Karachi, VIS Credit Rating Company Ltd. has reaffirmed the Broker Management Rating of Taurus Securities Limited at ‘BMR2+’, highlighting its strong compliance, risk management, and stable financial performance. The outlook for the rating remains stable.
According to VIS Credit Rating Company Limited, Taurus Securities, established in 1993, has shown strong regulatory compliance and risk management, underpinned by substantial support from its major shareholders including the National Bank of Pakistan. The firm provides a range of brokerage services and financial research, and maintains robust internal controls, human resources, infrastructure, and client relationships. With offices in Karachi and Peshawar, Taurus holds a Trading Rights Entitlement Certificate from the Pakistan Stock Exchange and is registered with the SECP for Trading and Self Clearing Services.
The rating reflects the company’s effective governance, with a board composed of eight members, including four independent directors, which enhances its governance framework. VIS has suggested potential improvements in internal policies and increased transparency in financial statements to strengthen its external control framework. The firm's client servicing and operational procedures were noted as sound, with recent enhancements in investor grievance measures receiving positive remarks.
Financially, Taurus Securities saw an improvement in its operating profile with an increase in core brokerage income, reporting a profit after tax of Rs. 15.4 million in CY23, a turnaround from a loss in the previous year. However, the cost-to-income ratio remains high, with ongoing efforts needed to curtail administrative expenses. The company’s liquidity profile has notably improved, with a significant rise in liquid assets relative to total liabilities, although leverage remains higher than ideal.
Overall, VIS views the business and financial sustainability of Taurus Securities as adequate, with future improvements in revenue streams and operational efficiency deemed crucial for maintaining or enhancing its rating.