Bahri Annual Report-2011

The National Shipping Company of Saudi Arabia

70/71

Provision for zakat and tax

Following is the movement in provision for zakat and tax during the year ended December 31:

2011

2010

Balance, beginning of the year

129,429

118,639

Amounts paid during the year

(51,272)

(26,986)

Income tax refund related to a subsidiary

922

1,411

Provisions for the year:

Zakat

21,594

35,104

Tax:

• Withholding tax

3,904

2,137

• Income tax (benefit) related to a subsidiary

(1)

(876)

Balance, end of the year

104,576

129,429

17. HEDGING RESERVE FOR LOANS COMMISSION

the market value of the commission rate swaps are recorded in the hedging reserve which is included in the shareholders’ equity.

The Company uses the commission rates swaps and caps to avoid fluctuations in commission rates on the long-term loans. The change in

18. STATUTORY RESERVE

50% of the paid-up capital. This reserve is not currently available for distribution to shareholders.

In accordance with Saudi Arabian Regulations for Companies, the Company is required to transfer 10% of the net income to the statutory reserve until such reserve equals

Powered by