SIECO says lack of data from branches outside Kingdom reason for external auditor’s reservations

Logo of Saudi Industrial Export Co. (SIECO)

Saudi Industrial Export Co. (SIECO) said work is underway to finalize the reservations of the external auditor as soon as possible to ensure that the suspension of trading in the company's stock is lifted.

Many of the reservations came due to the lack of some data from the company’s branches outside Saudi Arabia, amid the COVID-19 precautionary measures in these countries, as well as conditions for preventing travel to, and from those countries, SIECO said in a bourse statement.

SIECO appointed one of the certified legal accounting firms specialized in forensic auditing, which will list all Vvolations and take legal action against them.

The company called on its shareholders to get reliable information from official sources on the website of the Saudi Exchange (Tadawul).

Moreover, the board of directors approved the company's new strategy, which includes many initiatives and projects that will increase the company's revenues and enter new markets.

SIECO has started implementing the new strategy since early 2021.

The company’s financial advisor submitted a request for capital increase on Dec. 31, 2020, to the Capital Market Authority. (CMA), to support the company's new strategic objectives.

During the first quarter of 2021, the company reviewed the internal processes and the operating model to raise the quality and enhance lean operations.

SIECO obtained ISO 9001: 2015 certification, which is among the goals of the new strategy of the company.

It is too early for the company to determine the expected financial impact, SIECO added.

On April 29, 2021, SIECO said that the external auditor of the company refrained from expressing an opinion on the annual financial results for 2020, Argaam reported.

Trading on SIECO was suspended on April 29.