Bahri Annual Report-2010

REPORT OF THE BOARD OF DIRECTORS

Capital for the Subsidiary Companies During the Year 2009 and 2010

Percentage of Ownership 2010

Percentage of Ownership 2009

Company

Date of incorporation Capital 2010 Capital 2009

NSCSA (America) Inc.

1991

3,750,000

3,750,000

100%

100%

NCC

1990

610,000,000 610,000,000

80%

80%

Mideast Ship Management Ltd.

1996

45,000

45,000

100%

100%

Bahri Dry Bulk

2010

200,000,000 ---

60% ---

Murabaha financing and long term Loans

Regulatory Payments

Zakat & Tax: NSCSA and its affiliate (NCC) are committed to make zakat payments. Zakat returns are completed at the end of each year and the applicable zakat dues are paid in a timely manner. All tax deductions on payments to non-resident foreign parties are also paid on a regular periodic basis, pursuant to appli- cable regulations. NSCSA has not received any zakat assessments from the Department of Zakat & Income Tax (DZIT) for the period 2001 - 2009 and tax assessments for the period 2001-2004. Additionally, NSCSA’s affiliate (NCC) did not receive any zakat and tax assessments for the period 2005 - 2009. NSCSA affliate received additional zakat and withholding tax assessments for the years 1991 - 2004 amounting to SAR 59 million. NSCSA filed appeals against some items in these assessments and their treatments. In April 2010, they have reached an agreement for a final settlement of the above as- sessments in the amount of SAR 53 million. The affiliate company is under discussion with the Department of Zakat & Income Tax (DZIT) for the payment installments of the amounts.

The National Shipping Company of Saudi Arabia Annual Report 2010

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