Grenada Breweries Ltd Annual Report 2020 by TTDigitalPublications

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

TABLE OF CONTENTS Board of Directors ____________________________________ 2-3 Report of the Chairman _______________________________ 4-12 Corporate Information __________________________________ 13 CSR 2020______________________________________________ 14 Report of the Directors _________________________________ 15 Notice of Meeting ___________________________________ 16-17 Financial Highlights_____________________________________ 18 Independent Auditors’ Report ________________________ 19-21 Statement of Financial Position ______________________ 22 Statement of Comprehensive Income_________________ 23 Statement of Changes in Equity______________________ 23 Statement of Cash Flows ____________________________ 24 Notes to the Financial Statements ____________________ 25-47 Form of Proxy _________________________________________ 48

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

BOARD OF DIRECTORS 4

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPOR T OF THE REPORT

CHAIRMAN

ANTHONY N. SABGA III

INTRODUCTION I feel a great sense of pride in what Carib Brewery Grenada (CBG) has achieved this year, particularly from the month of March 2020 onwards. Like every other Company, we encountered significant challenges as business operations and supply chains were disrupted; and normal work routines and social structures were interrupted.We demonstrated, conclusively, that CBG remains strong, stable, and capable of delivering for our stakeholders – our employees, our shareholders, our clients, and our communities. We were agile in our response and implemented proactive action to protect our employees’ and customers’ health and safety, maintain financial and operational integrity, protect shareholder value, and support our communities. Our broad strategy was unchanged throughout while adapting to the new dynamics arising out of this crisis, allowing us to navigate this period confidently and rigorously. With the latter ten months being under extremely challenging restrictions, the past year’s performance highlighted the resilience of our business model and also demonstrated management’s continued focus on the execution of our business plans and strategies. As expected, under these difficult circumstances, sales contracted and resulted in revenues of $58.3M, a decline on the prior year.Nonetheless, CBG maintained customer’s confidence through our quality products and world-class service to deliver a profit before tax of $7.1M, a decrease on 2019.

REPORT OF THE CHAIRMAN Undeniably, none of this would be possible without the expert and dedicated contributions of our employees. As soon as the potential impact of the pandemic became clear, our priority has been to look after our people, protecting health and wellbeing while allowing them to work productively. I thank each of our dedicated employees for their support amidst the uncertainty and upheaval due to COVID-19.

GRENADA BREWERIES LIMITED NOW CARIB BREWERY (GRENADA) LIMITED - A NEW CORPORATE IDENTITY During 2020, a new corporate brand identity which included the change of name to Carib Brewery (Grenada) Limited was approved. This change was approved by shareholders at the Annual Meeting on August 28 th 2020 and by the Registrar of Companies on October 1st 2020. Notwithstanding this change, our company remains the proud home of award-winning beverages, an icon in the local market and a respected employer. We have joined Ansa McAL’s united family of Breweries (Grenada, Trinidad and Tobago, St. Kitts and Nevis and Florida Beer Company) while remaining a vibrant part of our island’s soul and culture that has been woven into the social fabric of the greater region. We take pride in our Brewery, our brands, our people and a proud manufacturer of world class brands of beverages.

ECONOMIC OUTLOOK Grenada relies on tourism as its main source of foreign exchange, but in recent years the country has become increasingly dependent on revenue generated under its citizenship by investment programs. This, combined with a strong performance in construction and manufacturing, with development of tourism and higher education, contributed to growth in national output. Before the COVID-19 crisis, analysts anticipated that Grenada’s 2020 growth rate would be above the projected 3.6 percent average for the members of the Eastern Caribbean Currency Union (ECCU). However, in 2020, the Grenadian economy suffered one of the sharpest contractions in history due to the COVID-19 pandemic. According to IMF estimates, GDP growth contracted by 11.8% in 2020, mainly due to international travel restrictions and the suspension of in-class learning at St. George’s University. In October 2020, the IMF forecasted a GDP growth estimated at 3% in 2021 and 5.1% in 2022, subject to post-pandemic global economic recovery.

COMPANY PERFORMANCE While the Company operated during the 2020 financial year under varying levels of lockdown and restrictions due to the COVID-19 crisis, it demonstrated its resilience by creating value for stakeholders, including shareholders, customers, employees, suppliers, and communities. Regrettably, we have not been immune to the impact of COVID-19 as Government restrictions to keep our communities safe, impacted our customers’ activities, which led to changes in consumers’ purchasing behavior and unstable

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN sales. Carib Brewery Grenada was especially hit hard during the national lockdown that resulted in ‘ and other the closure of all bars, restaurants, cafes, out-of-home channels, as well as, restrictions placed on the sale of our leading products, Beers and Stouts. To meet COVID-19 requirements, we embraced our responsibility and moved quickly to keep our people safe and our operations compliant. Our collaboration with our parent company, government, trade union, and other stakeholders was critical to ensuring continuity of supply to our customers. In the face of this, our people’s tenacity enabled the Company to achieve these financial results as we navigated the impact of COVID-19. We have maintained our unwavering commitment to ensuring our customers’ supply of our trusted products throughout this uncertain time. Pleasingly, our robust business model helped to mitigate the impact of these challenges on our people and our Company. In light of the challenges we faced throughout the year, the CBG’s team delivered resilient financial results as we remained focused on our strategy. We generated Net Sales Revenues of $58.3M, a notable result but an understandable decline on the previous year. Nonetheless, our Beers, Stouts and Malts remained the market leaders, and their strength augurs well for the future of the Company while our Soft Drinks sales continue to be affected by the trend towards disposable packaging. Additionally, our outbound strategy with associated overseas companies generated improvements in export sales against prior year. Positively, we continued with innovations, launching the Caribbean’s first Craft Indian Pale Ale (IPA), Hurricane Reef, sold in both the local and export markets and demonstrating the continued expansion of our business and a reason to be optimistic about the future.

Both cost of sales as a percent of headline revenues and administration, and selling expenses increased on the prior year due to higher depreciation, amortization, and investments in the repair and maintenance of plant and delivery vehicles. Additionally, costs were incurred in protecting the health and safety of our communities through our ‘Hands in Unity’ Project and our employees including, maintaining all our full-time employees with no loss of benefits. Provisions were also made for receivable impairments while we worked with all customers to manage additional credit risks. These factors combined to result in a Profit Before Tax of $7.1M, a 7% decline on the prior year of $9.8M. A commendable result based on the prevailing economic conditions. Despite the impact of COVID-19 on our earnings, cash generated increased, resulting in a cash balance of $14.5M against a balance of $9.5M in 2019, after a $4.9M payout to our valued shareholders and $8.8M in capital expenditure and is a result of our astute working capital management. We are confident that our cash position will enable us to navigate through this current uncertain period successfully.

DIVIDEND DECLARATION The Board is committed to investing in the business and maintaining our strong record for paying dividends each year. Our substantial cash balances allow us to maintain our progressive shareholders’ returns. Nonetheless, we must remain prudent and aware of the business’s financial needs in these difficult economic times. After performing a comprehensive review of the current and future cash flows, the risks and potential unpredictability introduced by COVID-19, the outlook for future growth and profitability, your directors have agreed to distribute some of the cash to you, our treasured shareholders, by declaring an ordinary dividend of EC$0.85 per share.

