Press Release
VIS Upgrades Broker Management Rating of Alpha Capital (Private) Limited
Karachi, April 17, 2023: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Management Rating of Alpha Capital (Private) Limited to ‘BMR3++’ from ‘BMR3+’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 13, 2021.
The rating signifies sound client relationship and fair-play, internal controls, supervision framework and compliance and risk management, while regulatory governance, external controls, HR and infrastructure and financial management are considered adequate.
Upgrade in rating takes into account improvements in the supervisory framework and internal controls. The Company’s Board comprises of five members, during the year, the Company also formed additional board committees including HR & Compensation and Compliance committees, which has been noted positively. Scope of internal policies have enhanced, strengthening internal control framework. External control framework remains adequate although appointment of ‘A category’ auditors from SBP’s approved list has been noted. Client relationship and fair-play is considered sound while room for improvement exists in HR and infrastructure, including enhancement in operating systems and data backup procedures. Assigned rating also take into account sound compliance and risk management framework with segregation of internal audit and compliance departments. Addition of independent risk management function may be considered.
Assessment of financial profile indicates deterioration in the Company’s earning profile owing to decline in trading volumes. Company’s cost-to-income ratio increased as a result of decline in core brokerage income and increase in administrative expenses. Liquidity profile of the Company is considered sound while capitalization indicators are considered manageable. Overall financial management is considered adequate. Improvement in earning profile through uptick in revenues and control over costs to generate optimal operating efficiency will be important for rating, going forward.
Alpha Capital (Private) Limited holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) to provide Trading & Self Clearing Services. External auditors of the company are M/s. Crowe Hussain Chaudhury & Co. Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-70 or email at info@vis.com.pk
Sara Ahmed
Director
Applicable Rating Criteria: Broker Management Ratings 2020
https://docs.vis.com.pk/docs/BMR202007.pdf