Zamil Industrial accumulated loss reaches 28.2% of its capital

Zamil Industrial Investment Company announced that its accumulated losses had reached 28.2% of its capital at an amount of SAR 169.2 million.

Major reasons leading to the losses are to comply with International Financial Reporting Standards, an extraordinary provision of SAR 162.8 million for the damaged inventories and impairment loss on property, plant, and equipment of SAR 8.2 million was accounted for as a result of the fire outbreak that occurred on 3 March 2023 at one of Al-Zamil Air Conditioners and Home Appliances Company factory (one of the subsidiaries), which is expected to be recovered during the third or fourth quarter of 2023.

Procedures and instructions applicable to companies listed in the Saudi Capital Market whose accumulated losses reach 20% or more out of the capital thereof will be applied.

The company has insurance coverage to mitigate the risk of losses arising due to fire. The company has filed claims and is confident that the settlement from the insurance company will be adequate to cover the losses due to the fire, and subsequently, the accumulated losses will be reduced.