Dividend Distribution Policy
Results of Internal Audit Procedures
ARDCO follows precise procedures of internal auditing , where the auditor reviews the company’s final financial statements The most prominent results are as follows 1. Evaluated the internal control system , including the accounting system , from both a theoretical and practical perspective , and provided the company with a report that outlines any weaknesses in the system and how to address them 2. Supervised the plans and actions of the Internal Audit Department and verify their effectiveness in line with the rules , regulations and professional standards 3. Prepared internal audit department reports for the audit period 4. The company’s internal audit department carried out continuous financial , operational , and technical inspections under the supervision of the Audit Committee to verify the effectiveness and efficiency of internal control systems in protecting the company’s assets , evaluate business risks , and measure performance efficiency 5. The internal audit department submits quarterly reports to the Audit Committee , which details the results of the company’s internal control evaluation 6. The Audit Committee supervised the performance and activities of the internal auditor and the internal audit department to verify the required resource availability , as well as their effectiveness in performing their assigned tasks 7. Ensured internal audit impartiality and enabled it to carry out its roles and responsibilities effectively 8. The Audit Committee’s annual report confirmed the effectiveness and quality of the company’s internal control procedures. No fundamental weaknesses were detected in the company’s internal control system during 2023.
As a consistent general policy , the Board of Directors proposes the following for the end of each fiscal year 1. Set aside 10% of the net profits to form a statutory reserveThe Ordinary GeneralAssembly may halt this process should the aforementioned reserve reach half of the company’s capital. 2. From the remainder , a payment is then distributed to shareholders equal to 5% of the paid-up capital 3. Following the above , 5% of the remainder is allocated to remunerate members of the Board of Directors , taking into account the decisions or instructions issued in this regard by the relevant authorities. The remainder is then distributed to shareholders as an additional share in profits.
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