Press Release

VIS Reaffirms Entity Ratings of Topline Securities Limited

Karachi, November 25, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of Topline Securities Limited at ‘A/A1’ (Single A/A One). Long-term rating of ‘A’ signifies good credit quality, with adequate protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of A1 denotes strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on July 24, 2023.

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. 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 ratings take into account the business and financial profile of the Company. During FY24, the earning profile of the Company experienced a rebound, driven primarily by strong growth in the brokerage revenue, while income from advisory operations was similar to that of last year. Consequently, the operating efficiency of the Company depicted improvement. Liquidity profile of the Company is considered sound. Market risk of the Company is largely muted as majority investments are held in money market funds. The Capitalization profile of the Company draws support from its low leveraged balance sheet, while equity base has shown consistent growth in line with its profitability. Going forward, maintenance of operational efficiency, liquidity and capitalization profile will remain important for ratings.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Securities Firms:
https://docs.vis.com.pk/docs/SecuritiesFirm202007.pdf

VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .