| Reasons of annual financial results |
The cause in decrease in net profit for the current period as compared with the similar period of the previous year is attributed to taking a provision of 45 million for cylinder inventory as well as increase in expenses for replacement of cylinders of the 22 kilos category by 13 million and increase in general and administrative expenses by 11 million and the increase in sale and marketing expenses by 6.5 million and the increase in Zakat provision by 2.9 million despite the increase in sales amounting to 9 million and decrease in the cost of goods sold by 18 million and the increase in investment revenues by 32.6 million and increase in other revenues as profits of sale of assets by 2.9 million |
| External auditor's report containing reservation |
Without reservation in our opinion we hereby draw attention to Note 29 in the attached financial statements, on the existence of a lawsuit filed against the company through the General Prosecutor regarding explosion of the carrier belonging to the company that occurred in Riyadh in 2012. Results of this case and financial commitments arising thereof (if any) cannot be determined now and our opinion has not changed with regard to this issue. |
| Reclassifications in annual financial results |
Re-itemization of the comparison numbers for the fiscal period ended on 31 Dec 2016 was done to be in conformity with items presentation for the period of 31 Dec 2017 |
| Other notes |
The total revenue for the current period was 1.985 million Saudi riyals compared to 1.975 million Saudi riyals for the similar period of the previous year, an increase of 0.5%. The total equity amounting to (no minority equity) as of the end of current period was 1.119 million Saudi riyals compared to 1.119 million Saudi riyals for the similar period of the previous year. The total income during the current period was 123 million Saudi riyals, a 13% decrease, with a one-time provision of 52 million taken to maintain its financial position |
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