ARDCO Annual Report 2023 English

01. External Audit¬ • Provide recommendations to the board regarding nominations of external auditors , their dismissal , fees , and performance evaluation , after ensuring their impartiality and reviewing the scope of work and terms of their contracts • Verify the impartiality and objectivity of the external auditor , taking into account the relevant rules and standards • Review the company’s auditor’s work plan , verify the absence of transgression and deficiency in their actions , verify that no tasks outside the scope of audit work are performed , and express any insights in relation to this • Answer inquiries from the company’s external auditor • Study external auditor reports and observations on financial statements , express insights in relation to them , if any , and follow up on any actions or decisions taken regarding them 02. Commitment Guarantee • Review the results of reports from regulatory authorities and verify the actioning of any necessary measures regarding them. • Supervise company compliance with the rules , regulations , policies and instructions related to our scope of work • Review proposed contracts and transactions with related parties and potential conflicts of interest , if any , and submit its recommendations thereon to the board • Submits to the board any issues within its scope it deems necessary to action and provide recommendations on required measures.

Review Committee Overview of Committee Responsibilities

The committee studies matters within its jurisdiction or those referred to it by the board , and submit its recommendations to the board to reach a decision or actions the decisions that the board has delegated upon it The committee must inform the board of its results or the decisions it actions or recommends The committee is responsible for monitoring the company’s business and financial activities to verify its policies and procedures and ensure the integrity of reports and financial statements and their internal control systems The committee’s specific tasks include the following‡ 01. Financial Reports • Review preliminary quarterly and annual financial statements before they are presented to the Board of Directors and express insights and recommendations to ensure their integrity , fairness , and transparency • Upon the Board’s request , provide insights as to whether the board’s annual report and the company’s financial statements are fair , balanced , and understandable and include all necessary information to allow shareholders and investors to accurately evaluate the company’s financial position , performance , business model , and strategy • Analyze any important or extraordinary matters included in financial reports and accounts • Research any matters raised by the company’s financial director (or whoever assumes such duties) , the company’s compliance officer , or the auditor • Verify accounting estimates regarding material matters contained in financial reports • Review accounting policies adopted by the company and express insights and recommendations regarding them to the Board of Directors. 02. Internal Audit¬ • Review and analyze the company ’ s internal , financial , and risk management systems • Supervise the plans and actions of the Internal Audit Department and verify their effectiveness in line with the rules , regulations and professional standards and provide recommendations to the Board of Directors regarding the appointment of the internal audit department director or an internal auditor and proposed compensation • Review internal audit reports and follow up on the implementation of corrective measures for observations contained therein. • Monitoring and supervising the performance and activities of the internal auditor and the internal audit department in the company in order to verify required resource availability , as well as their effectiveness in performing their assigned tasks If the company does not have an internal auditor , the committee must submit its recommendations to the board regarding the necessity of appointing one , if any • Ensure internal audit impartiality and enable it to carry out its roles and responsibilities effectively

2023 Audit Committee Members & Meeting Summary

Ahmed Abdullah AlKanhal External Member

Saled Moqbel AlKhalaf External Member

Sulaiman Nasser AlHatlan Committee Chairman - Board Member

Nayef Ibrahim AlHudaithi Board Member

The Audit Committee conducted six meetings from 01-01-2023 to 31-12-2023:

Meeting

Second 26/02/2023

Third 01/05/2023

Fourth 20/07/2023

Fifth 19/10/2023

Sixth 30/10/2023

First 02/01/2023

Committee Members

1 Sulaiman Nasser AlHatlan | Committee Chairman Present

Present

Present

Present

Present

Present

2 Saleh Moqbel AlKhalaf | Member

Present

Present

Present

Present

Present

Present

3 Ahmed Abdullah AlKanhal | Member

Present

Present

Present

Present

Present

Present

Nayef Ibrahim AlHudaithi | Member

4

Present

Present

Present

Present

Present

Present

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