Press Release
VIS Reaffirms Broker Management Rating of Topline Securities Limited
Karachi, May 29, 2025: VIS Credit Rating Company has reaffirmed the Broker Management Rating of Topline Securities Limited at BMR2++. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on March 21, 2024.
The rating signifies strong HR and infrastructure, external control framework, while internal control framework, client relationship, financial management, compliance and risk management and regulatory and supervisory framework are considered sound.
Topline Securities Limited (“TSL” or “the Company”), holding a trading and self-clearing license, is engaged in the business of stock brokerage, commodity brokerage, underwriting, consultancy, book bidding, and advisory services. Shareholding of the Company is primarily vested with Mr. Mohammad Sohail, who also serves as the CEO of the Company. The Company provides both online and assisted trading services to local and foreign clients. TSL is a public unlisted company holding Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) as well as membership in Pakistan Mercantile Exchange Limited (PMEX). External auditors of the company are M/s Naveed Zafar Ashfaq Jaffery & Co. – Chartered Accountants, which are “A” rated on the SBP’s panel of auditors.
Assigned rating incorporates the Company’s governance framework, with board size commensurate with the scale of its operations. The governance structure is further supported by five board-level committees, comprising the Audit, HR, Risk Management, Nomination, and Investment Committees. External control framework of the Company is supported by sound disclosure levels. Internal control framework of the Company is considered sound, with documented policies in place. However, further broadening the scope of these policies may be considered for further enhancement in the internal control framework. Client services of the Company are also considered sound, supported by various facilitation tools, ensuring seamless trade execution, along with research reports disseminated through social media platforms. Contingency measures are in place, with disaster recovery mechanisms supported by maintenance of offsite backups at their own control as well as outsourced to a third-party warehouse.
Assessment of the Company’s financial profile reflects healthy growth in the Company’s operating revenue, in line with the industry, in FY24 and 9MFY25, driven primarily by strong growth in brokerage revenue. However, the Company’s operational efficiency depicted slight weakening in 9MFY25, albeit remains manageable. The Company carries negligible market risk, as investments are primarily parked in the ready/future segment, money market funds, and government securities. Liquidity profile of the Company is considered sound. Capitalization indicators of the Company remains manageable. Going forward, continued enhancement in revenue and profitability as well as maintenance of liquidity and capitalization indicators will be important for rating.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf