Page 30 - JTC-Annual Report-2025-Eng

Independence and Objectivity of the External Auditor

The external auditor is appointed based on the recommendation of the Board of Directors and the
approval of the General Assembly. The Company ensures the full independence and objectivity
of the external auditor, as the auditor does not provide any other services that may affect its
independence or impartiality.

The Audit Committee also reviews and discusses the interim and annual financial statements
with the external auditor prior to submitting them to the Board of Directors for approval.

The Fifth Rule: Sound Systems of Risk Management and Internal Controls

The Company is committed to applying an integrated risk management and internal control
framework that is commensurate with the nature and scale of its activities. This framework aims
to safeguard the Company’s assets, ensure the integrity and accuracy of financial reporting,
enhance the efficiency of operational processes, and ensure compliance with applicable laws
and regulations.

The Company has engaged an independent and specialized external entity to undertake risk
management and compliance functions. This entity is responsible for identifying, measuring,
assessing, and monitoring various types of risks to which the Company may be exposed and
submits its periodic reports to the Risk Management Committee. The entity enjoys the necessary
professional independence and authority to perform its duties without any conflict of interest.

In addition, the Company’s approved organizational structure includes an independent Internal
Audit Department that enjoys functional independence and reports to the Audit Committee.
The Internal Audit Department evaluates the efficiency and effectiveness of internal control
systems, verifies compliance with approved policies and procedures, and submits its reports and
recommendations to the Audit Committee and the Board of Directors.

The Company relies on internal control systems covering all of its activities, based on principles
including segregation of duties, clear definition of authorities and responsibilities, dual
authorization, and independent review and verification. These measures mitigate operational
and financial risks and enhance the robustness of the internal control environment.

The Board of Directors, through its committees, oversees and periodically reviews the effectiveness
and adequacy of the risk management and internal control framework and takes the necessary
improvement measures whenever required.

The Sixth Rule: Promote Ethical Standards and Responsible Conduct

Overview of the charter which consists of the standards of the ethical values and code of
conduct

The Company adopts a Code of Conduct and Business Ethics approved by the Board of Directors,
which aims to entrench a culture of integrity, transparency, and accountability, and to define the
standards and principles governing the conduct of members of the Board of Directors, executive
management, and all employees of the Company.

The Code includes the obligation of all concerned parties to comply with applicable laws,
regulations, instructions, and professional standards, to act in a manner that serves the interests
of the Company, its shareholders, and stakeholders, and to refrain from using their positions or
the Company’s assets or resources to obtain direct or indirect personal benefits.

29 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.