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The Pakistan Credit Rating Agency Limited
Press Release

Date
27-Jun-19

Analyst
Raniya Tanawar
raniya.tanawar@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 Maintains Entity Ratings of Engro Eximp Agriproducts (Pvt.) Limited

Rating Type Entity
Current
(27-Jun-19)
Previous
(27-Dec-18)
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings reflect the strength of ownership structure of the company: Engro Eximp is a wholly owned subsidiary of Engro Corp, the parent company and one of the largest conglomerate in Pakistan (rated AA+ by PACRA). The CEO of Engro Corp is also the Chairman of Engro Eximp. Ratings take comfort from the strong corporate governance framework of the group. The company has successfully managed to achieve its break even in later CY18. Profits have sustained since then, after suffering from huge losses in the past. Reversal of previously occurred impairment losses bears a significant contribution towards the profits. Dealing in a product – ‘basmati’- a high priced commodity has assisted the company in avoiding the unfavorable effects of the industry. The financial risk profile has also recovered adequately.
The ratings are dependent upon growth in business volume and redemption of profits. Adherence to sound financial discipline while strengthening debt servicing capacity through improved cash position is vital for the ratings. Positive outcome of the future projects and sustainability of profits remain a catalyst for the business

About the Entity
Engro Eximp Agriproduct (Pvt.) limited, incorporated in 2010, is a wholly owned subsidiary of Engro Corp. The board of Engro Eximp is chaired by Mr. Ghias Khan – CEO Engro Corp. The board of Engro Eximp Agriproduct (Pvt) Ltd comprises three members and Mr. Khusrau Nadir Gilani is the CEO of Engro Eximp. Mr. Gilani is an experienced professional with an overall experience of more than two decades and has deployed his services at director level in Engro Eximp previously.

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.