Press Release

VIS Reaffirms Broker Management Rating of AKIK Capital (Private) Limited

Karachi, November 11, 2022: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of ‘BMR3’ assigned to AKIK Capital (Private) Limited. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on September 29th, 2021.

The rating signifies adequate regulatory requirement and supervision and internal controls, along with adequate client relationship and fair play, HR and infrastructure and compliance and risk management. Financial management is also considered adequate while external control framework is sound.
Reaffirmation of assigned rating takes into account adequate regulatory requirement and supervisory framework which may be enhanced through inclusion of independent and qualified members on the Board. Increasing the board size may also support formation of independently represented board level committees. Acquisition of additional licenses may improve revenue generation and support larger trading activity.

Rating also takes into account adequate internal control framework and client relationships. The Company is still in the process of establishing certain policies, however, ensuring comprehensive coverage and dissemination of the same to all stakeholders may contribute towards establishing a strong internal control framework. Company plans to roll out the online platform and research function in near future which is expected to boost client relationships and revenues. Execution of the same will be important for rating, going forward. Other client services such as trade execution alerts, customer complaint tracking system through SMS may be considered. Compliance and risk management remain adequate. Inclusion of an independent risk management function may support strengthening the credit risk profile assessment of customers.

During the year, the market activity remained dismal, trading volumes declined across industry. The Company’s earning profile was impacted, core brokerage income declined, subsequently the Company’s cost to income ratio also witnessed deterioration. However, capital gains, realized and unrealized both, provided support to the bottom line. Liquidity profile remains adequate and capitalization indicators also remain sound with zero gearing and leverage at 0.34x (FY21 0.34x). The Company continues to maintain a sizeable propriety book relative to equity, albeit declining on a timeline basis, which exposes the company to market risk. Going forward, maintenance of profitability profile, augmentation of revenues along with improvement in cost to income ratio, lower market risk and maintenance of capitalization indicators will remain important for the rating.

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 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 .

VIS Credit Rating Company Limited