The Audit Committee Report to the General

(1)

ةعجارلما ةنلج ريرقت

ةماعلا ةيعملجا لىإ ليالما ماعلل

2019 م

The Audit Committee Report to the General

Assembly for the Fiscal Year 2019

(2)

ةمدقم :ً لاوأ .

نمضتت ةمظنأ قيبطت نم دكأتلا ةرادلإا سلمج تايلوؤسم

ماع راطإ عضوب كلذو ؛رطاخلما ةرادإو سايقل ةبسانم ةيباقر ةيعاو ةئيب ءاشنإو ةكرشلا هجاوت دق تيلا رطاخلما كاردلإ اهحرطو ،ةكرشلا ىوتسم ىلع رطاخلما ةرادإ ةيمهلأ ةكرشلاب ةلصلا تاذ فارطلأاو لحاصلما باحصأ عم ةيفافشب .

ةباقرلا تاءارجإ ةيلعافل ةيونسلا ةعجارلما لىإ ةفاضإ ةكرشلا في ةيلخادلا .

First, Introduction.

It is the responsibility of the Board to ensure the implementation of appropriate control systems to measure and manage risks by setting a general framework to be aware of the risks which the company may face, and create an environment that is conscious of the importance of Risk Management on the company level and share it with the stakeholders and related parties, beside reviewing the effectiveness of the company’s Internal Control system and procedures on an annual basis.

امعأ ةبقاربم ةعجارلما ةنلج صتتخو نم ققحتلاو ةكرشلا ل

ةباقرلا ةمظنأو ةيلالما مئاوقلاو ريراقتلا ةهازنو ةملاس ةعجارلما ةنلج لمع ةحئلا في دراو وه امك اهيف ةيلخادلا خيراتب ةكرشلل ةماعلا ةيعملجا نم ةدمتعلما 24

/ 4 / 2019 م ،

نم رداصلا "تاكرشلا ماظن" هيلع صن الم ًاقيبطت كلذو لا" تابلطتلمو ةراجتلا ةرازو ةرداصلا "تاكرشلا ةمكوح ةحئ

ةيلالما قوسلا ةئيه نع .

The Audit Committee (AC) is in charge of monitoring the company’s activities and verifying the integrity of the reports and financial lists and Internal Control Systems as stated in the

“Companies Law” issued by the Ministry of Commerce, and the “Corporate Governance Regulations” issued by the Capital Market Authority, and as stated in the “AC Charter”

approved by The General Assembly on 24/4/2019.

،ددصلا اذه في اهتايلوؤسبم ةنجللا تماق دقف ،هيلع ًءانبو و رطاخلما ليلقتل ٍفاكو ٌلعاف ةيلخادلا ةباقرلا ماظن نأ ينبت

.ةيرهولجا

و تدعأ تماق ام مهأو ةنجللا رود ضرعل ريرقتلا اذه ةنجللا

ماع للاخ لامعأو ةطشنأ نم هب 2019

.م

Accordingly, the AC has fulfilled its

responsibilities in this regard, and it has been found that the system of the Internal Control is effective and sufficient to reduce the significant risks.

The AC prepared this report to present its role and most important activities during 2019.

(3)

للاخ ةنجللا ةطشنأ : ًايناث ةنسلا

ةيلالما 2019 .م

ًامازتلا ةحئلاو ةدمتعلما ةنجللا لمع ةحئلاب

"

ةمكوح

"تاكرشلا ،ةيلالما قوسلا ةئيه نع ةرداصلا

ةنلج تلمع

ةملاس نم ققحتلاو ةكرشلا لامعأ ةبقارم ىلع ةعجارلما ةيلخادلا ةباقرلا ةمظنأو ةيلالما مئاوقلاو ريراقتلا ةهازنو ةعجارلما لامعأ ىلع فارشلإاو ةيبسالمحا تاسايسلاو ،اهيف دلا لىإ ةفاضإ رطاخلما ةرادإو ينيجرالخا ينعجارلماو ةيلخا

حئاوللاو ةمظنلأاب مازتللاا نامض لامعلأا نم كلذ يرغو

ةنجللاب ةطانلما تايلوؤسلماو .

دقو ماعلا للاخ ةنجللا ةطشنأو لامعأ تلشم 2019

ةفصب م

:يلي ام ةصاخ

Second: AC activities during 2019.

In compliance with the “Corporate Governance”

regulations and the approved “Audit Committee Charter”, the AC continued to monitor the Company’s activities and to verify the integrity of the financial reports, and the efficiency of internal control systems and accounting policies, in addition to supervising the work of Internal Audit and External Auditors, and Risk Management.

