Karachi, September 15, 2021 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to Taurus Securities Limited (TSL). Rating of BFR3 denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. The rating signifies strong ownership and governance, sound management, client services and internal controls and adequate business and financial sustainability.

Assigned rating takes into TSL’s strong sponsor support with National Bank of Pakistan, Bank of Khyber and Saudi Pak Industrial and Agricultural Investment Company Ltd. (SAPICO) as major shareholders. In line with best practices, the Board is composed of 8 directors with adequate independent representation. However, increasing the number of certified directors may further strengthen governance framework.

Management and client services are considered sound; however, client services may be enhanced through complaint tracking system. The company’s organizational structure is well defined and disaster recovery measures are in place. Scope of policies and manuals is well defined and credit worthiness evaluation and reviewing of suspicious trade is done on monthly basis, depicting sound internal control and regulatory compliance. Increasing the frequency of review of policies and manuals may further strengthen internal control framework.

During FY20, company’s profitability profile witnessed significant improvement supported by increase in core brokerage income. The momentum has continued into HFY21 in line with market trend. Liquidity profile is sound while capitalization is at adequate levels, given low equity base. Market risk is minimal as the company does not maintain a propriety book. Overall, business and financial sustainability of the company is adequate. Increasing equity size, augmenting revenue streams, improving efficiency levels and increasing market share will be important for ratings going forward.

TSL is a public unlisted company providing equity brokerage services along with financial/economic data research analysis. The company holds a Trading Right Entitlement Certificate (TREC) for Trading and Self-Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

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/