Press Release

VIS Reaffirms Broker Fiduciary Rating of Integrated Equities Limited

Karachi, March 19, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of ‘BFR3++’ assigned to Integrated Equities Limited (IEL). The assigned rating denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on March 3rd, 2023.

Integrated Equities Limited (IEL), initially established as a private limited company in 2008 and later converted to an unlisted public limited company in 2016, operates within the financial services sector, affiliated with the Aequitas Group. The Company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self- Clearing issued by the Pakistan Stock Exchange Limited (PSX). IEL is also licensed Consultant to the Issue, Securities Adviser and Futures Adviser, Authorized Intermediary and registered Research Entity. With a focus on equity brokerage, research, investment banking, and project advisory services, IEL's operations are primarily overseen by Mr. Sardar Ali Wattoo, who holds a significant shareholding and serves as the CEO. External auditors of the Company are BDO Ebrahim & Co. Chartered Accountants which belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

The assigned rating signifies sound client management services, business and financial sustainability, internal controls and ownership and governance. IEL’s governance framework encompasses a Board composition of five directors including independent and female representatives. Addition of new Board committees maybe considered for further strengthening of governance framework.

IEL maintains a sound overall management structure and client service provision, albeit there is room for improvement in customer complaint channels. As per the management, integrated ERP platform is in the process which may be considered to enhance client services. Regulatory control framework remains sound with appropriate measures are in place to ensure client confidentiality, however enhancing the scope of employee trading and conflict of interest policies may be considered for further strengthening of control framework.

In terms of financial profile, IEL faced challenges in FY23 due to market slowdown. Subsequently, there are signs of recovery, with brokerage income showing improvement in the first half of FY24. However, significant rise in half-year profitability has been largely contributed by re measurement gains on investment property. Cost to income ratio of the Company has improved over time. Maintenance of the same will remain important. Liquidity and capitalization indicators remain favorable, with adequate liquidity coverage and low gearing and leverage ratios. Going forward, augmenting revenues and managing operational efficiency will remain important for equity growth of the Company.

For further information on this rating announcement, please contact at (021) 35311861-70 or email at info@vis.com.pk





Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/docs/BrokerFiduciary012021.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 .