One Caribbean Media : 03 Apr 2023 – One Caribbean Media Limited – Audited Consolidated Financial Statements for the year ended December 31st, 2022

One Caribbean Media Limited

Audited Consolidated Financial Statements

For the year ended December 31, 2022

One Caribbean Media Limited

Consolidated Financial Statements

For the year ended December 31, 2022 (Expressed in Trinidad and Tobago Dollars)

Table of Contents
	Pages(s)
Statement of Management Responsibilities	1
Independent auditor's report	2-6
Consolidated statement of financial position	7-8
Consolidated statement of profit or loss	9
Consolidated statement of comprehensive income	10
Consolidated statement of changes in equity	11
Consolidated statement of cash flows	12
Notes to the consolidated financial statements	13 - 81

One Caribbean Media Limited

Statement of Management's Responsibilities

Management is responsible for the following:

• Preparing and fairly presenting the accompanying consolidated financial statements of One Caribbean Media Limited and its subsidiaries (the "Group") which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for the year then ended, and significant accounting policies and other explanatory information;
• Ensuring that the Group keeps proper accounting records;
• Selecting appropriate accounting policies and applying them in a consistent manner;
• Implementing, monitoring and evaluating the system of internal control that assures the security of the Group's assets, detection/prevention of fraud, and the achievement of Group operational efficiencies;
• Ensuring that the system of internal control operated effectively during the reporting period;
• Producing reliable financial reporting that complies with laws and regulations, including the Companies Act; and
• Using reasonable and prudent judgement in the determination of estimates.

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

Nothing has come to the attention of management to indicate that the Group will not remain a going concern for the next twelve months from the reporting date; or up to the date the accompanying consolidated financial statements have been authorised for issue, if later. Management affirms that it has carried out its responsibilities as outlined above.

Chief Executive Officer

March 31, 2023

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

Independent Auditor's Report

To the Shareholders of

One Caribbean Media Limited

Opinion

We have audited the consolidated financial statements of One Caribbean Media Limited and its subsidiaries (the "Group") which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended, and the accompanying notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at December 31, 2022, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRS").

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter				How our audit addressed the key audit matter
Impairment assessment of investment in associates and joint venture
Refer to Note 10 to the consolidated	The audit procedures which we performed,
financial statements for disclosures of the	among other matters, based on our judgment,
related accounting policies and balances.	included the following:
As at December	31,	2022,	the carrying	• Involved our internal valuation specialist to
assess the appropriateness of the valuation
amount of investments in associates and joint
methodology used by management.
venture totalled $72,096,466 which includes
• Obtained	and reviewed	key legal
an investment	in	Novo	Technology
submissions	from	Novo	Technology
Incorporated Limited	which	is carried at
Incorporated Limited's legal team.
$68,043,106.
			• Tested the mathematical accuracy of the
We focused on this area due to the
VIU calculations prepared by management.
significance of the carrying amount of the
investment and because the recoverable

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

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

Independent Auditor's Report (continued)

Key Audit Matters (continued)

Key audit matter

How our audit addressed the key audit matter

Impairment assessment of investment in associates and joint venture (continued)

amount of the investment is determined based on the value in use ("VIU") calculations, which involve significant judgments in determining key assumptions on the future cash flows to be generated.

Further, impairment indicators exist due to the following:

• The notice of contract termination
  received by Novo Technology Incorporated Limited from a major customer; and
• The non-payment of invoices issued by Novo Technology Incorporated Limited to the major customer in relation to the said contract has resulted in legal action by Novo Technology Incorporated Limited against the customer.

• Compared forecasted revenues and average utilization rate to past performance records, future market outlook and management's expectation of market developments.
• Agreed the movement in the current year carrying value of the investment to underlying audited financial information from Novo Technology Incorporated Limited.
• Compared current year profit margin to historical profit margins.
• Compared terminal growth rates to external macroeconomic sources of data and industry-specific trends.
• Evaluated the appropriateness of the discount rates used. This involved consideration of inputs from current market data.
• Assessed the reasonableness of probabilities of occurrence assigned to the base and worst-case scenarios.
• Evaluated the adequacy of the disclosures included in the consolidated financial statements in accordance with the requirements of IAS 28 Investments in Associates and Joint Ventures.

Based on the procedures performed, no material exception was noted.

Recoverability of trade receivables

Refer to Note 14 to the consolidated financial statements for disclosures of the related accounting policies and balances.

The collectability of trade receivables is considered a key audit matter as it is a major element used by the Group's management for managing its working capital. This is also important because the determination of impairment of trade receivables using expected credit losses models includes significant judgments and estimates that may have a material impact on the Group's consolidated financial statements.

The audit procedures which we performed, among other matters, based on our judgment, included the following:

• Assessed the Group's procedures for controlling receivables, including controls over credit terms.
• Tested a sample of receivable balances with an impairment provision during the year to determine the appropriateness of judgments, estimates and assumptions made by the Group in order to determine the probability of default and the extent of including forward-looking information when computing the expected credit losses.

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