Final Sameer Annual Report 2010 - Sameer Africa Limited

Notes to the consolidated financial statements
for the year ended 31 december 2010
14. BORROWINGS
The borrowings are made up as follows:
Group Company
2010 2009 2010 2009
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Non-current
Bank borrowings 6,547 6,818 5,816 -
Current
Bank borrowings 8,034 13,209 - -
Bank overdraft 418,782 351,046 418,782 351,046
X 38 SAMEER Annual Report 2010 2009
426,816 364,255 418,782 351,046
Total borrowings 433,363 371,073 424,598 351,046
Borrowings are secured by way of a negative pledge on certain of the company’s land and buildings that belong to
respective subsidiary.
Weighted average effective interest rates at the year end were: 2010 2009
% %
Bank overdrafts 8 8
Bank borrowings 16.5 16.5
In the opinion of the directors, the carrying amounts of borrowings approximate to their fair values. Fair values are based on
discounted cash flows using a discount rate based upon the borrowing rate that directors expect would be available to the
Group at the statement of financial position date.
Maturity of non-current borrowings (excluding operating lease liabilities):
Group Company
2010 2009 2010 2009
KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000
Between 1 and 2 years 6,547 6,818 5,816 -
15. DEFERRED INCOME TAX
Deferred income tax is calculated using the enacted income tax rates of 25% and 30% that apply to the different group
companies. The movement on the deferred income tax account is as follows:
(a) Group 2010 2009
KShs‘000 KShs‘000
Opening adjustment - (3,034)
At start of year (27,737 ) ( 36,720 )
Charge to statement of comprehensive income (Note 9) 327 11,082
Prior year under provision 37 -
Currency translation differences 1,896 935
At end of year (25,477 ) (27,737 )
As disclosed on the statement of financial position:
Deferred income tax assets (28,845) (31,076 )
Deferred income tax liabilities 3,368 3,339
(25,477) (27,737 )