Press Release

JCR-VIS Reaffirms Broker Management Rating of Topline Securities Limited

Karachi, February 6th, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of Topline Securities Limited (TSPL) at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 7, 2017.

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

The rating continues to factor in TSPL’s adequate compliance to regulations and board level governance; however; constitution of Board level Risk Management Committee would further add to corporate governance standards. Independent director chairing the BAC Committee is in line with international best practices.

Internal control environment is considered effective with sufficient and well-defined policies. Conflict of interest policy is duly being shared with both staff and clients in order to strengthen controls. More stringent employee trading guidelines would enhance the control environment. Moreover, earning profile of the company has remained under pressure due to decline in market volumes. Operating efficiency was reported higher during FY18 on account of decline in brokerage revenue; however the same compares well to peers. Going forward, diversification in revenue streams is expected given corporate finance & advisory service pipeline.

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 2019 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