Damas’ fiscal ends in a net loss

Damas’ financial position at the end of 12-month fiscal year closing March 31, 2010, stood at net loss worth $519.8 million, while the previous fiscal had ended with profit worth $61.8 million. Revenues decreased by 31 percent to $899.3 million, impairment losses valued $215.3 million, while there was a provision for doubtful loan worth $84.8 million in the fiscal.

The company identified the loss as a result of management issues relating to the unauthorised withdrawals by the three Abdullah brothers, during the economic recession that depleted funds, and rising gold prices in the year, which further impacted revenues.

In the fiscal gone by, Tawhid Abdulla was asked to resign as Damas' top executive, following his unauthorised transactions which are yet to be reimbursed to the company.

The company is reportedly working ways to bring its financial position in order and restructuring its operations.