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'NACRA Helps Improve Reporting Standards'
Released by : New Straits Times
Date : 4 December 2004
THE standards of
annual reports have improved tremendously over the years since the inception of the
National Annual Corporate Awards (NACRA) in 1990.
Companies, according to the Nacra 2004 organising committee chairman Ken Pushpanathan,
have become more conscious of the quality of their annual reports and that Nacra has
become more competitive each year.
The annual event, which gives honour and recognition to those organisations which have
achieved excellence in annual corporate reporting, is jointly organised by the Malaysian
Institute of Management, Malaysian Institute of Accountants and the Malaysian Institute of
Certified Public Accounts.
“The annual report is an important tool of communication as it serves as a
comprehensive documentation of a company’s financial performance, accounting and
corporate information.
“This all-important publication provides companies with the opportunity to enhance
and establish their relationships with the various stakeholders, who range from, among
others, the shareholders, investors, employees, creditors and lenders, financial analysts
and the Government,” Pusphanathan said.
Over its 14-year history, the criteria for Nacra have continuously been reviewed and
enhanced each year to encourage the disclosure of all material and relevant information
beyond the statutory requirements.
“The stringent criteria have raised the standards of annual reports over the years
and I am glad to say that the efforts and commitments of the organising bodies in
propagating this competition have been rewarded,” he added.
The Nacra competition is open to all companies incorporated or registered in Malaysia,
both listed and unlisted, as well as the public sector and other organisations established
in Malaysia.
As of December 31 2003, a total of 846 companies were listed on the Bursa Malaysia Bhd and
Malaysian Exchange of Securities Dealing & Automated Quotation Bhd (Mesdaq).
Of the total, 565 companies, or 67 per cent, were listed on the main board; 249 companies,
or 29 per cent, on the second board; and 32 companies, or 4 per cent, on the Mesdaq.
Out of this, only 70 companies, or 8.2 per cent, passed the Nacra preliminary screening
and qualified for detailed adjudication.
These consisted of 68 companies, or 12 per cent, of the companies from the main board and
2 companies, or 1 per cent, from the second board.
None of Mesdaq-listed companies qualified.
Lam Kee Soon, the Nacra 2004 Adjudication Committee chairman, said most companies failed
to qualify for detailed adjudication due to the absence of a Bahasa Malaysia version of
the annual reports.
Having Bahasa Malaysia version is a pre-requisite for participation in the Nacra
competition.
Some companies also failed to disclose their financial highlights and historical summary
for the past three years.
They also fail to qualify because of the incomplete disclosure of their audit committee
information.
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