Lahore, January 10, 2018 (PPI-OT):M. A. Aleem Khan and Sons (Pvt) Limited (MAAKSONS) has been in the construction industry for many decades. The company has three generations of the sponsoring family in the business and has two main offices – Lahore and Islamabad. The sponsors have a very good understanding of the business. The reporting and functional responsibilities are clearly demarcated. The company has delivered multiple, Army and DHA, projects. MAAKSONS has a no limit contract license. The company’s profitability and leveraging is adequate, and has a mix of funded and non-funded banking lines to facilitate its business. Construction business is dependent on award of public works (Federal and Provincial PSDP + CPEC).
The control environment may be strengthened by harnessing the audit quality and adopting quarterly accounts. The company has a defined strategy of building assets, required for its operations as well as investment purpose, through surplus cash. Debt is procured for the project financing, implying reliance only on short term working capital excluding long term debt. The ratings are dependent on sustaining a steady revenue stream and financial risk profile. Any prolonged downturn in subdued business volume can negatively affect the rating. Good corporate governance practice is considered essential.
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