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 2020
Sr. # | Ticker | Company | Status | Charity Rate |
1 | AABS | Al-Abbas Sugar Mills Ltd * | Compliant1 | 1.09% |
2 | ABOT | Abbott Lab (Pakistan) Ltd * | Compliant | 1.00% |
3 | ACPL | Attock Cement Pakistan Ltd | Compliant | 0.07% |
4 | AGIL | Agriauto Industries Ltd | Compliant | 0.77% |
5 | AGL | Agritech Limited | Non-Compliant3 | 0.27% |
6 | AGP | AGP Limited * | Compliant | 0.16% |
7 | AGSML | Abdullah Shah Ghazi Sugar Mills * | Compliant1 | 0.00% |
8 | AGTL | Al-Ghazi Tractors Ltd * | Compliant | 0.16% |
9 | AHCL | Arif Habib Corporation Ltd | Non-Compliant | 16.44% |
10 | AKZO | Akzo Nobel Pakistan | Compliant3 | 1.50% |
11 | ANL | Azgard Nine Ltd | Non-Compliant | 0.79% |
12 | APL | Attock Petroleum Ltd | Compliant | 0.93% |
13 | ARPL | Archroma Pakistan Ltd * | Compliant1 | 0.00% |
14 | ASC | Al Shaheer Corporation Ltd | Compliant3 | 0.00% |
15 | ASL | Aisha Steel Ltd | Non-Compliant | 0.05% |
16 | ASTL | Amreli Steels Ltd | Non-Compliant | 0.01% |
17 | ATBA | Atlas Battery Ltd | Compliant | 0.09% |
18 | PREMA | At-Tahur Limited | Compliant | 0.23% |
19 | ATRL | Attock Refinery Ltd | Compliant | 1.46% |
20 | AVN | Avanceon Limited * | Non-Compliant | 0.53% |
21 | BATA | Bata (Pakistan) Ltd * | Compliant | 0.27% |
22 | BCL | Bolan Castings Ltd | Non-Compliant | 0.06% |
23 | BGL | Balochistan Glass Ltd | Non-Compliant | 0.03% |
24 | BIFO | Biafo Industries Ltd | Compliant | 2.05% |
25 | MEBL | Meezan Bank Limited * | Compliant | N/A |
26 | BIPL | BankIslami Pakistan Ltd. * | Compliant ** | N/A |
27 | BWCL | Bestway Cement Ltd | Compliant | 2.55% |
28 | BYCO | Byco Petroleum Pakistan Ltd | Non-Compliant | 0.54% |
29 | CEPB | Century Paper & Board Mills | Compliant | 0.05% |
30 | CHCC | Cherat Cement Co. Ltd | Compliant | 0.08% |
31 | CLOV | Clover Pakistan Ltd | Compliant3 | 4.44% |
32 | CPPL | Cherat Packaging Ltd | Compliant | 0.01% |
33 | CRTM | Crescent Textile Mills Ltd | Non-Compliant | 0.48% |
34 | CSAP | Crescent Steel & Allied Products | Non-Compliant | 7.70% |
35 | CTM | Colony Textile Mills Ltd | Non-Compliant | 1.30% |
36 | CWSM | Chakwal Spinning Mills Ltd | Non-Compliant3 | 0.00% |
37 | CYAN | Cyan Limited | NC by Nature | |
38 | DAWH | Dawood Hercules Corporation * | Non-Compliant | 5.90% |
39 | DCL | Dewan Cement Ltd | Compliant | 0.02% |
40 | DCR | Dolmen City REIT | Compliant | 0.00% |
41 | DFSM | Dewan Farooq Spinning Mills Ltd | Compliant | 0.00% |
42 | DGKC | D.G. Khan Cement Co. Ltd | Compliant | 3.18% |
43 | DOL | Descon Oxychem Ltd | Compliant | 0.17% |
44 | DSIL | DS Industries Ltd | Compliant | 0.03% |
45 | DYNO | Dynea Pakistan Ltd | Compliant | 0.10% |
46 | ECOP | EcoPack Ltd | Non-Compliant | 0.00% |
47 | EFERT | Engro Fertilizers Ltd * | Compliant | 1.19% |
48 | FCEPL | Frieslandcampins Engro Foods Limited * | Non-Compliant | 0.09% |
49 | ENGRO * | Engro Corporation Ltd ***** | Compliant | 5.43% |
50 | EPCL | Engro Polymer & Chemicals * | Compliant | 3.98% |
51 | EPQL | Engro Powergen Qadirpur Ltd *** | No Opinion | 0.88% |
52 | EXIDE | Exide Pakistan Ltd | Compliant1 | 0.03% |
53 | FATIMA | Fatima Fertilizer Co. Ltd * | Compliant | 3.36% |
54 | FCCL | Fauji Cement Co. Ltd | Compliant | 0.18% |
55 | FECTC | Fecto Cement Ltd | Compliant | 0.69% |
56 | FEROZ | Ferozsons Laboratories Ltd | Compliant | 1.37% |
57 | FFBL | Fauji Fertilizer Bin Qasim Ltd * | Non-Compliant | 3.73% |
58 | FFC | Fauji Fertilizer Company Ltd * | Non-Compliant | 5.89% |
59 | FFL | Fauji Foods Ltd * | Non-Compliant | 0.84% |
60 | FLYNG | Flying Cement Co. Ltd | Compliant | 0.00% |
61 | FML | Feroze1888 Mills Ltd | Compliant | 0.19% |
62 | GAIL | Ghani Automobile Industries Ltd | Compliant | 0.11% |
63 | GATM | Gul Ahmed Textile Mills Ltd | Non-Compliant | 0.03% |
64 | GGGL | Ghani Global Glass Ltd | Compliant | 0.11% |
65 | GGL | Ghani Global Holdings Limited | Compliant | 0.07% |
66 | GHGL | Ghani Glass Ltd | Compliant | 0.00% |
67 | GHNI | Ghandhara Industries Ltd | Compliant | 0.02% |
68 | GHNL | Ghandhara Nissan Ltd | Compliant | 1.39% |
69 | GLAXO | GlaxoSmithKline Pakistan * | Compliant | 0.82% |
70 | GSKCH | Glaxo SmithKline Consumer Healthcare * | Compliant | 0.21% |
71 | GTYR | General Tyre & Rubber Co. | Non-Compliant | 0.01% |
72 | GVGL | Ghani Value Glass Ltd | Compliant | 0.28% |
73 | GWLC | Gharibwal Cement Ltd | Compliant | 2.35% |
74 | HABSM | Habib Sugar Mills Ltd * | Compliant1 | 4.53% |
75 | HASCOL | Hascol Petroleum Ltd | Non-Compliant3 | 0.21% |
76 | HCAR | Honda Atlas Cars (Pakistan) Ltd | Compliant1 | 0.37% |
77 | HINOON | Highnoon Laboratories Ltd * | Compliant | 0.58% |
78 | HSM | Husein Sugar Mills Ltd * | Compliant1 | 0.00% |
79 | HTL | Hi-Tech Lubricants Ltd | Compliant | 1.10% |
80 | HUBC | Hub Power Company Ltd | Non-Compliant | 7.58% |
81 | IBLHL | IBL HealthCare Ltd | Compliant | 0.93% |
82 | ICI | ICI Pakistan Ltd | Compliant | 0.07% |
83 | ICL | Ittehad Chemicals Ltd | Compliant | 0.00% |
84 | INDU | Indus Motor Company Ltd | Non-Compliant | 2.60% |
85 | INIL | International Industries Ltd | Compliant | 0.01% |
86 | ISL | International Steels Ltd | Compliant | 0.01% |
87 | ITTEFAQ | Ittefaq Iron Industries | Compliant | 0.10% |
88 | KAPCO | Kot Addu Power Company | Non-Compliant | 12.92% |
89 | KEL | K-Electric Ltd | Compliant | 0.87% |
90 | KOHC | Kohat Cement Co. Ltd | Compliant | 0.07% |
91 | KOIL | Kohinoor Industries Ltd | Compliant | 2.31% |
92 | KOSM | Kohinoor Spinning Mills Ltd | Non-Compliant | 0.00% |
93 | KTML | Kohinoor Textile Mills Ltd | Compliant | 0.33% |
94 | LOADS | Loads Limited | Non-Compliant | 0.31% |
95 | LOTCHEM | Lotte Chemical Pakistan Ltd * | Non-Compliant | 2.97% |
96 | LPL | Lalpir Power Ltd * | Non-Compliant | 0.43% |
97 | LUCK | Lucky Cement Ltd | Compliant | 1.33% |
98 | MARI | Mari Petroleum Co. Ltd | Compliant | 2.71% |
99 | MDTL | Media Times Ltd | Non-Compliant | N/A |
100 | MERIT | Merit Packaging Ltd | Non-Compliant | 0.11% |
101 | MFL | Matco Foods Ltd | Non-Compliant | 0.17% |
102 | MLCF | Maple Leaf Cement Factory | Compliant | 0.05% |
103 | MTL | Millat Tractors Ltd | Compliant | 0.30% |
104 | MUGHAL | Mughal Iron & Steel Industries | Compliant | 0.15% |
105 | NATF | National Foods Ltd | Compliant | 0.02% |
106 | NCL | Nishat (Chunian) Ltd | Non-Compliant | 0.07% |
107 | NCPL | Nishat Chunian Power Ltd | Non-Compliant | 14.61% |
108 | NETSOL | NetSol Technologies Ltd | Compliant | 3.61% |
109 | NML | Nishat Mills Ltd | Compliant | 3.66% |
110 | NPL | Nishat Power Limited | Non-Compliant | 16.39% |
111 | NRL | National Refinery Ltd | Compliant | 0.04% |
112 | NRSL | Nimir Resins Ltd | Compliant | 0.00% |
113 | OGDC | Oil & Gas Development Co. Ltd **** | Compliant | 6.05% |
114 | PACE | Pace (Pakistan) Ltd | Non-Compliant | 0.47% |
115 | PAEL | Pak Elektron Ltd * | Compliant | 0.02% |
116 | PAKOXY | Pakistan Oxygen Limited * | Compliant | 0.00% |
117 | PIBTL | Pakistan International Bulk Terminal Ltd | Non-Compliant | 0.85% |
118 | PICT | Pakistan International Container Terminal * | Compliant | 1.70% |
119 | PIOC | Pioneer Cement Ltd | Non-Compliant | 0.18% |
120 | PKGP | Pakgen Power Ltd | Non-Compliant | 0.71% |
121 | PKGS | Packages Limited | Compliant | 0.26% |
122 | PMI | First Prudential Modaraba | Non-Compliant ** | N/A |
123 | PNSC | Pakistan National Shipping Corporation | Compliant | 3.62% |
124 | POL | Pakistan Oilfields Ltd ****** | Compliant | 6.63% |
125 | POWER | Power Cement Ltd | Compliant | 0.19% |
126 | PPL | Pakistan Petroleum Limited | Compliant | 1.80% |
127 | PRL | Pakistan Refinery Ltd | Non-Compliant | 0.10% |
128 | PSMC | Pak Suzuki Motor Co. Ltd * | Non-Compliant | 0.14% |
129 | PSO | Pakistan State Oil Co. Ltd | Compliant | 0.55% |
130 | PSX | Pakistan Stock Exchange Ltd. | Non-Compliant | 38.26% |
131 | PTC | Pakistan Telecommunication (PTCL) * | Compliant | 1.76% |
132 | QUICE | Quice Food Industries Ltd | Compliant3 | 1.10% |
133 | REDCO | Redco Textiles Ltd | Compliant | 0.02% |
134 | RPL | Roshan Packages Ltd | Compliant | 1.80% |
135 | SAIF | Saif Textile Mills Ltd | Non-Compliant | 0.01% |
136 | SAZEW | Sazgar Engineering Works | Compliant | 0.00% |
137 | SEARL | The Searle Company Ltd | Compliant | 0.20% |
138 | SEPL | Security Papers Ltd | Compliant | 4.87% |
139 | SERF | Service Fabrics Ltd | Non-Compliant | 0.00% |
140 | SHEL | Shell (Pakistan) Ltd * | Compliant | 0.07% |
141 | SHSML | Shahmurad Sugar Mills Ltd * | Non-Compliant1 | 0.02% |
142 | SKRS | Sakrand Sugar Mills Ltd * | Compliant1 | 0.00% |
143 | SNGP | Sui Northern Gas Pipelines Ltd | Compliant3 | 1.46% |
144 | SPEL | Synthetic Products Ltd | Compliant | 0.00% |
145 | SPL | Sitara Peroxide Ltd | Compliant | 0.01% |
146 | SPWL | Saif Power Ltd *** | No Opinion | 0.01% |
147 | SRVI | Service Industries Ltd * | Non-Compliant | 0.00% |
148 | SSGC | Sui Southern Gas Co. Ltd | Compliant3 | 2.30% |
149 | STCL | Shabbir Tiles & Ceramics Ltd | Compliant | 0.12% |
150 | STPL | Siddiqsons Tin Plate Ltd | Compliant | 1.36% |
151 | SYS | Systems Limited * | Non-Compliant | 4.28% |
152 | TELE | Telecard Limited | Non-Compliant | 0.88% |
153 | TGL | Tariq Glass Industries Ltd | Non-Compliant | 0.03% |
154 | THALL | Thal Limited | Non-Compliant | 5.35% |
155 | THCCL | Thatta Cement Company | Compliant | 1.14% |
156 | TPL | TPL Corporation | Non-Compliant | 5.67% |
157 | TREET | Treet Corporation Ltd | Non-Compliant | 0.10% |
158 | TRG | TRG Pakistan Ltd | Non-Compliant | 100.00% |
159 | TRIPF | Tri-Pack Films Ltd * | Non-Compliant | 0.00% |
160 | TRPOL | Tri-Star Polyester Ltd | Compliant | 0.01% |
161 | TSPL | Tri-Star Power Ltd. | Non-Compliant | 15.37% |
162 | UBDL | United Brands Limited | Non-Compliant | 0.04% |
163 | UNITY | Unity Foods Ltd | Compliant | 0.00% |
164 | WAVES | WAVES Singer Pakistan Ltd * | Compliant | 2.87% |
165 | WTL | WorldCall Telecom Ltd | Compliant | 3.73% |
166 | WYETH | Wyeth Pakistan Ltd * | Non-Compliant2 | 8.56% |
167 | YOUW | Yousaf Weaving Mills Ltd | Non-Compliant | 0.00% |
168 | HUMNL | Hum Network Ltd | NC by Nature | |
169 | 786 | 786 Investments Ltd | NC by Nature | |
170 | AHL | Arif Habib Ltd | NC by Nature | |
171 | BOK | Bank of Khyber | NC by Nature | |
172 | ESBL | Escorts Investment Bank Ltd | NC by Nature | |
173 | FCSC | First Capital Securities Corp. Ltd | NC by Nature | |
174 | FDIBL | First Dawood Investment Bank Ltd | NC by Nature | |
175 | HGFA | HBL Growth Fund – (A) | NC by Nature | |
176 | HIFA | HBL Investment Fund (A) | NC by Nature | |
177 | ICIBL | Invest Capital Investment Bank | NC by Nature | |
178 | IGIHL | IGI Holdings Ltd | NC by Nature | |
179 | JSCL | Jahangir Siddiqui & Co. Ltd | NC by Nature | |
180 | MUREB | Murree Brewery Company | NC by Nature | |
181 | PASL | Pervez Ahmed Securities Ltd | NC by Nature | |
182 | BNWM | Bannu Woollen Mills Ltd | Compliant | 0.57% |
183 | CHAS | Chashma Sugar Mills Ltd * | Non-Compliant1 | 0.05% |
184 | DAAG | Data Agro Limited | Compliant | 0.00% |
