Meskay & Femtee Trading Company (Pvt.) Ltd. (‘Meskay or ‘the Company’) was incorporated in Feb-06 as a Private Limited Company as per the Companies Ordinance, 1984 (now Companies Act 2017).

The sponsors entered in the grain trading business in 1990s as sole proprietors. Later, in 1998, Mr. Shahid Tawawala joined the business and formed a partnership concern, named Meskay & Femtee (Pvt.) Ltd. In 2006, Mr. Shahid separated his business and renamed it as Meskay & Femtee Trading Company (Pvt.) Ltd. Initially, the processing plants and warehouses were rented. However, over time, the Company acquired them. Moreover, capacity enhancement and installation of new machinery, over the years, led to the prominence of the Company in the rice exporter's segment of the country. Meskay is currently one of the country's leading rice exporters. The Company, apart from rice, also trades other grains (wheat, corn, and guar) in local and export market.

The Company is primarily engaged in processing/manufacturing and export of grains (rice (Basmati and Irri), corn, guar, and wheat) and all types of agricultural products, trading in agriculture machinery, and accessories, and providing agriculture farming services. Currently, the Company has rice processing capacity of 561,000 MT per annum. The paddy processing plants are installed in Larkana, Shikarpur, Narowall & Pakpattan with a total processing capacity of 54MT/hour. The Company mainly exports rice to Africa, America, Asia, and Europe. During FY24, total quantity sold stood at 268,089MT (FY23: 198,674MT).

Major ownership of the Company resides with Mr. Shahid Tawawalla (~72%); followed by an equal holding between his father, Mr. Wahid F Tawawalla(~14%), and his wife, Mrs. Huma Darugar(~14%)

The Company is wholly owned by the sponsoring family, which has maintained consistent ownership and oversight over time. This concentrated ownership structure is viewed as stable, reflecting long-term commitment, strategic alignment, and continuity in governance and decision-making.

The sponsors possess over two decades of experience in the rice export industry, having actively navigated multiple business and economic cycles during this period. Their long-standing involvement demonstrates a deep understanding of the sector, resilience in the face of market volatility, and the ability to adapt business strategies in response to changing domestic and international trade dynamics.

The Company derives significant financial strength and strategic support from its affiliation with a well-established group. This association provides access to shared resources, operational synergies, and financial backing, enhancing the Company’s credit profile, liquidity position, and overall ability to withstand market fluctuations.

The Company is governed by three Directors, Mr. Wahid F Tawawalla, Chairman of the Board, Mr. Shahid Tawawalla, CEO, and Ms. Huma Darugar. However, BoD structure needs to be streamlined.

Mr. Wahid F. Tawawala ,the Chairman of the Board is having an overall experience of over 3 decades and associated with Board since inception. While the other sponsoring individuals, Mr. Shahid, the CEO, holds an overall experience of over 2 decade, and Mrs. Huma holds an overall experience of almost a decade, serves as Executive Director.

The BoD is assisted by Board Audit Committee, Advisory and HR & Remuneration Committee, comprising 5 and 4 members, respectively. The Committees are headed by Mrs. Huma and Mr. Wahid, respectively, and meets on quarterly basis. The BoD convenes quarterly meetings. Minutes of the BoD and Committee meetings are adequately maintained.

The Company's external auditors, BDO Ebrahim & Co., has expressed an unqualified opinion on the financial statements for year ended Jun-24. The firm has been QCR rated and is placed in category A of SBP's panel of auditors.

The Company has a linear organizational structure and operates mainly through Finance, Accounts, Export and Logistics, Internal Audit, Admin and HR, Supply chain & production. All functional heads reports to the CEO, who then makes pertinent decisions

Mr. Shahid, the CEO, has been associated with the Company since inception and has over two decades of experience in rice and other commodity trading. Mr. Israr ul Haque, the CFO, has an overall experience of 18 years and is associated with the Company since 2020.

The Company has a Finance Committee in place to oversee financial planning and strategic decision-making. While formal committee meetings are held as required, the management team engages in regular, need-based discussions to ensure agile decision-making and operational efficiency. This flexible approach allows the Company to respond promptly to emerging business needs while maintaining sound governance practices.

The Company utilizes customized software solutions tailored to its specific operational and reporting needs, enabling greater control, efficiency, and adaptability across business functions. In addition, standardized reports are generated as needed, ensuring timely access to relevant financial and operational data to support informed decision-making and effective performance monitoring.

The Company has established a formal internal audit function that plays a critical role in promoting transparency, accountability, and effective risk management. This function is responsible for ensuring adherence to internal policies, procedures, and regulatory requirements, while also identifying areas for operational improvement. Through regular reviews and assessments, the internal audit function contributes to strengthening the Company’s internal control environment and governance framework.

The rice sector, a significant contributor to Pakistan's agricultural economy, representing ~3.5% of agricultural value addition and ~0.7% of the nation's Gross Domestic Product (GDP), experienced a substantial surge in production during FY24. This surge, coupled with heightened global demand and a temporary export ban imposed by India, propelled a remarkable ~35% increase in rice production. Consequently, basmati rice exports experienced a significant boost, soaring from $650mln to $876mln in FY24. Furthermore, exports of non-basmati rice witnessed a substantial surge, increasing from $1,498mln to $3,054mln during the same period

The Company is the second biggest rice exporter in the country and holds a significant market share  in terms of revenue.

The Company generates revenue from four primary product segments: Rice, Guar (1%), Wheat (11%), Corn (2%), and Sesame Seeds (2%), with rice accounting for approximately 83% of total revenue. During FY24, the Company’s topline grew to PKR 59.1bln, compared to PKR 23.9bln during FY23. For the first half of FY25 (6MFY25), revenue stood at PKR 21 billion. The increase in revenue is primarily attributable to higher sales volumes and improved pricing, supported by the Company's successful expansion into new markets. Looking ahead, revenues are expected to continue on an upward trajectory, driven by currency devaluation and rising rice prices

During the fiscal year 2024, the Company experienced a significant contraction in its profitability margins. The gross profit margin declined to 10%, a notable decrease from the 16% reported in FY23. This compression was primarily attributable to an escalation in raw material costs. While the gross profit margin showed a slight recovery to 12% in the first six months of FY25 (6MFY25), it remains below the FY23 level. The operating profit margin also witnessed a substantial reduction, falling to 5% in FY24 compared to 11% in the preceding fiscal year. This decline was driven by increased operating expenses. The operating profit margin further contracted to 4% during 6MFY25. Consequently, the net profit margin of the Company was significantly impacted, registering at 1.1% in FY24, a considerable drop from the 4% achieved in FY23. This downward trend in net profitability persisted into 6MFY25, with the net profit margin standing at 1%.

The recent expansion in plant capacity represents a significant step toward enhancing the Company’s long-term sustainability. This increase not only demonstrates the Company’s commitment to meeting growing market demand but also indicates a strategic investment in operational scalability and efficiency. Ongoing improvements in operations through workflow streamlining, technology adoption, and resource optimization enhance productivity, efficiency, and sustainability, reinforcing the Company’s long-term growth strategy.

The Company demonstrated notable improvements in its working capital management during fiscal year 2024. Inventory days significantly decreased to 45 days, a substantial reduction from the 106 days reported in FY23. However, this efficiency appears to have moderated in the first half of fiscal year 2025 (6MFY25), with average inventory days increasing to 71 days. Trade receivable days also exhibited a marked improvement, declining to 9 days in FY24 compared to 24 days in the prior year, indicating enhanced collection efficiency. Consequently, gross working capital days improved considerably to 54 days in FY24 from 130 days in FY23. Conversely, trade payable days contracted significantly to 1 day in FY24, down from 4 days in FY23, suggesting a potentially more aggressive payment policy. This contributed to a substantial improvement in net working capital days, which stood at 53 days in FY24, a significant decrease from the 126 days reported in FY23

The Company's ability to generate cash from its core operations, measured by Funds from Operations (FCFO), saw a healthy increase to PKR 3.2 billion in FY24, up from PKR 2.6 billion in the previous year. At the same time, the expenses related to the Company's borrowing, known as finance costs, decreased from PKR 1.2 billion to PKR 950 million during the same period. As a direct result of higher cash generation and lower borrowing costs, the Company's ability to cover its finance obligations with its operating cash flow significantly improved, reaching a coverage ratio of 3.3 times in FY24, compared to 2.2 times in FY23. This indicates a stronger financial position and a greater buffer to meet its debt payments. However, looking at the first six months of the following fiscal year (6MFY25), this coverage ratio experienced a slight dip to 2.9 times. While still indicative of adequate debt servicing capacity, this moderation suggests that factors influencing either cash generation or finance costs may have shifted, necessitating ongoing attention to ensure the continued strength of the Company's debt coverage metrics.

The Company's total debt increased slightly to PKR 10.0 billion at the end of FY24 from PKR 9.5 billion in FY23, notably decreasing from a higher level of PKR 14.5 billion observed mid-year (6MFY24), with a significant concentration (99%) in short-term borrowings, which elevates refinancing risk. While the Company demonstrated a reduction in its leverage ratio to 51% by the end of FY24, improving from 56% in FY23 and indicating a decreased reliance on debt relative to equity, this metric had risen to 58% by 6MFY25, suggesting potential volatility in the capital structure. The high proportion of short-term debt necessitates careful monitoring of the Company's liquidity and its ability to manage upcoming debt maturities and potential fluctuations in short-term credit markets, despite the year-end improvement in the leverage ratio.