Ghulam Rasool & Company (Pvt.) Limited (“GRC” or “the Company”) is a private limited entity incorporated in 1984 under the Companies Ordinance 1984, now aligned with the Companies Act 2017. Its head office is situated in Model Town, Lahore, while operational offices function in Islamabad, Peshawar and Multan – side office in Karachi. The Company holds a no-limit PEC license, enabling it to undertake large-scale EPC and hydropower projects across the country.

GRC traces its origins back to 1965, when it was founded by Mr. Ghulam Rasool. Over six decades, the firm has evolved from a family-run civil works outfit into a corporate entity capable of executing complex infrastructure and hydropower assignments. Its historical footprint includes the construction of major water-management systems, bridges, barrages, tunnels, and a series of hydropower projects which allowed the Company to build a reputation as a dependable contractor for multi-year, high-value public works.

The Company’s operations remain centered around long-duration EPC contracts in irrigation, canals, bridges, tunneling, hydropower civil works, and related infrastructure. GRC continues to participate in several joint operations with Chinese and European partners for project execution, enabling access to technical depth and capital support in large hydropower bids. In recent years, the Company has added new business lines, including shutdown maintenance services for refineries and oil & gas processing plants. Through its subsidiary, Acumen Energy, GRC has also entered the renewable energy space by installing and operating solar power plants whose electricity revenue is now being consolidated. These efforts help moderate the inherent cyclicality of traditional construction revenues and provide supplemental cash flow streams.

Ownership remains concentrated within the sponsoring family, distributed across members of the second and third generation.

There is no formal succession plan, operational responsibilities are clearly segmented, and long-standing familial understanding provides stability in strategic control. No ownership changes are expected in the near term.

The sponsoring family possesses deep, multi-decade experience in civil construction, hydropower EPC, and large-scale public-sector project execution. Senior sponsors remain directly involved in operational and strategic decisions, ensuring strong familiarity with bidding dynamics, technical requirements, and on-ground project challenges. Their long-standing relationships with public agencies, JV partners, and sector stakeholders enhance the Company’s ability to secure and execute complex, high-value assignments.

The financial strength of the sponsors is supported by diversified business interests and property holdings, which collectively reinforce the Company’s capacity to navigate liquidity stress if required.

The Board comprises four members, all from the sponsoring family, holding both ownership and executive responsibilities. The structure ensures continuity and swift decision-making but lacks formal independence. Absence of board committees limits structured oversight of key areas such as audit, risk, and HR.

Board members possess long-standing exposure to the Company’s operations and have accumulated deep understanding of the construction and hydropower sector. Their educational backgrounds and multi-year industry experience contribute positively to strategic decision-making. The Board’s collective experience ensures familiarity with project cycles, client dealings, and technical challenges.

Board oversight is direct and hands-on, with members actively participating in operational, financial, and bidding matters. However, concentration of roles and lack of independent directors restrict the Board’s ability to provide impartial oversight. Documentation of board deliberations is minimal, and governance could strengthen through formalized mechanisms.

The Company’s financial statements are prepared in accordance with IFRS and audited by a Category-A audit firm associated with Prime Global. Audit opinions have remained unqualified, reflecting adequate compliance and accounting discipline. As a private entity, disclosures remain limited to statutory requirements, though the reporting quality is considered satisfactory.

The Company maintains a clearly defined hierarchical structure, with department heads reporting directly to the CEO and directors. Project managers lead dedicated teams of engineers, accountants, and field staff, enabling streamlined execution. The structure supports operational discipline and ensures accountability across functions.

GRC’s management team comprises seasoned professionals with decades of cumulative industry experience across operations, finance, procurement, planning, and technical disciplines. Senior managers possess strong execution capability, having handled large-scale hydropower and canal projects. The stability and expertise of the team enhance the Company’s capacity to manage complex, multi-year assignments.

Management demonstrates consistent ability to deliver projects within contractual timelines despite sector-wide challenges such as cost escalations and delayed fund releases. Operational decisions are swift due to close involvement of senior leadership. Defined roles and experience-driven supervision improve execution efficiency across project sites.

The Company utilizes Primavera P6 for project scheduling and monitoring, integrated with AutoCAD Civil 3D and cash-flow tools. Reporting frequency has improved following transition to an Oracle-based ERP environment. The MIS facilitates real-time project visibility, enabling improved planning and resource allocation.

GRC has established SOPs governing procurement, cash management, equipment handling, and operational approvals. An internal audit function exists, but scope remains limited relative to the Company’s scale. Transition toward Oracle-based controls are expected to strengthen audit trails, reduce operational risks, and enhance compliance.

The construction sector remains highly dependent on PSDP (Pakistan Skill Development Fund) allocations, provincial development budgets, and multilateral-funded hydropower projects. Sector activity continues to face pressure from rising material costs, delayed fund releases, and higher guarantee requirements. Despite a modest macro recovery, liquidity constraints across public-sector clients keep operating conditions challenging for contractors.

GRC maintains a strong competitive standing in the EPC civil engineering segment, supported by decades of experience and specialization in hydropower and irrigation projects. Collaboration with reputable international JV partners enhances technical qualifications and bid competitiveness. The Company’s scale, equity base, and project execution history place it among top-tier contractors in Pakistan.

The revenue base expanded in FY2025, driven by progress on multi-year hydropower and irrigation projects, including Balakot HPP, Gorkin-Matiltan HPP, and Jalalpur Canal Packages. Diversification into shutdown maintenance and solar installations contributes to incremental stability. Revenue visibility remains supported by a sizeable ongoing project portfolio and pre-qualified pipeline.

Margin levels weakened during FY2025 due to input-cost escalation, project phasing, and reduced other income compared to the previous year. Gross margins remain sensitive to subcontracting ratios and procurement timing, while net margins are impacted by higher taxation. The segment’s inherent cost rigidity continues to constrain profitability.

Sustainability is supported by a strong multi-year pipeline, including major hydropower, canal rehabilitation, and infrastructure projects extending through 2028. Recent bid prequalification and JV negotiations indicate continued market presence in high-value segments. Diversification into maintenance services and energy-related ventures further strengthens long-term business stability.

The Company’s working capital cycle remains lengthy due to delayed fund disbursements from government departments, a structural feature of the sector. Receivable days have moderated but remain elevated, while inventory and payable cycles fluctuate with project phases. GRC continues to rely on a mix of internal cash generation and short-term bank lines to bridge timing gaps.

Cash flow coverage remains adequate, supported by improved operating cash flows and manageable finance costs. FCFO comfortably covers financial obligations, reflecting the Company’s strong cash conversion from project executions. Volatility in margins and working capital, however, can cause periodic stress on liquidity buffers.

GRC maintains a very low leveraged capital structure, with gearing levels near negligible due to minimal reliance on long-term borrowings. Strong equity, supported by revaluation gains and retained profits, provides a substantial cushion against business volatility. Off-balance sheet exposure through bank guarantees is high but consistent with the Company’s scale and nature of operations.