The National Shipping Company of Saudi Arabia
Annual Report 2008
49
Notes To The Consolidated Financial Statements For the year ended December 31, 2008 (InThousands Saudi Riyals)
6. Investments In Financial Instruments
During the year 2008, the Investments in financial instruments were reclassified based on the Company’s accounting policies and the management’s intention to: Investments held to maturity. Investments held for trading.
Investments available for sale.
During the year 2007, the investments in financial instruments were classified as available for sale as the management’s intention was not clearly specified at that time.
7. Accrued Bunker Subsidy, net
Accrued bunker subsidy, net at December 31 comprises the following:
2008
2007
69.853 )19.882( 49.971
53.376 )11.524( 41.852
Accrued bunker subsidy Provision for doubtful bunker subsidy
8. Investments in Affiliates and Other
Summary of the movement in investments in affiliates for the year ended December 31 was as follows:
2008
2007
233.596 )3.840( - 10.000 - 239.756
182.103 81.210 )14.752( - )14.966( 233.595
Investments balance at the beginning of the year Company’s share in affiliates’ (loss) profit Adjustment of dividend received Investment in the Arabian United Float Glass Company Dividends received during the year
A) Petredec Company Ltd.:
Difference between the net investment value and the value of the net assets acquired was considered as goodwill (Note No. 2-h-2) Petredec financial year starts on September 01 and ends on August 31 of each Gregorian year. The Company’s share in Petredec net loss achieved SR (3.84) million up to October 31, 2008 (October 31, 2007: SR 81.21 million net profits), which was included in the consolidated statement of income.
Petredec Company Ltd. was incorporated on February 20, 1980 under the laws of Bermuda. It is specialized in Liquefied Petroleum Gas (LPG) trading and shipping. The registered office of the company is located in Bermuda and the company also has offices in Monaco, Singapore and Bahamas. The Company has signed an agreement on February 22, 2005 to acquire 30.3% share of the capital of Petredec Company Ltd. for total amount of SR 187.5 million (equivalent to US$ 50 million).
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