Consolidated Financial Statements
Movement in provision for doubtful debts is as follows:
2009
2008
Balance at beginning of the year
21,902
10,118 12,993 (1,209) 21,902
Additions Write-offs
719
(4,384) 18,237
Balance at end of the year
In Thousands Saudi Riyals
6. BAREBOAT LEASE RECEIVABLE, NET
On January 30, 2009, the National Chemical Carriers Ltd. Co. signed agreements with Odfjell to charter three vessels under bareboat arrangement for a period of ten years with purchase option after three years. These ships were delivered to Odfjell on February 1, 2009. The arrangement qualifies as a capital lease as it transfers to Odfjell substantially all the benefits and risks and also gives Odfjell a purchase option under the arrangement. The net bareboat lease receivable balance as of December 31, 2009 is summarized as follows:
Description
Amount 577.873 247.875 (400.849)
Future minimum lease payments
Un-guaranteed residual value at the end of lease term
Unearned income
Net bareboat lease receivable balance
424.899
In Thousands Saudi Riyals
The above amount is classified at December 31, 2009 as under:
Description
Amount
Current
5.925
Non-current
418.974 424.899
Net bareboat lease receivable balance
In Thousands Saudi Riyals
The future minimum lease payments and unguaranteed residual value at the end of lease term to be received during the next five years and thereafter is as follows:
Year ending December 31
Amount 55.434 55.435 55.586 57.313 61.245 540.735 825.748
Income related to the above arrangement for the year ended December 31, 2009 amounted to SR 45.9 million (2008: Nil) and is included in the operating revenue in the accompanying consolidated income statement.
2010 2011 2012 2013 2014
Thereafter
In Thousands Saudi Riyals
52
Annual Report 2009 The National Shipping Company of Saudi Arabia
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