JCR-VIS reaffirms corporate governance rating of Pak Oman Investment Company Limited at CGR-9

Karachi, December 01, 2015 (PPI-OT):JCR-VIS Credit Rating Co. Ltd. has reaffirmed the Corporate Governance Rating of Pak Oman Investment Company Limited (POIC) at ‘CGR-9’. The previous rating action was announced on November 28, 2014.

The corporate governance practices at POIC are viewed in context of the Joint Venture Agreement (JVA) between the sponsoring shareholders, Government of Pakistan and Sultanate of Oman. POIC is in compliance with the governance related provisions laid down in the JVA. Additional practices considered favourable from a governance perspective may be implemented at the institution for increased transparency from the standpoint of all stakeholders.

Board oversight is considered satisfactory with effectively functioning Board and management level committees. Risk related matters have been included in Terms of Reference of a Board level committee. However, in line with international best practices, an independent risk committee may be considered. The Board is overseeing matters of both strategic nature and also monitoring the performance of the company. The Board exercises executive power in terms of certain loan approvals which is not aligned with international best practices.

Management team of the institution comprises seasoned professionals. Clear reporting lines are defined in the organogram along with a management succession plan. Mr. Bahauddin Khan was appointed as the company’s new MD in October 2015. The company is currently in the process of implementing Dot net based system.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk