Lahore, June 27, 2019 (PPI-OT): The ratings reflect the strong experienced background of the partners. The partners of the business are well equipped with the related sector knowledge. The strategy of the partnership encompasses maximizing the returns through gaining new markets. Currently, Awami is exporting non-basmati rice mainly to African countries. Awami has established two associated companies in Madagascar and Benin during period under review which will add positively to revenue growth.
Turnover of the partnership had shown good growth in past couple of years with consistent generation of healthy margins. As Awami is a partnership, governance structure reflects needs for improvement. Financial risk profile is driven by a bottom line centric approach with a good debt servicing capacity and a leverage capital structure. Debt profile entirely constitutes short term borrowings to manage working capital needs.
The ratings are dependent upon sustenance of margins and revenue growth. 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:
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