Saudi Cable Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

Share :

Gross Profit (Loss)-57,662-35,17763.919
Operational Profit (Loss)-169,811-109,33355.315
Net Profit (Loss) after Zakat and Tax-55,012-61,831-11.028
Total Comprehensive Income-56,343-68,962-18.298
Total Share Holders Equity (after Deducting Minority Equity)285,42291,765211.035
Profit (Loss) per Share-1.53-2.79
All figures are in (Thousands) Saudi Arabia, Riyals
The reason of the increase (decrease) in the net profit during the current year compared to the last year isThe Group made a net loss of SR 55.0 million in current year as compared to the net loss of SR 61.8 million in the previous year and change in net losses of the current year compared with net loss of the previous year are mainly due to following impacts:• Lower volumes with lower margins in current year as compared to previous year.• Increased one-off and routine expenses in current year as compared to previous year.• Increased other income as a result of reversals in provisions for the current year as compared to previous year.• Increased share of profit from associates in the current year as compared to previous year.
Statement of the type of external auditor’s reportQualified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor OpinionBasis for Qualified Opinion- As stated in note 10, the consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SR 319.12 million and share of results of SR 1.52 million as at and for the year ended 31 December 2020 (SR 318.18 million and SR 0.40 million as of and for the year ended 31 December 2019). 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 sufficient appropriate audit evidence to ensure the recoverability of those tradereceivables balances. Consequently, we were unable to determine whether any adjustments to the Group’s share of results in and the carrying value of the associate were necessary for and as of the yearended 31 December 2020.- As stated in note 18, the Group received assessments from the General Authority for Zakat and Tax (GAZT), claiming additional Zakat liabilities of 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 the assessments, including details of zakat computation and appeals in respect of certain open years and of certain subsidiaries. We are, therefore, unable to determine whether any adjustments are necessary to the Group’s current or prior years’ zakat charges and corresponding liability.Material Uncertainty Related to Going ConcernWe draw attention to note1 to the consolidated financial statements which states that the Group incurred a net loss of SR 55.73 million during the year ended 31 December 2020 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 34.64 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 further modified in respect of this matter.Other MattersThe consolidated financial statements of the Group for the year ended 31 December 2019 were audited by another auditor who expressed a modified opinion on those financial statements on 30 March 2020.
Reclassification of Comparison ItemsFollowing prior year amounts have been reclassified to conform to the presentationa) Supplier financing from Noble Resources International Pte Ltd (Noble) reclassified from trade payable to term loans and borrowings.b) Expected credit losses shown on the face of statement of comprehensive income.c) Other reclassifications that are not material in terms of value or disclosure to the accompanying consolidated financial statements.The above reclassifications have not resulted in change of the amounts presented in current or prior years and did not have any impact on the cash flows and equity of the Company.
Additional Informationa) Operational losses for 2019 have changed as a result of reclassifications of expected credit losses from other income-net to operational losses, whereby operational losses in comparatives of the accompanying audited financial statements are SR 109,333 (disclosed in 2019’s audited financial statements as SR 107,402).b) Loss per share (basic and diluted) in comparatives of the accompanying audited financial statements are SR -2.79 which in 2019’s audited financial statements were disclosed to be SR -5.59. The change is a result of adjusting weighted average number of shares considering the rights issue initiated in 2019.