Rating Details	Rating Type	BFR
	Dissemination Date	Current (19-Sep-23 )	Previous (20-Sep-22)
	Action	Maintain	Initial
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The assigned rating incorporates the business acumen of the primary sponsor. The Company's ownership is diversified among different individuals and entities, while major stakes are owned by the primar
	Governance	The governance framework is considered strong, supported by a board of seven members including two independent directors. Presence of Board level committees chaired by independent directors enhance ov
	Management and Client Services	A qualified and experienced management its at the helm of the Company and has steered TSBL to its reputable position today. The client services are considered adequate with an online trading platform
	Internal Controls and Regulatory Compliance	TSBL has outsourced its internal audit department which strengthens the internal control framework. The separation of risk management and compliance functions is well noted.
	Business Sustainability	During 9MFY23, TSBL experienced a decline of ~29% in brokerage revenue compared to 9MFY22. Concurrently, market volumes decreased by ~33% during this period, indicating that TSBL's performance was in
	Financial Sustainability	The Company has an adequate equity base of ~PKR 312mln at end-Mar'23 (SPLY: ~PKR 289mln). The market risk is minimal due to the Company's limited investment in equity securities amounting to ~PKR 27ml

Key Rating Drivers

As a part of long-term strategic plans, TSBL will utilize its growing market renown in commodities brokerage to further support its topline. The improvement of the technological platform and geographical diversification is also under consideration. Going forward, the Company will focus on revenue diversification, geographical expansion, and the sustainability and enhancement of its market share. Meanwhile, it is imperative to maintain rigorous internal controls, retain key management personnel, and maintain profitability.

About the Entity
	Legal Structure	Listed
	Year of Establishment	19-Oct-93
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Junaid Shehzad Ahmed (27%)

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

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