused

management prOXY CirCuLar

REPUBLIC of TRINIDAD AND ToBAGo

THE CoMPANIES ACT, CH. 81:01

[SECTIoN 144]

1 Name of Company: NEAL & MASSY HOLDINGS LIMITED

Company No. N-20(C)

2 Particulars of Meeting

Eighty-Ninth Annual Meeting of Shareholders of the above named Company to be held at the Belmont Salon, Hilton Trinidad, Lady

Young Road, Port of Spain, Trinidad at 10:00 a.m. on Friday February 1, 2013.

3 Solicitation

It is intended to vote the Proxy solicited hereby (unless the shareholder directs otherwise) in favour of all resolutions specified 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, Ch. 81:01.

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 Companies Act, Ch. 81:01.

6 Any Shareholder’s proposal 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 Companies Act, Ch. 81:01.

DATE NAME AND TITLE SIGNATURE

December 20, 2012 WENDy KERRy

Corporate Secretary

62 2012

The accompanying Summary Consolidated Financial Statements of Neal & Massy Holdings Limited and its subsidiaries (the Group) were

prepared by Management, who is responsible for the integrity and fairness of the information presented. Management acknowledges

responsibility for the preparation of the Consolidated Financial Statements annually and for establishing and maintaining an adequate

internal control structure and procedures for financial reporting and safeguarding the assets of the Group.

It is management’s responsibility to apply the appropriate accounting policies and make accounting estimates that are reasonable.

Management is responsible for ensuring that the consolidated financial statements presented are a fair and true presentation of the state

of affairs of the Group which includes ensuring that the information from which the consolidated statements are derived are designed

and properly monitored in a manner which would allow accurate information to be provided. In addition, management is responsible for

ensuring that the information presented is free from material misstatement whether due to fraud or error.

Management accepts responsibility for the Annual Consolidated Financial Statements from which these Summary Consolidated Financial

Statements were derived as well as the responsibility for the maintenance of the accounting records and internal controls which form the

basis of the consolidated financial statements. The Summary Consolidated Financial Statements of Neal & Massy Holdings Limited and

its subsidiaries are prepared in accordance with International Financial Reporting Standards and appropriate accounting policies have been

established and applied in a manner which give a true and fair view of the Group’s financial affairs and operating results.

In addition, it is noteworthy to mention that nothing has come to the attention of Management to indicate that the Group will not remain

a going concern for the next twelve months from the date of this statement.

E. GERvASE WARNER PAULA RAJKUMARSINGHChief Executive Officer Chief Financial Officer

December 21, 2012 December 21, 2012

statement Of management’s respOnsiBiLitY

63forward focused

independent auditOr’s repOrt

64 2012

ASSETS

Non-current assets

Property, plant and equipment 1,665,945 1,537,515

Investment properties 325,101 325,849

Goodwill 145,284 157,419

Other intangible assets 51,005 40,793

Investments in associates and joint ventures 406,765 405,378

Financial assets 414,275 439,673

Deferred income tax assets 61,980 68,039

Instalment credit and other loans 135,293 130,235

Retirement benefit asset 258,651 231,968

3,464,299 3,336,869

Current assets

Inventories 1,252,189 1,286,772

Instalment credit and other loans 110,800 114,590

Trade and other receivables 1,612,092 1,567,421

Financial assets at fair value through profit or loss 114,844 77,806

Cash and cash equivalents 1,304,737 1,123,142

4,394,662 4,169,731

Assets of disposal group classified as held for sale 590,743 703,658

4,985,405 4,873,389

Total assets 8,449,704 8,210,258

EQUITy

Capital and reserves attributable to equity holders

of the Company

Share capital 554,488 540,181

Retained earnings 2,707,944 2,368,374

Other reserves 122,875 99,268

3,385,307 3,007,823

Non-controlling interests 135,761 219,062

Total equity 3,521,068 3,226,885

2012 2011 $ $

COnsOLidated statement Of finanCiaL pOsitiOn

As at September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

65forward focused

LIABILITIES

Non-current liabilities

Borrowings 1,064,746 1,169,794

Deferred income tax liabilities 128,390 115,224

Customers’ deposits - 141

Retirement benefit obligation 104,685 83,981

Provisions for other liabilities and charges 210,049 243,822

1,507,870 1,612,962

Current liabilities

Trade and other payables 1,452,610 1,453,636

Liabilities on insurance contracts 795,407 832,473

Customers’ deposits 206,122 215,305

Current income tax liabilities 83,484 57,714

Borrowings 391,230 248,061

2,928,853 2,807,189

Liabilities of disposal group classified as held for sale 491,913 563,222

3,420,766 3,370,411

Total liabilities 4,928,636 4,983,373

Total equity and liabilities 8,449,704 8,210,258

On December 20, 2012, the Board of Directors of Neal & Massy Holdings Limited authorised these consolidated financial statements for

issue.

E.G. WARNER A. LoK JACK PAULA RAJKUMARSINGHDirector Director Director

2012 2011 $ $

66 2012

2012 2011 $ $

Continuing operations:

Revenue 9,146,488 8,497,341

Operating profit before finance costs 793,781 646,878

Finance costs – net (46,107) (47,806)

Share of profit of associates and joint ventures 54,175 40,578

Profit before income tax 801,849 639,650

Income tax expense (257,862) (195,294)

Profit for the year from continuing operations 543,987 444,356

Discontinued operations:

Loss for the year from discontinued operations (49,875) (473,828)

Profit/(loss) for the year 494,112 (29,472)

Owners of the parent:

Profit for the year from continuing operations 495,990 402,970

Loss for the year from discontinued operations (25,181) (304,849)

Profit attributable to owners of the parent 470,809 98,121

Non-controlling interests:

Profit for the year from continuing operations 47,997 41,386

Loss for the year from discontinued operations (24,694) (168,979)

Profit/(loss) attributable to non-controlling interests 23,303 (127,593)

COnsOLidated inCOme statement

For the year ended September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

67forward focused

COnsOLidated inCOme statement

2012 2011 $ $

Earnings per share from continuing and discontinued operations

attributable to the owners of the parent during

the year (expressed in TT$ per share)

Basic earnings/(loss) per share

- from continuing operations 5.13 4.17

- from discontinued operations (0.26) (3.15)

4.87 1.02

Diluted earnings/(loss) per share

- from continuing operations 5.13 4.17

- from discontinued operations (0.26) (3.15)

4.87 1.02

Dividends per share 1.50 1.29

Dividends paid per share 1.31 1.29

68 2012

2012 2011 $ $

Profit/(loss) for the year 494,112 (29,472)

Other comprehensive income:

Available for sale financial assets (3,220) (39)

Actuarial (losses)/gains on defined benefit pension plans (4,563) 23,431

Currency translation differences (8,694) 10,700

Other comprehensive (loss)/income for the year (16,477) 34,092

Total comprehensive income for the year 477,635 4,620

Attributable to:

Owners of the parent 454,604 129,526

Non-controlling interests 23,031 (124,906)

Total comprehensive income for the year 477,635 4,620

COnsOLidated statement Of COmpreHensiVe inCOme

For the year ended September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

69forward focused

Share Other Retained Capital Reserves earnings Total $ $ $ $

Balance at October 1, 2010 538,220 82,639 2 ,376,037 2,996,896

Currency translation differences – 8,013 – 8,013

Other reserve movements – 8,616 1,136 9,752

Net profit not recognised in

Consolidated Income Statement – – 22,272 22,272

Profit attributable to Shareholders – – 98,121 98,121

Employee share option plan

value of employee services 85 – – 85

Issue of shares under stock

option plan 1,876 – – 1,876

Transactions with owners:

Dividends paid – – (129,192) (129,192)

Balance at September 30, 2011 540,181 99,268 2,368,374 3,007,823

Balance at October 1, 2011 540,181 99,268 2,368,374 3,007,823

Currency translation differences – (8,442) – (8,442)

Purchase of minority – (2,670) – (2,670)

Other reserve movements – 34,719 4,544 39,263

Net loss not recognised in

Consolidated Income Statement – – (4,563) (4,563)

Profit attributable to Shareholders – – 470,809 470,809

Issue of shares under stock

option plan 14,307 – – 14,307

Transactions with owners:

Dividends paid – – (131,220) (131,220)

Balance at September 30, 2012 554,488 122,875 2,707,944 3,385,307

COnsOLidated statement Of CHanges in equitY

For the year ended September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

70 2012

2012 2011 $ $

Cash flows from operating activities

Operating profit before income tax 747,674 599,072

Operating loss from discontinued operations before tax (49,875) (53,422)

Adjustments for:

Dividends received from associated companies 7,876 24,256

Depreciation and impairment of property, plant and equipment,

investment property and held for sale assets 222,379 237,092

Impairment of goodwill 12,135 11,037

Amortisation of other intangible assets 2,581 69

Gain on sale of property, plant and equipment and investment property (41,453) (33,018)

Increase in provision for installment credit and other loans 1,874 3,374

Decrease in market value of investments 12,998 2,243

Employee share option scheme provision – 85

Employee retirement and other benefits (1,590) 5,460

Earnings before interest, tax, depreciation and amortisation 914,599 796,248

Other movements – 10,445

Changes in working capital:

Decrease/(increase) in inventories 43,753 (224,540)

Increase in trade and other receivables (685) (44,004)

(Increase)/decrease in installment credit and other loans (1,268) 27,922

(Decrease)/increase in trade and other payables (77,263) 196,615

Decrease in customers’ deposits (9,324) (70,689)

Cash generated from operations 869,812 691,997

Taxation paid (171,706) (170,459)

Net cash provided by operating activities 698,106 521,538

Cash flows from investing activities

Proceeds from sale of property, plant and equipment,

investment property and held for sale assets 80,633 78,679

Proceeds from sale of other investments 27,861 31,782

Additions to property, plant and equipment,

investment property and held for sale assets (374,444) (238,224)

Net increase in other investments, other intangibles, non-controlling interests

and investments in associated companies and joint ventures (35,613) (151,130)

Net cash used in investing activities (301,563) (278,893)

COnsOLidated statement Of CasH fLOWs

For the year ended September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

71forward focused

2012 2011 $ $

Cash flows from financing activities

Proceeds from borrowings 161,790 63,455

Repayments of borrowings (209,928) (81,384)

Proceeds from issue of shares 14,307 1,876

Dividends paid to Company’s shareholders (131,220) (129,192)

Dividends paid to non-controlling interests (47,472) (36,712)

Net cash used in financing activities (212,523) (181,957)

Net increase in cash, cash equivalents 184,020 60,688

Cash, cash equivalents and bank overdrafts

at beginning of the year 1,110,972 1,046,599

Effects of exchange rate changes on cash

and bank overdrafts (1,345) 3,685

Cash, cash equivalents and bank overdrafts

at the end of the year 1,293,647 1,110,972

Cash and short term funds 1,316,490 1,131,500

Bank overdrafts and other short term borrowings (22,843) (20,528)

1,293,647 1,110,972

Cash and short term funds

Continuing operations 1,304,737 1,123,142

Transfered to disposal group classified as held for sale 11,753 8,358

1,316,490 1,131,500

72 2012

1 GENERAL INfoRMATIoN

Neal & Massy Holdings Limited (the ‘Company’), was incorporated in the Republic of Trinidad and Tobago in 1923. The address of

its registered office is 63 Park Street, Port of Spain, Trinidad. The Company and its subsidiaries, (together, the Group) are engaged in

trading, manufacturing, service industries and finance in Trinidad and Tobago and the wider Caribbean region. The Company has a

primary listing on the Trinidad and Tobago Stock Exchange. These consolidated financial statements were authorised for issue by the

Board of Directors on December 20, 2012.

2 BASIS of PREPARATIoN

The summary Consolidated Financial Statements have been prepared by presenting the Consolidated Statement of Financial Position,

Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Changes in Equity and Cash Flows exactly

as presented in the full set of Consolidated Financial Statements which were prepared in accordance with International Financial

Reporting Standards for the year ended September 30, 2012. The Consolidated Financial Statements have been prepared under the

historical cost convention as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities

(including derivative instruments) at fair value through profit or loss. The summary Consolidated Financial Statements do not include

the accounting policies and the notes that are contained in the full audited Consolidated Financial Statements. The accounting

policies have been consistently applied to all the years presented.

3 DISPoSAL GRoUP CLASSIfIED AS HELD foR SALE

For 2012, the results and financial position of the following subsidiaries are presented as discontinued operations or held for sale:

Almond Resorts Inc

Casuarina Holdings Inc

4 SEGMENT INfoRMATIoN

The Chief Operating Decision Maker (CODM) is the Chief Executive Officer (CEO). Management has determined the operating

segments based on the reports reviewed by the CEO and the Board of Neal & Massy Holdings Limited.

The CEO and the Board considers the business from both a geographic and business unit perspective. Geographically, management

considers the performance of operating companies in Trinidad and Tobago, Barbados, Guyana and Jamaica.

For the financial year 2012, the operating companies within the Group have been restructured. These changes resulted in a change

in the operating segments from 2011.

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

73forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

4 SEGMENT INfoRMATIoN (continued)

At September 30, 2012, the Group is organised into six main business segments:

1 Automotive and Industrial Equipment;

2 Energy and Industrial Gases;

3 Integrated Retail;

4 Insurance;

5 Information Technology and Communications (ITC);

6 Other Investments

The CEO and the Board assesses the performance of the operating segments based on a measure of profit before tax, profit after tax

and asset utilisation.

Automotive and Industrial Equipment

This segment derives its revenue mainly from the sale of new and used vehicles, spare parts and industrial equipment and also

includes the manufacturing and sale of pre-stressed concrete products and the installation of deep foundations.

Energy and Industrial Gases

This segment derives its revenue from the sale of gas and the provision of electrical, instrumentation and construction services for

offshore platforms. Revenue is also generated from the supply of technical resources, valve services and technical equipment to the

energy-based industries in Trinidad and Tobago and the region.

Integrated Retail

This segment derives its revenue mainly from the sale of retail foods, general merchandise and distribution and logistics operations.

It also includes a financing company that accepts deposits for fixed terms and grants instalment credit secured on specific equipment

and goods, mortgage loans and undertakes insurance premium financing and leasing.

Insurance

This segment includes our insurance company, called United Insurance Company Limited. The Company acts as a primary insurer

for property, motor, liability and marine risk within the Caribbean region.

ITC

This segment derives its revenue mainly from the sale and rental of technology-based solutions, office interiors and the provision of

long-distance communications.

other Investments

This segment earns revenue from property management and other services.

74 2012

4 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

The

Gro

up’s

retir

emen

t be

nefit

ass

ets

are

deem

ed u

nallo

cate

d an

d ar

e no

t co

nsid

ered

to

be s

egm

ent

asse

ts b

ut r

athe

r ar

e m

anag

ed b

y he

ad o

ffice

. The

am

ount

is

incl

uded

in t

he “

Hea

d O

ffice

and

Oth

er A

djus

tmen

ts”

segm

ent.

The

segm

ent

resu

lts f

or t

he y

ear

ende

d Se

ptem

ber

30, 2

012

as f

ollo

ws:

A

uto

mo

tive

En

erg

y an

d

Hea

d o

ffice

an

d In

du

stri

al

Inte

gra

ted

Ind

ust

rial

oth

er

and

oth

er

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

Ad

just

men

ts

Tota

l

$ $

$ $

$

$ $

$

Co

nti

nu

ing

op

erat

ion

s:

Gro

up R

even

ue

2,

007,

388

5,

462,

698

26

0,35

2

798,

828

58

7,85

7

609,

426

1,

695

9,

728,

244

Inte

r-se

gmen

t re

venu

e

(9

3,94

1)

(347

,243

) –

(9

,134

) (3

6,94

6)

(92,

797)

(1

,695

) (5

81,7

56)

Third

par

ty r

even

ue

1,

913,

447

5,

115,

455

26

0,35

2

789,

694

55

0,91

1

516,

629

–

9,

146,

488

Ope

ratin

g pr

ofit/

(loss

)

se

gmen

t re

sult

20

6,77

1

321,

878

(5

,437

) 17

4,49

9

80,1

53

119,

107

(1

03,1

90)

793,

781

Fina

nce

cost

s –

Net

(12,

512)

(1

5,92

7)

31,8

14

456

(5

10)

(4,5

47)

(44,

881)

(4

6,10

7)

194,

259

30

5,95

1

26,3

77

174,

955

79

,643

11

4,56

0

(148

,071

) 7

47,6

74

Shar

e of

res

ults

of

asso

ciat

es

an

d jo

int

vent

ures

bef

ore

tax

1,

083

5,

882

–

36

,317

(4

43)

11,3

36

–

5

4,17

5

Pro

fit/

(lo

ss)

bef

ore

inco

me

tax

195,

342

31

1,83

3

26,3

77

211,

272

79

,200

12

5,89

6

(148

,071

)

801

,849

Taxa

tion

(5

5,66

8)

(69,

479)

(8

,163

) (8

8,69

5)

(21,

943)

(2

2,19

6)

8,28

2

(2

57,8

62)

Pro

fit/

(lo

ss)

for

the

year

139,

674

24

2,35

4

18,2

14

122,

577

57

,257

10

3,70

0

(1

39,7

89)

5

43,9

87

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

75forward focused

4 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

The

seg

men

t as

sets

and

liab

ilitie

s at

Sep

tem

ber

30, 2

012

and

capi

tal e

xpen

ditu

re f

or t

he y

ear

then

end

ed a

re a

s fo

llow

s:

A

uto

mo

tive

En

erg

y an

d

Hea

d o

ffice

and

Ind

ust

rial

In

teg

rate

d

In

du

stri

al

o

ther

an

d o

ther

H

eld

fo

r

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

Ad

just

men

ts

Sub

-to

tal

Sale

To

tal

$

$ $

$

$ $

$ $

$ $

Tota

l ass

ets

1,04

2,28

4 2

,267

,346

1,

338,

147

688,

239

368,

109

1,45

7,05

1 69

7,78

5 7,

858,

961

590,

743

8,4

49,7

04

Ass

ocia

tes

and

jo

int

vent

ures

5,62

1 39

,627

29

1 11

3,49

6 2,

386

245,

344

– 40

6,76

5 –

406,

765

Tota

l lia

bilit

ies

4

85,7

01

1,01

9,60

8 94

7,92

8 23

2,00

7 19

5,33

1 32

7,07

9 1,

229,

069

4,43

6,72

3 49

1,91

3 4,

928,

636

Cap

ital e

xpen

ditu

re

1

53,6

45

135,

213

5,51

6 32

,593

26

,020

13

,564

1,

570

368,

121

6,32

3 37

4,44

4

Oth

er s

egm

ent

item

s in

clud

ed in

the

con

solid

ated

inco

me

stat

emen

t ar

e as

fol

low

s:

Dep

reci

atio

n an

d

im

pairm

ent

74,

941

51,6

86

6,69

0 2

2,31

2 28

,430

15

,948

2,

544

202

,551

19

,828

22

2,37

9

Impa

irmen

t of

goo

dwill

10

,603

1,

431

101

– –

–

– 12

,135

–

12

,135

nOtes tO tHe summarY COnsOLidated finanCiaL statements

76 2012

4 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Th

e se

gmen

t re

sults

for

the

yea

r en

ded

Sept

embe

r 30

, 201

1 ar

e as

fol

low

s:

A

uto

mo

tive

En

erg

y an

d

Hea

d o

ffice

an

d In

du

stri

al

Inte

gra

ted

Ind

ust

rial

oth

er

and

oth

er

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

Ad

just

men

ts

Tota

l

$ $

$ $

$

$ $

$

Co

nti

nu

ing

op

erat

ion

s:

Gro

up R

even

ue

1,62

4,42

6

5,1

63,8

71

2

88,2

13

765

,537

597,

530

5

82,4

49

1,

696

9,02

3,72

2

Inte

r-se

gmen

t re

venu

e

(85,

248)

(329

,355

) -

(7,0

49)

(

25,1

45)

(7

7,88

8)

(1,6

96)

(5

26,3

81)

Third

par

ty r

even

ue

1,53

9,17

8

4,8

34,5

16

2

88,2

13

758

,488

572,

385

5

04,5

61

-

8

,497

,341

Ope

ratin

g pr

ofit/

(loss

)

se

gmen

t re

sult

172,

540

308

,750

(5

4,66

7)

170

,794

76,

055

86,

091

(112

,685

)

646

,878

Fina

nce

cost

s –

Net

(9,1

40)

(12,

164)

3

1,07

1

(245

)

(779

)

(4

,578

)

(5

1,97

1)

(47,

806)

163,

400

296,

586

(23,

596)

17

0,54

9 75

,276

81

,513

(1

64,6

56)

5

99,0

72

Shar

e of

res

ults

of

asso

ciat

es a

nd

jo

int

vent

ures

bef

ore

tax

85

1 6,

778

- 31

,377

-

1,57

2 -

40,5

78

Profi

t/(lo

ss) b

efor

e in

com

e ta

x

164,

251

303

,364

(2

3,59

6)

201

,926

75,

276

83,

085

(164

,656

)

639

,650

Taxa

tion

(4

6,45

6)

(

69,9

43)

(8,

172)

(

56,9

58)

(1

6,64

7)

(1

6,06

8)

18,9

50

(1

95,2

94)

Profi

t/(lo

ss) f

or t

he y

ear

117,

795

233

,421

(3

1,76

8)

144

,968

58,

629

67,

017

(145

,706

)

444

,356

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

77forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements4

SEG

MEN

T IN

foR

MA

TIo

N (c

ontin

ued)

T

he s

egm

ent

asse

ts a

nd li

abili

ties

at S

epte

mbe

r 30

, 201

1 an

d ca

pita

l exp

endi

ture

for

the

yea

r th

en e

nded

are

as

follo

ws:

A

uto

mo

tive

En

erg

y an

d

Hea

d o

ffice

an

d In

du

stri

al

Inte

gra

ted

Ind

ust

rial

oth

er

and

oth

er

Hel

d f

or

Eq

uip

men

t R

etai

l In

sura

nce

G

ases

IT

C

Inve

stm

ents

A

dju

stm

ents

Su

b-t

ota

l Sa

le

Tota

l

$ $

$ $

$

$ $

$ $

$

Tota

l ass

ets

1,00

3,58

3 2,

311,

680

1,41

3,49

2 64

4,53

8 38

0,11

7 1

,334

,429

41

8,76

1 7,

506,

600

703,

658

8,

210,

258

Ass

ocia

tes

and

jo

int

vent

ures

4

,845

37

,644

29

1 11

5,10

6 -

24

7,49

2 -

40

5,37

8 -

40

5,37

8

Tota

l lia

bilit

ies

452,

069

1,02

8,79

2 96

2,90

0 18

2,47

7 17

5,76

3 31

6,73

4 1,

301,

416

4,42

0,15

1 5

63,2

22

4,98

3,37

3

Cap

ital e

xpen

ditu

re

95,1

43

56,3

98

2,74

0 36

,553

26

,093

7,

581

2,9

47

227,

455

10,7

69

238,

224

Oth

er s

egm

ent

item

s in

clud

ed in

the

con

solid

ated

inco

me

stat

emen

t ar

e as

fol

low

s:

Dep

reci

atio

n an

d

im

pairm

ent

67,5

18

56,4

36

4,18

1 19

,022

2

8,25

3 34

,415

3,

196

213,

021

24,0

71

237,

092

Impa

irmen

t of

goo

dwill

8

,431

1,

431

199

106

-

870

-

11,0

37

-

11,0

37

78 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

4 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Inte

r-se

gmen

t tr

ansf

ers

or t

rans

actio

ns a

re e

nter

ed in

to u

nder

the

nor

mal

com

mer

cial

ter

ms

and

cond

ition

s th

at w

ould

als

o be

ava

ilabl

e to

thi

rd p

artie

s.

Cap

ital e

xpen

ditu

re c

ompr

ises

add

ition

s to

pro

pert

y, p

lant

and

equ

ipm

ent,

inve

stm

ent

prop

erty

and

hel

d fo

r sa

le a

sset

s.

The

Gro

up’s

six

busi

ness

seg

men

ts o

pera

te in

fou

r m

ain

geog

raph

ical

are

as, e

ven

thou

gh t

hey

are

man

aged

on

a re

gion

al b

asis

.

The

mai

n op

erat

ions

occ

ur in

the

hom

e co

untr

y of

the

Com

pany

. Th

e ar

eas

of o

pera

tion

are

prin

cipa

lly t

radi

ng, m

anuf

actu

ring,

ser

vice

indu

strie

s an

d fin

ance

.

Th

ird

par

ty r

even

ue

Pro

fit

Bef

ore

Tax

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2

011

201

2 20

11

2012

20

11

2012

20

11

$

$

$

$ $

$

$ $

Co

nti

nu

ing

o

per

atio

ns:

Trin

idad

and

Tob

ago

5,02

6,00

6 4,

488,

117

575,

501

522,

314

3,51

8,14

6 3,

212,

337

277,

082

163,

340

Barb

ados

2,68

0,57

3

2,6

49,0

66

217,

436

125

,575

3,

327,

871

3,4

28,2

23

43,

854

42,0

38

Guy

ana

7

66,1

77

687,

378

103,

159

92,

074

392,

916

330,

275

21,

152

8,87

8

Jam

aica

662

,788

659

,167

4

8,61

5 5

7,70

8 39

1,42

9 3

56,7

82

25,7

25

12,4

85

Oth

er

10,

944

13

,613

5,

815

7,73

1 22

8,59

9 17

8,98

3 3

08

715

Hea

d O

ffice

and

Oth

er

– –

(148

,677

)

(165

,752

) –

– –

–

9,

146,

488

8

,497

,341

80

1,84

9

6

39,6

50

7,85

8,96

1 7,

506,

600

368,

121

227,

456

Tran

sfer

red

to

dis

po

sal g

rou

p c

lass

ified

as

hel

d f

or

sale

:

– 1,

070

– –

Barb

ados

59

0,74

3 7

02,5

88

6,3

23

10,7

68

59

0,74

3 7

03,6

58

6,32

3 10

,768

Tota

l

8,

449,

704

8,21

0,25

8 37

4,44

4 23

8,22

4

79forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

4 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Inte

r-se

gmen

t tr

ansf

ers

or t

rans

actio

ns a

re e

nter

ed in

to u

nder

the

nor

mal

com

mer

cial

ter

ms

and

cond

ition

s th

at w

ould

als

o be

ava

ilabl

e to

thi

rd p

artie

s.

Cap

ital e

xpen

ditu

re c

ompr

ises

add

ition

s to

pro

pert

y, p

lant

and

equ

ipm

ent,

inve

stm

ent

prop

erty

and

hel

d fo

r sa

le a

sset

s.

The

Gro

up’s

six

busi

ness

seg

men

ts o

pera

te in

fou

r m

ain

geog

raph

ical

are

as, e

ven

thou

gh t

hey

are

man

aged

on

a re

gion

al b

asis

.

The

mai

n op

erat

ions

occ

ur in

the

hom

e co

untr

y of

the

Com

pany

. Th

e ar

eas

of o

pera

tion

are

prin

cipa

lly t

radi

ng, m

anuf

actu

ring,

ser

vice

indu

strie

s an

d fin

ance

.

Th

ird

par

ty r

even

ue

Pro

fit

Bef

ore

Tax

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2

011

201

2 20

11

2012

20

11

2012

20

11

$

$

$

$ $

$

$ $

Co

nti

nu

ing

o

per

atio

ns:

Trin

idad

and

Tob

ago

5,02

6,00

6 4,

488,

117

575,

501

522,

314

3,51

8,14

6 3,

212,

337

277,

082

163,

340

Barb

ados

2,68

0,57

3

2,6

49,0

66

217,

436

125

,575

3,

327,

871

3,4

28,2

23

43,

854

42,0

38

Guy

ana

7

66,1

77

687,

378

103,

159

92,

074

392,

916

330,

275

21,

152

8,87

8

Jam

aica

662

,788

659

,167

4

8,61

5 5

7,70

8 39

1,42

9 3

56,7

82

25,7

25

12,4

85

Oth

er

10,

944

13

,613

5,

815

7,73

1 22

8,59

9 17

8,98

3 3

08

715

Hea

d O

ffice

and

Oth

er

– –

(148

,677

)

(165

,752

) –

– –

–

9,

146,

488

8

,497

,341

80

1,84

9

6

39,6

50

7,85

8,96

1 7,

506,

600

368,

121

227,

456

Tran

sfer

red

to

dis

po

sal g

rou

p c

lass

ified

as

hel

d f

or

sale

:

– 1,

070

– –

Barb

ados

59

0,74

3 7

02,5

88

6,3

23

10,7

68

59

0,74

3 7

03,6

58

6,32

3 10

,768

Tota

l

8,

449,

704

8,21

0,25

8 37

4,44

4 23

8,22

4

80 2012

81forward focused

82 2012

83forward focused

84 2012

1 GENERAL INfoRMATIoN

Neal & Massy Holdings Limited (the ‘Company’), was incorporated in the Republic of Trinidad and Tobago in 1923. The address of

its registered office is 63 Park Street, Port of Spain, Trinidad. The Company and its subsidiaries, (together, the Group) is engaged in

trading, manufacturing, service industries and finance in Trinidad and Tobago and the wider Caribbean region. The Company has a

primary listing on the Trinidad and Tobago Stock Exchange. These consolidated financial statements were authorised for issue by the

Board of Directors on December 18 2012.

The principal subsidiaries are as follows:

Percentage Country of equity capital Incorporation held

Automotive & Industrial Equipment

Neal&MassyAutomotiveLtd TrinidadandTobago 100%

CityMotors(1986)Limited TrinidadandTobago 100%

TracmacEngineeringLimited TrinidadandTobago 100%

AutomotiveComponentsLimited TrinidadandTobago 100%

TobagoServicesLimited TrinidadandTobago 100%

MasterServLimited TrinidadandTobago 100%

AssociatedIndustriesLimited Guyana 100%

Pres-T-ConLimited TrinidadandTobago 84.2%

Energy & Industrial Gases

Neal&MassyEnergyLimited TrinidadandTobago 100%

Neal&MassyEnergyServicesLimited TrinidadandTobago 100%

Neal&MassyEnergyResourcesLimited TrinidadandTobago 100%

NMInsertech(Caribbean)Limited TrinidadandTobago 100%

Neal&MassySupplyChainIntegratorsLimited TrinidadandTobago 51%

IndustrialGasesLimited TrinidadandTobago 57.3%

TrintogasCarbonicsLimited TrinidadandTobago 100%

NMPetrochemicalsServicesLimited TrinidadandTobago 100%

GasProductsLimited Jamaica 100%

DemeraraOxygenCompanyLimited Guyana 92.9%

Integrated Retail

TradingandDistributionLimited TrinidadandTobago 100%

HiloFoodStoresDivision TrinidadandTobago 100%

ArveeFoodMasterLimited TrinidadandTobago 100%

AthabascaLimited TrinidadandTobago 100%

SuperCentreLimited Barbados 100%

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

85forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

1 GENERAL INfoRMATIoN (continued)

The principal subsidiaries are as follows: (continued)

Percentage Country of equity capital Incorporation held

Integrated Retail (continued)

Marketing&DistributionDivision TrinidadandTobago 100%

HugginsShipping&CustomsBrokerageLimited TrinidadandTobago 100%

MelvilleShippingLimited TrinidadandTobago 100%

NMHTrading&Distribution(Jamaica)Limited Jamaica 100%

Trading&DistributionInc Guyana 92.9%

TridentForwardingServicesInc Barbados 100%

SBIDistributionInc Barbados 100%

DacostaDistributionLimited Barbados 100%

DacostaManningsRetailLimited Barbados 100%

BoothSteamshipCompany(B’dos)Limited Barbados 100%

CargoHandlersLimited Barbados 100%

Retail&DistributionInternationalInc St.Lucia 100%

KnightsLimited Barbados 99.9%

N&MRemittanceServicesLimited TrinidadandTobago 100%

GeneralFinanceCorporationLimited TrinidadandTobago 100%

MagnaRewardsInc Barbados 90%

MagnaRewards(Jamaica)Limited Jamaica 51.3%

MagnaRewards(StLucia)Limited StLucia 51.3%

MagnaRewards(Trinidad)Limited TrinidadandTobago 51.3%

MagnaRewardsCaribbeanInc Barbados51.3%

Tourism / Hospitality

AlmondResortsInc Barbados 52%

CasuarinaHoldingsInc(Note2.2) Barbados 49.9%

Information Technology & Communications and other Services

IlluminatTrinidad&TobagoLimited TrinidadandTobago 100%

Illuminat(Antigua)Limited Antigua 100%

Illuminat(Barbados)Limited Barbados 100%

Illuminat(Jamaica)Limited Jamaica 100%

86 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

1 GENERAL INfoRMATIoN (continued)

The principal subsidiaries are as follows: (continued)

Percentage Country of equity capital Incorporation held

Information Technology & Communications and other Services (continued)

CCSGuyanaLimited Guyana 92.9%

ThreeSixtyCommunicationsLimited TrinidadandTobago 75%

NealcoDatalinkLimited TrinidadandTobago 100%

Pereira&CompanyLimited TrinidadandTobago 100%

NMSecuritySolutionsInc Guyana 92.9%

UnitedInsuranceCompanyLimited Barbados 100%

NealcoRealEstateLimited TrinidadandTobago 100%

NealcoPropertiesLimited TrinidadandTobago 100%

PELEnterprisesLimited Barbados 100%

Neal&Massy(Barbados)Limited Barbados 100%

TheInterregionalReinsuranceCoLimited CaymanIslands 100%

S.P.MussonSon&CompanyLimited Barbados 100%

SunsetCrestHoldingsInc Barbados 100%

WarrensRealtyInc Barbados 100%

RobertsManufacturingLimited Barbados 50.5%

T.GeddesGrant(Barbados)Limited Barbados 100%

NMServicesLimited Guyana 92.9%

SeawellAirServicesLimited Barbados 100%

BCBCommunicationsInc Barbados 51%

Head office

Neal&MassyLimited TrinidadandTobago 100%

TheBarbadosShipping&TradingCo.Limited Barbados 100%

Neal&MassyGuyanaLimited Guyana 92.9%

87forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies

have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards

(“IFRS”) and IFRIC interpretations. The consolidated financial statements have been prepared under the historical cost convention

as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities (including derivative

instruments) at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also

requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving

a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated

financial statements are disclosed in Note 4.

(a) Standards, amendments and interpretations adopted by the Group

The Group has adopted the following new and amended standards and interpretations as of 1 October 2011:

Amendments to IFRS 7, ‘Financial instruments: Disclosures’ on transfers of assets (effective 1 July 2011). These

amendments arise from the IASB’s review of off- balance-sheet activities. The amendments will promote transparency

in the reporting of transfer transactions and improve users’ understanding of the risk exposures relating to transfers of

financial assets and the effect of those risk on an entity’s financial position, particularly those involving securitisation

of financial assets.

Annual improvements to IFRSs 2010 (effective 1 January 2011). This set of amendments includes changed to six standards

and one IFRIC:

IFRS 1, ‘First time adoption’.

IFRS 3, ‘Business combinations’.

IFRS 7, ‘Financial instruments; Disclosures’.

IAS 1, ‘Presentation of financial statements’.

IAS 27, ‘Separate financial statement’.

IAS 34, ‘Interim financial reporting’.

IFRIC 13,’Customer loyalty programmes’.

Amendment to IFRIC 14, ‘Prepayments of a minimum funding requirement’ (effective 1 January 2011). This amendment

will have a limited impact, as it applies only to entities that are required to make minimum funding contributions to a

defined benefit pension plan. It removes an unintended consequence of IFRIC 14, ‘IAS 19 – The limit on a defined benefit

asset, minimum funding requirements and their interaction’, relating to voluntary pension pre-payments when there

is a minimum funding requirement.

88 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.1 Basis of preparation (continued)

(b) Standards, amendments and interpretations effective for the year but not relevant:

IAS 24 (revised), ‘Related party disclosures’ (effective 1 January 2011). This revised standard removes the requirement

for government related entities to disclose details of all transactions with the government and other government-related

entities and it clarifies and simplifies the definition of a related party.

Amendments of IFRS 1, ‘First time adoption’ on fixed dates and hyperinflation (effective 1 July 2011). These amendments

include two changes to IFRS 1, First-time adoption of IFRS’. The first replaces references to a fixed date of 1 January 2004

with ‘the date of transition of IFRSs’, thus eliminating the need for entities adopting IFRSs for the first time to restate

derecognition transactions that occurred before the date of transition to IFRSs. The second amendment provides guidance

on how and entity should resume presenting financial statements in accordance with IFRSs after a period when the entity

was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.

(c) Standards, amendments and interpretations that are not yet effective for the financial year beginning 1 october

2011 and not early adopted by the Group. The impact of the following standards has not yet been evaluated:

Amendment to IAS 12 ‘Income taxes’ on deferred tax( effective for periods beginning on or after 1 January, 2012). IAS

12, ‘Income taxes’, currently requires an entity to measure the deferred tax relating to an asset depending on whether the

entity expects to recover the carrying amount of the asset through use or sale. It can be difficult and subjective to assess

whether recovery will be through use or through sale when the asset is measured using the fair value model in

IAS 40, ‘ Investment property’. This amendment therefore introduces an exception to the existing principle for the

measurement of deferred tax assets or liabilities arising on investment property measured at fair value. As a result

of the amendments, SIC-21, ‘Income taxes – recovery of revalued non-depreciable assets’, will no longer apply

to investment properties carried at fair value. The amendments also incorporate into IAS 12 the remaining guidance

previously contained in SIC-21, which is withdrawn.

Amendment to IAS 1,‘Financial statement presentation’ regarding other comprehensive Income (effective from periods

beginning on or after 1 July, 2012). The main change resulting from these amendments is a requirement for entities to

group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable

to profit or loss subsequently (reclassification adjustments). The amendments do not address which items are

presented in OCI.

IFRS 9, ‘Financial instruments’ − classification and measurement (effective from periods beginning on or after 1 January,

2015). This standard on classification and measurement of financial assets and financial liabilities will replace IAS 39,

‘Financial instruments: Recognition and measurement’. IFRS 9 has two measurement categories: amortised cost and fair

value. All equity instruments are measured at fair value. A debt instrument is measured at amortised cost only if the

entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. For liabilities,

the standard retains most of the IAS 39 requirements. These include amortised - cost accounting for most

89forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.1 Basis of preparation (continued)

(c) Standards, amendments and interpretations that are not yet effective for the financial year beginning 1 october

2011 and not early adopted by the Group. The impact of the following standards has not yet been evaluated:

(continued)

financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value

option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other

comprehensive income rather than the income statement, unless this creates an accounting mismatch. This change will

mainly affect financial institutions.

IFRS 10, ‘Consolidated financial statements’ (effective from periods beginning on or after 1 January, 2012). This standard

builds on existing principles by identifying the concept of control as the determining factor in whether an

entity should be included within the consolidated financial statements. The standard provides additional guidance

to assist in determining control where this is difficult to assess.

IFRS 11, ‘Joint arrangements’ (effective from periods on or after 1 January, 2013). This standard provides for a more

realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal

form. There are two types of joint arrangement: joint operations and joint ventures. Joint operations arise where a joint

operator has rights to the assets and obligations relating to the arrangement and hence accounts for its interest

in assets, liabilities, revenue and expenses. joint ventures arise where the joint operator has rights to the net assets

of the arrangement and hence equity accounts for its interest. Proportional consolidation of joint ventures is

no longer allowed.

IFRS 12, ‘Disclosures of interests in other entities’ (effective from periods beginning on or after 1 January, 2013).

This standard includes the disclosure requirements for all forms of interests in other entities, including joint

arrangements, associates, special purpose vehicles and other off – balance-

sheet vehicles.

Amendments to IFRS 10, 11 and 12 on transition guidance (effective from periods beginning on or after 1 January,

2013). These amendments also provide additional transition relief in IFRSs 10, 11 and 12, limiting the requirement

to provide adjusted comparative information toonly the preceding comparative period. For disclosures related to

unconsolidated structured entities, the amendments will remove the requirement to present comparative information

for periods before IFRS 12 is first applied.

IFRS 13, ‘Fair value measurement’ (effective from periods beginning on or after 1 January, 2013). This standard aims to

improve consistency and reduce complexity by providing a precise definition of fair value and a single source of

fair value measurement and disclosure requirements for use across IFRSs. The requirements, which are

90 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.1 Basis of preparation (continued)

(c) Standards, amendments and interpretations that are not yet effective for the financial year beginning 1 october

2011 and not early adopted by the Group. The impact of the following standards has not yet been evaluated:

(continued)

largely aligned between IFRSs and US GAAP, do not extend the use of fair value accounting but provide guidance

on how it should be applied where its use is already required or permitted by other standards within IFRS or US GAAP.

IAS 27 (revised 2011). ‘Separate financial statements’ (effective from periods beginning on or after 1 January, 2013).

This standard includes th on separate financial statements that are left after the control provisions of provisions IAS 27

have been included in the new IFRS 10.

IAS 28 (revised 2011). ‘Associates and joint ventures (effective from periods beginning on or after 1 January, 2013).

This standard includes the requirements for joint ventures, as well as associates, to be equity accounted following the

issue of IFRS 11.

Amendment to IFRS 7, ‘Financial instruments: Disclosures’, on offsetting financial assets and financial liabilities. This

amendment reflects the joint IASB and FASB requirements to enhance current offsetting disclosures. These new disclosures

are intended to facilitate comparison between those entities that prepare IFRS financial statements and those that prepare

US GAAP financial statements.

Amendment to IAS 32, ‘Financial instruments: Presentation’, on offsetting financial assets and financial liabilities (effective

from periods beginning on or after 1 January, 2013). This amendment updates the application guidance in IAS 32,

‘Financial instruments: Presentation’, to clarify some of the requirements for offsetting financial assets and financial

liabilities on the balance sheet.

Amendment to IFRS 1, ‘First time adoption’, on government loans (effective from periods beginning on or after 1 January,

2013). This amendment addresses how a first-time adopter would account for a government loan with a below-market rate

of interest when transitioning to IFRS. It also adds an exception to the retrospective application of IFRS, which provides

the same relief to first-time adopters granted to existing preparers of IFRS financial statements when the requirement

was incorporated into IAS 20 in 2008.

91forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.2 Consolidation

(a) Subsidiaries

Subsidiaries are all entities over which the Group has power to govern the financial and operating policies generally

accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting

rights that are currently exercisable or convertible are considered when assessing whether the Group controls another

entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-

consolidated from the date that control ceases.

The Group uses the acquisition method of accounting to account for business combinations. The consideration

transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the

equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting

from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets

acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair

values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in

the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.

Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration

arising from contingent consideration amendments. Cost also includes direct attributable costs of investment.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the

acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the

identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary

acquired in the case of a bargain purchase, the difference is recognised directly in the statement of comprehensive

income.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated.

Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure

consistency with the policies adopted by the Group.

AlthoughtheGrouphasonlya49.9%effectiveownershipinterestinacompany,thisentityistreatedasasubsidiary,

as the Group is able to govern the financial and operating policies of the company by virtue of an agreement with the

other investors.

(b) Transactions with non-controlling interests

The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For

purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired

of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling

interests are also recorded in equity.

When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to

its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount

for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In

addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as

92 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.2 Consolidation (continued)

(b) Transactions with non-controlling interests (continued)

if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in

other comprehensive income are reclassified to profit or loss.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of

the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.

(c) Associates and Joint ventures

Associates are all entities over which the Group has significant influence but not control, generally accompanying a

shareholdingofbetween20%and50%ofthevotingrights.Investmentsinassociatesareaccountedforusingtheequity

method of accounting and are initially recognised at cost. The Group’s investment in associates includes goodwill (net of

any accumulated impairment loss) identified on acquisition.

The Group’s share of its associates’ post acquisition profits or losses is recognised in the consolidated income statement,

and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition

movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate

equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise

further losses, unless it has incurred obligations or made payments on behalf of the associate. Joint ventures are also

accounted for using the equity method. The Group discontinues the use of the equity method from the date on which it

ceases to have joint control over, or have significant influence in, a jointly controlled entity.

Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent

of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of

an impairment of the asset transferred. Accounting policies of associates and joint ventures have been changed where

necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising in investments in associates are recognised in the consolidated income statement.

2.3 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-

maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the

operating segments, has been identified as the Chief Executive Officer who makes strategic decisions.

2.4 foreign currency translation

(a) functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary

economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are

presented in Trinidad and Tobago dollars, which is the Group’s presentation currency.

93forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.4 foreign currency translation (continued)

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates

of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the

translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised

in the consolidated income statement.

Translation differences on non-monetary financial assets and liabilities, such as equities held at fair value through profit

or loss are recognised as part of the fair value gain or loss. Translation differences on non-monetary items such as equities

classified as available-for-sale financial assets are included in other reserves in equity.

Translation differences on debt securities and other monetary financial assets measured at fair value are included in

foreign exchange gains and losses.

(c) Group companies

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)

that have a functional currency different from the presentation currency are translated into the presentation currency as

follows:

i) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date

of that statement of financial position;

ii) income and expenses for each income statement are translated at average exchange rates (unless this average is not

a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case

income and expenses are translated at the dates of the transactions); and

iii) all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations,

and of borrowings and other currency instruments designated as hedges of such investments, are taken to other

comprehensive income. When a foreign operation is sold, exchange differences that were recorded in equity are

recognised in the consolidated income statement as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities

of the foreign entity and translated at the closing rate.

2.5 Property, plant and equipment

Property, plant and equipment including land and buildings are stated at historical cost less depreciation. Historical cost includes

expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when

it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be

measured reliably. The carrying amount of the replaced part is de-recognised. All other repairs and maintenance are charged to

the consolidated income statement during the financial period in which they are incurred.

94 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.5 Property, plant and equipment (continued)

Interest costs on borrowings to finance the construction of property, plant and equipment are capitalised during the period of

time that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed.

Land is not depreciated.

Depreciation is provided on the straight-line basis at rates estimated to write-off the cost of each asset over its expected useful

life. In the case of motor vehicles, depreciation is based on cost less an estimated residual value. The estimated useful lives of

assets are reviewed periodically, taking account of commercial and technological obsolescence as well as normal wear and tear,

and depreciation rates are adjusted if appropriate.

Current rates of depreciation are:

Freeholdproperty - 2%

Leaseholdpropertyandimprovements - 2%to20%

Plantandequipment - 5%to33.3%

Rentalassets - 25%

Furnitureandfixtures - 10%to25%

Motorvehicles - 10%to25%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position

date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater

than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in the

consolidated income statement.

2.6 Investment property

Investment property, principally comprising freehold office buildings, is held for long-term rental yields and is not occupied by

the Group.

Investment properties are stated at amortised cost. Transaction costs are included on initial measurement. The fair values

of investment properties are disclosed in Note 7. These are assessed using internationally accepted valuation methods, such

as taking comparable properties as a guide to current market prices or by applying the discounted cash flow method. Like

property, plant and equipment, investment properties are depreciated using the straight-line method.

Thecurrentrateofdepreciationis2%.

Investment and development properties are owned or leased by the Group and held for long-term rental income and capital

appreciation and exclude properties occupied by the Group.

95forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.6 Investment property (continued)

Investment properties cease recognition as investment property either when they have been disposed of or when they are

permanently withdrawn from use and no future economic benefit is expected from their disposal. Gains or losses arising from

the retirement or disposal of investment property shall be determined as the difference between the net disposal proceeds and

the carrying amount of the asset and shall be recognised in the consolidated income statement in the period of the retirement

or disposal.

2.7 Intangible assets

a) Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable

assets of the acquired subsidiary/associate at the date of acquisition. Goodwill represents the goodwill acquired on

acquisition of subsidiaries. Goodwill on acquisition of associates is included in ‘Investments in Associates’. Separately

recognised goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment

losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill

relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those

cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in

which the goodwill arose. Neal & Massy Holdings Limited allocates goodwill to each business segment in each country in

which it operates (Note 8).

b) Computer Software

Costs associated with the maintenance of existing computer software programmes are expensed as incurred. Development

costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the

Group are recognised as intangible assets when the following criteria are met:

• itistechnicallyfeasibletocompletethesoftwareproductsothatitwillbeavailableforuse;

• managementintendstocompletethesoftwareproductanduseorsellit;

• thereisanabilitytouseorsellthesoftwareproduct;

• itcanbedemonstratedhowthesoftwareproductwillgenerateprobablefutureeconomicbenefits;

• adequate technical, financial and other resources to complete the development and to use or sell the software

product are available; and

• theexpenditureattributabletothesoftwareproductduringitsdevelopmentcanbereliablymeasured.

Directly attributable costs that are capitalised as part of the software product include the software development

employee costs and an appropriate portion of relevant overheads.

96 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.7 Intangible assets (continued)

b) Computer Software (continued)

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development

costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Computer software development costs recognised as assets are amortised over their estimated useful lives, which do

not exceed three years.

c) Brands

Brands acquired in a business combination are recognised at fair value at the acquisition date, and are being amortised

over seven to twenty years.

2.8 Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are

subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying

amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds

its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the

purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows

(cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal

of the impairment at each reporting date.

2.9 Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered

principally through a sale transaction and the sale is considered highly probable. They are stated at the lower of carrying amount

and fair value less costs to sell if their carrying amount is to be recovered principally through a sale transaction rather than

through continuing use and the sale is considered highly probable.

2.10 financial assets

Classification

The Group classifies its financial assets in the following categories: financial assets at fair value through profit or loss, loans and

receivables, held-to-maturity and available-for-sale. The classification depends on the purpose for which the financial assets

were acquired. Management determines the classification of its financial assets at initial recognition.

97forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.10 financial assets (continued)

a) financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit or

loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short

term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated

as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be

realised within 12 months of the statement of financial position date.

b) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an

active market. They are included in current assets, except for maturities greater than 12 months after the statement of

financial position date. These are classified as non-current assets. Loans and receivables are classified as ‘trade and other

receivables’ and ‘instalment credit and other loans’ in the consolidated statement of financial position.

Instalment credit and other loans are stated at principal outstanding net of unearned finance charges and specific

allowance for loan losses.

Interest from instalment credit is recognised as it accrues on the amortised rate of the reducing balance amount at

the annual percentage rate. Interest earned on other forms of financing is calculated as is appropriate to individual

transactions.

c) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of

the other categories. They are included in non-current assets unless management intends to dispose of the investment

within 12 months of the statement of financial position date.

d) Held-to-maturity financial assets

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed

maturities that the Group’s management has the positive intention and ability to hold to maturity. Held-to-maturity

financial assets are included in non-current assets.

e) Recognition and measurement

Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group commits to

purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not

carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised

at fair value and transaction costs are expensed in the consolidated income statement.

98 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.10 financial assets (continued)

e) Recognition and measurement (continued)

Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair

value. Unlisted equity securities for which fair values cannot be reliably measured have been recognised at cost less

impairment. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective

interest method.

Financial assets are de-recognised when the rights to receive cash flows from the investments have expired or have

been transferred and the Group has transferred substantially all risks and rewards of ownership.

Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category

are presented in the income statement within ‘other (losses)/gains – net’ in the period in which they arise. Dividend

income from financial assets at fair value through profit or loss is recognised in the income statement as part of other

income when the Group’s right to receive payments is established.

Changes in the fair value of monetary and non-monetary securities classified as available for sale are recognised in

other comprehensive income.

When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised

in equity are included in the consolidated income statement as ‘gains and losses from investment securities’. Interest

on available-for-sale securities calculated using the effective interest method is recognised in the consolidated income

statement. Dividends on available-for-sale equity instruments are recognised in the consolidated income statement when

the Group’s right to receive payments is established.

f) Impairment of financial assets

Assets carried at amortised cost

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or

group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are

incurred only if there is objective evidence of impairment, as a result of one or more events that occurred after the initial

recognition of the asset (a ‘loss event’), and that loss event (or events) has an impact on the estimated future cash flows

of the financial asset or group of financial assets that can be reliably estimated.

The criteria that the Group uses to determine that there is objective evidence of an impairment loss include:

• significantfinancialdifficultyoftheissuerorobligor;

• abreachofcontract,suchasadefaultordelinquencyininterestorprincipalpayments;

• theGroup,foreconomicorlegalreasonsrelatingtotheborrower’sfinancialdifficulty,grantingtotheborrowera

concession that the lender would not otherwise consider;

• itbecomesprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;

• thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties;or

99forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.10 financial assets (continued)

f) Impairment of financial assets (continued)

• observabledataindicatingthatthereisameasurabledecreaseintheestimatedfuturecashflowsfromaportfolioof

financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the

individual financial assets in the portfolio, including:

(i) adverse changes in the payment status of borrowers in the portfolio; and

(ii) national or local economic conditions that correlate with defaults on the assets in the portfolio.

The Group first assesses whether objective evidence of impairment exists.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s

carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been

incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and

the amount of the loss is recognised in the consolidated income statement. If a loan or held-to-maturity investment has a

variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined

under the contract. The Group may measure impairment on the basis of an instrument’s fair value using an observable

market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively

to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the

reversal of the previously recognised impairment loss is recognised in the consolidated income statement.

Assets classified as available for sale

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a

group of financial assets is impaired. For debt securities, the Group uses the criteria referred to in (c) above. In the case of

equity investments classified as available for sale, a significant or prolonged decline in the fair value of the security below

its cost is also evidence that the assets are impaired. If any such evidence exists for available-for-sale financial assets, the

cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment

loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the separate

consolidated income statement. Impairment losses recognised in the separate consolidated income statement on equity

instruments are not reversed through the separate consolidated income statement. If, in a subsequent period, the fair

value of a debt instrument classified as available for sale increases and the increase can be objectively related to an

event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed through the

consolidated income statement.

Impairment testing of trade receivables is described in note 2.12.

100 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.11 Inventories

Inventories are stated at the lower of cost or net realisable value. Cost is determined using the first-in, first-out (‘FIFO’) or the

weighted average cost method. The cost of finished goods and work in progress comprise raw materials, direct labour, other

direct costs and related production overheads, but excludes interest expense. Net realisable value is the estimate of the selling

price in the ordinary course of business, less the costs of completion and selling expenses.

2.12 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest

method, less provision for impairment.

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course

of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are

classified as current assets. If not, they are presented as non-current assets.

A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be

able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor,

probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are

considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset’s

carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of

the provision is recognised in the consolidated income statement within ‘selling, general and administrative expenses’.

2.13 Cash and cash equivalents

In the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with

banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the

consolidated statement of financial position, bank overdrafts are shown within borrowings in current liabilities.

2.14 Share capital and reserves

Ordinary shares with discretionary dividends are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,

from the proceeds.

Where any Group company purchases the company’s equity share capital (treasury shares), the consideration paid, including

any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the company’s equity

holders until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration

received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity

attributable to the company’s equity holders.

101forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.15 Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal

operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest

method.

2.16 Insurance

(i) Insurance and reinsurance contracts

Insurance and reinsurance contracts are defined as those containing significant insurance risk at the inception of the

contract, or those where at the inception of the contract there is a scenario with commercial substance where the level

of insurance risk may be significant. The significance of insurance risk is dependent on both the probability of an insured

event and the magnitude of its potential effect. Once a contract has been classified as an insurance contract, it remains

an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during the period.

In the normal course of business, the Group seeks to reduce the losses to which it is exposed that may cause

unfavourable underwriting results by re-insuring a certain level of risk with reinsurance companies. Reinsurance premiums

are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the

reinsurance contracts. The Group may receive a ceding commission in connection with ceded reinsurance, which is earned

as incurred.

Reinsurance contracts ceded do not relieve the Group from its obligations to policyholders. The Group remains liable to

its policyholders for the portion re-insured, to the extent that the reinsurers do not meet the obligations assumed under

the reinsurance agreements.

(ii) Amounts receivable from reinsurance companies

Included in accounts receivable on the statement of financial position, are amounts receivable from reinsurance companies,

which consist primarily of amounts due in respect of ceded insurance liabilities. Recoverable amounts are estimated in

a manner consistent with the outstanding claims reserve or settled claims associated with the re-insured policies and in

accordance with the relevant reinsurance contract.

If amounts receivable from reinsurance companies are impaired, the Group reduces the carrying amount accordingly

and recognises an impairment loss in the consolidated income statement. A reinsurance asset is impaired if there is

objective evidence that the Group may not receive all, or part, of the amounts due to it under the terms of the reinsurance

contract.

102 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.17 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at

amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the

consolidated income statement over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability

for at least 12 months after the statement of financial position date.

2.18 Current and deferred income tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also

recognised in other comprehensive income or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement

of financial position date in the countries where the Group’s subsidiaries, associates and joint ventures operate and generate

taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable

tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to

be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases

of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax

is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination

that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined

using tax rates (and laws) that have been enacted or substantially enacted by the statement of financial position date and are

expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available

against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates and joint

ventures, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that

the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets

against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same

taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances

on a net basis.

The principal temporary differences arise from depreciation on property, plant and equipment, retirement benefits and tax

losses carried forward. Deferred tax assets relating to the carrying forward of unused tax losses are recognised to the extent

that it is probable that future taxable profit will be earned against which the unused tax losses can be utilised.

103forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.19 Employee benefits

(a) Pension obligations

Group companies operate various pension plans. The majority of the Trinidad and Tobago resident employees are members

of either the Neal & Massy Group Pension Fund Plan, the Retirement Income Security Plan or the T. Geddes Grant Limited

Pension Fund Plan.

The Neal & Massy Group Pension Fund Plan, contributions to which were frozen on 31 January 1990, is a defined

contribution plan whose assets are held separately from those of the Group in an independently administered fund. The

most recent actuarial valuation, at 31 March 2011, revealed that the plan is adequately funded. There are certain benefits

payable by the Neal & Massy Group Pension Fund Plan which fall within the scope of IAS 19 (revised) – Employee Benefits.

The Retirement Income Security Plan incorporates an employee stock ownership plan which is funded by contributions

made by the employer, and is funded by the employees. Contributions to the Plan are accounted for on the accrual basis

and the assets are held separately from those of the Group in independently administered funds.

T. Geddes Grant Limited Pension Fund Plan is a defined contribution plan whose assets are held separately from those of

the Group in an independently administered fund. Contributions to the plan are accounted for on the accrual basis and

are reviewed by independent actuaries on the basis of triennial valuations.

The majority of the employees of the overseas companies participate in either defined contribution or defined benefit

pension plans which are separate from the Trinidad and Tobago plans.

A defined benefit plan is a pension plan that defines an amount of pension benefit to be provided, usually as a function

of one or more factors such as age, years of service or compensation. A defined contribution plan is a pension plan under

which the Group pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligations

to pay further contributions if the fund does not hold sufficient assets to pay all employees benefits relating to employee

service in the current and prior periods.

The asset and liability recognised in the consolidated statement of financial position in respect of defined benefit

pension plans is the present value of the defined benefit obligation at the statement of financial position date less the fair

value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected

unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future

cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will

be paid, and that have terms to maturity approximating to the terms of the related pension obligation.

Actuarial gains and losses arising from experience adjustments, changes in actuarial assumptions and amendments to

pension plans are charged or credited to equity in other comprehensive income in the period in which they arise.

Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the

employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are

amortised on a straight-line basis over the vesting period.

104 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.19 Employee benefits

(a) Pension obligations (continued)

For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans

on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions

have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions

are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

(b) other post-employment obligations

Certain Group companies provide post-retirement healthcare benefits to their retirees. The entitlement to these benefits is

usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service

period. The expected costs of these benefits are accrued over the period of employment using the same accounting

methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments,

and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in

which it arises. These obligations are valued annually by independent qualified actuaries.

(c) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or

whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination

benefits when it is demonstrably committed to a termination when the entity has a detailed formal plan to terminate the

employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary

redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.

Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(d) Bonus plans

A liability for employee benefits in the form of bonus plans is recognised in other provisions when there is no realistic

alternative but to settle the liability and at least one of the following conditions are met:

• thereisaformalplanandtheamountstobepaidaredeterminedbeforethetimeofissuingthefinancialstatements;

or

• pastpracticehascreatedavalidexpectationbyemployeesthattheywillreceiveabonus/profitsharingandtheamount

can be determined before the time of issuing the financial statements.

Liabilities for bonus plans are expected to be settled within 12 months and are measured at the amounts expected to be

paid when they are settled.

105forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.20 Share-based payments

The Group operates an equity-settled, share-based compensation plan, under which the entity receives services from employees

as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for

the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair

value of the options granted:

• includinganymarketperformanceconditions(forexample,anentity’sshareprice);

• excludingtheimpactofanyserviceandnon-marketperformancevestingconditions(forexample,profitability,salesgrowth

targets and remaining an employee of the entity over a specified time period); and

• includingtheimpactofanynon-vestingconditions(forexample,therequirementforemployeestosave).

Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total

expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be

satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest

based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income

statement, with a corresponding adjustment to equity.

When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable

transaction costs are credited to share capital.

The grant by the company of options over its equity instruments to the employees of subsidiary undertakings in the Group

is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date

fair value, is recognised over the vesting period as an increase to investment.

2.21 Provisions

Provisions for dismantlement costs, restructuring costs, legal claims and all other provisions are recognised when: the Group

has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources

will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future

operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined

by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to

any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a

pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The

increase in the provision due to passage of time is recognised as interest expense.

106 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.22 Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary

course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating

sales within the Group. The Group recognises revenue when the amount of revenue can be reliably measured, it is probable

that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group’s activities

as described below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type

of transaction and the specifics of each arrangement.

(a) Sale of goods – wholesale

The Group manufactures and sells a range of products in the wholesale market. Sales of goods are recognised

when a Group entity has delivered products to the wholesaler, the wholesaler has full discretion over the channel and

price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the

products. Delivery does not occur until the products have been shipped to the specified location, the risks of obsolescence

and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance

with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for

acceptance have been satisfied.

Sales are recorded based on the price specified in the sales contracts, net of the estimated volume discounts and

returns at the time of sale. Accumulated experience is used to estimate and provide for the discounts and returns. The

volume discounts are assessed based on anticipated annual purchases. No element of financing is deemed present as the

sales are made with credit terms as specified for entities within the Group, which is consistent with the market practice.

(b) Sale of goods – retail

The Group operates retail outlets for selling a range of products. Sales of goods are recognised when a Group entity sells

a product to the customer. Retail sales are usually in cash or by credit card.

It is the Group’s policy to sell its products to the retail customer with a right to return within a stipulated number of

days as required by the entities in the Group. Accumulated experience is used to estimate and provide for such returns at

the time of sale.

(c) Sale of services

The Group is engaged in providing a number of services. These services are provided on a time and material basis or as a

fixed-price contract, with contract terms generally ranging from less than one year to three years.

Revenue from time and material contracts, typically from delivering design services, is recognised under the percentage-

of-completion method. Revenue is generally recognised at the contractual rates. For time contracts, the stage of completion

is measured on the basis of labour hours delivered as a percentage of total hours to be delivered. For material contracts,

the stage of completion is measured on the basis of direct expenses incurred as a percentage of the total expenses to be

incurred.

107forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.22 Revenue recognition (continued)

(c) Sale of services (continued)

Revenue from fixed-price contracts for delivering design services is also recognised under the percentage-of-completion

method. Revenue is generally recognised based on the services performed to date as a percentage of the total services to

be performed.

Revenue from fixed-price contracts is generally recognised in the period the services are provided, using a straight-line

basis over the term of the contract.

If circumstances arise that may change the original estimates of revenues, costs or extent of progress toward completion,

estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected

in income in the period in which the circumstances that give rise to the revision become known by management.

(d) Rental income

Rental income from investment property leased out under an operating lease is recognised in the income statement on a

straight-line basis over the lease term.

Contingent rents, such as turnover rents, rent reviews and indexation, are recorded as income in the periods in which

they are earned. Rent reviews are recognised when such reviews have been agreed with tenants.

(e) Interest income

Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the Group

reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original

effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on

impaired loans and receivables is recognised using the original effective interest rate.

(f) Dividend income

Dividend income is recognised when the shareholder’s right to receive payment is established.

2.23 Leases

Group is the lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating

leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the consolidated

income statement on a straight-line basis over the period of the lease.

The Group leases certain property, plant and equipment. Leases of property, plant and equipment where, the Group has

substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the lease’s

commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.

Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance

108 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

2 SUMMARy of SIGNIfICANT ACCoUNTING PoLICIES (continued)

2.23 Leases (continued)

Group is the lessee (continued)

charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement

over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each

period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of

the asset and the lease term.

Group is the lessor

When assets are leased out under a finance lease, the present value of the lease payments is recognised as a receivable. The

difference between the gross receivable and the present value of the receivable is recognised as unearned finance income.

Lease income is recognised over the term of the lease using the net investment method, which reflects a constant periodic rate

of return. Assets leased out under operating leases are included in property, plant and equipment in the statement of financial

position. They are depreciated over their expected useful lives on a basis consistent with similarly owned property, plant and

equipment. Rental income (net of any incentives given to lessees) is recognised on a pattern reflecting a constant periodic rate

of return on the lessor’s net investment.

2.24 Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements in the period

in which the dividends are approved by the Company’s directors.

3 fINANCIAL RISK MANAGEMENT

3.1 financial risk factors

The Group’s activities expose it to a variety of financial risks. The Group’s aim therefore is to achieve an appropriate balance

between risk and return and minimise potentially adverse effects on the Group’s financial performance. This is achieved by the

analysis, evaluation, acceptance and management of the Group’s risk exposure.

The Board of Directors is ultimately responsible for the establishment and oversight of the Group’s risk management

framework. The main financial risks of the Group relate to the availability of funds to meet business needs, the risk of default by

counterparties to financial transactions, and fluctuations in interest and foreign exchange rates. The treasury function manages

the financial risks that arise in relation to underlying business needs and operates within clear policies and stringent parameters.

The function does not operate as a profit centre and the undertaking of speculative transactions is not permitted.

The Group’s principal financial liabilities comprise bank loans, operating overdrafts and trade payables, which are used to

finance Group operations. There are various financial assets such as trade receivables, investments, loans receivable, cash and

short term deposits which emanate from its operations. The main risks arising from the Group’s financial instruments are credit

risk, liquidity risk, foreign currency risk and interest rate risk.

The following contains information relative to the Group’s exposure to each of the above risks, including quantitative

disclosures.

109forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

3 fINANCIAL RISK MANAGEMENT (continued)

3.1 financial risk factors (continued)

(a) Market risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures.

Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in

foreign operations.

(i) Currency risk

The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to

the US dollar. The Group manages its foreign exchange risk by ensuring that the net exposure in foreign assets and

liabilities is kept to an acceptable level by monitoring currency positions as well as holding foreign currency balances.

The values of debt, investments and other financial liabilities, denominated in currencies other than the functional

currency of the entities holding them, are subject to exchange rate movements. The foreign exchange positions at

30 September 2012 relate mainly to USD loans. The single largest USD loan as at year end amounted to US$35,000

(2011: US$35,000). A 2% change in USD rates would lead to a TT$4,494 2011: TT$4,494) loss/gain in the

consolidated income statement.

(ii) Interest rate risk

The Group’s exposure to changes in market interest rates relates primarily to the long term debt obligations, with

floating interest rates. The exposure to interest rate risk on cash held on deposit is not significant.

At theendedof2012, interest rateswerefixedonapproximately72%of theborrowings (2011:69%).The

impact on the consolidated income statement to a 50 basis points change in floating interest rates is $2,024 in 2012

and $2,177 in 2011.

(iii) Price risk

The Group is exposed to equity securities price risk because of investments held by the Group and classified on the

consolidated statement of financial position as available-for-sale. The Group is not exposed to commodity price risk.

To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification

of the portfolio is done in accordance with the limits set by the Group.

(b) Credit risk

The Group is exposed to credit risk, which is the risk that may arise from its customers, clients and counterparties failing

to discharge their contractual obligations. The credit exposures arise primarily from the Group’s receivables on sales,

investments and cash held on deposit at various financial institutions.

The Group has no significant concentrations of credit risk and trades mainly with recognised, creditworthy third parties.

It is the Group’s policy that all customers trading on credit terms are subject to credit verification procedures. These

procedures are elements of a structured credit control system and include an analysis of each customer’s creditworthiness

and the establishment of limits before credit terms are set. In addition, receivable balances are monitored on an ongoing

110 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

3 fINANCIAL RISK MANAGEMENT (continued)

3.1 financial risk factors (continued)

(b) Credit risk (continued)

basis with the result that the Group’s exposure to bad debts is not significant. The maximum exposure is the carrying

amount as disclosed in note 3.1(c).

With respect to credit risk arising from the other financial assets of the Group, namely cash and cash equivalents

and available-for-sale financial investments, the Group’s exposure to credit risk arises principally from default of the

counterparty.

(c) Liquidity risk

Liquidity risk is the risk which may arise if the Group is unable to meet the obligations associated with its financial liabilities

when they fall due.

The Group’s liquidity risk management process is measured and monitored by senior management. This process

includes monitoring current cash flows on a frequent basis, assessing the expected cash inflows as well as ensuring that

the Group has adequate committed lines of credit to meet its obligations.

The following is an analysis of the undiscounted contractual cash flows payable under financial liabilities. Undiscounted

cash flows will differ from both the carrying values and the fair values.

Maturity analysis of financial liabilities

More than Contractual Carrying < 1 year 1 – 5 yrs 5 yrs cash flows amount $ $ $ $ $

2012

Financial Liabilities:

Bank overdraft and other

short term borrowings 4,038 - - 4,038 4,038

Other borrowings 453,220 820,575 477,904 1,751,699 1,451,938

Customers’ deposits 209,716 - - 209,716 206,122

Trade payables 665,438 - - 665,438 665,438

Liabilities on insurance contract 795,407 - - 795,407 795,407

Subtotal 2,127,819 820,575 477,904 3,426,298 3,122,943

111forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

3 fINANCIAL RISK MANAGEMENT (continued)

3.1 financial risk factors (continued)

(c) Liquidity risk (continued) More than Contractual Carrying < 1 year 1 – 5 yrs 5 yrs cash flows amount $ $ $ $ $

2011

Financial Liabilities:

Bank overdrafts and other

short term borrowings 4,616 - - 4,616 4,616

Other borrowings 322,885 994,188 565,766 1,882,839 1,413,239

Customers’ deposits 222,597 151 - 222,748 215,446

Trade payables 656,527 - - 656,527 656,527

Liabilities on insurance contracts 832,473 - - 832,473 832,473

Total 2,039,098 994,339 565,766 3,599,203 3,122,301

3.2 Capital Risk Management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to

provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the

cost of capital.

In order to maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders, return

capital to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by total capital.

Net debt is calculated as total borrowings (current and non-current borrowings) less cash and cash equivalents. Total capital is

calculated as total equity as shown in the consolidated statement of financial position plus net debt.

112 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

3 fINANCIAL RISK MANAGEMENT (continued)

3.2 Capital Risk Management (continued)

2012 2011 $ $

Total borrowings (Note 23) 1,455,976 1,417,855

Less: Cash and cash equivalents (Note 19) (1,304,737) (1,123,142)

Net debt 151,239 294,713

Total equity 3,521,068 3,226,885

Total capital 3,672,307 3,521,598

Gearingratio 4% 8%

3.3 fair value estimation

The Group uses the following hierarchy for determining and disclosing the fair value of financial assets and liabilities recorded

at fair value in the consolidated financial statements based upon the level of judgement associated with the inputs used to

measure their fair value. The hierarchical levels, from lowest to highest based on the amount of subjectivity associated with the

inputs to fair valuation of these assets and liabilities are as follows:

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The

types of assets carried at level 1 fair value are equity and debt securities listed in active markets.

Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or

indirectly. These inputs are derived principally from or corroborated by observable market data by correlation or other means at

the measurement date and for the duration of the instruments’ anticipated life.

The assets generally included in this fair value hierarchy are time deposits, foreign exchange and interest rate derivatives

and certain investment funds. Foreign exchange derivatives and interest rate derivatives are valued using corroborated market

data. The liabilities generally included in this fair value hierarchy consist of foreign exchange derivatives and options on equity

securities.

Level 3 – Inputs that are unobservable for the asset or liability for which there are no active markets to determine a price. These

financial instruments are held at cost being the fair value of the consideration paid for the acquisition of the investments, and

are regularly assessed for impairment.

The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial

position date. The quoted market price used for financial assets held by the Group is the current bid price.

113forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

3 fINANCIAL RISK MANAGEMENT (continued)

3.3 fair value estimation (continued)

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.

The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each statement

of financial position date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other

techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the

current market interest rate that is available to the Group for similar financial instruments.

The following table presents the Group’s assets and liabilities that are measured at fair value at 30 September 2012:

Level 1 Level 2 Level 3 Total $ $ $ $

Assets

Financial Assets at fair value through profit or loss

- Trading securities 114,844 - - 114,844

Available-for-sale financial assets

- Equity Securities 14,589 - 499 15,088

- Debt securities 4,713 - - 4,713

134,146 - 499 134,645

The following table presents the Group’s assets and liabilities that are measured at fair value at 30 September 2011:

Level 1 Level 2 Level 3 Total $ $ $ $

Assets

Financial Assets at fair value through profit or loss

- Trading securities 77,806 - - 77,806

Available-for-sale financial assets

- Equity Securities 17,704 - 503 18,207

- Debt securities 4,818 - - 4,818

100,328 - 503 100,831

114 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

4 CRITICAL ACCoUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations

of future events that are believed to be reasonable under the circumstances.

4.1 Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,

seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a) Estimated impairment of goodwill

The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated

in Note 2.7. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.

These calculations require the use of estimates (Note 8).

(b) Income taxes

The Group is subject to income taxes in several jurisdictions. Significant judgement is required in determining the provision

for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain

during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates

of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that

were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such

determination is made.

c) fair value of financial instruments

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques.

The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market

conditions existing at each statement of financial position date. The Group uses discounted cash flow analyses for various

available-for-sale financial assets that were not traded in active markets.

(d) Revenue recognition

The Group uses the percentage-of-completion method in accounting for its sales of services. Use of the percentage-of-

completion method requires the Group to estimate the services performed to date as a proportion of the total services to

be performed.

(e) Pension benefits

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis

using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the

discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.

115forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

4 CRITICAL ACCoUNTING ESTIMATES AND JUDGEMENTS (continued)

4.1 Critical accounting estimates and assumptions (continued)

(e) Pension benefits (continued)

The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to

determine the present value of estimated future cash outflows expected to be required to settle the pension obligations.

In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that

are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the

terms of the related pension obligation.

Other key assumptions for pension obligations are based in part on current market conditions. Additional information

is disclosed in Note 16.

(f) Liabilities on insurance contracts

Outstanding claims consist of estimates of the ultimate cost of claims incurred that have not been settled at the statement

of financial position date, whether reported or not, together with related claims handling costs. Significant delays may

be experienced in the notification and settlement of certain types of general insurance claims, such as general liability

business.

Estimates are calculated using methods and assumptions considered to be appropriate to the circumstances of the

Company and the business undertaken. This provision, while believed to be adequate to cover the ultimate cost of losses

incurred, may ultimately be settled for a different amount. It is continually reviewed and any adjustments are recorded in

operations in the period in which they are determined.

(g) Assets held for sale

Assets held for sale are measured at the lower of their carrying values and fair value less costs to sell.

The estimates of fair values less costs to sell requires the use of estimates.

4.2 Critical judgements in applying the entity’s accounting policies

Impairment of available-for-sale equity investments

The Group follows the guidance of IAS 39 to determine when an available-for-sale equity investment is impaired. This

determination requires significant judgement. In making this judgement, the Group evaluates, among other factors, the

duration and extent to which the fair value of an investment is less than its cost; and the financial health of and short term

business outlook for the investee, including factors such as industry and sector performance, changes in technology and

operational and financing cash flow.

116 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

5 SEGMENT INfoRMATIoN

The Chief Operating Decision Maker (CODM) is the Chief Executive Officer (CEO). Management has determined the operating

segments based on the reports reviewed by the CEO and the Board of Neal & Massy Holdings Limited.

The CEO and the Board considers the business from both a geographic and business unit perspective. Geographically, management

considers the performance of operating companies in Trinidad and Tobago, Barbados, Guyana and Jamaica.

For the financial year 2012, the operating companies within the Group have been restructured. These changes resulted in a change

in the operating segments from 2011.

At 30 September 2012, the Group is organised into six main business segments:

1) Automotive and Industrial Equipment;

2) Energy and Industrial Gases;

3) Integrated Retail;

4) Insurance;

5) Information Technology and Communications (ITC);

6) Other Investments

The CEO and the Board assesses the performance of the operating segments based on a measure of profit before tax, profit after tax

and asset utilization.

Automotive and Industrial Equipment

This segment derives its revenue mainly from the sale of new and used vehicles, spare parts and industrial equipment and also includes

the manufacturing and sale of pre-stressed concrete products and the installation of deep foundations.

Energy and Industrial Gases

This segment derives its revenue from the sale of gas and the provision of electrical, instrumentation and construction services for

offshore platforms. Revenue is also generated from the supply of technical resources, valve services and technical equipment to the

energy-based industries in Trinidad and Tobago and the region.

Integrated Retail

This segment derives its revenue mainly from the sale of retail and wholesale foods, general merchandise and distribution and logistics

operations. It also includes a financing company that accepts deposits for fixed terms and grants of instalment credit secured on

specific equipment and goods mortgage loans and undertakes insurance premium financing and leasing.

Insurance

This segment includes our insurance company, called United Insurance Company Limited. The Company acts as a primary insurer

for property, motor, liability and marine risk within the Caribbean region.

ITC

This segment derives its revenue mainly from the sale and rental of technology-based solutions, office interiors and the provision of

long-distance communications.

117forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

5 SEGMENT INfoRMATIoN (continued)

other Investments

This segment earns revenue from consultancy, property management and other services.

Head office and other

The head office and other segment includes companies which provide management, advisory and several support services to relevant

subsidiaries across the Group.

The Group’s retirement benefit assets are deemed unallocated and are not considered to be segment assets but rather are managed

by Head Office. The amount is included in the ‘Head Office and Other’ segment.

The segment results for the year ended 30 September 2012 are as follows:

118 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

5 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

The

Gro

up’s

retir

emen

t be

nefit

ass

ets

are

deem

ed u

nallo

cate

d an

d ar

e no

t co

nsid

ered

to

be s

egm

ent

asse

ts b

ut r

athe

r ar

e m

anag

ed b

y he

ad o

ffice

. The

am

ount

is

incl

uded

in t

he “

Oth

er”

segm

ent.

The

segm

ent

resu

lts f

or t

he y

ear

ende

d 30

Sep

tem

ber

2012

as

follo

ws:

A

uto

mo

tive

En

erg

y an

d

and

Ind

ust

rial

In

teg

rate

d

In

du

stri

al

o

ther

H

ead

offi

ce

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

and

oth

er

Tota

l

$ $

$ $

$

$ $

$

Co

nti

nu

ing

op

erat

ion

s

Gro

up R

even

ue

2,

007,

388

5,

462,

698

26

0,35

2

798,

828

58

7,85

7

609,

426

1,

695

9,

728,

244

Inte

r-se

gmen

t re

venu

e

(9

3,94

1)

(347

,243

) –

(9

,134

) (3

6,94

6)

(92,

797)

(1

,695

) (5

81,7

56)

Third

par

ty r

even

ue

1,

913,

447

5,

115,

455

26

0,35

2

789,

694

55

0,91

1

516,

629

–

9,

146,

488

Ope

ratin

g pr

ofit/

(loss

)

se

gmen

t re

sult

20

6,77

1

321,

878

(5

,437

) 17

4,49

9

80,1

53

119,

107

(1

03,1

90)

793,

781

Fina

nce

cost

s –

Net

(12,

512)

(1

5,92

7)

31,8

14

456

(5

10)

(4,5

47)

(44,

881)

(4

6,10

7)

194,

259

30

5,95

1

26,3

77

174,

955

79

,643

11

4,56

0

(148

,071

) 7

47,6

74

Shar

e of

res

ults

of

asso

ciat

es

an

d jo

int

vent

ures

bef

ore

tax

1,

083

5,

882

–

36

,317

(4

43)

11,3

36

–

5

4,17

5

Pro

fit/

(lo

ss)

bef

ore

inco

me

tax

195,

342

31

1,83

3

26,3

77

211,

272

79

,200

12

5,89

6

(148

,071

)

801

,849

Taxa

tion

(5

5,66

8)

(69,

479)

(8

,163

) (8

8,69

5)

(21,

943)

(2

2,19

6)

8,28

2

(2

57,8

62)

Pro

fit/

(lo

ss)

for

the

year

139,

674

24

2,35

4

18,2

14

122,

577

57

,257

10

3,70

0

(1

39,7

89)

5

43,9

87

119forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements5

SEG

MEN

T IN

foR

MA

TIo

N (c

ontin

ued)

The

seg

men

t as

sets

and

liab

ilitie

s at

30

Sept

embe

r 20

12 a

nd c

apita

l exp

endi

ture

for

the

yea

r th

en e

nded

are

as

follo

ws:

A

uto

mo

tive

En

erg

y an

d

an

d In

du

stri

al

Inte

gra

ted

Ind

ust

rial

oth

er

Hea

d o

ffice

H

eld

fo

r

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

and

oth

er

Sub

-to

tal

Sale

To

tal

$

$ $

$

$ $

$ $

$ $

Tota

l ass

ets

1,04

2,28

4 2

,267

,346

1,

338,

147

688,

239

368,

071

1,45

7,05

1 69

7,78

5 7,

858,

923

590,

781

8

,449

,704

Ass

ocia

tes

and

jo

int

vent

ures

5,62

1

3

9,62

7

291

113,

496

2,38

6 24

5,34

4 –

406,

765

– 40

6,76

5

Tota

l lia

bilit

ies

4

85,7

01

1,01

9,60

8 94

7,92

8 23

2,00

7 19

5,29

0 32

7,07

9 1,

229,

069

4,43

6,68

2 49

1,95

4 4,

928,

636

Cap

ital e

xpen

ditu

re

1

53,6

45

135,

213

5,51

6 32

,593

26

,020

13

,564

1,

570

368,

121

6,32

3 37

4,44

4

Oth

er s

egm

ent

item

s in

clud

ed in

the

con

solid

ated

inco

me

stat

emen

t ar

e as

fol

low

s:

Dep

reci

atio

n an

d

im

pairm

ent

74,

941

51,6

86

6,69

0 2

2,31

2 28

,430

15

,948

2,

544

202

,551

19

,828

22

2,37

9

Impa

irmen

t of

goo

dwill

10

,603

1,

431

101

– –

–

– 12

,135

–

12

,135

120 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

5 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Th

e se

gmen

t re

sults

for

the

yea

r en

ded

30 S

epte

mbe

r 20

11 a

re a

s fo

llow

s:

A

uto

mo

tive

En

erg

y an

d

and

Ind

ust

rial

In

teg

rate

d

In

du

stri

al

o

ther

H

ead

offi

ce

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

and

oth

er

Tota

l

$ $

$ $

$

$ $

$

Gro

up R

even

ue

1,62

4,42

6

5,1

63,8

71

2

88,2

13

765

,537

597,

530

5

82,4

49

1,

696

9,02

3,72

2

Inte

r-se

gmen

t re

venu

e

(85,

248)

(329

,355

)

(7

,049

)

(25,

145)

(77,

888)

(1

,696

)

(526

,381

)

Third

par

ty r

even

ue

1,53

9,17

8

4,8

34,5

16

2

88,2

13

758

,488

572,

385

5

04,5

61

-

8

,497

,341

Ope

ratin

g pr

ofit/

(loss

)

se

gmen

t re

sult

172,

540

308

,750

(5

4,66

7)

170

,794

76,

055

86,

091

(112

,685

)

646

,878

Fina

nce

cost

s –

Net

(9,1

40)

(12,

164)

3

1,07

1

(245

)

(779

)

(4

,578

)

(5

1,97

1)

(47,

806)

163,

400

296,

586

(23,

596)

17

0,54

9 75

,276

81

,513

(1

64,6

56)

5

99,0

72

Shar

e of

res

ults

of

asso

ciat

es a

nd

jo

int

vent

ures

bef

ore

tax

85

1

6,7

78

-

31,3

77

-

1,5

72

-

40

,578

Profi

t/(lo

ss) b

efor

e in

com

e ta

x

164,

251

303

,364

(2

3,59

6)

201

,926

75,

276

83,

085

(164

,656

)

639

,650

Taxa

tion

(4

6,45

6)

(

69,9

43)

(8,

172)

(

56,9

58)

(1

6,64

7)

(1

6,06

8)

18,9

50

(1

95,2

94)

Profi

t/(lo

ss) f

or t

he y

ear

117,

795

233

,421

(3

1,76

8)

144

,968

58,

629

67,

017

(145

,706

)

444

,356

121forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements5

SEG

MEN

T IN

foR

MA

TIo

N (c

ontin

ued)

T

he s

egm

ent

asse

ts a

nd li

abili

ties

at 3

0 Se

ptem

ber

2011

and

cap

ital e

xpen

ditu

re f

or t

he y

ear

then

end

ed a

re a

s fo

llow

s:

A

uto

mo

tive

En

erg

y an

d

an

d In

du

stri

al

Inte

gra

ted

Ind

ust

rial

oth

er

Hea

d o

ffice

H

eld

fo

r

Equ

ipm

ent

Ret

ail

Insu

ran

ce

Gas

es

ITC

In

vest

men

ts

and

oth

er

Sub

-to

tal

Sale

To

tal

$

$ $

$

$ $

$ $

$ $

Tota

l ass

ets

1,00

3,58

3 2,

311,

680

1,41

3,49

2 64

4,53

8 38

0,11

7 1

,334

,429

41

8,76

0 7,

506,

599

703,

659

8,

210,

258

Ass

ocia

tes

and

jo

int

vent

ures

4

,845

37

,644

29

1 11

5,10

6 -

24

7,49

2 -

40

5,37

8 -

40

5,37

8

Tota

l lia

bilit

ies

452,

069

1,02

8,79

2 96

2,90

0 18

2,47

7 17

5,76

3 31

6,73

4 1,

301,

416

4,42

0,15

1 5

63,2

22

4,98

3,37

3

Cap

ital e

xpen

ditu

re

95,1

43

56,3

98

2,74

0 36

,553

26

,093

7,

581

2,9

47

227,

455

10,7

69

238,

224

Oth

er s

egm

ent

item

s in

clud

ed in

the

con

solid

ated

inco

me

stat

emen

t ar

e as

fol

low

s:

Dep

reci

atio

n an

d

im

pairm

ent

67,5

18

56,4

36

4,18

1 19

,022

2

8,25

3 34

,415

3,

196

213,

021

24,0

71

237,

092

Impa

irmen

t of

goo

dwill

8

,431

1,

431

199

106

-

870

-

11,0

37

-

11,0

37

122 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

5 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Inte

r-se

gmen

t tr

ansf

ers

or t

rans

actio

ns a

re e

nter

ed in

to u

nder

the

nor

mal

com

mer

cial

ter

ms

and

cond

ition

s th

at w

ould

als

o be

ava

ilabl

e to

thi

rd p

artie

s.

Cap

ital e

xpen

ditu

re c

ompr

ises

add

ition

s to

pro

pert

y, p

lant

and

equ

ipm

ent

and

inve

stm

ent

prop

erty

(Not

es 6

and

7).

The

Gro

up’s

five

busi

ness

seg

men

ts o

pera

te in

fou

r m

ain

geog

raph

ical

are

as, e

ven

thou

gh t

hey

are

man

aged

on

a re

gion

al b

asis

.

The

mai

n op

erat

ions

occ

ur in

the

hom

e co

untr

y of

the

Com

pany

. Th

e ar

eas

of o

pera

tion

are

prin

cipa

lly t

radi

ng, m

anuf

actu

ring,

ser

vice

indu

strie

s an

d fin

ance

Th

ird

par

ty r

even

ue

Pro

fit

Bef

ore

Tax

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2

011

201

2 20

11

2012

20

11

2012

20

11

$

$

$

$ $

$

$ $

Co

nti

nu

ing

o

per

atio

ns

Trin

idad

and

Tob

ago

5,02

6,00

6 4,

488,

117

575,

501

522,

314

3,51

8,10

8 3,

212,

337

277,

082

163,

340

Barb

ados

2,68

0,57

3

2,6

49,0

66

217,

436

125

,575

3,

327,

871

3,4

28,2

23

43,

854

42,0

38

Guy

ana

7

66,1

77

687,

378

103,

159

92,

074

392,

916

330,

275

21,

152

8,87

8

Jam

aica

662

,788

659

,167

4

8,61

5 5

7,70

8 39

1,42

9 3

56,7

82

25,7

25

12,4

85

Oth

er

10,

944

13

,613

5,

815

7,73

1 22

8,59

9 17

8,98

2 3

08

715

Hea

d O

ffice

and

Oth

er

– –

(148

,677

)

(165

,752

) –

– –

–

9,

146,

488

8

,497

,341

80

1,84

9

6

39,6

50

7,85

8,92

3 7,

506,

599

368,

121

227,

456

Tran

sfer

red

to

dis

po

sal g

rou

p c

lass

ified

as

hel

d f

or

sale

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2011

20

12

2011

$

$

$ $

Trin

idad

and

Tob

ago

38

1,

070

– –

Barb

ados

59

0,74

3 7

02,5

89

6,3

23

10,7

68

59

0,78

1 7

03,6

59

6,32

3 10

,768

Tota

l

8,

449,

704

8,21

0,25

8 37

4,44

4 23

8,22

4

123forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

5 SE

GM

ENT

INfo

RM

ATI

oN

(con

tinue

d)

Inte

r-se

gmen

t tr

ansf

ers

or t

rans

actio

ns a

re e

nter

ed in

to u

nder

the

nor

mal

com

mer

cial

ter

ms

and

cond

ition

s th

at w

ould

als

o be

ava

ilabl

e to

thi

rd p

artie

s.

Cap

ital e

xpen

ditu

re c

ompr

ises

add

ition

s to

pro

pert

y, p

lant

and

equ

ipm

ent

and

inve

stm

ent

prop

erty

(Not

es 6

and

7).

The

Gro

up’s

five

busi

ness

seg

men

ts o

pera

te in

fou

r m

ain

geog

raph

ical

are

as, e

ven

thou

gh t

hey

are

man

aged

on

a re

gion

al b

asis

.

The

mai

n op

erat

ions

occ

ur in

the

hom

e co

untr

y of

the

Com

pany

. Th

e ar

eas

of o

pera

tion

are

prin

cipa

lly t

radi

ng, m

anuf

actu

ring,

ser

vice

indu

strie

s an

d fin

ance

Th

ird

par

ty r

even

ue

Pro

fit

Bef

ore

Tax

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2

011

201

2 20

11

2012

20

11

2012

20

11

$

$

$

$ $

$

$ $

Co

nti

nu

ing

o

per

atio

ns

Trin

idad

and

Tob

ago

5,02

6,00

6 4,

488,

117

575,

501

522,

314

3,51

8,10

8 3,

212,

337

277,

082

163,

340

Barb

ados

2,68

0,57

3

2,6

49,0

66

217,

436

125

,575

3,

327,

871

3,4

28,2

23

43,

854

42,0

38

Guy

ana

7

66,1

77

687,

378

103,

159

92,

074

392,

916

330,

275

21,

152

8,87

8

Jam

aica

662

,788

659

,167

4

8,61

5 5

7,70

8 39

1,42

9 3

56,7

82

25,7

25

12,4

85

Oth

er

10,

944

13

,613

5,

815

7,73

1 22

8,59

9 17

8,98

2 3

08

715

Hea

d O

ffice

and

Oth

er

– –

(148

,677

)

(165

,752

) –

– –

–

9,

146,

488

8

,497

,341

80

1,84

9

6

39,6

50

7,85

8,92

3 7,

506,

599

368,

121

227,

456

Tran

sfer

red

to

dis

po

sal g

rou

p c

lass

ified

as

hel

d f

or

sale

To

tal A

sset

s C

apit

al E

xpen

dit

ure

20

12

2011

20

12

2011

$

$

$ $

Trin

idad

and

Tob

ago

38

1,

070

– –

Barb

ados

59

0,74

3 7

02,5

89

6,3

23

10,7

68

59

0,78

1 7

03,6

59

6,32

3 10

,768

Tota

l

8,

449,

704

8,21

0,25

8 37

4,44

4 23

8,22

4

6 P

Ro

PER

Ty, P

LAN

T A

ND

EQ

UIP

MEN

T

A

t 30

Sep

tem

ber

2010

Leas

eho

ld

furn

itu

re

free

ho

ld

pro

per

ty a

nd

Pl

ant

and

and

M

oto

r C

apit

al w

ork

Pr

op

erty

im

pro

vem

ents

eq

uip

men

t R

enta

l ass

ets

fixt

ure

s v

ehic

le

in p

rog

ress

To

tal

$

$ $

$ $

$ $

$

Cos

t 1,

861,

294

16

6,60

6 1,

033,

144

3

48,5

04

245

,644

14

9,77

0

27

,026

3

,831

,988

Acc

umul

ated

dep

reci

atio

n (8

7,52

4)

(76,

762)

(752

,075

)

(1

67,7

30)

(185

,787

)

(9

4,87

6)

-

(

1,36

4,75

4)

Net

boo

k am

ount

1,

773,

770

89,8

44

281,

069

1

80,7

74

5

9,85

7

54,

894

27,0

26

2,4

67,2

34

yea

r En

ded

30

Sep

tem

ber

201

1

Ope

ning

net

boo

k am

ount

1,

773,

770

89,8

44

281,

069

1

80,7

74

5

9,85

7

54,

894

27,0

26

2,4

67,2

34

Add

ition

s 16

,639

8,

924

7

2,74

1

100

,658

8,4

94

24,

146

6,5

04

2

38,1

06

Dis

posa

ls a

nd a

djus

tmen

ts

(27,

420)

(8

2)

(

878)

(2

7,50

4)

(8

2)

(3,

890)

(3

20)

(6

0,17

6)

Tran

slat

ion

adju

stm

ents

14

,849

12

9

757

(5

59)

282

23

1

40

15,

729

Tran

sfer

s fr

om C

apita

l Wor

k in

Pro

gres

s

-

Pro

pert

y pl

ant

and

equi

pmen

t -

60

15,

060

-

816

25

1

(16

,187

)

-

Tran

sfer

s fr

om C

apita

l Wor

k in

Pro

gres

s

-

Inve

stm

ent

prop

erty

-

- -

- -

-

(3,1

06)

(3,1

06)

Dep

reci

atio

n ch

arge

(2

3,40

2)

(5,4

18)

(72,

063)

(7

2,76

2)

(2

1,56

7)

(19,

027)

-

(

214,

239)

Clo

sing

net

boo

k am

ount

incl

udin

g

di

scon

tinue

d op

erat

ions

1,

754,

436

93,4

57

296,

686

1

80,6

07

4

7,80

0

56,

605

13,9

57

2,4

43,5

48

Tran

sfer

red

to d

ispo

sal g

roup

cl

assi

fied

as h

eld

for

sale

(8

69,2

71)

-

(14,

114)

-

(2

0,78

6)

(1,

862)

-

(

906,

033)

Clo

sing

net

boo

k am

ount

88

5,16

5 93

,457

28

2,57

2

180

,607

27,

014

5

4,74

3

13

,957

1

,537

,515

At

30 S

epte

mb

er 2

011

C

ost

968,

015

175,

244

1

,032

,120

3

70,0

39

158

,197

15

0,03

8

13

,957

2

,867

,610

Acc

umul

ated

dep

reci

atio

n (8

2,85

0)

(81,

787)

(749

,548

)

(1

89,4

32)

(131

,183

)

(9

5,29

5)

-

(

1,33

0,09

5)

Net

boo

k am

ount

88

5,16

5 93

,457

28

2,57

2

180

,607

27,

014

5

4,74

3

13

,957

1

,537

,515

124 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

6 P

Ro

PER

Ty, P

LAN

T A

ND

EQ

UIP

MEN

T IN

CLU

DED

IN C

oN

TIN

UIN

G o

PER

ATI

oN

S (c

ontin

ued)

Leas

eho

ld

furn

itu

re

free

ho

ld

pro

per

ty a

nd

Pl

ant

and

and

M

oto

r C

apit

al w

ork

Pr

op

erty

im

pro

vem

ents

eq

uip

men

t R

enta

l ass

ets

fixt

ure

s v

ehic

le

in p

rog

ress

To

tal

$

$ $

$ $

$ $

$

yea

r en

ded

30

Sep

tem

ber

201

2

Ope

ning

net

boo

k am

ount

88

5,16

5 93

,457

28

2,57

2

180

,607

27,

014

5

4,74

3

13

,957

1

,537

,515

Add

ition

s 68

,080

3,

209

6

0,45

8

156

,869

11,

455

2

3,79

0

43

,957

367

,818

Dis

posa

ls a

nd a

djus

tmen

ts

381

(1

79)

4,15

5

(3

3,35

8)

(3

4)

(4,

246)

-

(33,

281)

Tran

slat

ion

adju

stm

ents

(1

,570

) (7

)

(2,4

28)

(85

)

(29)

(9

9)

(52

)

(4

,270

)

Tran

sfer

s fr

om C

apita

l Wor

k in

Pro

gres

s

-

Prop

erty

Pla

nt a

nd E

quip

men

t 14

5

-

172

-

361

-

(678

)

-

Tran

sfer

s fr

om C

apita

l Wor

k in

Pro

gres

s

-

Inve

stm

ent

Prop

erty

-

- -

- -

-

(2,3

71)

(2,3

71)

Dep

reci

atio

n ch

arge

(1

3,56

9)

(6,4

51)

(68,

663)

(8

1,96

2)

(1

0,98

9)

(17,

832)

-

(

199,

466)

Clo

sing

net

boo

k am

ount

93

8,63

2 90

,029

27

6,26

6

222

,071

27,

778

5

6,35

6

54

,813

1

,665

,945

At

30 S

epte

mb

er 2

012

Cos

t 1,

034,

523

178,

103

1

,066

,771

4

22,8

22

161

,771

15

8,49

8

54

,813

3

,077

,301

Acc

umul

ated

dep

reci

atio

n (9

5,89

1)

(88,

074)

(790

,505

)

(2

00,7

51)

(133

,993

)

(10

2,14

2)

-

(

1,41

1,35

6)

Net

boo

k am

ount

93

8,63

2 90

,029

27

6,26

6

222

,071

27,

778

5

6,35

6

54

,813

1

,665

,945

The

net

book

am

ount

of

prop

erty

, pla

nt a

nd e

quip

men

t in

clud

es $

602

(201

1: $

297)

in r

espe

ct o

f m

otor

veh

icle

s he

ld u

nder

fina

nce

leas

es.

