PREAMBLE
The Corporate Excellence Award was instituted by MAP in 1982 with the sole aim to recognizing and honoring companies showing outstanding performance and demonstrating progressive and enlightened management practices.

This Award was earlier applicable to listed companies divided into Industrial and Financial categories. Now the Award is open to any participant which meets MAP’s evaluation criteria. In recent past, unlisted public companies and not for profit organizations have participated in the Award.

The Industrial and Financial category companies which have qualified have been further sub-divided into following sectors based on present classification adopted by Karachi Stock Exchange:

PHASE-1

Short-Listing On Dividend Payment

The primary qualifying criteria of first short-listing companies is payment of at least aggregate of 30% dividend (Cash and / or Bonus Shares) over the last three years.

PHASE-2

Detailed Financial Evaluation

Industrial Category
Phase 2 consists of detailed financial evaluation of the companies short-listed on the basis of the primary criteria. This evaluation is done from their annual reports for the last three years by applying following ratios, each having equal points from an aggregate of 50 points.

1. Return on Capital Employed
2. Asset Turnover Ratio
3. Earning Per Share
4. Acid Test /Quick Ratio
5. Ratio of Market Value to Book Value of Share

The Financial Category companies’ 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:

TIME WEIGHTAGE OF RATIOS
The financial evaluation covers the period of preceding three years in order to absorb the effects of fluctuations and also to recognize the impact of long term policies and strategic decisions. The following weightage is assigned to the results of financial evaluation.

Year        N                           4
Year        N – 1                     2
Year        N – 2                     1

PHASE-3

Management Practices Appraisal

The next step in the assessment process is appraisal of management practices of the companies qualifying the financial assessment. Top five (5) companies in each KSE sector are required to complete the management appraisal questionnaire.

In order to facilitate marking the questions have been divided into following management areas:

PHASE-4

Top Management Meetings
On receipt of the completed questionnaire, two-member MAP team is appointed for site visit and detailed meetings with top management of each short-listed company. The purpose of these meetings is to verify and obtain a vital, face to face view of the responses to questionnaire. During these meetings the MAP team not only discusses their management practices but also witnesses the evidence of claims made in the questionnaires as well as policy documents. After the top management meetings the questionnaires are marked.

PHASE-5

Final Tabulation of Results
The marks obtained by the companies for Management Practices Appraisal on the basis of 1000 marks are recalculated on the basis of 200 points, 50 for financial evaluation and 200 points for management practices appraisal, thus maintaining the 20:80 weightage for each aspect. The final result is presented to the Corporate Excellence Award sub-committee which forwards the same to the MAP Executive Committee for approval and announcement.


AWARDS
Under the Awards Scheme, there is one circulatory Trophy for the overall winner in each category namely, Industrial Category and Financial Category. In addition, there are trophies for the top companies in the remaining sectors of both categories.

DOWNLOADS

Questionnaire For Appraisal Of Management Practices

Recipients Of Corporate Excellence Awards 1982-2008
Business and Industrial Category

Corporate Excellence Certificates 1982-2009

Winners Of The 27th CEA & C