Procurement News Notice |
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| PNN | 9253 |
| Work Detail | It has been almost 37 years since the Board of Directors of Pakistan Stock Exchange, PSX (formerly Karachi Stock Exchange Limited) started to sift the best from the rest. But over time - since 1978 when the first awards to the top companies were presented - the PSX has continued to revise and re-adjust the criteria for selection. For the selection of best 25 performing companies for both the years of 2014 and 2015 among the 559 companies listed at the national bourse, it was mandatory for companies to meet three 'prerequisites'. First, a minimum dividend distribution of 30pc (including at least 15pc cash dividend) for the year; second, the shares of the company had to be traded 50pc of the total trading days during the year, and third, that the company should not be in the 'Defaulters Segment of the Exchange' or trading of its shares were not suspended on account of violation of laws and regulations. The PSX has been striving to revise and update the criteria for selection to ensure that only those companies are honoured which have not only excelled in performance but are also serving the interest of their shareholders, in the best possible manner. The companies that fulfil the above prerequisites are then selected on the basis of highest marks obtained as per following criteria: Capital efficiency (27.5pc marks); profitability (37.5pc marks); free-float of shares (7.5pc); turnover of shares (2.5pc); corporate social responsibilities (2.5pc) and transparency and investors relation (22.5pc). All of that makes a tally of 100pc. This award function is held to acknowledge the outstanding performance of listed companies as these entities have not only shown excellent performance in the area of corporate profitability but also shared those with their shareholders, thereby, remaining favorites of stock market investors through their shares volumes. These companies have also adhered to the principles of good corporate governance set by the Pakistan Stock Exchange for selection of Top 25 listed companies every year. They have been recognised and appreciated by the Exchange as they are the scions of Pakistan's industrial, financial and services sectors which will take the Pakistani capital market forward and help it in achieving higher growth targets. A quick look at the selected top 25 companies for the years 2014 and 2015 reveals that there are 17 companies being recipient of the award for both the said years, namely, Fauji Fertiliser Company Limited, Pakistan Oilfields Limited, Nestle Pakistan Limited, Fauji Fertiliser Bin Qasim Limited, Pakistan International Container Terminal Ltd, Attock Petroleum Limited, Hinopak Motors Limited, Atlas Honda Limited, Colgate - Palmolive (Pakistan) Limited, Arif Habib Limited, Bata Pakistan Limited, Security Papers Limited, Millat Tractors Limited, Service Industries Limited, Atlas Battery Limited, Biafo Industries Limited, and Habib Bank Limited (refer to the end of the article for the complete list of award recipients for both the years of 2014 and 2015). Pakistan is on the path of rapid progress, improved law and order situation, higher GDP growth and private sector borrowing, booming real estate and stock market. These achievements have made Pakistan an attractive market for domestic and foreign investment. The available production capacities in various sectors (cement, steel, automobiles & fertilisers) are being utilised at the optimum level as the present production capacities are being fully utilised. The much touted US $46 billion China-Pakistan Economic Corridor (CPEC) project that will pass through Gilgit-Baltistan region in the north of Pakistan to reach Chinese-operated Gwadar port in the country's south is envisioned to be a supporting factor for transforming the country's economy and help bridge Pakistan's power shortfall. With CPEC on the horizon, Pakistan is entering an era of real investment creating a trickledown effect for the good of masses in the country. Now a little about the one sitting on top of all others: Fauji Fertiliser Company FFC. It has an enviable record of seizing a position among the top 25 companies, consecutively for 22 years since 1994. For six years (2010 to 2015), The FFC) has stood first among the top 25. Out of 25 award winning companies for the year of 2014; 4 companies are from Automobile Assembler sector, 3 each are from Chemical, and Insurance sectors, 2 each are from Fertiliser, Oil & Gas Exploration Companies, Leather & Tanneries, and Commercial Banks sectors, and lastly, one each from Food & Personal Care Products, Transport, Investment Banks / Investment Companies/ Security Companies, Paper & Board, Close End Mutual Fund, Cement, and Automobile Parts & Accessories sectors. Similarly out of the 25 award winning companies for the year of 2015; 4 companies are from Automobile Assembler sector, 3 companies each are from Fertiliser, and Commercial Banks sectors, 2 companies each are from Food & Personal Care Products, Oil & Gas Exploration Companies, Leather & Tanneries, Chemical, and Automobile Parts & Accessories sectors, and lastly, 1 company each is from Transport, Investment Banks / Investment Companies/ Security Companies, Paper & Board, Textile Composite, and Cement sectors. After the introduction of Code of Corporate Governance as a part of Exchange's Listing Regulations, there has been a significant improvement in the performance of listed companies. The distribution of awards encourages entrepreneurs to improve their systems and method of doing business with effective corporate governance. These best performing companies' awards are an attempt by the PSX to encourage shareholders' confidence and develop a competitive spirit amongst the listed companies on the Exchange and to recognize their contribution towards the promotion of investment in the country, that are also providing job opportunities, producing goods and services and contributing taxes to the exchequer. |
| Country | Pakistan , Southern Asia |
| Industry | Financial Services |
| Entry Date | 15 Oct 2016 |
| Source | http://www.brecorder.com/supplements/88/83596/ |
