Press Release

VIS Reaffirms Broker Fiduciary Rating of Next Capital Limited

Karachi, September 14, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of Next Capital Limited (NCL) at ‘BFR2’. The assigned rating denotes strong fiduciary standards and signifies strong ownership and governance, internal control and regulatory compliance as well as sound business and financial sustainability and management and client services. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on May 18, 2022.

The rating takes into account the strong ownership and governance. NCL is a listed entity, with board of directors constituting seven members, inclusive of two independent representation. Moreover, the Company has also established two additional committees namely risk management committee and investment committee, providing impetus to the Company’s governance framework. Internal controls and regulatory compliances are also considered strong. However, enhancing the scope of the internal control policies, including conflict of interest policy, as well as reviewing order recording system on a periodic basis maybe considered. Rating also factors in Company’s sound management and client services, with extensive research coverage available on website along with mobile and web-based application in place to ensure client facilitation.

Financial profile of the Company depicts deterioration in the earning profile during 9MFY23 primarily driven by the decline in the brokerage income despite higher income from advisory and consultancy vis-à-vis same period last year, consequently leading to operating losses and worsening in cost to income ratio. While liquidity profile of the Company has shown a considerable improvement, capitalization profile is constrained by the low equity base relative to its peers. Going forward, augmenting revenue base and equity along with managing operational expenses will remain important for rating.

The Company holds a Trading Right Entitlement Certificate (TREC) issued by the Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. External auditors of the company are Baker Tilly Mehmood Idrees Qamar – Chartered Accountants and 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 Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 106) at (021) 35311861-64 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

VIS Rating Scale

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .