Evaluation Report For SAFA Best Presented Accounts

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Evaluation Criteria

Break up of the marks awarded

1

Objectives and Values (Max Marks 5 ):

  • Vision
  • mission
  • Overall strategic objectives
  • Core values and code of conduct or ethical principles

    • 5
    1
    1
    1
    2

    2

    Directors’ Report / Chairman’s / (Head of the Organization Report) CEO Review (Max Marks 10):

  • A general review of the performance of the company
  • Description of the performance of the various activities / products / segments of the company and its group companies during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations used for this purpose) .
  • A brief summary of the Business Risks facing the organization and steps taken to effectively manage such risks
  • A general review of the future prospects/outlook.
  • Social responsibilities, environmental issues and how these have been met
  • Information on how the company contributed to its responsibilities towards the staff (including health & safety)
  • Information on company's contribution to the national exchequer & to the economy

    • 15

    2
    3



    2

    2
    2

    2

    2

    3

    Appropriateness of accounting policies and disclosure in accordance with National and International Accounting Standards (Max Marks 40):

    Details of Accounting Policies and Disclosures

  • All policies disclosed in one place
  • All policies relevant for treatment of assets and liabilities are disclosed.
  • Treatment of profit&loss account are disclosed.>
  • Policies in line with Best Presented Accounting Practices and the IAS (or relevant local standards if available, Provided they are more stringent than the IAS)
  • Adequately / properly worded accounting policies
  • Significant departure from standards should be adequately explained and quantified unless it is impracticable to do so

    Disclosure(Marks 10)

    Availability of information regarding different segments and units of the entity
  • Segmental review of operations with description of the performance and future prospects of each segment
  • Segment analysis of
       * Turnover
       * Operating Profit
       * Net Assets
  • Financial Sector entities can give a commentary on the financial products / instruments marketed by them and disclose the market value of instruments that are actively traded
  • Banks
       * Segmental analysis gross income, profit and before tax
       * Sectoral analysis of deposits and advances
       * Georgraphical analysis
       * Capital adequacy of Banks
       * Maturity Analysis of Assets and Liabilities
       * Disclosure of Concentration of Assets, Liabilities and Off Balance Sheet Items
       * Disclosure of Non Performing Loans
  • Insurance
       * Analysis between life and general business
       * Classes of business analysis
       * Valuation of Life Fund Liabilities
  • Financial Statements
       * Presentation format of P&L
       * Presentation format of Balance Sheet
       * Presentation format of Cash Flow / Source & Application
    of funds    * Presentation format of Changes in Equity
       * Notes on the Financial Statements

    Extent of compliance with the following core IAS / IFRS ( Applicable & Adopted by each country for financial year concerned)or equivalent National Standards


    Core IAS's+B97 : 1, 2, 7, 8, 10, 12,14, 16, 17, 18, 19, 21, 24,27,28, 30, 32, 36, 37, 38 and 39 IFRS; none

    • 30

    4

    		 Information on how the company is governed (Max Marks 15)
  • The Board structure and its committees
  • Number of board meetings held
  • Number of independent board members
  • Chairman of the Board independent of the CEO
  • Directors report / statement on internal control
  • Directors statement of responsibilities including preperation of financial statements and for internal controls on key risks faced by the company and the risk management policies
  • Composition of the audit committee (majority of members should be non-executive directors)
  • Salient features of the Audit Committee Charter
  • Existence of effective internal audit function, with head of internal audit direct access to audit committee
  • Number of audit committee meetings held
  • Separate report of the audit committee on its performance

    • 15

    1
    1
    2
    2
    1
    2


    1

    1

    2
    1
    1

    5

    Stakeholder Information (Max Marks 10 )
    Information relevant for shareholders and other users of financial statements.

  • Shareholder information
       *Distribution of shareholders
       *Shares held by Directors / Executives
  • Graphical / pictorial data on
       *Earning per share
       *Net assets per share / Market price per share
       *Shareholders funds / Return on shareholders
    funds
  • Five year summary
       *Trading Results
           - Turnover
           - Operating Profit
           - Profit Before Tax
           - Profit After Tax
       *Balance Sheet
            - Shareholders funds
           - Property Plant and Equipment
           - Net current assets
           - Long term liabilities
       *Profitability, dividends, performance and liquidity ratios
           - Net Assets per share
           - Effective dividend rate
           - Market Price per share
           - Price Earning Ratio
           - Debt Equity Ratio
           - Current Ratio
       *statement of value added and how distributed.
           - Government as taxes
           - Shareholders as dividends
           - Retained within the Business
           - Employees as remuneration

    • 10


    1



    1




    2









    5






    1

    6

    Report Presentation ( Maximum Marks 15 )

  • Production quality of the Report
         *Cover and printing including the theme (on the cover)
         *Effectiveness of photographs and their relevance
         *Effectiveness of charts and graphs
         *Layout of contents
         *Clarity, simplicity and lucidity in presentation of accounts

    • 15

    3
    3
    3
    3
    3

    7

    Timeliness in issuing Accounts and holding AGMs( Maximum Marks 10 )

  • A three months time period to produce the annual report and hold the Annual General Meetings are considered reasonable for full marks.
  • For each months delayafter the initial 3 months deduction of 2 marks is to be made.
  • If the period is over five months - no marks.

    • 10

     

    TOTAL MARKS ( OUT OF 100)

    100



    Signature of the Evaluator