Shares that were disallowed in March 2007 analysis

Shares that were disallowed in March 2007 analysis. Explanation is given below. It should be noted that you may consider the rules too strict / not strict enough for yourself:

Company Reason

SNGP E

SSGC E

LUCK E

TELE A & E

POL B

TRG B

PIOC E

JPGL E

PPTA E

AACIL E

HCAR E
ANL E

NCL E

ATRL C

APL B

DAWH B
DANC E

NRL B

PIAA E

BOSI E

NML E

DGKC E

CSAP E

WAZIR E

PNSC B

ATLH E

GTYR E

DSFL E

KOHW E

PCCL E

MTL B

GADT E

CRESCENT TEXTILE B & E

IBFL D & E

Reason Explanation

A Haram Income Ratio should be <5%

B Illiquid to Total Asset Ratio should be > 20%

C Liquid asset per share should be = to or less then the share price

D Investment in Non-Shariah Compliant Business Cap<33%

E Debt to Market Capitalization should be <45%

Most of the disallowed shares are due to reason E. But why Debt to Market Cap is used as opposed to Debt to Total Assets and why 45% and not 33% as in case of Reason D? And it is a bit more relaxed than the criteria posted on Al-meezan web site that was posted earlier (included at bottom of the e-mail). So it is again upto the individual to figure out what he/she feels comfortable with. In the end it is not Taqi Usmani or any other mujtahid who will be responsible. It will be u!!!

Source: A very Good Friend, Meezan Bank Websit