Techno Time Construction (Pvt.) Limited (“TTC” or “the Company”) is a private limited company incorporated on February 27, 2017. The Company is registered with the Pakistan Engineering Council (PEC) and holds a 'CA' class license with NO LIMIT. TTC operates from two primary offices: its registered office in Lahore and its Head Office situated in Blue Area, Jinnah Avenue, Islamabad, Pakistan. Additionally, the Company maintains various site offices to support its operations.

On May 31, 2017, the Company acquired and took over as going concern the business being carried under the name of "Techno Time Construction" (An AOP) together with all its assets. Shares were issued to the partners in consideration of their net assets partly while the remaining amount was treated as interest free loan from directors to be repaid at the discretion of the Company.

The Company’s core areas of expertise include the construction of bridge structures, roads, interchanges, and flyovers. Additionally, it is committed to executing diverse construction projects, offering construction-related consultancy services, carrying out electrical and mechanical engineering work, and supplying a broad range of goods to government bodies, government-affiliated organizations, and other industries.

The current shareholding structure of Techno Time Construction (Pvt.) Limited (TTC) is distributed among three brothers. Mr. Atta Ullah Khan, the eldest, holds 40% of the shares, while Mr. Zaka Ullah Khan and Mr. Samee Ullah Khan each hold 30%.

TTC has been owned by the founding family since its inception, with no changes anticipated in the near future. While there is no formal succession plan currently in place, a verbal understanding and the clear division of responsibilities among family members have provided stability to the ownership structure. However, the Company would benefit from implementing a formal succession plan to ensure continuity and effective management of the business in the future

The sponsors bring extensive experience to the construction industry, having operated in the field for decades. Mr. Atta Ullah and Mr. Zaka Ullah each have approx. three decades of experience, while Mr. Samee Ullah has about 17 years of expertise. Their in-depth understanding of the business is further reinforced by their active involvement in day-to-day operations.

The sponsors of TTC have adequate financial profile. The Company has a demonstrated history of relying on equity and internal cash flows, reflecting the sponsors’ commitment to supporting its operations. Additionally, the sponsors own multiple properties across various locations in the country, which have been utilized as collateral for non-funded facilities—a critical aspect of the construction industry. This highlights the financial soundness of the sponsors and their dedication to sustaining and strengthening the Company’s operations. Furthermore, TTC is the only business of the sponsors, further emphasizing their focus and commitment to its success.

The overall control of the Company rests with the family members, as all three shareholders serve as board members and hold executive positions. The board currently does not include any independent or non-executive directors.

Atta Ullah Khan, a Civil Engineer by profession, founded this business in 1995. His younger brother, Mr. Zaka Ullah Khan, has been involved with the business since its inception, while their youngest brother, Mr. Samee Ullah, an MBA from PakAims, joined in 2006. The brothers have divided the company’s domains and regions, with each being solely responsible for decision-making in their respective areas.

The Board members are actively engaged in the planning, execution, and oversight of business projects, regularly monitoring operations. However, the Board does not have any committees in place. Compared to established corporates, the governance model is relatively weak and requires improvement.

Imran Mehmood & Co., Chartered Accountants, serve as the external auditor for the Company and have issued an unqualified opinion on the financial statements for FY24.

Company has an adequate organizational structure. Currently, the organizational structure is divided into five main functions namely; 1)Operations 2) Project Management 3) Finance 4) Business Development and 5) HR & Admin.

Mr. Atta Ullah Khan served as the CEO of TTC since its inception in 1995. However, he was replaced by his youngest brother, Mr. Samee Ullah, due to his involvement in other activities. The Finance function is currently headed by Mr. Tariq Zulqarnain.

The Company has established effective controls to ensure the timely completion of contracts and efficient materials management. The board members are actively involved in overseeing the project team to ensure successful execution. Monthly project site reports, along with the respective profit and loss statements, are prepared, shared, and discussed with senior management to monitor progress.

The Company is currently using EduBusinessSolutions_AI_Enterprise prepared by EduSoft System Solutions for financial reporting.

TTC currently holds certifications in health, safety, and quality control, including ISO 14001 and ISO 45001, which demonstrate its commitment to environmental management and occupational health and safety. Recognizing the critical importance of these certifications in the construction industry, the company follows a balanced, environment-friendly approach in all its operations. Management ensures continuous monitoring of activities across various project sites to maintain high standards. While an internal control system is in place, the company acknowledges that the effectiveness of its management could be further enhanced through regular reviews by an internal audit department, ensuring ongoing improvements and alignment with industry best practices.

The Public Sector Development Program (PSDP) for FY24 saw an increase of approximately 30.7% year-on-year (YoY), reaching PKR 950bln. Under the Current and Development Expenditure on the Revenue Account, a specific allocation has been made for Construction and Transport. The total amount for these sectors is PKR 40.5bln for Current Expenditure and PKR 39.1bln for Development Expenditure. In comparison to the previous fiscal year, these figures have slightly changed, with allocations for Construction and Transport last year being PKR 30.2bln and PKR 55.2bln, respectively.

