125
124
Consolidated Financial Statement
Bahri Annual Report
Consolidated Financial Statement
Bahri Annual Report
18. Zakat and Withholding Tax - Continued
17. Earnings Per Share and Dividends
parties, since they are withheld and paid by another party.
amounting to SR 2.5 per share for the year ended December 31, 2015. The dividends was distributed on April 21, 2016. On April 1, 2015, the General Assembly has approved the distribution of dividends amounting to 10% of the share capital for 2014 earnings, which amounts to SR 393.75 million, and represents SR 1 per share. A total of SR 345.9 million was distributed to the entitled shares of 2014 earnings pursuant to the agreement with ARAMCO Company for the merger of Vela vessels which indicates ARAMCO’s right to the distribution of 2014 earnings from the date of transferring the vessels to the Company. The balance of unclaimed dividends as of December 31, 2016 amounted to SR 37.43 million (2015: SR 35.1 million).
The Company’s Zakat and Tax status The Company has filed its zakat returns all years up to 2015. The General Authority of Zakat and Tax (the “GAZT”) has issued zakat assessments on the Company for the years from 2001 to 2007, claiming additional zakat liability amounting to SR 22 million. The Company filed an appeal with the GAZT on certain items of these assessments and the basis of its treatments within the statutory prescribed deadline. The appeal was accepted in form. The second Preliminary Zakat and Tax Appeal Committee (“PTAC”) has issued its ruling, upholding certain items of the appeal. The Company has appealed before Tax Appellate Committee on appealed items not upheld by the PTAC, which is still pending. An adequate provision has been made in this respect. The zakat assessments for the years 2008 to 2015 are still under review by the GAZT. Provision for the withholding tax has been recalculated and reduced by SR 150 million, per the GAZT letter obtained during this year advising that tax should not be withheld on sipping operations’ payments made by the Company to non-residents This item represents the total amounts received from one of the ships building companies as at 31 December 2016 and 2015 against charging this company with repair costs of the tanks related to the six vessels built for the National Chemical Carrier Company (subsidiary). Therefore, it was agreed to charge the ships building company an amount of SR 6.12 million for each
Earnings per share is calculated based on the number of shares outstanding during the year ended December 31, 2016 and December 31, 2015 amounting to 393.75 million share. The Board of Directors decided in its meeting held on December 15, 2016 to recommend to the General Assembly of the Company the distribution of cash dividends of SR 984.38 million to the shareholders for the financial year ended December 31, 2016, which amounts to SR 2.5 per share, and represents 25% of the share par value. The dividends was distributed on January 31, 2017 after the General Assembly approval on January 16, 2017. The General Assembly has approved in its meeting held on April 6, 2016 the distribution of cash dividends of SR 984.38 to the shareholders, The main components of the zakat base of the Group under zakat and income tax regulations are principally comprised of shareholders’ equity, provisions at the beginning of year, Murabaha financing, long-term borrowings and adjusted net income, less net book value of fixed assets, investments and certain other items.
Zakat and Tax status for National Chemical Carriers Company National Chemical Carriers Company has filed its zakat returns all years up to 2015. The General Authority of Zakat and Tax (the “GAZT”) has issued zakat assessments on the subsidiary company for the years from 2009 to 2012, claiming additional zakat liability amounting to SR 43 million, in which the subsidiary company filed an appeal with the GAZT on certain items of these assessments and the basis of its treatments within the statutory prescribed deadline. The appeal is still pending and adequate provision has been made in this respect. Bahri Dry Bulk has filed its zakat returns for the years up to 2015, and 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. ship. Maintenance was conducted for one of the vessels during the year 2013, and during the year ended 2016 maintenance was conducted for the five other vessels within the maintenance period, which resulted in an excess amount of SR 27.81 million. The excess amount has been recognized in other income (note 22). Zakat and Tax status for Bahri Dry Bulk
18. Zakat and Withholding Tax
The zakat expense is charged to the consolidated statements of income.
The Company and its subsidiaries filed their zakat returns for each company separately.
Provision for Zakat and Withholding Tax
19. Other Liabilities
Following is the movement in provision for zakat and withholding tax during the year ended December 31:
2016
2015
296,811
Provision for zakat and withholding tax at the beginning of the year
142,898
49,316
71,010
Provision for zakat for the year
(92,843)
110,344
(Reversal of) provision for withholding tax for the year
(33,731)
(27,441)
Payments during the year
219,553
Provision for zakat and withholding tax at the end of the year
296,811
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