The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (3478/L.S/2024) of 1446 H. Dated 05/03/1446 H., corresponding to 08/09/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Sohail Sa'eed Mohammed Sa'eed, Kailash Nath Sadangi, Fawaz bin Abdullah bin Abdulmohsen Alkhudari.

The decision concluded with the following:

1. The conviction of Sohail Sa'eed Mohammed Sa'eed, as Director of the Financial Department at Abdullah A. M. Al-Khodari Sons Co., Kailash Nath Sadangi, as Chief Financial Officer of the Company, and Fawaz bin Abdullah bin Abdulmohsen Alkhodari, as Chief Executive Officer of the Company, for violating Article (49/a) of the Capital Market Law, and Article (7) of the Market Conduct Regulations, for performing acts that inflated the revenues of (4) construction projects in the Company's financial statements during the period from the fiscal year ending on 31/12/2010 until the fiscal year ending on 31/12/2017, through manipulating the application of the (Revenue Standard) and (Accounting Standard for Construction and Service Contracts) approved by the Saudi Organization for Certified Public Accountants (SOCPA), and the International Financial Reporting Standard (15) – (Revenue from Contracts with Customers), as it was found that the costs used in calculating the percentage of project completion differ from the actual costs registered in the Company's records, hence showing the annual financial statements for the periods in question contrary to reality, thus creating a false and misleading impression regarding the value of the Company's security.
2. The conviction of Fawaz bin Abdullah bin Abdulmohsen Alkhudari, as Chief Executive Officer of the Company, for violating Article (211/a) of the Companies Law, issued by Royal Decree No. (M/3) dated 28/01/1437 H., for the failure to prove the losses related to (6) construction projects withdrawn from the Company in the financial statements of the fiscal year ending on 31/12/2017, with the intent of concealing the Company's financial position, in violation of the International Financial Reporting Standard (Financial Instruments) and the International Accounting Standard (Provisions, Contingent Liabilities, and Contingent Assets).

The decision included the imposition of a number of sanctions upon them according to the following:

First: Sohail Sa'eed Mohammed Sa'eed:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in companies, shares of which are traded in the Saudi Exchange for Three years.
   
   Second: Kailash Nath Sadangi:

1. Imposing a fine upon him amounting to (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning him from working in companies, shares of which are traded in the Saudi Exchange for Three years.
   
   Third: Fawaz bin Abdullah bin Abdulmohsen Alkhudari:

1. Imprisonment for a period of Six months.
2. Imposing a fine upon him amounting to (SR. 3,250,000) three million two hundred fifty thousand Saudi Riyals, for violating Article (211/a) of the Companies Laws.
3. Imposing a fine upon him amounting to (400,000) four hundred thousand Saudi Riyals, for violating Article (49/a) of the Capital Market Law, as well as Article (7) of the Market Conduct Regulations.
4. Banning him from working in companies, shares of which are traded in the Saudi Exchange for Three years.
   
   Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed  with the  CMA on this regard, via the following link: (File Complaint)
   
   However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.
   
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