Dep

reci

atio

n ex

pens

e of

$12

1,02

2 (2

011:

$11

8,76

7) h

as b

een

char

ged

in c

ost

of g

oods

sol

d an

d $9

8,27

2 (2

011:

$95

,472

) in

‘se

lling

, ge

nera

l and

adm

inis

trat

ion

expe

nses

’

(Not

e 28

).

125forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

7 INvESTMENT PRoPERTIES

2012 2011

$ $

At 1 October

Cost 366,905 364,836

Accumulated depreciation and impairment (41,804) (38,987)

Net book amount 325,101 325,849

Opening net book amount 325,849 351,875

Adjustment to opening balance and other adjustments 1,773 239

Translation adjustments - 2,556

Additions from subsequent expenditure recognised as an asset 303 118

Depreciation (3,085) (6,105)

Impairment charge - (16,748)

Transfers from capital work in progress 2,371 (9,192)

Net book amount 325,101 325,849

The fair value of the investment properties amounted to $454,383 (2011: $463,360) as valued by an independent, professionally

qualified valuer taking into consideration current replacement costs, land tax valuations and other valuation techniques.

The property rental income earned by the Group during the year from its investment properties, amounted to $31,883 (2011:

$29,613). Direct operating expenses arising on the investment properties which generated revenue during the year amounted to

$11,470 (2011: $11,660).

Direct operating expenses arising on the investment properties which did not generate revenue during the year amounted to $253

(2011: $270).

Depreciation and impairment expense have been charged in ‘selling, general and administration expenses’. (Note 28).

126 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

8 GooDWILL 2012 2011

$ $

At 30 September

Cost 213,197 213,197

Accumulated impairment (67,913) (55,778)

Net book amount 145,284 157,419

Year ended 30 September

Opening net book amount 157,419 168,003

Translation adjustments - 453

Impairment charge (Note 28) (12,135) (11,037)

Closing net book amount 145,284 157,419

Goodwill is allocated to the Group’s cash-generating units (‘CGUs’) identified according to country of operation and business segment.

A segment-level summary of the goodwill allocation is presented below.

2012 2011

$ $

Trinidad Trinidad

and Tobago Overseas and Tobago Overseas

Automotive and Industrial Equipment 11,665 - 22,267 -

Energy and Industrial Gases 31,817 2,485 31,817 2,485

Integrated Retail 9,421 46,963 10,852 46,963

Insurance - 39,662 - 39,764

Other Investments - 3,271 - 3,271

Total 52,903 92,381 64,936 92,483

The recoverable amount of cash generating units is determined based on value-in-use calculations. These calculations use pre-tax

cash flow projections based on financial budgets approved by management covering a five-year period.

127forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

8 GooDWILL (continued)

Key assumptions used for value-in-use calculations:

2012 2011

Growth Rate¹ Discount Rate² Growth Rate¹ Discount Rate²

Automotive and

IndustrialEquipment 0%-3% 12.6% 0%-3% 11.2%-11.9%

EnergyandIndustrialGases 2%-11% 11.10%-14.4% 1.0% 11.7%-12.9%

IntegratedRetail 0%-4% 8.2%-10.2% 1.3%-3.0% 8.2%-10.2%

OtherInvestments 0% 8.2% 0%-4% 8.2%

Insurance 0%-5% 9.5% 0%-5% 9.5%

¹ Weighted average growth rate used to extrapolate cash flows beyond the budget period

² Pre-tax discount rate applied to the cash flow projections

These assumptions have been used for the analysis of each CGU within the business segment. Management determined the budgeted

gross margin based on past performance and its expectations for the market development. The weighted average growth rates used

are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risk relating to

the relevant segments.

9 oTHER INTANGIBLE ASSETS

Intangibles represent brands and have been recognised at fair value at the acquisition date and are measured at carrying values less

accumulated amortisation and impairment. No impairment has been recorded during the years presented.

2012 2011

$ $

At 30 September

Cost 40,862 35,070

Additions 12,793 5,792

Accumulated amortisation (2,650) (69)

Net book amount 51,005 40,793

128 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

10 INvESTMENTS IN ASSoCIATES AND JoINT vENTURES

2012 2011

$ $

Investment and advances 286,174 293,240

Share of post acquisition reserves 120,591 112,138

406,765 405,378

Balance at beginning of year 405,378 453,282

Additional investments 2,829 15,951

Share of results before tax 54,175 40,578

Share of tax (43,187) (13,807)

Dividends received (7,876) (24,256)

Exchange differences (53) 3,826

Transferred to disposal group held for sale (Note 35) - (31,160)

Other (4,501) (39,036)

Balance at end of year 406,765 405,378

The share of results before tax includes $766 in 2012 (2011 : $766) representing the impairment charge for goodwill in respect

of acquisition of associates. Investments in associates at 30 September 2012 include goodwill of $7,855 (2011:$8,621), net of

accumulated impairment of $6,894 (2010:$6,128).

The principal associate is Banks Holdings Limited which is listed and incorporated in Barbados

2012 2011

$ $

Investments and advances 190,345 190,347

Share of post acquisition losses (8,932) (8,633)

181,413 181,714

129forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

10 INvESTMENTS IN ASSoCIATES AND JoINT vENTURES (continued)

The market value of shares in Banks Holdings Limited as at 30 September is $126,674 (2011: $160,876).

The Group’s share of the associates and joint ventures assets, liabilities, revenues and net profit after tax is as follows:

2012 2011

$ $

Assets 937,052 864,472

Liabilities 507,645 462,222

Revenues 926,600 942,916

Net profit after tax 10,988 26,771

The Group has investments in associates whose year ends are not coterminous with 30 September. These are principally:

Country Reporting of Incorporation year End

Banks Holdings Limited Barbados 31 August

Neal & Massy Wood Group Limited Trinidad and Tobago 31 December

G4S Holdings Trinidad Limited Trinidad and Tobago 31 December

G4S Security Services (Barbados) Limited Barbados 31 December

CMA CGM Trinidad Limited Trinidad and Tobago 31 December

11 CREDIT QUALITy of fINANCIAL ASSETS

Credit quality – investments

Sub-

Low Standard Standard

Risk Risk Risk Impaired Total

$ $ $ $ $

Investments

2012 310,085 218,236 799 (1) 529,119

2011 342,255 151,298 23,926 - 517,479

130 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

11 CREDIT QUALITy of fINANCIAL ASSETS (continued)

Credit quality – other financial assets

Past Due Provision fully but not for Performing Impaired Impaired Impairment Total $ $ $ $ $

2012

Instalment credit and other loans 231,860 13,205 8,738 (7,710) 246,093

Trade receivables

- continuing operations 435,413 344,287 99,243 (100,047) 778,896

667,273 357,492 107,981 (107,757) 1,024,989

Past Due Provision fully but not for Performing Impaired Impaired Impairment Total

$ $ $ $ $

2011

Instalment credit and other loans 217,242 26,287 8,404 (7,108) 244,825

Trade receivables

– continuing operations 566,433 248,566 119,984 (122,753) 812,230

783,675 274,853 128,388 (129,861) 1,057,055

The credit quality of other investments has been analysed into the following categories:

Low Risk These comprise Sovereign Debt Investments where there has been no history of default.

Standard These investments are current and have been serviced in accordance with the terms and conditions of the underlying

agreements.

Sub-Standard These investments are either greater than 90 days in arrears but are not considered to be impaired or have been

restructured in the past year.

Impaired These investments are non-performing.

131forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

12 fINANCIAL ASSETS

2012 2011

$ $

Held to maturity 356,466 372,143

Loans and receivables 38,008 44,505

Available for sale 19,801 23,025

414,275 439,673

Fair value through profit or loss (Note 13) 114,844 77,806

529,119 517,479

a) Financial assets – Held to maturity and loans and receivables

Held to Loans and

maturity receivables Total

$ $ $

2012

Beginning of the year 372,143 44,505 416,648

Exchange differences - - -

Amortisation (9,706) 700 (9,006)

Additions 11,877 - 11,877

Disposals (15,569) (7,197) (22,766)

Other (2,279) - (2,279)

End of the year 356,466 38,008 394,474

2011

Beginning of the year 316,645 47,456 364,101

Exchange differences 2,987 448 3,435

Amortisation (69) - (69)

Additions 76,241 - 76,241

Disposals (23,661) (3,399) (27,060)

End of the year 372,143 44,505 416,648

The fair value of held to maturity financial assets and loans and receivables approximate their carrying amounts.

132 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

12 fINANCIAL ASSETS (continued)

b) financial assets – Available-for-sale investments

2012 2011

$ $

Beginning of the year 23,025 25,311

Exchange differences - 233

Change in market value/impairment charge (1) (1,607)

Additions - -

Disposals (3) (745)

Net gains transferred from equity to other comprehensive income (3,220) (39)

Transferred to disposal group classified as held for sale (Note 35) - (128)

19,801 23,025

Available for sale investments include the following:

Continuing operations

Bonds and treasury bills 4,713 4,818

Quoted securities 14,589 17,704

Unquoted securities 499 503

19,801 23,025

Available for sale investments are denominated in the following currencies:

Continuing operations

Trinidad & Tobago dollars 337 352

Barbados dollars 13,803 17,017

United Sates dollars 5,512 5,507

Other 149 149

19,801 23,025

The maximum exposure to credit risk at the reporting date is the carrying value of the debt securities classified as available for sale.

133forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

13 fINANCIAL ASSETS AT fAIR vALUE THRoUGH PRofIT oR LoSS

2012 2011

$ $

Beginning of the year 77,806 77,963

Exchange differences - 732

Change in market value/impairment charge (361) (567)

Additions 8,114 3,655

Disposals - (3,977)

Other 29,285 -

114,844 77,806

14 DEfERRED INCoME TAX

Deferredincometaxesarecalculatedinfull,ontemporarydifferencesundertheliabilitymethodusingaprincipaltaxrateof25%

(2011:25%).

The movement in the deferred income tax account is as follows:

2012 2011

$ $

Deferred income tax liabilities

Balance at beginning of year 115,224 99,909

Charge for the year 10,211 14,435

Exchange adjustment (442) 60

Other movements 3,397 4,920

Transferred to disposal group classified as held for sale (Note 35) - (4,100)

Balance at end of year 128,390 115,224

134 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

14 DEfERRED INCoME TAX (continued)

Deferred income tax liabilities (continued)

The movement in the deferred tax liabilities during the year ended 30 September 2012 is as follows:

Charge to Consolidated

Income Statement Other

30.09.11 (Note 31) Movements 30.09.12

$ $ $ $

Accelerated depreciation 59,767 5,945 213 65,925

Pension plan surplus 56,791 3,794 2,422 63,007

Other (1,334) 472 320 (542)

115,224 10,211 2,955 128,390

The movement in the deferred tax liabilities during the year ended 30 September 2011 is as follows:

Charge/(Credit) to Transferred to

Consolidated disposal group

Income Statement Other classified as held

30.09.10 (Note 31) Movements for sale 30.09.11

$ $ $ $ $

Accelerated depreciation 47,516 11,896 4,455 (4,100) 59,767

Pension plan surplus 50,644 4,742 1,405 - 56,791

Other 1,749 (2,203) (880) - (1,334)

99,909 14,435 4,980 (4,100) 115,224

Deferred income tax liabilities

The movement in the deferred tax assets during the year ended 30 September 2012 is as follows:

2012 2011

$ $

Balance at beginning of year 68,039 85,331

Charge for the year (3,233) (10,302)

Other movements (2,826) 19

Transferred to disposal group classified as held for sale (Note 35) - (7,009)

Balance at end of year 61,980 68,039

135forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

14 DEfERRED INCoME TAX (continued)

Deferred income tax assets (continued)

The movement in the deferred tax assets during the year ended 30 September 2012 is as follows:

Charge to Consolidated

Income Statement Other

30.09.11 (Note 31) Movements 30.09.12

$ $ $ $

Accelerated depreciation 21,158 816 833 22,807

Tax losses carried forward 19,995 (4,481) (4,351) 11,163

Other 26,886 432 692 28,010

68,039 (3,233) (2,826) 61,980

The movement in the deferred tax assets during the year ended 30 September 2011 is as follows:

Charge/(Credit) to Transferred to

Consolidated disposal group

Income Statement Other classified as held

30.09.10 (Note 31) Movements for sale 30.09.11

$ $ $ $ $

Accelerated depreciation 45,590 (26) (17,397) (7,009) 21,158

Tax losses carried forward 32,888 (16,187) 3,294 - 19,995

Other 6,853 5,911 14,122 - 26,886

85,331 (10,302) 19 (7,009) 68,039

Deferred income tax assets are recognised for tax losses carry-forward to the extent that the realisation of the related tax benefit

through the future taxable profits is probable.

136 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

15 INSTALMENT CREDIT AND oTHER LoANS

These represent the instalment credit and other loans granted mainly by General Finance Corporation Limited.

2012 2011

$ $

Amounts due within one year 118,510 121,698

Between two and five years 128,981 125,912

Over five years 6,312 4,323

253,803 251,933

Provision for losses (7,710) (7,108)

246,093 244,825

Due within one year (110,800) (114,590)

135,293 130,235

15.1 Sectoral analysis of instalment credit and other loans

2012 2011

$ $

Consumer 102,884 101,713

Manufacturing 8,217 9,045

Distribution 28,631 28,159

Construction 30,032 31,644

Transport 31,127 31,829

Agriculture 1,132 1,398

Petroleum 886 1,032

Residential mortgages 36 373

Other 43,148 39,632

246,093 244,825

137forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

15 INSTALMENT CREDIT AND oTHER LoANS (continued)

15.2 Provision for losses

2012 2011

$ $

Balance at beginning of year 7,108 5,898

Charge for the year 1,874 3,374

Amount written off net of recoveries (1,272) (2,164)

Balance at end of year 7,710 7,108

The maximum exposure to credit risk at the reporting date is the carrying value of the instalment credit and other loans. The

Group holds $279,305 (2011: $256,009) of collateral as security.

16 RETIREMENT BENEfIT ASSETS 2012 2011

$ $

Neal & Massy Group Pension Fund Plan 226,611 198,561

Overseas plans – Other 32,040 33,407

258,651 231,968

The pension plans were valued by an independent actuary using the projected unit credit method.

Neal & Massy Group Pension fund Plan

The amounts recognised in the statement of financial position are as follows:

2012 2011

$ $

Fair value of plan assets 1,420,661 1,343,676

Present value of obligation (1,042,565) (944,234)

378,096 399,442

Unutilisable asset (151,485) (200,881)

Asset in the statement of financial position 226,611 198,561

138 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

16 RETIREMENT BENEfIT ASSETS (continued) 2012 2011

$ $

The movement in the defined benefit obligation over the year is as follows:

Opening present value of defined benefit obligation 944,234 908,593

Current service cost 16,869 16,093

Interest cost 70,876 67,243

Actuarial losses/ (gains) on obligation 50,731 (7,568)

Benefits paid (40,145) (40,127)

Closing present value of defined benefit obligation at 30 September 1,042,565 944,234

The movement in the fair value of plan assets for the year is as follows:

Opening fair value of plan assets 1,343,676 1,207,711

Expected return on plan assets 103,904 93,231

Actuarial gains on plan assets 13,199 82,855

Employer contributions 27 6

Benefits paid (40,145) (40,127)

Closing fair value of plan assets at 30 September 1,420,661 1,343,676

The amounts recognised in the consolidated income statement are as follows:

Current service cost 16,869 16,093

Interest cost 70,876 67,243

Expected return on plan assets (103,904) (93,231)

Total included in other income (16,159) (9,895)

Actuarial losses/(gains) recognised in comprehensive income before tax 37,532 (90,423)

Cumulative actuarial gains recognised in the statement

of other comprehensive income before tax (193,372) (230,904)

Actual return on plan assets 117,103 176,086

139forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

16 RETIREMENT BENEfIT ASSETS (continued)

Movement in the asset recognised in the statement of financial position:

2012 2011

$ $

Asset at beginning of year 198,561 189,471

Net pension income 16,159 9,895

Actuarial gains/(losses) 11,864 (811)

Contributions paid 27 6

Asset at end of year 226,611 198,561

The principal actuarial assumptions used were:

Per annum Per annum

Discountrate 5.0% 7.5%

Futuresalaryincreases 5.0% 7.0%

Expectedreturnonplanassets 5.35% 7.85%

Futurepensionincreases–postretirement 3.5% 5.0%

The assumption with regard to the expected return on plan assets has been developed with reference to the average portfolio rate

expected to be earned by the Fund on the underlying asset mix over the lifetime of the obligations net of allowances for investment

expenses.

