National Enterprises : 29 Dec 2022 – National Enterprises Limited – Audited Condensed Consolidated Financial Statements for the period ended September 30, 2022

National Enterprises Limited

Audited Financial Statements

For the period from April 1, 2021 to September 30, 2022

National Enterprises Limited

Audited Financial Statements

For period from April 1, 2021 to September 30, 2022 (Expressed in Thousands of Trinidad and Tobago Dollars)

Table of Contents

	Page(s)
Statement of Management's Responsibilities	1
Independent Auditors' Report	2 - 5
Statement of Financial Position	6
Statement of Comprehensive Income	7
Statement of Changes in Equity	8
Statement of Cash Flows	9
Notes to the Financial Statements	10 - 48

National Enterprises Limited

Statement of Management's Responsibilities

For the period from April 1, 2021 to September 30, 2022

Management is responsible for the following:

• Preparing and fairly presenting the accompanying financial statements of National Enterprises Limited (the "Company"), which comprise the statement of financial position as at September 30, 2022; the statements of comprehensive income, changes in equity and cash flows for the period from April 1, 2021 to September 30, 2022, and a summary of significant accounting policies and other explanatory information;
• Ensuring that the Company keeps proper accounting records;
• Selecting appropriate accounting policies and applying them in a consistent manner;
• Implementing, monitoring and evaluating the system of internal control that assures security of the Company's assets, detection/prevention of fraud, and the achievement of Company's operational efficiencies;
• Ensuring that the system of internal control operating effectively during the reporting period;
• Producing reliable financial reporting that comply with laws and regulations; and
• Using reasonable and prudent judgement in the determination of estimates.

In preparing these financial statements, management utilized International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances.

Nothing has come to the attention of management to indicate that the Company will not remain a going concern for the next twelve months from the reporting date; or up to the date the accompanying financial statements have been authorized for issue, if later.

Management affirms that it has carried out its responsibilities as outlined above.

___________________________	_____________________________
Charles V Maynard	Venita Ramlal
General Manager	Manager - Investment and Accounting
December 28, 2022	December 28, 2022

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Tel: [phone]	2nd Floor CIC Building
Fax: [phone]	122-124 Frederick Street
www.bdo.tt	Port of Spain, 100825
	Trinidad and Tobago

Independent Auditor's Report

To the Shareholders of

National Enterprises Limited

Opinion

We have audited the financial statements of National Enterprises Limited (the "Company") which comprise the statement of financial position as at September 30, 2022, the related statements of comprehensive income, changes in equity and cash flows for the period from April 1, 2021 to September 30, 2022 and the accompanying notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at September 30, 2022, and of its financial performance and its cash flows for the period from April 1, 2021 to September 30, 2022 in accordance with International Financial Reporting Standards ("IFRS").

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code") and we have fulfilled our ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the period from April 1, 2021 to September 30, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Fair value of investments in subsidiaries, joint ventures and associates

Key Audit Matter

As at September 30, 2022, the Company held significant investments in subsidiaries, associates and joint ventures which were carried at a total fair value of $3.43 billion as disclosed in notes 6 and 7 to the financial statements.

97% or $3.33 billion of the aforementioned balance represents the carrying value of unquoted investments for which no published prices are available, and which have little or no observable inputs.

With the assistance of independent external valuators, the Company applied recognized valuation techniques such as the market approach, the income approach or the adjusted net asset value method, that are consistent with generally accepted standards of valuation, to determine the fair value of these investments.

The fair value assessment requires significant judgement by management, in particular with regard to key input factors such as earnings multiples, liquidity discounts, discount rates or the selection of valuation multiples.

As this balance is significant to the financial statements, we consider the valuation of these investments to be a significant key audit matter.

BDO, a Trinidad and Tobago partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the International BDO
network of independent member firms.	- 2 -

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

Independent Auditor's Report (continued)

Key Audit Matters (continued)

1. Fair value of investments in subsidiaries, joint ventures and associates (continued) Audit Response
   Our procedures in relation to the valuation of these investments included the following:
2. • Evaluating the independent professional valuator's competence, capabilities, and objectivity.
   • Assessing the acceptability and consistency of the approaches and methodologies used.
   • Assessing the reasonableness of the assumptions used and applications thereof.
   • Evaluating the suitability of the choice of models used for the various entities, including consistency of application across entities and prior reporting periods.
   • Verifying the model inputs to source data on a sample basis.
   • Assessing the application and quantification of premiums and discounts, including discounts for lack of marketability.
   • Verifying the mathematical accuracy of the valuation computations.
   • Performing "stand-back" reviews, including discussions and enquiries with the valuer, to ensure that the final fair value reflected the assimilation of facts presented as inputs and assumptions to the valuation models.
3. Applicability of IFRS 10 consolidation exemption

Key Audit Matter

As at September 30, 2022, the Company held three subsidiaries whose financial statements were not consolidated with those of the Company in accordance with the exemption requirements of IFRS 10. Refer to Note 4.2.

IFRS 10 does not require an investment entity to consolidate its subsidiaries and requires the entity to measure the investments at fair value through profit or loss.

The Company is required to make significant judgements and assumptions in determining whether it meets the definition of an investment entity in accordance with IFRS 10.

Given that this is a matter of significant judgement which significantly affects the fair presentation of the financial statements, we consider it to be a significant key audit matter.

Audit Response

Our procedures in relation to assessing the applicability of the IFRS 10 consolidation exemption included the following:

• Revisiting and evaluating the IFRS 10 consolidation exemption criteria and requirements.
• Critically assessing management's assessment of the Company's qualification as an investment entity.
• Reviewing the completeness of the disclosures required by IFRS 12 for investment entities.
• Consulting with technical advisors on the interpretation of the relevant IFRS.

Other Matters

The financial statements of the Company for the year ended March 31, 2021, were audited by another auditor who expressed an unmodified opinion on those statements on June 28, 2021.

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