Press Release

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

Karachi, November 28, 2023: 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 November 11th, 2022.
The rating signifies adequate regulatory requirement and supervision, internal controls, client relationship and HR and infrastructure. Financial Management and Compliance & Risk Management are also considered adequate while external control framework is sound.
Reaffirmation of assigned rating takes note of company’s adequate regulatory requirement and supervisory framework, however increasing the board size along with independent and certified directors may enhance governance framework. The same may also support in forming independently represented board level committees for enhanced supervision. Going forward, inclusion of CEO’s statement on fraudulent transaction and statement of compliance with code of Corporate Governance may further improve reporting framework.
Assigned rating also accounts for adequate internal control framework and client relationships. Internal policies may be enhanced for a more comprehensive coverage as well as dissemination to all stakeholders. Company has an online trading platform in place and has a small equity research function in place too. 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. Consequently, Company’s earning profile remained under pressure, with core brokerage income deteriorating by 33.72% in FY23. Cost to income ratio also showcased further deterioration to 167% due to contraction in revenue stream and elevated operating expenses. However, capital gains booked against trading of propriety book investments supported the Company to post profits, albeit nominal. Liquidity profile remained strong with liquid assets to liabilities providing comfortable coverage. Capitalization indicators remain favourable with low gearing and leverage. The Company continues to maintain a sizeable propriety book relative to equity, thereby being exposed to higher market risk. Going forward, augmentation of revenues and improvement in operational efficiency together with managing market risk at acceptable levels will remain important.
For further information on this rating announcement, please contact Dr. Jahanzaib Alvi (Ext: 104) or the undersigned (Ext: 106) at (021) 35311861-66 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Broker Management Ratings 2020:

VIS Rating Scale

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