PACRA Assigns Initial Entity Ratings to Awami Agro Commodities : AsiaNet-Pakistan

PACRA Assigns Initial Entity Ratings to Awami Agro Commodities

June 12, 2018 | General Business News | Share:

Lahore, June 12, 2018 (PPI-OT): The rating demonstrates the strength of family owned partnership and explicit experienced background. The strategy of the company encompasses maximizing the returns through gaining new markets. The partners of the business are well equipped with knowledge of Rice business. Management of the company aims to target markets of non-basmati segment of Rice business.

Product specific approach restricts the company’s turnover, however cost efficiency paves the road for adequate margins. As Awami Agro is a partnership, governance structure reflects needs for improvement. The company has adopted a bottom line centric approach by majorly targeting African regions. There are no long term debts in the books of Awami Agro except export re-finance facility, availed for the first time since its establishment, keeping the leverage in comfortable zone.

The ratings are dependent upon the sustainable profits; low or no leverage adhering to meagre risk profile of the business. Lack of proper board structure is a concern. Sustainable profits, adequate cash flows and working capital cycle are majorly backed by reasonable turnover.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News