Offering adminstration solutions for your investment needs
.JPG)
Pakistan Stock Exchange (KSE Meezan Index) Methodology•Interest-bearing debt divided by total assets should be less than 37%•Non-compliant assets divided by total assets should be less than 33%•Illiquid assets divided by total assets should be greater than 25%•Market price per share should be at least equal to or greater than net liquid assets per share
Net Liquid Assets Per Share is equal to [Total Assets - Illiquid Assets - Long-term Liabilities - Current Liabilities] divided by No. of Shares Outstanding•Non-compliant income to total revenue should be less than 5%
AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) CriteriaInterest-bearing debt divided by market capitalization should be less than 30%
•Interest-taking deposits divided by market capitalization should be less than 30%•Total market value of illiquid assets divided by total assets should be more than or equal to 30%•[Impermissible income + interest income] divided by total income should be less than 5%
STEP3: Treatment of Impermissible Income•Impermissible income should be purified so that the net income received from investing in stocks of the companies with some impermissible activities•Please note that if the impermissible income is significant (more than 5%), the share would be deemed non-compliant and hence should not be bought to start with•Dividend purification money should be given away in charity
Net Liquid Assets Per Share is equal to [Total Assets - Illiquid Assets - Long-term Liabilities - Current Liabilities] divided by No. of Shares Outstanding•Non-compliant income to total revenue should be less than 5%
AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) CriteriaInterest-bearing debt divided by market capitalization should be less than 30%
•Interest-taking deposits divided by market capitalization should be less than 30%•Total market value of illiquid assets divided by total assets should be more than or equal to 30%•[Impermissible income + interest income] divided by total income should be less than 5%
STEP3: Treatment of Impermissible Income•Impermissible income should be purified so that the net income received from investing in stocks of the companies with some impermissible activities•Please note that if the impermissible income is significant (more than 5%), the share would be deemed non-compliant and hence should not be bought to start with•Dividend purification money should be given away in charity
