Saudi Cable Co. announces the interim financial results for the period ending on 30-06-2018 (Six Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | -97.24 | 39.38 | - | -20.72 | -369.31 |
| Gross profit (loss) | -3.24 | 10.05 | - | 0.15 | - |
| Operational profit (loss) | -23.75 | -26.91 | 11.74 | -29.84 | 20.41 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | -117.96 | 15.73 | - |
| Gross profit (loss) | -3.09 | 21.89 | - |
| Operational profit (loss) | -53.59 | -48.96 | -9.46 |
| Earning or loss per share, Riyals | -2.92 | 0.22 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The reasons for net loss of current quarter compared with the net profit of similar quarter of last year, are mainly due to the following items included in the statement of comprehensive income: a.Absence of a waiver of loans in current quarter as compared to the same quarter of last year which was SR 77 million from one of the restructuring bank as detailed below. b.Reduction in operating expenses. c.Results from associates include one off adjustments of significant negative impact in the current quarter as compared to the same quarter last year. d.Lower volume in current quarter as compared to the same quarter of last year |
| Reasons of increase (decrease) for period compared with same period last year | The reasons for net loss of current period compared with the net profit of similar period of last year, are mainly due to the following items included in the statement of comprehensive income: a.A waive off of loans totaling SR 24.99 million as compared to SR 77 million same period of last year, from one of the restructuring bank as detailed below. b.Results from associates include one off adjustments of significant negative impact in the current period as compared to the same period of last year c.Lower volume in current period as compared to the same period of last year |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reasons for net loss of current quarter compared with the net loss of previous quarter of this year, are mainly due to the following items included in the statement of comprehensive income: a.Absence of a waiver of loans in current quarter as compared to previous quarter of this year of SR 24.99 Million. b.Results from associates include one off adjustments of significant negative impact in the current quarter as compared to the previous quarter of this year. |
| External auditor's report containing reservation | Scope of review We conducted our review in accordance with International Auditing Standard review 2410 Interim Financial Information performed by the independence auditor of the entity that is endorsed in the Kingdom of Saudi Arabia. A review consists principally of applying analytical procedures to financial data and information and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with International Auditing Standard that is endorsed in the Kingdom of Saudi Arabia, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion. Observations resulting in qualified review conclusion: A-We were unable to obtain sufficient appropriate evidence in respect of the recoverability of unbilled revenues related to a subsidiary, amounted to SR 16.10 million as of March 31, 2018 (December 31, 2017: SR 20.66 million) that are overdue for more than one year. Consequently, we were unable to determine whether adjustments might have been necessary in respect of unbilled revenue as at March 31, 2018. B-We were unable to obtain sufficient appropriate evidence in respect of the recoverability of development costs amounting to SR 15.4 million as of March 31, 2018 (December 31, 2017: SR 13.4 million), in the absence of commercial and financial feasibility of specialized cables and its accessories. Consequently, we were unable to determine whether adjustments might have been necessary in respect of development costs as at March 31, 2018. C-We were unable to obtain sufficient appropriate evidence in respect of the accrued expenses related to Saudi Cable Company amounting to SR 14.97 million as of March 31, 2018 (December 31, 2017: SR 13.5 million). In light of the above, we were not able to determine whether any adjustments to accrued expenses were required and we were unable to determine the possible impact on the consolidated interim financial information for the period ended March 31, 2018. D-We were unable to obtain sufficient appropriate evidence in respect of the inventory stock count as of December 31, 2017 as we were appointed as an auditor after the date of stock count. Moreover, we unable to obtain sufficient appropriate evidence for slow moving items. In light of the above, we were not able to determine whether any adjustments to inventory were required and we were unable to determine the possible impact on the consolidated interim financial information for the year ended March 31, 2018. Qualified review conclusion Based on our review, except for the effects of the matters described in the paragraphs mentioned above, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information does not prepare, in all material respects, in accordance with IAS 34 Interim Financial Reporting that is endorsed in the Kingdom of Saudi Arabia. |
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