CAPITAL INVESTMENTS

Production of the Caribbean’s first craft Indian Pale Ale (IPA) Hurricane Reef

Effective and efficient CAPEX investment has been one of the pillars of our successes and persistent shareholder returns. Our objectives when

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN managing capital are to safeguard our ability to continue as a viable business and create value for all stakeholders. Our resulting substantial cash balances empower us to invest in the necessary infrastructure, an essential source of competitive advantage that generates positive benefits to all stakeholders over the near and long term. In 2020 the Company invested $8.8M in Capital Expenditure. Our past five-year investment amounted to $34.7M, a testament to our strategy of achieving organic growth, maximizing new market and product opportunities, thus increasing our value creation. These investments included modernization of our distribution and sales fleet, capacity expansion, crates, bottles combined with quality assurance, production and marketing equipment. They enable us to be well-positioned to benefit from the strength of our home markets and generate further growth in the regional market.

CORPORATE CITIZENSHIP AND ENVIRONMENTAL STEWARDSHIP The COVID-19 pandemic has had and continues to have a devasting impact on our country and its people, and we extend our condolences to those who have lost loved ones, and our thoughts are with everyone who has suffered personal or financial hardship during this difficult time. I also want to express our thanks to all the frontline service providers that have served us so well in these difficult times. Carib Brewery Grenada’s strategy recognizes the importance of corporate citizenship as a critical enabler in creating long-term value for all stakeholders. Responsible environmental and social practices support business resilience, enhance the reputation of our brands, and benefit all stakeholders, including employees, customers, shareholders, and the communities in which we trade. Our business plays a crucial role in driving socio-economic development and transformation by providing jobs and corporate social investments. These contributions will be particularly relevant in supporting the recovery of society, post COVID19.

No business exists in isolation, and we must understand the macro-social, economic, and environmental issues affecting our industry and stakeholders. Through numerous contributions, we strive to make a unique and positive impact in our communities and have a: notable history of collaboration with organizations that meet a diverse set of needs. Staying abreast of these needs, help shape our strategy and informs our response. During the first quarter of 2020, we continued our support to the community by contributing to sports and culture, including Grenada’s Learn to Swim Programme, Schools’ Sporting activities, and numerous grassroots football and cricket competitions. We were one of the main sponsors of Carriacou Carnival, the sole major cultural festival in 2020. The disruptions in 2020 made it difficult to implement our apprenticeship schemes and workbased learning modes with T.A. Marryshow Community College and St. George’s University. We recognized that the COVID-19 pandemic created the most significant disruption of education systems in history, with closures of schools and other learning institutions and the fact that access to online learning has never been more critical. To mitigate against the potentially devastating consequence of the pandemic with education and to prevent the learning crisis from becoming a generational catastrophe, CBG, in collaboration with the Ansa McAL Foundation, donated 100 Amazon 7 Fire tablets to the Ministry of Education. These tablets are designed to provide access to remote learning to the most

Minister of Education, Human Resource Development, Religious Affairs and Information, the Honourable Emmalin Pierre receives tablets from Mr. Ron Antoine, Managing Director of Carib Brewery (Grenada) Limited and representative of the Ansa McAL Foundation

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN vulnerable students in the community and were purchased with funds raised from the ‘ONE YARD’ virtual benefit concert aired on Friday 30th October 2020. This initiative reiterates our commitment to the development of our youths and support of education and training continuity, to drive economic progress and sustainable development, and is a reminder of the essential role we have in society.

financial year with minimal disruption to its governance processes is evidence that its systems, structures, and people are strong and robust. Technology was employed to enable efficient work from home, and meetings were conducted using secure virtual meeting platforms. We will continue to investigate ways of using software to improve working, specifically for enhancing efficiency in communication and greater accountability.

The Company has always been committed to Corporate Social Responsibility, and our ‘Hands in Unity’ Project is the perfect exemplar of the Company’s commitment to giving back to the community and contributing to the health, safety, and recovery of our nation. Beneficiaries of the locally manufactured hand sanitizer included the Ministry of Health, Royal Grenada Police Force, Her Majesty’s Prison, and the Belair Home for Children and Adolescents. Representatives of each entity expressed their gratitude and hailed the initiative as noble and timely, especially as hand sanitizers have become very difficult to acquire.

Elected by the shareholders, the directors are responsible for the sustainability of the business within the context of the economy, society, and the environment by fulfilling a range of legal duties while being the primary source of effective, ethical leadership with the Company. The Board is required to approve strategic plans, monitor operational performance, ensure that risk management and internal controls are effective, ensure regulatory compliance and promote good governance while being the primary source of effective, ethical leadership.

Our environmental principles are intended to drive both our long-term environmental strategy and the everyday decision-making of our leadership and employees. With climate change expected to impact many aspects of our lives for years to come, we take our responsibility seriously. These include reducing the impacts of our operations, products, and services, promoting an internal culture of environmental stewardship, and partnering to achieve a longstanding positive impact for future generations. Meanwhile, our commitment to environmental stewardship focuses on using resources wisely and protecting the planet as we operate and grow our business. During 2020 we have progressed our strategies to reduce our carbon footprint by traveling less and videoconferencing more; through efficient energy and water usage, water management, distribution network optimization.

GOVERNANCE AND COMPLIANCE The governance processes at Carib Brewery Grenada were stress-tested during the COVID-19 pandemic and lockdown. The fact that the Company has operated for most of the 2020

2020 re-affirmed the Board’s view that corporate governance creates value by ensuring the sustainability of the business and by enhancing long-term equity performance in addition to the benefits that good governance brings to society at large and our stakeholders. It, therefore, remains appropriate to continue to premise our governance and compliance framework on the principles of accountability, transparency, ethical management, and fairness while complying with legal and regulatory requirements which are integral to our operations. Only in this manner can we sustainably increase the Company’s enterprise value and safeguard our reputation. The Board and Executives recognize that certain risks are necessary to ensure sustainable growth and competitive returns and acknowledge that all stakeholders must be protected from avoidable risk. Audits are performed, and any significant weaknesses in the design, implementation, or execution of internal controls which can result in material loss, fraud and corruption are reported, and immediate action is taken. CBG subscribes to high ethical standards, and employees are required to display integrity, while our corporate conduct is characterized by a sense of responsibility and ethical principles. These principles detail our commitment to fair competition, integrity in

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN business dealings, data protection, upholding foreign trade and insider dealing laws, the separation of business and private interests, proper record-keeping and transparent financial reporting, and providing fair, respectful, and nondiscriminatory working conditions. These requirements apply within the Company and all interactions with external partners and the general public.

