Lahore, May 30, 2019 (PPI-OT): The rating reflects the company’s adequate ownership and governance profile. The company is owned by Dar-ul-Shifa International (Pvt.) Limited, an established healthcare venture. The rating incorporates the company’s stable market share, currently ~2.5% and continuous efforts to diversify its revenues in prevailing weak capital market situation. The company has adequate IT infrastructure and risk management framework and appropriately designed organizational structure with adequate departmentalization, which bodes well for sustained operations.
The company has devised detailed policies for IT, CDD/KYC and AML. The company is exposed to market risk and potential conflict of interest as it has limited short term proprietary investments which were stood at ~PKR 8mln at end Dec-18. The company has a low leveraged structure and adequate capitalization level with the Net Capital Balance of ~PKR 37mln as at 30th June 2018, which meets the minimum regulatory requirement.
The rating is dependent on the management’s ability to retain its market share and enhance the volumes and diversity of revenue to improve its competitive position in the brokerage industry. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls will remain critical.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com