Makkah Construction and Development Co. announces its Annual Financial Results for the Period Ending on 14/11/1443H (Short Hejree Annual)
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 208 | 56 | 271.43 | ||
| Gross Profit (Loss) | 105 | 0.3 | 34,900 | ||
| Operational Profit (Loss) | 66 | -12 | - | ||
| Net Profit (Loss) after Zakat and Tax | 56 | -14 | - | ||
| Total Comprehensive Income | -220 | 434 | - | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 4,089 | 4,309 | -5.11 | ||
| Profit (Loss) per Share | 0.34 | -0.09 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The reason for achieving net profit during the period of six months and fourteen days of this year compared to the period of six months of the previous year is due to the rise in revenues and occupancy rates of residential rooms in Makkah Hotel and Towers, to an increase in the number of inmates from visitors and pilgrims, as well as the increase in the revenues of the mall, as a result of lifting the precautionary measures Taken by the government in response to the coronavirus pandemic. |
| Statement of the type of external auditor's report | Qualified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | 1. As at 14 Dhul Qadah 1443H, and as disclosed in note 11 to the accompanying financial statements, trade receivables amounted to SR 144.4 million against which an allowance for expected credit loss of SR 29.9 million was maintained, We have requested for but not been provided with adequate supporting documentation to verify the accuracy of financial data used in the calculation of expected credit loss “ECL”. We were, therefore, unable to satisfy ourselves as to the valuation of the trade receivable balance. Consequently, we are unable to determine whether any adjustment is necessary to the ECL balance, as well as the results of Company’s operations for the current and comparative period and the related credit risk disclosure.
2. As at 14 Dhul Qadah 1443H, amounts due from related parties include an amount due from Jabal Omar for Development Company amounting to SR 309.6 million, as disclosed in note 10. The management has not carried out any assessment to determine expected credit loss on this balance at the reporting date and for prior periods presented, which constitutes a departure from IFRS as endorsed in KSA. Had the management carried out an assessment to determine expected credit loss in accordance with the requirements of IFRS as endorsed in KSA, certain elements in the accompanying financial statements, including comparative amounts, together with the related disclosures may have been materially affected. The possible impact on the financial statements have not been determined for neither the current period nor prior periods. 3. As at 14 Dhul Qadah 1443H, accrued expenses and other accounts payable include advance from customers amounting to net SR 28.4 million. We have requested but not been provided with related details and analyses as well as supporting documentation to understand how this balance initially originated and to determine the occurrence, accuracy and reasonableness of the transactions and balances. Consequently, we were unable to satisfy ourselves with respect to the origination, nature and completeness of the transactions, this account and balances in any other related accounts. Accordingly, we are unable to determine whether any adjustments may be required to these financial statements, including opening balances. 4. As at 14 Dhul Qadah 1443H, the accompanying financial statements includes value added tax “VAT” payable and accrued expenses amounted to SR 32.7 thousand and SR 18.7 million, respectively and costs of revenue of SR 103,1 million for the period then ended. These balances and certain other accounts were impacted from an account titled “current account balance” by adjusting amounts totaling SR 36.9 million, SR 6.7 million, and SR 2.2 million to these accounts, respectively. We have requested but not been provided with any explanations and any supporting documentation to understand how the balances initially originated and to satisfy ourselves as to the occurrence, accuracy and reasonableness of adjustments, transactions, and balances impacted by these adjustments. Accordingly, we are unable to determine whether any adjustments may be required to these accounts and related impact on these financial statements, including opening balances. |
| Reclassification of Comparison Items | Certain comparative figures for the previous year have been reclassified to conform to the presentation of the current year figures |
| Additional Information | "With reference to the company’s announcement published on the Tadawul website on 16/10/1443 AH corresponding to 17/05/2022 AD regarding the approval of the Ninth Extraordinary General Assembly of the company’s shareholders to amend some articles of the company’s articles of association, including Article 42 which stipulates the conversion of the company’s financial year from the Hijri year in which It ends on (4/30) to the Gregorian year, which ends on (12/31).
This is done by making an integrated plan to implement this transformation, as the company will issue the financial statements for the short Hijri fiscal year, which begins on 5/1/1443 AH and ends on 11/14/1443 AH. Therefore, the company made a comparison between the financial statements for the current year ending on 11/14/1443 AH. (a period of six months and fourteen days) and the financial statements for the previous period ending on 10/29/1442 AH (the six-month period): 1.Revenues amounted to 208,276,690 riyals for a period of six months and fourteen days of the current year, compared to 56,622.723 riyals for the six months period of the previous year, an increase of 268%. 2. The total shareholders’ equity (there are no minority rights) amounted to 4,081,104.255 riyals for a period of six months and fourteen days of the current year, compared to 5.061.818.636 riyals for the six-month period of the previous year, a decrease of 5 %" |
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