Press Release

VIS Upgrades Broker Fiduciary Rating of Taurus Securities Limited

Karachi, December 30, 2022: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Fiduciary Rating (BFR)of Taurus Securities Limited (TSL) from ‘BFR3’ to ‘BFR3+’.Rating of ‘BFR3+’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. The last BFR rating was announced on September 15, 2021.

The rating signifies strong ownership and governance, sound management, client services and internal controls and adequate business and financial sustainability.

Assigned rating incorporates strong sponsor support from TSL’s strong sponsor support with National Bank of Pakistan, Bank of Khyber and Saudi Pak Industrial & Agricultural Investment Company Ltd. (SAPICO) as major shareholders. Governance structure is represented by 8 members on the Board, including 3 independent directors, in line with the best standards.

Rating incorporates Company’s sound management and client services, albeit the same may be facilitated through systematic complaint registration form. Organizational structure is well defined and disaster recovery measures are in place. Internal policies are procedures are laid out and disseminated to all stakeholders. Limitation on credit extension to customers is reflective of sound risk management practices. Increasing the frequency of review of policies and manuals, however, may be considered. .

Rating takes into account improvement in financial risk of the Company with reduction in market risk exposure and uptick in liquidity profile. Gearing and leverage indicators also reflect significant improvement at HY22 end. However, equity base of the Company remains small. Limited revenue streams together with weak operational efficiency remains a constraint. Amid significant market slowdown, revenues of the Company declined in HY22, recording a net loss. Going forward, augmentation and diversification of revenue streams, improvement in profitability metrics and maintenance of low gearing levels will remain important for rating.

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 & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .