Press Release

JCR-VIS Assigns Broker Management Rating to AKD Securities Limited

Karachi, December 20, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Broker Management Rating of ‘BMR2++’ to AKD Securities Limited (AKDSL). Outlook on the assigned rating is ‘Stable’.

The rating signifies strong regulatory compliance levels and client relationship management; sound internal and external control framework and HR & IT services along with adequate risk and financial management.

Assigned rating reflects compliance to regulations and board governance of the company to be sound; however, board composition has room for improvement in terms of size as well as presence of independent members in board committees. Although internal control environment is considered satisfactory, broadening the scope of documentation with more frequent policy reviews may enhance the same. In addition to this, autonomous functioning of internal audit and compliance department may also strengthen the internal control environment. Although corporate advisory fees and underwriting income has declined, growth in brokerage commission and sizeable investment income has supported the bottom-line. Leverage indicators have trended upwards owing to re-measurement of available for sale portfolio in a declining stock market and reduction in advance against capital.

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: Broker Management Ratings 2017

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