Based on the results of analysis, the corporate governance rating service of JSC Rating Agency of the Regional Financial Center of Almaty awarded the KZ CG 2 rating (forecast positive) to the Kazakhstani Production Holding Company JSC VITA.

The above rating reflects the level of corporate governance of the company as lower than average. The KZ CG 2 rating evidences that there are mid-level risks of major parameters of the corporate governance assessment.

The corporate management level rating represents a comprehensive assessment on five fundamental parameters. They are the ownership structure and influence of the shareholders, general disclosure of information and transparency, financially concerned parties, Council of Directors, and executive body.

While analyzing the corporate governance, the following advantages were brought to light:

◊ Relatively strong positions of the company in the market of the Republic of Kazakhstan. The company will take part in the program of 30 corporate leaders in Kazakhstan
◊ Keeping detailed records and documents effectively and conducting the general meeting of shareholders. The notices as to the conducting of the general meeting of the shareholders shall be made one month prior to the fixed date through the Kazakhstan Stock Exchange’s web-site
◊ In general, the positive forecast on the corporate governance rating is characterized by the aspiration of the company to improve its corporate procedures; this evidenced from the fact the company started to develop and introduce internal normative documents and pass through the annual certification procedure.
Meanwhile, JSC Rating Agency of RFCA revealed some drawbacks, negatively affecting the overall corporate governance rating, among which there are as follows:
◊ Relatively low level of information transparency
◊ Considerable risks of “key persons” in the company
◊ Insufficient level of strategic planning and risk management
◊ Limited role of independent directors in the strategic decision making in the company and no evidence of the Council of Directors’ Committees operation
◊ The absence of provisions that regulate the activity of the structural subdivisions of JSC VITA, Council of Directors, and Board.

Information for editorial offices
The Production Holding Company JSC VITA, set up on December 4, 1991, it is a large producer and supplier in the market of CIS and overseas of vegetable and other oils, butter and butter with vegetable oils added, margarine, mayonnaise, products of soy processing (soy flour, texturates, and oil meals), glucose syrup, sugar, and dairy products.
The major trademarks are Irtysh, VitaSoy, VitaRos, Almpro, VitaMilk, and Ak-Suu Kant.
Currently it has four production facilities, two trade houses and subsidiary service enterprises, located in 30 cities throughout Kazakhstan, Kyrgyzstan, Russia, and Ukraine are part of the holding company.

JSC Rating Agency of the Regional Financial Center of Almaty (further RFCA Rating Agency) was set up in the framework of implementation of the Program of Events to ensure high-quality interaction with international rating agencies with the view of increasing the sovereign credit rating and development of national rating agencies in the Republic of Kazakhstan, approved by the Deputy Prime Minister of Kazakhstan – Minister of Economy and Budget Planning under Decree #003-608 of February 9, 2007, and of the Program of Development of the Regional Financial Center of Almaty till 2010, approved by the Chairman of the Agency of the Republic of Kazakhstan for Regulation of the Activities of the Regional Financial Center of Almaty under Decree № 68 of December 8, 2006.
RFCA RA is the national rating agency, the first in Kazakhstan, that provides services in the area of independent assessment of Kazakhstani companies with the awarding of credit ratings and corporate governance ratings.
The major goal of the RFCA Rating Agency is the contribution to development of the economy in general and of the stock market in the Republic of Kazakhstan in particular through ensuring of transparency and provision of reliable unbiased data on the issuers.