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The Pakistan Credit Rating Agency Limited
Press Release

Date
03-Apr-21

Analyst
Kanwal Ejaz
kanwal.ejaz@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 Secure Logistics Group (Private) Limited

Rating Type Entity
Current
(03-Apr-21)
Previous
(03-Apr-20)
Action Maintain Initial
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

Secure Logistics Group (Private) Limited is a growing company engaged in logistics, vehicle management and tracking services. The company has expanded its operations especially in the fleet management domain. The number of vehicles have increased while diversification in terms of type of services have been achieved. The expansion strategy is expected to continue. This was enabled by the vision of the management, which helped in the garnering of fresh capital from known investment houses. The Covid-19 was a challenge and hence it impacted the operations and profitability. Despite this, the company managed to report profitability. The future is prosperous, of which the implications are being evaluated. This could be positive for the trajectory of ratings. The management has a conservative appetite as to borrowings. Having further clarity as to this is also considered positive. The envisaged path is growth in both lines of business, with less reliance on the borrowed funds. Multiple initiatives are being taken to augment the governance and control environment. The governance framework took positive direction as the representative of other shareholders joined the board. This augurs well for the company. The risk absorption capacity and liquidity is expected to help the company in the days to come.
The sector is, however, constrained by the inherent limitations pertaining to the logistics industry emanating from the fragmented nature of the sector and dependence on economic activity. The company has ventured into new segments which will further diversify the revenue base while increased business in the form of new clients is on the horizon. The growth path is defined and ambitious, however, the management is confident to achieve it.
The ratings are dependent on sustained business profile while ensuring profitability, enhanced corporate governance and control environment. The upholding of fiscal discipline is an essential feature.

About the Entity
Secure Logistics Group (Private) Limited (SLG) is a privately owned company, providing logistics, fleet management and tracking services to leading corporates, banks, insurance/ leasing firms and foreign missions.

The Company’s sponsors are seasoned professionals with exposure to private and public sectors. Mr. Pervaiz Khan (Chairman) has three decades experience in Banking and Energy industry. He holds MBA and MIA degrees from Columbia University, USA. Mr. Gulraiz Khan (Chief Executive Officer is a former Army officer with more than ten years’ experience in managing these businesses. He holds a Masters in strategy from USA and MBA from London Business School. They are assisted by qualified and experienced management team.

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.