Karachi, April 18, 2022 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to AKIK Capital (Private) Limited (AKIK). The assigned rating denotes good fiduciary standards and signifies sound internal controls and regulatory compliance, while ownership and governance, management and client services as well as business and financial sustainability are adequate.
Assigned rating takes note of adequate ownership and governance framework, with the current Board consisting of two directors and one Board level committee. As the operations of the business scale up, increasing the board size with addition of independent and certified directors may contribute towards strengthening governance framework. Management and client services are also considered adequate. Provision of full scale online services to facilitate customers is underway, while appropriate contingency and data backup measures are in place. Going forward, availability of research resources, and increase in geographical footprint may be important.
Internal controls and regulatory compliance are considered sound. While appropriate internal control policies are in place, their scope may be further enhanced for strengthening of control environment. Compliance department is functional in independent capacity, while internal audit is outsourced; however, risk management framework may also be enhanced by establishing an independent risk management function.
Assessment of financial profile indicates growth in profitability, driven primarily by increase in brokerage income. A sizable proprietary book while supporting liquidity position, increases market risk exposure of the Company. Capitalization indicators are adequate, with zero gearing and low leverage, although equity size remains small. Going forward, augmenting and diversifying revenue base while keeping cost to income ratio in check will be important for rating.
The company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading and Self Clearing Services. External auditors of the company are Kreston Hyder Bhimji and Co Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/