Rules & Regulations Related to such Statements would be Strictly Applied
MCI would like to remind all the concerned companies and institutions to submit their financial statements in "qawaem" system urgently, before 19/01/1437 AH corresponding to 01/11/2015 AD, so as to avoid stopping their Commercial Registrations and imposing the penalties contained in the corporate system in the absence of their commitment to submit the financial statements in "qawaem" system, and the delay over the specified period of six months from the end of the fiscal year of the company or institution.
Notably, the submission process may be done through the certified accounting firms. A company or an institution may enquire about the status of its financial statements input in the Ministry by linking to the website: qawaem.sa
MCI would like to assert that since the launch of “Qawaem” program, early this year and up till now, the submission process is growing continuously, as the number of financial statements submitted in the system has reached more than 13 thousand statements.
It is worth mentioning that “qawaem” program is one of the Ministry`s initiatives, in cooperation with the Saudi Organization for Certified Public Accountants and the Department of Zakat and income, in order to convert the paper financial statements to electronic, and to be inputted automatically. This would support the credibility and transparency of the financial statements with the beneficiaries, in addition to providing the requested information to the concerned authorities, such as the Department of Zakat and Income and others, with high accuracy and speed, also providing financial and economic data base, supporting the national database.
The Ministry draws the attention that the supervisory role of "qawaem" system is represented in following-up the corporate governance indicators by the General Administration of companies, such as the level of accumulated losses and the proportion of the regular carry-over of the reserve of the annual profits and the company's commitment to MCI Rules and Regulations, of which is the submission of the statements within the specified period and other commitments. In addition, “qawaem" system would help in reducing fraud in the financial statements through adopting the input electronically by the certified accounting office.
This program also includes linking the financial statements of companies and institutions with (ISIC) International Standard Industrial Classification, adopted by the United Nations, which will enable the financial analysis of economic sectors and activities of various kinds, as well as studying and monitoring their performance indicators.
MCI ensures the confidentiality and security of the companies` financial statements in “qawaem” program, which is characterized by the existence of Electronic Control System to follow up all the activities, and secure the financial information of the institutions. MCI also confirms that no party has the right to review any financial statement, unless getting an official consent from the owner of such company.