PACRA Maintains the Broker Management Rating of Shajar Capital Pakistan (Private) Limited - AsiaNet-Pakistan

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

November 28, 2019 | | Share:

Lahore, November 28, 2019 (PPI-OT): The rating reflects the Company’s modest business profile with the adequate governance structure. Majority owned by Dar-ul-Shifa International Private Limited, (89% shareholding). The Company catered the challenging economic condition of the country and maintained its market share at around 2%. The company has lean organizational structure with adequate departmentalization. The company has adequate IT infrastructure and risk management framework.

The company has devised IT, CDD/KYC, AML and employee’s code of conduct policies, in line with directives of the regulators. These can be further strengthened by implementing separate policies and procedures for key functions. The company is exposed to market risk and potential conflict of interest as it has a small proprietary investment portfolio, (~PKR 7mln or 3.5% of equity). The company has a low leveraged capital structure, supported by sponsors loan, and modest net capital balance of ~PKR 29mln at the end FY19 that meets the minimum regulatory requirement.

The NCB reduced on YoY basis. The rating is dependent on the management’s ability to improve revenues, in turn, profitability of the company. Meanwhile, retaining key personnel, improving governance framework and maintaining strong controls is critical.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

Category: General Business News