Press Release

VIS Assigns Initial Broker Fiduciary Rating to Tannu Securities (Private) Limited

Karachi, October 11, 2023: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to Tannu Securities (Private) Limited (TSPL). Rating of BFR3 denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating reflects adequate ownership and governance, business and financial sustainability, management and client services, internal control and regulatory compliance.

Assigned rating takes into account the Company’s ownership and governance framework. TSPL is a private limited company having only two members on the board, inclusive of one independent director. The same may be enhanced by increasing the board size along with the inclusion of certified members on the board. Additionally, the same will enable the Company to establish more committees for effective oversight. Similarly, disclosure levels may be enhanced through addition of CEO statement on the financial statement. Rating also incorporates Company’s adequate management and client services. Revamping the website to provide prompt assistance to clients may be considered. Company’s organizational structure is restricted to the limited size and scope of its operations, expanding the same may enable in strengthening the overall organizational structure. Improving disaster recovery practices along with undertaking invitations and advertisements may be considered to enhance its management and client services. The Company has laid out internal policies. However, strengthening the scope of policies along with having a separate conflict of interest and IT policy may provide impetus to the internal control framework of the Company. Likewise, establishing a risk management department as well as segregating the internal audit and compliance department may provide the same.

Assessment of the financial profile depicts deterioration in the earning profile on account of a decline in brokerage income amid contraction in trading volumes. The efficiency ratio has increased on a timeline basis, improvement of the same will remain important for the rating. Company’s liquid asset provides a sizeable coverage to its liabilities. Company’s gearing and leverage indicators are considered sound, however, Company has a small equity base. Market risk has declined on timeline basis, albeit it remains on the higher side. Rating also factor’s in Company’s high business risk wherein core income stems from its brokerage income. Going forward, improvement in revenue augmentation, operational efficiency, lowering of market risk, maintenance of gearing and leverage as well as increasing the size of the equity will remain important for rating.

TSPL is a private limited company engaged in providing brokerage services in stock shares, securities, commercial papers, and debentures. Shareholding of the company is primarily vested with Mr. Muhammad Hanif. The Company operates through its head office which is based in Karachi. The company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 106) at (021) 35311861-64 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Broker Fiduciary Ratings 2021:

VIS Rating Scale

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 .