Press Release

VIS Upgrades Broker Management Rating of Alpha Capital (Private) Limited

Karachi, April 17, 2023: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Management Rating of Alpha Capital (Private) Limited to ‘BMR3++’ from ‘BMR3+’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 13, 2021.
The rating signifies sound client relationship and fair-play, internal controls, supervision framework and compliance and risk management, while regulatory governance, external controls, HR and infrastructure and financial management are considered adequate.

Upgrade in rating takes into account improvements in the supervisory framework and internal controls. The Company’s Board comprises of five members, during the year, the Company also formed additional board committees including HR & Compensation and Compliance committees, which has been noted positively. Scope of internal policies have enhanced, strengthening internal control framework. External control framework remains adequate although appointment of ‘A category’ auditors from SBP’s approved list has been noted. Client relationship and fair-play is considered sound while room for improvement exists in HR and infrastructure, including enhancement in operating systems and data backup procedures. Assigned rating also take into account sound compliance and risk management framework with segregation of internal audit and compliance departments. Addition of independent risk management function may be considered.

Assessment of financial profile indicates deterioration in the Company’s earning profile owing to decline in trading volumes. Company’s cost-to-income ratio increased as a result of decline in core brokerage income and increase in administrative expenses. Liquidity profile of the Company is considered sound while capitalization indicators are considered manageable. Overall financial management is considered adequate. Improvement in earning profile through uptick in revenues and control over costs to generate optimal operating efficiency will be important for rating, going forward.

Alpha Capital (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 M/s. Crowe Hussain Chaudhury & Co. Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-70 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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited