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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 TATA Textile Mills Limited

Rating Type Entity
Current
(28-Mar-21 )
Previous
(28-Mar-20 )
Action Withdraw Maintain
Long Term - A-
Short Term - A2
Outlook Negative
Rating Watch - Yes

Subsequent to the management's decision to discontinue the entity ratings of TATA Textile Mills Limited, PACRA withdraws the entity ratings of TATA Textile Mills Limited with immediate effect.
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About the Entity
Tata Textile Mills limited, incorporated in 1991 and a Public Listed Company, is engaged in the manufacturing and sale of different varieties of yarn. In early 90s, TATA group setup Tata Textile Mills Limited as part of expanding its emerging business base. The corporate office of the Company is located at Textile Plaza, M.A. Jinnah Road, Karachi, whereas, vicinity of the plants is in District Muzaffargarh, in the province of Punjab. The Company is operating 2 manufacturing units with a combined capacity of 44,400 spindles.
The CEO, Mr. Shahid Anwar Tata, along with other family members and associated companies, collectively owns majority (~67%) shares of the Company. The remaining shareholding of the Company is held by mutual funds (~11%) and general public (~22%). The overall control of the Company vests in seven member board of directors, including the CEO. Currently, the board comprises two executive directors, four non-executive, and one independent member. 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.