HEALTH AND SAFETY COMPLIANCE We are committed to providing a respectful, safe and healthy environment where we support each other and our communities. We take this commitment seriously. As such, it is ingrained at CBG that the health and safety of employees are paramount, and more so throughout the pandemic. This focus enabled us to continue to

Adherence to COVID-19 Protocols

deliver our products during the pandemic, resulting with no positive staff related cases throughout the financial year. We are proud of our employees as they adapted to all safety measures implemented. We have taken and continue to take all possible steps to ensure the well-being of our employees and their families. These measures include restricting travel and face-to-face meetings, implementing a global work-from-home policy

when mandated by the protocols, providing the necessary protective equipment, and constantly monitoring the global situation. CBG operates under guidance from the local government, public health authorities, and our parent company ANSA McAL Limited. Since the outbreak of COVID-19, we have implemented several measures across our operations to prevent the spread of infection. These included: strict entry screening protocols for all persons entering the compound, installing sneeze guards in office areas, and making it mandatory to wear face masks, inclusive of, when traveling in our delivery vehicles. Additionally, we increased our cleaning regime, provided disinfected wipes and hand-sanitizers throughout the business, installed handwashing stations and temperature checks, and restricted interactions with customers and maintained social distancing. We are pleased that the results of these actions enabled us to protect employees and customers manifested by no positive cases. Our primary health and safety goals include preventing injuries, disruptions at plants, and accidents during transportation of cases of products and safeguarding the health of our employees in the workplace and during workrelated activities. These measures also apply to contractors who work for our Company within the scope of operational activities. Detailed rules and regular checks are instrumental in meeting these goals, as are safe production and transportation processes. We aim to ensure the safety of operations and plants in a way that avoids unacceptable risks to our employees, our neighbors, and the environment. We, therefore, conduct extensive, systematic safety inspections at regular intervals. As a result of our Companywide safety performance materially improved this year. We achieved a 62% reduction in personal injuries and a 50% reduction in vehicular accidents when compared to the prior year. Health and safety audits were performed to determine gaps that were closed quickly. These are testaments to the value we place on our people’s health, safety, and well-being.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN HUMAN RESOURCE

CONCLUSION

It has always been ingrained at CBG that the commitment and passion of our people are the key to our success. These qualities were further exemplified during 2020, when our employees demonstrated extraordinary resilience, determination, and passion in what has been a challenging period due to the COVID-19 pandemic. The Board expresses its heartfelt appreciation for the stoic contributions during the year.

The value of a highly experienced and knowledgeable Board in advising, supporting, and providing counsel was paramount during the last year. I express thanks to my fellow members of the Board of Directors for their exceptional leadership. On behalf of our Board of Directors, I express heartfelt thanks to the Management Team for its astute leadership and resilience in ensuring that the Company delivered a competitive performance while operating under significant constraints. I commend all our employees for their tremendous dedication and courage demonstrated during these turbulent times, including their commitment to selflessly serve our valued customers while adapting to new ways of working. I thank them for their unwavering support. The relationships with our external stakeholders, including our customers, shareholders, suppliers, and regulators, are critical to the sustainability of our business, and I thank them for their engagement and support and look forward with great anticipation to their continued support.

Our employee value proposition focuses on people, passion, and opportunities and aims to attract and retain the valuable talent we need to achieve our strategic goals. Learning and development interventions are vital in building our human resource capital and these include job training, e-learning, skills programs, short courses, and academic qualifications. Our talent and development framework aims to develop our Company’s human capital to achieve sustainable business growth and ensure that all employees are provided with the skills to realize their potential and address any competency gaps. The multifaceted abilities and personal efforts of all employees contribute materially to our success. We aim to empower each of our employees to work to their full potential. Our managers are responsible for facilitating and supporting these objectives in close collaboration with our employees. In this way, we can work together to make an ongoing contribution to the Company’s success. Our human resources activities focus on the development and implementation of initiatives that sustainably support our business success while at the same time encouraging the professional development and engagement of individual employees. In keeping with this belief, notable investments were made in training and development, with employees pursuing training through the University of the West Indies, on the job training relating to the welding, diagnosis, and repair of plant and machinery, health and safety, finance, and accounting, leadership, through our parent company ANSA McAL Beverage Sector and through third party providers.

In 2021, we will continue to operate in a complex and volatile local and global environment. With COVID-19 presenting ongoing challenges, this could result in renewed lockdown restrictions, as being currently experienced in other countries. We are well placed to weather the storm. We have a robust Statement of Financial Position and generate strong cash flows. We are confident of continued value creation for all our shareholders and stakeholders by combining investment in managing a safe and efficient operation and controlling cost while remaining rooted in the principle of customer first, through the planned rebranding of some of our world-class products. We remain steadfast in delivering on our strategy and growing shareholder’s wealth by proactively monitoring the economic and social climate and implementing measures to mitigate against and cushion the business for adverse effects. We will leverage the strength of our financial position and robust business model to ensure we continue to generate sustained returns to our shareholders. The future may prove to be more challenging. Nonetheless, we are ready for whatever it holds and remain confident in our long-term prospects.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

REPORT OF THE CHAIRMAN

“I express thanks to my fellow members of the Board of Directors for their exceptional leadership. On behalf of our Board of Directors, I express heartfelt thanks to the Management Team for its astute leadership and resilience in ensuring that the Company delivered a competitive performance while operating under significant constraints. I commend all our dedicated employees for their tremendous dedication and courage demonstrated during these turbulent times. The future may yet prove to be more challenging. Nonetheless, we are ready for whatever it holds and remain confident in our long-term prospects.”

Anthony N. Sabga III CHAIRMAN

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

CORPORA TE CORPORATE INFORMA TION INFORMATION BOARD OF DIRECTORS Mr. Anthony N. Sabga III - Chairman Mr. Peter Hall - Beverage Sector Head Mr. Ron Antoine - Managing Director Mrs. Aldyn Henry-Bishop - Financial Comptroller/Company Secretary Mr. Andrew Bierzynski - Chairman of Audit Committee Mr. Mark Wilkin Mr. Averne Pantin Mr. Adrian Sabga Mr. Akash Ragbir

AUDIT COMMITTEE Mr. Andrew Bierzynski - Chairman Mr. Ron Antoine Mr. Averne Pantin

SECRETARY/FINANCIAL COMPTROLLER Mrs. Aldyn Henry-Bishop - Bsc. (Hons), FCCA, MBA

REGISTERED OFFICE Grand Anse, St. George’s, Grenada, West Indies.

AUDITORS PKF Accountants and Business Advisers Grand Anse, St. George’s, Grenada.

BANKERS CIBC FirstCaribbean International Bank (Barbados) Limited Church Street, St. George’s, Grenada. RBTT Bank (Grenada) Limited Grand Anse, St. George’s, Grenada.

SOLICITORS Mitchell & Co. Units 14-16 Excel Plaza Grand Anse, St. George’s Grenada.

REGISTRARS AND TRANSFER OFFICE Aldyn Henry-Bishop, Company Secretary Carib Brewery (Grenada) Limited Grand Anse, St. George’s Grenada.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Report of tthe he Dir ectors Directors Report of the Directors for the year ended 31st December, 2020 to be presented to the shareholders at the SixtyFirst Annual Meeting.

PRINCIPAL ACTIVITIES The principal activities of the Company, registered in Grenada, are brewing, bottling and distribution of Beer, Stout, Malta, Soft Drinks and other Drinks. The Directors have pleasure in presenting to the shareholders their Sixty-first Annual Report, together with the Audited Financial Statements for the year ended December 31, 2020. $000 37,675 7,097

Retained Earnings brought forward as previously reported Net earnings for the year were Retained earnings available for appropriation Dividends paid on the common shares issued: Final 2019 dividend payment of $1.18 cents per share

44,772 (4,902)

Retained earnings carried forward

39,870

Subsequent to year end, a dividend of $0.85 cents per share in respect of 2020 was declared by the Directors. These would be accounted for as an appropriation of retained earnings in the year 2020. Profit before tax was $9,785 Profit after tax and attributable to Shareholders was $7,097.

DIRECTORS The Directors listed on page 3 served during the year. In accordance with By-Law No 1 Section 4.5, Mr. Anthony N. Sabga III and Mr. Akash Ragbir are the Directors retiring by rotation and being eligible, offer themselves for re-election.

