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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 Recomposition List- Kmi 30 Islamic Index For The Period Ended December 2023. (Complete Ratios)

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No. Ticker Company Name Income Ratio (NCInc/TR < 5%) Final Shariah Status
1 ABOT Abbott Lab (Pakistan) Ltd 1.16% Compliant
2 ACPL Attock Cement Pakistan Ltd * 0.26% Compliant
3 ADMM Artistic Denim Mills Ltd* 0.16% Non-Compliant
4 AGHA Agha Steel Ind* 0.19% Non-Compliant
5 AGIL Agriauto Industries Ltd * 0.42% Compliant
6 AGL Agritech Limited 2.93% Non-Compliant
7 AGP AGP Limited  0.41% Compliant
8 AGSML Abdullah Shah Ghazi Sugar Mills  0.06% Compliant1
9 AGTL Al-Ghazi Tractors Ltd  1.24% Compliant
10 AHCL Arif Habib Corporation Ltd * 39.08% Non-Compliant
11 AIRLINK AirLink Communication Pvt Limited* 0.23% Compliant
12 AKDHL AKD Hospitality Limited (AKD Capital) * 100.00% Non-Compliant
13 ALTN Altern Energy Ltd* 31.06% Non-Compliant
14 ANL Azgard Nine Ltd * 1.40% Compliant
15 APL Attock Petroleum Ltd * 1.56% Compliant
16 ARPL Archroma Pakistan Ltd 0.00% Compliant1
17 ASC Al Shaheer Corporation Ltd * 0.00% Compliant3
18 ASL Aisha Steel Ltd * 0.16% Non-Compliant
19 ASTL Amreli Steels Ltd * 0.01% Non-Compliant
20 ASTM Asim Textile Mills Ltd * 1.92% Compliant
21 ATBA Atlas Battery Ltd * 0.11% Compliant
22 ATLH Atlas Honda Ltd * 3.14% Compliant1
23 ATRL Attock Refinery Ltd * 2.62% Compliant
24 AVN Avanceon Limited 0.06% Compliant
25 BATA Bata (Pakistan) Ltd  2.15% Compliant
26 BCL Bolan Castings Ltd * 0.04% Compliant
27 BERG Berger Paints Pakistan Ltd* 0.16% Compliant
28 BGL Balochistan Glass Ltd * 0.00% Compliant
29 BIFO Biafo Industries Ltd * 0.38% Compliant
30 BIPL BankIslami Pakistan Ltd.** N/A Compliant
31 BML Bank Makramah Limited** N/A Compliant
32 BNL Bunnys Limited* 0.18% Compliant
33 BUXL Buxly Paints Ltd* 0.00% Compliant
34 BWHL Baluchistan Wheels Ltd* 4.71% Compliant
35 CEPB Century Paper & Board Mills * 0.06% Compliant
36 CHCC Cherat Cement Co. Ltd * 0.22% Compliant
37 CLOV Clover Pakistan Ltd * 1.15% Compliant
38 CLVL Cordoba Logistics & Ventures Limited * 12.76% Non-Compliant
39 CNERGY Cnergyico PK Limited (Byco Petroleum) * 0.25% Compliant
40 COLG Colgate Palmolive (Pakistan)* 2.64% Non-Compliant
41 CPHL Citi Pharma* 3.85% Compliant
42 CPPL Cherat Packaging Ltd * 0.07% Compliant
43 CRTM Crescent Textile Mills Ltd * 0.00% Compliant
44 CSAP Crescent Steel & Allied Products * 9.18% Non-Compliant
45 CTM Colony Textile Mills Ltd * 0.09% Compliant
46 DAWH Dawood Hercules Corporation  5.98% Non-Compliant
47 DCL Dewan Cement Ltd * 0.00% Compliant
48 DCR Dolmen City REIT * 0.00% Compliant
49 DFML Dewan Farooque Motors Ltd * 68.76% Non-Compliant
50 DFSM Dewan Farooq Spinning Mills Ltd * 0.00% Compliant
51 DGKC D.G. Khan Cement Co. Ltd * 3.17% Compliant
52 DOL Descon Oxychem Ltd * 3.34% Compliant
53 DSIL DS Industries Ltd * 38.17% Non-Compliant
54 DYNO Dynea Pakistan Ltd * 0.58% Compliant
55 ECOP EcoPack Ltd * 0.00% Non-Compliant
56 EFERT Engro Fertilizers Ltd 1.41% Compliant
57 ENGRO Engro Corporation Ltd  # 5.20% Compliant
58 EPCL Engro Polymer & Chemicals 0.82% Compliant
59 EPQL Engro Powergen Qadirpur Ltd 8.37% Non-Compliant
60 EXIDE Exide Pakistan Ltd* 0.03% Compliant1
61 FABL Faysal Bank Ltd.** N/A Compliant
62 FATIMA Fatima Fertilizer Co. Ltd 1.83% Compliant
63 FCCL Fauji Cement Co. Ltd * 0.30% Compliant
64 FCEPL Frieslandcampins Engro Foods Limited 0.15% Compliant
65 FECTC Fecto Cement Ltd * 0.13% Compliant
66 FEROZ Ferozsons Laboratories Ltd * 1.19% Compliant
67 FFBL Fauji Fertilizer Bin Qasim Ltd  2.83% Compliant
68 FFC Fauji Fertilizer Company Ltd  8.86% Non-Compliant
69 FFL Fauji Foods Ltd 1.02% Compliant
70 FHAM First Habib Modaraba** N/A Compliant
71 FLYNG Flying Cement Co. Ltd * 0.00% Compliant
72 FUDLM First UDL Modaraba ** N/A Compliant
73 GADT Gadoon Textile Mills Ltd* 0.78% Non-Compliant
74 GAL Ghandhara Automobiles Limited (Ghandhara Nissan Ltd)* 2.87% Compliant
75 GAMON Gammon Pakistan Ltd* 0.14% Compliant
76 GATM Gul Ahmed Textile Mills Ltd * 0.12% Non-Compliant
77 GCIL Ghani Chemical Industries Ltd* 7.01% Non-Compliant
78 GFIL Ghazi Fabrics International Ltd* 0.00% Compliant
79 GGGL Ghani Global Glass Ltd* 3.38% Compliant
80 GGL Ghani Global Holdings Limited * 4.26% Compliant
81 GHGL Ghani Glass Ltd* 0.00% Compliant
82 GHNI Ghandhara Industries Ltd* 0.81% Compliant
83 GLAXO GlaxoSmithKline Pakistan 0.52% Compliant
84 GLPL Gillette Pakistan Ltd* % 5.22% Non-Compliant
85 GTYR General Tyre & Rubber Co.* 0.01% Compliant
86 GVGL Ghani Value Glass Ltd* 0.35% Compliant
87 GWLC Gharibwal Cement Ltd* 1.77% Compliant
88 HABSM Habib Sugar Mills Ltd 2.50% Non-Compliant1
89 HALEON Haleon Pakistan Limited (Glaxo SmithKline Consumer Healthcare)  1.57% Compliant
90 HCAR Honda Atlas Cars (Pakistan) Ltd * 6.70% Non-Compliant1
91 HINO Hinopak Motors Ltd * 0.20% Compliant1
92 HINOON Highnoon Laboratories Ltd 0.45% Compliant
93 HTL Hi-Tech Lubricants Ltd * 0.23% Compliant
94 HUBC Hub Power Company Ltd * # 5.92% Compliant
95 IBLHL IBL HealthCare Ltd* 0.00% Compliant
96 ICL Ittehad Chemicals Ltd* 0.03% Compliant
97 IDYM Indus Dyeing & Mfg Co. Ltd.* 0.17% Non-Compliant
98 ILP Interloop Limited* 0.31% Compliant
99 IMAGE Image Pakistan* 0.03% Compliant
100 INDU Indus Motor Company Ltd* 7.69% Non-Compliant
101 INIL International Industries Ltd* 0.16% Compliant
102 ISL International Steels Ltd* 0.16% Compliant
103 ITTEFAQ Ittefaq Iron Industries* 0.13% Compliant
104 JATM J. A. Textile Mills Ltd.* 2.78% Compliant
105 JSML Jauharabad Sugar Mills Ltd. 0.07% Compliant1
106 JVDC Javedan Corporation Ltd* 2.30% Compliant
107 KAPCO Kot Addu Power Company* 97.69% Non-Compliant
108 KEL K-Electric Ltd 0.74% Compliant3
109 KOHC Kohat Cement Co. Ltd* 3.47% Compliant
110 KOHE Kohinoor Energy Ltd* 3.39% Compliant
111 KOHP Kohinoor Power Company* 8.62% Non-Compliant
112 KOIL Kohinoor Industries Ltd* 11.95% Non-Compliant
113 KOSM Kohinoor Spinning Mills Ltd* 0.00% Non-Compliant
114 KSBP K.S.B.Pumps Company Ltd 0.13% Compliant
115 KTML Kohinoor Textile Mills Ltd* 1.15% Compliant
116 LCI Lucky Core Industries Limited * 0.67% Compliant
117 LOADS Loads Limited* 0.05% Non-Compliant
118 LOTCHEM Lotte Chemical Pakistan Ltd 0.81% Compliant
119 LPL Lalpir Power Ltd 9.20% Non-Compliant
120 LUCK Lucky Cement Ltd* 1.71% Compliant
121 MACFL MACPAC Films Ltd* 0.38% Compliant
122 MARI Mari Petroleum Co. Ltd* 1.69% Compliant
123 MEBL Meezan Bank Ltd** N/A Compliant
124 MERIT Merit Packaging Ltd* 0.00% Compliant
125 META Meta Tech Health Limited* 0.00% Non-Compliant
126 MFFL Mitchell’s Fruit Farms Ltd* 0.02% Compliant
127 MFL Matco Foods Ltd* 0.06% Non-Compliant
128 MIRKS Mirpurkhas Sugar Mills Ltd. 0.11% Compliant1
129 MLCF Maple Leaf Cement Factory* 0.13% Compliant
130 MODAM Modaraba al Mali** N/A Compliant
131 MRNS Mehran Sugar Mills Ltd 0.13% Compliant1
132 MTL Millat Tractors Ltd* 0.49% Compliant
133 MUGHAL Mughal Iron & Steel Industries* 0.11% Compliant
134 NATF National Foods Ltd* 0.02% Non-Compliant
135 NCL Nishat (Chunian) Ltd* 0.04% Non-Compliant
136 NCPL Nishat Chunian Power Ltd * 15.15% Non-Compliant
137 NESTLE Nestle Pakistan Ltd 0.16% Compliant
138 NETSOL NetSol Technologies Ltd* ## 0.06% Compliant
139 NICL Nimir Industrial Chemicals Ltd * 0.00% Non-Compliant
140 NML Nishat Mills Ltd* 1.97% Compliant
141 NPL Nishat Power Limited* 34.17% Non-Compliant
142 NRL National Refinery Ltd* 0.05% Compliant
143 NRSL Nimir Resins Ltd* 0.00% Compliant
144 OBOY Oilboy Energy Limited (Drekkar Kingsway Ltd) * 0.05% Compliant
145 OCTOPUS Octopus Digital Pvt Ltd. ## 0.29% Compliant
146 OGDC Oil & Gas Development Co. Ltd* ^ 10.68% Non-Compliant
147 OLPM OLP Modaraba (Orix Modaraba)** N/A Compliant
148 OTSU Otsuka Pakistan Ltd.* 1.15% Non-Compliant
149 PABC Pakistan Aluminium Beverage Cans Ltd 1.95% Compliant
150 PACE Pace (Pakistan) Ltd* 0.06% Non-Compliant
151 PAEL Pak Elektron Ltd 0.00% Compliant
152 PAKD Pak DataCom Ltd.* ## 2.40% Compliant
153 PAKOXY Pakistan Oxygen Limited 0.22% Compliant
154 PCAL Pakistan Cables Ltd* 0.07% Non-Compliant
155 PHDL Pakistan Hotels Developers Ltd* 2.01% Non-Compliant
156 PIBTL Pakistan International Bulk Terminal Ltd* 0.34% Compliant
157 PICT Pakistan International Container Terminal 1.20% Non-Compliant
158 PIOC Pioneer Cement Ltd* 0.18% Compliant
159 PKGP Pakgen Power Ltd 12.18% Non-Compliant
160 PKGS Packages Limited 0.46% Compliant
161 PMI First Prudential Modaraba ** N/A Compliant
162 PNSC Pakistan National Shipping Corporation* 12.08% Non-Compliant
163 POL Pakistan Oilfields Ltd* 17.31% Non-Compliant
164 POML Punjab Oil Mills Ltd.* 0.29% Compliant
165 POWER Power Cement Ltd* 0.07% Compliant
166 PPL Pakistan Petroleum Limited* ^ 3.57% Compliant
167 PREMA At-Tahur Limited * 0.01% Compliant
168 PRL Pakistan Refinery Ltd* 0.80% Compliant
169 PSMC Pak Suzuki Motor Co. Ltd 1.32% Compliant
170 PSO Pakistan State Oil Co. Ltd* 0.38% Compliant
171 PSX Pakistan Stock Exchange Ltd.* 36.68% Non-Compliant
172 PTC Pakistan Telecommunication (PTCL) 6.62% Non-Compliant
173 PTL Panther Tyres Limited* 0.03% Compliant
174 QUICE Quice Food Industries Ltd * 0.27% Compliant
175 RPL Roshan Packages Ltd* 0.71% Compliant
176 RUPL Rupali Polyester Ltd.* 0.08% Compliant
177 SAIF Saif Textile Mills Ltd* 0.00% Non-Compliant
178 SAZEW Sazgar Engineering Works* 0.00% Compliant
179 SEARL Searle Company Ltd* 0.06% Compliant
180 SEPL Security Papers Ltd* 11.09% Non-Compliant
181 SGF Service Global Footwear Limited 3.32% Compliant
182 SHDT Shadab Textile Mills Ltd.* 0.07% Compliant
183 SHEL Shell (Pakistan) Ltd 0.36% Compliant
184 SHEZ Shezan International Ltd.* 0.01% Compliant
185 SHFA Shifa International Hospitals* 0.24% Compliant
186 SHSML Shahmurad Sugar Mills Ltd 0.80% Compliant1
187 SIEM Siemens (Pakistan) Engineering 0.14% Non-Compliant1
188 SNGP Sui Northern Gas Pipelines Ltd ^ 2.02% Compliant3
189 SPEL Synthetic Products Ltd* 0.62% Compliant
190 SPWL Saif Power Ltd *** 0.16% No Opinion
191 SRVI Service Industries Ltd 0.12% Non-Compliant
192 SSGC Sui Southern Gas Co. Ltd ^ 0.85% Compliant3
193 STCL Shabbir Tiles & Ceramics Ltd* 0.70% Compliant
194 STPL Siddiqsons Tin Plate Ltd* 0.56% Non-Compliant
195 SYS Systems Limited 0.44% Compliant
196 TCORP Tariq Corporation Ltd 0.03% Compliant1
197 TELE Telecard Limited* ## 0.11% Compliant
198 TGL Tariq Glass Industries Ltd* 0.15% Compliant
199 THALL Thal Limited* 8.19% Non-Compliant
200 THCCL Thatta Cement Company* 2.67% Compliant
201 TOMCL The Organic Meat Company* 0.00% Compliant
202 TOWL Towellers Limited * 1.16% Compliant
203 TPL TPL Corporation* 23.52% Non-Compliant
204 TPLP TPL Properties Ltd * 4.07% Compliant
205 TPLT TPL Trakker Ltd * 2.52% Compliant
206 TREET Treet Corporation Ltd* 0.12% Compliant
207 TRG TRG Pakistan Ltd* 100.00% Non-Compliant
208 TRIPF Tri-Pack Films Ltd 0.40% Non-Compliant
209 TSPL Tri-Star Power Ltd.* 15.14% Non-Compliant
210 UBDL United Brands Limited* 0.37% Compliant
211 UCAPM Unicap Modaraba** N/A Compliant
212 UNITY Unity Foods Ltd* 0.82% Compliant
213 WAHN Wah-Noble Chemicals Ltd* 0.31% Compliant
214 WAVES Waves Corporation Limited 0.01% Compliant
215 WAVESAPP Waves Home Appliances Limited 0.08% Compliant
216 WTL WorldCall Telecom Ltd 5.18% Non-Compliant
217 YOUW Yousaf Weaving Mills Ltd* 0.00% Non-Compliant
218 AHL Arif Habib Ltd N/A NC by Nature
219 DEL Dawood Equities Ltd N/A NC by Nature
220 ESBL Escorts Investment Bank Ltd N/A NC by Nature
221 FCSC First Capital Securities Corp. Ltd N/A NC by Nature
222 FDIBL First Dawood Investment Bank Ltd N/A NC by Nature
223 FNEL First National Equities Ltd N/A NC by Nature
224 GRR Globe Residency REIT N/A NC by Nature
225 HUMNL Hum Network Ltd N/A NC by Nature
226 ICIBL Invest Capital Investment Bank N/A NC by Nature
227 JSCL Jahangir Siddiqui & Co. Ltd N/A NC by Nature
228 KHTC Khyber Tobacco Company N/A NC by Nature
229 LSEPL LSE PropTech Limited N/A NC by Nature
230 LSEVL LSE Venture Limited N/A NC by Nature
231 MCBIM MCB Investment Management Limited N/A NC by Nature
232 MDTL Media Times Ltd N/A NC by Nature
233 NEXT Next Capital Limited N/A NC by Nature
234 OLPL OLP Financial Services private Limited N/A NC by Nature

NOTE: The above criteria of KMI Index is approved by Sharia’h Supervisory Board of KMI Index Partner, MBL.

NC= Non – Compliant

N/A = Not Applicable

* These are provisional rates for dividend purification, which are subject to final adjustment upon announcement of respective companies’ annual accounts for the year 2023/2024

** Only illiquid Assets to Total Assets and Net Liquid Asset ratios calculated of all Islamic Financial Institutions.

*** As breakup of Late Payment Interest is not given in financial therefore, SPWL is classified as No Opinion.

# Due to circular debt and high interest rate which resulting in higher delayed payment charges, HUBC and ENGRO are slightly exceeding the threshold of Non compliant income ratio. Therefore, exception is given over income ratio.

## As these are from service based sector, therefore their fixed assets are not significant in value therefore, these are considered as Compliant and relaxation provided over Illiquid assets to Total Assets ratio and Net Liquid Asset per share.

## As these are from service based sector, therefore their fixed assets are not significant in value therefore, these are considered as Compliant and relaxation provided over Illiquid assets to Total Assets ratio and Net Liquid Asset per share.

  1. Based on September-2023 accounts
  2. As per last available annual / half-yearly accounts