TTC is a mid-level construction company in Pakistan. Its business model primarily revolves around working as a subcontractor or entering joint venture (JV) partnerships. TTC frequently partners with other firms and companies to qualify for bidding purposes. The execution of projects is fully managed by TTC, with profits and losses shared based on an agreed percentage upon project completion. Additionally, the Company has experience across a wide range of construction-related services, enhancing its ability to deliver high-quality projects. TTC typically works on Government of Pakistan (GOP)-funded projects and also has exposure to society development initiatives.

TTC has consistently maintained a revenue base of approx. PKR 5bln over several years, driven by ongoing projects, joint ventures with local players, and government contracts. For FY24, the Company’s revenue was recorded at PKR 5.08bln (FY23: PKR 5.2bln). Currently, TTC has a project pipeline of approx. PKR 29bln, with completion timelines spanning over number of years. In addition to its core focus on construction activities, TTC has recently been awarded a significant number of projects under the Waste Management Company. These projects involve primary and secondary collection, transportation, and disposal of solid waste to dump sites across different divisions and regions in Punjab. This marks the first initiative of its kind, with work on these projects expected to begin soon.

The Company reported gross margins of 26.3% in FY24, up from 25.5% in FY23, despite inflationary pressures. This improvement reflects the Company’s strategic and cautious bidding approach. Management continues to prioritize selective project acquisition, focusing on opportunities with favorable returns. Additionally, the Company mitigated inflationary impacts by incorporating escalation clauses into contracts for projects lasting over one year. The same trend is witnessed in Net profit which rose to PKR 395mln in FY24, compared to PKR 379mln in FY23.

TTC's asset base has demonstrated steady growth over the years, rising from PKR 1.15bln in 2018 to PKR 4.3bln in 2024. The Company has also diversified into real estate projects, expanding its operational portfolio. While management's projections suggest sustainable growth, the volatility associated with project awards poses potential risks to revenue stability. The list of upcoming projects includes a few large ones; however, the successful acquisition and timely execution of these projects will be critical for maintaining revenue growth, safeguarding profit margins, and ensuring long-term financial stability and operational success.

TTC relies primarily on internal cash flows to meet its working capital requirements, only resorting to short-term borrowings (STB) when necessary. The Company maintains minimal exposure to funded credit lines, but due to the nature of its operations, it holds a significant exposure to non-funded lines such as performance guarantees, which are essential for securing projects. As project pipeline expands, the exposure to these non-funded lines is expected to increase, potentially impacting the Company’s financial flexibility. However, maintaining a balance between internal cash generation and strategic use of credit lines will be critical to sustaining growth and operational stability. In terms of working capital management, which is influenced by inventory, receivables, and payables days, TTC’s inventory days increased to 117 days in FY24, up from 102 days in FY23, primarily due to new projects. The company’s receivable days also rose to 24 days in FY24, up from 15 days in FY23, driven by significant progress in 22 construction projects totaling PKR 12bln, although there are no disputed receivables, and the company continues to recover funds effectively. As a result, gross working capital days expanded to 141 days in FY24, compared to 117 days in FY23. Net working capital days also increased to 132 days in FY24, up from 107 days in FY23. Meanwhile, trade payable days decreased slightly to 9 days in FY24, down from 10 days in FY23, indicating a modest reduction in the time taken to pay suppliers.

In FY24, TTC's operating cash flows (FCFO) remained relatively stable at PKR 506mln, compared to PKR 533mln in FY23 and PKR 597 mln in FY22. However, finance costs significantly increased to PKR 71mln in fy 24 from PKR 25mln in FY23, due to a substantial rise in borrowings from PKR 2mln in FY23 to PKR 284mln in FY24. As a result, the coverage ratio decreased to 7.1 in FY24, down from 21.4 in FY23, primarily due to the higher finance costs associated with the increased borrowings.

TTC equity base has shown consistent growth, rising from PKR 2.060 bln in FY22 to PKR 2.439 bln in FY23, and reaching PKR 2.834 bln in FY24. This steady increase highlights the Company’s strengthened financial foundation and ongoing accumulation of retained earnings. The total borrowings increased to PKR 284 million in FY24, up from PKR 2 million in FY23 and PKR 71 million in FY22. As a result, the debt-to-debt-plus-equity ratio rose to 9.1% in FY24, up from 0.1% in FY23 and 3.3% in FY22, reflecting a gradual increase in leverage. This increase in leverage is partly due to a 16% rise in equity compared to the previous fiscal year, the company has also taken on more debt, leading to a slight increase in financial leverage. The Company’s borrowings primarily consist of short-term obligations. TTC has access to non-funded credit facilities amounting to approximately PKR 3bln, mainly in the form of bank guarantees issued to project owners, with around PKR 1.960bln utilized as of December 2024. These borrowings are secured by tangible collateral in the form of a mortgage over lands registered in the sponsors' names.