15 YEARS - Zain

Internal AuditOne component of good corporate governance is an effectiveand independent internal audit function. An Internal AuditDepartment was created in 2003 on the Zain Group levelcovering operating companies’ operations in all countriesincluding Zain Jordan.Internal audit is an independent objective assurance andconsulting activity designed to add value and improve theoperations of Zain. It helps the Group and all operatingcompanies accomplish their objectives by bringing asystematic, disciplined approach to evaluate and improve theeffectiveness of risk management, internal control systemsand governance processes, ensuring all risks includingconflicts of interest and corruption are avoided.The scope of internal audit activities is derived from theInternal Audit Plan which is approved by the Zain Board. Thescope of work contained in internal audit plan will be basedon the Group Internal Audit Department’s assessment of theinherent risks and the significance of these risks to the Group.Ownership StakesIn 2010, Zain Jordan as an entity had ownership stakes in avariety of other organisations which have been mentionedthroughout the report, but not included in the scope of thereport, these include:- 100% of the Future University Network (FUN);- 100% of Reach Telecommunications Services;- 100% of Pella Telecom;- 26% of MADA JordanMeeting Shareholder ExpectationsAs one of the oldest members of the Group and as a leader inthe Jordanian market, Zain Jordan is expected to consistentlydeliver high performance and value to the Group and itsshareholders. This has been achieved year after year throughthe dedication to innovation and leadership shown by ZainJordan to empower people and transform Jordan.Meeting Shareholders’ Expectations2008 2009 2010Revenues (‘000 JOD) 343,495 339,653 363,751Profits (‘000 JOD) 91,006 94,680 101,803Compliance with Governmental RegulationsZain Jordan complies with all governmental laws andregulations of the Hashemite Kingdom of Jordan, including allthose set by the TRC-Jordan.Zain Jordan has had no legal cases against it in areas of labourrights, product responsibility, and environmental performance.65