Press Release
PACRA Assigns Initial Broker Fiduciary Rating to Zafar Securities (Pvt.) Limited
Date: 31-Mar-22
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (31-Mar-22 ) | ||
Action | Initial | ||
Rating | BFR 3+ | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | Majority shares are owned by the CEO, Mr. Syed Asim Zafar with an ownership stake of ~80%. A formal succession plan may provide comfort. | |
Governance | ZSPLs board comprised of three directors including the CEO. Ms. Syeda Khola Hussain has passed away recently for which the replacement is in process. | |
Management and Client Services | ZSPL has a lean organizational structure with experienced management. Client servicing may be improved further with a research department. | |
Internal Controls and Regulatory Compilance | ZSPL has sound internal control and regulatory compliance supported by separate internal audit and compliance department. | |
Business Sustainability | The revenue stream is concentrated to equity brokerage, diversification of which may provide support to the topline. | |
Financial Sustainability | ZSPL has an adequate capitalization level with an equity of PKR 286mln at end Jun 21. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 28-Jun-99 |
Type of License | Trading and Self-clearing |
Majority Ownership | Mr. Syed Asim Zafar | ~80% |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Hassaan Ahmad hassaan.ahmad@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-21 |
Sector Study | Brokerage & Securities | Jan-22 |
Disclaimer | This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor. |