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Recognition of the dissemination of quality information, beneficial for all the stakeholders and an effort to broaden shareholder base

By SHABBIR H. KAZMI
Feb-04 - Feb-10, 2002

The objective of instituting 'Best Presented Accounts Awards' is to recognize dissemination of quality information in the companies annual reports reflecting the quality of management. There exists a gap between the financial statements and the purpose they purport to serve. In general financial statements show results of past performance and do not show non-financial information, though in many instances, it may be pertinent for decision makers.

As the listed companies are required to follow International Standards of Accounting, the quality of annual reports is expected to improve, with particular reference to greater disclosure. It is also true that sponsors resist any attempt to bring transparency and give less attention to corporate governance. However, it is also true that many companies not only follow good governance but also provide maximum disclosure for the benefit of all the stakeholders.

The award has been jointly initiated by the Institute of Chartered Accountants (ICAP) and Institute of Cost and Management Accountants (ICMAP). For the purpose of evaluation a very comprehensive proforma has been developed. The main emphasis has been on Report Presentation (25 points), Report of Chairman and Timeliness in Issuing Accounts and Holding Annual General Meetings (30 points). Disclosure was also given high weightage (20 points). The remaining points out of a total of 100 were for Stakeholder Information (15 points), Corporate Objectives (5 points) and Financial Aspects of Corporate Governance (5 points).

The efforts of local companies have been recognized by South Asian Federation of Accountants (SAFA) in the past when some of the companies were conferred awards. Pakistan got the first position only once when Philips was selected for the top position. It was twice that Pakistani companies namely Askari Commercial Bank and Shell Pakistan were selected for the second position. The institution of this award in Pakistan, based on the criteria followed by SAFA, is expected to improve reporting standards and pave way for the initial scrutiny for SAFA award.

The ceremony to confer awards and distribute certificates to the 30 companies was held recently. Khalid M. Mirza, Chairman, Securities and Exchange Commission of Pakistan was the chief guest. Khalid Mirza appreciated the efforts by the two institutes. The ceremony was attended by luminaries of the corporate sector.

Winners of Awards Services

  • Askari Commercial Bank
  • Jahangir Siddiqui & Company

Textile

  • Rupali Polyester
  • Ibrahim Fibres

Chemicals

  • Engro Chemical Pakistan
  • Glaxo Wellcome Pakistan

Engineering

  • Millat Tractors
  • Baluchistan Wheels

Fuel & Energy

  • Shell Pakistan
  • Pakistan State Oil Company

Misc

  • Rafhan Maize Products Company
  • Century Papers & Board Mills

Winners of certificates Services

  • Faysal Bank
  • Atlas Investment Bank
  • Atlas Lease

Textile

  • Kohinoor Weaving Mills
  • Kohinoor Raiwind Mills
  • Samin Textiles

Chemicals

  • BOC Pakistan
  • Fauji Fertilizer Company
  • Sitara Chemial Industries

Engineering

  • Al-Ghazi Tractors
  • Atlas Battery
  • Siemens Pakistan Engineering Company

Fuel & Energy

  • Attock Refinery
  • National Refinery
  • Pakistan Oilfields

Misc

  • Nestle Milkpak
  • Packages
  • Gillette Pakistan