AMMAN: Stuck for years in a cycle of losses, Jordan Clothing Company (CJC) accumulated a big financial deficit that eroded more than 50 per cent of its JD4 million capital.
According to auditor Arab Professionals, a member of Grant Thornton, the accumulated losses reached JD2.3 million at the end of March 2015 following a JD300,000 loss during the first quarter of this year. During the first three months of 2015, sales also were down by 40.3 per cent to JD300,000 from JD600,000 during the same period of last year.
Arab Professionals said the company should inform the Jordan Securities Commission and Amman Bourse about the extent and percentage of the losses and the reasons behind it, as required when accumulated losses of a company exceed 50 per cent of capital.
The review of the interim summary of the consolidated financial statements was qualified because the auditor was unable to quantify the JD800,000 worth of finished goods and goods under process through a physical verification of inventories.
