Debt to Total Assets ratio should be less than 33%.
Debt, in this case, is classified as any interest-bearing debts including conventional lease liabilities. Zero coupon bonds and preference shares are, both, by definition, part of debt.

Note: We use an even lower threshold of 33% Debt vs. 37% Debt used in the referenced Screening Criteria in the above ratio as per the guidelines of our Shari’a Board given that the Indian market just considering the NSE gives a large number of Shari’a compliant shares and thus a lower threshold of 33% is the correct ratio to be used for the Indian market.

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.

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.

Note: Non-compliant income below the above threshold should be purified by removing the relevant proportion from received dividends and donating the same to charity.

The ratio of Non-Liquid Assets to Total Assets should be at least 20%.
Non-Liquid Assets, here are defined as any asset that Shari’a permits to be traded at a value other than its par value.

The Market Capitalization should be greater than the Net Liquid Assets calculated as:

(Total Assets – Non Liquid Assets – Current Liabilities) / total number of shares outstanding