Press Release

JCR-VIS Reaffirms Broker Management Rating of Adam Securities Limited

Karachi, January 9, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Adam Securities Limited (ASL) at ‘BMR3++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 21, 2017.

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

The rating reaffirmation takes into account ASL’s adequate regulatory compliance levels. However, increase in board size, constitution of board level Risk Management Committee and chairing of Board Audit Committee (BAC) by an independent director would add to governance level. Moreover, internal control and compliance environment may be strengthened by well-defined and stringent policies for employee trading and conflict of interest. Internal audit and risk management function may be segregated for clarity and control purposes.

ASL’s earning profile witnessed a downward trend on account of decrease in core brokerage income and significant deduction in capital gains; however, profitability drew support from improved underwriting commission during the year FY18. Going forward, diversity in income stream is considered important.

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 2019 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