Press Release
VIS Reaffirms Broker Management Rating of AKD Securities Limited
Karachi, May 20, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of AKD Securities Limited at ‘BMR1’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on February 9, 2023.
The rating signifies strong supervision framework, external controls, risk and compliance levels, strong customer service, HR and IT infrastructure while financial management, internal control environment; compliance and risk management and regulatory frameworks are considered sound.
Listed on the Stock Exchange, AKD Securities Limited is licensed to operate as securities broker, consultant to the issue, and underwriter from the Securities Exchange Commission of Pakistan and holds a Trading Right Entitlement Certificate (TREC) of Pakistan Stock Exchange Limited and Membership card of Pakistan Mercantile Exchange Limited. External auditors of the company are RSM Avais Hyder Liaquat Nauman Chartered Accountants. External auditors from Category ‘A’ of State Bank of Pakistan’s list of auditors.
The company is among the lead brokerage houses and the principal activities of the Company are brokerage of shares and/or commodities/ money market / forex trading, financial research, book building, underwriting, investments in securities/commodities, corporate advisory and consultancy services.
Reaffirmation of rating takes note of Company’s sound regulatory requirement and strong supervision framework. At present, the Company’s board comprises of seven members along with independent representation, which continues to be supported by the functioning of various board committees. While external control framework continues to remain strong, internal control framework is considered sound. Internal policies and procedures are well placed, however; enhancing the scope of the same through dissemination of internal policies to all stakeholders may be considered. Overall management and client servicing procedures are considered strong. During the year, the Company revamped its website, the same stands improved with enhanced trading and research resources available for clients. Investor grievance procedures also stand improved. HR and IT infrastructure of the company is considered sound. Compliance and risk management framework continues to remain strong.
The Company’s overall business and financial indicators are considered strong, in line with market trend, the Company’s operating profile was observed to be under stress owing to decline in trading activity during the year. The Company’s core brokerage income also witnessed a decline, however; income from dividend and other sources supported profitability. Cost-to-income ratio remains on the higher side owing to higher administrative expenses. While market risk is considered manageable, liquidity and capitalization indicators are considered adequate. Overall business and financial sustainability is considered strong. Improvement of the Company’s operational profile, capitalization indicators, liquidity and maintenance of market risk shall remain important for the rating, going forward.
For further information on this rating, please contact 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS 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 .