Annual Report 2017
186
187
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
11 Consolidated Financial Statements
19. EMPLOYEES’ BENEFITS
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
January 1, 2016
2017
2016
18. SUKUK AND LONG-TERM LOANS (continued)
65,349
Opening balance
65,482
52,835
8,439
Current service cost
7,860
6,447
18.4 Commitments Loans agreements include commitments mainly related to maintaining certain ratios of leverage, debt to equity ratio and other commitments. Under the terms of these agreements, banks are entitled to demand immediate repayment of loans if none of these undertakings are met.
2,485
Interest cost
2,608
2,403
(6,424)
Benefits paid
(5,131)
(7,397)
(4,367)
Re-measurement gain (loss) on defined benefit plans
(1,352)
11,061
65,482
Ending balance
69,467
65,349
18.5 Long term loans related to subsidiary 18.5.1 National Chemical Carriers Limited Co.
The significant assumptions used in determining end of service benefit plans for the Group’s plans are shown below:
Long term loan balance for National Chemical Carriers Limited Co. consists of the following:
2017
2016
January 1, 2016
2017
2016
Discount rate
4,00% 4,00%
Withdrawal rate - for the first two years of service
30,00% 30,00%
Murabaha loans
1,754,317 1,945,248 1,449,844
Withdrawal rate - third year of service and above
3,00% 3,00%
199,719
Commercial loans
163,406
236,031
Future salaries increase - for the first three years
3,00% 5,50%
Total long term loans
1,917,723 2,144,967 1,685,875
Future salaries increase - fourth year and after
5,50% 5,50%
(463,653)
Less: Total current portion
(245,547)
(199,954)
Non-current long term loans
1,672,176 1,681,314 1,485,921
A quantitative sensitivity analysis for significant assumptions on the defined benefit plans iSAR shown below:
(6,423)
Less: prepaid financing
(5,734)
-
Net non-current long term loans
1,666,442 1,674,891 1,485,921
2017
2016
18.5.2 Bahri Dry Bulk LLC
Discount rate 0.5 % increase
Long term loan balance for Bahri Dry Bulk LLC consists of the following:
(3,582)
(3,050)
0.5% decrease
3,887
3,577
January 1, 2016
2017
2016
Withdrawal rate 10% increase
600
622
353,850
Murabaha loans
324,450
383,250
10% decrease
(675)
(637)
353,850
Total long - term loans
324,450
383,250
Future salary increases 1% increase
(29,400)
Less: Total current portion
(29,400)
(29,400)
8,319
7,295
324,450
Non-current long - term loans
295,050
353,850
1% decrease
(7,193)
(6,335)
(2,105)
Less: prepaid financing
(1,829)
(2,382)
The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit plans as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses may not be representative of an actual change in the defined benefit plans as it is unlikely that changes in assumptions would occur in isolation from one another.
322,345
Net non-current long - term loans
293,221
351,468
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