Press Release

JCR-VIS assigns positive outlook to Entity Rating of Ali Gohar & Company (Private) Limited

Karachi, April 16, 2015: JCR-VIS Credit Rating Company Ltd. has maintained entity ratings of Ali Gohar & Company (Private) Limited (AG&C) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. The previous rating action was announced on 21 January 2014.

The assigned ratings incorporate low business risk and sound financial risk profile of AG&C. Ratings also reflect company’s status as one of the leading national distributor in the country, stable cash flows & sizeable liquidity carried on balance sheet. Moreover, experienced & professional management team, sound IT infrastructure and favorable working capital cycle which results in limited external funding requirements provide support to the ratings.

Revenues of the company have increased consistently over the years. Profitability has witnessed healthy growth in the on-going year due to increase in sales in the specialized healthcare product segment, reduction in distribution cost and incremental income arising from short-term investments. Liquidity profile of the company has strengthened on a timeline basis due to conversion of non-earning assets into marketable securities from funds realized from sale of investment property. Liquidity profile of the company is also supported by stable cash flow from operations. Capitalization levels of the company have strengthened over time on account of internal capital generation and profit retention.

AG&C is one of the leading national level distributors in the country, particularly in the pharmaceutical business. Management team of the company is spearheaded by Mr. Arshad Gohar. Senior management team has remained stable and comprises experienced individuals.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311873.


Javed Callea
Advisor

Applicable Rating Criteria:
Industrial Corporates (October 2003)
http://www.jcrvis.com.pk/images/IndustrialCorp.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright April 16, 2015 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.