Bahri Annual Report-2017

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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