Bahri Annual Report-2010

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

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