Al Meezan Investments

Shariah Methodology

At Al Meezan, we are dedicated to providing Shariah compliant investment solutions. In this regard we adhere to the Shariah guidelines as advised by the Shariah Board. The investments are limited to asset classes approved by the Shariah Advisor and all companies under investment consideration are regularly screened for Shariah compliance.

Shariah Screening Criteria (for equity securities)

Shariah compliance of stocks is done under the guidance of qualified and reputed Shariah experts. For stocks to be “Shariah compliant”, it must meet ALL the six key tests given below.

Business of the Investee Company

Core business of the company must be halal and in line with the dictates of Shariah. Hence, investment in securities of any company dealing in conventional banking, conventional insurance, alcoholic drinks, tobacco, pork production, arms manufacturing, pornography or related activities is not permissible.

Debt to Total Assets

Debt to Asset ratio should be less than 37%. Debt, in this case, is classified as any interest bearing debts. Zero coupon bonds and preference shares are, both, by definition, part of debt.

Non-Compliant Investments to Total Assets

The ratio of non compliant investments to total assets should be less than 33%. Investment in any non-compliant security shall be included for the calculation of this ratio.

Non-Compliant Income to Total revenue – Purification of Non-compliant income

The ratio of non compliant income to total revenue should be less than 5%. Total revenue includes Gross revenue plus any other income earned by the company. This amount is cleansed out as charity as a pro rata ratio of dividends issued by the company.

Illiquid Assets to Total Assets

The ratio of illiquid assets to total assets should be at least 25%. Illiquid asset, here, is defined as any asset that that Shariah permits to be traded at value other than the par.

Net Liquid Assets to Share Price

The market price per share should be greater than the net liquid assets per share calculated as: (Total Assets – Illiquid Assets – Total Liabilities) divided by number of shares.

FINAL LIST OF COMPANIES FOR KMI-30 INDEX RECOMPOSITION JUNE 2017

S.NO SYMBOL COMPANY NAME STATUS DIVIDEND PURIFICATION RATE DIVIDEND PURIFICATION RATE
1 ABOT Abbott Lab (Pakistan) Ltd.  Compliant    1.72%*
2 ADOS Ados Pakistan Ltd  Compliant   0.61%
3 AGIL Agriauto Industries Ltd  Compliant   0.43%
4 AEL Arshad Energy  Compliant   0.00%
5 AKZO Akzo Nobel Pakistan  Compliant    0.87%*
6 ASC Al Shaheer Corporation Ltd  Compliant   0.07%
7 AGTL Al-Ghazi Tractors Ltd  Compliant    0.68%*
8 ALTN Altern Energy Ltd  Compliant   0.68%
9 ASTL Amreli Steels Ltd  Compliant   0.05%
10 ARPL Archroma Pakistan Ltd  Compliant     0.00%*
11 ADMM Artistic Denim Mills Ltd  Compliant   0.00%
12 ATBA Atlas Battery Ltd  Compliant   0.42%
13 ATLH Atlas Honda Ltd Compliant 1   0.78%
14 ACPL Attock Cement Pakistan Ltd.  Compliant   0.44%
15 APL Attock Petroleum Ltd  Compliant   0.47%
16 ATRL Attock Refinery Ltd  Compliant   0.84%
17 AVN Avanceon Limited  Compliant    0.98%*
18 BAPL Bawany Air Product  Compliant   0.01%
19 BRR B.R.R. Guardian Modaraba  Compliant   0.12%
20 BWHL Baluchistan Wheels Ltd  Compliant   1.34%
21 BIPL BankIslami Pakistan Ltd.  Compliant    0.00%*
22 BNWM Bannu Woollen Mills Ltd  Compliant   0.17%
23 BERG Berger Paints Pakistan Ltd   Compliant   0.20%
24 BWCL Bestway Cement Ltd  Compliant   2.82%
25 BIFO Biafo Industries Ltd  Compliant   1.72%
26 BCL Bolan Castings Ltd  Compliant   0.03%
27 BPL Burshane LPG (Pakistan)  Compliant   0.22%
28 CWSM Chakwal Spinning Mills Ltd  Compliant   0.00%
29 CHAS Chashma Sugar Mills Ltd    Compliant 2     0.03%*
30 CHCC Cherat Cement Co. Ltd.  Compliant  Not Available 0.03%
31 CPPL Cherat Packaging Ltd  Compliant   0.01%
32 CSAP Crescent Steel & Allied Products  Compliant   0.26%
33 CSM Crescent Standard Modaraba  Compliant   0.00%
34 DSIL D. S. Industries Ltd  Compliant   1.64%
35 DGKC D.G. Khan Cement Co. Ltd.  Compliant   4.20%
36 DAAG Data Agro Ltd  Compliant   0.00%
37 DAWH Dawood Hercules Corporation  Compliant    0.23%*
38 DCL Dewan Cement Ltd.  Compliant   0.03%
39 DFSM Dewan Farooque Spinning Mill  Compliant   0.00%
40 DCR Dolmen City REIT  Compliant   0.00%
41 DYNO Dynea Pakistan Ltd  Compliant   0.22%
42 ECOP EcoPack Ltd.  Compliant   0.03%
43 FECM First Elite Capital Modaraba  Compliant   1.60%
44 EMCO Emco Industries Ltd  Compliant   0.00%
45 ENGRO Engro Corporation Ltd  Compliant    0.23%*
46 EFERT Engro Fertilizers Ltd.  Compliant    0.10%*
47 EPCL Engro Polymer & Chemicals Ltd  Compliant    0.02%*
48 EXIDE Exide Pakistan Ltd Compliant 1   0.02%
49 FCCL Fauji Cement  Compliant   0.05%
50 FEM First Equity Modaraba  Compliant   0.54%
51 FRSM Faran Sugar Mills Ltd  Compliant    0.34%*
52 FATIMA Fatima Fertilizer Company Ltd  Compliant    0.45%*
53 FECTC Fecto Cement Ltd  Compliant   0.42%
54 FML Feroze1888 Mills Ltd  Compliant   0.00%
55 FEROZ Ferozsons Laboratories Ltd  Compliant   0.78%
56 FFLM First Fidelity Leasing Modaraba  Compliant   0.09%
57 FUDLM First U.D.L. Modaraba  Compliant   0.11%
58 FLYNG Flying Cement Co. Ltd.  Compliant   0.00%
59 GAMON Gammon Pakistan Ltd  Compliant   0.12%
60 GTYR General Tyre & Rubber Co.  Compliant   0.04%
61 GHNI Ghandhara Industries Ltd  Compliant   0.04%
62 GHNL Ghandhara Nissan Ltd.  Compliant   0.12%
63 GAIL Ghani Automobile Industries Ltd  Compliant   0.02%
64 GGL Ghani Gases Ltd  Compliant   0.13%
65 GHGL Ghani Glass Ltd   Compliant   0.00%
66 GGGL Ghani Global Glass Ltd  Compliant   1.50%
67 GVGL Ghani Value Glass Ltd  Compliant   0.05%
68 GWLC Gharibwal Cement Ltd  Compliant   0.24%
69 GLAXO GlaxoSmithKline Pakistan  Compliant   0.60%
70 GSKCH GlaxoSmithKline Consumer Healthcare  Compliant     2.70%*
71 FHAM First Habib Modaraba  Compliant   0.03%
72 HAL Habib-ADM Ltd  Compliant   1.23%
73 HAEL Hala Enterprises Ltd  Compliant   0.36%
74 HASCOL Hascol Petroleum Ltd  Compliant    0.16%*
75 HADC Haydari Construction Co. Ltd  Compliant   0.00%
76 HINOON Highnoon Laboratories Ltd  Compliant    0.24%*
77 HINO Hinopak Motors Ltd  Compliant 1   0.58%
78 HTL Hi-Tech Lubricants Ltd  Compliant   1.03%
79 HUBC Hub Power Company Ltd  Compliant   0.11%
80 HSPI Huffaz Seamless Pipe Ind. Ltd.  Compliant   0.00%
81 HSM Husein Sugar Mills Ltd  Compliant     0.01%*
82 ICI I. C. I. Pakistan Ltd  Compliant   0.03%
83 IBLHL IBL HealthCare Ltd.  Compliant   1.67%
84 IMSL Imperial Sugar Ltd  Compliant     0.00%*
85 INIL International Industries Ltd  Compliant   0.01%
86 ISL International Steels Ltd  Compliant   0.01%
87 ICL Ittehad Chemicals Ltd  Compliant   0.00%
88 JDMT Janana De Malucho Textile   Compliant   0.01%
89 JUBS Jubilee Spinning & Weaving Mills  Compliant   0.50%
