126
127
Annual Report 2018
9.2. International Maritime Industries Company (continued) Notes to the consolidated financial statements – continued For the year ended 31 December 2018
Notes to the consolidated financial statements – continued For the year ended 31 December 2018
11. OTHER INVESTMENTS, INCLUDING DERIVATIVES
The table reconciles the summarized financial information to the carrying amount of the Group’s interest in IMI as at 31 December:
The balance of other investments includes the following:
2018
2017
2018
2017
Current assets
861,758 125,513 (136,748)
375,000
Derivatives
69,207
67,572 10,711
Non-current assets Current liabilities Non-current liabilities
- - -
Investments available for sale Investment in government bonds
7,334
83
83
(1,283)
76,624
78,366
Net assets
849,240
375,000
Group’s share in net assets (19.9%)
168,999 168,999
74,625 74,625
12. INVENTORIES
Carrying amount of investment in an associate
The balance of inventory, located on the vessels, is as follow:
Revenue
-
- - -
Total net income for the year
(257,756) (51,293)
2018
2017
Group’s share of total comprehensive income (19.9%)
Fuel
283,496 53,616
232,874 51,171
Lubricant
10. RECEIVABLES FROM FINANCE LEASE
Others
6,933
6,714
344,045
290,759
On 30 January 2009, NCC signed an agreement with Odfjell (hereafter: lessee) to charter three vessels under a bareboat arrangement for a period of 10 years with a purchase option after three years. These ships were delivered to the lessee on 1 February 2009. The arrangement is considered as a finance lease as it transfers to lessee substantially all the benefits and risks
Fuel expenses amounted to SAR 1,552 million for the year ended 31 December 2018 (2017: SAR 1,084 million).
and gives the lessee a purchase option under the arrangement. The net lease receivable balance is summarized as follows:
Trade receivable includes the following items: 13. TRADE AND OTHER RECEIVABLES
2018
2017
Accounts receivable from finance leases Unguaranteed residual value at the end of the contract*
6,626
84,296 116,231 200,527 (21,932) 178,595 56,860 121,735 178,595
2018
2017
105,562 112,188
Trade receivables
681,868 761,269
774,957 277,481
Gross finance lease
Receivable from related parties (Note 26)
Unearned lease finance income Net of receivables from finance lease
(1,079)
1,443,137
1,052,438
111,109
Less: Provision for doubtful debts
(54,068)
(32,766)
Current portion
5,547
1,389,069
1,019,672
Non-current portion
105,562 111,109
Contract assets (unbilled revenue) Trade receivables and other receivable,
494,647
455,316
1,883,716
1,474,988
*The Group has reviewed the unguaranteed residual value at the end of the lease agreement as at 31 December 2018, and found a reduction amounted to SR 10.6 million. An impairment of SR 10.6 million has been recognized and charged to the consolidated statement of profit or loss. The maturity of gross finance lease (i.e. minimum lease payment (MLPs) and net finance lease (i.e. present value of MLPs) is as follows:
The movement of provision for doubtful debts is as follows:
2018
2017
Opening balance
32,766 21,302 54,068
31,128
Movement during the year (Note 22)
1,638
MLPs 2018 PV of MLPs 2018 MLPs 2017 PV of MLPs 2017
Ending balance
32,766
Less than one year
6,626
5,547
77,670 122,857 200,527
56,860 121,735 178,595
More than one year but less than five years Net investment receivable in finance leases
105,562 112,188
105,562 111,109
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