icap ksa chapter FOURTH annual report 2015

ICAP KSA CHAPTER

Formed under the MoU with SOCPA and Operating under the Patronage of Pakistan Embassy in KSA

Fourth Annual Report 2015

ICAP KSA CHAPTER FOURTH ANNUAL REPORT 2015 2015

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Table of Contents

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President’s Review…………………………………………………………………………………………………… 2 Agenda of Fourth Annual General Meeting……………………………………………………………… 9 Report of Management Committee………………………………………………………………………… 10 Audit Report…………………………………………………………………………………………………………… 28 Audited Financial Statements for the year ended June 30, 2015 …………………………… 29


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President’s Review

In the name of Allah, the most Beneficent, the most Merciful “Then which of the favors of your Lord will ye deny?” Surah Rahman (55:13)

I would like to welcome you all at the 4th Annual General Meeting of the ICAP KSA Chapter in Riyadh, Kingdom of Saudi Arabia.

I feel proud to apprise you about the achievements of your Chapter. It may not have been possible without your support and active involvement in the Chapter’s affairs. I take this opportunity to extend my sincere gratitude to the participants, management committee and various other committees working under the Chapter for making this yet another successful year.

Networking with the members One of the core objectives of the Chapter is to bolster member’s interaction and make them reachable. With this in mind, the following events were organized:

4th Saudi-Pak Accountancy Symposium at Riyadh

In May 2015, your Chapter conducted the 4th Saudi-Pak Accountancy Symposium under the theme ‘Technology – CFO’s New Best Friend’. Like our past events, the symposium received great accolade from the audience at large. The event was held at the premier Ritz Carlton Hotel in Riyadh and was attended by professionals from Corporate, Banking and Finance sectors being the CEOs, Directors, CFOs and Partners of various local and multinational organizations. Ambassador of Pakistan in Saudi Arabia H.E. Manzoor-ul-Haq was the Chief Guest. The then ICAP President, Mr. Yacub Suttar and the then two VPs, Mr. Mohammad Maqbool and Syed Najmul Hussain, graced the occasion with their presence.

The distribution of the ‘MOST VALUED CONTRIBUTION TO THE PROFESSION (MVCP)’ Awards was a key segment at the above Symposium. The peer led award recognizes the sustained achievements and is presented to those professionals who helped enhance the brand value of the profession.


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SOCPA & ICAP Joint Conference at Jeddah It was a complement for the Chapter that considering its active role in the KSA, ICAP was requested by SOCPA to act as the Technical Partner in organizing their Third Accounting Forum ‘Accounting and Finance: Meeting Future Challenges’ in April 2015 in Jeddah, Saudi Arabia. The event proved to be a big success with record participation by over 400 participants.

The inaugural session was graced by Dr. Fahad Ahmad Abu Hamed, Deputy Minister of Commerce and Industry, Dr. Ahmad Al-Meghames, Secretary General SOCPA and Yacoob Suttar, then President ICAP. The eminent speakers from Pakistan included: Dr. Salman Shah, former Finance Minister of Pakistan, past Presidents of ICAP - Syed Masoud Ali Naqvi and Syed Asad Ali Shah, Noman Ansari, Group Treasurer and Head of Corporate Finance Saudi Telecom Company, and Asher Noor member ICAP and CFO Al-Touq Group.

Continued Professional Development (CPD) Seminars

The Continuous Professional Development of its members, especially if they are abroad, is another core objective of your Chapter. Keeping this in mind, the Continued Professional Development Committee (CPD) let by Mr. Ali Haider, Mr. Abdul Rauf and Mr. Nabeel Najam organized 7 CPD events in Riyadh, 6 events in Jeddah and 4 events in Al-Khobar respectively.

Family Fun Day

Your Chapter organized the Family Fun Day in Al-Khobar for members along with their families. The event provided to members and their families an excellent networking opportunity as well as a break from the tedium life. The main attraction of the event was the activities conducted in the ladies and children’s section, which made the event a must attend in future.


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“Meet & Greet” Syed Masoud Ali Naqvi and Mr. Ashfaq Tola on 26 November at Jeddah

In order to felicitate Syed Masoud Ali Naqvi and Mr. Ashfaq Tola on their respective

appointments as Chairman and Member of Pakistan Tax Reforms Commission, the ICAP KSA

Chapter and Pakistan Accountants Forum (PAF) Jeddah jointly arranged a get together on

Wednesday, November 26, 2014 at a 5 star hotel in Jeddah.

Contribution towards CA Talent Program of ICAP

Your Chapter has been self-sufficient and does not request for funding from its parent, the ICAP. On behalf of the ICAP KSA Chapter, I would like to thank all of our generous sponsors who have been consistently contributing to the success of the Chapter and look forward to their continued support in future as well. ICAP launched CA-Talent program in 2013 with a vision to attract academic high achievers from underprivileged backgrounds into the folds of CA. It is a fully funded program that selects, grooms and prepares talented students from the less privileged backgrounds of Baluchistan, Punjab, Sindh, Khyber Pakhtunkhawa, FATA, Gilgit Baltistan and Azad Kashmir. Sponsoring these students is a service to humanity and a noble way of giving something back to a rewarding profession, community and country. With this in background, the Management Committee decided to sponsor one student for full 5-year period by contributing SR 40,000 (equivalent to around PKR 1,100,000). The Chapter also requests its privileged and endowed members to come forward and participate in this noble cause and help a student’s dream of becoming a Chartered Accountant.


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Best Overseas Chapter Award

Your Chapter with its various activities has been promoting the ICAP brand in the Kingdom for the last four years. In recognition of its tremendous performance, it was awarded the ‘Best Overseas Chapter of ICAP’ at the CFO conference held in Karachi in April 2015. On behalf of the ICAP KSA Chapter, I am extremely thankful to the ICAP especially the OCC for its overwhelming support in all its endeavors. Welcome to New ICAP KSA Chapter Patron-in-Chief

The Management Committee of the Chapter also welcomed the new Ambassador of Pakistan in Saudi Arabia H.E. Manzoor-ul-Haq, by paying him a courtesy visit at his office in March 2015. The Ambassador continues to be the Patron for the Chapter.

Affiliation with SOCPA and PAF (Jeddah) The landmark signing of the MOU with SOCPA in 2011 is helping a great deal pursue the education in Finance, Governance and professional accounting standards/practices in the Kingdom of Saudi Arabia and has opened the doors of opportunities for members. One to one meetings have also taken place between ICAP President (current and past) and the Secretary General of SOCPA; Dr. Ahmad Al-Meghames to discuss ideas of mutual interest and how to further optimize this partnership. Your Chapter has also signed understanding with Pakistan Accountants Forum (PAF) Jeddah to bolster co-operation and harmonization and conducting joint seminars and events for a wider professional community.

ICAP examinations for students in the Kingdom

Your Chapter has been granted approval to host examinations in Jeddah from December 2015 onwards in addition to current examination center in Riyadh. To-date, the initiative of having an overseas examination center in the Kingdom have seen more than 700 students attempting exams and save time and money on travel back to Pakistan. Your Chapter, to inculcate a sense of belonging to the Institute, is also encouraging and appreciating the success of its young members in the Kingdom who pass the Institute examination through local centers. During the year, around 10 candidates qualified who appeared from KSA examination centers.


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Graduate Degree Requirement for Visa Processing

As you are aware, the members and students of ICAP in KSA are facing the visa problem when bringing their families; the new requirement required a minimum graduation qualification for the member/student. Alhamdulillah, we succeeded in convincing the SOCPA that they will issue the SOCPA certification to ICAP members and finalist students as well. Simultaneously, we have also approached ICAP to get the Equivalence recognition from Higher Education Commission for partly qualified members.

ICAP Middle East Careers Portal At the 4th Saudi Pak Accountancy Symposium held in May 2015, the Chapter launched the ‘ICAP Middle East Careers Portal’ for ICAP members and students residing in the Kingdom. It is a smart database that aims to build talent pool of Pakistani Finance Professionals/students (PFP) associated with Institute of Chartered Accountants of Pakistan (ICAP). I believe that the database would serve as a liaison for prospective employers and professional recruiters in finding such professional accountants under one roof. Here, I would like to take this opportunity to thank Mr. Umair Murtaza, Chairman Placement Committee, and his team for such a great effort which would really serve our professionals all along.

Bank Account/Audit

I am pleased to inform you that a near to impossible task of opening a bank account has been successfully accomplished. This has greatly helped us in conducting the financial activities of the Chapter in a more transparent manner. To further enhance the transparency, the Chapter has decided to get its annual accounts audited each year. Separate council seat for overseas members

On Chapter’s recommendation, the ICAP has accepted a proposal to reserve a seat in the Council for overseas members, which represent around 25% of the total membership of ICAP. However, this recommendation is subject to necessary amendments in the CA Ordinance and ICAP Bye-laws. This would allow us to present our point of view in a more constructive manner as being aware of the ground realities.

Expansion in the size of Management Committee

Your Chapter had put before the ICAP a proposal to increase the strength of the management committee by 3 additional members to conduct its activities swiftly and reach out to members. Alhamdulillah, it has been accepted by the ICAP and the next management committee is comprised of 8 members instead of 5. The new management committee has been elected for the term 2015-17 comprising of following members:


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S. No. Member’s Name Reg. No.

1 Mr. Mohammad Iqbal 1550

2 Mr. Mohammad Asif Iqbal 3052

3 Mr. Khurram Amanullah 5213

4 Mr. Mohammad Farhan 4513

5 Mr. Shahid Mahmood 3563

6 Mr. Umair Murtaza 5268

7 Syed Abid Hassan 1755

8 Mr. Kashif Iftikhar 3553

Acknowledgement I would like to acknowledge here the support extended by the members and professionals at large as without that the feats achieved would not have been possible. I would specially like to place on record the un-parallel commitment and dedication of Mr. Ashfaq Bataviya, Joint Secretary ICAP KSA Chapter who has been the torch-bearer at Jeddah and was instrumental in the establishment of ICAP exam center in Jeddah. Ashfaq was really an inspiration and a driving force in coordinating activities with the PAF Jeddah. As he will be no more part of the new management committee, we wish him all the best and look forward to his contribution in other activities of the Chapter. I would also like to thank the members of the Management Committee and various other committees working under the umbrella of the Chapter for the excellent contribution they have been making towards the Chapter activities. I on behalf of the Management Committee record my appreciation for the work done by M/s. Talal Abu-Ghazaleh & Co., in their capacity as the auditors of the Chapter. Farewell to Colleagues – Mr. Habibullah Khan

The Chapter in its family fun day at Al-Khobar recognized the services of one of the most senior members of ICAP, Mr. Habibullah Khan, who retired from his services.


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–Ali Hussain

Our member, Ali Hussain who was the Secretary of CPD Riyadh Committee, has left for Canada for good. The Chapter would like to put on record the contribution made by Ali as one of the most dedicated and active member of the Chapter since inception. A get together was arranged to bid him farewell and was presented the memento. The Chapter wishes them best of luck in their future endeavors.

Conclusion I would like to conclude by praying to Allah the Almighty to help and guide us in all our future endeavors for the wider benefit of the professional fraternity.

Muhammad Iqbal Ibrahim President Riyadh September 30, 2015


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Agenda of 4th Annual General Meeting

The 4th Annual General Meeting of ICAP KSA Chapter will be held on October 08, 2015 at 6:15 p.m. at Hilton Garden Inn Hotel, Riyadh. Agenda The proceedings of the meeting will commence with the recitation from the Holy Quran and will have the following agenda:

1 To confirm draft minutes of the 3rd Annual General Meeting held on August 31,

2014

2 To consider and adopt the 4th Annual Report of the Management Committee

3 To approve of the audited Financial Statements of the Chapter for the year ended June 30, 2015

4 Any other business with the permission of the Chair

Muhammad Asif Iqbal Secretary Riyadh September 30, 2015


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Report of the Management Committee

Structure The ICAP KSA Chapter was formed on August 1, 2011 while the existing Management Committee was elected unopposed for a period of two years commencing from September 1, 2013:

Muhammad Iqbal Ibrahim (Riyadh) President

Shahid Murad (Khobar) Vice President

Muhammad Asif Iqbal (Riyadh) Secretary

Khurram Amanullah (Riyadh) Head of Financial Affairs

Ashfaq Bataviya (Jeddah) Joint Secretary

Management Committee Meetings During the current year, six meetings of the Management Committee were held through teleconference. Most of these meeting were attended by all five members of the Management Committee.


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Working Committees In order to facilitate the Management Committee to carry out its functions as mentioned in the ICAP KSA Chapter Constitution and ICAP Overseas Chapter Guidelines, following working committee have been formed for the year 2014-15:

CPD Committee Riyadh

CPD Committee Eastern Province

CPD Committee Jeddah (Joint with PAF)

Placement Committee

Media and Communications Committee

CPD Committee Riyadh The Committee consists of the following members: 1. Ali Haider – Chairman

2. Muhammad Ali Husain – Secretary 3. Khurram Amanullah - Nominee from MC 4. Aamir Anwar 5. Arslan Azhar 6. Mubashir Shaikh 7. Raeel Rafique

The Committee organized the following seven CPD seminars during the year:

Date Topic Speaker

September 22, 2014 Art of making successful presentation

Fayyaz Mahmood, Training Consultant, SIDF

November 16, 2014 Sukuk- the most rapidly growing and widely accepted Islamic structure

Noman Ansari, Head of Treasury, Saudi Telecom Company

December 15, 2014 IFRS 15 - Revenue from contracts with customers

Usman Ghani Akbani, ICAP Council Member

January 26, 2015 Update on Zakat and Income Tax Regulations in KSA

Mirza Ashraf, Tax Director, EY Riyadh

February 23, 2015 Balanced Score Card – A Tool for Strategy Execution

Mallick Kamran, FCMA

March 18, 2015 IFRS 1-First time adoption of IFRS

Kashif Zafar, Senior Director KPMG

April 19, 2015 Critical Thinking and Logical Reasoning

Dr. Nadeem Bhatti, Training Consultant, SIDF


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CPD Committee Eastern Province The Committee consists of the following members: 1. Nabeel Najam – Chairman 2. Shahid Murad - Nominee from MC 3. Abdul Ghani 4. Tariq Naeem 5. Uzair Ashraf 6. Zeeshan Khurram 7. Faisal Rashid 8. Asim Rafat Khan 9. Umair Murtaza The Committee organized the following four CPD seminars during the year:

Date Topic Speaker

December 11, 2014 IFRS 15 - Revenue from contracts with customers

Usman Ghani Akbani, ICAP Council Member

March 19, 2015 Balanced Score Card – A Tool for Strategy Execution

Mallick Kamran, FCMA

April 23, 2015 Sukuk- the most rapidly growing and widely accepted Islamic structure

