notes to the financial statements for the year ... - Investing In Africa

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009 (continued)34. CASH FLOW STATEMENT(continued)(a) Reconciliation of profi t before tax to cash generated from operations (continued)2009 2008KShs’000KShs’000Decrease/(increase) in inventories 240,546 (399,195)Increase in trade and other receivables (144,423) (181,470)Decrease in non-current staff receivables 825 7,917Increase in trade and other payables 263,891 14,402Increase related party balances (58,972) -Staff gratuity paid (64,057) (85,337)Cash generated from operations 1,909,147 871,370(b)Movement in loansBalance at the beginning of the year 2,677,988 2,579,360Foreign currency exchange loss 837,522 346,990Repayments during the year (273,932) (248,362)Balance at 30 June 3,241,578 2,677,988(c)Movement in loan accrued interestBalance at the beginning of the year 18,890 84,019Interest accrual 80,884 74,230Interest paid (80,272) (139,359)Balance at 30 June 19,502 18,890(d)Analysis of cash and cash equivalents35. RETIREMENT BENEFITS OBLIGATIONSShort term deposits 1,225,450 497,939Bank and cash balances 286,512 490,6701,511,962 988,609East African Portland Cement Co. Ltd Annual Report and Financial Statements FY 2008/200961The company, with effect from 1 July 2006, operates a defi ned contribution pension scheme for senior and supervisorystaff. The scheme was previously a non-contributory defi ned benefi ts pension scheme. The scheme is administeredindependently by Alexander Forbes Financial Services (E.A) Limited, while its investments are managed by StanbicInvestments Services (East Africa) Limited. Contributions to this scheme during the year amounted to KShs 34,565,000(2008 – KShs 32,283,000).The company also operates an in-house gratuity scheme for unionisable employees. Contributions to this gratuityscheme are governed by a collective bargaining agreement that is reviewed triennially and was last reviewed on 21December 2007. These contributions are not invested or managed as a separate fund, but are self funded and are fullyprovided for in the company’s fi nancial statements.The company also contributes to the statutory defi ned contribution pension scheme, the National Social SecurityFund. Contributions to the statutory scheme are determined by local statute and are currently limited to KShs 200 peremployee per month. The company’s contributions are charged to the income statement in the year to which theyrelate. Contributions to this scheme during the year amounted to KShs 1,849,000 (2008 – KShs 5,058,000).