Report of the Audit Committee of Nama Chemical Company for the fiscal year ending December 31, 2021
Dear shareholders of Nama Chemicals Company,
About the formation of the audit committee during the year 2021 AD
-Issa - Chairman of the Audit Committee (Membership expired on July 31, 2021)
-Ahmari - Chairman of the Audit Committee (Membership began on August 4, 2021)
- Member of the Audit Committee from outside the Board (Membership was renewed from August 4, 2021, AD for a period of three years)
Muffadhi bin Ali Atnan - Member of the Audit Committee from outside the Board (Membership was renewed on August 4, 2021, for a period of three years)
During the year 2021 AD, the Audit Committee held six meetings as follows:
First meeting - March 24, 2021, AD - April 18, 2021, AD - May 1, 2021, AD - August 8, 2021, AD - October 28, 2021, AD
- December 27, 2021, AD
The Audit Committee of Nama Ch
responsibilities with respect to: The main risks of the company and the effectiveness of the procedures followed for its management, the internal control system, the financial statements and the accounting policies followed, the nomination of the external auditor after ensuring the qualifications and independence of the audit team and evaluating its performance, internal audits, compliance with laws, regulations and policies related to work ethics, conflict of interest and other matters in accordance
particular as follows:
1. Financial statements:
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fiscal year 2021 and the financial statements for the fiscal year ending on 31/12/2020, where observations were made and discussed with the external auditors. It was emphasized that there were no material observations affecting the fairness of the financial statements, and the committee expressed its opinion and submitted a recommendation to the Board of Directors for approval.
2. External auditors:
The Committee recommended to the Board of Directors and the General Assembly the nomination of the auditor of the company, after studying the offers submitted by the audit firms, where the General Assembly of the company approved on June 28, 2021 AD the appointment of Al-Kharashi office and its partners, accountants and legal auditors the fiscal year 2021 AD and the first quarter of the fiscal year 2022 AD, and determining its fees.
3. Internal Audit:
The Committee followed up and reviewed the periodic reports issued by the Internal Audit Department related to the progress and percentage of achievement in implementing the audit plan approved and implemented by the United Accountants Company for Professional Consultations and considered the most important observations and gave the necessary directions to address the deficiencies related to all departments subject to the audit plan. The Committee expressed its opinion on the comments submitted and recommended that they be submitted to the Board of Directors to direct the executive management to take the necessary corrective and preventive measures to ensure that such observations do not occur in the future. The committee also recommended the director of internal audit to adopt standards of time commitment in addressing these observations and to report to the committee the results of the follow-up. It is also worth noting that based on the recommendation of the Director of Internal Audit, the committee agreed to re-accredit the RSM company to prepare and implement the audit plan for the year 2022, after ensuring the application of tender procedures between the approved audit firms and based on the technical and professional evaluation and the appropriate financial cost. The scope of work to be covered in the 2022 audit plan includes.
4. The dispute between Nama and the Zakat, Tax and Customs Authority:
The committee recommended the company's executive management to follow up and take the necessary measures to resolve this dispute.
5. The status quo between Nama Company and the Industrial Development Fund:
The committee followed up on the existing situation between the company and the Industrial Development Fund regarding
the Industrial Development Fund, and the committee recommended the executive management to follow up and take all necessary measures and inform the committee of the results.
In conclusion, the Audit Committee thanks the Board of Directors of Nama Chemicals Company, the Executive Management, as well as the Internal Audit Department and all employees for their cooperation during the past period, wishing them continued success and success.
Abdullah Jaber AlFifi Chairman of the Audit Committee
(As of February 23, 2022, to succeed Fayez Al-Ahmari for his election to the presidency of the Board of Directors)
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Abdulrahman Abdulaziz balghonaim Muffadhi Ali Atnan
Member of the Audit Committee Member of the Audit Committee --- ---
Maha Samher AlHarbi Secretary of the Audit Committee ---
