Download TPS, East Africa 2008 Annual Report - Serena Hotels
Download TPS, East Africa 2008 Annual Report - Serena Hotels
Download TPS, East Africa 2008 Annual Report - Serena Hotels
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14 Borrowings<br />
The borrowings are made up as follows:<br />
Notes to the Financial Statements (cont’d)<br />
Group Company<br />
<strong>2008</strong> 2007 <strong>2008</strong> 2007<br />
Shs'000 Shs'000 Shs'000 Shs'000<br />
Non-current<br />
Bank borrowings 1,052,754 1,079,358 - -<br />
Current<br />
Bank overdraft 74,868 150,459 109 273<br />
Bank borrowings 161,852 243,434 - -<br />
236,720 393,893 109 273<br />
Total borrowings 1,289,474 1,473,251 109 273<br />
The borrowings include secured liabilities (bank borrowings and overdraft) in a total amount of Shs 1,289,474,000 (2007:<br />
Shs 1,473,251,000,000). Bank loans and overdrafts are secured by legal charges over certain land, buildings and<br />
other assets of the group in addition to a floating debenture over all assets of Tourism Promotion Services (Kenya) Limited<br />
and a certificate of shares in the name of <strong>TPS</strong> <strong>East</strong>ern <strong>Africa</strong> Limited.<br />
Group<br />
The effective interest rates at the year-end were as follows: <strong>2008</strong> 2007<br />
Kenya<br />
- bank borrowings: Kenya Shillings 10.04% 7.90%<br />
Tanzania<br />
- bank overdraft: US Dollars (3% above 3-month LIBOR) 5.67% 7.50%<br />
- bank borrowings: US Dollars (2% above 3-month LIBOR) 4.52% -<br />
: Tanzania Shillings - National Bank of Commerce<br />
Tanzania Limited 9.00% 13.50%<br />
Zanzibar<br />
- bank overdraft and bank borrowings: Tanzania Shillings 12.50% 12.50%<br />
The carrying amounts of short-term borrowings approximate to their fair value. Fair values are based on discounted cash<br />
flows using a discount rate based upon the borrowing rate that directors expect would be available to the Group at the<br />
balance sheet date.<br />
It is impracticable to assign fair values to the Group's long term liabilities due to inability to forecast interest rate and foreign<br />
exchange rate changes.<br />
The Group does not have any undrawn facilities at the end of the year.<br />
<strong>TPS</strong> EASTERN AFRICA LIMITED | ANNUAL REPORT AND FINANCIAL STATEMENTS <strong>2008</strong> 47