Audit report 31, December 2007
( Audit by KPMG Al Fozan & Al Sadhan )
We have audited the consolidated balance sheet of
Al Ahsa Development Company – Saudi
Joint Stock Company - (the Company) as of 31 December 2007, and the related
consolidated statements of income, cash flows and changes in shareholders’
equity for the year then ended, and the attached notes (1) through (22) which
form an integral part of these consolidated financial statements. These
consolidated financial statements are the responsibility of the Company’s
management and have been prepared by them in accordance with the provisions of
the Regulations for Companies and submitted to us together with all the
information and explanations which we required. Our responsibility is to express
an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance that the consolidated financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the consolidated financial statements. An audit
also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the consolidated financial statements taken as a whole:
i) present fairly, in all material respects, the consolidated financial position
of Al Ahsa Development Company as of 31 December 2076 and the results of its
operations and its cash flows for the year then ended in accordance with
generally accepted accounting standards appropriate to the circumstances of the
Company; and
ii) comply with the requirements of the Regulations for Companies and the
Company’s Articles of Association with respect to the preparation and
presentation of the consolidated financial statements. Without qualifying our
opinion we draw attention to the followings:
1. Note no. (6a) to the accompanying consolidated financial statements, and
up to the date of this report, the Company did not register its ownership share
in Emaar Al Derh Al Arabi Co - Saudi Closed Joint Stock Company – against
contribution of Cornish market project in Jeddah city which is still recorded at
the name of related party (which is not the related part after 9 July 2007 ) to
the company chairman. however the related party gave a release of his ownership
to these share ito the company's name, but till to date the company is in the
process of documenting ownership contract.
2. Note no. 6bc) to the accompanying consolidated financial statements, and
up to the date of this report, the Company did not register its ownership share
in Emaar Al Derh Al Arabi Co - Saudi Closed Joint Stock Company – against
Company’s contribution by its share amounted to 25% of Uqbah Bin Nafie land
which is located in Riyadh city and completely registered under the name of one
the local banks.
KPMG Al Fozan & Bannaga
Tareq Abdulrahman Al Sadhan
License No. 352
Al Khobar on 29 Muharram 1428H
Corresponding to 17 February 2007