90 KSBP K.S.B.Pumps Company Ltd  Compliant    0.05%*
91 KEL K-Electric Ltd  Compliant   1.36%
92 KSTM Khalid Siraj Textile Mills Ltd  Compliant   0.00%
93 KOHC Kohat Cement Co. Ltd.  Compliant   1.79%
94 KOHE Kohinoor Energy Ltd  Compliant   0.01%
95 KOIL Kohinoor Industries Ltd  Compliant   0.00%
96 KTML Kohinoor Textile Mills Ltd  Compliant   2.46%
97 KAPCO Kot Addu Power Company Ltd  Compliant      4.95%**
98 LMSM LandMark Spinning Industries  Compliant   0.00%
99 LEUL Leather-Up Ltd  Compliant   0.00%
100 LINDE Linde Pakistan Ltd.  Compliant    0.01%*
101 LOADS Loads Limited  Compliant   0.62%
102 LOTCHEM Lotte Chemical Pakistan Ltd  Compliant    0.56%*
103 LUCK Lucky Cement Ltd  Compliant   1.67%
104 MACFL MACPAC Films Ltd  Compliant   0.00%
105 MLCF Maple Leaf Cement Factory  Compliant   0.06%
106 MARI Mari Petroleum Co. Ltd  Compliant   0.25%
107 MEBL Meezan Bank Ltd.  Compliant    0.00%*
108 MODAM Modaraba Al Mali  Compliant   0.00%
109 MTL Millat Tractors Ltd  Compliant   0.90%
110 MUGHAL Mughal Iron & Steel Industries  Compliant   0.17%
111 NATF National Foods  Compliant   0.02%
112 NRL National Refinery Ltd  Compliant   0.27%
113 NETSOL NetSol Technologies Ltd  Compliant   0.35%
114 NML Nishat Mills Ltd  Compliant   2.52%
115 OGDC Oil & Gas Development Company  Compliant      5.75%**
116 ORIXM Orix Modaraba  Compliant   0.00%
117 PAKMI First Pak Modaraba  Compliant   0.00%
118 PNSC Pakistan National Shipping Corporation  Compliant   2.35%
119 PTC Pakistan Telecommunication Company  Compliant    3.87%*
120 PKGS Packages Limited  Compliant    0.43%*
121 PMI First Prudential Modaraba  Compliant   0.08%
122 PAEL Pak Elektron Ltd  Compliant    0.00%*
123 PSMC Pak Suzuki Motor Co. Ltd  Compliant    0.67%*
124 PCAL Pakistan Cables Ltd  Compliant   0.01%
125 PICT Pakistan International Container Terminal  Compliant   0.52%
126 POL Pakistan Oilfields Ltd  Compliant   1.33%
127 PPP Pakistan Paper Products Ltd  Compliant   0.11%
128 PPL Pakistan Petroleum Ltd  Compliant   2.71%
129 PRL Pakistan Refinery Ltd  Compliant   0.10%
130 PSYL Pakistan Synthetics Ltd  Compliant   0.00%
131 PIOC Pioneer Cement Ltd  Compliant   1.47%
132 POWER Power Cement Ltd  Compliant   0.02%
133 QUICE Quice Food Industries Ltd  Compliant   1.57%
134 RAVT Ravi Textile Mills Ltd  Compliant   0.00%
135 REDCO Redco Textile  Compliant   0.01%
136 RPL Roshan Packages Ltd  Compliant   0.87%
137 RUBY Ruby Textile Mills Ltd  Compliant   0.00%
138 SMCPL Safe Mix Concrete Ltd  Compliant   0.24%
139 SAPL Sanofi Aventis Pakistan Ltd.  Compliant    0.09%*
140 SAZEW Sazgar Engineering Works  Compliant   0.00%
141 SEPL Security Papers Ltd  Compliant   2.81%
142 SKRS Sakrand Sugar Mills  Compliant     0.00%*
143 STCL Shabbir Tiles & Ceramics Ltd  Compliant   0.01%
144 SHEL Shell (Pakistan) Ltd  Compliant   0.07%
145 SHFA Shifa International Hospitals   Compliant   0.62%
146 SITC Sitara Chemical Industries Ltd  Compliant   0.08%
147 SML Shakarganj Mills  Compliant     0.04%*
148 SPL Sitara Peroxide Ltd  Compliant   0.08%
149 SNGP Sui Northern Gas Pipelines Ltd  Compliant   1.01%
150 SSGC Sui Southern Gas Co. Ltd.   Compliant 2   1.90%
151 SPEL Synthetic Products Ltd  Compliant   0.05%
152 SYS Systems Limited  Compliant   1.26%
153 TGL Tariq Glass Industries Ltd  Compliant   0.02%
154 TELE Telecard Limited  Compliant   0.18%
155 THCCL Thatta Cement Co. Ltd.  Compliant   1.13%
156 SEARL The Searle Company Ltd.  Compliant   0.28%
157 TOWL Towellers Limited  Compliant   0.21%
158 TPL TPL Trakker Limited  Compliant   2.28%
159 TREET Treet Corporation Ltd  Compliant   0.22%
160 TRIPF Tri-Pack Films  Compliant     0.02%*
161 TRPOL Tri-Star Polyester  Compliant   0.00%
162 UDPL United Distributors (Pakistan)  Compliant   0.07%
163 WAHN Wah-Noble Chemicals Ltd  Compliant   0.04%
164 WYETH Wyeth Pakistan Ltd  Compliant     0.14%*
165 ZIL ZIL Limited  Compliant   0.02%

Rates are calculated based on June 2016 accounts

Dividend purification rate means investors of the respective company should purify dividend income by the following formula:

Dividend income received x Dividend purification rate

*These are provisional rates for dividend purification which are subject to final adjustment on the basis of respective company’s annual accounts for the year 2017.
**Dividend purification rate of DGKC is calculated on the basis of additional information provided by the company.
***OGDC scrip has been considered compliant due to circular debt issue and restriction on sellling government securities. However, income from the scrip will be purified by charity rate mentioned.

  1. As per September 2016 accounts
  2. As per last available accounts