 We shall continue with our conversation on methodologies used for stock picking in the context of investing in shares. We have already discussed two methodologies or 2.5 if we consider MSCI methodologies as one and a half. There are other methodologies which we listed at the end of the first module on the topic and one of them was footsie methodology. You must be thinking that this is the course of Islamic finance and Sharia methodologies are running in the West. We talked about S&P and Dow Jones which is an American company. We talked about MSCI an American company footsie this is a British company. Non-Muslims are giving us methodologies to pick up stock i.e. to invest in shares. To clarify this point let me tell you that these methodologies are named as such otherwise Dow Jones S&P methodology was developed by their Sharia board which comprised at that time some of the most prominent Sharia scholars drawn from the Muslim world. Similarly in case of MSCI methodology their first methodology I had the privilege of working with them to develop that methodology for MSCI and we had a very prominent Sharia board working for us. Footsie methodology again this is developed by Sharia scholars advising footsie. So although these are known as methodologies of these organizations in the West however the methodologies were actually developed by Sharia scholars. Now let us come to footsie methodology. Total debt divided by total assets so this is again a methodology which is total assets denominated. It was in the case by the way in the beginning footsie methodology was market cap denominated as well but later on they changed. So total debt divided by total assets should not exceed 33.33%. Cash plus interest bearing securities divided by total assets should not exceed 33.33%. Receivables plus cash divided by total assets should be less than or equal to 50%. Now they have changed the language a bit instead of should be less than 50% they say should be less than 50% or it can be 50%. Then they have total interest and non permissible income divided by total revenue should be less than or equal to 5%. IE it should not exceed this 5% threshold. So this is the footsie methodology which is total asset denominated. Then we have securities commission Malaysia methodology. This is a simpler one they say that total debt divided by total assets should be less than or equal to 33%. So this is debt divided by total assets and then they said cash divided by total assets should be less than or equal to 33% only to financial screen. So they have simplified the process of stock picking in a Sharia compliant way. So all the fund managers for example all those who are investing in stocks listed on Bursa Malaysia and they want to be deemed as Sharia compliant they would be picking up their stock on the basis of this financial criteria. Now Pakistan stock exchange methodology which is also known as KMI methodology IE KSC Meezan index methodology KMI methodology. Pakistanis are very difficult. They have come up with the most complicated methodology for stock picking in a Sharia compliant way. It's complicated and it's very comprehensive as well and this shows how Pakistani brain work. It's wonderful. I like this methodology although this is a bit complicated. It's different from other methodologies as well. This means that the Sharia scholars in this country they have independent thinking. So let's see. Interest bearing debt divided by total assets should be less than 37%. Now we will talk about 37% and 33% but for the time being let's go through these numbers. Non-compliant assets divided by total assets should be less than 33%. So they are talking about non-compliant assets. Remember other methodologies they are very simple and they are similar to each other. Pakistanis they want to look different. Illiquid assets divided by total assets should be greater than 25%. Then the other one, market price per share should be at least equal to or greater than net liquid assets per share. One, two, three, four. So these are three of four main aspects of the KMI methodology. And of course net liquid assets per share is defined as well. So it is equal to total assets minus illiquid assets minus long-term liabilities minus current liabilities divided by number of shares outstanding. So this is a very detailed methodology and then the last one is non-compliant income to total revenue should be less than 5%. So this is the methodology used by a number of players in the market which are picking up Sharia-compliant stock from PSX. And by the way there is a very long list of Sharia-compliant stock listed on PSX. Now we go for AOFE criteria. AOFE criteria this is in the form of a Sharia standard. Interest bearing debt divided by market capitalization should be less than 30%. So they are a bit more conservative. The other ones they were 33%, they have reduced it to 30%. Interest taking deposits divided by market capitalization should be less than 30%. They are not talking about cash here. Remember in other methodologies it's a cash plus interest bearing security. So they are saying 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 30%. This wasn't there previously. Now AOFE criteria has revised it in light of what Pakistanis have been doing in Karachi. So Pakistani thinking has in fact started influencing the other methodologies as well. And of course impermissible income plus interest income divided by total income should be less than 5%. So we have one, two, three, four. All these methodologies are relevant and they are compliant and good on their own. And it all depends on which market you are targeting for fund raising. If you are trying to raise funds from Pakistan and if you are using the methodology of Securities Commission Malaysia, that wouldn't work.