On January 31, 2022, the Board of Directors notified that the company’s accumulated losses reached 63.01% of the capital
Date of Realization of the Loss
2022-01-31 Corresponding to 1443-06-28
Date of Notifying the Board of Directors with the Accumulated Loss
2022-01-31 Corresponding to 1443-06-28
Amount of the Accumulated Losses
Million SR 227.2
Percentage of the Accumulated Losses out of the Capital (%)
63.01 %
Major Reasons Leading to the Losses
1. Lower volume in current period as compared to the same period of last year due to unavailability of the working capital in order to secure inputs for the production.2. Increase in the finance cost in current period compared to the same period of the last year as a result of restructuring of some previous debts.3. Decrease of other incomes in current period as compared to the same period of the last year.4. Allocating provision for the deferred tax associated with a subsidiary Company in Turkey.
Measures to be Taken by the Company in Regard to Such Losses
Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 50% or more out of the Capital Thereof will be Applied
Application of the Procedures and Instructions
Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied
Reference to additional procedures or instructions
The Board also recommended to take the required procedures and complying with the relevant laws and regulations with regard to companies whose losses exceeded 50% of the capital in terms of disclosure and maintaining Shareholders’ rights and interests.
