Etihad GO Telecom Co. — Interim / Quarterly Report 2022

Aug 22, 2021

Etihad Atheeb Telecommunication Co. (GO) announces its Interim Financial Results for the Period Ending on 30-06-2021 (Three Months)

7040 · 22/08/2021 08:07:54 · Announcement #64674 · View on Saudi Exchange

Etihad Atheeb Telecommunication Co. (GO) announces its Interim Financial Results for the Period Ending on 30-06-2021 (Three Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	74.97	73.03	2.656	74.12	1.146
Gross Profit (Loss)	41.47	39.87	4.013	40.91	1.368
Operational Profit (Loss)	-6.92	-8.67	-20.184	-112.34	-93.84
Net Profit (Loss) after Zakat and Tax	-12.11	-12.27	-1.303	-140.81	-91.399
Total Comprehensive Income	-12.11	-12.27	-1.303	-141.55	-91.444
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	99.63	138.47	-28.049
Profit (Loss) per Share	-0.53	-0.54
All figures are in (Millions) Saudi Arabia, Riyals

	Accumulated Losses	Capital	Percentage %
	-128.9	228.53	56.41
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net loss is due to the increase in revenue and in other income, decrease in depreciation and amortization and decrease in allowance for impairment in trade receivables. In spite of increase in the cost of services, selling and marketing, general and administration expenses, and the finance costs.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	The decrease in net loss mainly is due to the decrease in allowance for impairment in fixed assets, increase in revenue and decrease all of selling and marketing, depreciation and amortization, allowance for impairment in trade receivables, and the finance costs. In spite of increase in cost of services, increase general and administration expenses, and decrease in other income.
Statement of the type of external auditor's report	Qualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	Introduction

We have reviewed the accompanying condensed interim statement of financial position of ETIHAD ATHEEB TELECOMMUNICATION COMPANY (the "Company") as at 30 June 2021, and the related condensed interim statements of profit or loss and other comprehensive income, changes in equity and cash flows for the three month period then ended, and a summary of significant accounting policies and other explanatory notes .Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with International Accounting Standard (34) “Interim Financial Reporting” that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” that is endorsed in the Kingdom of Saudi Arabia. A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

We have not received a related party confirmation as at 30 June 2021, accordingly we were unable to obtain sufficient appropriate audit evidences about the differences that existed on 31 March 2021 between the carrying amount of this related party and the confirmation received as at that date of SAR 8.5 million, and we were unable to verify the carrying amount of the related party as at 30 June 2021 by performing alternative audit procedures. Accordingly, we were unable to determine whether any adjustments to this amount were necessary.

Qualified Conclusion

Based on our review, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard (34) “Interim Financial Reporting” that is endorsed in the Kingdom of Saudi Arabia.

Emphasis of Matter

We draw attention to Note (1) to the accompanying condensed interim financial statements, which indicates that the accumulated losses of the Company amounted to SR 128.9 million as of 30 June 2021, exceeding half of the Company’s capital, and the Company’s current liabilities exceeded its current assets by SR 152.17 million as at 30 June 2021 and it made a loss of SR 12.11 million for the period then ended. These conditions indicate the existence of a material uncertainty, which may cast significant doubt about the Company’s ability to continue as a going concern. As stated in Note (1), the management has made an assessment of the Company’s ability to continue as a going concern, and as result, the accompanying condensed interim financial statements has been prepared on a going concern basis. Our conclusion is not modified in respect of this matter.Reclassification of Comparison Items The financial statements of the current quarter 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 quarter 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 quarter.Additional Information Shareholders’ Equity

The accumulated losses of SAR 128.90 million as of 30 June 2021 represents 56.41% of the Company’s share capital.

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.

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.