Is zakat due on capital or on profits, and when is the zakat due, at the end of the company's fiscal year or upon the hawl (one year's possession), knowing that the company is subject to both profit and loss?

Zakat (definition) becomes obligatory on wealth under two conditions: reaching the nisab (definition) (the minimum threshold, which is 85 grams of gold or its equivalent), and the passing of one full lunar year (hawl) on the wealth without it decreasing below the nisab. In this case, zakat is to be paid on both the principal capital and the profits. However, if the principal capital decreases below the nisab due to a loss, then there is no zakat unless it reaches the nisab again, and the calculation of the hawl recommences from the date it reaches the nisab.