Statement of the chairman
Board of Directors Report on the Company's Activity and Financial Position for works of the Fiscal Year Ended on 30/09/2021
At the outset, I am pleased and delighted, on behalf of BOD members, Executive Management and all the employees of Credit Information Network Company (Ci-Net), to welcome you to the (22nd) Annual Meeting of the Ordinary General Assembly. At the start, I would like to extend my thanks and gratitude to the shareholders for their confidence and continuous support, which represents the main motivator for exerting maximum efforts in meeting their aspirations and working to achieve the company’s new objectives and strategies in light of the provisions of Law No. 9 of 2019 on regulation of the exchange of credit information and Executive Regulations thereof and executive rules issued thereto by Central Bank of Kuwait.
Despite the exceptional circumstances brought by the emerging Coronavirus (Covid-19) Pandemic and continuation of the challenges that resulted from such pandemic in various financial, banking and commercial sectors, (Ci-Net) was able to deal with all those challenges it faced during the fiscal year ended on 30.09.2021, as a result of the availability of an appropriate infrastructure and the diversity of its products and services provided and managed by distinguished human cadres, in addition to the strength of its capital base. Ci-Net has also managed to enhance the sustainability of its operations and provide its services by various modern technical means through continuous efforts of the work team in the Executive Management and the remaining company's staff.
Ci-Net has witnessed a prominent stage in its history during the past two (2) years, through implementation of several initiatives and programs that, in turn, contributed to development of the company's business in innovative digital ways and mechanisms in order to achieve the purposes and objectives for which it has been incorporated, and achieve the vision of Central Bank of Kuwait in transforming the company into an integrated and advanced information center. As Central Bank of Kuwait has taken many decisions and measures that, in turn, contributed to supporting the economic, financial and commercial sectors, which in turn will be reflected in the accuracy and quality of customer data and information available in Ci-Net's automated system. The company’s Board of Directors was keen to plan in advance to deal with the exceptional and majeure circumstances that contributed to adapting the company’s systems and programs to comply with the instructions issued by the supervisory regulator in this regard and in accordance with the best principles of transparency and governance. The company was also proactive in supporting all banking, financial, commercial and other sectors within the highest levels of readiness to provide information and credit rating services. Ci-Net has also adopted a digital transformation strategy that meets the needs and aspirations of the subscribed members and the requirements of individual and corporate clients, whether by developing existing systems or adding support systems, proactively so that the company keeps pace with those modern trends in the use of modern financial technology, which is a qualitative leap brought about by the new digital transformation systems.
Messrs. Shareholders,
Ci-Net has achieved unprecedented progress during the fiscal year ended on 30.09.2021 in many aspects of the work entrusted thereto to implement within the framework of the provisions of Law No. 9 of 2019 on regulation of exchange of credit information, which contributed to drive growth, enhance customer services and consolidate the company’s position as a leading provider of data, information and value-added services to the banking and financial sectors alike. On the other hand, the fiscal year (2020/2021) witnessed a tangible and real achievement for the company through implementation of the first phase of the transformation strategy plan that extends for the next three years, as it aims to focus on diversifying sources of revenue and opening new channels to explore new sources of revenue and income. This has positively affected the net profit for fiscal year 2020/2021. The company will continue to intensify all its efforts to maintain its position and status as the first authorized entity by Central Bank of Kuwait to provide credit reporting and credit rating services and also as a major provider of value-added services to all sectors operating in the State of Kuwait as well as enhancing its contribution to the growth of the digital economy as a powerful tool for all financial technology initiatives for its full belief that digital technologies have become an essential part of the strategy of all companies operating in the banking, financial and non-financial sectors that fully adopt digital aspects in their business and services, which helped the company to continue providing its services to subscribers and customers in an electronic and innovative manner.
Our unremitting efforts to enhance and develop the services provided to customers are also reflected in maintaining a strong environment and culture for monitoring and managing risk and compliance and enhancing aspects of information security, which considered among the most significant priorities of Board of Directors of (Ci-Net), as the company continued during the fiscal year (2020/2021) to invest in governance standards, frameworks and tools to professionally enhance risk management process. This included appointing leadership positions in the company, developing risk models and adopting new enhancements in the area of information technology security and confidentiality. Our adoption of this practical approach contributed to the preservation and development of the company's assets.
During the fiscal year 2021/2021, (Ci-Net) achieved a net profit of KD 1,606,329 (one million six hundred six thousand three hundred and twenty-nine Kuwaiti dinars) - after deducting allocations for Zakat and Kuwait Foundation for the Advancement of Sciences. Total revenues during the fiscal year ended on 30.09.2021 amounted to KD 3,313,153 (three million three hundred thirteen thousand one hundred and fifty-three Kuwaiti dinars). Consequently, Ci-Net has enhanced the shareholders' equity to reach an amount of KD 15,789,146 (fifteen million seven hundred eighty-nine thousand one hundred and forty-six Kuwaiti dinars).
Board of Directors has recommended to Ordinary General Assembly the distribution of cash dividends at the rate of 15% of the company’s paid-up capital, with a total amount of KD 342,000 (three hundred forty two thousand Kuwaiti Dinars) to the current shareholders who are registered in the company’s shares register with Kuwait Clearing Company until date of the current meeting and upon obtaining approval of the Ordinary General Assembly and the relevant competent authorities. Board of Directors has also proposed to grant a remuneration to the BOD members for their efforts during the fiscal year ended 30.09.2021 at a rate of 3.05% of profits - after deducting and applying depreciation and reserves and distributing profits to shareholders according to the percentage proposed by BOD and the allocation of Kuwait Foundation for the Advancement of Sciences and Zakat tax - To be for a total amount of KD 49,000 (forty-nine thousand Kuwaiti dinars) after obtaining approval of Ordinary General Assembly and the relevant competent authorities.
These results clearly confirm the strength of core elements that enhance the company's performance and quality of its business, it is a frim foundation upon which to build growth plans during the coming year. In order to be able to continue to reap results of the achievements, its most essential element is the contribution of our skilled and efficient employees, whose sincerity and dedication to work are the main drive for achieving that growth. Therefore, we are always keen to enhance the efficiency of our work team and continue investment operations in providing the necessary training opportunities and contributing to the development of their capabilities and skills, allowing them to excel and progress in their area of work, then achieve good and fruitful results for the company and its shareholders.