Press Release

VIS Reaffirms Broker Fiduciary Rating of Taurus Securities Limited

Karachi, Jun 28, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed Broker Fiduciary Rating of Taurus Securities Limited (TSL) at ‘BFR3+’. Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 30, 2022.

The rating signifies strong ownership and governance and internal controls, sound management and client services and adequate business and financial sustainability.

Taurus Securities Limited (TSL) is a public unlisted company incorporated in 1993. The company provides equity brokerage services along with financial/economic data research analysis. Major shareholding of the company is vested with National Bank of Pakistan (NBP), a state owned entity and one of the largest commercial banks in Pakistan. The head office of the Company is located in Karachi, while a branch office is also present in Peshawar. The Company provides both online and assisted trading services to its clients. TSL holds Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the Company are M/s 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 take note of strong ownership and governance levels. The Company continues to have strong sponsor support, with National Bank of Pakistan and Bank of Khyber as the major shareholders while the board comprises of by 8 members whereby 50% is independently represented. Client servicing procedures continue to remain sound, improvement in investor grievance measures has also been noted positively. Overall internal controls and regulatory compliance procedures continue to remain strong. However, enhancing the overall scope of internal policies may be considered.

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 announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.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 .