According to a bourse filing on The Saudi Stock Exchange Tadawul on March 1, 2023, the Company’s profits decreased during the current year compared to previous year primarily due to increase in costs of supply chain and raw materials in general. In addition to the continuous decline in average selling prices during the third and fourth quarter of the year.
Total loans decreased during the current year to 352 million Saudi Riyals compared to 665 million Riyals in the previous year, i.e. by 47%, this was due to refinancing of loans and early settlement of the refinanced loan to reduce the financial burden on the Company because of the increase in SAIBOR Rate.
It should also be noted that during the year 2021, the Zakat, Tax and Customs Authority imposed zakat assessments with total obligations amounting to approximately 34 million Saudi Riyals (note 28.3 in the financial statements for the year 2021) for the years 2014-2020, and the Company exerted the necessary efforts by submitting its objections for the above mentioned years to the General Secretariat of Zakat, Tax and Customs Committees, which issued its decisions in 2022 in favor of the Company to reduce the additional liabilities by 80% to 7 million Saudi Riyals. In this regard, the Company notes that it will appeal this decision to remove completely the above-mentioned additional liability amount (7 million Saudi Riyals)
Statement of the type of external auditor's report Unmodified opinion
Reclassification of Comparison Items Certain prior year figures have been reclassified to conform to current year’s presentation.
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