AUDITORS The Auditors Messrs. PKF Accountants and Business Advisers retire and being eligible, offer themselves for reappointment at a fee to be agreed with the Directors. Shares According to the Company’s Register, the interests of the Directors on the dates indicated are as follows: Mr. Andrew Bierzynski Mrs. Aldyn Henry-Bishop Mr. Ron Antoine

Shares 134,130 1,560 11,250

(31.12. 2020)

The following companies held more than 5% of the stated capital of the Company: ANSA McAL National Insurance Board

2,307,068 389,336

On behalf of the Board

Aldyn Henry-Bishop Company Secretary 20th May, 2021

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Not ice of Annual Meet ing of Shar eholders Notice Meeting Shareholders Notice is hereby given that the Sixty-First Annual Meeting of Carib Brewery (Grenada) Limited will be held at the Grenada Room, Radisson Grenada Beach Resort, St. George’s and virtually on Wednesday June 23rd, 2021 at 4:00 pm to:

Ordinary Business 1.

To receive the Audited Financial Statements for the year ended December 31st, 2020 and the Reports of the Directors and Auditors thereon.

To re-elect Directors.

To re-appoint Auditors and authorize the Directors to fix their remuneration.

ALL shareholders are required to wear a mask upon entry and during the proceedings, to follow Radisson Grenada’s established COVID-19 protocols such as washing of hands upon entry, sanitizing hands and submitting to temperature checks. Social distancing will be followed throughout the proceedings with floor markers and seating layout in accordance with social distancing protocols. These precautions have been taken to ensure the well-being of all our stakeholders and to be in compliance with the latest directives from public health and government officials in connection with the COVID-19 virus pandemic. The 2020 Annual Report can be viewed electronically at www.ansamcal.com. Shareholders and duly appointed proxyholders who wish to attend, participate and vote at the meeting are requested to pre-register by providing their full name (as listed on the Share Register), address, contact number and e-mail address by June 18th, 2021 via email at cbgshareholders@caribbrewery.com. Once pre-registered, the credentials to join the meeting will be provided on or before June 23rd, 2021.

Dated this 20th day of May, 2021

Aldyn Henry-Bishop Company Secretary

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Notes: 1. In accordance with Section 108 (1) and (2) of the Company Act #35 of 1994, the Directors have fixed May 27th, 2021 as the record date for determining the Shareholders who are entitled to receive dividend payments for the period ending December 31st 2020 and notice of the Annual Meeting for the period ended December 31st 2020. Only Shareholders on record at the close of business on May 27th, 2021 are therefore entitled to receive such. A list of such Shareholders will be available for examination by the Shareholders at the Company’s Registered Office during usual business hours and at the Annual Meeting. 2. A Shareholder entitled to attend the Annual Meeting and vote is entitled to appoint one or more proxies to attend and vote instead of him/her; a proxy need not be a Shareholder. Attached is a Proxy Form for your convenience which must be completed and signed in accordance with the Notes on the Proxy Form and then deposited with the Company Secretary at the Registered Office of the Company no later than 48 hours before the time appointed for holding the meeting. 3. The Transfer Books and Register of members will be closed from May 27th - June 23rd 2021, inclusive.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIAL HIGHLIGHTS 2016-2020

2016

2017

2018

2019

2020

Net Sales Revenues

47,478

51,987

58,629

64,430

58,323

Profit Before Exceptional Items & Tax

11,575

12,343

13,869

13,662

9,785

Income Attributable to Shareholders

7,982

8,775

9,621

9,837

7,097

Earnings per share

$1.55

$2.11

$2.32

$2.37

$1.71

Dividends Amount - Ordinary

$0.96

$1.06

$1.16

$1.18

$0.85

33,003

27,444

32,658

37,675

39,870

Shareholders’ Equity

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Independent Auditor’s Report Pannell House P.O. Box 1798 Grand Anse St. George’s Grenada West Indies Tel (473) 440-2562/3014/2127/0414 Fax (473) 440-6750 Email pkf@Spiceisle.com

Accountants & business advisers

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF CARIB BREWERY (GRENADA) LIMITED (FORMERLY GRENADA BREWERIES LIMITED) Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) (‘the Company’) which comprise the statement of financial position as at December 31st, 2020, and the statement of comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended and 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 December 31st, 2020 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”).

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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Grenada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information included in the Company’s 2020 Annual Report Other information consists of the information included in the Company’s 2020 Annual Report, other than the financial statements and our auditor’s report thereon. Management is responsible for the other information. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) Report on the Audit of the Financial Statements (continued)

Responsibilities of Management and The Audit Committee for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Audit Committee is responsible for overseeing the Company’s financial reporting process. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, 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 resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Auditors’ Responsibility for the Audit of the Financial Statements 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.



Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) Report on the Audit of the Financial Statements (continued) 

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 or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists; we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.



Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

GRENADA March 31st, 2021

Accountants & Business Advisers:

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Statement of Financial Position at 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Notes

2020

2019

7 8 9

29,044 420 25

26,013 475 25

29,489

26,513

5,903 5,409 5,344 14,940

8,845 8,527 5,335 9,476

31,596

32,183

61,085

58,696

4,155 571 35,144

4,155 571 32,949

39,870

37,675

2,719 304

2,608 469

3,023

3,077

9,251 4,677 3,340 924

7,935 4,451 5,009 549

18,192

17,944

TOTAL LIABILITIES

21,215

21,021

TOTAL EQUITY AND LIABILITIES

61,085

58,696

ASSETS Non-Current Assets Property, plant and equipment Intangible assets Investment securities

Current Assets Inventories Trade and other receivables Investment securities Cash and cash equivalents

10 11 9 12

TOTAL ASSETS EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital Capital reserve Retained earnings

13 14

TOTAL EQUITY Non-Current Liabilities Past service benefits liability Deferred tax liability Current Liabilities Trade and other payables Provision for repayment of deposits on cases Amount due to ANSA McAL Group of Companies Taxation payable

15 16

17 18

The accompanying notes form an integral part of these financial statements Approved by the Board of Directors on 3rd April, 2021 and signed on its behalf by:

:Director

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Statement of Comprehensive Income for the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Notes

2020

2019

58,323

64,430

Cost of sales

(36,141)

(39,045)

Gross profit

22,182

25,385

Administration expenses Selling and distribution expenses Rental income Other (expense)/income

(4,436) (7,963) 8 (6)

(4,246) (7,825) 18 330

(12,397))

(11,723)

9,785

13,662

(2,853) 165

(3,846) 21

(2,688)

(3,825)

7,097

9,837

Net Sales

Profit for the year before taxation

Provision for taxation - Current expense - Deferred tax 19 Net profit for the year after taxation

Statement of Changes in Equity For the year ended 31st December, 2020 Stated Capital

Revaluation Reserve

Retained Earnings

Total Equity

4,155

571

27,932

32,658

Dividends paid

(4,820)

Net profit for the year after taxation

9,837

4,155

571

32,949

37,675

Dividends paid

(4,902)

Net profit for the year after taxation

7,097

4,155

571

35,144

39,870

Balance at 1st January, 2019

Balance at 31st December, 2019

Balance at 31st December, 2020

The accompanying notes form an integral part of these financial statements

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Statement of Cash Flows For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

2020

2019

Net profit for the year before taxation

9,785

13,662

Adjustment for: Depreciation Amortization of intangible asset Loss/(gain) on disposal

5,792 55 17

4,366 20 (6)

15,649

18,042

2,942 3,117 (8) 111 1,316 226 (1,668)

5,630 (57) (5) (3 (2,394) 530 (459)

21,685 (2,479)

21,290 (4,153)

19,206

17,137

Disposal of property, plant and equipment Purchase and transfer of property, plant and equipment

(17) (8,823)

(14,538)

Net cash used in Investing Activities

(8,840)

(14,538)

Dividends paid to ordinary shareholders

(4,902)

(4,820)

Net cash used in Financing Activities

(4,902)

(4,820)

Increase/(decrease) in cash and cash equivalents Cash and cash equivalents - at beginning of year

5,464 9,476

(2,221) 11,697

14,940

9,476

20 14,920

5 9,471

14,940

9,476

Operating Activities

Operating profit before working capital changes Decrease in inventories Decrease/(increase) in trade and other receivables Increase in investment securities Increase in past service benefits liability Increase/(decrease) in trade and other payables Increase in provision for repayment of deposits on cases Decrease in amounts due to Ansa McAl Group

Income tax paid Net cash provided by Operating Activities Investing Activities

Financing Activities

- at end of year Represented by: Cash on hand Cash at bank

The accompanying notes form an integral part of these financial statements

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Corporate Information Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) was incorporated in Grenada on 27th July, 1960. The Company was issued a certificate of continuance under Section 365 of the Company’s Act. The Company’s registered office and principal place of business is Maurice Bishop Highway, St. George’s, Grenada. In accordance with a resolution of change of name dated 27th August, 2020, the name of the Company previously Grenada Breweries Limited was changed to Carib Brewery (Grenada) Limited by the issue of a Certificate of Amendment dater 1st October, 2020 by the Registrar of Companies. The Company’s principal activities are the brewing, bottling and distribution of Beers, Stout, Maltas and Soft Drinks. Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) is a subsidiary of the Ansa McAl Group of Companies, which owns 55.54% of the ordinary share capital of the Company. Ansa McAl Limited is incorporated in the Republic of Trinidad and Tobago and is a diversified public conglomerate which is listed on the Trinidad and Tobago Stock Exchange. The Company’s registered office is 11 Maraval Road, Port of Spain, Trinidad. During the year the Company employed on average one hundred and ninety-seven (197) persons (2019-197).

Significant Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to the years presented, unless otherwise stated.

(a)

Basis of P ation Prrepar epara These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in Eastern Caribbean Currency Dollars. The financial statements have been prepared under the historical cost convention modified by the revaluation of land and buildings. 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 Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (b)

Changes in accounting policies and disclosures

(i)

New Accounting Standards, Amendments and Interpretations The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31st, 2019 except for the adoption of new standards and interpretations below. Amendments to IAS 1 and IAS 8 : Definition of Material (Effective 1st January, 2020) In October 2018, the International Accounting Standards Board (IASB) issued amendments to IAS 1 : Presentation of financial Statements and IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, “information is material if omitting, misstating or abscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. The amendments to the definition of material is not expected to have significant impact on the Company’s financial statements.

(ii)

Standards in issue not yet effective The following is a list of standards and interpretations that are not yet effective up to the date of issuance of the Company’s financial statements. These standards and interpretations may be applicable to the Company at a future date and will be adopted when they become effective. The Company is currently assessing the impact of adopting these standards and interpretations.        

Amendments to IFRS 16 - Covid-19 Related Rent Concessions (Effective 1 June, 2020) Amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16 – Phase 2 (Effective 1 January, 2021) Amendments to IAS 1 6 - Property, Plant and Equipment: Proceeds before Intended Use (Effective 1st January, 2022) IFRS 17 - Insurance Contracts (Effective 1st January, 2023) Amendments to IFRS 3 - Reference to the Conceptual Framework - (Effective 1 January, 2022) Amendments to IAS 37 - Onerous Contracts, Cost of Fulfilling a Contract - Effective 1st January, 2022) Amendments to IAS 1 - Classification of Liabilities as Current and Non-Current - Effective 1st January, 2023) Amendments to IFRS 4 - Extension of Temporary Exemption from applying IFRS 9 (Effective 1 January, 2022)

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (b)

Changes in accounting policies and disclosures - continued

(iii)

Improvements to International Reporting Standards The annual improvements process for the International Accounting Standards Board deals with non-urgent but necessary clarifications and amendments to IFRS. Annual improvements to IFRS Standards 2018-2020 cycle The following amendments are applicable to annual periods beginning on or after 1 January, 2022 IFRS1

First-time Adoption on International Financial Reporting Subsidiary as a first-time adopter. IFRS 9 Financial Instruments - fees in the “10 per cent” test for derecognition of financial liabilities. IFRS 16 Leases - Lease incentives IAS 41 Agriculture - Taxation in fair value measurements

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (c)

Property, Plant and Equipment Some items of property, plant and equipment are stated at valuation less subsequent depreciation. The others are stated at cost less accumulated depreciation. Subsequent costs are included in the assets carrying amounts or are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Comprehensive Income during the financial period in which they are incurred. Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in equity; all other decreases are charged to the Statement of Comprehensive Income. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives. The rates used are as follows: Per annum Freehold Properties Plant and Machinery Motor Vehicles Furniture, Fixture and Equipment Computers

2% - 2.50% 2.5% - 33.33% 20% - 33.33% 10% - 33.33% 16.67% - 33.33%

Bottles

33.3%

Crates

10% - 12.5%

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 proceeds with carrying amounts. These are included in the Statement of Comprehensive Income. When revalued assets are sold, the amounts included in revaluation surplus are transferred to retained earnings.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (d)

Inventories Inventories are valued as follows: 1) Raw materials and general stocks

- The lower of landed cost determined on the average price basis and net realizable

2) Consumable stores

- The lower of landed cost and net realizable value on a first-in, first-out basis.

3) Work-in-progress

- Raw material costs, direct labour and overheads incurred in brewing.

4) Finished products

- Raw material costs, direct labour and overheads incurred in brewing, bottling and packaging

5) Goods in transit

- Suppliers’ invoiced cost

Adequate provision has been made for slow-moving and obsolete items.

(e)

Returnable Bottles and Crates in Circulation The provision is based on the number of bottles and crates in circulation at the end of the financial year.

(f)

Foreign Currencies Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the date of the Statement of Financial Position. The resulting profits and losses are dealt with in the Statement of Comprehensive Income. There are no foreign currency borrowings.

(g)

Past Service Benefits Other Than Pensions The Company provides, to all employees who are members of the Technical and Allied Workers’ Union (TAWU), a past service benefit payable at the end of employment. This is charged against profit on a systematic basis over the employees’ period of employment with the Company. The benefit is calculated on a monthly basis by applying a percentage of current salary levels and is accrued in non-current liabilities.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued)

(h)

Profit Sharing Scheme The Company operates an employee profit sharing scheme and the amount to be distributed to employees each year is based on the terms outlined in the union agreement. Employees receive their profit share in cash. The Company accounts for the profit share as an expense, through the Statement of Comprehensive Income.

(i)

Cash and Cash Equivalents Cash and cash equivalents comprise of cash on hand and at bank and short-term demand deposits with original maturity of three (3) months or less.

(j)

Trade and Other Receivables 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, they are classified as current assets. If not, they are presented as non-current assets. Trade and other receivables are recognised initially at fair value and subsequently measured at amortized cost using the effect interest method, less provision for expected credit loss. The Company uses a provision matrix to calculate expected credit loss (ECL) for trade receivables.

(k)

Financial Instruments Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i)

Recognition and Measurement All regular way purchases and sales of financial assets are recognised or derecognised on the trade date, that is the date on which the Company commits itself to purchase or sell an asset. A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

Initial Measurement The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments. Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at fair value through profit or loss (FVPL) whereby transaction costs are added to, or subtracted from, this amount. Trade receivables are measured at transaction price.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (k)

Financial Instruments (continued)

(i)

Recognition and Measurement - continued

Subsequent measurement categories of financial assets and liabilities The Company classifies all its financial assets based on the business model for managing the assets and the asset’s contractual terms. The Company classifies its financial assets at amortized cost except equity which is at fair value through profit and loss.

Amortized cost Financial assets are measured at amortized cost if both of the following conditions are met: 

The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and



The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

(ii)

Impairment In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss (ECL) model as opposed to an incurred credit loss model under ISA 39. The expected credit loss model requires the Company to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. Therefore, it is no longer necessary for a credit event to have occurred before credit losses are recognized. The Company records an allowance for expected credit loss for its trade receivables using a simplified approach to calculate ECLs whereby it recognizes a loss allowance based on lifetime ECLs at each reporting date. The ECL on these financial assets are estimated using a provision matrix that is based on its historical credit loss experience, adjusted for forwardlooking factors specific to the debtors and the economic environment. The provision rates used in the provision matrix are based on days past due. For all other financial instruments, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If on the other hand the credit risk on a financial instrument has not increased significantly since initial recognition the Company recognizes the loss allowance for the financial instrument at an amount equal to 12-month ECL where applicable. The assessment of whether lifetime ECL should be recognized is based on significant increase in the likelihood or risk of default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting date or actual default occurring. CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (k)

Financial Instruments (continued)

(ii)

Impairment ( continued) Lifetime ECL represents the expected credit losses that will result for all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible with 12 months after the reporting date. A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial assets have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

(iii)

(i)

Significant financial difficulty of the issuer or borrower;

(ii)

A breach of contract, such as a default or past due event;

(iii)

It is becoming probable that the borrower will enter in bankruptcy or other financial re-organisation; and

(iv)

The disappearance of an active market for that financial asset because of financial difficulties.

Write offs The gross carrying amount of a financial asset is written off to the extent that there is no realistic prospect of recovery. This is generally when the Company determines that the borrower does not have assets or resources of income that would generate sufficient cash flows to repay the amount subject to the write-of.

(iv)

Derecognition of Financial Assets The company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued) (k)

Financial Instruments (continued)

(v)

Financial Liabilities When financial liabilities are recognised they are measured at fair value of the consideration given plus transactions cost directly attributable to the acquisition of the liability. Financial liabilities are re-measured at amortised cost using the effective interest rate. Financial liabilities are derecognized when they are extinguished, that is when the obligation specified in the contract as discharged, cancelled or expired. The difference between the carrying amount of a financial liability extinguished and the consideration price is recognized in the statement of comprehensive income.

(l)

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 Company’s activities. Revenue is shown net of estimated returns, rebates and discounts. Revenue is recognized when the Company has delivered products to the customer; the customer has accepted the products and collectability of the related receivables is reasonably assured.

(m)

Related Parties Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operating decisions. Transactions entered into with related parties in the normal course of business are carried out on commercial terms and conditions during the year.

(n)

Income Tax The charge for the current year is based on the results for the year as adjusted for items which are non-assessable or disallowed. It is calculated using the applicable tax rates for the period. Deferred income tax is provided using the liability method, on all temporary differences at the Statement of Financial Position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rate that is expected to apply to the period when the asset is realized or the liability is settled, based on the enacted tax rate at the Statement of Financial Position date. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Significant Accounting Policies (continued)

(o)

Stated Capital Ordinary shares are classified as equity.

(p)

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 amortized cost using the effective interest rate method.

(q)

Provisions Provisions are recognized when the Company has a present legal or constructive obligation, as a result of past events, if it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

(r)

Dividends Dividends that are proposed and declared during the period are accounted for as an appropriation of retained earnings in the Statement of Changes in Equity.

(s)

Finance Charges Finance charges are recognized in the Statement of Comprehensive Income as an expense in the period in which they are incurred.

(t)

Intangible Assets Amortisation is charged to comprehensive income on a straight-line basis over the estimated useful lives of the intangible asset unless such lives are indefinite. Computer software - 10 years.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Critical Accounting Estimates and Judgments in Applying Accounting Policies The development of estimates and the exercise of judgement in applying accounting policies may have a material impact on the Company’s reported assets, liabilities, revenues and expenses. The items which may have the most effect on these financial statements, are set out below.

Valuation of property The Company utilizes professional valuators to determine the fair value of its properties. Valuations are determined through the application of a variety of different valuation methods which are all sensitive to the underlying assumptions chosen.

ii)

Provisions for expected credit losses of trade receivables The Company uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due. The provision matrix is initially based on the Company’s historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future.

iii)

Property, plant, equipment Management exercises judgment in determining whether future economic benefits can be derived from expenditures to be capitalized and in estimating the useful lives and residual values of these assets.

(iv)

Provision for inventory obsolescence Provision for obsolescence on inventory is based on the age of the inventory, assessment of the physical condition and the levels of obsolete or unsaleable inventory items on hand.

(v)

Impact of COVID-19 Background COVID-19, which is a respiratory illness caused by a new virus, was declared a world-wide pandemic by the World Health Organisation on March 11, 2020. The Company has considered the impact of COVID-19 in preparing its financial statements.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Critical Accounting Estimates and Judgments in Applying Accounting Policies (continued) (v)

Impact of COVID-19 (continued) Consideration of the statements of financial position and further disclosures Key considerations of the impact of COVID-19 on statements of financial Position and related disclosures were as follows: Expected Credit Losses

Trade and other receivables: For trade and other receivables, the Company adopted the simplified approach for determining the provision for expected credit losses, as permitted by IFRS 9. In response to the COVID-19 pandemic, the Company assessed the need to adjust the loss rates to incorporate forward-looking information, taking into account the expected recovery rate of receivables and various applicable macroeconomic factors. Based on the analysis performed as at 31 December 2020, no material overlay adjustments specifically related to COVID-19 pandemic was considered necessary. Going concern In accordance with the requirements of IAS 1 ‘Presentation of Financial Statements’, the Company has performed a going concern assessment as of the reporting date. While the COVID-19 pandemic has heightened the inherent uncertainty in the going concern assessment, the Company has concluded that there are no material uncertainties that may cast significant doubt on the ability to continue to operate as a going concern. The financial statements have therefore been prepared on the going concern basis.

Net Sales Net sales comprise the value of sale of Beer, Stout, Maltas and Soft Drinks in Grenada, Trinidad and St. Vincent excluding Value Added Tax and Stamp Tax.

Other Income Other income comprises manufacturers’ rebate, sundry sales, profit on the disposal of property, plant and equipment and interest income.

Profit for the Year This profit is stated after charging: Auditors’ remuneration Directors’ fees and expenses Depreciation Amortization

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

2020

2019

60 5 5,792 55

60 6 4,366 20

6,096

6,096 6,096 302 (4,211) 2,187

4,771 6,578 (1,807) 4,771

15,291 (4,690)

10,601

Balance at 31st December, 2019 Cost/valuation Accumulated depreciation

Net Book Value

For the year ended 31st December, 2020 Opening book value 4,771 Additions for the year 5,854 Transfer 2,859 Depreciation charge for the year (2,883)

10,601

Net Book Value

Balance at 31st December, 2020 Cost/Valuation Accumulated depreciation

Net Book Value

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020 2,187

2,187 -

6,096 -

5,029 6,091 (5,024) -

For the year ended 31st December, 2019 Opening book value Additions for the year 1,812 Transfer 4,766 Depreciation charge for the year (1,807)

5,029 5,029

Work in Progress

Net Book Value

Balance at 1st January, 2019 Cost/valuation Accumulated depreciation

Bottles in Circulation

776

776 -

776

776 -

776

776 -

776

299 477 -

299

299 -

Land

1,307

5,809 (4,502)

1,307

1,291 119 3 (106)

1,291

5,687 (4,396)

1,291

1,879 (477) (111)

1,879

6,164 (4,285)

Building

12,500

55,035 (42,535)

12,500

11,130 2,455 1,254 (2,339)

11,130

51,326 (40,196)

11,130

6,983 1,167 5,024 (2,044)

6,983

45,135 (38,125)

824

1,837 (1,013)

824

770 58 65 (69)

770

1,830 (1,060)

770

861 (91)

861

1,830 (969)

Fixtures & Fittings

849

4,181 (3,332)

849

1,179 65 (395)

1,179

4,463 (3,284)

1,179

790 702 (313

790

3,7613 (2,971)

Motor Vehicles

29,044

85,116 (56,072)

29,044

26,013 8,853 (30) (5,792)

26,013

76,756 (50,743)

26,013

15,841 9,772 4,766 (4,366)

15,841

62,218 (46,377)

Total

Property, Plant and Equipment

Plant & Machinery

7. Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements

For the year ended 31st December, 2020

Expressed in thousands of Eastern Caribbean Dollars

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

Intangible Assets 2020

2019

Gross carrying amount, 31 December, 2020

548

Accumulated amortization 1 January, 2020 Amortization for the year

(73) (55)

(53) (20)

Accumulated amortization 31 December, 2020

(128)

(73)

Net carrying amount, 31 December, 2020

420

475

5,344

5,335

Computer Software:

Investment Securities Equity security at fair value through profit and loss Eastern Caribbean Securities Exchange -2,500 share of $10 each Investment security at amortized cost Fixed deposits

The fair value of the Eastern Caribbean Securities Exchange Shares was estimated at cost since insufficient recent information was unavailable to measure at fair value.

10.

Inventories Finished goods Raw materials and work in progress Goods in Transit Consumables and spares

819 2,366 476 2,242

902 2,866 3,389 1,688

5,903

8,845

The difference between the purchase price or production cost of inventories and their replacement value is not material.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

11.

Trade and Other Receivables

Inter Company receivables Trade receivables - net Due from other related parties Other receivables Prepayments and accrued income

2020

2019

1,162 3,627 10 610

2,156 4,505 317 98 1,451

5,409

8,527

Movements in provision for expected credit loss of trade receivables were as follows: As at 1st January, 2020 Net increase in expected credit loss

196 292

163 33

As at 31st December, 2020

488

196

The carrying value of trade and other receivables approximates their fair value.

12.

Cash and Cash Equivalents First Caribbean International Bank (Barbados) Limited - Current Accounts - Cash on hand

14,920 20

9,471 5

14,490

9,476

The Company has an unused EC$5.0 million overdraft facility available with First Caribbean International Bank (Barbados) Limited.

13.

Stated Capital Authorised - 6,000,000 Ordinary shares of no par value - 300,000 10% Preference shares of no par value Allocated, Called Up and Fully Paid - 4,154,652 ordinary shares of no par value

4,155

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

14.

Capital Reserve Account

Balance at 31st December, 2020

2020

2019

571

This reserve consists of surplus derived from revaluation of property, plant and equipment less amounts utilised in the issue of bonus shares.

15.

Past Service Benefits Liability Balance at 1st January, 2020

2,608

2,605

111

2,719

2,608

Net contributions for the year Balance at 31st December, 2020

This amount is a provision for retirement benefits for persons employed with the Company and represented by the Grenada Technical and Allied Workers’ Union.

16.

Deferred Tax Liability Balance at 1st January, 2020

469

490

Deferred tax decrease

(165)

(21)

Balance at 31st December, 2020

304

469

1,314 9 68 2,787 5,073

888 4 131 2,657 4,255

9,251

7,935

The deferred tax liability is due to the acceleration of tax depreciation.

17.

Trade and Other Payables Trade payables Due to other parties Due to statutory authorities Accruals Other payables

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

18.

Amount Due to Ansa McAl Group of Companies

Ansa Chemicals Limited Ansa Automotive Limited Ansa Polymer Ansa McAL Limited - Head Office Carib Brewery TNT Limited/Caribbean Development Company Limited Ansa McAL (USA) Inc. Carib Glassworks Limited Carib Brewery St. Kitts & Nevis Limited DCI Miami Trinidad & Tobago Insurance Limited

19.

2020

2019

86 (3) 131

260 1 228 146

1,816 1299 5 3 3

2,218 1,424 723 2 3 4

5,009

5,473

Taxation Income taxes in the Statement of Comprehensive Income vary from amounts that would be computed by applying the statutory tax rate for the following reasons:

20.

Net profit before taxation

9,785

13,662

Tax at applicable statutory rate 28% Income not subject to tax Expenses not deducted for tax purposes Other

2,740 (2) 120 (170)

3,825 (2) 139 (137)

Taxation expense

2,688

3,825

4,902

4,820

Dividends Paid Final Dividends paid

21.

Contingent Liabilities At the Statement of Financial Position date the Company was contingently liable to the Government of Grenada for custom bonds in the amount of $226,179.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

22.

Related Party Transactions 2020 i)

The following transactions were carried out with other Ansa McAL Group companies during the year:

Sales of goods

Purchase of goods

Payment of dividends

ii)

Compensation of key management personnel of the company:

5,065

6,727

22,442

20,311

2,723

2,677

1,540

1,446

Net profit for the year after taxation

7,097

9,837

Number of ordinary shares outstanding during the year

4,155

Basic earnings per share

$1.71

$2.37

Salaries and other benefits

23.

24.

2019

Earnings Per Share

Risk Management Risk is inherent in the Company’s activities but is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The management of risk is important to the Company’s continuing profitability and each person is accountable for the risk exposures relating to their functions and responsibilities. The Company is exposed to credit risk, liquidity risk and market risk. The Board of Directors is responsible for the overall risk management approach and for approving the risk strategies, principles, policies and procedures. Day to day adherence to risk principles is carried out by the executive management of the Company in compliance with the policies approved by the Board of Directors.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

24.

Risk Management (continued) Credit Risk Management The Company has exposure to credit risk, which is the potential for loss due to debtors or counterparties failure to pay amounts when due. Credit risk is the most important risk for the Company’s business: therefore, management carefully manages its exposure to it. Credit risk exposures arise principally from the Company’s receivables and financial transactions. The Company extends credit to recognized, creditworthy third parties who are subject to a credit verification process. Significant changes in the economy, or in the state of a particular industry segment that represent a concentration of the Company’s customer base, could result in losses that are different from those provided at the date of the Statement of Financial Position. Cash and Short-term Deposits These funds are placed with highly rated banks and management therefore, considers the risk of default of these institutions to be very low. Trade Receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Executive Committee has established a credit policy under which each customer is analyzed individually for creditworthiness prior to the Company offering them a credit facility. Credit limits are assigned to each customer, which represents the maximum credit allowable without approval from the Board of Directors. The Company has procedures in place to restrict customers’ orders if the order will exceed their credit limits. Customers that fail to meet the Company’s benchmark creditworthiness can only trade with the Company on a cash basis. Customer credit risk is monitored according to their credit characteristics such as whether it is an individual or company, types of industry, aging profile and previous financial difficulties. The Company’s credit period is thirty (30) days. Trade receivables over one hundred and eighty (180) days are fully provided for. The following table shows the maximum exposure to credit risk for the components of the Statement of Financial Position. Gross Maximum Exposure

Equity security Trade and other receivables Investment security Cash and cash equivalents

2020

2019

25 5,409 5,344 14,940

25 8,527 5,335 9,476

25,718

23,363

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

24.

