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.
COMPANIES FOR KMI 30 INDEX RECOMPOSITION BASED ON ACCOUNTS FOR JUNE 2022
No. | Ticker | Company Name | Charity Rate | Final Shariah Status |
1 | ABOT | Abbott Lab (Pakistan) Ltd * | 1.44% | Compliant |
2 | AGSML | Abdullah Shah Ghazi Sugar Mills * | 0.00% | Compliant1 |
3 | ADAMS | Adam Sugar Mills Ltd | 0.08% | Compliant1 |
4 | ADOS | Ados Pakistan Ltd | 0.06% | Non-Compliant |
5 | AGHA | Agha Steel Ind | 0.21% | Non-Compliant |
6 | AGP | AGP Limited * | 0.38% | Compliant |
7 | AGIL | Agriauto Industries Ltd | 0.08% | Compliant |
8 | AGL | Agritech Limited | 0.09% | Non-Compliant |
9 | AIRLINK | Air Link Communication Limited ^ | 0.18% | Compliant |
10 | ASL | Aisha Steel Ltd | 0.03% | Non-Compliant |
11 | ASC | Al Shaheer Corporation Ltd | 0.00% | Compliant |
12 | AABS | Al-Abbas Sugar Mills Ltd* | 1.96% | Non-Compliant1 |
13 | AGTL | Al-Ghazi Tractors Ltd | 0.13% | Compliant |
14 | ALTN | Altern Energy Ltd | 6.87% | Non-Compliant |
15 | ASTL | Amreli Steels Ltd | 0.00% | Compliant |
16 | ARPL | Archroma Pakistan Ltd * | 0.05% | Compliant |
17 | AHCL | Arif Habib Corporation Ltd | 15.55% | Non-Compliant |
18 | ADMM | Artistic Denim Mills Ltd | 0.05% | Non-Compliant |
19 | ASTM | Asim Textile Mills Ltd | 0.55% | Compliant |
20 | ATBA | Atlas Battery Ltd | 0.06% | Compliant |
21 | ATLH | Atlas Honda Ltd | 1.20% | Compliant |
22 | PREMA | At-Tahur Limited | 0.07% | Compliant |
23 | ACPL | Attock Cement Pakistan Ltd | 0.14% | Compliant |
24 | APL | Attock Petroleum Ltd | 0.40% | Compliant |
25 | ATRL | Attock Refinery Ltd | 0.56% | Compliant |
26 | AVN | Avanceon Limited * # | 0.18% | Compliant |
27 | ANL | Azgard Nine Ltd | 0.18% | Compliant |
28 | BGL | Balochistan Glass Ltd | 5.10% | Non-Compliant |
29 | BIPL | BankIslami Pakistan Ltd. ** | N/A | Compliant |
30 | BECO | Beco Steel Limited (Ravi Textile) | 0.00% | Compliant |
31 | BERG | Berger Paints Pakistan Ltd | 0.06% | Compliant |
32 | BWCL | Bestway Cement Ltd | 2.03% | Compliant |
33 | BIFO | Biafo Industries Ltd | 1.05% | Compliant |
34 | BCL | Bolan Castings Ltd | 0.02% | Compliant |
35 | BNL | Bunnys Limited | 0.00% | Compliant |
36 | BUXL | Buxly Paints Ltd | 0.00% | Compliant |
37 | CEPB | Century Paper & Board Mills | 0.00% | Compliant |
38 | CHCC | Cherat Cement Co. Ltd | 0.08% | Compliant |
39 | CPPL | Cherat Packaging Ltd | 0.01% | Compliant |
40 | CPHL | Citi Pharma Limited | 1.63% | Compliant |
41 | CLOV | Clover Pakistan Ltd | 0.05% | Compliant |
42 | CNERGY | Cnergyico PK Limited (Byco Petroleum) | 0.52% | Compliant |
43 | CTM | Colony Textile Mills Ltd | 0.02% | Compliant |
44 | CLVL | Cordoba Logistics | 2.72% | Compliant |
45 | CSAP | Crescent Steel & Allied Products | 1.08% | Compliant |
46 | CRTM | Crescent Textile Mills Ltd | 0.04% | Non-Compliant |
47 | DGKC | D.G. Khan Cement Co. Ltd | 2.60% | Compliant |
48 | DAWH | Dawood Hercules Corporation | 3.72% | Compliant |
