TPSEAL 2010 Financial Results. - Serena Hotels

Notes to the Financial Statements (continued)
8 FINANCE INCOME AND COSTS
Group
2010 2009
Shs’000 Shs’000
Interest income:
- fixed and call deposits 37,119 -
- staff loans 2,200 3,043
- related party loans 12,908 -
Finance income 52,227 3,043
Net foreign currency exchange losses on borrowings (22,290) (5,557)
Interest expense:
- bank borrowings (188,493) (120,586)
- related party loans - (1,192)
Finance costs 210,783 127,335
Net finance costs (158,556 ) (124,292)
9 Income tax expense
Group
2010 2009
Shs’000 Shs’000
Current income tax 108,366 73,724
Deferred income tax (Note 15) 68,183 65,603
Income tax expense 176,549 139,327
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:
2010 2009
Shs’000 Shs’000
Restated
Profit before income tax 692,933 519,689
Tax calculated at domestic rates applicable to profits in the
respective countries - 30% (2009 - 30%) 207,880 155,907
Tax effect of:
Income not subject to tax (71,090) (18,518)
Expenses not deductible for tax purposes 23,064 2,944
Over/(under) provision of deferred income tax in prior year 16,695 (1,006)
Income tax expense 176,549 139,327
62 TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2010