Audit Opinion Analysis

Going concern opinion identified in auditor report.

Going concern opinion identified in auditor report.

Going concern opinion identified in auditor report.

Going concern opinion identified in auditor report.

The auditor qualified the opinion on the 2022 annual financial statements due to non-compliance with IFRS 36 (Impairment of Assets). The company did not perform goodwill impairment testing due to high financial costs. Additionally, the company is in the process of capital restructuring and extending contracts with the Greater Amman Municipality, which are fundamental to the goodwill impairment study. As these procedures were not finalized by year-end 2022, the impairment testing has been deferred and will be completed during the current year after the capital restructuring and contract extensions are finalized.

Qualified opinion due to auditors' inability to obtain financial statements and supporting information for Al-Oula Finance Company (approximately 11 million JOD of the 45 million JOD in associate company investments). As a result, auditors could not determine whether necessary adjustments were required to the investment account and related share of profits.

Qualified opinion due to two matters: (1) non-depreciation of property and equipment contrary to IAS 16 standard due to operational shutdown from pandemic; (2) management's decision not to record additional provisions for doubtful debts for 2020, with management asserting receivables are good quality despite pandemic conditions

Qualified opinion with two reservations: (1) Goodwill impairment test to be conducted by specialized entity in H2 2026; (2) Depreciation rates justified by reduced operational capacity in 2025 relative to full production capacity

Qualified opinion due to: (1) inability to observe cash inventory counting as auditor was not notified despite management's inventory and signed record; (2) absence of lawyer confirmations regarding pending litigation against the company, though company provided case details to auditor

Qualified opinion related to Al-Baha Investments Company (subsidiary). The auditor could not obtain sufficient evidence regarding the valuation of this investment due to ongoing litigation in UAE courts. A UAE court issued a preliminary ruling on 2021/01/07 ordering the referral of the case to liquidation. The company's legal counsel indicates Al-Baha's legal position is strong and collection of claims is contingent on the sale of the project and distribution of proceeds to creditors.

Qualified opinion with two reservations: (1) Lack of impairment testing for investments in associate companies due to late request from auditor; (2) IFRS 16 application concern regarding short-term lease contracts that were recorded without proper discussion with the company

Qualified opinion due to unregistered lands and real estate properties held under irrevocable powers of attorney. The company has received written confirmations of ownership but legal registration in the company's name has not been completed. A court attachment order related to litigation with Al-Bankers for Mediation and Financial Investments restricts current efforts to transfer ownership. The audit committee and board have recommended corrective action, and the board has decided not to register new properties until the legal matter is resolved and conditions improve.

Qualified opinion with three audit qualifications: (1) Absence of allowance for doubtful debts on receivables of JD 458,090; (2) Going-concern doubts regarding subsidiary Mazaya Payment Investment Company which has had no operational activity and no future plans for operations, indicating uncertainty about ability to continue operations in both short and long term; (3) Impairment testing not performed on intangible assets (prepaid card systems and software) valued at JD 1,771,000

Qualified opinion due to three matters: (1) Non-current assets held for sale from Munya Company liquidation with balances from April 2016; (2) Investment in associate accounted using equity method based on delayed audited financial statements; (3) Inability to assess fair value changes in Saraya Aqaba Company investment due to non-provision of 2025 financial statements, though 2024 impairment was conservatively recorded.

Qualified opinion regarding goodwill amortization. The company's board of directors decided on 09/05/2018 to write off (extinguish) goodwill over a 5-year period, which is a matter of qualification in the auditor's report for 2020.

Qualified opinion on comparative financial statements due to the phased implementation of IFRS 9 Financial Instruments provision for expected credit losses. The company applied the standard incrementally over several years due to regulatory exemption from full IFRS 9 adoption, with the provision being treated as an operating expense recoverable through electricity tariffs. This resulted in a retrospective adjustment in 2024 affecting prior year comparatives under IAS 8.

Qualified opinion due to scope limitation: Auditors unable to obtain audited financial statements from the Ukrainian subsidiary because it is located in a separatist region (Donetsk) where external audit is impossible due to ongoing war. The Ukrainian subsidiary represents approximately 99% of consolidated assets. Auditors could not perform alternative procedures to verify the fair value of these assets. Consolidated statements were prepared based on management-provided statements from the Amman headquarters rather than independently audited subsidiary financials.

Qualified opinion with two reservations: (1) Iron factory machinery was not depreciated in 2024 because equipment was not operational due to lack of raw materials; (2) Financing costs for plastic factory machinery and equipment were fully capitalized in 2023 rather than expensed

Qualified opinion due to: (1) property revaluation of subsidiary at significantly lower fair value (12.6 million dinars vs. 34 million book value) by creditor bank; (2) precautionary attachments on company assets by two banks; (3) financing costs for both banks lacking supporting documentation and not recorded in books; (4) valuation performed by single bank appraiser rather than independent qualified experts. Company plans to obtain independent specialist valuations and resolve bank disputes pending capital increase completion.

Qualified opinion regarding related party receivables (Note 10) and the application of International Standard 9 for expected credit losses. The company confirms that related party receivables are continuously reviewed and an appropriate expected credit loss provision has been established based on agreed settlement terms during 2024.

Qualified opinion due to two main issues: (1) auditor-required increase in doubtful debt provision of JD 2,580,925 to address COVID-19 related unpaid receivables, and (2) scope limitation regarding goodwill impairment testing due to insufficient time to prepare required five-year financial projections and cash flow analysis

The auditor qualified the opinion on the 2020 financial statements because the company did not record an additional provision for checks under collection. The company believes it has made sufficient provisions for doubtful debts and recorded an additional amount of 1,417,347 JOD during 2020 per IAS 9, bringing the total provision for doubtful receivables to 2,899,695 JOD. The auditor removed the qualification from the Q1 2021 financial statements.

Qualified opinion due to financial assets without market prices amounting to 160,665 dinars. These unlisted securities have no available market values. Subsequently, the company recorded an impairment provision for the entire amount on 8/1/2026.

Qualified opinion regarding the provision for expected recoverable claims (salvage/return) valued at JD 1.2 million. The auditor noted difficulty in determining expected recovery rates from this provision. However, the company argues that based on actual collection rates which are good and continuously improving, the provision is appropriately stated in accordance with mandatory insurance regulation No. 12 of 2010.

Qualified opinion with reservations on two items: (1) Depreciation item due to decreased machinery operation resulting from sharp decline in sales; Board approved 75% depreciation of the allowable rate. (2) Accounts receivable item due to new regulations and pending court cases for collection recovery.

Two departures from IFRS: (a) Non-application of IAS 29 hyperinflationary accounting for Sudan subsidiaries—impact cannot be quantified; (b) Use of USD instead of IQD as functional currency for Iraq operations from Dec 2020 to Dec 2023—impact on comparative and current year balances cannot be determined.

Qualified opinion based on: (1) Other revenues of JD 810,000 representing accrued expenses previously recorded in prior years but reversed without sufficient audit evidence; (2) Failure to record provisions for stamp fees and penalties under an agreement with the Public Housing and Urban Development Corporation, as the matter remains under discussion with authorities without final resolution.

Three main qualifications: (1) No fair value assessment for UK-held investments as of year-end 2024 to check for impairment; (2) Syrian land revalued in June 2025 after year-end; (3) Financial statements for associated company in Congo not received by report date. Company is obtaining updated valuations during 2026 and completing outstanding documentation from relevant authorities.

Qualified opinion - specific grounds for qualification not detailed in this filing document

Qualified opinion due to significant delays in project implementation. The auditor's reservation was based on the lengthy period that had passed since the contract was signed without the project beginning. The company disputes the auditor's characterization, attributing delays to justified reasons including required changes to project components and necessary additional approvals.

Qualified opinion due to a reservation on 1,450,000 dinars related to Fayez Al-Faouri criminal case (No. 200/2013). The company did not take a provision for this amount as it is subject to litigation with a ruling rendered.

The auditor issued a qualified opinion (تحفظ). The company agrees with the qualification noted in the auditor's report and has no objections.

Qualified opinion related to a major distributor customer who received an insolvency judgment from the court. The company has appealed this judgment. Significant receivable is outstanding with security in the form of first-degree real estate mortgages. Expert assessment indicates customer assets exceed liabilities, suggesting positive recovery indicators.

Qualified opinion due to inability to obtain direct confirmation from the bank for the company's only bank account. The account had been dormant with no cash flows for an extended period. The bank reactivated the account in March 2021 and subsequently provided confirmation for the Q1 2021 balance, resulting in an unqualified opinion on the Q1 2021 interim financial statements.

Qualified opinion due to non-adoption of IAS 29 (Financial Reporting in Hyperinflationary Economies) for subsidiaries in the Republic of Sudan. The Group excluded effects of IAS 29 and did not perform required hyperinflationary accounting calculations, making it impossible to quantify the impact of this departure.