Etihad GO Telecom Co. — Interim / Quarterly Report 2011

Jul 20, 2011

Etihad Atheeb Telecommunication Company (GO) Announces the interim financial results for the period ended JUNE 30, 2011 (Three Months)(continue)

7040 · 20/07/2011 18:07:59 · Announcement #22454 · View on Saudi Exchange

Etihad Atheeb Telecommunication Company (GO) Announces the interim financial results for the period ended JUNE 30, 2011 (Three Months)(continue)

7. Explanatory paragraph

The Company incurred a net loss of SR 98.8 million during the period ended 30 June 2011. As of that date the Companys current liabilities exceeded its current assets by SR 1.2 billion and its accumulated losses are in excess of its capital. As a result of funding required for on going operations, the Companys Board of Directors had in their meeting held on 20 Shawal 1431 H (corresponding to 29 September 2010) proposed a rights issue of SR 600 Million. The Company had accordingly commenced the rights issue process. However, as of the date of this report, the time line and plan for the rights issue process as envisaged at the time of our review of these financial statements are yet to materialize. Consequently, the Company has not been able to demonstrate a definite timeline and plan for the anticipated rights process. Further, other than a commitment from its founding shareholders for an interim funding of SR 390 million, the Company is yet to finalize alternate sources of funding which are required to meet its on going operational requirements. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Companys ability to continue as a going concern and therefore the Company may be unable to realize its assets and discharge its liabilities in the normal course of business. The attached interim financial statements do not include any adjustments that may be necessary as to the realization and classification of its recorded assets or liabilities that may arise as a consequence.

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