Download TPS, East Africa 2008 Annual Report - Serena Hotels

7 Employee benefits expense
Notes to the Financial Statements (cont’d)
Group
2008 2007
Shs'000 Shs'000
The following items are included within employee benefits expense:
Retirement benefits costs:
- Gratuity charge (Note 16) 6,475 13,450
- Defined contribution scheme 24,151 21,769
- National Social Security Funds 20,390 16,284
8 Net finance costs
Group
2008 2007
Shs'000 Shs'000
Interest expense:
- bank borrowings (115,048) (145,787)
- related party loans (5,020) (96)
(120,068) (145,883)
Net foreign currency exchange losses on borrowings (24,772) -
Net finance costs (144,840) (145,883)
9 Income tax expense
Group
2008 2007
Shs'000 Shs'000
Current income tax 20,865 76,794
Deferred income tax (Note 15) 86,432 124,111
Income tax expense 107,297 200,905
The tax on the Group's profit before income tax differs from the theoretical amount that would arise using the statutory
income tax rate as follows:
2008 2007
Shs'000 Shs'000
Profit before income tax 330,014 617,380
Tax calculated at domestic rates applicable to profits in
the respective countries - 30% (2007: 30%) 99,004 185,214
Tax effect of:
Income not subject to tax (210) (3,156)
Expenses not deductible for tax purposes 20,383 20,474
Under-provision of deferred income tax in prior year (11,880) (1,627)
Income tax expense 107,297 200,905
TPS EASTERN AFRICA LIMITED | ANNUAL REPORT AND FINANCIAL STATEMENTS 2008 45