185 | FHAM | First Habib Modaraba | Compliant ** | N/A |
186 | FUDLM | First UDL Modaraba | Compliant ** | N/A |
187 | GADT | Gadoon Textile Mills Ltd | Non-Compliant | 0.06% |
188 | ILP | Interloop Limited | Compliant | 0.26% |
189 | JSML | Jauharabad Sugar Mills Ltd.* | Compliant1 | 0.02% |
190 | KOHE | Kohinoor Energy Ltd | Non-Compliant | 10.76% |
191 | KSBP | K.S.B.Pumps Company Ltd * | Compliant | 0.13% |
192 | LEUL | Leather-Up Limited | Non-Compliant | 5.05% |
193 | MACFL | MACPAC Films Ltd | Compliant | 0.00% |
194 | MFFL | Mitchell’s Fruit Farms Ltd * | Non-Compliant1 | 0.00% |
195 | NAGC | Nagina Cotton Mills Ltd. | Non-Compliant | 0.46% |
196 | ORIXM | Orix Modaraba | Compliant ** | N/A |
197 | PCAL | Pakistan Cables Ltd | Compliant | 0.03% |
198 | PHDL | Pakistan Hotels Developers Ltd | Compliant | 0.14% |
199 | PSYL | Pakistan Synthetics Ltd. | Compliant | 0.01% |
200 | SFL | Sapphire Fibres Ltd. | Compliant | 1.94% |
201 | SHDT | Shadab Textile Mills Ltd. | Compliant | 0.80% |
202 | SHEZ | Shezan International Ltd. | Compliant | 0.05% |
203 | SHFA | Shifa International Hospitals | Compliant | 0.13% |
204 | SIEM | Siemens (Pakistan) Engineering * | Non-Compliant1 | 0.02% |
205 | TOWL | Towellers Limited | Compliant | 0.88% |
206 | TPLP | TPL Properties Ltd | Non-Compliant | 15.39% |
207 | ZIL | ZIL Limited * | Compliant | 0.01% |
208 | FNEL | First National Equities Ltd | NC by Nature | |
209 | NEXT | Next Capital Limited | NC by Nature | |
210 | PIAA | Pakistan International Airlines Corporation Limited (PIACL) | Non-Compliant3 | 0.05% |
NOTE: The above criteria of KMI Index is approved by Sharia’h Supervisory Board of KMI Index Partner, MBL Group.
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
** Only illiquid Assets to Total Assets and Net Liquid Asset ratios calculated of all Islmaic Financial Institutions.
*** Status is not 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.
****OGDC is facing circular debt issues. Company is bound to retain interest bearing TFC/Bonds having no permission to sell from government. Further, company had provided written confirmation that its non compliant income ratio will be less than 5% due to lower interest rates during July-Dec 2020.
*****Due to increase in income ratio,ENGRO acknowledged that due to Covid -19 their plants were completely suspended for approximately two months which results dicline in their revenue. However,compared to June 2020, income ratio has been improved in Sep-2020.
****** Income ratio exceeds 5%. However,compared to June 2020, income ratio has been improved in Sep-2020.
- Based on March-2020 accounts
- Based on May-2020 accounts
- As per last available annual / half-yearly accounts