Press Release

VIS Reaffirms Broker Fiduciary Rating to AKIK Capital (Private) Limited

Karachi, August 01, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of AKIK Capital (Private) Limited (AKIK) at ‘BFR3’. The assigned rating denotes good fiduciary standards and signifies sound internal controls and regulatory compliance, while ownership and governance, management and client services and well as business and financial sustainability are adequate. Previous rating action was announced on April 18, 2022.

Assigned rating takes into account adequate ownership and governance framework of the Company. The Company’s board comprises of two members. The same may be strengthened by increasing the board size along with inclusion of independent directors and certified members. These measures will further facilitate in establishing independently represented board committees. Management and client services are also considered adequate. The Company has employed full-scaled online services aimed at facilitating clients in execution of online transactions. However, availability of online customer reports may provide impetus to the Company’s client services portfolio. The Company has maintained offsite backups at the third party warehouse. Increasing the frequency of disaster recovery practices may be considered to further strengthen the security of the Company’s business operations.

Internal controls and regulatory compliance are considered sound. While appropriate internal control policies are in place, the scope of the same may be enhanced to further strengthen the control environment of the Company. Internal audit department is outsourced to a third party and compliance function is independently structured. Adding an independent risk management function may add strength to the Company’s control framework.

Financial profile of the Company depicts deterioration amid contraction in the industry volumes. Consequently, the cost to income ratio was adversely impacted. Market risk continues to remain on the higher side. Quantum of short term investments in relation to equity amounted to 75% at end-FY23. However, liquidity profile remains sound. Capitalization indicators of the Company are adequate. Going forward, augmenting the revenue base and diversification of revenue streams while maintaining optimal efficiency levels will remain important.

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 Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 207) at (021) 35311861-64 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 .