Annual Report and Audited Financial Statements 2011 - The Kenya ...
Annual Report and Audited Financial Statements 2011 - The Kenya ...
Annual Report and Audited Financial Statements 2011 - The Kenya ...
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Notes to the <strong>Financial</strong> <strong>Statements</strong><br />
for the year ended 31 Dec <strong>2011</strong> - Continued<br />
NOTES: (CONTINUED)<br />
<strong>The</strong> bank overdraft in the year was secured by the following:<br />
- A first charge of property L.R. No.KJD/KISAJU/4555 in the name of <strong>Kenya</strong> Institute of Management Limited in<br />
favour of Cooperative Bank of <strong>Kenya</strong>.<br />
- A first charge of property L.R. No 209/11320 in the name of <strong>Kenya</strong> Institute of Management Limited<br />
Registered <strong>and</strong> stamped to cover KShs 30m in favour of Barclays Bank of <strong>Kenya</strong>.<br />
Maturity based on the repayment structure of the borrowings is as follows:<br />
In the opinion of the council, the carrying amount of the bank overdraft approximate to the fair value. <strong>The</strong><br />
effective interest rate for the year <strong>and</strong> at the year end was 24%. <strong>The</strong> facility is subject to review by the bank from<br />
time to time.<br />
16. Cash from operations<br />
Reconciliation of surplus to cash from operations:<br />
<strong>2011</strong> 2010<br />
Shs<br />
Shs<br />
Surplus for the year 70,786,736 75,009,275<br />
Adjustments for:<br />
Depreciation 35,434,097 28,432,412<br />
Amortization of prepaid operating lease rentals 6,085 3,814<br />
Amortization of intangible assets 1,814,082 2,021,138<br />
Profit/(loss) on disposal of property, plant <strong>and</strong> equipment 20,270 (39,424)<br />
Cash generated from operations 108,061,270 105,427,215<br />
Changes in working capital<br />
Trade <strong>and</strong> other receivables (54,995,946) (87,456,580)<br />
Transfer of receivables to MUA investment (8,749,996) -<br />
Trade <strong>and</strong> other payables 43,329,672 12,356,113<br />
Provisions <strong>and</strong> accruals<br />
1,968,371 11,637,802<br />
Cash flow from operating activities 89,613,371 41,964,550<br />
17. Related party transactions<br />
<strong>2011</strong> 2010<br />
Shs<br />
Shs<br />
i) Key management compensation<br />
Salaries <strong>and</strong> other short term benefit 26,685,000 24,540,000<br />
A listing of the members of the Council <strong>and</strong> the executive directors are shown on page 1 of the annual report.<br />
18. Contingent liabilities<br />
<strong>Kenya</strong> Institute of Management is a party to an industrial court case where the former Executive Director is a<br />
claimant for wrongful termination of employment. In the opinion of the Institute's lawyers, it is unlikely that the<br />
claim against the Institute will succeed.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Audited</strong> <strong>Financial</strong> <strong>Statements</strong> <strong>2011</strong> 43
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