Notwithstanding these one-time charges, the net losses of the Group for this year amounted to a total loss of SAR 131.0 Million. Therefore comparing it with the total loss of last year excluding the one-time charges of SAR 97.1 Million , the net decrease in loss is SAR 3.1 Million. However, the main reason behind the continued losses is the slowdown and adverse market conditions that faces the Group in the Kingdom. The Groups total losses attributable to operations in Saudi Arabia totaled SAR 112.3 Million out of total losses of SAR 131.0 Million

- The balance of current trade receivables, non-current trade receivables and contract assets as at 31 December 2019 amounted to SR 527.4 million, SR 367.8 million and SR 353.8 million respectively. The Group accounts for these balances using the amortized cost method and the allowance for expected credit losses is estimated using the simplified approach. The estimate of allowance for expected credit losses depends on the financial conditions of the Group's customers, the majority of which are contracting companies and also depends on the outcome of cases before courts and the outcome of executive orders issued to enforce judgements. Although the Group's management believes that the provision for impairment of these balances as at 31 December 2019 represents its best estimate in light of available information, the Group's management cannot, for circumstances beyond its control, obtain reliable information on the financial condition of its customers or predict reliably the outcome of cases before courts and the outcome of executive orders. Had we been able to complete our audit and obtain this information, matters might have come to our attention indicating that adjustments might be necessary to the balance of current and non-current trade receivables.

- The Group’s investment in Amiblu, a joint venture which is accounted for using the equity method, is carried at SR 258.3 million as at 31 December 2019 (SR 230.2 million as at 31 December 2018). We were unable to obtain sufficient appropriate audit evidence on management’s assessment of the impairment of the Group’s investment in Amiblu. Consequently, we were unable to determine whether any adjustment to this amount was necessary.

4. 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 Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the professional code of conduct and ethics that are endorsed in the Kingdom of Saudi Arabia that are relevant to our audit of the consolidated financial statements and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Material Uncertainty Related to Going Concern

We draw attention to note 4 to the accompanying consolidated financial statements, which indicates, among other matters, that the Group has incurred a net loss of SR 344.8 million for the year ended 31 December 2019 (2018: 231.2 million) and as at that date, current liabilities exceed its current assets by SR 467.9 million. As stated in note 4, the Group's ability to continue as a going concern depends to a large extent on the success of Group's management in raising the Company's capital and rescheduling its bank borrowings.

Our opinion is not modified in respect of this matter

The presented figures on the statement of financial position comparative periods have been adjusted to correct the calculation of the expected credit loss and impact of acquisition of a non-controlling interest without change on control by one of the Company's Associates, in addition to the correction of accounting error on the reversal of a general provision against an international cash generating units. These prior years adjustments consequently had impacted the shareholders equity balance on comparative periods with an increase of SAR 13.4 Million for December 31, 2018 and SAR 14.4 Million for January 01, 2018 respectively.

Prior period reclassifications on the statement of financial position were done to correct the presentation of certain balance sheet items particularly on current asset, current liabilities, and non-current liabilities section, these adjustments have no impact on equity.

The loss per share for the year 2019 was SAR (9.99), calculated by dividing the net loss attributable to shareholders of the company of SAR 338.5 million on the weight average number of outstanding shares 33,874,519, and for the year 2018 SAR (6.89), calculated by dividing the net loss attributable to shareholders of the company of SAR 233.5 million on the weight average number of outstanding shares 33,874,519.

With respect to calculating the earnings per share (loss), the earnings per share (loss) has been calculated in accordance with “International Accounting Standard 33 (IAS 33): Earnings per share.”, Which requires that the number of ordinary shares outstanding before the event be adjusted proportionally to the number of ordinary shares The list is as if the event occurred at the beginning of the earliest displayed period (i.e. comparative figures) and, accordingly, the earnings per share (loss) was calculated by dividing the profit (loss) for the period as if the reduction was made on January 1, 2018, and accordingly the number of issued shares is calculated 34,451,749 shares according to the new capital, minus the number of shares held on the Employee Ownership Program, which amounts to 577,230.

B. Cash Flow from Operations:

The year 2019 shows a positive cash flow form operation of SR 216.2 Million, compared to cash flow from operations in 2018 of SAR 298.2 million. These positive operating cash flows are mainly the result of improved collections of receivables, and lower inventories.

C. Comprehensive Income and net profit (loss) excluding non-controlling interests

With regards to the company’s announcement on the current year financial result, the Company would like to clarify that the total comprehensive income and net profit (loss) after zakat and tax for the current and previous year, excludes non-controlling interests. Accordingly, the total comprehensive income and net profit (loss) after zakat and tax for the corresponding period in the previous year announcement differed.