Press Release

VIS Reaffirms Broker Fiduciary Rating of AKD Securities Limited

Karachi, May 15, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of AKD Securities Limited at ‘BFR2++’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on February 9, 2023.

The rating signifies strong regulatory compliance, client ownership and governance, management and client services and business and financial sustainability while internal controls are sound.

Listed on the Stock Exchange, AKD Securities Limited is licensed to operate as securities broker, consultant to the issue, and underwriter from the Securities Exchange Commission of Pakistan and holds a Membership card of Pakistan Mercantile Exchange Limited. The principal activities of the Company are brokerage of shares and/or commodities/ money market / forex trading, financial research, book building, underwriting, investments in securities/commodities, corporate advisory and consultancy services.

AKDSL is registered with Securities & Exchange Commission of Pakistan (SECP) and holds a Trading and Self-Clearing (TSC) license and Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX). Moreover, the company also holds underwriting and corporate advisory licenses. External auditors of the company are RSM Avais Hyder Liaquat Nauman Chartered Accountants. External auditors are from Category ‘A’ of State Bank of Pakistan’s list of auditors.

Reaffirmation of rating takes note of Company’s strong ownership and governance levels, the Company’s board comprises of seven members along with independent representation, which continues to be supported by the functioning of various board committees. Disclosure levels of the Company also continue to remain strong. Overall management and client servicing procedures are considered strong. During the year, the Company revamped its website, the same stands improved with enhanced trading and research resources available for clients. Investor grievance procedures also stand improved. Internal controls and regulatory framework continues to remain sound. Internal policies and procedures are well placed, however; enhancing the scope of the same through dissemination of internal policies to all stakeholders may be considered in order to further strengthen the same.

The Company’s overall business and financial indicators are considered strong, in line with market trend, the Company’s operating profile was observed to be under stress owing to decline in trading activity during the year. The Company’s core brokerage income also witnessed a decline, however; income from dividend and other sources supported profitability. Cost-to-income ratio remains on the higher side owing to higher administrative expenses. While market risk is considered manageable, liquidity and capitalization indicators are considered adequate. Overall business and financial sustainability is considered strong. Improvement of the Company’s operational profile, capitalization indicators, liquidity and maintenance of market risk shall remain important for the rating, going forward.

For further information on this rating, please contact 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 .