Jasons Commodities (‘the Business’) was incorporated in Dec-2012 as a Sole Proprietorship.

After building a strong foothold in the confectionery industry, Mr. Amin Jessani and his son, Danish Jessani, expanded their business portfolio by venturing into the rice sector. This strategic expansion led to the establishment of a modern rice mill with a processing capacity of 20 metric tons per hour, which marked the foundation of Jasons Commodities.

Jasons Commodities focuses on processing semi-processed non-basmati rice for export, primarily serving the Chinese and African markets. In recent years, the business has experienced mixed levels of performance.

The Business is wholly owned by Mr. Danish Jessani, who operates as the sole proprietor. As the only owner, he exercises complete authority over the Business, encompassing its operations, financial management, and strategic decisions. In this role, Mr. Jessani bears full responsibility for all profits, losses, and liabilities of the Business. This sole proprietorship structure enables centralized and direct decision-making, while also placing all associated risks and rewards entirely on him.

The Business is entirely owned and led by its CEO, Mr. Danish Jessani, who retains full ownership and control. This structure promotes organizational stability, as all strategic and operational decisions are centralized under his leadership. Sole ownership enables efficient decision-making and clear accountability, supporting the stability and continuity of the Business. As the single decision-maker, Mr. Jessani is able to uphold a consistent vision, fostering long-term growth and sustainability.

Mr. Danish Jessani and his family have a long-standing legacy in the confectionery and export industries, with over thirty years of combined experience. They have recently applied this extensive industry knowledge to the rice sector, utilizing their proven business expertise and established international market networks.

Apart from Jasons Commodities, the sponsors have other business ventures established in food and manufacturing of plastic bags. The sponsor holds sufficient net worth to support the Business in times of distress.

Being a sole proprietorship, the Business functions without a formal corporate governance framework. Consequently, it does not have boards of directors, committees, or other governance bodies commonly present in larger corporate organizations.

The Business is entirely owned by Mr. Danish Jessani, who operates as the sole proprietor. As the exclusive owner, he has complete control over all aspects of the Business, including operations, financial management, and strategic decisions. In this role, Mr. Jessani assumes full responsibility for all profits, losses, and liabilities of the Business.

The Business currently does not have a formal Board structure, which is important for offering strategic oversight and governance. Establishing a Board is essential to ensure accountability, support informed decision-making, and maintain compliance with applicable regulations.

The external auditors of the Company, Hussain Lakhani & Co. Chartered Accountants, have expressed an unqualified opinion on the financial statements of the Company for the year ended June 24. The firm is neither QCR rated nor in SBP’s panel of auditors, while audit of Jun'25 is underway.

The Business follows a linear organizational structure, centered mainly on two core functions: Production and Finance. This structure establishes a clear chain of command with defined authority and decision-making responsibilities. The Production function oversees key operational processes to ensure efficient manufacturing and service delivery, while the Finance function handles financial planning, reporting, and resource allocation. Although this streamlined structure can improve efficiency and clarity in small-scale or specialized operations, it may restrict cross-functional collaboration and adaptability as the Business expands or diversifies.

Mr. Danish Jessani, the Chief Executive Officer (CEO) of the Business, has played a central role since its founding. With more than 21 years of experience in the rice and confectionery industries, he brings extensive industry knowledge and strategic leadership to the organization. His expertise has been key in driving the Business’s growth and success.

The Business currently operates without formal management committees. Instead, the management team meets on an ad-hoc basis to address operational requirements and maintain the efficiency of Business activities. While this approach allows for flexibility and quick responsiveness, the lack of structured committees may restrict strategic, collaborative decision-making and oversight. Introducing formal management committees could strengthen governance, improve decision-making processes, and support long-term organizational effectiveness.

The Business relies on Excel-based reporting systems, generating reports as needed to support management decision-making. While this approach offers flexibility for addressing specific information needs, it may lack the efficiency and scalability of automated or integrated reporting solutions.

The Business currently does not have an internal audit function. This absence may hinder the organization’s ability to independently evaluate and ensure the effectiveness of its internal controls, risk management practices, and overall operational efficiency.

Rice is a strategically significant crop within Pakistan’s agricultural economy, serving as both a staple food and a major source of export earnings. In FY25, the agriculture sector accounted for approximately 23.5% of national GDP, with crops contributing 32.8% to agricultural value addition. Within this, rice represented around 11.7% of important crops and contributed an estimated ~0.6% to overall GDP, underscoring its macroeconomic relevance despite being a single-crop segment. Pakistan produced approximately 9.7 million metric tons (MT) of rice in FY25, reflecting a 3.0% YoY decline due to lower yields (~2.5 MT/Ha) despite an expansion in cultivated area to ~3.9 million hectares. Punjab and Sindh together accounted for nearly 90% of total production, highlighting strong geographic concentration and exposure to regional climatic shocks. From an external sector perspective, rice remained one of Pakistan’s most important export commodities. Rice exports totaled ~5.8 million MT in FY25, generating export revenues of approximately USD 3.35 billion. Although export value declined 14.7% YoY, rice still contributed ~10.5% of Pakistan’s total export proceeds, ranking among the top three exportable commodities.

The business is an emerging and growing competitor in the country’s rice export market, steadily establishing its presence and enhancing its market share within the industry. However, in the overall rice sector at present, the relative position of Jason Commodities is considered adequate.

The business primarily generates its revenue through the export of non-basmati (IRRI 6) rice to China and African countries. Export sales constitute the core of its revenue stream. During FY25, the business achieved total sales of PKR 20,841mln, reflecting ~14.7% growth compared to PKR 18,166mln in FY24, while the local sales holds a insignificant share and clocked at PKR 171mln.

Discussing the margins, the business has successfully sustained its profitability margins, demonstrating effective operational and financial management. During FY25, Despite the sales incline, the business witnessed a dip in gross margins, owing to the significant incline in the forwarding costs. Consequently, the operating margins remained aligned with prevailing inflationary pressures during the period. The business’s net income clocked at PKR 306mln (FY24: PKR 766mln), reflecting a moderation in profitability compared to the prior year

During the year, the business undertook significant capital expenditure, including the acquisition of land, and recorded an increase in plant and machinery to meet current operational needs and to cater future growth. 

The business's working capital is supported through the short-term Export Refinancing Facility Inventory turnover efficiency marginally declined during FY25, with inventory days reducing to 10 days (FY24: 9 days). Likewise, trade receivable days stood at 19 days during FY25, compared to 17 days in FY24. During FY25, the business’s net working capital days stood at 28days (FY24: 26days), whereas the short-term leverage stood at 18.1% (FY24: 34.0%), depicting sufficient room for borrowings. 

The Company’s FCFO witnessed a sizable dip and stood at PKR 371mln during FY25 (FY24: PKR 855mln), on account of the lower EBITDA. However, finance cost decreased to PKR 51mln during FY25 (FY24: PKR 87mln).  The business interest coverage ratio decreased and stood at (FY25: 7.3x, FY23: 9.8x).

that the business's total Debt stood at PKR 1,614mln during FY25 (FY24: PKR 1,448mln), entirely consisting of short-term borrowings. The Business's leverage stood at 51.3% during FY25 (FY24: 53.9%), indicating that the business is operating under a highly leveraged capital structure. The company's reliance on short-term debt presents a key credit risk. Maintaining adequate liquidity and ensuring consistent cash flow generation will be crucial for the company to successfully manage its debt obligations and maintain a stable credit profile.