TPSEAL 2010 Financial Results. - Serena Hotels

Notes to the Financial Statements (continued)
12 Share capital (continued)
During the year, the total authorised number of ordinary shares was increased from 106,000,000 shares to 192,000,000 shares
with a par value of Shs 1.00 per share. 148,210,640 (2009: 105,864,742) shares are issued at a par value of Shs 1.00 per share
and are fully paid.
In the year, the Company capitalised its reserves through a bonus issue of 17,644,124 at a ratio of one share of Shs 1.00 for
every six held to existing shareholders.
The Company also issued additional 24,701,774 shares with a par value of Shs 1.00 at Shs 48.00 per share, on the basis of one
new share for every five held, to existing shareholders in a rights issue. This resulted in a share premium, net of rights issue
transaction costs, of Shs 1,125,755,161.
13 Revaluation reserve
The revaluation reserve represents solely the surplus on the revaluation of buildings net of deferred income tax and is nondistributable.
14 Borrowings
Group
Company
2010 2009 2010 2009
Shs’000 Shs’000 Shs’000 Shs’000
The borrowings are made up as follows:
Non-current
Bank borrowings 1,204,524 1,206,809 - -
Current
Bank overdraft 58,251 103,187 - 2,055
Bank borrowings 362,506 223,551 - -
420,757 326,738 - 2,055
Total borrowings 1,625,281 1,533,547 - 2,055
The borrowings include secured liabilities (bank borrowings and overdraft) in a total amount of Shs 1,625,781,000 (2009: Shs
1,533,547,000). Bank loans and overdrafts are secured by legal charges over certain land, buildings and other assets of the
group in addition to a floating debenture over all assets of Tourism Promotion Services (Kenya) Limited and a certificate of
shares in the name of TPS Eastern Africa Limited.
Group
The effective interest rates at the year-end were as follows: 2010 2009
Kenya
- bank borrowings : Kenya Shillings 10.00% 12.16%
Tanzania
- bank overdrafts: US Dollars (3% above 3-month LIBOR) 3.30% 5.82%
- bank borrowings: US Dollars (2% above 3-month LIBOR) 2.30% 4.82%
: Tanzania Shillings – National Bank of Commerce Tanzania Limited 13.50% 13.50%
: Tanzania Shillings – Barclays Bank of Tanzania Limited 11.50% -
Zanzibar
- bank overdrafts and bank borrowings: Tanzania Shillings 12.50% 12.50%
64 TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2010