Press Release

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

Karachi, December 28, 2023: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of BFR3+ to Darson Securities (Private) Limited (DSL). Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.
Operating in the brokerage business for over 20 years, Darson Securities (Private) Limited (DSL) provides brokerage services to both retail and foreign intuitional clients. DSL’s operations are run through its corporate office in Karachi while the company’s registered office is in Lahore. The Company has a network of 10 branches spread nationwide, DLS holds a Trading Right Entitlement Certificate (TREC) issued by the Pakistan Stock Exchange Limited (PSX) since 2000 for Trading & Self Clearing Services. External auditors of the Company are Muniff Ziauddin & Co Chartered Accountants. Auditors are on ‘A’ category on the approved list of auditors published by the State Bank of Pakistan.
The rating signifies adequate business and financial sustainability as well as satisfactory ownership and governance framework. Internal controls and regulatory compliance are considered sound while management and client services are strong.
Assigned rating takes note of the Company’s strong management and client services marked by employment of various client facilitation tools and resources to support clients in executing transactions. Moreover, availability of research reports enhances the client service experience. The Company’s internal controls and regulatory framework is considered sound. However, enhancement in the overall scope of internal policies may further strengthen the internal control framework. At present, the Company’s Board comprises of three members. Increasing the board size along with independent representation may enhance its governance framework. While the Company has established four board committees, repetition of members is observed across the same. Improvement in the same may improve board oversight. Overall, disclosure levels of the Company are considered sound. Going forward, implementation of the planned initiatives undertaken by the Company remain important.
Assessment of financial profile of the Company indicates deterioration of the Company’s operational earning profile due to decline in core brokerage income as a result of subdued market activity. With losses reported in FY23, cost-to-income ratio also came under stress. The Company’s liquidity profile and market risk are considered adequate. Moreover, the Company’s leverage and gearing ratios remain manageable despite profitability drag on the equity base. Going forward, improvement in revenues and operational efficiency. Maintenance of lower market risk exposure along with low gearing and leverage indicators will remain important for rating.
For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 216) or the undersigned (Ext: 207) at (021) 35311861-64 or email at

Syed Asif Ali
Executive Director

Applicable Rating Criteria: Broker Fiduciary Ratings:

VIS Rating Scale

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