Point Lisas Industrial Port Development Corporation Limited

Independent auditor’s report (continued)Key audit matterHow our audit addressed the key audit matterValuation of investment properties (Parent &Group)Refer to note 6 to the parent and consolidatedfinancial statements for disclosures of relatedaccounting policies and balancesInvestment properties, carried at fair value, amountedto TT 2,219 million as at 31 December 2021 for theParent and Group, which represented 70% of theirtotal assets. Included in the parent and consolidatedstatement of profit or loss and other comprehensiveincome is TT 25 million of fair value gains arisingfrom the revaluation of these properties.The investment properties, principally comprisingfreehold and leasehold land, represent a significantportion of the asset base of the Parent and Group.Management uses an external valuation expert tovalue these assets annually at fair value usingvaluation models, which include unobservable inputs.The valuation is based upon the Income Approachand the Market Approach.The most significant inputs into these valuationmodels are future rental cash inflows based on theactual location and quality of the properties andsupported by the terms of any existing leases andmarket prices of land, which incorporate extensionassumptions, which are then discounted to presentvalue.The areas which required judgement relate to thelease extension clauses, which allow for renewal foran additional 30 years, and the discount rates appliedto future cash flows.The critical data inputs into the calculation are datafrom the lease contracts, including land size, rentalrates, currency of agreement and lease tenure.The existence of significant estimation uncertainty asit pertains to the lease renewal, coupled with thematerial value of the properties, resulted in this beingan audit focus area.The approach to addressing the matter, with the assistanceof an auditor's expert, involved the following procedures,amongst others: Updated our understanding of management’s approachto performing the fair value assessment. This includedupdating our understanding of the process by whichmanagement’s key assumptions and methodologies weredeveloped and assessing their appropriateness. Assessed the independence and competence ofmanagement’s valuation expert. Assessed the likelihood of the continued occupation andextension of the leases using available market data andevaluated the expert’s assumptions focusing on thetenants’ ability and intent to continue their operations atthe leased properties, taking into account publiclyavailable data impacting this assumption such as nationalgas reserves and the property’s commercial attributes.Inspected, on a sample basis, historical trends ofrenewals of tenant leases. Tested a sample of tenants to determine whether theirrental payments were timely and whether there were anyindicators that would make it unlikely that they would beable to continue with timely payments. Compared management’s discount rates to local statutorypolicy and to the yield of a Government of Trinidad andTobago bond for a similar tenor, as land is considered tohave minimal risk. Tested, on a sample basis, the accuracy of the datainputs into the valuation model by verifying the size ofproperty, rent rates, currency of agreement and rentexpiry dates against signed contractual lease agreementsand related addendums as applicable. Tested the mathematical accuracy of the calculationsused within the model.Based on the procedures performed, the valuation ofinvestment properties in the parent and consolidated financialstatements was, in our view, not unreasonable.K(5)

Independent auditor’s report (continued)Key audit matterHow our audit addressed the key audit matterImpairment assessment of non-financial assets (Parent &Group)Refer to notes 3, 5 and 21 to the parent and consolidatedfinancial statements for disclosures of related accountingpolicies and balances.At the reporting date, the Parent & Group’s marketcapitalisation was significantly less than the carrying amountof its net assets and as per Parent and Group’s accountingpolicy, this is an indicator of potential impairment. As such,an impairment assessment was performed by management.Management determined that the port and estate operationsare integrally linked and comprise a single cash generatingunit. As some of the assets are already carried at fair value,the main focus of management’s impairment assessmentwas on those assets which are not carried at fair value. Inassessing potential impairment, management performedprocedures to determine the recoverable amount of certain ofthose assets. This related primarily to TT 225 million ofberths and piers, included in property, plant and equipmenton the parent and consolidated statement of financialposition.Due to the specialised nature of the berths and piers,management engaged external independent valuators in2020 who used the depreciated replacement cost (DRC)approach to determine fair value less cost of disposal forimpairment purposes. In 2021, management, using internalexpertise, prepared a report to demonstrate that there beenno material changes in the inputs and assumptions used todetermine the DRC in 2020. The 2020 report from theexternal valuator was referenced in management’s 2021report.The DRC approach involves estimation of the replacementcost new (RCN) defined as the current cost of a similar newasset having the nearest equivalent utility as the asset beingappraised, as well as deductions for obsolescence.Our approach to addressing the matter, with theassistance of our valuation expert, involved thefollowing procedures, amongst others: Evaluated the method used by management toperform the impairment assessment. This includedupdating our understanding of the process bywhich management’s key assumptions andmethodologies were developed and assessingtheir appropriateness. Assessed the competence of those involved in theprocess. Agreed certain information used in the valuationinputs and assumptions such as indirect costs,berth specifications, the depreciation rates, therates for finance cost and entrepreneurial profit torelevant source or industry data and supportingdocuments. Developed an independent expectation range ofthe DRC and compared to management’srecorded estimate. Tested the mathematical accuracy of thecalculations used within the model.Based on the procedures performed, the inputs andassumptions used in the impairment assessment ofnon-financial assets were, in our view, notunreasonable.Significant assumptions utilised include: Indirect costs including engineering, architect, and otherprofessional fees Construction finance Entrepreneurial profitAs the recoverable amount derived from the valuation of theberths and piers was higher than the total carrying amount ofthe assets which are not carried at fair value, managementultimately determined no impairment provision was required.Based on the magnitude and the high degree of estimationuncertainty in assessing the fair values less cost of disposalof the assets assessed for impairment, this was an area offocus for the audit.audit matterHow our audit addressed the key audit matter(6)

Independent auditor’s report (continued)Other informationManagement is responsible for the other information. The other information comprises the Annual Report(but does not include the parent and consolidated financial statements and our auditor’s report thereon),which is expected to be made available to us after the date of this auditor’s report.Our opinion on the parent and consolidated financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon.In connection with our audit of the parent and consolidated financial statements, our responsibility is toread the other information identified above when it becomes available and, in doing so, consider whetherthe other information is materially inconsistent with the parent and consolidated financial statements or ourknowledge obtained in the audit, or otherwise appears to be materially misstated.When we read the Annual Report, if we conclude that there is a material misstatement therein, we arerequired to communicate the matter to those charged with governance.Responsibilities of management and those charged with governance for the parent andconsolidated financial statementsManagement is responsible for the preparation and fair presentation of the parent and consolidatedfinancial statements in accordance with International Financial Reporting Standards and for such internalcontrol as management determines is necessary to enable the preparation of the parent and consolidatedfinancial statements that are free from material misstatement, whether due to fraud or error.In preparing the parent and consolidated financial statements, management is responsible for assessingthe Parent and Group’s ability to continue as a going concern, disclosing, as applicable, matters related togoing concern and using the going concern basis of accounting unless management either intends toliquidate the Parent or Group or to cease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Parent and Group’s financial reportingprocess.Auditor’s responsibilities for the audit of the parent and consolidated financial statementsOur objectives are to obtain reasonable assurance about whether the parent and consolidated financialstatements as a whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these parent and consolidated financial statements.As part of an audit in accordance with ISAs, we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the parent and consolidated financialstatements, whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.(7)

Independent auditor’s report (continued)Auditor’s responsibilities for the audit of the parent and consolidated financial statements(continued) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Parent and Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Parent and Group’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’s report to the related disclosures in the parent and consolidated financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditions maycause the Parent or Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the parent and consolidated financialstatements, including the disclosures, and whether the parent and consolidated financial statementsrepresent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, actionstaken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the parent and consolidated financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor’s report unlesslaw or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,we determine that a matter should not be communicated in our report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of such communication.The engagement partner on the audit resulting in this independent auditor’s report is Wendell Ramoutar.Port of SpainTrinidad, West Indies25 March 2022(8)

Point Lisas Industrial Port Development Corporation LimitedParent and Consolidated Statement of Financial Position(Expressed in Thousands of Trinidad and Tobago Dollars)ParentAs at31 December20202021 5,640283,229NotesAssetsNon-current assetsProperty, plant and equipmentInvestment propertiesDeferred income tax assetsRetirement benefit assetInvestment in subsidiaryFinancial asset at amortised costFinancial assets at fair value throughother comprehensive Total assets3,186,7623,164,193Equity and liabilitiesEquity attributable to owners of the parentStated capital12Treasury shares14Revaluation reserves15 b.Investment revaluation reserve15 c.Retained 9325,640Current assetsInventoryTrade and other receivablesTaxation recoverableCash and cash equivalentsNon-current liabilitiesLong and medium-term borrowingsRetirement benefit obligationCasual employee retirement benefitDeferred income tax liabilitiesDeferred lease rental income568 c.18 a.1 a.7GroupAs at31 December20212020 7 b.910111618 a.18 b.8 c.25(9)

datedin ThousandsDevelopmentStatementof TrinidadandCorporationof arentGroupAs atAs at31 December202031 December20212021 NotesCurrent13,26313,2644,5774,57845,83848,8362 7314 86266 40971 540392 049354 7693162091The notesTradeon pages2022,theseleaseCurrentthe BoardincomeTotalliabilitiesTotalequityof Directorsand consolidated4-r.in!a54z'irentaland 748,27045,612tax liabilitiesand'l 5 to 74 are an integralparent liabilitiesand medium-termDeferred3184874On 24 MarchauthorisedLong2020 of PointLisasparent66193354 21 g391 ,833and bilitiespart of thesefinancial4 878Port onLimitedfor issue.DirectorDirector(10)

Point Lisas Industrial Port Development Corporation LimitedParent and Consolidated Statement of Profit or Loss and Other ComprehensiveIncome(Expressed in Thousands of Trinidad and Tobago Dollars)ParentYear ended31 December20202021 Notes306,526(94,686)320,124(100,824)RevenueCost of providing 0)Operating profitInvestment incomeFinance costs95,210(7,764)46,392(6,441)Profit before taxationTaxation charge87,44639,951Profit for the year1922Gross profitUnrealised fair value gains oninvestment propertiesAdministrative expensesOther operating expenses622227 c.8 a.GroupYear ended31 December20212020 )40,07187,543Other comprehensive income1,4841,49250519920,8731,537Items that will not be reclassified toprofit or lossChange in value of financial assetsat fair value through othercomprehensive incomeDeferred tax on accelerated taxdepreciation – property plant, andequipment revalued and siteimprovementsRemeasurements of:Retirement benefit (asset)/obligationCasual employee retirement benefit89,46764,422Total comprehensive income for the year(167)5697 b.5698 c.1,4921,48420,8731,53750519964,54289,56418 a.18 b.(167)Earnings per share222 101 Basic earnings per share13102 221 221 101 Diluted earnings per share13101 221 The notes on pages 15 to 74 are an integral part of these parent and consolidated financial statements.(11)

Point Lisas Industrial Port Development Corporation LimitedParent and Consolidated Statement of Changes in Equity(Expressed in Thousands of Trinidad and Tobago Dollars)NotesParentYear ended 31 December 2021Balance as at 1 January 2021Comprehensive income- Profit for the yearOther comprehensive income- Transfer of revaluation reserve to retainedearnings15- Change in value of financial assets at fairvalue through other comprehensive income7 b.- Deferred tax on accelerated tax depreciation– property, plant and equipment revaluedand site improvements8 c.- Remeasurements of retirement benefitobligation18 a.- Remeasurements of casual employeeretirement benefit18 b.Transactions with owners- Dividends12 b.Balance as at 31 December 2021Year ended 31 December 2020Balance as at 1 January 2020Comprehensive income- Profit for the yearOther comprehensive income- Transfer of revaluation reserve to retainedearnings15- Change in value of financial assets at fairvalue through other comprehensive income7 b.- Deferred tax on accelerated tax depreciation– property, plant and equipment revaluedand site improvements8 c.- Remeasurements of retirement benefitobligation18 a.- Remeasurements of casual employeeretirement benefit18 b.Transactions with owners- Dividends12 b.Balance as at 31 December 2020Statedcapital InvestmentRevaluation revaluationreservesreserves 139,968254,556487--------(3,482)Treasuryshares (32)Retainedearnings Shareholders’equity 2,375,063(167)(5,548)2,770,042The notes on pages 15 to 74 are an integral part of these parent and consolidated financial statements.(12)

Point Lisas Industrial Port Development Corporation LimitedParent and Consolidated Statement of Changes in Equity (continued)(Expressed in Thousands of Trinidad and Tobago Dollars)NotesGroupYear ended 31 December 2021Balance as at 1

September 1966 under the laws of the Republic of Trinidad and Tobago and has a primary listing on the Trinidad and Tobago Stock Exchange. Its registered office is located at PLIPDECO House, Orinoco Drive, Point Lisas Industrial Estate, Point Lisas, Couva, Trinidad, West Indies. The Corporation Sole