Audit report 31, December 2008
( Audit by KPMG Al Fozan & Al Sadhan )
To: The Shareholders
Al Ahsa Development Company
Al Ahsa, Saudi Arabia
We have audited the accompanying consolidated financial statements of Al Ahsa
Development Company. (“the
Company”) which comprise the balance sheet as at 31 December 2008, and the
related statements of income,
cash flows and changes in shareholders’ equity for the year then ended and the
attached notes (1) through (26)
which form an integral part of this financial statements.
Management is responsible for the preparation and fair presentation of these
financial statements in accordance
with generally accepted accounting standards in the Kingdom of Saudi Arabia in
compliance with Article
123 of the Regulations for the Companies and the Company’s Articles of
Association. This responsibility
includes: designing, implementing and maintaining internal control relevant to
the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error; selecting
and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Management has provided us with all the information and explanations that we
require relating to
our audit of these financial statements.
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 in
Saudi Arabia.Those standards
require that we comply with relevant ethical requirements and plan and perform
the audit to obtain reasonable
assurance whether the consolidated financial statements are free of material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the
financial statements. The procedures selected depend on our judgment, including
the assessment of the risks
of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments,
we consider internal control relevant to the entity's preparation and fair
presentation of the financial
statements in order to design audit procedures that are appropriate in the
circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal
control. An audit also includes
evaluating the appropriateness of accounting principles used and the
reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our
opinion.
In our opinion, the consolidated financial statements taken as a whole:
1) present fairly, in all material respects, the financial position of the
Company as at 31 December 2008, and
the consolidated results of its operations, cash flows and changes in
shareholders’ equity for the year then
ended in accordance with generally accepted accounting standards in the Kingdom
of Saudi Arabia appropriate
to the circumstances of the Company; and
2) 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 financial statements.
Emphasis of matter:
Note no, (3) to the accompanying consolidated financial statements, the
subsidiary company earned accumulated
losses that exceeded the paid up capital of SR. 29.1 million, its current
liabilities as well exceeded its
current assets of SR. 24.9 million, the company currently study possible
alternatives in order to restructure its
subsidiary with an advisory firm and the company is providing the necessary
financial support to its subsidiary.
KPMG Al Fozan & Al Sadhan
Tareq Abdulrahman Al Sadhan
License No. 352
Al Khobar on 29 Rabi 1430H
Corresponding to 24 February 2009