AnnualReport

ANNUAL REPORT

2016

• Board of Directors Committee

1) Audit Committee:

The Audit Committee has been re-composed of three members according to the board of directors

decree dated 25 April 2016 for a period of three years.

Committee

members

Committee duties

Post

- Review of the periodical financial statements before presenting them to the board of

directors, express the opinion and recommendation in this respect to the board of directors

for the purpose of ensuring the fairness and transparency of financial reports, ensure the

soundness and integrity of the financial reports and the Company internal control systems.The

Committee held its periodical (quarterly) meetings in which the financial reports issued by the

Company financial sector and the external auditor’s office were discussed.The Committee

submitted a recommendation for their approval to the board of directors.The financial reports

guarantee and integrity mechanism forms were signed for each quarter

- Follow up of the external auditors’ works and ensure that they only submit the services

required by the auditing profession to the Company.

- Study the external auditors’ remarks on the Company financial statements and follow up the

developments in this respect.

-Study the applicable accounting policies and express the opinion and recommendation to

the board of directors in this respect.

- Review of the transactions and dealings with the relevant parties and submit suitable

recommendations in this respect to the board of directors.

- Evaluate the extent of adequacy of the internal control systems applied in the Company

and prepare a report comprising the opinion and recommendation of the Committee in this

respect.

-Technical supervision over the Internal Audit Unit in the Company in order to verify the

extent of its efficiency in executing the works and tasks outlined by the board of directors.

-Recommend the appointment of the Internal Audit Unit manager.

- Review and approve the audit plans proposed by the internal auditor and express remarks

on them.The Committee reviewed during its periodical meetings the Company internal audit

plan and reviewed the internal audit works progress for the Company sectors/departments,

whereby it reviewed the internal adit reports for the following sectors/departments:

• Legal • Human resources and administrative affairs.

•Marketing and sales • Finance

• Projects • Real estate

• Business development • Information technology.

Further, the Committee reviewed the replies of the concerned sectors/departments, and

verified that the necessary corrective measures have been taken in connection with the

remarks set forth under the reports.

-In connection with the reports of the regulators, there were no remarks issued.

-Review of the annual report of the Legal Department and Compliance and Control

Department.

-Recommend to the board of directors to appoint and re-appoint external auditors or change

them and fix their fees. It has been recommended to approve reappointment of (Ernst &

Young) as an external auditor for the year 2017 and stopping the engagement with BakerTilly

firm, as per the regulations and laws.

Committee Meetings

1/2016 2/2016 3/2016 4/2016

Member

classifi

-cation

Committee

chairman

Non

executive

100% 0%

100%

Non

executive

Committee

member

Independent

Committee

member

Attendance

Percentage

Absence

Percentage

Mr. Abdulhameed

Mohamed Mehrez

Mr. Mohamed Khaled Al

Othman

Mr. Abdulrahman Mohamed

Al Shared