Bahri Annual Report-2012

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)

15. Earnings per Share and Dividend

Earnings per share was calculated based on the number of shares outstanding during the years ended December 31, 2012 and 2011 totaling 315 million shares. The General Assembly approved in its meeting held on April 22, 2012 the payment of cash dividends of 5% of the share capital amounting to SR 157.5 million, representing SR 0.5 per share for the year 2011. The dividends were paid on May 9, 2012. The balance of unclaimed dividends as of December 31, 2012 amounted to SR 30.94 million (2011: SR 30.72 million). The Board of Directors also decided in its meeting held on Safar 7, 1434H, corresponding to December 20, 2012G, to submit a recommendation to the General Assembly proposing the approval of cash dividends of SR 315 million to the shareholders for the year ended December 31, 2012, representing SR 1 per share, which is 10% of the share capital. The earnings per share from other activities for 2012 was SR 0.16 (2011: SR 0.18). 16. Zakat and Income Tax The main components of the zakat base of the Company under zakat and income tax regulations are principally comprised of shareholders’ equity, provisions at the beginning of year, long-term borrowings and adjusted net income, less net book value of fixed assets, investments and certain other items.

The Company’s zakat and tax status

The Company has submitted zakat returns for all years up to 2011. The Company has submitted all withholding tax returns up to August 2012 and paid all zakat and withholding tax relating to the submitted returns. The Company received an additional zakat and withholding tax assessment for the years 2001 to 2007 amounting to SR 22 million. The Company objected to these additional assessments and its calculation method to the Department of Zakat and Income Tax (“DZIT”). The Company has not received a final assessment for the years from 2008 until 2011. Since the application of the new tax law, the Company has been paying withholding taxes in respect of any payment to non-resident parties on due time. The Company believes that adequate provision is maintained at December 31, 2012 for any potential zakat and tax claims by the DZIT for the concerned years.

Zakat and Tax status for NCC

NCC has submitted the zakat returns for all years up to 2011 along with all withholding tax returns up to November 2012 and paid the zakat and withholding tax amounts due according to these returns. NCC received additional zakat and withholding tax assessments for the years 1991 to 2004 amounting to SR 59 million. NCC appealed against some of the items shown on the assessments and the way they were treated by the DZIT. In April 2010, NCC reached an agreement for a final settlement relating to the mentioned assessments for the amount of SR 53 million. Accordingly, it paid SR 26 million during 2011 and requested to pay the remaining amount in installments over 5 years starting July 2012. NCC believes it maintains an adequate provision for zakat and withholding tax as at December 31, 2012.

Zakat returns are prepared separately for the Company and NCC.

Zakat and Tax status for Bahri Dry Bulk

Bahri Dry Bulk was registered with the DZIT and obtained its Unique Number. The company is in the process of preparing its first Zakat return and submitting it to the DZIT. The company believes it maintains an adequate provision for zakat and tax liability as at December 31, 2012.


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