The Corporate Excellence Award was instituted by MAP in 1982 with the sole aim to recognising and honouring companies showing outstanding performance and demonstrating progressive and enlightened management practices.
FOR ASSESSMENT PURPOSE THE LISTED COMPANIES HAVE BEEN DIVIDED INTO TWO CATEGORIES - VIZ -
-- Business & Industrial Category
-- Financial Category
THE BUSINESS AND INDUSTRIAL CATEGORY COMPANIES HAVE BEEN FURTHER SUB-DIVIDED INTO FIVE SECTORS, NAMELY:
-- Textile and Allied sector (Cotton, Synthetic, Rayon, Jute and Woollen Textiles)
-- Chemicals and Allied Sector(Chemicals, Pharmaceuticals, Fuel and Energy).
-- Food and Allied Sector (Food, Sugar, Banaspati, Tea and Tobacco).
-- Engineering and Allied Sector (Engineering, Auto and Allied Engineering, Cables and Electrical Goods)
-- Miscellaneous Sector (Glass & Ceramics, Leather Goods, Garments, Construction etc) Similarly, in the Financial Category all the companies have been sub-divided into the following three sectors.
-- Commercial Banks Sector (includes all listed Commercial Banks.)
-- Non-Banking Financial Institutions Sector (Includes Investment Banks, Leasing Companies, Securities Companies, Modarabas and Mutual Funds).
-- Insurance Sector (Includes all Insurance Companies)
PHASE 1
SHORT-LISTING ON DIVIDEND PAYMENT:
This is the primary qualifying criterion of first short-listing companies for the second phase consisting of detailed financial evaluation and envisages:
a) Payment of at least 10% dividend (Cash or Bonus Shares) each year during the last three consecutive years.)
b)Payment of at least aggregate of 30% dividend (Cash or Bonus Shares) over the last three years.
The procedure of sending management appraisal questionnaire to the short-listed companies has also been modified and now the questionnaire is being sent to all the listed companies but only companies qualifying the new primary criteria, as mentioned above, will be eligible for contesting for the second phase of assessment.
PHASE 2
DETAILED FINANCIAL EVALUATION:
The financial performance assessment of the Companies starts simultaneously when the management appraisal questionnaire is sent to the Companies. The financial ASSESSMENT IS DONE ON THE BASIS OF THE FOLLOWING PARAMETERS:
BUSINESS & INDUSTRIAL CATEGORY
=========================
Ratios Points
=========================
1. Return on Capital
-------------------------
Employed 10
2. Asset Turnover
-------------------------
Ratio 10
3. Earning Per Share 10
4. Acid Test/Quick
-------------------------
Ratio 10
5. Ratio of Market
Value to Book
-------------------------
Value of Share 10
Total 50
=========================
FINANCIAL CATEGORY:
The Financial Category companies have been divided into three sectors in view of their different natures of business. Consequently their ratios differ for financial assessment. These ratios have been established with the assistance of Pakistan Credit Rating Agency (PACRA) and Pakistan Insurance Corporation.THESE RATIOS AND THE POINTS ALLOTTED FOR THEM ARE AS FOLLOWS:
==========================
Ratios Points
==========================
A) Commercial Banks
1. Return on Capital
Employed 10
2. Asset Turnover
Ratio 10
3. Ratio of Net
Impaired lending
to Equity 10
4. Ratios of Liquid
Assets to (Deposits
+ Borrowings) 10
5. Ratio of Total
Finance to (Deposits
+ Borrowings) 10
Total 50
B) Insurance Companies
1. Return on Capital
Employed 10
2. Asset Turnover
Ratio 10
3. Premium Solvency
Ratio 10
4. Ratio of net
Investment Income
to Premium Earned 10
5. Combined Ratio 10
Total 50
==========================
NON- BANKING FINANCIAL INSTITUTIONS (NBFI'S)(Includes Investment Banks, Leasing Companies, Securities Companies, Modaraba, Mutual Funds)
==========================
1. Return on Capital
Employed 10
2. Asset Turnover
Ratio 10
3. Ratio of Net
Impaired lending to
Equity 10
4. Ratio of Liquid
Assets to Total
Funding 10
5. Ratio of Total
Debt to Equity 10
Total 50
==========================
TIME WEIGHTAGE OF RATIOS THE FOLLOWING WEIGHTAGE HAS BEEN ASSIGNED FOR THE PURPOSE OF DERIVING THE ABOVE FINANCIAL PARAMETERS:
=============
Yearn 4
Yearn-1 2
Yearn-2 1
=============
Points scored by a company under the above parameters are added to calculate the total points earned out of a maximum of 50 points allocated for financial performance.
PHASE 3
MANAGEMENT APPRAISAL QUESTIONNAIRE: The next step in the assessment process is appraisal of management practices of companies qualifying the financial assessment. As mentioned earlier, only those companies are eligible to complete the questionnaire, which qualify the primary criteria of 10% dividend pay out each year during the last three years or an aggregate pay out of 30% dividend.
