Saudi Paper conducts accounting treatment for two land plots in Riyadh: CEO

Saudi Paper Manufacturing Co. has conducted an accounting treatment for two land plots in Riyadh, CNBC Arabia has reported, citing Chief Executive officer, Hassan Asiree.

“There are no other land plots or properties that need to be audited,” Asiree stated.

The accounting treatment was conducted in light of the new financial criteria, as regards the value adjustment through the fair value of a financial asset.

The pre-reduction value of these recovered land plots reached around SAR 39 million. It was cut to by nearly SAR 33 million to the pre-sale value recorded in the 2012 books.

The land plots’ book value is lower than the actual value, as these land plots are not for investment purposes, but they are important for the company’s operations in Riyadh, Asiree indicated.

“The company is adopting some corrective measures; it boosted its market share as well as its operating efficiency, and is currently restructuring capital. Accordingly, it should audit all assets that reflect unfair value,” he stated.

Asiree highlighted the importance of the company’s debt rescheduling process, especially amid lower interest rates.

“The company has more than SAR 650 million in debts, which are repaid in regular installments. This will help us buy new raw materials,” Asiree added.

He expected that the amount of SAR 150 million resulting from the capital restructuring process would help generate profitability and pay dividends in the short term.

On Sept. 16, the company’s board recommended a 39.2 percent capital cut to offset accumulated losses, Argaam reported.