Press Release

VIS Assigns Initial Broker Management Rating to Darson Securities Limited

Karachi, December 29, 2020: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Darson Securities Limited (DSL). Outlook on the assigned rating is ‘Stable’.

The rating signifies strong external control framework, sound risk management and compliance and sound HR and IT policies. Client relationship, supervision over regulatory requirements and financial management are considered adequate.

Assigned rating reflects DSL’s strong governance over external control environment along with sound HR and IT management policies. Formation of board level risk management committee and inclusion of independent director with relevant experience would enhance corporate governance. Rating takes note of sound risk management and compliance levels and good relationship with local and intuitional clients. Assessment of financial profile indicates increase in core brokerage income (owing to uptick in trading volumes) during FY20 however; higher administrative expenses (more than two-fold increase in salaries & commissions) led to loss at year-end. Going forward, diversity in income stream from other than brokerage would lower operational risk.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 205) or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk



Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .