Saudi Industrial Export Co. — Annual Report 2020

Apr 29, 2021

Saudi Industrial Export Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

4140 · 29/04/2021 08:14:10 · Announcement #63086 · View on Saudi Exchange

Saudi Industrial Export Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	39.52	68.24	-42.086
Gross Profit (Loss)	-10.38	-24.68	-57.941
Operational Profit (Loss)	-12.21	-25.13	-51.412
Net Profit (Loss) after Zakat and Tax	-12.82	-26.01	-50.711
Total Comprehensive Income	-12.82	-26	-50.692
Total Share Holders Equity (after Deducting Minority Equity)	28.03	40.86	-31.399
Profit (Loss) per Share	-1.98	-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 42%, 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 Disclaimer of opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Basis for disclosure of opinion

1- The Group has bank accounts with a bank outside the Kingdom of Saudi Arabia, whose book value as of December 31, 2020 is 1.66 million Saudi riyals. We were not provided with approval of the account balances of this bank as of December 31, 2020 AD, and as a result we were unable to obtain sufficient and appropriate audit evidence about these balances and about the possibility of unrecorded or disclosed assets and liabilities. In addition, we were unable to obtain audit evidence either sufficient or appropriate through alternative audit procedures, and accordingly we were unable to determine whether there were any necessary adjustments to the value of cash and cash equivalents and liabilities as at December 31, 2020.

2- The Group has not calculated expected credit losses (ECL) in accordance with International Financial Reporting Standard (9), therefore we were unable to determine whether there were any necessary adjustments to the value of trade receivables as of December 31, 2020.

3- Management did not provide us with the stock movement during the year ended December 31, 2020 AD, and therefore we were unable to verify the correctness of the cost of inventory items on the basis of weighted average cost. Therefore, we were unable to determine whether there were any necessary adjustments to the inventory value as of December 31, 2020.

4- We were unable to obtain sufficient and appropriate audit evidence to verify the correctness of the balance of the defined employee benefit obligations as to the end of December 31, 2020.

5- We were unable to obtain sufficient and appropriate audit evidence to verify the value of the revenues for the year ending on December 31, 2020, which amounted to 39.5 million Saudi riyals. Therefore, we were unable to determine whether there were any necessary adjustments to the revenue value for the year ending on December 31, 2020.

6- Management has not evaluated the Group's relationship of its contracts with clients as principal or agent in accordance with International Financial Reporting Standard No. (15) and so, we were unable to verify the appropriateness of presenting the items of revenue and cost of revenue to the Group for the year that ended on December 31, 2020.

7- We were unable to obtain sufficient and appropriate audit evidence to verify the value of the general and administrative expenses for the year that ended on December 31, 2020, which amounted to 9.9 million Saudi riyals. Therefore, we were unable to determine whether there were any necessary adjustments to the value of general and administrative expenses for the year ending on December 31, 2020.

As a result of the matters or points, we were not able to determine whether there were any necessary adjustments in relation to these matters and to the elements that make up the consolidated statements of profit or loss, changes in equity and cash flows for the year ended December 31, 2020. Reclassification of Comparison Items Certain prior year figures have been reclassified to conform to current year presentation. In addition, the company has restated 2019 profit and loss. Additional Information - the company wish to explain to its stakeholders that that work is op progress with external auditor to resolve the basis for the issue of disclosure of opinion

- The accumulated losses for the year end 2020 has reached SR 37,406,818 witch consist 57.72% of the paid up capital comparing to accumulated losses 24,586,320 during the previous year 2019 witch consist 37.94% of the paid up capital.

- The company shall apply the procedures and instructions issued by the Capital Market Authority for the listed companies whose accumulated losses amounting to 20% or more of its capital.

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.