The Pakistan Credit Rating Agency Limited
28-Mar-21
Analyst
Sehar Fatima
sehar.fatima@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Ratings | Jun-20
- Methodology | Correlation Between Long-Term And Short-Term Rating Scale | Jun-20
- Criteria | Rating Modifier | Jun-20
Related Research
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PACRA Withdraws Entity Ratings of Salfi Textile Mills Limited
| Rating Type | Entity | |
|
Current (28-Mar-21 ) |
Previous (28-Mar-20 ) |
|
| Action | Withdraw | Maintain |
| Long Term | - | BBB |
| Short Term | - | A3 |
| Outlook | Negative | |
| Rating Watch | - | Yes |
Subsequent to the management's decision to discontinue the entity ratings of Salfi Textile Mills Limited, PACRA withdraws the entity ratings of Salfi Textile Mills Limited with immediate effect.
-
About
the Entity
Salfi Textile Mills limited, incorporated in 1968 and a public listed company, is engaged in the manufacturing and sale of different varieties of yarn. In 1984, Tata family acquired the company and took charge of its management. The corporate office of the Company is located at Textile Plaza, M.A. Jinnah Road, Karachi, whereas, vicinity of the plants is in Landhi Industrial Estate in the Province of Sindh. The Company is operating 2 manufacturing units with a combined capacity of 36,708 spindles.
The CEO, along with other family members and associated company (Island Textile) collectively own majority (~91%) shares of the Company. The remaining shareholding is held by mutual funds (~3%) and general public (~6%). The overall control of the Company vests with seven members board (board of directors), including the CEO – Mr. Adeel Shahid Tata. Currently, the board comprises two executive directors, four non-executive directors and one independent director. Mr. Anwar Ahmed Tata is the Chairman of the board. He has diverse experience in the field of textile sector, bringing specialized and comprehensive experience and knowledge to the board.