TPCC Annual Report 2008.indd - HeidelbergCement

25. Other borrowings
Tanzania Portland Cement Company Ltd, Annual Report 2008
TZS ‘000 2008 2007
HC Group Loan
Opening balance - -
Received during the year 25,606,000 -
Interest payable 111,595 -
Loan repayment - -
Closing balance 25,717,595 -
The loan amount of Tshs 25,606,000,000 corresponds to USD 20,000,000 drawn from a credit facility made available
from the HeidelbergCement Group Treasury. The credit facility is limited to a maximum of USD 55,000,000. The loan
carries an interest on the outstanding amount corresponding to 3-month LIBOR plus 220 basis points per annum. Each
drawdown is structured as a three month contract and rolled over at maturity. The loan agreement was concluded 22
May 2008 and the aggregate loan amount is due for repayment in instalments of USD 3,000,000 per month commenc-
ing 30 June 2009 with full repayment no later than 31 December 2010.
26. Trade and other payables
TZS ‘000 2008 2007
Trade payables - third parties 4,614,559 2,144,620
Trade payables - intercompany 12,910,681 9,457,320
Short-term operating payables 5,283,914 3,609,174
Payables for payroll and related costs 1,702,949 740,999
Terms and conditions of the above financial liabilities:
24,512,103 15,952,113
• Trade payables are non-interest bearing and are normally settled between 15 to 30 days after date of invoice.
• Other payables are non-interest bearing and have an average term of 30 days.
• For terms and conditions relating to related parties, refer to Note 29.
27. Employee benefits
The Company contributes to a pension scheme administered by the Parastatal Pension Fund and a scheme administered
by National Social Security Fund. In addition to that, the Company has an endowment scheme administered by the
Jubilee Insurance Company of Tanzania Limited. These three schemes are defined contribution plans. The cost of the
endowment scheme is fully met by the Company (See also note 5 Significant Accounting Policies, Pension Obligations).
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