19 October 2011
12. The reason for the loss for the nine month period is due to Income recognised from the bank deposits being less than the general and administrative expenses and the provision for zakat as shown in the financial statements. The financial statements do not include the Net Profit/(loss) from insurance operations, for the same reason as stated in point 2.
13. Extract from the External Auditors Report:
- As described in Note 2 to the accompanying condensed interim financial statements, the Company started its insurance operations on February 13, 2010. The Company is in the process of transferring the insurance portfolio and net assets from Royal & Sun Alliance Insurance (Middle East) Limited E.C Saudi Arabian Operations and Al Alamiya for Commerce and Services Limited, to the Company effective January 1, 2009. However, the process to transfer the insurance portfolio has not been completed. The management did not prepare the condensed interim statement of financial position for insurance operations as of September 30, 2011 and condensed interim statement of insurance operations and condensed interim statement of insurance cash flows for the period then ended. Accordingly, the accompanying condensed interim financial statements are incomplete and the corresponding effect on the accompanying condensed interim financial statements of not including the insurance operations associated with such portfolio and the insurance operations conducted in 2009, 2010 and the nine months period ended September 30, 2011 might be material.
- We draw attention to the fact that these condensed interim financial statements are prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting (IAS 34) and not in accordance with the Standard on Interim Financial Reporting issued by SOCPA.
- We draw attention to note 3 which states that the comparative figures for the three, six and nine months ended September 30, 2010 have been included only for comparison purposes as the Company has obtained a waiver from the Capital Market Authority (CMA) to publish its 2010 quarterly results and, therefore, the comparative figures were neither published nor reviewed by independent auditors.
12. The reason for the loss for the nine month period is due to Income recognised from the bank deposits being less than the general and administrative expenses and the provision for zakat as shown in the financial statements. The financial statements do not include the Net Profit/(loss) from insurance operations, for the same reason as stated in point 2.
13. Extract from the External Auditors Report:
- As described in Note 2 to the accompanying condensed interim financial statements, the Company started its insurance operations on February 13, 2010. The Company is in the process of transferring the insurance portfolio and net assets from Royal & Sun Alliance Insurance (Middle East) Limited E.C Saudi Arabian Operations and Al Alamiya for Commerce and Services Limited, to the Company effective January 1, 2009. However, the process to transfer the insurance portfolio has not been completed. The management did not prepare the condensed interim statement of financial position for insurance operations as of September 30, 2011 and condensed interim statement of insurance operations and condensed interim statement of insurance cash flows for the period then ended. Accordingly, the accompanying condensed interim financial statements are incomplete and the corresponding effect on the accompanying condensed interim financial statements of not including the insurance operations associated with such portfolio and the insurance operations conducted in 2009, 2010 and the nine months period ended September 30, 2011 might be material.
- We draw attention to the fact that these condensed interim financial statements are prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting (IAS 34) and not in accordance with the Standard on Interim Financial Reporting issued by SOCPA.
- We draw attention to note 3 which states that the comparative figures for the three, six and nine months ended September 30, 2010 have been included only for comparison purposes as the Company has obtained a waiver from the Capital Market Authority (CMA) to publish its 2010 quarterly results and, therefore, the comparative figures were neither published nor reviewed by independent auditors.
© Tadawul 2011