The completed questionnaires are examined at two stages. Firstly, by an in-house committee comprising of senior management practitioners; secondly, by the panel of experts formed by the Corporate Excellence Awards Sub-committee.
The committee mentioned above marks the responses of the questionnaire. These marks are re-examined by the panel of experts. Top five companies in each sector of the Business & Industrial Category and Financial Category are short-listed on the basis of the aggregate marks earned in the assessment of financial and management performance. These are two aspects for adjudging a company's corporate performance. The weightage of financial and management appraisals is 20:80 respectively.
THE TOTAL POINTS AND POINTS ALLOTTED TO EACH ASPECT AS FOLLOWS:
================================
Financial assessment : 50
Management Practices
Appraisal : 200
Total : 250
================================
In order to facilitate the in-house committee and the panel of experts in marking the 100 questions under eight sections of the management appraisal questionnaire on a wider range, each question has been allocated 10 marks.
AS SUCH, THE 100 QUESTIONS HAVE BEEN EARMARKED 1000 MARKS AS PER FOLLOWING DETAILS:
======================================
Section No of No of
Questions Marks
======================================
1. Corporate
Governance 16 160
2. Strategic
Planning 22 220
3. Leadership 06 60
4. Social
Responsibility 07 70
5. Customer &
Market Focus 09 90
6. Human Resource
Focus 25 250
7. Operation
Management 08 80
8. Information
Management 07 70
100 1000
======================================
PHASE 4 TOP MANAGEMENT MEETINGS: On the basis of in-house assessment, three +ighest scoring companies are selected for site visit and detailed meetings with top management of each selected company. The purpose of these meetings is to verify and obtain a vital, face-to-face view of the responses to questionnaires. During these meetings the MAP teams not only discuss their management practices but also inspect the evidence of claims made in the questionnaires as well as policy documents.
After the top management meetings the team members re-examine the questionnaires of the visited companies and make adjustments in the assigned marks in the light of their findings.
PHASE 5
FINAL TABULATION OF RESULTS: When the final assessment of management practices on the basis of 1000 marks are received at the MAP Secretariat, the assessment process concludes. The next and final step is tabulation of the results on the basis of 250 points, 50 for financial evaluation and 200 for management appraisal, thus, maintaining the 20:80 weightage for each aspect. The final tabulation is presented to the MAP Executive Committee by the Corporate Excellence Awards Sub-Committee for approval and announcement.
AWARDS: Previously, there were two Excellence Awards, one each for the overall winner in the business-industrial and financial companies categories, together with seven Certificates of Excellence.
Under the revised Awards process, there is one Circulatory Trophy for the overall winner in each category ie Business-Industrial Category and Financial Category. In addition, there will be smaller trophies for the top companies in the eight sectors of both the above categories. There will be certificates of excellence for the runners up of each sector.
THE NUMBER OF AWARDS AND CERTIFICATES UNDER NEW SCHEME ARE AS FOLLOWS:
1. Two large Circulatory Trophies for overall winners
2. Eight small take-away trophies for sectoral winners
3. Eight Corporate Excellence Certificates for runners up in each sector.
CONCLUSION: The new Award process has been developed with the sole aim to provide the companies with greater opportunities to win the MAP awards and certificates. This system is expected to encourage companies to increasingly participate in the awards contest and adopt international best management practices that are the basis of the MAP Corporate Excellence Awards.
