FAQs

Question

What are the Shariah Screening norms of TASIS?

Answer

To be Shariah Compliant according to TASIS norms, the company needs to satisfy all the three conditions given below:

1. Debt Ratio of the company should be less than or equal to 25%
2. Interest Ratio should be less than or equal to 3%
3. Liquid Assets Ratio should be less than or equal to 90%

Apart from this, we also consider the following three norms before evaluating the financial ratios of any given company:
a) Latest Financial data should be within a period of less than 3 years of current date.
b) We analyze the primary and secondary business dealings of the company to know whether they are as per the rulings of the Shariah.
c) We study the compliance status of any strategic investment by the company into its subsidiaries and/or associate companies, if any.


Allah Knows Best...