Press Release

JCR-VIS Reaffirms Entity Ratings of Sadaqat Limited at A-/A-2

Karachi, April 15, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has re-affirmed the entity ratings of Sadaqat Limited (SL) at ‘A-’ (Single A Minus) for medium to long-term and A-2 (A two) for short-term. Outlook on the medium to long-term rating is ‘Stable’.

The ratings take into account SL’s sound financial profile emanating from healthy margins and continuing growth in sales. The company is steadily lowering its leverage mainly through increasing its equity base through profit retention. SL is in the process of getting listed by way of an offer for sale through both book building process and public offering. This would increase disclosure requirements and subsequently strengthen corporate governance practices. In spite of the ongoing challenges faced by the textile sector, the company has remained resilient of shocks mainly on the back of enhanced marketing efforts.

Amidst cyclical nature of the textile industry, SL may diversify its income stream in order to minimize the related business risk. The current revenue base features concentration in USA & UK markets. While the majority of export sales have been made to wholesalers over the last few years, the company is making efforts to increase retail sales which would assist in improving margins.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (sabeen@jcrvis.com.pk) or Mr. Maimoon Rasheed (maimoon@jcrvis.com.pk) at 021-5311861 and 042-6610681-84 or fax to 021-5311873.


Safdar Kazi
Director

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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .