| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The Group made a net loss of SR 35.9 million in current quarter as compared to the net loss of SR 43.2 million in the same quarter of the previous year and the change in net losses of the current quarter compared with net loss of the same quarter of the previous year are mainly due to following impacts:• Higher volumes in current quarter as compared to same quarter of previous year.• Decreased expenses in current quarter as compared to same quarter of the previous year.• Increased share of profit from associates in current quarter as compared to net losses in same quarter of the previous year. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | The Group made a net loss of SR 35.9 million in current quarter as compared to the net loss of SR 46.6 million in the previous quarter and the change in net losses of the current quarter compared with net loss of the previous quarter are mainly due to following impacts:• Lower volumes in current quarter as compared to previous quarter.• Decreased one-off expenses and finance cost in current quarter as compared to previous quarter.• Increase in share of profit from associates in current quarter, as compared to previous quarter. |
| Statement of the type of external auditor’s report | Qualified conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | Basis for Qualified Conclusion• As stated in note 6, the consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SR 313.2 million and share of results of SR 6.70 million as at and for the three-month period ended 31 March 2021 (SR 319.12 million and SR 1.52 million as of and for the year ended 31 December 2020). The associate had trade receivables amounting to SR 48 million, out of which the Group’s share is SR 24 million; that are overdue for more than one year, against which management has not recognized any allowance for expected credit losses. Management was unable to provide us with adequate information to ensure the recoverability of those trade receivables balances. Had we been provided adequate information, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended 31 March 2021.• As stated in note 17, the Group received assessments from the General Authority for Zakat and Tax (GAZT), claiming additional Zakat liabilities of SR 199.8 million (31 December 2020: SR 201.9 million) in respect of the assessment for prior years against which the Group has filed appeals. It is management’s assertion that they have grounds to contest against items included in the assessments raised by GAZT, that the outcome of the appeals is uncertain at this stage and, therefore, it is not possible to determine the potential Zakat provision. No provision has been made in these consolidated financial statements for the items under appeal and for any potential exposure relating to open years not yet assessed by GAZT. We have not been provided details or basis of certain appeals, including details of zakat computation in respect of certain open years for the Company and of the certain subsidiaries. Had we been able to complete our review of zakat assessments, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended 31 March 2021.Material Uncertainty Related to Going ConcernWe draw attention to Note 2.5 in the interim condensed consolidated financial statements which states that the Group incurred a net loss of SR 35.86 million during the three-month period ended 31 March 2021 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 67.76 million. These events or conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.Other MatterThe interim condensed consolidated financial statements of the Group for the three-month period ended 31 March 2020 were reviewed by another auditor who expressed a modified review conclusion on those financial statements on 17 June 2020.Qualified ConclusionExcept for the adjustments to the interim condensed consolidated financial information that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information does not present fairly, in all material respects, the financial position of the Group as at 31 March 2021, and of its financial performance and its cash flows for the three-month period then ended in accordance with IAS 34, as endorsed in the Kingdom of Saudi Arabia. |
| Reclassification of Comparison Items | N/A |
| Additional Information | In line with IAS 33 Earnings per share, loss per share for the period ended 31 March 2021 and for the period ended 31 March 2020 were calculated by dividing the loss from main operations and net loss for each period by weighted average number of shares outstanding during the period.The Company’s accumulated losses as at March 31, 2021 reached SR 98.3 million (SR 62,4 million as at December 31, 2020) whereby amounting to 27,26% of it’s share capital as at period ended March 31, 2021 (17.31% as at year ended December 31, 2020). The Company is process of applying procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital issued by the Capital Market Authority of the Kingdom of Saudi Arabia. |
