Saudi Industrial Export Co. — Audit Report / Information 2020

Jun 9, 2021

Announcement of The Saudi Industrial Export Company (Sadirat) on the latest developments in the clarification of why the external auditor disclaimer his opinion on the annual financial statements ended December 31, 2020.

4140 · 09/06/2021 17:11:03 · Announcement #63715 · View on Saudi Exchange

Announcement of The Saudi Industrial Export Company (Sadirat) on the latest developments in the clarification of why the external auditor disclaimer his opinion on the annual financial statements ended December 31, 2020.

Element List	Explanation
Introduction	Referring to the company's announcement on 29-04-2021 as well as the additional announcement dated 03-05-2021 regarding the explanation of why the external auditor disclaimer his opinion on the annual financial statements ended 31/12/2020.

The Saudi Industrial Export Company would like to announce to shareholders that the core requirements of the reservations of the external auditor baker Tilly office have been finalized in its annual report on the annual financial statements ended 31-12-2020.

Accordingly, the external auditor expressed his opinion on the annual financial statements ended 31-12-2020 and the nature of the opinion was (preservative opinion). Previous Announcement the latest developments in the clarification of why the external auditor disclaimer his opinion on the annual financial statements ended December 31, 2020. Date of Previous Announcement on Tadawul's Website 2021-05-03 Corresponding to 1442-09-21 Percentage of fulfilled achievement The core requirements of the reservations of the external auditor Event's Expected Completion Date 09-06-2021 Reasons for Exceeding the Announced End Date N/A The costs associated with the event, and if they have changed or not with indication of the reasons. There are no costs associated with the event during the current period and the financial impact will be announced later if any. Impact of the Delay on the Company's Financial Results N/A Additional Information Preservative opinion of external auditor:

(We have reviewed the reissued consolidated financial statements of Saudi Industrial Export Company (the “Company”) and its subsidiary (together refer as the “Group”) , which comprise the consolidated statement of financial position as at 31 December 2020, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, including a summary of significant accounting policies

In our view, with the exception of the potential effects of the matters described in the "Basis of preservative Opinion" section of our report, the attached consolidated financial statements fairly present, in all essential respects, the Group's consolidated financial position as of December 31, 2020, its consolidated financial performance and consolidated cash flows for the year ending that date in accordance with the international standards of the financial report adopted in Saudi Arabia and other issuing standards approved by the Saudi Authority of Auditors and Accountants.

The basis of preservative opinion

1. The Group has not calculated the expected credit losses in accordance with International Financial Reporting Standard No. (9). Accordingly, we were unable to determine whether any necessary adjustment to trade receivables balance as of 31 December 2020.

2. Our review of the cost of revenue of SAR 35 million for the year ended December 31, 2020, showed that some documents supporting the purchase amounts were incomplete and we were unable to obtain sufficient confirmations from other audit procedures, and therefore we were unable to determine whether there were any necessary adjustments to the cost of revenue for the year ended December 31,2020.

3. Management has not evaluated the Group's relationship of its contracts with customers as principal or agent in accordance with International Financial Reporting Standard No. (15), and therefore we were unable to determine the appropriateness of the presentation of Group’s revenue and cost of revenue for the year ended 31 December 2020.).

We have reviewed in accordance with international audit standards adopted in Saudi Arabia. Our responsibilities under these standards are detailed in the "Auditor's Responsibilities for reviewing reissued consolidated financial statements" section of our report.

We are independent of the Group in accordance with the code of conduct and ethics adopted in Saudi Arabia and are relevant to our review of consolidated financial statements, and we have also fulfilled our ethical responsibilities in accordance with these rules. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our preservative opinion.)

- The company would therefore like to explain to shareholders that some of the current period figures for 2020 and the prior period of 2019 were restated and adjusted in both the income statement, the financial statement, and the cash flow statement, based on international accounting standards(IFRS), As this amendment resulted in a difference from the announcement of the annual financial statements ending on 31-12-2020 AD published on 29-04-2021 AD, as well as the corrective announcement of the annual financial statements ending on 31-12-2020 AD and published on 18-05-2021 AD. Therefore, there will be separate announcement for edited financial statements ending on 31-12-2020 AD based on the reissued version of the financials statements.

With this, the company’s board of directors extends its sincere thanks to shareholders to their confidence during the previous period needed by the audit teams to remedy the reservations of the external auditor, and correct the accumulated accounting errors, and therefore the company stresses its full commitment to the application of international accounting standards (IFRS) and the activation and strengthening of the internal control system, which will reflected in the high level of commitment and professionalism.

The company also wishes to clarify that the file of consolidated financial statements and the independent auditor's report for the year ended December 31, 2020, reissued on the Website of the Saudi Financial Market Company (Tadawul) will be submitted according to the attached file. Attached Documents  

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.