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WINNERS AT SCA 2018

Companies with $1 billion and above in market capitalisation

Gold ico Gold Sembcorp Industries Ltd
silver ico Silver Olam International Ltd
bronze ico Bronze Oversea-Chinese Banking Corporation Ltd

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

Gold ico Gold Banyan Tree Holdings Ltd
silver ico Silver Del Monte Pacific Ltd
bronze ico Bronze Indofood Agri Resources Ltd
bronze ico Bronze QAF Ltd

Companies with less than $300 million in market capitalisation

Gold ico Gold Qian Hu Corporation Ltd
silver ico Silver Baker Technology Ltd
bronze ico Bronze TEE International Ltd

REITS & Business Trusts

Gold ico Gold CapitaLand Commercial Trust
silver ico Silver CapitaLand Mall Trust
bronze ico Bronze Mapletree North Asia Commerical Trust

First-Year Listed Companies

merit ico Merit Frasers Logistics & Industrial Trust
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Objectives of the Award

  • To encourage excellent corporate reporting 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;
  • The Best Annual Report Award was introduced to increase awareness, through the encouragement of social responsibility reporting that businesses and organisations are responsible to the community both as employers and corporate citizens;
  • The Best Annual Report Award also gives recognition to maiden annual reports of First-Year Listed companies that show an excellent standard of disclosure. The Judging Panel hopes that this will encourage First-Year Listed companies to raise the standard of their annual report disclosures.

Categories of the Award

The Award 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 of S$300 million to less than S$1 billion;
  • Listed companies with market capitalisation of less than S$300 million;
  • REITS and Business Trusts; and
  • First-Year Listed c ompanies

Screening Process

Annual reports of all SGX-listed companies will go through a two-stage screening process. All annual reports are screened preliminarily by reference to the presence of key information stipulated in the Best Annual Report Award preliminary screening criteria.

The Best Annual Report Award Judging Panel subsequently assesses each shortlisted annual report against the detailed marking criteria, taking into account the quality and presentation of information.

Preliminary Screening Criteria

The annual reports are first screened for the presence of the following information:

  • Discussion on corporate liquidity or capital management;
  • Benchmarking commentaries against industry performance/statistics;
  • Value-added statements and disclosure made on productivity measure and performance measures;
  • Separate CEO/management’s statement;
  • Earnings prospects by division/territory;
  • Discussion of key business risks;
  • Discussion of risk management strategies;
  • Presence of quantitative analysis of identified risks including value-at-risk (VAR) analysis
  • Remuneration of directors disclosed in nearest dollar amount and not in bands;
  • Remuneration of key management personnel disclosed in dollar amount and not in bands;
  • Board succession planning/long tenure of independent directors;
  • Policy/position on board diversity;
  • Sustainability report disclosures included in annual report:
    • Environment;
    • Community and social programmes;
  • Quantification of sustainability performance;
  • Investor/shareholder relations activities;
  • Employee diversity disclosure (Gender, age, education, nationality, people with special needs, etc.);
  • (Specific to REITs and Business Trusts) Disclosure of business-specific measures of historical performance for portfolios (such as trademix by area or trademix by gross rent of lease expiry profile etc.);
  • (Specific to REITs and Business Trusts) Presence of financial highlights commentary (discussions on financial statistics presented such as ROE, dividend cover, etc);
  • (Specific to REITs and Business Trusts) Discussion on corporate liquidity or capital management (description of loan and borrowing profile);
  • (Specific to REITs and Business Trusts) Disclosure of group and strategic directions ;(clear articulation of vision, mission statement, goals and objectives);
  • (Specific to REITs and Business Trusts) Disclosure on organisation/trust structure;
  • (Specific to REITs and Business Trusts) Disclosure of REIT/trust manager relationship.

Detailed Marking Criteria

Annual reports shortlisted from the preliminary screening process are examined in detail for the quality of information disclosed according to the assessment criteria in the following areas:

Performance Review (PR)

  • Historical analysis and ratios (Quantitative data: 5-year, 10-year trends etc.);
  • Commentaries on historical analysis and ratios (5-year, 10-year trends etc.);
  • Analysis and commentaries on current year financials – quarterly, half-yearly, segment analysis;
  • Commentaries on capital management (gearing and debt equity ratios, managing borrowing, refinancing, etc.);
  • Benchmarking against competitors and industry performance;(e.g. total shareholder returns, share prices);
  • Value-adding statements and productivity ratios;
  • (DPU, distribution yields, gearing, interest cover);
  • Discussion/disclosure on strategies to improve productivity;
  • (Specific to REITs and Business Trusts) Description of portfolio/asset characteristics (e.g. valuation as at latest date, committed occupancy, tenancy mix, top tenants, lease expiry profile);
  • (Specific to REITs and Business Trusts) Detailed description on yield accretive acquisitions and asset disposals (including disclosure of acquisition/disposal fee payment), asset enhancement initiatives, lease renewals.

Vision and Strategic Issues (VSI)

  • Corporate vision/mission, strategic goals, strategy and business environment;
  • Discussion on how the Group has performed in relation to its vision and mission;
  • Group structure and business segment;
  • Corporate/industry developments and strategic issues;
  • Discussion on the Group’s dividend policy.

Business Plan and Prospects (BPP)

  • Business plan and initiatives (e.g. acquisition pipelines) and planned capital investment (forward looking);
  • Outlook and future prospects, including prospects by territory and business division.

Risk Assessment and Management (RAM)

  • Discussion on risk appetite and, risk-aware culture;
  • Identification and assessment of key risks (including VaR, sensitivity analysis, stress testing);
  • Risk management responses/policies/strategies;
  • Crisis management and business continuity planning

Corporate Governance Issues (CG)

  • Discussion on the Group's policy and practices on diversity within the Board;
  • Board assessment of director's independence;
  • Board succession planning for independent directors;
  • Succession planning for key management;
  • Management background information (including shareholdings);
  • Director remuneration (including breakdown, bands, dollar amounts);
  • Key executive remuneration (including breakdown, bands, dollar amounts);
  • Director orientation and training policy and processes;
  • Key executive and director performance, evaluation and remuneration policy and processes;
  • Fraud and whistle-blowing policy and processes (including procedures and any reported instances);
  • Board opinion of internal controls (including Board's basis for the opinion);
  • Commentary on the Group’s key audit risks areas (e.g. audit committee/corporate governance report/a separate report);
  • (Specific to REITs and Business Trusts) Relationship between sponsor, manager/trustee-manager and asset/property manager (roles/checks and balances residing with each entity, resolution of conflicts of interest, particularly if there are common directors).

Environmental and Social Accountability (ESA)

  • Social and environmental sustainability practices, policy and plan;
  • Quantitative and qualitative disclosures on environmental sustainability performance (including waste management, pollution control, energy conservation);
  • Quantitative and qualitative disclosures on employees (including evidence on fair practices, training, non-discriminatory policy, health and safety policies);
  • Quantitative and qualitative disclosures on wider community (including suppliers, customers, society);
  • Discussion of the Group’s sustainability targets and performance and its progress in meeting those targets and performance;
  • Discussion of sustainability reporting with reference to a GRI framework or reference to a separate sustainability report. (Additional points awarded for independent assurance on the report).

Informativeness, Clarity and Presentation (ICP)

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

CONTACT

Ms Zoey Xie

CA (Singapore)
Manager, Technical Advisory and Professional Standards

Institute of Singapore Chartered Accountants

60 Cecil Street, ISCA House,
Singapore 049709

Telephone: 65-6749 8060
Facsimile: 65-6749 8061
Email: zoey.xie@isca.org.sg

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