Risk Management (continued) Set out below is the information about the credit risk exposure on the Company’s trade receivables. Current

31-90 days

90-180 days

Over 180 days

Total

100%

Gross carrying amount Expected credit loss booked

2,958 -

650 -

19 -

488 (488)

4,115 (488)

Net carrying amount

2,958

650

3,627

100%

Gross carrying amount Expected credit loss booked

3,279 -

874 (1)

120 -

428 (195)

4,701 (196)

Net carrying amount

3,279

873

120

233

4,505

December 31st, 2020 Expected credit loss rate

December 31st, 2019 Expected credit loss rate

Liquidity Risk Liquidity risk is the risk that the Company will be unable to meet its payment obligations when they fall due under normal and stress circumstances. The Company monitors its liquidity risk by considering the maturity of its financial investments, financial assets and projected cash flow from operations. Where possible the Company utilizes surplus internal funds to finance its operations on on-going projects. Liquidity risk management process: The Company’s liquidity management process includes: 1. Monitoring liquidity on a daily basis and further cash flows on a monthly basis. 2. Maintaining a portfolio of cash investments with staggered maturity dates that can be easily terminated if required. 3. Maintaining committed lines of credit. 4. Maximizing cash returns on investment. 46

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

24.

Risk Management (continued) The table below summaries the maturity profile of the Company’s financial liabilities at 31st December, 2020 based on contractural undiscounted payments.

Trade and other payables Provision for repayments of deposits on cases Due to Ansa McAl Group of Companies Balance at 31st December, 2020 Trade and other payables Provision for repayments of deposits on cases Due to Ansa McAl Group of Companies Balance at 31st December, 2019

On Demand

<1 year

Total

9,251 4,677 -

3,340

9,251 4,677 3,340

13,928

3,340

17,268

7,935 4,451 -

5,009

7,935 4,451 5,009

12,386

5,009

17,395

Fair Values Fair value of the financial assets and liabilities represents the amounts at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of cash and cash equivalents, trade and other receivable, trade and other payables and due to Ansa McAl Group of Companies approximate their carrying amounts due to the short-term maturities of these instruments. Market Risk The Company takes on exposure to market risk which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks mainly arise from changes in foreign currency exchange rates and interest rates. There have been no changes to the Company’s exposure to market risks or the manner in which it manages and measures the risk from the previous years. Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Such exposure arises from sales or purchases in currencies other than the Company’s functional currency. Management monitors its exposure to foreign currency fluctuation and employs appropriate strategies to mitigate any potential losses. The Company operates primarily in the Eastern Caribbean; although some of these transactions are in United States Dollars, the currency risk exposures are minimal due to the fact that the Eastern Caribbean dollar is pegged to the United States Dollar. The Company is also exposed to a minimal amount of currency risks from transactions conducted, in Euro, Pounds Sterling and Trinidad and Tobago and Guyana Dollars.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

FINANCIALS 2020 Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

24.

Risk Management (continued) The aggregate value of financial assets and liabilities by reporting currency are as follows:

TT$

US$

EC$

TOTAL

Investment securities Trade and other receivables Investment securites Cash and cash equivalents

1,156 2,486

25 4,253 5,344 12,454

25 5,409 5,344 14,940

Balance at 31st December, 2020

3,642

22,076

25,718

Due to Ansa McAl Group of Companies Trade and other payables Provision for repayment of deposits on cases

3 -

3,332 855 -

5 8,396 4,677

3,340 9,251 4,677

Balance at 31st December, 2020

4,187

13,078

17,268

Investment securities Trade and other receivables Investment securities Cash and cash equivalents

2,115 2,400

25 6,412 5,335 7,076

25 8,527 5,335 9,476

Balance at 31st December, 2019

4,515

18,848

23,363

Due to Ansa McAl Group of Companies Trade and other payables Provision for repayment of deposits on cases

4 -

4,965 945 -

2 6,990 4,451

5,009 7,935 4,451

Balance at 31st December, 2019

5,910

11,443

17,395

Assets

Liabilities

Assets

Liabilities

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)

Notes to the Financial Statements For the year ended 31st December, 2020 Expressed in thousands of Eastern Caribbean Dollars

24.

Risk Management (continued) Interest Rate Risk Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rate. Since the Company holds primarily fixed rate financial instruments and also has no significant interest bearing assets or liabilities, its income and operating cash flows are substantially independent of changes in market interest rates.

25.

Events after the Reporting Period The duration and extent of the COVID-19 pandemic and related financial, social and public health impacts of the pandemic are uncertain. As such, the actual economic events and conditions in the future may be materially different from those estimated by the Company at the reporting date. No matters have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the Company. The Company will continue to closely monitor the situation in order to plan its response, if necessary.

CARIB BREWERY (GRENADA) LIMITED ANNUAL REPORT 2020

For m of Pr oxy Form Proxy The Company Secretary Carib Brewery (Grenada) Limited P.O. Box, 202 Grand Anse, St. George’s Grenada Sixty-First Annual Meeting of Carib Brewery (Grenada) Ltd. to be held on Wednesday 23rd June, 2021 at 4.00pm at the Grenada Room, Radisson Grenada Beach Resort, Grand Anse, St. George’s, Grenada and virtually. I/We ___________________________________________________________________________________________________________ (Name of Shareholder/s) (Block Letters) of______________________________________________________________________________________________________________ (Address) (Block Letters) Shareholder (s) of the above Company, hereby appoint Mr. Anthony N. Sabga III Chairman or failing him, ___________________________________________________________________________________________________________________ (Name of Proxy) of______________________________________________________________________________________________________________ (Address of Proxy) as my/our proxy to vote for me/us on my/our behalf at the above meeting and any adjournment thereof as indicated below on the resolutions to be proposed in the same manner, to the same extent and with the same powers as if I/we were present at the said meeting or such adjournment or adjournments thereof. Please indicate with an “X” in the spaces below how you wish your Proxy to vote in the Resolutions referred to. If no such indication is given the proxy will exercise his discretion as to how he votes or whether he abstains from voting.

For Resolution No.

Ordinary Resolutions IT WAS RESOLVED THAT:

The Audited Financial Statements of the Company for the year ended December 31, 2020 and the Reports of the Directors and Auditors thereon be adopted.

i.)

In accordance with By-Law No. 1 Section 4.5, each of the following persons who retire and being eligible be and each of them hereby is re-elected as a Director of the Company: Mr. Anthony N. Sabga III Mr. Akash Ragbir

PKF Accountants and Business Advisers be re-appointed Auditors of the Company and the Directors be authorised to fix their remuneration for the ensuing year.

Dated this_____________________________ day of _______________________________________ 2021

______________________________________ Signature of Shareholder

________________________________________ Name in Block Letters

Against