Press Release

JCR-VIS Reaffirms Entity Ratings of Topline Securities Limited

Karachi, July 19, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the entity ratings of Topline Securities Limited (TOPLINE) at ‘A-/A-2’ (Single A-Minus/A-Two). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on March 22, 2016.

The ratings take into account continued focus and major brokerage revenue source from foreign clients. Improvement in capitalization indicators and development of advisory services are other rating drivers. During the outgoing year, TOPLINE’s status was changed from a Private Limited Company into a Public Limited Company. Going forward, as the company plans to list itself on the exchange, management envisages improvement in corporate governance structure of the company.

TOPLINE’s profitability has depicted growth on the back of increase in the brokerage commission earned. Revenue from equity brokerage accounted for 94% of total revenue during FY16. Historically, major portion of commission has emanated from foreign institutions. This sustained during the outgoing year. Given this trend, client concentration has been witnessed in the top line which the company has managed in the past years. In terms of volume traded, TOPLINE’s market share witnessed growth during FY16.

Driven by year on year accumulation of profits, equity base of the company has exhibited sizeable growth enabling steady expansion of business operations. Given the sale of 60% stake of PSX, further growth in the equity base is anticipated in FY17.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.

Javed Callea

Applicable rating criteria: Methodology - Securities Firms Rating (May 2015)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited