Press Release

VIS Assigns Initial Broker Management Rating to Taurus Securities Limited
 

Karachi, September 15, 2021: VIS Credit Rating Company Ltd. VIS) has assigned the Broker Management Rating of ‘BMR2+’ to Taurus Securities Limited. Outlook on the assigned rating is ‘Stable’.

The rating signifies strong compliance and risk management, and sound internal controls. Client relationship and HR and infrastructure are sound, while financial management and regulatory requirement and supervision are considered adequate.

The assigned ratings take into account strong compliance and risk management framework. The company has no propriety trading book nor does it allocate any credit limits to customers depicting low market risk and strong risk management function. Ratings also factor in sound client relationships built over time; however the same may be further enhanced. Geographic diversification may also contribute towards future growth. HR and infrastructure and internal controls are sound with well documented and adequately disseminated internal polices together along with fully integrated ERP platform and contingency measures in place, however increasing the frequency of review of policies and disaster recovery exercise may further strengthen internal control framework.

Ratings also take into account adequate regulatory requirements and supervisory framework whereby limited certified directors on the Board and repetition of members in Board committees is a constraint. Acquiring additional business related licenses may support revenue generation and improving the Net Capital Balance would support larger trading activity. Assessment of financial profile indicates improvement in profitability in FY21 on account of higher trading volumes in the market, however all revenues remain concentered in brokerage business. Liquidity profile remains sound providing adequate coverage. Capitalization indicators are adequate given low equity base. Enhancing the scope of operations, augmenting revenue streams and improving operational efficiency will be important for ratings.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk


Faryal Faheem Ahmad
Deputy CEO

Applicable Rating Criteria: Broker Management Ratings 2020
https://docs.vis.com.pk/docs/BMR202007.pdf

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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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited