Press Release

VIS Upgrades Corporate Governance Rating of Pak Oman Investment Company Limited

Karachi, September 11, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the Corporate Governance Rating (CGR) of Pak Oman Investment Company Limited (‘POIC’ or ‘the Company’) from ‘CGR-9’ to ‘CGR-9+’. Rating of ‘CGR-9+’ denotes very high level of corporate governance. The previous rating action was announced on September 01, 2023.

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.

Rating factors in a well-established governance framework at POIC supplemented by effective functioning of board and management level committees. Satisfactory oversight was maintained by the board with effective operations of four board level committees having well-defined objectives, scope and reporting procedures. Overall attendance record of all Committee meetings was strong. Management committees, consisting of group and department heads, are also actively operational. In addition, third party evaluation of Board was conducted in CY23 which assessed performance of the Board on the higher end of the scale, with board committees receiving satisfactory average scores. In-house evaluation of the Board was also conducted during the on-going year. Out of five directors, three directors have completed Director’ Training Program, rest of the two directors of the Company plan to complete the same during on-going year. One position of the GoP nominee director remains vacant with the same expected to be filled in due course. During the review period, some senior management changes occurred, with new appointments to key roles. However, well-defined structured succession plan gives strength to the corporate governance framework.

The support functions—Finance, IT, Human Resources, and Administration—effectively supported the Company’s operations. Additionally, management has updated and revised policies and procedure manuals, demonstrating a strong commitment to regulatory compliance and transparency through regular policy updates and robust risk management. The Company emphasizes ethics, stakeholder engagement, and sustainability, underpinned by Whistle Blower and Fraud Prevention Policies. Level of financial and qualitative disclosures in the public domain is satisfactory. Overall, POIC adheres to good governance practices and complies with corporate governance code provisions.

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk


Applicable Rating Criteria:
Corporate Governance Ratings
https://docs.vis.com.pk/docs/CoporateGovernance-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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