Press Release

VIS Assigns Initial Broker Management Rating to Alfa Adhi Securities (Private) Limited

Karachi, December 13, 2021: VIS Credit Rating Company Ltd. VIS) has assigned initial Broker Management Rating of ‘BMR3+’ to Alfa Adhi Securities (Private) Limited. Outlook on the assigned rating is ‘Stable’.
The rating signifies sound client relationship and fair-play while regulatory requirement and supervision, compliance & risk management, internal and external controls, HR and infrastructure and financial management are adequate.

The assigned ratings take into account adequate regulatory requirement and governance framework. The board comprises of five directors with considerable experience in the brokerage industry, however, the Board composition may be enhanced through inclusion of independent directors. The same may also support formation of independently represented board level committees. Presently, shareholding of the company is vested with two families, Aman and Adhi as well as Akseer Research (Pvt) Limited. Akseer Research is an independent global technology and business process outsourcing firm which plans to increase its stake in Alfa Adhi Securities (Private) Limited in the coming year.

Rating also takes into account adequate internal control framework which may be strengthened through enhancing the scope of internal policies and increasing the frequency internal audit. External control framework may also be enhanced through appointing ‘A’ category auditors from SBP’s approved list. Ratings also incorporate sound client relationship and fair play with customer facilitation tools and procedures in place. HR & infrastructure is adequate; third party engagement for backing up data at off-site locations and practicing disaster recovery exercises on periodic basis may be considered for strengthening business continuity framework. Segregation of internal audit and compliance department may strengthen compliance and risk management framework.

Assessment of financial profile indicates improvement in profitability attributable to increase in brokerage income coupled with capital gains during FY21. Liquidity profile of the company is adequate. Market risk is low as propriety trading portfolio of the company was minimal. Capitalization indicators depict increase year over year with leverage increasing however gearing remained low. Going forward, continued revenue growth along with augmentation of revenue streams, stable capitalization indicators and improvement in market share and liquidity profile will remain important for rating.

Alfa Adhi Securities (Private) Limited holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) to provide Trading & Self Clearing Services. External auditors of the company are Reanda Haroon Zakaria & Co Chartered Accountants. External auditors belong to category ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 201) at (021) 35311861-66 or email at

Javed Callea

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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited