subject: Call for quality Annual Reports [print this page] Call for quality Annual Reports Call for quality Annual Reports
Mahmood Rafique
Production of quality annual reports based on transparency and disclosures will raise the bar of the Kingdom as a leading banking and financial centre, an expert said yesterday.
"Professional handling of annual reports can fill the gap between perception and reality," Dr. Vijith Kannangara, Chairman of Smart Media told a select group of CEOs and CFOs during the first Power Annual Report CEO luncheon forum held at the Capital Club Bahrain.
"International investors are like migrant birds going from pond to pond. First it was the developed market ponds; next were the emerging market ponds, the latest being the BIRC countries. But even the BRIC countries are fast-approaching their growth ceilings Hence, today these migrant birds are looking at the so-called frontier markets which are comprised of some forty countries including many countries in the Gulf," added Dr. Kannangara, who heads the Annual Report Company.
"The major challenge is the gap that exists between perception and reality. The perception of international investors is that information is scarce, transparency low, governance poor and management weak. Unfortunately, perception is reality," He added.
"Annual reports can play a major role in bridging this gap in improving perceptions. They are the face and the voice of 'Gulf Incorporated".
"The good thing about the current state of play is that annual reports in the Gulf tend to be simple and devoid of a barrage of compliance material that dilutes the communication. Instead, the Gulf is well positioned to go beyond benchmarking and develop a new breed of annual report that is fitting for the unique situation in the Gulf as well as addresses the burning issues that most users of annual reports the world over are faced with," he explained.
"This is not an imposing task and not all companies in the Gulf would make for suitable candidates either. It will be those new age companies in the Gulf who have a burning desire to project themselves as second to none in a global context, that would lend themselves to such an initiative."
