Winners at SCA 2013

Companies with $1 billion and above in market capitalisation

Gold Sembcorp Marine Ltd
Silver Keppel Corporation Ltd
Bronze Singapore Technologies Engineering Ltd

Companies with $300 million to less than $1 billion in market capitalisation

Gold Keppel Telecommunications and Transportation Ltd
Silver Del Monte Pacific Ltd
Bronze SBS Transit Ltd

Companies with less than $300 million in market capitalisation

Gold OKP Holdings Ltd
Silver MegaChem Ltd
Bronze Baker Technology Ltd

REITS & Business Trusts

Gold Keppel REIT
Silver Capitacommercial Trust
Bronze Perennial China Retail Trust
Bronze Ascott Residence Trust

First-Year Listed Companies

Gold Mapletree Commercial Trust
Silver Bumitama Agri Ltd
Bronze Ley Choon Group Holdings Ltd


Objectives

  1. To encourage excellent financial reporting presentation and a wider scope of disclosures beyond the minimum regulatory requirements that are in tandem with the needs of investors and other stakeholders such as employees, creditors and the general public
  2. To create awareness of the role of both mandatory accounting standards and voluntary practices issued by the Accounting Standards Council and the Institute of Singapore Chartered Accountants
  3. The ARA was introduced to increase awareness through the encouragement of social responsibility reporting that business enterprises and organisations are responsible to the community both as employers and corporate citizens

The ARA also gives recognition to maiden annual reports of newly listed companies that show an excellent standard of disclosure. The Committee hopes that this will encourage newly listed companies to raise their annual report corporate disclosure standard.

The ARA introduced a marking category for Real Estate Investment Trusts (REITs) and business trusts with effect from 2009.

Categories of Awards

Awards will be presented for the following categories of companies:

  • Listed companies with market capitalisation of S$1 billion and above
  • Listed companies with market capitalisation from S$300 million to less than S$1 billion
  • Listed companies with market capitalisation below S$300 million
  • Newly listed companies
  • REITs and business trusts

For each of the above categories, the following awards will be presented:

  • Best Annual Report Award - Gold
  • Best Annual Report Award - Silver
  • Best Annual Report Award - Bronze

Screening Process

Annual reports submitted for the competition go through a two-stage screening process. All annual reports are screened preliminarily by reference to the presence of key information stipulated in the ARA preliminary screening criteria.

The ARA panel of judges subsequently assesses each short-listed annual report against the ARA detailed marking criteria, taking into account the quality and presentation of information.

Preliminary Screening Criteria

The annual reports are first screened by reference to the presence of the following information:

Review of Results (RR)

  • Commentary on business-specific measures of performance
  • Presence of financial highlights commentary (discussions on financial statistics presented like ROE, dividend cover, etc)
  • Discussion on corporate liquidity, capital management and financial risk management.
  • Commentaries on first half results against second half results
  • Disclosure made on productivity measure and performance measures

Vision & Strategic Issues (VSI)

  • Disclosure of group and strategic directions (clear articulation of vision, mission statement, goals and objectives)

Business Plans & Prospects (BPP)

  • Earnings prospects by division/territory (For single industry and single territory companies, 1 point is awarded if commentary on industry or territory are provided)

Risk Assessment & Management (RAM)

  • Discussion of key business risks and risk management strategies
  • Presence of sensitivity analysis or Value-at-Risk (VAR) analysis

Corporate Governance Issues (CG)

  • Information on directors/management - CVs of key management
  • Remuneration of directors/management disclosed in dollar amount and not in bands

Environmental & Social Accountability (ESA)

  • Employee welfare commentary
  • Environmental responsibility commentary
  • Community and other social responsibilities commentary
  • Service/product quality and safety commentary

Informativeness, Clarity & Presentation (ICP)

  • Investor relations activities

Detailed Marking

Annual reports shortlisted from the preliminary screening process are examined in detail for the quality of information contents by reference to the following:

Review of Results (RR)

  • Historical analysis & commentary (quarterly, half-yearly, 5-year trend, segment analysis)
  • Benchmarking against competitors & industry performance
  • Value-adding & productivity ratios
  • Other key performance indicators & commentary (leading/lagging, financial/non-financial, quantitative/qualitative)

Vision & Strategic Issues (VSI)

  • Corporate vision/mission, strategic goals, strategy & business environment
  • Group structure & business segment
  • Corporate/industry developments & strategic issues

Business Plan and Prospects (BPP)

  • Business plan & initiatives
  • Planned capital investment
  • Outlook & future prospects

Risk Assessment & Management (RAM)

  • Identification & assessment of key risks (including VAR, sensitivity analysis, stress testing)
  • Risk management responses/policies/strategies
  • Crisis management & business continuity planning (including succession planning)

Corporate Governance Issues (CG)

  • Director background information (including qualification, experience, other directorships, shareholdings)
  • Management background information (including shareholdings)
  • Director remuneration (including breakdown, bands, specific disclosure)
  • Key executive remuneration
  • Director attendance at meetings
  • Director selection, performance evaluation & remuneration policy
  • Director orientation & training policy
  • Governance committee policies (including audit, nominating & remuneration committees)
  • Fraud and whistle-blowing policy
  • Board opinion of internal controls (including Board rationalisation of internal controls)

Environmental & Social Accountability (ESA)

  • Environmental sustainability performance (including waste management, pollution control, energy conservation)
  • Social performance - employees (including evidence on fair practices, training, non-discriminatory policy)
  • Social performance - wider community (including suppliers, customers, society)
  • Social & environmental sustainability practices, policy & plan

Informativeness, Clarity & Presentation (ICP)

  • Comprehensive and informative (i.e., no omission of crucial & useful information)
  • Clear and well-organized (i.e., good use of diagrams/charts, easy retrieval of specific information)
  • Innovative design & presentation (i.e., attractive, refreshing & novel presentation)

Analysis of Final Assessment Results for Best Annual Report Award


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