By: Heba El-Kordy
Cairo – Mubasher: The ordinary general meeting (OGM) of the Egyptian Iron and Steel (Hadisolb) rejected the adoption of the financial statements for fiscal year 2018/2019, in light of the notes submitted by the Central Auditing Organization (CAO).
After adjustment, the finanial statements will be submitted to Hadisolb's shareholders for approval after a month, the company said in a statement to the Egyptian Exchange (EGX) on Wednesday.
The company's extraordinary general meeting (EGM) will also decide whether to liquidate the company or not.
According to the CAO, Hadisolb is unable to meet its commitments as debts owed to the company’s key suppliers amounted to EGP 5.372 billion this year, compared to EGP 4.5 billion a year earlier.
In addition, the frequent breakdown of several production lines, the non-compliant furnaces, and the lack of strategic storage of coking coal raise concerns that the company may go into liquidation, the CAO noted.
It is noteworthy that the company’s modified unaudited financial results showed a net loss of EGP 1.465 billion in FY18/19, up from EGP 899.61 million in FY17/18.