Bahri Annual Report-2011

Financial Statements Report 2011

Notes To The Consolidated Financial Statements For the year ended December 31, 2011 (In Thousands Saudi Riyals)

15. EARNINGS PER SHARE AND DIVIDENDS Earnings per share was calculated based on the number of shares outstanding during the years ended December 31, 2011 and 2010 totaling to 315 million shares. The General Assembly on March 29, 2011 approved dividends at the rate of 10% of the share capital equal to SR 315 million at SR 1.0 per share for 2010 and the distribution was completed on April 13, 2011. The balance of unclaimed dividends as of December 31, 2011 amounted to SR 30.72 million (2010: SR 26.9 million). NCC’s shareholders approved dividends of SR 100 million for 2010 which was distributed during the second quarter of 2011.The Company’s share of these dividends amounted SR 80 million and the minority shareholders’ share amounted to SR 20 million. The earning per share from non-operating income is SR 0.18 for 2011 (2010: SR (0.12). 16. ZAKAT AND INCOME TAX The significant components of the zakat base of the Company under zakat and income tax regulations are principally comprised of shareholders’ equity, provisions at the beginning of year, long-term borrowings and adjusted net income, less deductions for the net book value of fixed assets, investments and certain other items. The Company’s zakat and tax status The Company finalized its zakat and tax status with the DZIT up to 2000. The Company submitted the zakat returns for all fiscal years from 2001 up to 2010 and paid the zakat due according to these returns. The Company has not received zakat assessments from the DZIT for these years.

The Company also has not received the final withholding tax assessments for the years 2001 up to the end of July 2004, the date of enforcement of the new tax law. Since the enforcement of the new tax law, the Company pays regularly the withholding tax on payments to non-resident parties. The Company believes that adequate provision is maintained at December 31, 2011 for any potential zakat and tax claims by DZIT for the concerned years. NCC submitted the zakat returns for all fiscal years up to 2010 and the withholding tax returns up to November 2011 and paid the zakat and withholding taxes due according to these returns. NCC received additional zakat and withholding tax assessments for the years 1991 to 2004 amounting to SR 59 million. NCC had filed appeals against some items in these assessments and their treatments. In April 2010, NCC reached an agreement with the DZIT for a final settlement of the above assessments in the amount of SR 53 million for the above- mentioned assessment years. NCC paid SR 26 million of this due amount during 2011 and has requested the DZIT for payment of the remaining amount on installment basis. NCC believes that it maintains adequate provision for zakat and withholding taxes as at December 31, 2011.  Zakat and Tax status for the subsidiary (NCC)

Zakat returns are prepared separately for the Company and NCC.

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