Saudi Cable Co. announces its Annual financial results for the period ending on 2018-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 865,023 | 1,342,477 | -35.565 | ||
| Total Profit (Loss) | -95,866 | 51,918 | - | ||
| Profit (Loss) Operational | -208,126 | -87,905 | 136.762 | ||
| Net Profit (Loss) after Zakat and Tax | -68,627 | -80,321 | -14.559 | ||
| Total Comprehensive Income | -53,653 | -89,799 | -40.252 | ||
| Total Share Holders Equity (after deducting minority equity) | 161,797 | 215,450 | -24.902 | ||
| Profit (Loss) per Share | -2.23 | -1.45 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current year compared to last year | The reasons for net loss of current period compared with the net loss 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 228 million as compared to SR 77 million same period of last year, from the restructuring banks as detailed below. b.Gain on disposal of subsidiary amounting to SR 47 million, which occurred in the current period. c.Net results of certain subsidiaries and associates include one off negative adjustments of significant impact in 2018. d.Reduction in operating expenses and finance cost. e.Lower volume in current period as compared to the same period of last year |
| Type of the external auditor's opinion | Qualified opinion |
| External auditor's report containing reservation | We have audited the consolidated financial statements of Saudi Cable Company (A Saudi Joint Stock Company) (the “Company”) and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position as of December 31, 2018, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in shareholders’ equity and consolidated statement of cash flows for the year then ended, and the accompanying notes which form an integral part of these consolidated financial statements, including a summary of significant accounting policies.
In our opinion, except for the effects of the matters described in the paragraph of basis for Qualified Opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2018, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants.
Basis for Qualified Opinion a. We did not receive certain banks confirmations for the balances amounting to SAR 2.23 million, in addition to the loan balance with Al Rajhi bank amounting to SAR 261.89 million as of December 31, 2018. Consequently, we were unable to determine whether adjustments, if any, may require if we received these bank confirmations and we were unable to determine the possible impact on the consolidated financial statements for the year ended December 31, 2018. In addition, we were unable to perform sufficient alternative audit procedures to satisfy ourselves regarding the completeness and existence of these bank balances.
b. As of December 31, 2018 the subsidiary; Mass Kablo Ve Ticaret Anonim Sirketi, reported a net loss amounting to SAR 94.5 million and its accumulated losses at that date have reached to SAR 413.3 million, representing 86.7% of the Subsidiary’s share capital, which indicate a significant doubt about its ability to continue as going concern and its ability to meet it’s obligations when it becomes due. The Subsidiary has been restructuring its due amounts to banks and other creditors and plans to reduce its payables with future cash flows from its current projects. Therefore, the Company’s Management does not foresee any risk regarding going concern and has prepared their financial statements under going concern basis.
We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ (“IESBA”) “Code of Ethics for Professional Accountants” together with the ethical requirements that are relevant to our audit of the consolidated financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA requirements “Code of Ethics for Professional Accountants”.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
| Reclassifications in annual financial results | Certain figures for 2017 have been reclassified to conform to the presentation in the current year. |
| Additional Information | Emphasis of Matter.
Without further qualifying our opinion, we draw attention to the following: - As stated in notes (20) to the consolidated financial statements and in accordance with the Board of Directors' decision dated August 2, 2018, the Group has absorbed the accumulated losses by SAR 293.5 million through a reduction of the Group’s share capital. Accordingly, the Group’s new capital has been revised to SAR 110.6 million.
- As stated in note (28) to the consolidated financial statements, the Group has disposed one of its subsidiaries through sale on August 31, 2018.
Other Matter. The Group's current liabilities exceeded its current assets by SAR 369.9 million (2017: SAR 304.2 million), which indicates that the Group is unable to meet its short-term liabilities when it becomes due. |
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