Etihad GO Telecom Co. — Audit Report / Information 2012

May 26, 2012

ETIHAD ATHEEB TELECOMMUNICATION COMPANY (GO) ANNOUNCES THE FINANCIAL RESULTS FOR THE YEAR ENDING MARCH 31, 2012. (Continued 2)

7040 · 26/05/2012 16:53:00 · Announcement #25943 · View on Saudi Exchange

ETIHAD ATHEEB TELECOMMUNICATION COMPANY (GO) ANNOUNCES THE FINANCIAL RESULTS FOR THE YEAR ENDING MARCH 31, 2012. (Continued 2)

Emphasis of matters:

Without further qualifying our opinion, we draw attention to note 2 to the financial statements. The Company has completed a rights issue of SR 1,175 million in the quarter ended 31 March 2012. The proceeds from the rights issue was primarily used to part settle the Companys outstanding Tawarroq Islamic financing facility to the extent of SR 826 million. Further, an amount of SR 119.9 million drawn from the founding shareholders was also settled from the proceeds of the rights issue. Net proceeds available to the Company after settlement of the above cash commitments and related expenses of the rights issue was SR 209.2 million.

Despite an increase in revenue, the Company has incurred an operating loss of SR 302 million during the year ended 31 March 2012. Further, as of that date, the Companys current liabilities exceeded its current assets by SR 1.3 billion (out of which SR 946 million has been settled as of the date of this report). These conditions indicate the existence of a material uncertainty that may cast a significant doubt on the Companys ability to continue as a going concern.

Even after completion of the rights issue, the ability of the Company to continue as a going concern is dependent on its ability to generate sufficient trade cash flows and renegotiate terms of payment with creditors or secure new financing in order to meet operational cash requirements. The Company is currently reviewing alternative sources of funding. However, as of the date of this report these have not been finalized. In the event that the company is unable to arrange alternate sources of financing, The founding shareholders of the Company have committed in the Companys Board of Directors meeting held on 29 Jamad Al Thani 1433H (corresponding to 20 May 2012) to fund any cash deficit the Company may face for the financial year ending 31 March 2013.

Further, we draw attention to note 29 to these financial statements. As of the balance sheet date, the Companys accumulated losses are in excess of its capital. As required by Article 148 of the Saudi Arabian Regulations for Companies, the Companys shareholders have in an extraordinary general meeting held on 12 Jamad Al Awwal 1432 H (corresponding to 16 April 2011) decided to continue with the operations of the Company. Subsequently, the Company has completed its rights issue as set out above. Legal formalities in this respect are in process as of the date of this report.

(Continued)

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