PACRA Maintains the Broker Management Rating of Shajar Capital Pakistan (Pvt.) Limited

The rating reflects the Company’s adequate ownership and governance profile. The Company is owned by Dar-ul-Shifa International (Pvt.) Limited (89% shareholding), an established healthcare venture in Karachi. The rating incorporates the Company’s stable market share, adequate IT infrastructure & risk management framework and appropriately designed organizational structure with adequate departmentalization. The Company has devised detailed policies for IT, CDD/KYC and AML. The company is exposed to market risk and potential conflict of interest as it has a small proprietary investment portfolio, (~PKR 6.5mln or 5% of equity).The Company has a low leveraged structure, supported by sponsors loan.The Company has modest capitalization level with the Net Capital Balance of ~PKR 24mln as at end Dec'19, which meets the minimum regulatory requirement.
The rating is dependent on the management's ability to enhance its market share to improve its competitive position in the brokerage industry. Retention of key personnel, improvement in customer servicing tools and maintaining strong controls will remain critical. Leveraging group synergies to sustain operations in volatile market is important.

About the Entity
Shajar Capital Pakistan (Private) Limited was formed through the acquisition of Crosby Securities in 2010, which was renamed as Burj Capital initially and now as Shajar Capital. The Company’s prime business is equity brokerage, commodity brokerage and consultancy and advisory. The Company is a subsidiary of Dar ul Shifa International (Private) Limited, which holds 89% shares. Remaining stake lies with Mr. Syed Ali Farhan Razi and Mr. Javed Yousuf Ahmedjee. The Company's board comprises four members, including the CEO, Mr. Rehan Ateeq and one Executive Director. Mr. Amir Waliuddin Chishti is the Chairman of the board. He is associated with Chishti group of companies and is also the Chairman of Dar ul Shifa (Pvt.) Limited.