23. Consolidation of subsidiaries The consolidated financial statements include the financial statements of the Company and its subsidiaries, after eliminating all intercompany balances. Following is a summary of the financial position and results of operations of these subsidiaries as of and for the year ended December 31:
2010
Company name
Total assets Total liabilities Gross operating income Net profit (loss)
National Chemical Carriers Ltd. Co.
2,961,285
(1,917,823)
112,889 34,658 16,955
92,868
Mideast Ship Management Ltd.
56,615 12,969
(40,298)
268
NSCSA (America) Inc.
(5,725)
(1,556)
Al-Bahri Company for Bulk Transportation
200,000 ---
---
---
2009
Company name
Total assets Total liabilities Gross operating income Net profit (loss)
National Chemical Carriers Ltd. Co.
3,309,582
(2,358,988)
151,814 37,086 15,712
135,221
Mideast Ship Management Ltd.
50,626 14,715
(34,578)
4,716
NSCSA (America) Inc.
(5,915)
(2,402)
Al-Bahri Company for Bulk Transportation
---
---
---
---
24. Commitments and contengencies The Company has issued letters of guarantee of SR 77.6 million which includes a guarantee of SR 0.03 million in favor of the DZIT. These guarantees were issued against restricted cash, Murabaha and short-term deposits of SR 0.03 million (See Note 3). The Company has also certain outstanding legal proceedings that have arisen in the normal course of business. Although, the outcome of these litigations has not yet been determined, management does not expect that these cases will have a material adverse effect on the Company’s result of operations or its financial position.
In addition, refer to Note (12) in relation to future capital commitments to build chemical tankers and office building.
The National Shipping Company of Saudi Arabia Annual Report 2010
76
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