Lahore, December 30, 2019 (PPI-OT): Usmani International Associates (UIA) has been operating in the construction industry for the last many decades. The governance framework is expected to evolve, going forward. The reported profitability in terms of gross margin is adequate, though operational efficiency needs to be harnessed. The topline has shown decline after three years of continuous growth, having impact on the ratings.
Construction business is dependent on award of public works and initiatives taken by the private sector, muted activity is witnessed therein. The control environment may be strengthened by harnessing the audit quality and adopting quarterly accounts. The audited accounts of the company for FY18 reflect sustained business and financial risk profile of the entity. The audit for FY19 is yet to be concluded. The time being taken is a concern.
The ratings are dependent upon the sustained positioning of the company in the industry. Adherence to sound financial discipline while strengthening debt servicing capacity is pivotal for the ratings. Improving governance and control environment is also important.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Category: General Business News