| Element List |
Explanation |
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year |
The decrease in net profit is due to decrease in gross profit and income from operations resulting mainly from decrease in profit from investments, increase in general and administrative expenses, increase in sales and distribution expenses, and increase in financing charges and income tax. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter |
The generation of net profit compared to loss during the previous quarter is due to the increase in gross income and income from operations resulting mainly from generating profits from investments against the generation of loss in the previous quarter, decrease in general and administrative expenses, decrease in sales and distribution expenses, and decrease in financing charges and income tax. |
| Type of the external auditor's opinion |
Emphasis of Matter paragraph |
| External auditor's report containing reservation |
We draw your attention to note 16b in the accompanying condensed consolidated interim financial statements as at 31 March 2019. The title deed of a plot of land purchased at a cost of SR 214,500,000 (current book value of SR 181,500,000) has been canceled by court of appeal decision. Our conclusion is not considered qualification. |
| Additional Information |
At the Ordinary Assembly General Meeting held on 1 May 2019 (corresponding to 26 Sha'ban 1440H), the shareholders decided to approve the reduction of the statutory reserve to 24.7% of the share capital by transferring the amount of SR 94,110,245 to cover the accumulated losses. The Company has adopted International Financial Reporting Standard No. 16, effective 1 January 2019. For further details, please refer to note 3 (new standards, interpretations and amendments adopted by the Group) in the notes to the interim consolidated financial statements for the period ended 31 March 2019. |
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