Board of Directors' Report to the General Assembly on Company Performance 2010 and Future Plans
The Board of Directors is pleased to present, hereunder, its tenth annual report on Company's activities, performance, future business plans, financial results for the financial year 2010.
On behalf of Salam International Board of directors , it is my pleasure to extend warmest welcome to you, to the delegates from the Ministry of Business and Trade - representatives of the Department of Companies Control as well as to Messer KPMG the company’s external auditors.
I wish also to thank you for your participation to this assembly meeting where I will present to you the annual report for the financial year 2010 on Company’s activities and business performance together with our future plans
1. Business Activities
The Company has pursued, over the course of the year, a conservative policy with regards to the financial practices and the risk management approach as well as to its major investment orientations duly elucidated during last year General Assembly meeting, which aimed at the pertinent pick of investment opportunities that complement the Companies types of activities and those of its subsidiaries. These orientations also mentioned favorably seeking growth in new horizons in order to expand the business and geographical diversification.
The Company succeeded in maintaining its operating activities levels during 2010 by the means of sound cash flow management and forecasting practices, efficient exploitation of available production means and achievement betterment. Notwithstanding the aftermath of the global financial crisis, the Company undertook against all odds to preserve its skilled technical workforce and enable its human resources to achieve quantitative and qualitative performances.
2. Future Plans
The Company’s Future Plans reckon on seizing the opportunities emerging from three strategic cornerstones as follows:
- The growth plan in connection with Qatar National Vision 2030
- The unprecedently expected GDP growth to be stemmed from Qatar Mondial 2022
- Bringing into reality the vision of HH the Emir of Qatar with regards to reaching 77 million tons production of LNG per year
Within the framework of its activities and through its available means and capabilities, the Company, as an active and efficient member of the private sector, will spare no efforts in its attempts to make Qatar Vision 2030 come true with the aim at developing a competitive economy with diversified operations and income resources and which is capable of meeting the State Socio-economic requirements in terms of goods, services and standard of living.
On the other hand the Company will capitalize on the unique growth opportunities offered by the forthcoming business flourish and international sports events headed by the football world cup 2022.with this respect it will participate into the implementation of the strategic mega-projects concerning the modernization of the infrastructure and the urban scenery in Qatar for the ten years to come, not to mention the company’s primordial role to play in the maximization of Qatar LNG production.
In conformity with its institutional performance legacy, the Company undertakes willingly to carry on with the implementation of the corporate governance policy and the assimilation of its discipline’s processes in accordance with its own purposes and needs, in application of the Governance Code issued by Qatar Financial Markets Authority.
Moreover the Board of Directors would like to reconfirm his dynamic commitment to the Company’s Corporate Social responsibility program and hence carry on disbursing funds to the charitable activities and social services during 2011.
It is noteworthy that, in 2010, we have allocated 2.5% of the Company’s net profits to the above-mentioned purpose as per the law (13)/2008.
3. Disclosure on a court case
Certain shareholder filed a case against the Company to call off the two mergers that took place in 2002 and 2005 successively. A preliminary court’s verdict was issued, subject to an Appeal, stipulating the abrogation of the mergers executive procedures with no effect on The General Assembly resolutions.
Worth to mention that the said plaintiff was not holding any Company shares prior to any of both mergers dates. He did purchase 1000 shareson06/01/2010. Worth mentioning also that, following this transaction which provided him with inside information and data pertaining to SIIL, he stood as the attorney of another shareholder detaining 100 shares in the Company and against whom the company had instituted a process in Law.
Standing on solid ground and provided with strong lawful reasons, the company have appealed the preliminary court’s verdict within the specified period of time and sought to freeze the court decision till the appeal court final deliberating.
With above respect, SIIL will as usually take all necessary legal measures to protect the interests of the Company and its shareholders.
4. Financial Results 2010
The consolidated financial statements for the fiscal year 2010 as of 31 of December 2010 showed a net profit of around QR Million 141.2, out of which QR Million 140.3 are SIIL Shareholders’ equity rights. These profits are computed after deduction of devaluation provision in relation with certain Company’s investments in the course of 2010, as well as provision for the Company’s management bonuses and Board members incentives.
As an inference the Company’s earnings per share have reached QR 1.42.
In line with our conservative accounting practices, all the Company’s real estate actual investments have been reflected in the consolidated financial chapters at their purchase value, irrespective of the substantial excess over their book value. The same has been contrived to avoid capital losses caused by eventual assets devaluation and which would pull down the registered bottom line. Explanatory notes are provided in addendum to the financial statements.
Referring to the above subsequent financial outcome, the Board of Directors puts forward and recommends your esteemed Assembly to approve 15% of the paid up capital as profit distribution for the year 2010, to be splitted as follows:
- 10% Cash dividends
- 5% Bonus shares
Following a capitalization of parts of profits generated in previous years.
On your behalf, on behalf of the Board of Directors and personally, we wish to express our warmest gratitude to HH. The Emir Sheikh Hamad Bin Khalifa Al Thani, HH. The Heir Apparent, Sheikh Tamim Bin al Thani and HH. The Prime Minister Sheikh Hamad Bin Jassim Al Thani for their permanent support to the development of our beloved country, Qatar.
My sincere thanks to H.E the Minister of Business and trade, to the undersecretary and all the staff at the Department of Companies Control for their creative efforts to support the country’s growth and prosperity.
Issa Abdul Salam Abu Issa
Note: This text has been translated from its original Arabic equivalent, which remains the official version