49 | DOL | Descon Oxychem Ltd | 0.16% | Compliant |
50 | DCL | Dewan Cement Ltd | 0.02% | Compliant |
51 | DFSM | Dewan Farooq Spinning Mills Ltd | 0.00% | Compliant |
52 | DCR | Dolmen City REIT | 0.00% | Compliant |
53 | DSIL | DS Industries Ltd | 0.59% | Non-Compliant |
54 | DYNO | Dynea Pakistan Ltd | 0.07% | Compliant |
55 | ECOP | EcoPack Ltd | 0.01% | Non-Compliant |
56 | EMCO | EMCO Industries Ltd | 0.00% | Compliant |
57 | ENGRO | Engro Corporation Ltd | 4.01% | Compliant |
58 | EFERT | Engro Fertilizers Ltd * | 1.33% | Compliant |
59 | EPCL | Engro Polymer & Chemicals * | 1.53% | Compliant |
60 | EPQL | Engro Powergen Qadirpur Ltd * | 3.10% | Compliant |
61 | EXIDE | Exide Pakistan Ltd | 0.02% | Compliant1 |
62 | FRSM | Faran Sugar Mills Ltd | 0.90% | Compliant1 |
63 | FATIMA | Fatima Fertilizer Co. Ltd * | 1.35% | Compliant |
64 | FCCL | Fauji Cement Co. Ltd | 0.74% | Compliant |
65 | FFBL | Fauji Fertilizer Bin Qasim Ltd | 2.63% | Compliant |
66 | FFC | Fauji Fertilizer Company Ltd | 13.08% | Non-Compliant |
67 | FFL | Fauji Foods Ltd | 0.26% | Non-Compliant |
68 | FECTC | Fecto Cement Ltd | 0.17% | Compliant |
69 | FML | Feroze1888 Mills Ltd | 3.50% | Compliant |
70 | FEROZ | Ferozsons Laboratories Ltd | 2.28% | Compliant |
71 | FECM | First Elite Capital Modaraba ** | N/A | Compliant |
72 | FHAM | First Habib Modaraba ** | N/A | Compliant |
73 | PAKMI | First Pak Modaraba ** | N/A | Compliant |
74 | PMI | First Prudential Modaraba ** | N/A | Compliant |
75 | FUDLM | First UDL Modaraba ** | N/A | Compliant |
76 | FLYNG | Flying Cement Co. Ltd | 0.00% | Compliant |
77 | FCEPL | Frieslandcampins Engro Foods Limited * | 0.15% | Compliant |
78 | GTECH | G3 Technologies Limited (Service Fabrics) | 48.82% | Non-Compliant |
79 | GTYR | General Tyre & Rubber Co. | 0.00% | Compliant |
80 | GHNI | Ghandhara Industries Ltd | 0.31% | Compliant |
81 | GHNL | Ghandhara Nissan Ltd | 1.17% | Compliant |
82 | GHGL | Ghani Glass Ltd | 0.00% | Compliant |
83 | GGGL | Ghani Global Glass Ltd | 0.27% | Compliant |
84 | GGL | Ghani Global Holdings Limited | 0.50% | Compliant |
85 | GVGL | Ghani Value Glass Ltd | 0.28% | Compliant |
86 | GWLC | Gharibwal Cement Ltd | 0.56% | Compliant |
87 | GFIL | Ghazi Fabrics International Ltd | 0.00% | Compliant |
88 | GLPL | Gillette Pakistan Ltd | 0.26% | Compliant |
89 | GSKCH | Glaxo SmithKline Consumer Healthcare | 0.80% | Compliant |
90 | GLAXO | GlaxoSmithKline Pakistan | 1.96% | Compliant |
91 | GATM | Gul Ahmed Textile Mills Ltd | 0.02% | Non-Compliant |
92 | HABSM | Habib Sugar Mills Ltd * | 4.99% | Compliant1 |
93 | HINOON | Highnoon Laboratories Ltd | 1.47% | Compliant |
94 | HINO | Hinopak Motors Ltd | 1.03% | Compliant1 |
95 | HTL | Hi-Tech Lubricants Ltd | 0.18% | Compliant |
96 | HCAR | Honda Atlas Cars (Pakistan) Ltd | 1.25% | Compliant1 |
97 | HUBC | Hub Power Company Ltd ## | 5.94% | Non-Compliant |
98 | IBLHL | IBL HealthCare Ltd | 0.00% | Compliant |
99 | ICI | ICI Pakistan Ltd | 0.02% | Compliant |
100 | IMAGE | Image Pakistan | 0.00% | Compliant |
101 | IDYM | Indus Dyeing & Mfg Co. Ltd. | 0.18% | Non-Compliant3 |
102 | INDU | Indus Motor Company Ltd | 3.17% | Non-Compliant |
103 | ILP | Interloop Limited | 0.06% | Compliant |
104 | INIL | International Industries Ltd | 0.02% | Compliant |
105 | ISL | International Steels Ltd | 0.03% | Compliant |
106 | ITTEFAQ | Ittefaq Iron Industries | 0.08% | Compliant |
107 | ICL | Ittehad Chemicals Ltd | 0.06% | Compliant |
108 | JDMT | Janana De Malucho Textile | 0.00% | Compliant |
109 | JVDC | Javedan Corporation Ltd | 2.55% | Compliant |
110 | KSBP | K.S.B.Pumps Company Ltd | 0.25% | Compliant |
111 | KASBM | KASB Modaraba ** | N/A | Compliant |
112 | KEL | K-Electric Ltd | 0.43% | Compliant |
113 | KOHC | Kohat Cement Co. Ltd | 1.44% | Compliant |
114 | KOHE | Kohinoor Energy Ltd | 1.09% | Compliant |
115 | KOIL | Kohinoor Industries Ltd | 5.38% | Non-Compliant |
116 | KOSM | Kohinoor Spinning Mills Ltd | 0.00% | Non-Compliant |
117 | KTML | Kohinoor Textile Mills Ltd | 0.10% | Compliant |
118 | KAPCO | Kot Addu Power Company | 5.16% | Non-Compliant |
119 | LPL | Lalpir Power Ltd * | 10.29% | Non-Compliant |
120 | LOADS | Loads Limited | 0.14% | Non-Compliant |
121 | LOTCHEM | Lotte Chemical Pakistan Ltd | 1.35% | Non-Compliant |
122 | LUCK | Lucky Cement Ltd | 0.45% | Compliant |
123 | MACFL | MACPAC Films Ltd | 0.00% | Compliant |
124 | MLCF | Maple Leaf Cement Factory | 0.04% | Compliant |
125 | MARI | Mari Petroleum Co. Ltd | 2.24% | Compliant |
126 | MFL | Matco Foods Ltd | 0.06% | Non-Compliant |
127 | MEBL | Meezan Bank Ltd ** | N/A | Compliant |
128 | MRNS | Mehran Sugar Mills Ltd | 0.94% | Non-Compliant3 |
129 | MERIT | Merit Packaging Ltd | 0.00% | Non-Compliant |
130 | MTL | Millat Tractors Ltd | 0.48% | Compliant |
131 | MFFL | Mitchell’s Fruit Farms Ltd* | 0.02% | Compliant |
132 | MODAM | Modaraba al Mali ** | N/A | Compliant |
133 | MUGHAL | Mughal Iron & Steel Industries | 0.10% | Compliant |
134 | NATF | National Foods Ltd | 0.16% | Compliant |
135 | NRL | National Refinery Ltd | 0.02% | Compliant |
136 | NETSOL | NetSol Technologies Ltd # | 0.30% | Compliant |
137 | NICL | Nimir Industrial Chemicals Ltd | 0.00% | Non-Compliant |
138 | NRSL | Nimir Resins Ltd | 0.00% | Non-Compliant |
139 | NCL | Nishat (Chunian) Ltd | 0.06% | Compliant |
140 | NCPL | Nishat Chunian Power Ltd | 5.86% | Non-Compliant |
141 | NML | Nishat Mills Ltd | 1.58% | Compliant |
142 | NPL | Nishat Power Limited | 5.96% | Non-Compliant |
143 | OCTOPUS | Octopus Digital Limited * | 6.91% | Non-Compliant |
144 | OGDC | Oil & Gas Development Co. Ltd ^^ | 4.28% | Compliant |
145 | OBOY | Oilboy Energy Limited (Drekkar Kingsway Ltd) | 0.00% | Non-Compliant |
146 | OLPM | OLP Modaraba (Orix Modaraba) ** | N/A | Compliant |
147 | PACE | Pace (Pakistan) Ltd | 0.74% | Non-Compliant |
148 | PKGS | Packages Limited * | 0.27% | Compliant |
149 | PAKD | Pak DataCom Ltd.# | 1.21% | Non-Compliant |
150 | PAEL | Pak Elektron Ltd | 0.00% | Compliant |
151 | PSMC | Pak Suzuki Motor Co. Ltd | 0.83% | Compliant |
152 | PKGP | Pakgen Power Ltd | 9.05% | Non-Compliant |
153 | PABC | Pakistan Aluminium Beverages | 0.97% | Compliant |
154 | PCAL | Pakistan Cables Ltd | 0.00% | Compliant |
155 | PIAA | Pakistan International Airlines Corporation Limited | 0.06% | Non-Compliant |
156 | PIBTL | Pakistan International Bulk Terminal Ltd | 0.27% | Compliant |
157 | PICT | Pakistan International Container Terminal # | 2.47% | Compliant |
158 | PNSC | Pakistan National Shipping Corporation ^^ | 2.08% | Compliant |
159 | POL | Pakistan Oilfields Ltd | 4.33% | Compliant |
160 | PAKOXY | Pakistan Oxygen Limited | 0.30% | Compliant |
161 | PPL | Pakistan Petroleum Limited ^^ | 4.82% | Compliant |
162 | PRL | Pakistan Refinery Ltd | 0.01% | Compliant |
163 | PSO | Pakistan State Oil Co. Ltd | 0.72% | Compliant |
164 | PSX | Pakistan Stock Exchange Ltd. | 30.79% | Non-Compliant |
165 | PTC | Pakistan Telecommunication (PTCL) | 6.18% | Non-Compliant |
166 | PTL | Panther Tyre Limited | 0.13% | Compliant |
167 | PIOC | Pioneer Cement Ltd | 0.05% | Compliant |
168 | POWER | Power Cement Ltd | 1.11% | Compliant |
169 | REWM | Reliance Weaving Mills | 0.19% | Non-Compliant |
170 | RPL | Roshan Packages Ltd | 0.48% | Compliant |
171 | RUPL | Rupali Polyester Ltd. | 0.06% | Compliant |
172 | SPWL | Saif Power Ltd *** | 0.03% | No Opinion |
173 | SAIF | Saif Textile Mills Ltd | 0.00% | Non-Compliant |
174 | SMTM | Samin Textiles Ltd. | 0.01% | Non-Compliant3 |
175 | SAPL | Sanofi-aventis Pakistan Ltd | 0.23% | Compliant |
176 | SSML | Saritow Spinning Mills Ltd. | 0.00% | Compliant |
177 | SAZEW | Sazgar Engineering Works | 0.00% | Compliant |
178 | SEPL | Security Papers Ltd | 5.75% | Non-Compliant |
179 | SGF | Service Global Footwear Limited | 4.70% | Compliant |
180 | SRVI | Service Industries Ltd | 0.61% | Non-Compliant |
181 | SGPL | SG Power Ltd. | 0.00% | Compliant |
182 | STCL | Shabbir Tiles & Ceramics Ltd | 0.86% | Compliant |
183 | STJT | Shahtaj Textile Ltd. | 0.00% | Compliant |
184 | STML | Shams Textile Mills Ltd. | 0.01% | Compliant |
185 | SHEL | Shell (Pakistan) Ltd | 0.27% | Compliant |
186 | SHEZ | Shezan International Ltd. | 0.05% | Compliant |
187 | SCL | Shield Corporation Ltd | 0.00% | Compliant |
188 | SHFA | Shifa International Hospitals | 0.61% | Compliant |
189 | STPL | Siddiqsons Tin Plate Ltd | 0.21% | Non-Compliant |
190 | SITC | Sitara Chemical Industries Ltd | 0.00% | Compliant |
191 | SPL | Sitara Peroxide Ltd | 0.01% | Compliant |
192 | SNGP | Sui Northern Gas Pipelines Ltd ^^ | 0.89% | Compliant3 |
193 | SSGC | Sui Southern Gas Co. Ltd ^^ | 1.10% | Compliant3 |
194 | SPEL | Synthetic Products Ltd | 0.02% | Compliant |
195 | SYS | Systems Limited | 0.17% | Compliant |
196 | TGL | Tariq Glass Industries Ltd | 0.05% | Compliant |
197 | TATM | TATA Textile Mills Ltd. | 0.52% | Compliant |
198 | TELE | Telecard Limited # | 3.68% | Compliant |
199 | THALL | Thal Limited | 3.56% | Compliant |
200 | THCCL | Thatta Cement Company | 0.33% | Compliant |
201 | TOMCL | The Organic Meat Company Limited | 0.00% | Compliant |
202 | SEARL | The Searle Company Ltd | 0.04% | Compliant |
203 | TPL | TPL Corporation | 3.04% | Compliant |
204 | TPLP | TPL Properties Ltd | 3.75% | Compliant |
205 | TPLT | TPL Trakker Limited | 4.54% | Compliant |
206 | TREET | Treet Corporation Ltd | 0.13% | Compliant |
207 | TRG | TRG Pakistan Ltd | 27.01% | Non-Compliant |
208 | TRIPF | Tri-Pack Films Ltd * | 0.10% | Non-Compliant |
209 | TSPL | Tri-Star Power Ltd. | 14.98% | Non-Compliant |
210 | UCAPM | Unicap Modaraba ** | N/A | Compliant3 |
211 | UNITY | Unity Foods Ltd | 0.66% | Compliant3 |
212 | GEMUNSL | Universal Network Systems Limited | 0.73% | Compliant |
213 | WAVES | WAVES Singer Pakistan Ltd | 0.83% | Compliant |
214 | WTL | WorldCall Telecom Ltd | 2.48% | Compliant3 |
215 | YOUW | Yousaf Weaving Mills Ltd | 0.00% | Non-Compliant |
216 | 786 | 786 Investments Ltd | N/A | NC by nature |
217 | AKDHL | AKD Hospitality Limited (AKD Capital) | N/A | NC by nature |
218 | AHL | Arif Habib Ltd | N/A | NC by nature |
219 | BIPLS | BIPL Securities Limited | N/A | NC by nature |
220 | DEL | Dawood Equities Ltd | N/A | NC by nature |
221 | ESBL | Escorts Investment Bank Ltd | N/A | NC by nature |
222 | FCSC | First Capital Securities Corp. Ltd | N/A | NC by nature |
223 | FDIBL | First Dawood Investment Bank Ltd | N/A | NC by nature |
224 | FNEL | First National Equities Ltd | 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 | MDTL | Media Times Ltd | N/A | NC by nature |
229 | NEXT | Next Capital Limited | N/A | NC by nature |
230 | OLPL | Orix Leasing Pakistan Ltd | N/A | NC by nature |
231 | PAKT | Pak Tobacco Company Ltd. | 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 2021/2022.
** Only illiquid Assets to Total Assets and Net Liquid Asset ratios calculated of all Islamic Financial Institutions.
*** Status of ‘No Opinion’ is ascertained due to non-disclosure of the required information as per last available financial statement i.e breakup of sales revenue including interest element. Therefore, such companies will not be included in KMI Islamic Index.
^ As debt ratio is marginally exceeding the set threshold therefore, considered as Compliant.
^^ These are considered compliant because these companies mainly includes circular debt or due to current economic situation their receivables are significantly increased/ share price reduces below the 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.
## While calculating HUBC’s Income ratio, China Power Hub Generation Company (CPHGC) which is an associated investee company of HUBC whose revenues are consolidated with HUBC’s revenues upto the the extent of HUBC’s investment.
- Based on March-2022 accounts
- Based on May-2022 accounts
- As per last available annual / half-yearly accounts