132
133
Annual Report 2018
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
19. EMPLOYEES’ BENEFITS (continued)
21. ZAKAT AND TAXES (continued)
A quantitative sensitivity analysis for significant assumptions on the defined benefit plans are shown below:
The movement in the provision for deferred tax is as follows:
2018
2017
2018
2017
Opening balance
12,235 11,276 23,511
-
Discount rate 0.5 % increase 0.5% decrease Withdrawal rate 10% increase 10% decrease
Provided for the year
12,235 12,235
(2,259)
(3,582)
Ending balance
2,406
3,887
The Company has filed its zakat returns up to 2017. All the assessment related to the years up to 2012 have been closed with GAZT. GAZT did not close or issue any assessment related to following years 2013-2017. The Company believes that adequate provisions have been made against any potential zakat and taxes liabilities. The Company has submitted its zakat returns for all fiscal years up to 2017 to the General Authority of Zakat and Tax (the “GAZT”), zakat assessments have been agreed with the General Authority of Zakat and Tax (“GAZT”) for all the years up to 2004. The Company has received from the GAZT zakat assessments for the years 2005 to 2008 and for the years from 2009 to 2012 claiming additional payments of SAR 10 million and SAR 42 million respectively. The Company has filed an appeal against the Preliminary Appeal Committee resolution related to the assessment for the years from 2005 to 2008 to the higher appeal committee and still not resolved as of the date of these financial statement. The Company also filed an appeal against the assessment for the years from 2009 to 2012, and the appeal is still under review with the GAZT. The Company’s management believes that the provision for zakat and withholding tax is sufficient as at 31 December 2017. The Company did not receive from GAZT the zakat assessments for the years from 2013 to 2017. The subsidiary company believes that adequate provisions have been made against any potential zakat and taxes liabilities. Zakat and Taxes status for National Chemical Carriers Company
(778)
600
845
(675)
Future salary increases 1% increase
5,163 (4,645)
8,319
1% decrease (7,193) The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit plans as a result of reasonable changes in key assumptions occurring at the end of the reporting year. The sensitivity analyses may not be representative of an actual change in the defined benefit plans as it is unlikely that changes in assumptions would occur in isolation from one another.
20. TRADE AND OTHER PAYABLES
Zakat and Tax status for Bahri Dry Bulk
The Company submitted its zakat returns for the years up to 2017. The GAZT has not issue any zakat assessments on the subsidiary company since 2010 (date of incorporation). The subsidiary company believes that adequate provisions have been made against any potential zakat and taxes liabilities.
2018
2017
Trade payables
457,582 272,501 47,875 20,014 75,368 873,340
382,988 211,431 40,051 21,482 38,995 694,947
Accrued expenses Unclaimed dividend
22. GENERAL AND ADMINISTRATIVE EXPENSES
Value of sold shares (related to previous shareholders)
2018
2017
Others
Employees salaries and benefits
100,190 12,239 12,348 10,080
91,833 22,682 15,075 10,146
Professional, legal and consultation fees Amortization of prepaid expenses
21. ZAKAT AND TAXES
Rent
The Group’s zakat is based on financial statements of the Company and its wholly owned subsidiaries, in accordance with the General Authority of Zakat and Tax (“GAZT’) regulations. The Company and its wholly owned subsidiaries filed their zakat and tax returns separately. The movement in the provision for zakat and taxes is as follows:
Depreciation
5,824
4,898 1,638
Provision for doubtful debts (note 13)
21,302
Others
784
25,002 171,274
162,767
2018
2017
Opening balance
232,029 80,910 (98,037) 214,902
219,553 88,525 (76,049) 232,029
Provided for the year
Payments during the year
Ending balance
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