Noman Ansari, Head of Treasury, Saudi Telecom Company

August 27, 2015 Update on Saudi Income Tax and Zakat Law - 2015

Mirza Ashraf, Tax Director, EY Riyadh

Joint CPD Programs with Pakistan Accountant Forum (PAF), Jeddah In accordance with MoU signed with PAF to conduct joint seminars and events, a joint committee was formed which consists of four members from both sides: 1. Mazhar Lodhi (PAF-J) – Chairman 2. Mohammed Asif (PAF-J) 3. Muhammad Anis (PAF-J) 4. Ali Adnan Syed (PAF-J) 5. Ashfaq Bataviya (ICAP KSA)- Secretary 6. Saleem Ayub (ICAP KSA) 7. Faraz Inam (ICAP KSA) 8. Asif Riyaz (ICAP KSA)


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The Committee organized the following CPD seminars during the year:

Date Topic Speaker

15 September 2014 Creative Thinking and Logical Reasoning Dr. Nadeem Bhatti from SIDF 17 November 2014 Business Failure – Prediction and

Prevention Mr. Tim Douglas from SIDF

17 December 2014 IFRS 15 – Revenue from Contracts with Customers

Mr. Usman Ghani Akbani from ICAP

22 February 2015 SUKUK – The Most Rapidly Growing Shariah Compliant Mode of Financing

Mr. Muhammad Noman Ansari from STC

18 March 2015 Zakat / Tax Update 2014-15 Mr. Ebrahim Baeshen from KPMG

Placement Committee The Committee consists of the following members: 1. Umair Murtaza – Chairman

2. Shahid Murad - Nominee from MC 3. Ashfaq Bataviya 4. Asim Raffat Khan 5. Kashif Ilyas 6. Faisal Rashid

Main objectives of the Placement Committee are as follows:

Source placement opportunities in KSA and identify suitable candidates for those positions and facilities perspective employer/perspective employee interaction to their mutual benefit

Maintain an up-to-date repository of CV’s of Pakistani accounting/finance fraternity for easy access by prospective employers.

Activities to date by Placement Committee:

Creation and management of database of CV’s.

Actively referred candidates to opportunities identified by members/organizations.

Organized interview calls for a significant number of candidates in various Saudi companies.

Successfully placed number candidates in various Saudi companies.

The Committee is actively working on the project of automation of databank including by creating an ICAP Middle East Job Portal for ICAP members and students in KSA and other GCC countries. The ICAP UAE Chapter has also agreed to support this important project. Through this portal, employees and employers will be able to proactively interact with each other.


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Media and Communications Committee The Media and Communications Committee consists of the following members: 1. Aakif Hasnaat – Chairman 2. Umair Murtaza – Secretary 3. Khurram Amanullah - Nominee

from MC 4. Asher Noor 5. Taha Ali Khan 6. Talib Adeelzeb Iqbal The principle objective of Media and Communication Committee is to service the members, potential members and professional accountants at large by developing and thereafter managing the following:

ICAP KSA Chapter’s website (www.icapksachapter.org)

Presence on social media such as Linkedin (around 300 members), Facebook (around 500 members) etc.

so as to:

communicate with them,

share useful and knowledge resources,

share news and updates,

communicate about upcoming events,

obtain feedback on the ongoing events and technical issues,

share the videos of the seminars held; and

foster networking amongst the members and non-members through social media presence.


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Presenters at CPD Events

Gihad Al Amri, Chairman SOCPA Accounting Committee

chairing session on ‘IFRS 1’ in Riyadh

Usman Ghani Akbani, ICAP Council member presenting on ‘IFRS 15’ in Riyadh

Kashif Zafar, Senior Director, KPMG presenting on ‘IFRS 1’ in Riyadh

Mirza Ashraf, Tax Director, EY presenting on ‘Zakat & Tax’ in Riyadh

Noman Ansari, Group Treasurer, STC presenting on ‘Sukuk’ in Riyadh

Fayyaz Mahmood, Consultant SIDF, presenting on ‘Art of making successful presentation’ in Riyadh


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Dr. Nadeem Bhatti, Consultant SIDF, presenting on ‘Critical Thinking and Logical Analysis’ in Riyadh

Mallick Kamran, FCMA presenting on ‘Balanced Score

Card’ in Riyadh

Usman Ghani Akbani, ICAP Council member presenting on

‘IFRS 15’ in Khobar

Noman Ansari, Group Treasurer, STC presenting on ‘Sukuk’ in Khobar

Mallick Kamran, FCMA presenting on ‘Balanced Score Card’

in Khobar

Group photo of participants of Third Annual General Meeting in Jeddah with Counsel General, Mr. Aftab