Assumptions regarding future mortality experience are set based on advice from published statistics and experience in each territory.

16 RETIREMENT BENEfIT ASSETS (continued)

Plan assets are comprised as follows:

2012 2011

LocalEquities/MutualFunds 37% 33%

LocalBonds/Mortgages 21% 24%

Foreigninvestments 28% 30%

Deferredannuities/insurancepolicy 5% 6%

Shorttermsecurities/Cash/Accruedincome 9% 7%

The average life expectancy in years of a pensioner retiring at age 60 is as follows:

2012 2011

Male 82 82

Female 86 86

140 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

16 RETIREMENT BENEfIT ASSETS (continued)

2012 2011 2010 2009 2008

$ $ $ $ $

Plan assets 1,420,661 1,343,676 1,207,711 1,121,556 1,106,472

Defined benefit obligation (1,042,565) (944,234) (908,593) (878,909) (781,301)

Surplus 378,096 399,442 299,118 242,647 325,171

Experience adjustments

on plan liabilities (8,252) (7,568) (10,934) (13,317) (18,576)

Experience adjustments

on plan assets 13,199 82,855 27,349 (44,974) 16,942

Overseas plans – Other

The amounts recognised in the statement of financial position are as follows:

2012 2011

$ $

Fair value of plan assets 195,285 192,069

Present value of the defined benefit obligation (118,456) (113,591)

76,829 78,478

Unrecognised asset (44,789) (45,071)

Asset recognised in the statement of financial position 32,040 33,407

141forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

16 RETIREMENT BENEfIT ASSETS (continued)

The movement in the defined benefit obligation over the year is as follows:

2012 2011

$ $

Opening present value of defined benefit obligation 113,591 104,354

Current service cost 2,576 2,552

Interest cost 8,365 8,921

Plan participant contributions 2,691 3,659

Actuarial losses on obligation 7,783 658

Past service cost - vested benefits 664 -

Past service cost - non-vested benefits 267 -

Liabilities extinguished on settlement/cutailment (9,781) -

Exchange differences on foreign plans (1,170) 684

Benefits paid (6,530) (7,237)

Closing present value of defined benefit obligation 118,456 113,591

overseas plans – other

The movement in the fair value of plan assets for the year is as follows:

2012 2011

$ $

Opening fair value of plan assets 192,069 172,407

Expected return on plan assets 14,132 14,545

Actuarial gains on plan assets 4,593 5,437

Assets disbursed on settlement (11,181) -

Exchange differences on foreign plans (2,214) 1,031

Employer contributions 1,725 2,227

Plan participant contributions 2,691 3,659

Benefits paid (6,530) (7,237)

Closing fair value of plan assets at 30 September 95,285 192,069

142 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

16 RETIREMENT BENEfIT ASSETS (continued)

The amounts recognised in the consolidated income statement are as follows:

2012 2011

$ $

Current service cost 2,576 2,552

Interest cost 8,365 8,921

Expected return on plan assets (14,132) (14,545)

Past service benefit - vested benefits 664 -

Past service cost - non-vested benefits 267 -

Loss on curtailments and settlements 1,401 -

Total included in other income (859) (3,072)

Actual return on plan assets 18,725 19,982

Movement in the asset recognised in the consolidated statement of financial position:

Asset at beginning of year 33,407 24,428

Increase/(decrease) in recognisable asset 283 (1,447)

(Loss)/gain recognised in retained earnings (3,190) 4,779

Net pension income 854 3,072

Contributions paid 1,730 2,227

Exchange adjustment (1,044) 348

Asset at end of year 32,040 33,407

Overseas plans – Other

Actuarial (losses)/gains recognised in the comprehensive income before tax (3,190) 4,779

Cumulative actuarial losses recognised in the statement of

other comprehensive income before tax 283 (1,441)

143forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

16 RETIREMENT BENEfIT ASSETS (continued)

The principal actuarial assumptions used were:

Per annum Per annum

Discountrate 6%-10% 7%-10.5%

Expectedreturnonplanassets 6%-9% 7%-9%

Futuresalaryincreases 4%-7% 4%-7%

FutureNISincreases 3%-4% 3%-4%

Futurepensionincreases 0%-5% 0%-5%

Futurebonuses 0%-1% 0%-1%

The assumption with regard to the expected return on plan assets has been developed with reference to the average portfolio rate

expected to be earned by the Fund on the underlying asset mix over the lifetime of the obligations net of allowances for investment

expenses.

Assumptions regarding future mortality experience are set based on advice from published statistics and experience in each territory.

Overseas plans - BS&T

The amounts recognised in the statement of financial position are as follows:

2012 2011

$ $

Fair value of plan assets 468,827 468,881

Present value of the defined benefit obligation (481,744) (473,803)

Liability in the statement of financial position (12,917) (4,922)

The movement in the defined benefit obligation over the year is as follows:

Opening present value of defined benefit obligation 473,803 455,690

Current service cost 8,746 8,392

Interest cost 37,198 31,562

Actuarial losses/ (gains) on obligation (5,845) 393

Past service cost – vested benefits - 4,001

Liabilities extinguished on settlement/curtailment - (1,322)

Exchange differences on foreign plans 25 4,385

Benefits paid (32,182) (29,298)

Closing present value of defined benefit obligation at 30 September 481,745 473,803

144 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

16 RETIREMENT BENEfIT ASSETS (continued)

The movement in the fair value of plan assets for the year is as follows:

2012 2011

$ $

Opening fair value of plan assets 468,881 431,733

Expected return on plan assets 36,866 34,241

Actuarial (losses)/gains on plan assets (23,730) 8,780

Exchange differences on foreign plans - 4,279

Employer contributions 18,992 19,146

Benefits paid (32,182) (29,298)

Closing fair value of plan assets at 30 September 468,827 468,881

The amounts recognised in the consolidated income statement are as follows:

Current service cost 8,746 8,392

Interest cost 37,198 31,561

Expected return on plan assets (36,866) (34,241)

Past service cost - vested benefits - 4,001

Gains on curtailments and settlements - (1,322)

Expense recognised in the income statement 9,078 8,391

Actual return on plan assets 13,136 43,021

Overseas plans - BS&T

The liability recognised in the consolidated statement of financial position

is included in provisions for other liabilities and charges:

Liability at beginning of year (4,922) (23,957)

(Expense)/income recognised in other comprehensive income (17,884) 8,387

Net pension expense (9,078) (8,392)

Contributions paid 18,992 19,146

Exchange adjustment (25) (106)

Liability at end of year (12,917) (4,922)

145forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

16 RETIREMENT BENEfIT ASSETS (continued)

The principal actuarial assumptions used were:

Per annum Per annum

Discountrates 7.75% 8%

Expectedreturnonplanassets 7.75% 8%

Futuresalaryincreases 5.75% 6%

FutureNISincreases 3.50% 3.5%

Futurepensionincreases-pastservice 0.75% 1.00%

Futurepensionincreases-futureservice 0.75% 2.00%

Assumptions regarding future mortality experience were obtained from published statistics and experience in each territory.

The average life expectancy in years of a pensioner retiring at age 60 is as follows:

Male 82 82

Female 86 86

Plan assets are comprised as follows:

2012 2011

Cashandcashequivalents 11% 12%

Bonds 10% 9%

Mortgageloans 2% 2%

Realestate 16% 14%

Equities 57% 57%

Other 4% 6%

146 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

17 INvENToRIES

2012 2011

$ $

Finished goods and goods for resale 950,068 933,546

Goods in transit 176,721 222,686

Raw materials and consumables 79,089 100,045

Work in progress 46,311 30,495

1,252,189 1,286,772

The cost of inventories recognised as expense and included in ‘cost of sales’ amounted to $6,672 (2011: $5,695).

18 TRADE AND oTHER RECEIvABLES

2012 2011

$ $

Trade receivables 860,642 916,017

Receivables with related parties 18,301 18,966

Less: provision for impairment of receivables (100,047) (122,753)

Trade receivables - net 778,896 812,230

Other debtors and prepayments 838,047 759,346

Less: provision for impairment (4,851) (4,155)

Other debtors and prepayments – net 833,196 755,191

1,612,092 1,567,421

Given the short-term nature of the trade and other receivables, the fair value approximates the carrying amount of these assets. There

is no concentration of credit risk with respect to trade receivables, as the Group has a large number of customers, regionally dispersed.

147forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

18 TRADE AND oTHER RECEIvABLES (continued)

Aging analysis – financial assets

Past Due But Not Impaired < 30 days 31 – 60 days 61 – 90 days >90 days Total $ $ $ $ $

2012

Trade receivables

- continuing operations 121,034 109,093 56,106 58,054 344,287

< 1 year 1- 2 years 2- 3 years Total

Instalment credit and other loans 2,641 4,560 6,004 13,205

< 30 days 31 – 60 days 61 – 90 days >90 days Total $ $ $ $ $

2011

Trade receivables

- continuing operations 27,968 117,848 44,016 58,734 248,566

< 1 year 1- 2 years 2- 3 years Total

Instalment credit and other loans 26,069 218 - 26,287

Provision for Impairment

Written Unused opening Provision for off during provisions Closing Balance Impairment the year reversed balance $ $ $ $ $

2012

Instalment credit and other

loans 7,108 1,873 (1,271) - 7,710

Trade receivables 122,753 12,951 (26,520) (9,137) 100,047

Other debtors and

prepayments 4,155 913 (217) - 4,851

134,016 15,737 (28,008) (9,137) 112,608

148 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

18 TRADE AND oTHER RECEIvABLES (continued)

Provision for Impairment

Written Unused opening Provision for off during provisions Closing Balance Impairment the year reversed balance

$ $ $ $ $

2011

Instalment credit and other

loans 5,898 3,375 (2,165) - - 7,108

Trade receivables 134,737

31,116 (8,037) (10,132)

(24,931) 122,753

Other debtors and

prepayments 3,165

1,085 (95)

- - 4,155

143,800

35,576 (10,297) (10,132)

(24,931) 134,016

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable

mentioned above.

The carrying amounts of the Group’s trade and other receivables are reported in the following currencies:

2012 2011

$ $

Trinidad and Tobago dollars 562,402 523,677

Barbados dollars 841,593 847,440

Jamaican dollars 109,938 105,636

Guyanese dollars 93,493 84,405

Other 4,666 6,263

1,612,092 1,567,421

149forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

19 Cash And Cash Equivalents 2012 2011

$ $

Cash at bank and in hand 804,303

715,562

Short-term bank deposits 512,187

415,938

1,316,490 1,131,500

Transferred to disposal group classified as held for sale (Note 35)

Cash at bank and in hand

(11,753)

(8,358)

Group Total 1,304,737

1,123,142

150 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

Theeffectiveinterestrateonshort-termbankdepositswas1%(2011:1%).Thesedepositshaveanaveragematurityof90days.

Cash, cash equivalents and bank overdrafts include the following for the purposes of the cash flow statement:

Continuing Operations 2012

2011

$ $

Cash and cash equivalents 1,304,737

1,123,142

Bank overdrafts

(4,038)

(4,616)

Cash, net of bank overdrafts 1,300,699

1,118,526

19 Cash And Cash Equivalents (continued)

Transferred to disposal group classified as held for sale (Note 35)

151forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2012 2011

$ $

Cash and cash equivalents 11,753

8,358

Bank overdrafts (18,805)

(15,912)

Group Total

Cash and cash equivalents 1,316,490

1,131,500

Bank overdrafts (22,843)

(20,528)

Cash, net of bank overdrafts 1,293,647 1,110,972

20 Share Capital

Number Of Shares Ordinary Shares

Total

# $ $

At 30 September 2010 96,595 538,220

538,220

Employee share option scheme

- value of services provided - 85

85

Share option exercised 54 1,876

1,876

At 30 September 2011 96,649 540,181

540,181

At 30 September 2011 96,649 540,181

540,181

Share option exercised 353 13,063

13,063

Shares to be issued 33 1,244

1,244

152 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

At 30 September 2012 97,035 554,488

554,488

The total authorised number of ordinary shares is unlimited with no par value. All issued shares are fully

paid.

20 Share Capital (continued)

Share options

Effective 1 October 2004, the Parent company introduced an executive share option plan. Share options will be granted to individuals

employed by the Parent company or its subsidiaries in a senior capacity including directors holding any executive office with the

company or any of its subsidiaries. Options are granted at the average market price of the shares in the calendar month prior to the

beginning of the applicable performance period and are exercisable at that price. Options are exercisable beginning three years from

the date of grant and have a contractual option term of three years. When the options are exercised, the proceeds received net of any

transaction costs are credited to share capital.

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

2012 2011

000’s 000’s

Options Options

At 1 October 1,754 1,808

Forfeited (52) -

Exercised (353) (54)

To be issued (33) -

At 30 September 1,316 1,754

Share options outstanding at the end of the year have the following expiry date and exercise prices:

Expiry date – 30 September Exercise Options

Price $ 2012 2011

2011 $ 49.39 -

483

2012 $ 37.03 -

386

2013 $ 47.52 416

442

153forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

2014 $ 58.33 417

443

833 1,754

The fair value of options granted during 2011 determined using the Binomial valuation model was $0.58. The significant inputs into the

model were share price of $49.00 at the grant date, exercise price shown above, standard deviation of expected share price returns

of6%,optionlifedisclosedabove,andannualrisk-freeinterestrateof5.5%,andexpectedvolatility6%.Nooptionsweregranted

in 2012.

21 Dividends Per Share

2012 2011

$ $

Interim paid – 45 cents per share (2011 – 43 cents) 45,085 43,064

Final paid – 86 cents per share (2011 – 86 cents) 86,135 86,128

131,220 129,192

On 20 December, 2012 the Board of Directors of Neal & Massy Holdings Limited declared a final dividend per share of 105 cents, bringing

the total dividends per share for the financial year ended 30 September, 2012 to $1.50 (2011 - $1.29).

22 Non-controlling interests 2012 2011

$ $

Balance at beginning of year 219,062 453,016

Disposals (3,190) (49,491)

Share of net profit of subsidiaries 23,303 18,551

Minority share of impairment provision - (146,144)

Dividends paid (47,472) (36,712)

154 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

Other movements (55,942) (20,158)

Balance at end of year 135,761 219,062

23 Borrowings

2012 2011

$ $

Continuing Operations

Fixed interest mortgage loans 64,625 70,076

Other secured advances 737,679 317,019

Unsecured advances 649,634 1,026,144

Bank overdrafts and other short term borrowings

4,038 4,616

Total borrowings 1,455,976 1,417,855

Less short term borrowings (391,230) (248,061)

Medium and long term borrowings 1,064,746 1,169,794

23 Borrowings (continued)

Short term borrowings comprise:

2012 2011

Continuing operations $ $

Bank overdrafts and other short term borrowings 4,038

4,616

Current loan instalments 387,192

243,445

155forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

391,230

248,061

Transferred to disposal group classified as held for sale (Note 35)

Bank overdrafts and other short term borrowings 18,805

15,912

Current loan instalments 378,212

464,990

397,017

480,902

Total

Bank overdrafts and other short term borrowings 22,843

20,528

Current loan instalments 765,404

708,435

788,247

728,963

Total borrowings include secured liabilities of $737,679 (2011: 387,095). Secured liabilities for discontinued operations amounted to

$378,331 (2011:$465,505). Bank borrowings are secured by the land and buildings of the Group (Note 6).

The exposure of the Group’s borrowings to interest rate changes and the contractual repricing dates at the statement of financial position

dates are as follows:

2012 2011

Continuing operations $ $

6 months or less

4,038 4,616

6-12 months 387,192 243,445

1-5 years 695,070 790,784

Over 5 years 369,676 379,010

1,455,976 1,417,855

156 2012

nOtes tO tHe summarY COnsOLidated finanCiaL statements

September 30, 2012

Expressed in Thousands of Trinidad and Tobago dollars

157forward focused

nOtes tO tHe summarY COnsOLidated finanCiaL statements

158 2012