Commerce Ministry stresses timely financial filing to boost business efficiency, investor confidence
RIYADH — The Ministry of Commerce emphasized the importance of commitment on the part of companies to prepare and file their financial statements. It noted that this would be instrumental in producing positive impact on enhancing administrative performance, increasing transparency, strengthening the confidence of investors, shareholders, creditors, and banks, apart from enabling regulatory bodies…
The Commerce Ministry in Riyadh has highlighted the significance of businesses preparing and submitting their financial statements in a timely manner. This practice is believed to positively impact administrative performance, transparency, investor and stakeholder confidence, and the effectiveness of regulatory bodies.
According to the Companies Law, the chairman, manager, board of directors, or board members of a simplified joint-stock company are responsible for creating and filing financial statements. The law mandates that these statements be prepared at the conclusion of each fiscal year, following the Kingdom's adopted accounting standards, and submitted within six months of the fiscal year's end, as prescribed by the law.
The ministry has pointed out that the process of preparing and filing financial statements aids in boosting a company's administrative efficiency. By facilitating performance evaluation, adhering to financial compliance enhances the oversight of various departments, measures operational effectiveness, and supports informed decision-making based on reliable financial data.
This compliance also increases investor and shareholder confidence by enabling them to evaluate a company's profitability, potential returns, risks, and compare investment opportunities against other businesses.
Furthermore, the obligation to file financial statements benefits creditors and banks by providing them with insights into a company's repayment capacity, liquidity levels, financing terms, and compliance with loan and financing conditions. The statements also enable regulatory bodies to confirm a company's adherence to regulations, thus protecting investors and contributing to economic growth.
The ministry has identified the parties responsible for preparing and filing financial statements based on the legal structure of the company. Companies can electronically submit their financial statements through the Qawaem platform, an official digital system connected to the Ministry of Commerce and the Saudi Business Center for the direct deposit and filing of enterprise financial statements.
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