Page 32 - Inegrated Annual Report 2020-Eng

Independent Auditor’s Report

to the Shareholders of NMDC

Report on the Audit of the Consolidated Financial

Statements

Qualified Opinion

We have audited the consolidated financial statements of National Marine Dredging Company PJSC (the
“Company”) and its subsidiaries (together referred to as the “Group”), which comprise the consolidated
statement of financial position as at 31 December 2020, and the consolidated statements of profit or
loss, comprehensive income, changes in equity and cash flows for the year then ended, and notes to
the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, except for the possible effects of the matter described in the basis of qualified opinion in
our report, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the Group as at 31 December 2020 and its financial performance and its cash
flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”).

Basis For Qualified Opinion
Trade and other receivables at 31 December 2020 include unbilled receivables relating to certain
contracts with the Government of Abu Dhabi, its departments or its related parties. We were unable
to obtain sufficient and appropriate evidence to support the recoverability of amounts totalling AED
455,049 thousand (verbal contracts) and AED 150,621 thousand (signed contracts) included in these
balances, due to the absence of signed contracts and/or significant delays in the billing and collection.
Consequently, we were unable to determine whether any adjustments to these amounts were necessary.

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our report. We are independent of the Company in
accordance with the International Code of Ethics for Professional Accountants (including International
Independence Standards) (the “IESBA Code”) together with the ethical requirements that are relevant to
our audit of the consolidated financial statements in the United Arab Emirates, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter

As stated in note 12 to the accompanying consolidated financial statements, unbilled receivables include
an amount of AED 600,000 thousand recognized on the basis of claims submitted to a customer in
prior periods. The final amount of the claims is still under negotiation and is subject to a review by
a consultant, the finalization of which could have a significant impact on the amount of receivables
recognized. Our opinion is not qualified in respect of this matter.

32 2020 Integrated Annual Report