Press Release

VIS Assigns Reaffirms Broker Fiduciary Rating of Muhammad Munir Muhammad Ahmed Khanani Securities Limited

Karachi, November 15, 2022: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of ‘BFR2’ assigned to Muhammad Munir Muhammad Ahmed Khanani Securities Limited (MMMAKSL). The assigned rating denotes strong fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on November 19th, 2022.

The rating signifies sound internal controls, financial sustainability and client services while ownership and governance is considered adequate.

Reaffirmation of rating takes note of Company’s maintained market share along with sound financial risk profile despite posting losses during the year. Rating also factors in sound internal control framework, and client management services. However, governance framework remains adequate. The Company’s board comprises of five members along with independent representation, however room for improvement exists in board size. Inclusion of certified members may be considered to facilitate the formation of independent board level committees.

During FY22, market volumes and trading activity remained subdued which significantly impacted the Company’s earning profile. Unrealized losses on investment portfolio dragged profitability down, however, contribution of revenues from other streams depicted an increase. Market risk is considered high amidst a dismal market performance. Liquidity profile is satisfactory. Capitalization indicators also registered steady improvement even though the Company’s equity base eroded to Rs. 2.2b (FY21 2.9b) on account of losses incurred during the year. Going forward, improvement in the Company’s earning profile, sustainability of capitalization indicators and cost to income ratio along with market share will remain important for the rating.

Muhammad Munir Muhammad Ahmed Khanani Securities Limited is an unlisted public limited company, principally engaged in provision of equity and commodity brokerage services to retail and institutional clients. Major shareholding is vested with the Mr. Muhammad Munir. The company operates through its offices in Karachi, Lahore, Hyderabad and Islamabad. The company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

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 .

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