Press Release

VIS Reaffirms Broker Management Rating of Taurus Securities Limited

Karachi, June 28, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Taurus Securities Limited at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 30, 2022.

The rating signifies strong compliance and risk management and external controls, sound internal control, HR and infrastructure and client relationship and adequate financial management and regulatory requirement.

Taurus Securities Limited (TSL) is a public unlisted company incorporated in 1993, providing equity brokerage services and financial/economic data research analysis. Major shareholding of the company is vested with National Bank of Pakistan (NBP). The head office of the Company is located in Karachi, while a branch office is located in Peshawar. The Company provides both online and assisted trading services to its clients. TSL is a public unlisted company holding 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 BDO Ebrahim and Co. Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

Assigned rating takes note of the Company’s compliance and risk management which continues to remain strong. Regulatory requirements and supervision framework are considered sound, Company continues to have strong sponsor support, with National Bank of Pakistan and Bank of Khyber as the major shareholders. The Company’s board, at present, is represented by 8 members, inclusive of 4 independent directors, boding well for its governance framework. Overall internal controls framework continue to remain sound. However, enhancing the overall scope of internal policies through frequent reviewing of the same may be considered. External control framework is considered adequate, inclusion of director’s report and CEO’s statement in the Company’s annual financial statements may be considered in order to further strengthen disclosure levels. Client servicing procedures and resources continue to remain sound. Enhancement in investor grievance measures has been noted positively.

Assessment of the Company’s operating profile witnessed improvement on the back of increase in core brokerage income. The Company also reported a PAT of Rs.15.4m (CY22 -8.2m). Cost to income ratio however continues to remain on the higher side. Curtailment of administrative expenses and further improvement in operating profile may improve the same. Market risk continues to remain manageable. Liquidity profile witnessed improvement, liquid assets to total liabilities were recorded at 97% during CY23 (CY22 49%). During CY23, leverage indicator improved albeit remaining on the higher side at 2.27x (CY22 3.42x). Gearing indicator also increased although remaining manageable. Overall, business and financial sustainability of the Company remains adequate. Improvement in revenue streams, operational efficiency and capitalization will remain important for the rating For further information on this rating, please contact 021-35311861-64 or email at info@vis.com.pk.


For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .