Chairman of the Board of Directors

Decision of the Board of Directors of the Authority No. (119) of 2016

Dated 20/8/2016

Regarding the Standards for Preparing and Auditing Financial Statements of Companies Licensed to Conduct Real Estate Financing Activities and the Deadlines for Submitting Them to the Authority

Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. (159) of 1981 and its Executive Regulations; Having reviewed the Real Estate Financing Law issued by Law No. (148) of 2001 and its Executive Regulations; Having reviewed Law No. (10) of 2009 regarding the regulation of supervision over markets and non-banking financial instruments; Having reviewed Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Egyptian Financial Supervisory Authority; Having reviewed Minister of Investment Decision No. (243) of 2006 regarding Egyptian Accounting Standards; Having reviewed Minister of Investment Decision No. (177) of 2008 issuing the Egyptian Standards for Auditing, Limited Review Engagements, and Other Reporting Services; And having approved by the Board of Directors of the Authority in its meeting No. (17) held on 20/8/2016;

Has Decided

(Article One)

Companies licensed to conduct one or more of the real estate financing activities are required to prepare their financial statements in accordance with Egyptian Accounting Standards, and are also required to audit them in accordance with Egyptian Auditing Standards.

(Article Two)

The companies referred to in the preceding article are required, when preparing their financial statements, to comply with the following:

1. Prepare annual financial statements and obtain their approval from the company's General Assembly within a period not exceeding three months from the end of the financial year, accompanied by the report of the company's external auditor.

(Article Three)

The companies referred to in Article One and required under Egyptian Accounting Standards to prepare consolidated financial statements shall prepare their annual standalone and consolidated financial statements and notify the Authority thereof, accompanied by the external auditor's report, within the deadlines specified in items (1, 2) of the preceding article. They are also required to prepare standalone and consolidated quarterly financial statements and notify the Authority thereof, accompanied by the external auditor's report, within a maximum of (60) days from the end of such period.

(Article Four)

The provisions of this Decision shall apply from the beginning of the financial year following the effective date of this Decision, except for the deadlines for preparing annual and quarterly financial statements and submitting them to the Authority, which shall apply from the first financial statements issued following the effective date of this Decision.

(Article Five)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

---

Chairman of the Board of Directors
Sherif Samy
46076

---

Egyptian Financial Supervisory Authority
Smart Village, Building 84 - B
Km 28, Cairo-Alexandria Desert Road
Giza Governorate, Postal Code: 12577
Tel: (+202) 35370040 - Fax: (+202) 25345322 Email: info@efsa.gov.eg Website: www.efsa.gov.eg