Press Release

VIS Maintains Broker Management Rating of Foundation Securities (Private) Limited

Karachi, July 07, 2022: VIS Credit Rating Company Ltd. (VIS) has maintains the Broker Management Rating of Foundation Securities (Private) Limited (FSL) at ‘BMR2’. Outlook on the assigned rating is being revised from Stable to ‘Rating Watch-Developing’. Previous rating action was announced on June 15, 2021.

The rating signifies strong compliance & risk management as well as external control framework. Regulatory framework, internal controls, client relationship and HR & IT infrastructure are sound with adequate financial management and supervisory levels.

The revision in outlook takes into account the amalgamation of Askari Securities Limited (ASL) with and into FSL. ASL, a securities brokerage company, is a wholly owned subsidiary of Askari Bank Limited (AKBL). The amalgamation will entail transfer of complete undertaking of ASL with FSL, together with all properties, assets, liabilities and obligations of every description.

Assigned rating takes note of FSL’s sound regulatory framework. Overall supervision framework is considered sound, the Company’s board comprises of three members, and increasing board size through addition of certified members may further strengthen the framework and facilitate the formation of independently represented board committees. Internal control framework is considered sound and external control framework is strong on the back of enhanced disclosure levels. Client relationship and fair-play remains sound with provision of all client facilitation tools for enhanced client experience. HR and infrastructure of the company is also considered sound with sound contingency measures and fully integrated ERP platform in place. Compliance and risk management framework is considered strong, outsourcing of internal audit is reviewed positively.

Assessment of financial profile indicates improvement in profitability on the back of higher brokerage income during FY21; however the same was impacted due to subdued market activity end-HFY22. Operational efficiency levels remained on the higher side during the year, curtailment of administrative expenses may improve the same. Liquidity profile is adequate while capitalization indicators remained under pressure. Going forward, improvement in capitalization indicators and liquidity profile along with augmentation in revenue streams and cost containment will remain important for rating.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Management Ratings 2020:

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 .