Press Release

VIS Reaffirms Broker Fiduciary Rating of Alpha Capital (Pvt) Limited

Karachi, March 11, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Alpha Capital Pvt Limited at ‘BFR3’. Rating of ‘BFR3’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on December 01, 2023.

The rating signifies sound management and client services, while ownership and governance, business and financial stability, and internal control and regulatory compliance are considered adequate.

Incorporated in November 1994, Alpha Capital is a private limited company principally engaged in the brokerage of shares, commodities, money market instruments and consultancy. The company is a corporate member of the Pakistan Stock Exchange (PSX) Limited and Pakistan Mercantile Exchange Limited (PMEX). Catering to retail and institutional clients, the company provides online and assisted trading services from its registered offices in Karachi. The company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) to provide Trading & Self Clearing Services. External auditors of the company are Crowe Hussain Chaudhury & 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 signifies the Company’s governance framework, with 5 members representing the board of directors, including one independent director. Additionally, the Company has three board committees where repetition of members is observed across these committees. Inclusion of independent and certified directors, along with eliminating member repetition across board committees, may further enhance the ownership and governance framework of the Company. While the Management and Client services procedures of the Company are considered sound, Investor grievance procedure maybe further enhanced for greater visibility on the website. Additionally, the Contingency measures of the Company may be further strengthened through enhancing the frequency of disaster recovery exercises and maintaining backups at a third-party data warehouse. The channels of invitations and advertisements have so far not been utilized by the company. Internal Control and Regulatory Compliance of the Company may be enhanced by broadening the scope of the internal control policies. Similarly, periodic review of the order recording system and formal documentation of internal control review procedures may further strengthen the internal control framework of the Company.

Assessment of financial profile of the Company reflects a strong rebound in the Company’s brokerage revenue during FY24 and 6MFY25. Consequently, cost-to-income ratio of the Company improved to manageable levels. The Company's liquidity profile is adequate, while it carries no market risk, given no proprietary investments. While the equity base is small and leverage ratio is on the higher side, the absence of debt provides support to the capitalization profile of the Company. Going forward, revenue augmentation, continued enhancement in profitability, and improvement in liquidity and leverage indicator 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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .