2012 TPSEA Annual Report - Serena Hotels
2012 TPSEA Annual Report - Serena Hotels
2012 TPSEA Annual Report - Serena Hotels
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Notes to the Financial Statements (continued)<br />
28 Related party transactions (continued)<br />
vi)<br />
Loans to directors of the Company (continued)<br />
The loans advanced to directors and key management have the following terms and conditions:<br />
Amount Term Security Interest rate<br />
2011 Shs’000 Years Shs’000<br />
Loan balance 408 5 4,392 8%<br />
2010<br />
Loan balance 1,076 5 4,392 8%<br />
No provisions for impairment losses have been required in 2010 and 2011 for any related party receivables<br />
vii)<br />
TPS Eastern Africa Limited has provided a corporate guarantee to the lenders of Tanruss Investment Limited, the<br />
owner of Dar es Salaam <strong>Serena</strong> Hotel, for an amount of Shs 1,701,400,000 which was obtained to settle loans to the<br />
previous owners.<br />
29 Contingent liabilities<br />
At 31 December 2011, Tourism Promotion Services (Kenya) Limited had given guarantees amounting to Shs<br />
6,389,000 (2010: Shs 4,560,000) to banks on behalf of third parties for supply of goods and services.<br />
Tourism Promotion Services (Kenya) Limited is a defendant in various legal actions and claims made by third parties.<br />
In the opinion of the directors, after taking appropriate legal and other advice, no material liabilities are expected to<br />
crystallise from these claims. Consequently no provision has been set against the claims in the books of accounts.<br />
30 Commitments<br />
Capital commitments<br />
Capital expenditure contracted for at the reporting date but not recognised in the financial statements is as follows:<br />
Group<br />
2011 2010<br />
Shs’000 Shs’000<br />
Property, plant and equipment - -<br />
Operating lease commitments<br />
Group<br />
2011 2010<br />
Shs’000 Shs’000<br />
Not later than 1 year 4,359 3,998<br />
Later than 1 year and not later than 5 years 7,237 5,396<br />
Later than 5 years 49,115 50,113<br />
60,711 59,507<br />
TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 83