1) The Internal Shari’ah Supervisory Committee shall prepare an annual report to be presented to the general assembly of the Licensed Financial Institution, which conducts on all or part of its activities and businesses in accordance with the provisions of Islamic Shari’ah. The report shall take the form specified by the Higher Shari’ah Authority, and shall indicate the extent the management of the concerned institution is compliant with the provisions of Islamic Shari’ah, in all activities, business it conducts, the products it offers, contracts it enters into, and the documentation it uses. The said report shall include the following:

1. a. A statement on the extent of independence of the Internal Shari’ah Supervisory Committee when discharging its mandates.
2. b. A statement on compliance with the provisions of Islamic Shari’ah during the financial year ending in regards to policies, accounting standards, financial products and services, operations and activities in general, together with the memorandum, articles of association, and financial statements of the relevant institution.
3. c. A statement on the compliance of distribution of profits, bearing of losses, costs, and expenses among the shareholders and investment account holders, with the fatawa and opinions of the Internal Shari’ah Supervisory Committee.
4. d. A statement on any other breaches of Shari’ah provisions and the controls established by the Higher Shari’ah Authority.

2) The Internal Shari’ah Supervisory Committee shall provide the Higher Shari’ah Authority with copy of its report, no later than two (2) months from end of the financial year, in order for the Authority to express its remarks prior to the meeting of the general assembly of the concerned institution.