Furthermore, the Committee ensure that the Company compliance with the laws and regulations, and other responsibilities as per its mandate. The AC activities during the year 2019 included the following:

1. داةةةمتعاو ةةةةعجارم

"

ةةةةيلخادلا ةةةةعجارلما لةةةمع قاةةةثيم

"

اةةةبم

لةةضفأو ةةةيلخادلا ةةةعجارملل ةةةيلودلا يرياةةعلما عةةم قةةفاوتي ةةةةيلماعلا تاةةةسراملما و ،

ةةةةعجارلما سيةةةئر ةيللاقتةةةسا نامةةةض

دلا ةةعجارلما لاةمعأ نم ةوجرلما ةيعوضولما ززعي ابم ةيلخا

.ةيلخادلا

1. Review and approve the Internal Audit Charter

in line with the international standards of Internal Audit and best global practices. Also, ensure the independence of the chief Internal Auditor to enhance the objectivity of the internal audit operations.

2. ينةب اةم ةةعجارلما لوةكوتوربو ماعلا راطلإا قيبطت ةعباتم ةةةنجللا و ةةةيلخادلا ةةةعجارلما ةكرةةشلا في

ةةةعجارلما تارادإو

تاكرةةشلا في ةةةيلخادلا

ًءاوةةس ةةةعباتلا لةةماملاب ةةةكولملما

وأ تيةةةةلا اةةةةهيلع رطيةةةةست ةكرةةةةشلا

هةةةةب حمةةةةست اةةةةم قةةةةفو

.ةكارشلا تايقافتا

2. Follow up the implementation of the general

framework and audit protocol between the Committee, the Company internal audit, and internal audit departments in the subsidiaries, either wholly owned or controlled by the Company, according to the partnership agreements.

3. ماةةع للاةةخ ةةةيعبرلا ةةةيلالما مئاوةةقلا داةةمتعاو ةةةسارد 2019

م

ماةعل ةيونةسلا ةةيلالما مئاوةقلا ىلع ةقداصلماو 2018

م،

تيةلا

ةةت اةةهيلع ةةةقفاولما ت ،سةةل ا لةةبق نةةم

ةةقحلا اةةهدامتعاو

ًا

ةماعلا ةيعملجا نم خيراتب

24 / 4 / 2019 م.

3. Study and approve both the Quarterly financial statements during the year 2019, and the annual financial statements for the year 2018, which were later approved by the Board first then ratified by the General Assembly. On 24/4/2019.

(4)

4. ةنجللا ريرقت ميدقت لجا عامتجا في

علا ةيعم ،ةةما

دةقعنلما

خيراتب 24 / 4 / 2019 م،

اهيأر ةنجللا تدبأ ثيح ىدةم لايح

يلاةةلما ماةةعلا نةةع ةةةيلخادلا ةةةباقرلا ماةةظن ةةةيلاعفو ةةةيافك 2018 م،

ًادانتةةةةةسا كةةةةةلذو لىإ

اةةةةة عةةةةةفرت تيةةةةةلا ريراةةةةةقتلا

عةةةةجارلماو ةةةةةيلخادلا ةةةةةعجارلما لاةةةةمعأ ائاةةةةتنل اةةةةهمييقتو ةةةةةيذيفنتلا ةرادلإا لةةةةبق نةةةةم ةةةةةبوتملما ةداةةةةفلإاو يجراةةةةلخا

ٍيأرب ةموعدلما لقتسم يراشتسا

.

4. The AC presented its report at the General

Assembly meeting held on 24/4/2019, where it expressed its opinion on the adequacy and effectiveness of the internal control system for the Year 2018 based on reports submitted to it.

And its evaluation of the results of works done by both the Internal Audit and the External Auditor, and the written statement by the Executive Management supported by an independent consultant review of the internal control systems.

5. دةيكأتلاو ةةيلخادلا ةةعجارملل ةةيعبرلا ريراقتلا ةشقانم ةرادلإاو ةةةةةةيلخادلا ةةةةةةعجارلما ينةةةةةب نواةةةةةعتلا زةةةةةيزعت ىةةةةةلع اةةةةةةةةبم ةةةةةةةةةيذيفنتلا ةةةةةةةةطلخا ذةةةةةةةةيفنت ةةةةةةةةةعباتم لةةةةةةةةفمي

.ةيحيحصتلا

5. Review the Internal Audit quarterly reports

and emphasize on strengthening of cooperation between the Internal Audit and the Executive Management to ensure the continuity of implementing the corrective plans.

6. ةيةةةةةصوتلا عةةةةةفر سةةةةةل

ةرادلإا راةةةةةيتخا ىةةةةةلع ةةةةةةقفاوملل

لما ماةعلل هةباعتأ دةيددو يجراةلخا عجار ين

يلاةلما ين 2019 م

و 2020

،م ىةةةلع ةةةةقفاولماو لأا

ةيفاةةةضلإا ةةةةيديكأتلا لاةةةمع

ةةةيلالما ةءلاةةلما رةةيرقت ةةةعجارم اةةهمهأ نةةمو اةةهب موةةقي تيةةلا ةةيلالما قوةسلا ةئيه تابلطتلم ًاقفو

، ءاةعو رةيرقت ةةعجارمو

ةةةيموم ا موةةسرلا باةةستحا ضارةةغلأ ةةةصالخا تادارةةيلإا تاةةةةةمولعلما ةةةةةةينقتو تلااةةةةةصتلاا ةةةةةةئيه تاةةةةةبلطتلم ًاةةةةةقفو

،

.ةماعلا ةيعمجلل كلذب ةيصوتلاو

7. ةةةشقانم

"

ةةةعجارلما ةةةطخ ماةةعل

2019

"

نةةم ةةةمدقلما عةةجارلما

لاةةةةةمعأ ةةةةةعباتمو ،اةةةةهيلع تاةةةةةاوحللما ءادةةةةبإو يجراةةةةلخا عجارلما يجرالخا .

6. Submit a recommendation to the Board to endorse the selected external auditor, determine their fees for the fiscal years 2019 and 2020, and approve the additional auditing confirmations they undertake, the most important of which are reviewing the financial solvency report as per the requirements of the Capital Market Authority, and reviewing the report of the revenues base which has been allocated to calculate government fees as per CITC requirements. This shall be recommended to the General Assembly.

7. Review the “2019 Audit Plan” developed by the External Auditor, and follow up the work of the External Auditor.

(5)

8. يجراةةةلخا عةةةجارلما ةيعوةةةضومو ةيللاقتةةةسا نةةةم قةةةقحتلا عم ةيجرالخا ةعجارلما لامعأ ةيلعاف نم دكأتلاو ذخلأا

في راةةبتعلاا دةةعاوقلا

يرياةةعلماو تاذ

ةلةةصلا

، لىإ ًةفاةةضإ

ةةةةشقانم

"

ةرادلإا باةةةةطخ

"

يجراةةةةلخا عةةةةجارلما نةةةةم مدةةةةقلما

حللما ةةةلجاعلم ةةةيذيفنتلا ةرادلإا ةةطخو و

ةدراوةةلا تاةةا في

باطلخا

.

8. Verify the independence and objectivity of the External Auditor and the effectiveness of the External Audit work taking into account the relevant rules and standards, and discuss the

“Management Letter” submitted by the External Auditor, and executive management plans to address the observations in the letter.

9. ،مازةتللاا ريراقت ةسارد مازةتلا ىدةم سةمعت تيةلا

ةكرةشلا

ةةةةيماظنلا تاةةةبلطتلماب ةةةةيموم ا تاةةةهلجا اهردةةةصت تيةةةلا

ةقلاعلا تاذ في ةنمةضتلما تايصوتلا ذيفنت ةعباتمو

كةلت

ريراقتلا .

10 . ائاةةةةةتن ةةةةةةعجارم ريراةةةةةقت

تاةةةةةهلجا ،ةةةةةةيجرالخا ةةةةةةيباقرلا

ةبةةساحملل ماةةعلا ناويدةةلاك قةةقحتلاو

نةةم ذاةةتخا

ةكرشلا تاءارجلإا

اهنأشب ةمزلالا .

9. Study Compliance reports, which reflect the company’s compliance with the regulatory requirements issued by the relevant government authorities and follow up on the implementation of the recommendations included in the reports.

10. Review the results of the reports of external supervisory authorities such as the General Accounting Bureau, and verify that the company has taken the necessary measures in this regard.

11 . ةسارد لا ريراقت لإ ةيعبرلا ةرمتسلما ةعجارلماو ،رطاخلما ةراد

،اةةةةهزوا مدةةةةع نةةةةم قةةةةقحتلاو رطاةةةةخلما لوةةةةبق ىوتةةةةسلم تلاو ىةةةلع دةةةيكأ ةةةةصصخلما ةةةةيرودلا تاراةةةبتخلاا ءارةةةجإ

ميدةةةقتو ،رطاةةةخلما لةةةمد ىةةةلع ةكرةةةشلا ةردةةةق ميةةةيقتب ةراد ةةةةةةب ةةةةةةةقلعتلما لئاةةةةةةسلما لوةةةةةةح سةةةةةةلجملل تايةةةةةةصوتلا .رطاخلما

11. Study Risk Management quarterly reports,

with continuous review of the level of acceptance of risks to ensure that the Company does not exceed such levels. And Emphasis on conducting a periodic reassessment of the company's ability to bear risks, and submit recommendations to the Board on matters related to risk management.

(6)

12 . ةنجللا مايق للاخ نم ب

ةسارد ةرداةصلا ريراةقتلا ةشقانمو

ةكرةةشلا في ةةةفلتخلما ةةةيباقرلاو ةةةيديكأتلا تارادلإا نةةم ماةةةعلا للاةةخ 2019

نةةةم دةةةيدعلا ةةةنجللا تةةةنبت ،م تارارةةةقلا

و تايةةةةةةةةصوتلا عباةةةةةةةةتتو ةةةةةةةةةقلاعلا تاذ

ةةةةةةةةطلخا عةةةةةةةةضو

ةيحيحصتلا ةمزلالا

.اهنأشب

12. Through the AC’s review and study of the

reports issued by various oversight departments in the company during the year 2019, the committee adopted a number of resolutions and recommendations that need to be addressed.