Bishah posts accumulated losses of around 128% of capital

Bishah Agricultural Development said its accumulated losses hit SAR 64.19 million, 128.4 percent of paid-up capital, on June 30, according to a filing on Tadawul.

Bishah’s paid-up capital was basically SAR 50 million, and the company was granted a free farm land by the government worth SAR 15.75 million.

The company cited the following as reasons for the losses:

1. Its heavy losses on the Saudi stock market in February 2006.
2. An incidental dehydration of the Bishah land, which raised the salinity level of the farm’s soil, spoiling some farming and husbandry projects.
3. The paid-up capital being relatively small (SAR 50 million only), which made few investment alternatives available to the subsequent boards of directors, especially with most of the capital invested in standing projects.
4. Lack of enough experience of earlier boards and administration teams.

The company said it will comply with the Capital Market Authority’s rules applicable to its case.