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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