Karachi, July 16, 2021 (PPI-OT):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 July 03, 2020.

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 a well-established corporate governance framework incorporated at POIC in the context of the Joint Venture (JV) agreement between the two sovereign sponsors – Government of Pakistan (GoP) and Sultanate of Oman (SO). Board composition is dictated by the JV agreement. The terms of the JV agreement dictate the Board composition where each sponsor nominates three directors on the Board.

The ratings also draw comfort from the effective functioning of the board and management level committees, including composition, level of participation, and external evaluation of Board performance. Stability in the management team was noted together with a well-defined succession plan and clear reporting lines in line with the organizational structure.

During FY21; POIC underwent some changes at the Board level. Re-composition in some board level sub-committees was noted in line with good corporate governance practices during FY20. As per best practices, policies were reviewed and updated accordingly. Level of financial and qualitative disclosures in the public domain is considered satisfactory.

The Securities and Exchange Commission of Pakistan (SECP) has exempted JV related entities, including POIC, from Public Sector Companies (Corporate Governance) Rules, 2013 subject to the conditions that the training of directors, performance evaluation of the Board, and audit of financial statements of the companies are conducted by Quality Control Review (QCR) related firms. POIC continues to remain compliant with the provisions of the code.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/