By: Thabet Shehata
Riyadh – Mubasher: Bishah Agriculture Development deepened its accumulated losses after posting yet another loss in May 2016. The company’s results come ahead of its extraordinary general meeting (EGM) which is scheduled to be held on Sunday 12 June.
The EGM will decide on whether or not the company will continue its operations after accumulated losses reached 134.86% of capital.
Net loss in May this year reached SAR 94,000, bringing accumulated losses in the first five months of 2016 to SAR 384,000.
Total accumulated losses by the end of May stood at SAR 67.43 million or 134.86% of Bishah’s capital of SAR 50 million, making it one of the companies whose losses exceeded 100% of capital.
The Saudi Capital Market Authority (CMA) began implementing a corporate law as of July 2014, which states that companies whose losses exceed 100% of their capital should draw up a plan to amend their positions within 90 days and announce the details of the pan on both a quarterly and monthly bases.
Bishah suffered net and operating losses over for 23 successive months, since the CMA requested that the company post its financials monthly, starting July 2014, according to statistics by Mubasher
Translated by: Nada Adel Sobhi
