| Element List |
Explanation |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to |
The reason for the loss during the current quarter compared to the same quarter of last year is due to the increase in selling and distribution expenses by around SAR 4.1 million mainly due to acquisition of a subsidiary and commencing of Production sector operations during the period, share of profits from associates dropped by nearly SAR 0.4 million, in addition there is a net drop in other revenues of around SAR 3.3 million with other revenues in the same quarter of last year of around SAR 4.35 million from advertising services and a provisions no longer required, partially offset by other revenues recorded during the current quarter of around SAR 1.1 million as a result of acquisition of subsidiaries. Financial expenses rose by around SAR 0.6 million. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to |
The reason for the losses during the current quarter compared to the previous quarter is mainly due to the decrease in gross profit by around SAR 2.3 million, gross profit of Advertising and Production sectors decreased by around SAR 6.7 million, partially offset by an increase in the Retail and Bookstores sectors gross profit of around SAR 3.2 million and Distribution sector of around SAR 1.2 million. In addition general and selling expenses increased by nearly SAR 2.1 million primarily as a result of an the acquisition on a subsidiary. Net other income decreased by approximately SAR 6.2 million mainly due to the decrease in other income from the settlement of advertising site lease contracts where during the previous quarter SAR 7.1 million was recorded, this decrease was partially offset by recording of other income in the current quarter of around SAR 1.1 million as net effect from acquisition of subsidiaries. Financial expenses increased by nearly SAR 0.4 million. These losses was partially offset by an increase in the Group's share of profit from associates of around SAR 0.8 million. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to |
The reason for the losses during the current period compared to the same period of the previous year is mainly due to the decrease in gross profit by around SAR 1.6 million, gross profit from advertising decreased by nearly SAR 10 million, this decrease was partially offset by an increase in gross profit from Production of around SAR 4.7 million and increase in Distribution sector gross profit by about SAR 0.8 million, Retail and bookstores sector gross profit increased by around SAR 2.9 million. In addition, general and selling expenses increased by around SAR 7.6 million arising on the commencement of Production sector operations and the expansion in Retail and Bookstores sector operations. The Company's share of results from associates business decreased by around SAR 0.8 million and financial expenses increased by about SAR 0.8 million. These losses were partially offset by an increase in net other income by approximately SAR 2.2 million. |
| Basis of the External Auditor's Opinion |
Qualified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion |
The Auditor's Report includes the following qualifications: As disclosed in note (6) to the condensed consolidated interim financial statements we have not been able to determine the impact of the non-issuance of the financial statements of the associate and the Group did not recognize any profits or losses on its investment in United Advertising Limited Company for the period ended 30 September 2019 and the years ended 31 March 2019, 2018,2017,2016 and 2015, also the Group did not recognize any profits or losses on its investment in Tihama Contemporary Media Company and Tihama New Media Company for the period ended 30 September 2019 and the years ended 31 March 2019 and 2018. The Group relied on the management accounts prepared by the management of the associates in recording the share of loss from the associate J Walter Thompson MENA Company. Accordingly, we were unable to obtain adequate and appropriate audit evidence directly or through alternative audit procedures to determine the Group's share of the change in net assets of the entity invested in. Accordingly, we are unable to determine whether any changes to the condensed consolidated interim financial statements are necessary. As disclosed in note (3/1/5) to the condensed consolidated interim financial statements, the condensed consolidated interim financial statements include an investment in a subsidiary company, International Advertising Services Limited, whose financial statements have not been consolidated as its financial statements have not been issued since the year 2012 due to seizure of the company's operations as of 16 November 2011. We have not been able to obtain sufficient and appropriate audit evidence directly or through alternative audit procedures to determine the effect of this matter on the correctness of the disclosed condensed consolidated interim financial statements. Accordingly, we are unable to determine whether any changes to the condensed consolidated interim financial statements are necessary. Significant uncertainty relating to continuity as a going concern : We would like to draw attention to note (2/4) to the condensed consolidated interim financial statements and liquidity management, as explained in note (2/4) these events or circumstances indicate a material uncertainty, It may cast serious doubt that the company's ability to remain as a going concern, and our conclusion on this matter has not been modified. The Auditor 's Report draws the attention to the following: We would like to draw the attention to note (11) to the condensed consolidated interim financial statements which states that Tihama Modern Bookstores Company have not submitted Zakat declarations since formation, in addition Istidama International Real Estate Company has not submitted its Zakat declarations for the years since 2013. The management of the subsidiaries have made provisions for Zakat annually and our conclusion was not modified accordingly. |
| Reclassification of Comparison Items |
The Group has adopted International Financial Reporting Standard IFRS (16) Leases as from 1 April 2018 using the full retroactive application methodology. Accordingly certain changes have been made to the Comparative period in the Company's financial statements in the measurement, presentation and disclosure in accordance with the accounting policies adopted and in accordance with the requirements of the International Financial Reporting Standards adopted in Saudi Arabia, in addition certain comparative amounts have been reclassified to conform to the current period presentation. |
| Additional Information |
losses per share for the current period were calculated on the net loss attributable to equity holders of the parent company of SAR 6.9 million based on the weighted average number of shares issued as of 30 September 2019 of 7,500,000 shares, the earnings per share for the comparative period was calculated on the net profit attributable to equity holders of the parent company of SAR 1.5 million based on the weighted average number of shares issued as of 30 September 2018 of 7,500,000 shares. Accumulated losses amounted to SAR 18.4 million and 24.6% of share capital as of 30 September 2019. |
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