Arabian Pipes hires consultant to ascertain SAR 210.2 mln financial differences in inventory item

Logo of Arabian Pipes

Arabian Pipes Co. announced that it found financial differences in the inventory balances amounting to SAR 210.17 million, starting from previous annual financial statements since the company was established and until the end of 2020, according to a bourse filing.

This came during the company’s attempt to automate its operations through the internal resource management system (ERP), aiming to enhance the internal control and raise operational efficiency.

Accordingly, Arabian Pipes appointed a consulting firm to work on agreed procedures to ascertain the financial differences in the inventory item.

The company is still in the process of collecting more information about the reasons and awaiting the final report from the consultant. Additionally, the company is following up with the external auditor to announce the accounting treatment that will be applied regarding these differences.

The Saudi-listed firm appointed a legal advisor to give opinion on the above-mentioned issue, affirming it will disclose any development in due course.

The financial impact resulting from these differences cannot be determined at present for the below reasons:

- The company did not receive the final report on these differences from the consulting company.

- The external auditor has not yet been able to determine the financial impact.

The board of directors assured their keenness to protect the company's assets and shareholders' investments, indicating that they will not be negligent in following all legal and judicial procedures to prosecute anyone whose responsibility is proven.