Annual report eng.2019

OF ACHIEVEMENTS 1. The establishment of the Audit Committee: The Audit Committee has been reformed on 13 May, 2019 based on Al Mazaya holding Board resolution. Meet- ing No. (10/2019) where the membership of the audit committee members has been determined for a period up to 3 years, extendable by the Board. The Chairman of the committee has been elected in the fourth committee meeting and the committee charter has been approved. 2. Members of the Audit Committee: The committee consists of three members: two non-executives and one independent member. • Mr. / Abdul Hamid Mihrez - Committee Chairman - Non-Executive member • Mr. / Mohammad K. Al-Othman – Independent member • Mr. / Eid Abdallah Al Rasheedi - Non-Executive member Secretary of the Committee: Mr. / Ibrahim Abdulrahman Al Soqabi, is handling the position of the Audit Committee secretary in addition of his role as a BOD secretary. He was re-appointed during the board meeting No. 9/2019 held on April 25, 2019, Mr. Al Soqabi is responsible for maintaining and coordinating the Committee meetings. 3. Purpose of establishing the Audit Committee The primary purpose of the establishment of the Audit Committee of the Board of Directors is to support and backup the Board of Directors in the performance of its supervisory responsibilities related to the safety and integrity of the financial reporting, the internal control systems of the company, and the independence of the internal audit. Moreover, the purpose is to also evaluate the performance of the external auditor and the internal auditor's work. 4. Audit Committee characteristics 1- All members of the Committee have the qualifications required in addition to the practical experience in the field of accounting and finance. 2- The Audit Committee may consult any independent advisory body on the company’s expense. 3- With regard to the Audit Committee recommendations raised to the board during the year 2019, there was no conflict between the committee’s recommendations and the Board resolutions 5. Meetings The Audit Committee must meet on a regular basis, at least four times during the year. The Audit Committee held eight meetings during 2019 including meetings with the external and internal auditors. All members of the Committee shall be notified of the agenda at least three working days before the meeting to have enough time to review and research the agenda and tasks of the meeting. The Committee has documented the minutes of its meetings as follows: Meeting No. Meeting Date Venue (1/ 2019) 22 / 01 /2019 Corporate Headquarters (2/ 2019) 10 / 03 /2019 Corporate Headquarters (3/ 2019) 25 / 03 /2019 Corporate Headquarters (4/ 2019) 13 / 05 /2019 Corporate Headquarters (5/ 2019) 15 / 07 /2019 Corporate Headquarters (6/ 2019) 7 / 11 /2019 Corporate Headquarters (7/ 2019) 17 / 12 /2019 Corporate Headquarters (8/ 2019) 29 / 12 /2019 Corporate Headquarters