Corporate Reporting: PwC Awards 2013, Banks in Spotlight

Banking groups (Mauritius Commercial Bank, State Bank of Mauritius, and Bank One AfrAsia) abducted four of the six trophies awarded last night at the ceremony Version PwC Awards 2013, Hennessy Park Hotel, Ebene. The other two trophies were awarded to Air Mauritius and Rogers. The competition is judged on the quality of the annual reports of companies, their policy of transparency and good governance and risk management. The jury found himself once again unable to recognize a public company (Public Interest Entity), quality or non-reporting lacking in this case.

André Bonieux, Senior Partner at PwC Mauritius, was emphasized in his opening remarks that despite the progress noted in the way businesses communicate their results, strategies, policies, risk management and good governance, there are always pitfalls they can not avoid or inconsistencies they fail to remove. For him, it is the responsibility of the audit committees of companies, boards of directors and auditors to ensure that reliable and consistent information is communicated to shareholders. He is of the opinion that for Maurice is really seen as a well-regulated country, we must at all costs adopt IFRS (International Financial Reporting Standards).

In this context, André Bonieux suggests that market regulators and the Stock Exchange of Mauritius, the Financial Reporting Council and the Mauritius Institute of Professional Accountants shall consult to consider the flaws and propose solutions accordingly. That shareholders and the public are looking for, he said, it is reliable information on the company and the direction it is taking. The company must know how to communicate information effectively.

With the observations of the jury, Michael Kau Wan Ho, a partner at PwC Mauritius, first indicated that for this 15th edition of PwC Corporate Reporting Awards, 76 annual reports were peeled and 75 websites evaluated. For awarding the trophy for the communication of information on risk management, the jury noted that many companies have discussed the risks but recommended that the assessment process and risk identification is sharper and companies can make the link between the source of risks and measures taken to mitigate and results.

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Regarding communication on measures of good governance, the jury found that only 20% of companies gave details of the remuneration of their directors. The jury believes that companies should clearly explain how they apply the code of good governance and recommends them to pay their non-executive directors not for their attendance at meetings of the Board but for their overall performance.

In addition, the jury welcomed the use of different tools for better online communication of the results of companies, their marketing strategies and the dissemination of useful information to investors. However, it calls for a regular updating of information, a distinction between information and financial information is purely commercial. "Make your default internet medium for reporting," said Michael Kau Wan Ho.

It also spoke of the problems noted with the revaluation of assets of various companies, noting that substantial capital gains are realized. "Significant gains are recorded for one year but the following year the situation is different." Mr. Kau Wan Ho added that this may raise doubts about the qualifications of evaluators and urged parties to "challenge the figures" as well as the criteria and principles of asset revaluations.

The winners of the 2013 edition of PwC Awards in various categories are as follows:

• Risk Management Disclosures: Mauritius Commercial Bank (winner) named: AfrAsia Bank, Bank One and SBM.
• Corporate Governance Disclosures: State Bank of Mauritius Ltd (winner) named: Omnicane, MCB and Sun Resorts.
• Online Reporting: AfrAsia Bank (winner) named: MCB and SBM.
• Other Listed Companies: Air Mauritius (winner): Appointed: Omnicane.
• Financial Institutions: Bank One (winner) named: AfrAsia and Standard Bank.
• SEM-7 Companies: Rogers & Co. (winner) named: MCB and SBM.

REACTIONS

Antony Withers (Chief Executive Banking at MCB):

"The group has won several awards MCB in the previous edition of PwC Awards and did not expect to be honored again. The new award symbolizes the hard work done by the team responsible for risk management but also those responsible for strategy and research to demonstrate progress in this particular area what risk management. '

Chandradev Appadoo (Divisional Leader, Finance & Corporate Affairs, the SBM):

"By removing the trophy for the" Corporate Governance Disclosures ", the SBM group demonstrates that the issue of good governance is at the center of its concerns. We strive within the group to adopt the best practices in terms of good governance and it comforts us that our efforts are recognized. The management of the bank can only rejoice in the determination of everyone. '

Ben Padayachy (Deputy CEO of AfrAsia)

"This award represents both the financial aspect as well as the communication which are both important in terms of our operations. I think it is imperative today to disseminate information efficiently by making good use of available technology. We have, through our electronic platform and our online service, not only promote our products and services but also improve the way we make financial reporting. '

Danny Balluck (Chief Finance Officer of Bank One):

"This is the result of teamwork. By removing this trophy, we demonstrate our seriousness in the way we report the facts and issues for our bank. We have a strong team in the direction of the institution as well as shareholders who provide ongoing support.

It is essential, moreover, we do state in our reports our objectives but also risks we face. '

Ziyad Bundhun (Chief Finance and Investment Executive at Rogers)

"This award makes us cheer for the policy of transparency that we have implemented. We took the sentence in the context of the restructuring of the group following the sale of the assets of CIM Financial Services, to explain to shareholders the impact of this restructuring on future activities and strategies put in place for the future. We gave details on the future direction of the group in the coming years under the leadership of Philippe Espitalier-Christmas, CEO. '

Vijay Seetul (Executive Vice President Finance of Air Mauritius):

"First, it is the result of teamwork. At Air Mauritius, we used to be winning in the allocation of PwC Awards. With the trophy in 2013, we once again demonstrate that there is a team that wants to give maximum information to shareholders and investors. We always want to improve our performance and also demonstrate a potential strategic partner that the company plays the game at the dissemination of information on its operations. '