Zamil Industrial Investment Company announced that its accumulated losses reached 28.2% of its capital (SAR 169,253,000), clarifying that the increase in accumulated losses was due to compliance with International Financial Reporting Standards, an extraordinary provision of SAR 162.8 million for the damaged inventories, and an impairment loss on property, plant, and equipment of SAR 8.2 million accounted for as a result of the fire outbreak that occurred on 3 March 2023 at one of Zamil Air Conditioners and Home Appliances Company factories (one of the subsidiaries), which is expected to be recovered in the third or fourth quarter of 2023.
Procedures and instructions applicable to companies listed on the Saudi capital market whose accumulated losses reach 20% or more of their capital will be applied.
The company has insurance coverage to mitigate the risk of losses due to fire. The company has filed claims and is confident that the settlement from the insurance company will be sufficient to cover the losses due to the fire and subsequently reduce the accumulated losses.
