Bahri Annual Report-2011

The National Shipping Company of Saudi Arabia

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Capital for the Subsidiary Companies during the year 2010 and 2011

Company type Limited Liability Limited Liability Limited Liability Limited Liability

Date of incorporation

Capital 2011

Capital 2010

Ownership % 2011

Ownership % 2010

Debt Instruments

Company

Shares

Bahri (America) Inc.

1991

3,750,000

3,750,000

100%

100%

1,000

None

Mideast Ship Management Ltd.

1996

306,540

45,000

100%

100%

1

None

NCC

1990

610,000,000 610,000,000

80%

80%

61,000,000

None

Bahri Dry Bulk

2010

200,000,000 200,000,000

60%

60%

200,000

None

Regulatory Payments

Zakat & Tax: The Company and its affiliates prepare zakat and Tax returns on a regular basis and pays zakat & tax accruals pursuant to these returns in a timely manner within the stated regulatory deadlines. All tax deductions on payments to non-resident foreign parties are also paid on a regular periodic basis pursuant to applicable laws and regulations. Bahri has not received any zakat assessments from the Department of Zakat & Income Tax (DZIT) for the period 2001 - 2010 and tax assessments for the period 2001-2004. Additionally, Bahri’s affiliate did not receive any zakat and tax assessments for the period 2005 - 2010.

Subsequently, Bahri’s affiliate NCC received additional Zakat and tax-deductible assessments for the period 1991 - 2004 for an amount of SAR 59 million. The affiliate objected to certain items of those assessments and to the method of their treatment. In April 2010, a final settlement was reached with the Department of Zakat and Income Tax for those years which amounted to SAR 53 million, of which the affiliate paid SAR 26 million in 2011 and filed a request with the DZIT for installment of the balance of this amount. Bahri and its affiliates formed sufficient provisions to account for any zakat and tax claims for these periods.

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