Annual Report 2017
188
189
Notes to the Consolidated Financial Statements (continued) December 31, 2017 (In Thousands Saudi Riyal)
11 Consolidated Financial Statements
21. ZAKAT AND TAXES (continued) Zakat and Taxes status for National Chemical Carriers Company (continued) The Company also filed an appeal against the assessment for the years from 2009 to 2012, and the appeal is still under review with the GAZT. The Company’s management believes that the provision for zakat and withholding tax is sufficient as at December 31, 2017.
Notes to the Consolidated Financial Statements (continued) 31 December 2017 (In Thousands Saudi Riyal)
20. TRADE AND OTHER PAYABLES (continued)
The Company did not receive from GAZT the zakat assessments for the years from 2013 to 2016.
1 January 2016
2017
2016
Zakat and Tax status for Bahri Dry Bulk The Company submitted its zakat returns for the years up to 2016. The GAZT has not issue any zakat assessments on the subsidiary company since 2010 (date of incorporation). The subsidiary company believes that adequate provisions have been made against any potential zakat liability.
545,391
Trade payables
430,652
766,993
188,075
Accrued expenses
190,605
142,323
37,432
Unclaimed dividend
40,011
35,095
29,521
Others*
33,679
54,182
22. GENERAL AND ADMINISTRATIVE EXPENSES
800,419
694,947
998,593
1 January 2016
2017
* This item includes SAR 30.7 million as at January 1, 2016 and represents the balance of the amounts received from a shipbuilding company for the repairs related to the six vessels built by the National Chemical Transportation Company Limited (a subsidiary) SR 6.12 million for each vessel. One vessel was repaired during 2013 and during the year ending December 31, 2016, repairs were made to the remaining five ships during the maintenance period resulting in savings of SAR 27.8 million, which were recognized in other income (note 23). 21. ZAKAT AND TAXES The Group’s zakat is based on financial statements of the Company and its wholly owned subsidiaries, in accordance with the General Authority of Zakat and Tax (“GAZT’) Ministerial Resolution No. 1005 dated 28 Rabi’ Al-thani 1428H.
Employees salaries and benefits
91,833
84,234
Professional, legal and consultation fees
22,682
22,900
Amortization of prepaid expenses
15,075
4,872
Rent
10,146
9,056
Depreciation
4,898
1,141
Provision (reversal of provision) for doubtful debts (note 13)
1,638
(15,452)
The Company and its wholly owned subsidiaries filed their zakat returns for each company separately.
Others
25,002
4,311
The movement in the provision for zakat and taxes is as follows:
171,274
111,062
January 1, 2016
23. OTHER EXPENSES, NET
2017
2016
1 January 2016
Opening balance Provided for the year Reversal of tax provision Payments during the year
2017
296,811
219,553
142,898
106,649
100,760
181,354
Finance lease impairment (note 10)
(28,904)
-
(150,176)
-
-
Gains (loss) from disposal of property and equipment
5,286
(32,942)
(33,731)
(76,049)
(27,441)
Vessels maintenance settlement (note 20)
-
27,813
Ending balance
219,553
244,264
296,811
Recovery from insurance claims
-
1,363
The Company has filed its zakat returns up to 2016. The zakat assessments have been agreed with the General Authority of Zakat and Tax (“GAZT”) for all the years up to 2007. The GAZT has raised the zakat assessment for the years 2008 to 2012 claiming additional liabilities of SR 79 million. The Company has filed an appeal on these assessments and the appeal is still under study. The Company believes it provided a sufficient provision for zakat and withholding tax as at December 31, 2017. The Company has recognized income tax on shares of one of the shareholder starting from January 1, 2017.
Others
(580)
2,258
(24,198)
(1,508)
24. FINANCE COSTS
The Company did not receive from GAZT the zakat assessments for the years 2013 to 2016.
January 1,2016
2017
Zakat and Taxes status for National Chemical Carriers Company The Company has submitted its zakat returns for all fiscal years up to 2016 to the General Authority of Zakat and Tax (the “GAZT”), zakat assessments have been agreed with the General Authority of Zakat and Tax (“GAZT”) for all the years up to 2004. The Company has received from the GAZT zakat assessments for the years 2005 to 2008 and for the years from 2009 to 2012 claiming additional payments of SR 10 million and SR 43 million respectively. The Company has filed an appeal against the Preliminary Appeal Committee resolution related to the assessment for the years from 2005 to 2008 to the higher appeal committee, which has still not been resolved as of this date of these financial
Saudi Riyal sukuk
118,339
108,176
Murabaha financing
148,461
125,882
Drivatives re-valuation (note 28.3)
38,133
2,473
Commercial loans
3,502
3,030
308,435
239,561
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