Press Release
VIS Updates Broker Fiduciary Rating of Floret Capitals (Private) Limited (Formerly: Floret Commodities (Pvt.) Limited)
Karachi, December 10, 2025: VIS Credit Rating Company Ltd. (VIS) has updated the Broker Fiduciary Rating of Floret Capitals (Private) Limited (Formerly: Floret Commodities (Pvt.) Limited) (‘FCPL’ or ‘the Company) at ‘BFR3’. Rating of BFR3 denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on September 23, 2025.
The rating signifies adequate internal controls, client services and ownership and governance framework. On the other hand, business and financial sustainability of the Company is considered sound.
FCPL was incorporated in 2015. The Company is involved in the brokerage of commodities through Pakistan Mercantile Exchange Limited (PMEX). The Company has also become the Trading Rights Entitlement Certificate (TREC) holder of the Pakistan Stock Exchange (PSX) as a Trading and Self Clearing Securities Broker. The Company is owned by Abdul Aleem. He and his son Sameer Piracha is actively involved in the business. The Company’s external auditors are Nasir Javaid Maqsood Imran Chartered Accountants, categorized as ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating factors in the Company’s ownership and governance framework, characterized by a three-member board with no independent directors. Oversight mechanisms remain limited with only an HR Committee and no Audit Committee. Governance framework can be enhanced with more Board members and Committees. Disclosure levels are considered sound. Management and client servicing procedures are assessed as adequate, supported by a fully integrated ERP platform. Availability of equity and market research reports on the Company’s website may further improve client facilitation. Expansion of geographical footprint to broaden customer reach is available. While offsite backups are maintained internally, placing backup arrangements with a third party and formulating a comprehensive business contingency plan may further strengthen the Company’s contingency framework. The Company’s internal controls may be strengthened by expanding the scope of existing policies and introducing additional ones, including an IT policy. Establishing timelines for policy reviews, formalizing trade reviews, and periodically reviewing order recording with proper documentation may also be considered.
Assigned rating also takes into account the Company’s financial profile. While the Company has acquired the equity brokerage license, activity on this segment will be reflected from FY26. Therefore, the assigned rating depends upon projected financials of the Company. Cost-to-income remains on the higher side. Liquidity profile is considered sound. However, an increasing proprietary book will expose the Company to market movement. The Company’s small equity size poses a constraint on the rating. Going forward, improvement in Company’s earning profile along with diversifying business, improvement in market share and maintenance of liquidity and capitalization indicators will remain important for the rating.
For further information on this rating, please 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf