The Pakistan Credit Rating Agency Limited
27-Jun-18
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Entity Ratings of Hassan Ali Rice Export Company
| Rating Type | Entity | |
|
Current (27-Jun-18 ) |
Previous (12-Jan-18 ) |
|
| Action | Maintain | Initial |
| Long Term | BBB | BBB |
| Short Term | A2 | A2 |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating incorporates the strength of the sponsors of Hassan Ali Rice as reflected in the
business structure of the group (Hashwani Group of Companies) and overall growing principles of the business. Hassan Ali is a big player, primarily focused on export market, with customers expanding over multiple countries. HAREC doesn't have any long term debt. The Working Capital borrowing are aligned to business cycle, though timely repayment from the client is crucial to settle the obligations. HAREC is a sole proprietorship hence, the room for improvement in governance structure is significant.
The ratings are dependant upon the maintained business volume and Profitability. Adherence to sound financial discipline while strengthening debt servicing capacity (cash overages) is vital for the rating.
About
the Entity
Hassan Ali Rice Expor t Company (HAREC) is a sole proprietorship established on June
15, 1994. The company is engaged in processing and trading business of rice. HAREC is one o f
the largest exporters of rice in the domestic landscape. HAREC is one of the founding
members of Rice Export Association (REAP). Mr. Abdullah Akbar Ali Hashwani spear heads the company’s operations along with his team