Press Release

VIS Assigns Initial Broker Fiduciary Rating to AKIK Capital (Private) Limited

Karachi, April 18, 2022: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to AKIK Capital (Private) Limited (AKIK). The assigned rating denotes good fiduciary standards and signifies sound internal controls and regulatory compliance, while ownership and governance, management and client services as well as business and financial sustainability are adequate.

Assigned rating takes note of adequate ownership and governance framework, with the current Board consisting of two directors and one Board level committee. As the operations of the business scale up, increasing the board size with addition of independent and certified directors may contribute towards strengthening governance framework. Management and client services are also considered adequate. Provision of full scale online services to facilitate customers is underway, while appropriate contingency and data backup measures are in place. Going forward, availability of research resources, and increase in geographical footprint may be important.

Internal controls and regulatory compliance are considered sound. While appropriate internal control policies are in place, their scope may be further enhanced for strengthening of control environment. Compliance department is functional in independent capacity, while internal audit is outsourced; however, risk management framework may also be enhanced by establishing an independent risk management function.

Assessment of financial profile indicates growth in profitability, driven primarily by increase in brokerage income. A sizable proprietary book while supporting liquidity position, increases market risk exposure of the Company. Capitalization indicators are adequate, with zero gearing and low leverage, although equity size remains small. Going forward, augmenting and diversifying revenue base while keeping cost to income ratio in check will be important for rating.

The company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self Clearing Services. External auditors of the company are Kreston Hyder Bhimji & 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. Sara Ahmed (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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .