Zamil board proposes using statutory reserve to offset accumulated losses

Logo of Zamil Industrial Investment Co.

The board of Zamil Industrial Investment Co. recommended today, Sept. 3, using a portion of its SAR 180 million statutory reserves to offset the company’s accumulated losses of SAR 169.25 million, which represent 28.2% of the capital.

These figures are recorded as of June 30, 2023, Zamil said in a statement to Tadawul, adding that the date of the extraordinary general meeting (EGM) will be announced later.

Zamil’s accumulated losses stand at 28.2% of the company’s capital, Argaam earlier reported.

In compliance with the International Financial Reporting Standards (IFRS), Zamil set aside exceptional provisions of SAR 162.8 million for damaged inventory and SAR 8.2 million for impairment loss on property, plants, and equipment after the fire, on March 3, 2023, at a factory owned by its subsidiary, Al-Zamil Air Conditioners and Home Appliances Co. These provisions are expected to be written back in Q3 or Q4 2023.