The movement in ships under construction and others is as follows:
2010
2009
Balance, beginning of the year
1,431,698 2,105,137
Additions
266,300 1,185,974
Transfers to fixed assets
---
(1,859,413)
Recovery of costs on cancelled ships under construction contracts
(686,532)
---
Balance, end of the year
1,011,466 1,431,698
The balance of ships under construction and others as of December 31, 2010 includes SR 12.5 million (2009: SR 9 million) which represents amounts incurred for the construction of the Company’s new building and software development costs and SR 40.6 million (2009: SR 28.9 million) for construction of Company’s new office in Dubai. The Company received all VLCCs under construction and there are no capital commitments to shipyards related to VLCCs as of December 31, 2010 and 2009. The National Chemical Carriers Ltd. Co. capital commitments for constructing chemical tankers amounted to SR 1.05 billion as of December 31, 2010 (2009: SR 1.68 billion). Capital commitments related to a new office in Dubai for Mideast Ship Management Ltd. amounted to SR 0.74 million as of December 31, 2010 (2009: SR 4.48 million). The capitalized portion of financial charges related to finance granted for the construction of carriers and new office in Dubai during the year 2010 amounted to SR 12.36 million (2009: SR 23.13 million).
The National Shipping Company of Saudi Arabia Annual Report 2010
68
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