38
39
Annual Report 2018
Twenty-nine: Official government payments
Twenty-two: Acknowledgments and disclosures
The National Shipping Company of Saudi Arabia (Bahri) is committed to paying certain fees and expenses to relevant authorities in the Saudi government in accordance with
applicable conditions and regulations. Such fees are usually regarded as expenses depending on their nature and reported in the operational results. The following table shows
government payments that are paid or payable during 2018 with a brief description and justifications.
1. The Board of Directors hereby acknowledges the following:
• Accounting records have been prepared in a sound manner • The internal control system has been established on a sound basis and implemented effectively • The Company’s ability to continue its operations is not subject to doubt
Statement of Official Government Payments during 2018
2018
2017
Description
Justification
Governmental Authority General Authority of Zakat and Tax (GAZT) General Organization for Social Insurance (GOSI)
2. Conflicts of Interest:
Governmental requirement Governmental requirement
98,036,576 76,049,149 Amounts imposed as Zakat and tax expenses as per the provisions and rules for Zakat and tax 5,945,672 5,031,165 Amounts paid or imposed as social insurance as per the law
The Board of Directors hereby acknowledges that there have been no businesses or contracts to which the Company has been a party that carries any interest for any Board member, senior executive or any person in relationship with either party.
Thirty: Sanctions and Penalties Bahri has not been subject to any sanctions or penalties of any supervisory, regulatory or judicial entity during 2018. Thirty-one: Implemented and unimplemented corporate governance provisions and justifications for non-implementation All provisions set forth in the Corporate Governance Regulations that are issued by the Capital Market Authority (CMA) shall be implemented except the following: Article / Clause No. Article / Clause Text Non-implementation Justification 39 Training of Board Members and Executive Management This Article is a guideline. The Company is committed to providing necessary training for the executive management as part of its plans for general employee development. 41 Assessment of Board Members and Executive Management This Article is a guideline. The Remuneration and Compensation Committee uses certain methods for assessment. 70 Composition of the Risk Management Committee These Articles are guidelines.
The Company’s management constantly reviews its risk management policies to ensure the implementation of approved policies and programs and prevent risks that the Company can face. Additionally, the Audit Committee ensures risk management operations and applicable systems work efficiently across all levels of the Company. This Article is a guideline. Bahri’s Articles of Association and the policies and regulations approved by the General Assembly, the Board and relevant laws and regulations guarantee the protection of the rights of all stakeholders. This Article is a guideline. The Company has as part of its policies many employee development and incentive programs.
Meetings of the Risk Management Committee Competencies of the Risk Management Committee
71 72
Regulating the Relationship with Stakeholders
83
85
Employee Incentives
87 88
Social Responsibility
These Articles are guidelines.
Social Initiatives
The Company's website shall include all information required to be disclosed and any details or other information that may be published through other disclosure methods Formation of a Corporate Governance Committee
This clause is a guideline. The Company publishes all information and details required by applicable laws and regulations to be disclosed in accordance with the method approved by the Capital Market Authority (CMA). This Article is a guideline. The Company develops, monitors the implementation of, verifies the effectiveness and amends when necessary its corporate governance rules.
3/89
95
Remuneration of Senior Executives
This Clause is a guideline.
Appendix (1)
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