Download TPS, East Africa 2008 Annual Report - Serena Hotels

28 Contingent liabilities
Notes to the Financial Statements (cont’d)
At 31 December 2008, Tourism Promotion Services (Kenya) Limited had given guarantees amounting to Shs 4,560,000
(2007: Shs 4,560,000) to banks on behalf of third parties for supply of goods and services.
Tourism Promotion Services (Kenya) Limited is a defendant in various legal actions and claims made by third parties.
In the opinion of the directors, after taking appropriate legal and other advice, no material liabilities are expected to
crystallise from these claims. Consequently no provision has been set against the claims in the books of accounts.
As at 31 December 2008, Tourism Promotion Services (Tanzania) Limited was in dispute with the Tanzania Revenue
Authority (TRA) in respect of indirect taxes. According to company's tax advisor, the claims are being settled for Shs 4.48
million as full and final settlement of all liabilities. The Directors have made appropriate provisions in the financial
year 2009.
29 Commitments
Capital commitments
Capital expenditure contracted for at the balance sheet date but not recognised in the financial statements is as follows:
Group
2008 2007
Shs'000 Shs'000
Property, plant and equipment - -
Operating lease commitments Group
2008 2007
Shs'000 Shs'000
Not later than 1 year 2,263 998
Later than 1 year and not later than 5 years 6,711 3,993
Later than 5 years 52,110 53,111
61,084 58,102
TPS EASTERN AFRICA LIMITED | ANNUAL REPORT AND FINANCIAL STATEMENTS 2008 59