Khokhar

Participants during a CPD event in Riyadh


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FOURTH SAUDI- PAK ACCOUNTANCY SYMPOSIUM IN RIYADH

Under the patronage of His Excellency The Minister of Commerce and Industry Saudi Arabia and supported by Saudi Organization for Certified Public Accountants (SOCPA), the Institute of Chartered Accountants of Pakistan (ICAP) KSA Chapter held their 4th Saudi-Pak Accountancy Symposium on 14th May 2015 at Ritz Carlton Hotel, Riyadh. The theme of the event was “Technology – CFO’s New Best Friend”. Over 300 accountancy professionals with a large participation of Pakistani and Saudi nationals as well as select female professionals attended the Symposium. Business leaders, CEO’s and CFO’s of leading corporates, senior partners of audit firms, and members of ICAP KSA chapter and SOCPA were in attendance to further cement the prestige the Symposium continues to attract year on year. Speaking on the occasion, His Excellency, The Ambassador of Pakistan to KSA, Mr. Manzoor ul Haq mentioned that “It is heartening to note that the ICAP KSA Chapter has been recently awarded the Best Overseas Chapter by ICAP Pakistan and is a tribute to its performance and makes me further proud of the Pakistan Embassy’s patronage of ICAP KSA Chapter and its activities”. He also said that “I am confident that the ICAP KSA Chapter through its professional activities and engagement with the finance professionals in KSA would further help solidify the bridges between finance professionals of the two brotherly countries of Saudi Arabia and Pakistan”. Other speakers on the occasion included Mr. Yacoob Suttar (President ICAP) and Mr. Muhammad Iqbal (President ICAP KSA Chapter). Mr. Mutlaq Al-Morished, CEO of Tasnee, delivered a very interesting keynote address after H.E. Dr. Tawfiq bin Fawzan Al Rabiah’s Chief Guest address, which was read out by Dr. Ahmad Al-Meghames (Secretary General of SOCPA). An innovative addition to this year’s agenda were the lightning talk sessions in which the presentations made by Mr. Abdulmohsen Al-Fares (CEO Alinma Bank) and Mr. Ahmar Azam (CFO Leejam) were extremely well received by the audience. This was followed up with a panel discussion on the topic of IFRS transition in KSA as moderated by Muhammad Asif Iqbal, Director Standards SOCPA and panelists included Mr. Kashif Rana, CFO ACWA Power, Mr. Furqanullah Khan, Senior Director, KPMG, Mr. Inayatullah Qureshi, MENA IFRS Conversion Leader, EY, Mr. Gavin Leake, Senior Director, Deloitte and Mr. Sohail Bhatti, Director, PWC. The key takeaway from the Symposium was well articulated in the video address of Ms. Olivia Kirtley, President IFAC, that Technology is not an IT function anymore; it truly is a global financial business function and it continues to broaden the role of the CFO’s across organizations and showcase our leadership capabilities. In continuing with its tradition, ICAP KSA Chapter also announced the recipients of ‘Most Valued Contribution to the Profession’ Awards. In recognition of their exceptional services, awards were given to H.E. Dr. Tawfiq bin Fawzan Al Rabiah (Minister of Commerce & Industry), H.E. Hamad S. Al-Sayari (former Governor SAMA), Mr. Noor Abid (Board member AAOIFI) and Mr. Mudassir Zubairi (Senior Partner, PwC Bahrain) for their contribution to the Profession of Accountancy. The event was also graced by the two Vice Presidents of ICAP, Syed Najmul Hussain and Mr. Mohammad Maqbool. The Symposium ended with a vote of thanks by Mr. Shahid Murad, Vice President ICAP KSA Chapter followed by a lavish dinner.


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From L to R: Muhammad Iqbal, Mutlaq Al-Morished, H.E. Manzoor ul Haq, Dr. Ahmad Al-Meghames, Yacoob Suttar and

Asif Iqbal

His Excellency, The Ambassador of Pakistan to KSA, Mr.

Manzoor ul Haq

Mr. Yacoob Suttar (President ICAP)

Mr. Mutlaq Al-Morished (CEO of Tasnee)

Dr. Ahmad Al-Meghames (Secretary General of SOCPA)


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Mr. Muhammad Iqbal (President ICAP KSA Chapter)

Muhammad Asif Iqbal (Director Standards SOCPA and

Secretary ICAP KSA Chapter)

Dr. Ahmad Al-Maghames receiving memento from HE

Mr. Manzoor ul Haq

Mr. AbdulMohsen Al-Fares receiving memento from HE

Mr. Manzoor ul Haq

Group photo of ICAP KSA Chapter Core Committee with Mr. Yacoob Suttar (President ICAP) and Syed Najmul Hussain &

Mr. Mohammad Maqbool (Vice Presidents of ICAP)


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Mr. AbdulMohsen Al-Fares (CEO Alinma Bank)

Mr. Ahmar Azam (CFO Leejam)

From R to L: Mr. Furqanullah Khan (Senior Director KPMG), Mr. Sohail Bhatti (Director, PWC), Mr. Kashif Rana (CFO

ACWA Power), Mr. Inayatullah Qureshi (MENA IFRS Conversion Leader EY), Mr. Gavin Leake (Senior Director Deloitte) and Muhammad Asif Iqbal, Director Standards SOCPA


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Audience at the Ritz Carlton Hotel Auditorium

‘Most Valued Contribution to the Profession’ Award to son of H.E. Hamad S. Al-Sayari (former Governor SAMA)

‘Most Valued Contribution to the Profession’ Award to

Mr. Mudassir Zubairi (Senior Partner, PwC Bahrain)

‘Most Valued Contribution to the Profession’ Award to

Mr. Noor Abid (Board member AAOIFI)


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ICAP KSA Chapter's 1st Family Fun Day on December 19th, 2014 in Al-Khobar

“ICAP KSA Chapter's 1st Family Fun Day in Eastern Province” was held on December 19, 2014 at Half Moon Beach, Al Khobar. The event had exciting and engaging activities for the kids hosted by a professional entertainer hired especially for the event, delightful socializing and networking opportunities for adults, sumptuous snacks, wonderful live BBQ buffet dinner, ample gifts and giveaways to families throughout the event and a small token of appreciation to a senior ICAP member.

The event was held at a dedicated beach resort, which had beautifully decorated banquet halls, which comfortably hosted the 200 participants, a center stage area where the professional entertainer hosted kid activities and ample outdoor spaces to accommodate the bouncing castle for excited kids. Almost all kids were handed out special gifts meant to put a smile across their faces alongside an unlimited supply of cotton candy and popcorn all evening.

The mood was festive and jovial with excitement erupting in applause every time a gift was handed over from continuous lucky draws made throughout the evening. Special gifts were also presented to the oldest and youngest ICAP members attending the family event, most recently married member and parents of kid born most recently. The attendees helped themselves to snack stations serving delightful snacks until dinner. A scrumptious lavish buffet dinner with live BBQ aptly complemented the cool weather and cheerful dinner table conversations. Towards the end a special gift was also given to a couple with both holding ICAP memberships and ICAP member who was amongst the top 5 CPD earners in the month of November 2014. The event was enjoyed by everyone and participants requested that ICAP KSA chapter should continue carrying out such family events at least on an annual basis. The event was hosted by Vice President of the ICAP KSA Chapter Shahid Murad and his team in the Eastern Province. The event was graced by ICAP KSA Chapter President, Muhammad Iqbal Ibrahim and Head of Financial Affairs, Khurram Amanullah, who came over from Riyadh with their families to attend the event. ICAP KSA Chapter is also thankful to the organizing Committee comprising of Nabeel Najam, Umair Murtaza, Uzair Ashraf, Faisal Rashid, Zeeshan Khurram and Asim Raffat Khan for their efforts to make this event a ground breaking success in midst of the year end office commitments.


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“Meet & Greet” Syed Masoud Ali Naqvi and Mr. Ashfaq Tola at Jeddah

In order to felicitate Syed Masoud Ali Naqvi and Mr. Ashfaq Tola on their respective appointments as Chairman and Member of Pakistan Tax Reforms Commission, the ICAP KSA Chapter and Pakistan Accountants Forum (PAF) Jeddah jointly arranged a get together on Wednesday, November 26, 2014 at a 5 star hotel in Jeddah.

On this occasion, Syed Masoud Ali Naqvi delivered a presentation on “Recent Trends in Corporate Governance and Regional Economic Challenges vis-a-vis Role of Professional Accountants”. Another presentation on “Hybrid Sales Tax System for avoidance of Frauds” was given by Mr. Ashfaq Tola.

The event was well attended by a large number of participants, including ICAP and PAF members and other finance professionals.

Mohammad Iqbal, President, ICAP KSA Chapter presented the opening remarks and appreciated the contribution of Mr. Naqvi and Mr. Tola for the profession and Pakistan. Mr. Mazhar ul Islam Lodhi, Past President PAF, concluded the session with a vote of thanks to the guest speaker and all participants. They also presented memento to the guest speakers. The presentation was followed by a scrumptious dinner.

ICAP Final Examination Center in Riyadh

The ICAP KSA Chapter continues to provide its support in organizing the ICAP Final examinations at Riyadh since June 2012 and the last exams were held in June 2015. From December 2015, ICAP on the Chapter’s suggestion, has agreed to open another exam center at Jeddah.

Acknowledgement The Management Committee deeply acknowledges the support provided by the following sponsors in making the Fourth Annual Saudi-Pak Accountancy Symposium held on May 14, 2015, in Riyadh, a real success:

ACWA Power (Main Sponsor) PWC (Co-Sponsor)

Ernst & Young (Co-Sponsor) Al-Marai (Co-Sponsor)

KPMG Al Fozan & Al Sadhan (Co-Sponsor) Saudi Orix Leasing (Co-Sponsor)

Deloitte (Co-Sponsor) RDB El-Seif (Co-Sponsor)


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Mr. Kashif Rana receiving shield on behalf of ACWA Power, Main Sponsor

Mr. Fahad Al Toaimi receiving shield on behalf of EY, Co-sponsor

Mr. Ehsan Makhdoum receiving shield on behalf of Deloitte, Co-sponsor

Mr. Amin Qureshi receiving shield on behalf of PWC, Co-sponsor

Mr. Kashif Zafar receiving shield on behalf of KPMG, Co-sponsor

Mr. Zubair Baloch receiving shield on behalf of Al-Marai, Co-sponsor

Mr. Mairaj Sabir receiving shield on behalf of RDB El-Seif, Co-sponsor

Mr. Shahid Riazi receiving shield on behalf of Saudi Orix Leasing, Co-sponsor


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The Management Committee would also like to place on record its sincere gratitude to all members in general and those who served in various committees of the Chapter in particular, for their support, dedication and held they extended in the activities of the Chapter. Here, the Management Committee would specially like to mention the continued contribution made by the following members and friends, without which the successful organization of activities would not have been possible:

Amin Qureshi Abdul Hameed Suriya Asher Noor Sohail Nini

Atif Rahim Alvi Raeel Rafiq Furqanullah Khan Ali Husain Kashif Zafar Umair Murtaza Muhammad Farhan Zahoor Amanullah Safwat Khalid Ali Haider Arslan Azhar Aakif Hasnaat Khan

The Management Committee would not like to forget the contributions made by all the guest speakers during the CPD seminars in Riyadh, Al-Khobar and Jeddah and would look forward for their participation in the future events. Finally, all these activities would not have been possible without the support of ICAP Overseas Coordination Committee (OCC), specially its Chairman, Mr. Hidayat Ali, ICAP Council and Management for which we are highly thankful. The Management Committee is also thankful to Mr. Yacoob Suttar, President ICAP, Mr. Mohammad Maqbool, Vice President (N), and Syed Najmul Hussain, Vice President (S), for talking out time from their extremely busy schedule to visit Riyadh on the occasion of Fourth Annual Saudi-Pak Accountancy Symposium in May 2015.

Future Plans

5th Saudi-Pak Annual Accountancy Symposium in 2016

Family and regular CPD events in Riyadh, Jeddah and Al-Khobar

Technical Advisory Committee in consultation with SOCPA On behalf of the Management Committee Muhammad Asif Iqbal Secretary Riyadh September 30, 2015


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ICAP KSA Chapter Kingdom of Saudi Arabia

Auditors’ Report

On Special Purpose Financial Statements For the Year Ended 30 June 2015


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AUDIT REPORT The Management Committee Institute of Chartered Accountants of Pakistan Kingdom of Saudi Arabia Chapter (ICAP-KSA Chapter) Kingdom of Saudi Arabia

Auditors’ Report on Special Purpose Financial Statements Scope of Audit:

We have audited the accompanying special purpose statement of financial position of Institute of Chartered Accountants of Pakistan – Kingdom of Saudi Arabia Chapter (ICAP-KSA Chapter) – as of 30 June 2015, and the related statement of income, cash flow for the year then ended, together with the accompanying notes from (1) to (7) which form an integral part of these financial statements. These financial statements have been prepared in accordance with the requirements of the constitution of Institute of Chartered Accountants of Pakistan, and submitted to us along with all information requested. These financial statements are the responsibility of the management, our responsibility is to express our opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, which included examination of the accounting records and other audit procedures as we deemed necessary to enable us in establishing a reasonable degree of assurance for expressing our opinion on the financial statements. Basis of Preparation and Presentation of Financial Statements: These special purpose financial statement are prepared in accordance with the requirements of the chapter constitution as mentioned in note (2/a). Unqualified Opinion: In our opinion, the financial statements referred to above taken as a whole present fairly the financial position of Institute of Chartered Accountants of Pakistan – Kingdom of Saudi Arabia Chapter (ICAP-KSA Chapter) – as of 30 June 2015, and the results of its operations, and its cash flow for the year then ended, in light of the presentation and disclosure of information contained in the financial statements and in conformity with accounting polices mentioned in Note (2). For Talal Abu-Ghazaleh & Co.

Waleed A. Bamarouf

Certified Public Accountant

License No. 408

17 Dul Hajjah 1436 H.

30 September 2015 G.


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ICAP KSA Chapter

Kingdom of Saudi Arabia

SPECIAL PURPOSE STATEMENT OF FINANCIAL POSITION

AS OF 30 JUNE 2015 EXHIBIT A

Note (Unaudited)

2015 2014

SR. SR.

Assets

Cash and cash equivalents 185,736 --

Receivable from office bearers (4) -- 128,959

Receivable from sponsors 25,000 --

Total Assets 210,736 128,959

Liabilities

Payable to office bearers (4) (2,271) --

Payable to ICAP for CA Talent Program (6) (40,000) --

Total Liabilities (42,271) --

Accumulated Surplus – Exhibit B 168,465 128,959

The Accompanying Notes from (1) to (7) Constitute an Integral Part of These Financial Statements

President Head of Financial Affairs


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ICAP KSA CHAPTER

KINGDOM OF SAUDI ARABIA

SPECIAL PURPOSE STATEMENT OF INCOME

FOR THE YEAR ENDED 30 JUNE 2015 EXHIBIT B

Note (Unaudited)

2015 2014

SR. SR.

Income

Registration fee and sponsorship (5) 364,268 314,769

Total Income 364,268 314,769

Expenditure

CPD, Family Event, Annual Symposium related expenses (5) (250,755) (275,467)

Website / Job portal development (23,861) (632)

Annual General Meeting (3,748) (1,480)

Others (6,398) (2,304)

Total Expenditures (284,762) (279,883)

Contribution to ICAP for CA Talent program (6) (40,000) --

Net surplus for the year 39,506 34,886

Surplus brought forward from previous year 128,959 94,073

Surplus carried forward to statement of financial position – Exhibit A 168,465 128,959




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ICAP KSA CHAPTER


SPECIAL PURPOSE STATEMENT OF CASH FLOW

FOR THE YEAR ENDED 30 JUNE 2015 EXHIBIT C

(Unaudited)

2015 2014

SR. SR.

CASH FLOW FROM OPERATING ACTIVITIES

Surplus for the year 39,506 34,886

CHANGES IN OPERATING ASSETS AND LIABILITIES

Receivable from office bearers 131,230 (34,886)

Receivable from sponsors (25,000) --

Payable for CA Talent Program 40,000 --

Net cash from operating activities 146,230 (34,886)

Net increase in cash and cash equivalents 185,736 --

Cash and cash equivalents, beginning of the period -- --

Cash and cash equivalents, end of the period – Exhibit A 185,736 --




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ICAP KSA CHAPTER


NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

1- Status and Functions of the Chapter:

ICAP KSA Chapter is a is chapter of Institute of Chartered Accountants of Pakistan (“ICAP”), which has been established on 01 August 2011 under the ICAP Guidelines for Overseas Chapters and under the Memorandum of Understanding signed by ICAP with the Saudi Organization for Certified Public Accountants (SOCPA). The Ambassador of Pakistan in Saudi Arabia is the lifetime Patron-in-Chief of the ICAP KSA Chapter. Main function of the Chapter is to organize / conduct CPD programmes and to provide facilities for interaction among members by arranging regular meetings for the acquisition and dissemination of useful information. It may make representation to the ICAP Council on matters of professional interest in KSA and to offer suggestions for raising the standard and status of the profession. It may also assist ICAP in locating suitable venues for the examination centers and carry out such other functions as may be entrusted by the Institute, from time to time.

2- Significant Accounting Policies:

a) Basis of preparation of financial statements:

These special purpose financial statements are prepared in accordance with the requirements of the Chapter’s Constitution.

b) Revenue recognition:

Contribution from members on account of participation in CPD and other events is recognized on receipt basis.

3- Related Party Transactions:

Related party consists of ICAP and the Management Committee of the ICAP KSA Chapter. At year-end, there are no outstanding balances with any related party, except for the balances as disclosed under note – 4. Further, the Management Committee members are not paid any compensation for performing their functions.


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4- Receivable / (Payable) from / to Office Bearers:

The details of this item are as follows:

(Unaudited) 2015 2014 SR. SR. Mohammed Iqbal – President -- 40,000 Khurram Amanullah – Head of Financial Affairs (1,971) 53,502 Muhammad Asif Iqbal – Secretary -- 1,762 Shahid Murad – Vice President -- 15,535 Ashfaq Batavia – Joint Secretary (300) 16,160 Ali Haider – Chairman CPD Committee, Riyadh -- 2,000

Total (2,271) 128,959

5- Event Wise Break-Up of Revenue and Expenses:

The details of this item are as follows:

2015

Activities Receipts Expenses Net

SR. SR. SR

CPD Activities: 76,668 95,331 (18,663)

Family Event:

- Registration fees 21,440 33,544 (12,104)

- Sponsorship -- -- --

Annual Symposium:


- Sponsorship 225,000 -- 225,000

Total 364,268 250,755 113,513


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(Unaudited)

2014

Activities Receipts Expenses Net

SR. SR. SR

CPD Activities: 68,819 68,406 413

Family Event:


- Sponsorship 20,000 -- 20,000

Annual Symposium:


- Sponsorship 155,000 -- 155,000

Total 314,769 275,467 39,302

6- Contribution to ICAP for CA Talent Program:

ICAP launched CA-Talent program in 2013 with a vision to attract academic high achievers from underprivileged backgrounds into the folds of CA. It is a fully funded program that selects, grooms and prepares talented students from the less privileged backgrounds of Baluchistan, Punjab, Sindh, Khyber Pakhtunkhawa, FATA, Gilgi Baltistan and Azad Kashmir. With this in background, the Management Committee decided to sponsor one student for full 5 year period by contributing SR.40,000 (equivalent to around PKR.1,100,000).


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7- Authorization of Financial Statements:

These special purpose financial statements were approved by the Management Committee on 17 Dul Hajjah 1436H. corresponding to 30 September 2015G.

President Head of Financial

Affairs

icap ksa chapter FOURTH annual report 2015

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