Press Release

VIS Reaffirms Corporate Governance Rating of Pak Oman Investment Company Limited at CGR-9

Karachi, July 3, 2020: VIS Credit Rating Co. Ltd. (VIS) has reaffirmed the Corporate Governance Rating of Pak Oman Investment Company Limited (POIC) at ‘CGR-9’. The rating signifies very high level of corporate governance. The previous rating action was announced on October 12, 2018.

Corporate governance ratings are based on evaluation of key governance areas of the rated institution including regulatory compliance, ownership structure, composition and operations of the Board of directors (BoD) and executive management, self-regulation, financial transparency and relationship with stakeholders. The assigned rating takes into account the governance practices instituted at the organization in context of the Joint Venture (JV) agreement between the two sponsoring sovereigns. The terms of the JV agreement dictate the Board composition.

The rating takes into account continuance of key governance factors relating to the Board, composition of its Board level committees, level of participation in them and external evaluation of Board’s performance. All manuals and policies are regularly reviewed and updated as per best practices. Reporting lines in the company remain consistent with the organizational structure. As per best practices, Head of Internal Audit functionally reports to Board Audit Committee. The company has a defined succession plan in place.

Given the structure of JVA companies including POIC, SECP has granted exemption from provisions of Code of Corporate Governance applicable on public sector entities except some. These relate to training of directors, performance evaluation of the Board and audit of financial statements of the companies by Quality Control Review (QCR) rated firms. POIC remains compliant with these provisions of the code. Level of financial and qualitative disclosures in the public domain is considered satisfactory. Moreover, overall control environment of the institution is considered satisfactory.

For further information on this rating announcement, please contact the undersigned (Ext: 306) or Mr. Muhammad Ibad (Ext: 205) at (021)35311861-71 or fax to (021)35311872-3.

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Corporate Governance Ratings (August 2017)

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