Press Release

JCR-VIS Reaffirms Broker Management Rating of Integrated Equities Limited

Karachi, December 7, 2018: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Integrated Equities Limited (IEL) at ‘BMR3++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 24, 2017.

The rating signifies sound continuity of internal control framework, client relationship management, risk management and HR & IT services along with adequate regulatory compliance levels and external controls. In line with lackluster stock market some weakening in financial management is observed.

The rating reaffirmation takes into account IEL’s adequate board level governance. However, increase in Board size along with appointment of an independent director would enhance corporate governance standards. Chairing of Board Audit Committee (BAC) by an independent director and the constitution of board level Risk Management Committee would further improve the same. Moreover, the company has sound customer relationship management system in place.

The internal control environment is adequately supported by defined internal policy framework. However, compliance and Risk management function may be segregated for clarity and control purposes. Consultancy function has been the profitability driver of the institution; weakening of the same adversely impacted the topline. Given the fixed nature of operating expenses, earning profile of the company has remained under pressure. However, support from one-off gain from sale of assets led to marginal profit for the year.

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, 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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited