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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Mar-21

Analyst
Sehar Fatima
sehar.fatima@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 Salfi Textile Mills Limited

Rating Type Entity
Current
(28-Mar-21)
Previous
(28-Mar-20)
Action Withdraw Maintain
Long Term - BBB
Short Term - A3
Outlook Negative
Rating Watch - Yes

Subsequent to the management's decision to discontinue the entity ratings of Salfi Textile Mills Limited, PACRA withdraws the entity ratings of Salfi Textile Mills Limited with immediate effect.
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About the Entity
Salfi Textile Mills limited, incorporated in 1968 and a public listed company, is engaged in the manufacturing and sale of different varieties of yarn. In 1984, Tata family acquired the company and took charge of its management. The corporate office of the Company is located at Textile Plaza, M.A. Jinnah Road, Karachi, whereas, vicinity of the plants is in Landhi Industrial Estate in the Province of Sindh. The Company is operating 2 manufacturing units with a combined capacity of 36,708 spindles.
The CEO, along with other family members and associated company (Island Textile) collectively own majority (~91%) shares of the Company. The remaining shareholding is held by mutual funds (~3%) and general public (~6%). The overall control of the Company vests with seven members board (board of directors), including the CEO – Mr. Adeel Shahid Tata. Currently, the board comprises two executive directors, four non-executive directors and one independent director. Mr. Anwar Ahmed Tata is the Chairman of the board. He has diverse experience in the field of textile sector, bringing specialized and comprehensive experience and knowledge to the board.

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.