Saudi Industrial Export Co. — Annual Report 2020

Jun 9, 2021

Saudi Industrial Export Co. (Ssdirat) announces its reissue of Annual Financial Results for the Period Ending on 2020-12-31

4140 · 09/06/2021 17:12:23 · Announcement #63716 · View on Saudi Exchange

Saudi Industrial Export Co. (Ssdirat) announces its reissue of Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	36.64	68.24	-46.307
Gross Profit (Loss)	1.6	-24.68	-
Operational Profit (Loss)	-12.57	-25.13	-49.98
Net Profit (Loss) after Zakat and Tax	-13.18	-26.01	-49.327
Total Comprehensive Income	-13.12	-26	-49.538
Total Share Holders Equity (after Deducting Minority Equity)	27.74	40.86	-32.109
Profit (Loss) per Share	-2.03	-4.01
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 the decrease in net loss during the current year compared to the previous year is attributed to the improvement in gross profit margin, and the increase in other income.

In addition, the incurred loss during 2020 is due to the decrease in revenue compared to previous year by 46%, because of the weak global demand for raw materials as a result from the precaution measures taken by governments to limit the spread of corona virus, and the suspension of the transports of goods among countries and regions which negatively affected 2020 company`s profits, in addition, the increase in general and administrative expenses during the current years. 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 We have reviewed the reissued consolidated financial statements of Saudi Industrial Export Company (the “Company”) and its subsidiary (together refer as the “Group”) , which comprise the consolidated statement of financial position as at 31 December 2020, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, including a summary of significant accounting policies

In our view, with the exception of the potential effects of the matters described in the "Basis of preservative Opinion" section of our report, the attached consolidated financial statements fairly present, in all essential respects, the Group's consolidated financial position as of December 31, 2020, its consolidated financial performance and consolidated cash flows for the year ending that date in accordance with the international standards of the financial report adopted in Saudi Arabia and other issuing standards approved by the Saudi Authority of Auditors and Accountants.

The basis of preservative opinion

1. The Group has not calculated the expected credit losses in accordance with International Financial Reporting Standard No. (9). Accordingly, we were unable to determine whether any necessary adjustment to trade receivables balance as of 31 December 2020.

2. Our review of the cost of revenue of SAR 35 million for the year ended December 31, 2020, showed that some documents supporting the purchase amounts were incomplete and we were unable to obtain sufficient confirmations from other audit procedures, and therefore we were unable to determine whether there were any necessary adjustments to the cost of revenue for the year ended December 31,2020.

3. Management has not evaluated the Group's relationship of its contracts with customers as principal or agent in accordance with International Financial Reporting Standard No. (15), and therefore we were unable to determine the appropriateness of the presentation of Group’s revenue and cost of revenue for the year ended 31 December 2020.).

We have reviewed in accordance with international audit standards adopted in Saudi Arabia. Our responsibilities under these standards are detailed in the "Auditor's Responsibilities for reviewing reissued consolidated financial statements" section of our report.

We are independent of the Group in accordance with the code of conduct and ethics adopted in Saudi Arabia and are relevant to our review of consolidated financial statements, and we have also fulfilled our ethical responsibilities in accordance with these rules. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our preservative opinion.)

- The company would therefore like to explain to shareholders that some of the current period figures for 2020 and the prior period of 2019 were restated and adjusted in both the income statement, the financial statement, and the cash flow statement, based on international accounting standards(IFRS), As this amendment resulted in a difference from the announcement of the annual financial statements ending on 31-12-2020 AD published on 29-04-2021 AD, as well as the corrective announcement of the annual financial statements ending on 31-12-2020 AD and published on 18-05-2021 AD. Therefore, there will be separate announcement for edited financial statements ending on 31-12-2020 AD based on the reissued version of the financials statements. Reclassification of Comparison Items Certain prior year figures have been reclassified to conform to current year 2020 presentation. In addition, the company has restated 2019 income statement , balance sheet and cash flow statement based on IFRS Additional Information The company would therefore like to explain to shareholders that some of the current period figures for 2020 and the prior period of 2019 were restated and adjusted in. As this amendment resulted in a difference from the announcement of the annual financial statements ending on 31-12-2020 AD published on 29-04-2021 AD, as well as the corrective announcement of the annual financial statements ending on 31-12-2020 AD and published on 18-05-2021 AD, where these differences were as follows :

- Adjusted sales/revenues for the period 2020 from SR 39.52 million to SAR 36.63 million, where SR 2.89 million was reversed from sales/revenues for the current annual period of 2020 to the first quarter of 2021.

- Adjusted gross profit (loss) clause in the corrective announcement dated 18-05-2021 for the period 2020 from SR -1.96 million to SR -1.6 million, where SR 349k was posted from the total profit (loss) for the current annual period for 2020 to the first quarter of 2021.

- Adjusted operating profit (loss) clause for the period 2020 from -12.21 million riyals to -12.56 million riyals.

- Adjusted net profit (loss) after zakat and tax for the period 2020 from -12.82 million riyals to -13.18 million riyals.

- Adjusting the total other comprehensive income item for the period 2020 from -12.82 million riyals to -13.12 million riyals.

- Amendment of the total equity clause (excluding minority rights) for the period 2020 from -28.03 million riyals to SR 27.73 million.

- Adjust the profitability (loss) of the stock for the period 2020 from -1.98 riyals to -2.03 riyals.

The company also wishes to clarify that the file of consolidated financial statements and the independent auditor's report for the year ended December 31, 2020, reissued on the Website of the Saudi Financial Market Company (Tadawul) will be submitted according to the attached file. 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.