Etihad GO Telecom Co. — Annual Report 2021

Jun 29, 2021

Etihad Atheeb Telecommunication Co. (GO) announces its Annual Financial Results for the Period Ending on 31-03-2021

7040 · 29/06/2021 17:05:39 · Announcement #63946 · View on Saudi Exchange

Etihad Atheeb Telecommunication Co. (GO) announces its Annual Financial Results for the Period Ending on 31-03-2021

Element List	Current Year	Previous Year	%Change
Sales/Revenue	282.1	339.6	-16.931
Gross Profit (Loss)	160.05	187.62	-14.694
Operational Profit (Loss)	-32.55	-50.61	-35.684
Net Profit (Loss) after Zakat and Tax	-38.26	-71.61	-46.571
Total Comprehensive Income	-39	-71.5	-45.454
Total Share Holders Equity (after Deducting Minority Equity)	111.74	150.74	-25.872
Profit (Loss) per Share	-1.67	-3.13
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 behind decrease in net loss to the decrease in cost of services, increase in other income, generating finance income, decrease in depreciation & amortization expense, decrease in allowance for impairment in trade receivables, and decrease in general & administrative expenses, despite of the decrease in the revenue, increase selling and marketing expenses, increase in Impairment loss on property and equipment and an increase in Zakat and income tax.
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	Attched
Reclassification of Comparison Items	The financial statements of the current year have been prepared in accordance with the International Financial Reporting Standards adopted in Kingdom of Saudi Arabia and Other accredited by the Saudi Organization for Chartered and Professional Accountants (SOCPA). The financial statements for the comparative year have been represented, reclassified and categorized in accordance with the accounting policies applied in the presentation, classification and classification of the financial statements for the current year.
Additional Information	Shareholders’ Equity

The accumulated losses of SAR 116.79 million as of 31 March 2021 represents 51.10% of the Company’s share capital. As a result of increasing the impairment loss on property and equipment and an increasing Zakat and income tax provision.

In this regard the company will apply the Procedures and Instructions related to listed Companies with accumulated losses reaching 50% or more of their share capital. Issued by the Board of the Capital Market Authority Resolution number 4-48-2013 Dated 15/1/1435H Corresponding to 18/11/2013G and amended by CMA Board Resolution number 1-77-2018 Dated 5/11/1439H Corresponding to 18/7/2018G

In February 2021, the Company signed an agreement, with an effective date of December 31, 2020, with one of its major vendors to settle all balances and dues between the two parties which resulted in a net gain of SAR 101 million as a result of decrease on net balances payable to a major vendor. As of the effective date, the new balance payable to the major vendor was SAR 370 million and its payment was re-scheduled as a down-payment of SAR 125 million upon signing the agreement with the remaining amount of SAR 245 million (as shown below) to be paid in five equal installments resulting in an additional gain of SAR 36 million on rescheduling.

The movement in non-current portion of due to a major vendor is as follows:

31 March 2021

Undiscounted balance at December 31, 2020 370,000,000

Discount from present value calculation (35,860,133)

Discounted balance at December 31, 2020 334,139,867

Unwinding of discount during the year 2,443,489

Paid during the year (125,000,000)

Balance at end of the year 211,583,356 Attached Documents  

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.