Bahri Annual Report-2017

Annual Report 2017

184

185

Notes to the Consolidated Financial Statements (continued) 31 December 2017 (In Thousands Saudi Riyal)

11 Consolidated Financial Statements

17. STATUTORY RESERVE

Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)

In accordance with the Regulations for Companies in Saudi Arabia, the Company is required to transfer 10% of net income for the year to a statutory reserve until such reserve amounts to 30% of its share capital. This reserve is not available for distribution to shareholders.

14. PREPAYMENTS AND OTHER CURRENT ASSETS

Statutory reserve comprises of the following:

The balance of prepayments and other current assets includes the following:

1 January 2016

2017

2016

1 January 2016

2017

2016

884,701

Transfers from net income

964,732

708,787

286,850

Prepaid expenses

322,624

281.142

Shares premium

1,489,103 1,489,103 1,489,103

8,406

Insurance claims

12,397

10.953

Total statutory reserve

2,453,835 2,373,804 2,197,890

42,361

Advances to suppliers

9,274

26.942

18. SUKUK AND LONG TERM LOANS

38,522

Others

20,656

18,386

376,139

364,951

337.423

January 1 2016

Note

2017

2016

15.CASH AND CASH EQUIVALENTS Cash and cash equivalents represent bank balances, cash, investments in Murabaha and short-term deposits. For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise of the following:

3,900,000 3,900,000

Sukuk

18-1 3,900,000

5,646,869 3,916,832

Murabaha loans

18-2 6,268,676

199,719

Commercial loans

18-3

163,406

236,031

9,746,588 8,052,863

Total sukuk and long term loans

10,332,082

1 January 2016

2017

2016

)1,001,146(

Less: Total current portion

)1,075,289(

)547,016(

Non-current sukuk and long term loans

9,256,793 8,745,442 7,505,847

171,731

Bank balances and cash

497,520

173,265

)81,884(

Less: prepaid financing

)76,208(

)30,631(

1,908,262 1,066,597

Murabaha and short term deposits (Note 15.1)

692,921

Net non-current sukuk and long term loans

9,180,585 8,663,558 7,475,216

Cash and cash equivalents in statement of cash flows

1,190,441 2,079,993 1,239,862

Amounts restricted by banks - Bank balances and cash

18.1 Sukuk

(14,342)

(17,993)

(23,213)

On 14 Shawwal 1436H (corresponding to 30 July 2015), the Company completed the issuance and offering of local Sukuk denominated in Saudi Riyal for public offering with nominal value amounted to SR 3,900 million, and a nominal value of SR 1 million for each Sukuk. The Sukuk issuance bears a variable rate of return at (SIBOR) plus a predetermined margin, payable semi-annually. The Sukuk is due at maturity at par value on its expiry date of 1 Muharram 1444 (corresponding to 30 July 2022).

(102,974)

- Murabaha and short term deposits

(87,715)

(73,818)

(117,316)

Total amounts restricted by banks

(105,708)

(97,031)

15.1 Murabaha and Short-Term Deposits

18.2 Murabaha loans

Murabaha and short term deposit comprise of the following:

The Group obtained long term loan during year ended 31 December 2017 amounted to SR 1,587 million (31 December 2016: SR 2,290 million, 1 January 2016: Nil). The existing loans are secured by promissory notes and mortgages against vessels (note 6). These loans are usually repayable in 10 years on quarterly and semi-annual basis. These loans carry commission at normal commercial rates. Balance of loans against which profit to be paid based on LIBOR as at 31 December 2017 is SR 3,235 million (31 December 2016: SR 3,240 million: 1 January 2016: SR 2,484 million) and balance of loans against which profit to be paid based on SIBOR at the end of 31 December 2017 is SR 3,033 million (31 December 2016: SR 2,407 million: 1 January 2016: SR 1,433 million).

1 January 2016

2017

2016

445,064

Murabaha and short - term deposits in USD

379,452

776,348

Murabaha and short - term deposits in Saudi Riyals

313,469 1,463,198 290,249 692,921 1,908,262 1,066,597

Murabaha and short term deposit yield finance income at prevailing market rates.

18.3 Commercial loans

16. SHARE CAPITAL The Company’s share capital is comprises of 393,750 thousand shares with a par value of SR 10 per share. Total authorized, issued, and outstanding shares are SR 3,937,500,000 as at December 31, 2017, December 31, 2016, and January 1, 2016.

The Group did not obtain any long term loan during year endeding December 31, 2017 (31 December 2016: Nil, January 1, 2016: Nil). The existing loans are secured by mortgages against vessels (note 6). These loans are repayable in 10 years on semi-annual basis carrying special commission at LIBOR plus normal commercial margin. Balances of loans against which profit to be paid based on LIBOR as at 31 December 2017 is SAR 163 million ( 31 December 2016: SAR 200 million, January 1, 2016: SAR 236 million ).

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