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The Pakistan Credit Rating Agency Limited
Press Release

Date
14-Feb-20

Analyst
Muhammad Hassan
muhammad.hassan@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Withdraws Entity Ratings of Nishat Chunian Limited

Rating Type Entity
Current
(14-Feb-20)
Previous
(15-Nov-19)
Action Withdraw Maintain
Long Term - A
Short Term - A1
Outlook - Stable
Rating Watch - -

Subsequent to the decision of the management of Nishat Chunian Limited to discontinue the ratings, PACRA withdraws the Entity Ratings of Nishat Chunian Limited with immediate effect.

About the Entity
Nishat Chunian Limited - listed on the Pakistan Stock Exchange - commenced operations in 1991. Nishat Chunian is a vertically integrated composite textile unit manufacturing cotton yarn, fabric and bed wear. The Company operates with 222,708 spindles and 363 looms. The Company has established separate business units for different segments, which include (i) Spinning, (ii) Weaving, (iii) Dyeing and (iv) Stitching, each being a distinct profit center. It is majorly owned by Shahzad Saleem Family (28.4%) and Nishat Group (27.6%) through individuals and group companies. Remaining shareholding is well spread among corporates, financial institutions and general public.

Nishat Chunian has an eight-member board including the Chairman, Mrs. Farhat Saleem, and the Chief Executive Officer (CEO), Mr. Shahzad Saleem. The board comprises of four Non-Executive, two Executive and two Independent Directors. The board is compliant with the Code of Corporate Governance. The CEO, Mr. Shahzad Saleem, a LUMS alumni, is associated with the Company since inception. He is assisted by an able and experienced team of professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.