PAR has been introduced in order to cater to the shortfalls in respect of following key needs which the Legacy systems of reporting by SLPEs do not meet:

1. An effective performance evaluation requires pre-agreed benchmark targets against performance indicators;
2. The performance indicators have to be targeted at realistic / challenging benchmark / industry standards;
3. The absence of a ranking system which needs weightings for the various dimensions of performance fails to lend itself to a periodic objective and meaningful performance review by the Competent Authority in the limited time available;
4. Present definitions of Key Result Areas (KRAs) observed to be grossly inappropriate in the context;
5. KRAs need to be determined keeping in mind the objectives of the enterprise as well as nature of industry to which it belongs to;
6. The fact that certain PSEs have an element of activity with a social objective. The formats need to appropriately provide for these nuances.

PAR Concept, overview and countours:

1. Simple, non-elaborate consultative process for determining KRAs, performance benchmarks.
2. A clear articulation of the rating components weights and translation mechanism into grades.
3. A timely, transparent and objective administration by PED group.
4. Final rating be awarded by a small committee formed by the PED which may also involve independent financial / rating experts.

PAR Monthly Report:

1. Consisting of operating performance statistics with brief ratio analysis.
2. Would only involve key financials and statistical information.
3. Summary of this would be presented to the Honorable Chief Minister.

PAR Quarterly Report:

1. A Performance self appraisal by concerned PSE.
2. Would extend to key result areas, corporate governance, indebtedness to state along with rating for the quarter as well as cumulative results.
3. All cases below particular grade require PED and Administrative Department review and generate an Exception Report.
4. Summary of this would be presented to the Honorable Chief Minister.

PAR Annual Report:

1. Comprehensive annual performance review by PED including Snapshot of quarterly report, specific action plans for defaulting PSEs.
2. In cases of PSE falling short of targets though having reached a bankable grade, a diagnosis statement and an action plan would also be included in the Annual Performance Review Report.

A format has been designed to collect information from SLPEs on the following parameters:

• Performance under Key Result Areas
• Productivity Indicators
• Consolidated Cash Flows
• Ratios
• Monthly Expenditure Statement
• Progress on Audit & Audit Paras (C & AG)
• Training
• CEOs perceptions