The National Shipping Company of Saudi Arabia (A Saudi Joint Stock Company) Notes to the Consolidated Financial Statements As of December 31, 2012 (in Thousands of Saudi Riyals)
21. 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:
2012
Total assets
Total liabilities Gross operating income
Net profit
Company Name
National Chemical Carriers Ltd. Co.
3,705,071
(2,528,093)
145,082
98,082
Mideast Ship Management Ltd.
59,455
(55,603)
41,248
2,068
NSCSA (America) Inc.
18,046
(9,768)
17,359
796
Bahri Dry Bulk Company LLC
206,143
(7,556)
8,254
4,751
2011
Total assets
Net profit / (Loss)
Company Name
Total liabilities Gross operating income
National Chemical Carriers Ltd. Co.
3,647,375
(2,568,479)
151,754
135,435
Mideast Ship Management Ltd.
59,904
(58,120)
40,665
1,608
NSCSA (America) Inc.
10,972
(3,490)
16,864
238
Bahri Dry Bulk Company LLC
199,124
(5,288)
---
(6,164)
22. Commitments and Contingencies
The Company had outstanding letters of guarantee of SR 238.85 million at December 31, 2012 issued in the Company’s ordinary course of business. The Company also has certain outstanding legal proceedings that have arisen in the ordinary 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 results of operations or its financial position.
23. Financial Instruments and Risk Management
The Company’s activities, including subsidiaries, expose it to a variety of financial risks: market risk (including currency risk, fair value and cash flow commission rate exposure and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance.
Financial instruments carried on the balance sheet principally include cash and cash equivalents, investments, receivables, borrowings, derivative financial instruments, payables and certain accrued expenses.
Financial assets and liabilities are offset and net amounts are reported in the financial statements when the Company has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and liability simultaneously.
100
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