Rating Details	Rating Type	BFR
	Dissemination Date	Current (15-Dec-23 )
	Action	Initial
	Rating	BFR 3
	Outlook	Stable
	Rating Watch	-

Rating Rationale	Factor	Comment
	Ownership	Majority ownership vests with Mr. Asad Abdul Razzaq, having ~99.99% ownership stake in the Company.
	Governance	A small two-member board provides governance for VSPL. The board consists of the CEO and his brother, indicating limited governance oversight. Three board committees are present with defined TORs; how
	Management and Client Services	VSPL has an adequately qualified and experienced management team to run its operations. Client services are considered adequate with access to online trading and limited research reports present.
	Internal Controls and Regulatory Compilance	An internal audit department exists; however, its scope is limited. The compliance function is directly overseen by the CEO, resulting in effective monitoring.
	Business Sustainability	The topline of VSPL is concentrated to equity brokerage, resulting in limited resistance to market variabilities. VSPL earned brokerage revenue of ~PKR 5.3mln during FY23, and incurred loss after tax
	Financial Sustainability	VSPL operates on a zero or low-leveraged capital structure. However, the low equity base of ~PKR 78mln at end-Jun'23 may be improved through internally generated profits or equity injection.

Key Rating Drivers

Venus Securities (Pvt.) Limited ('VSPL' or the 'Company') is primarily engaged in the services of equity brokerage. The Company plans to add commodity brokerage to aid its topline and is targeting retail customers to enhance brokerage revenue. Positive market indicators may result in improved performance for VSPL during the upcoming year. Moving forward, increase in topline diversification is vital for the ratings. Growth of topline and profitability remain important. Moreover, separation of key management roles and retention of key personnel is critical.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	06-Jun-07
	Type of License	Trading Only
	Majority Ownership	Asad Abdul Razzaq (~99.99%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Methodology | Broker Fiduciary Rating | Jan-23	Sector Study | Brokerage & Securities | Jan-23

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