July 30, 2021 (MLN): Telecard Limited informed PSX that it is now a Shariah Compliant Company based on the Shariah Compliance Screening conducted by Al-Hilal Shariah Advisors (Pvt.) Limited.
As such the Company has successfully cleared 4 out of 5 shariah screening filters. The Fatwa from Al-Hilal Shariah Advisors (Pvt.) Limited states that:
“We, Al-Hilal Shariah Advisors (Pvt.) Limited, have conducted Shariah Compliance Screening of Telecard Limited based on the financial statements of March 31, 2021.
We have thoroughly analyzed the financial statement on the basis of various Shariah screening criteria issued by our Shariah Supervisory Council. In light of the information provided and our evaluation, we found that the company has passed the 4 out of 5 shariah screening filters while 1 filter i.e., Illiquid Assets to Total Assets ratio is slightly below the desired threshold level.
The Shariah Supervisory Council of Al Hilal Shariah Advisors concluded that the issue of considerable illiquid assets remains a problem for services sector companies since they do not have considerable illiquid assets because of their nature of business and Asset light model and this becomes a hurdle for Shariah compliance clearance for such companies. In this regard, the Shariah Supervisory Council of Al Hilal Shariah Advisors recommends that the illiquid Assets to Total Assets ratio may not be considered while evaluating shariah compliance for such service providing companies given that the company financials meet the other desired criteria.
As per the above statement, the Shariah Board has approved the company to be Shariah Compliant. Hence it is resolved that it is permissible to invest in shares of Telecard Limited.”
