Lahore, December 14, 2021 (PPI-OT): The rating reflects JS Global Capital Limited’s (“JSGCL” or “The Company”) leading position in the brokerage industry and carries the legacy of stock brokerage business. The rating incorporates the stable market share, competitive position, automated technological framework and exclusive outreach to retail segment. JSGCL has a well experienced management team, sound governance framework and well-established compliance protocols which bodes well for the rating. The Company has implemented strong control environment to deliver quality service to its clients.
The internal audit function of the Company is outsourced to ‘category ‘A’ auditor which further strengthen the control environment. The rating derives comfort from the company’s investing policy, limiting the market risk and liquidity risk. Assessment of earning profile indicates swift escalation parallel with the improvement in traded volumes of the stock market. The advisory and consultancy income also intensified during 9MCY21.
The rating also reflects the company’s strong financial profile with Net Capital Balance of ~PKR 870mln at end-Sep’21. Furthermore, JSGCL has zero leveraging structure. Going forward, with a focus to provide quality services and continue to be a market leader, the company has deployed an internationally acclaimed brokerage house software ‘Mubasher’ in parallel to its existing system and implemented internally. The rating take into account the Company’s association with a leading financial group,’ JS Group’ of the country.
Strengthened market share, sustainable profits, sound internal controls, client relationship, HR and IT services and risk management framework, regulatory compliance, external control environment will remain imperative. Further, rational diversification of business activity may provide support to the company’s overall financial risk profile.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com