TPCC Annual Report 2008.indd - HeidelbergCement
TPCC Annual Report 2008.indd - HeidelbergCement
TPCC Annual Report 2008.indd - HeidelbergCement
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33. Incorporation<br />
The Company is incorporated in Tanzania under the Companies Act No. 12 of 2002.<br />
34. Holding company<br />
Tanzania Portland Cement Company Ltd, <strong>Annual</strong> <strong>Report</strong> 2008<br />
The Company’s ultimate holding company is <strong>HeidelbergCement</strong> AG - Germany and immediate holding company is<br />
Scancem International ANS - Norway.<br />
35. Dividend per share<br />
During the period, dividends relating to the profits for the year ended 31 December 2007 of TZS 43 per share (totalling<br />
TZS 7.74 billion) were declared and paid.<br />
36. Commitments and contingencies<br />
Capital commitment<br />
In connection with the on-going expansion project, <strong>TPCC</strong> has entered into contracts for construction and equipment for<br />
the new production line. Invoiced amounts from these suppliers have been booked as capital work in progress. Out-<br />
standing commitments under these contracts 31 December 2008 were valued at 12.3 million US$ or TZS 15.8 billion.<br />
Legal claims<br />
Contingent liabilities relates to several court cases on land trespassing, alleged unfair termination of employment con-<br />
tracts and breach of business contracts all amounting to TZS 2,434,257,000.<br />
The Company has been advised by its legal counsel that it is only possible, but not probable, that the action will succeed<br />
and accordingly no provision for any liability has been made in these financial statements.<br />
Tax assessment<br />
The Company received in December 2007 an adjusted tax assessment for 2004 amounting to TZS 122.4 million. The<br />
Company filed an objection against this assessment in early 2008. The Tanzania Revenue Authority (TRA) has also car-<br />
ried out a tax audit of the years 2005 and 2006. TRA issued its external audit report on 18 December 2008. TRA and<br />
the Company are in agreement on all major issues raised in the report with one notable exception; the allegation that<br />
transactions between the Company and its related party, Scancem International ANS, have not been carried out at arm’s<br />
length. On 24 February, the Company was informed that TRA has decided to conclude their audit by issuing assess-<br />
ments based on their audit report dated 18 December 2008. The Company intends to object to the expected assess-<br />
ment for “transfer pricing”. While no assessment was received by the time these financial statements were finalized,<br />
management of the Company expect the assessment to be in the order of 5.5 billion TZS. The tax assessment for 2004<br />
and the expected assessment for “transfer pricing” have not been provided for in the financial statements for 2008. All<br />
agreed items from the audit are provided for in the financial statements for 2008.<br />
37. Earnings per share<br />
Basic earnings per share is calculated on the profit or loss after tax attributable to ordinary equity holders by the weight-<br />
ed average number of ordinary shares outstanding during the year.<br />
Diluted earnings per share is calculated on the profit or loss after tax attributable to ordinary equity holders by the<br />
weighted average number of ordinary shares outstanding after adjustment of dilutive potential ordinary shares.<br />
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