CORPORATE EXCELLENCE CERTIFICATES 1982-2004
==================================================================================================================================================================
Company 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004
==================================================================================================================================================================
Glaxo Laboratories (Pakistan) Limited * * * * *
ICI Pakistan Limited * * * *
Reckitt & Colman of Pakistan Limited * * * *
Pakistan Cables Limited * * *
Exxon Chemical Pakistan Limited * * * *
(Engro Chemical Pakistan Limited) * * * *
Packages Limited * * * *
Millat Tractors Limited * * *
Absestos Cement Industries Limited * * *
Exide Pakistan Limited * *
Pakistan papersack Corporation Limtied *
polypropylene Products Limited *
Parke Davis & Company Limited *
Ittefaq Textile Mills Limited * *
Unilever Pakistan Limited * * * * * * * * * *
Pak Suzuki Motor Company Limited *
Service Industries Limited *
Brooks Bond Pakistan Limited * *
Singer Pakistan Limited * *
Kohinoor Spinning Mills Limited * *
Philips Electronic Industries of Pakistan Lid. *
Prince Glass Works Limited *
Rafhan Maize Products Co Limited * *
United Distributors Limited *
Nafees Cotton Mills Limtied *
Hinopak Motos Limited * *
Nishat Mills Limited *
Grays of Cambridge of Pakistan Limited *
Bannu Wooden Mills Limited * * * * *
Pak Electronic Limtied *
Grharibwal Cement Limited *
Al-Ghazi Tractors Limtied * * * * *
Cherat Papersack Limited * *
Shabbir Tiles & Ceramics Limited * *
Orix Leasing Pakistan Limited * * * *
BOC Pakistan Limited * *
National Development Leasing corp *
Mahmood Textile Mills Limited *
Kohinoor Weaving Mils Limited *
Sitara Chemical Industries Limtied *
Thal Limited * *
Colegate Palmolive (Pakistan) Limited * * * *
Bolan Casting Limited *
Tripack Film Limited * * *
International General Ins. Co of Pak. Ltd *
Attock Refinery Limited * *
Siemens Pakistan Engineering Co Ltd *
Indus Motor Co Limited *
Union Bank Limited *
==================================================================================================================================================================
RECIPIENTS OF CORPORATE EXCELLENCE AWARDS
1982-2004
BUSINESS AND INDUSTRIAL CATEGORY:
================================================================================================================================================================================================================
Company 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Total
Millat Tractors Limited * * 2
(Exxon Chemcial) Pak, Ltd * * * * * * * * 8
* * * * * * * * 8
Lever Brothers Pak Ltd * * * * * 5
(Unilever Pak. Ltd * * * * * 5
Park-Davis & Co Ltd * * * 3
BOC Pakistan Limited * 1
Al-Ghazi Tractors Ltd * * 2
Attock Refinery Ltd * 1
Rafhan Maize Products Co Ltd * 1
Total 23
================================================================================================================================================================================================================
Financial Category
================================================================================================================================================================================================================
Adamjee Insuracne Co * * 2
Orix Leasing Pak. Ltd * 1
Khadim Ali Shah Bokhari & Co Ltd * 1
International General Insurance Co of Pak. Ltd * 1
Askari Commercial Bank Limited * * * 3
Total 8
================================================================================================================================================================================================================
Sector Wise Awards
================================================================================================================================================================================================================
Pakistan State Oil Co Ltd * * 2
Al- Ghazi Tractors Ltd * * 2
Thal Limited * * 2
Standard Chartered Modaraba * * 2
Sapphire Textile Mills Ltd * 1
================================================================================================================================================================================================================
PAST PRESIDENT OF MAP:
====================================================================
Mr Javed Iqbal, Mr K.M.M. Shah
Chief Executive, Deptuy Managing Director,
THK Association (Pvt) LTD Glaxo Laboratories (Pakistan) Ltd
(2003-2004)-(2004-2005) (1983-84)-(1984-85)
Syed Masood Ali Naqvi, Dr D.M. Qureshi,
Seminar Partner Managing Director,
KPMTG Taseer Hadi & Co Bankers Equity Limited
(2001-2002)-(2002-2003) (1981-1982)-(1982-83)
Mr Moin M. Fudda, Mr A.R. Dadi,
Country Director General Manager
Centre for International IBM World Trade Cprporation
Private Enterprise (1979-80)-(1980-81)
(1999-2000)-(2001-2002)
Mr Haroon Basheer, Mr S. Irtiza Hussain
Executive Director, Sr. Partner
Musilm Commercial Bank Ltd A.F. Ferguson & Co
(1997-98)-(1998-99) (1974-75)-(1975-76)-(1976-77)
Mr Tariq Ikram Dr Rafiq Ahmed,
Managing Director Director,
Reckitt & Colman of Pakistan Ltd Exxon Chemical Pakistan Ltd
Currently Chairman (1974-75)-(1975-76)-(1976-77)
Export Promotion Bureau
(1994-95)-(1995-96)
Mr Shaukat R. Miraza (Late) Mr Sleem Majidulla
Chairman & Chief Executive Chief Executive
Engro Chemical Pakistan Ltd Sandoz (Pakistan) Limited
(1994-93)-(1993-94) (1972-73)-(1973-74)
Mr A. Shahbaz Mr M. Nasim Khan
Chief Executive Managing Director
Pakistan Burman Shell Ltd Pakistan Oxygen Limited
(1992-93)-(1993-94) (1970-71)-(1971-72)
Mr Khalid Rafi Mr S.A. Masood (Late),
Sr. Partner Marketing Director
A.F. Ferguson & Co Pakistan Tobacco Company, Ltd
(1989-90)-(1990-91)-(1991-92) (1969-70)
Mr Zahid Zaheer Mr KH. Nasir-ud-Deen (Late)
Management Consultant Management Consultant
Zahid Zaheer Associates Nasir-ud-Deen & Associates
(1987-88)-(1988-89) (1967-68)-(1968-69)
Mr Sanaullah Qureshi Mr Amir S. Chinoy (Late)
Executive Director Managing Director
ICI Pakistan Limited Pak Chemicals Limited
(1985-86)-(1986-87) (1965-66)-1966-67)
====================================================================
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