Press ReleasePACRA Assigns Initial Social Impact and Performance Rating to CSC Empowerment & Inclusion Programme
|Social Impact and Performance Rating
|Current (13-Dec-22 )
|CEIP has three members, who have each given a guarantee of up to PKR 100,000 in case of a possibility of default.
|The board of directors comprises six members including two independent directors, depicting a sound governance structure. Two board committees with independent representation are also present for adde
|CEIP's management is qualified and experienced, and turnover at senior management level is low. The organizational structure is defined with adequate departmentalization in place.
|CEIP has a publicly available mission statement which clearly outlines the target market and the manner in which CEIP intends to serve the market. A Social Performance Committee may be established at
|As borrowing is the primary source of funding for CEIP, the markup expenses have increased (~46%) more than the markup income (~28%) during FY22 due to a surge in the benchmark rate. The increase in o
|The Company has a low equity base of ~PKR 384mln at end-Jun'22. The PAR 30 ratio has improved in FY22 compared to FY21; however, it is still on the higher side when compared with previous years.
|Key Rating Drivers
|About the Entity
|Not-for-profit organization (Section-42)
|Year of Establishment
|Type of License
|Non-banking Microfinance Company (NBMFC)
| Afnan Iqbal
Methodology | Social Impact and Performance Rating | Sep-22
Sector Study | Microfinance | Sep-22
|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. 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 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.