Consolidated Financial Statements
The accompanying consolidated financial statements include the activities of the Company and its subsidiaries, in which the Company owns more than 50% of owners’ equity and/or has control over those subsidiaries. The Company established and/or invested in the following subsidiaries and affiliates:
Date of incorporation
Ownership % 2010
Ownership % 2009
Name
Activity
Location
Consolidated Subsidiaries: National Shipping Company of Saudi Arabia (America) Inc.
Company’s ships agent
USA
1991
100 %
100 %
Mideast Ship Management Ltd.
Ship management
Dubai
1996
100 %
100 %
National Chemical Carriers Ltd. Co. (NCC)
Petrochemicals transportation
Riyadh
1990
80 %
80 %
Al-Bahri Company for Bulk Transportation
Bulk transportation
Riyadh
2010
60%
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Affiliates: Petredec Ltd.
Liquefied petroleum gas transportation Glass manufacturing & trading
Bermuda
1980
30.3 %
30.3 %
Arabian United Float Glass Co.
Riyadh
2006
10%
10%
2. Significant Accounting Policies a- Accounting convention
The accompanying consolidated financial statements are prepared in accordance with the accounting standards issued by the Saudi Organization for Certified Public Accountants (SOCPA) and under the historical cost convention, except for the investment in financial instruments and derivative financial instruments at fair value. The Company applies the accrual basis of accounting in recognizing revenues and expenses. b- Period of financial statements According to the by-laws of the Company, the fiscal year of the Company starts on the 1st of January and ends on December 31st of each Gregorian year. c- Basis of consolidation For the purpose of consolidating accounts, inter-company transactions and balances are eliminated in the consolidation process. Minority interest relating to third parties (other partners in the subsidiaries) is also accounted for in the subsidiaries’ net assets and income. d- Use of estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reported period. Although these estimates are based on management’s best knowledge of current event and actions, actual results ultimately may differ from those estimates.
The National Shipping Company of Saudi Arabia Annual Report 2010
55
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