Press Release

VIS Reaffirms Broker Management Rating of AKD Securities Limited

Karachi, March 4, 2019: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of AKD Securities Limited (AKDSL) at ‘BMR2++’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 20, 2017.

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

The rating continues to factor in company’s sound compliance to regulations and board level governance; however, room for improvement in terms of Board size exists. Strengthening the same would enhance board oversight and avoid common members in board level committees.

Internal control environment is considered sound with sufficient and well-defined policies. Internal Audit (IA) and Compliance functions have been segregated to strengthen control environment. Improvement has been witnessed in reporting of personal trades and frequency of trade reviews for non-compliant and suspicious trades. Moreover, financial profile of the company demonstrated a healthy growth despite slowdown in economic and stock market activity. Fall in brokerage income due to lower market volumes was supported by a significant one off reversal of doubtful debt and increase in underwriting commission. Improvement was also witnessed in curtailment of variable expenses.

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 .

VIS Credit Rating Company Limited