The document discusses various Islamic financing contracts including Istisna, Salam, Mudarabah, Musharakah, and Murabahah.
It provides definitions and key conditions for each contract type. For example, it explains that Istisna is a sale transaction where the commodity is not yet in existence, while Salam is an agreement where the seller supplies specific goods to the buyer at a future date in exchange for full payment at the time of contract.
The document also provides examples of how these contracts can be structured and applied in practice for various financing needs like home and project financing.
Bai muajjal bai salam and istisna in islamic banking pakistanFaria Fary
Bai muajjal bai salam and istisna in islamic banking pakistan. The explanation behind this paper is to aggregate up the report on the thoughts and use of Bai Muajjal Bai Salam and Istisna in Islamic Banking System.
Bai muajjal bai salam and istisna in islamic banking pakistanFaria Fary
Bai muajjal bai salam and istisna in islamic banking pakistan. The explanation behind this paper is to aggregate up the report on the thoughts and use of Bai Muajjal Bai Salam and Istisna in Islamic Banking System.
Diminishing Musharah is best instrument in my opinion for Housing Finance. With its structure and flexibility it can play very important role in growing the Islamic Finance.
There are three possible structures of musharakah partnership in a business venture, namely, permanent musharakah, temporary (redeemable) musharakah and diminishing musharakah. The term Musharakah means joint venture where profits are shared amongst the partners as agreed between them and losses have to be borne by each partner according to their investment.
In DM, a financer and a client participate in either ownership of a joint property, or in a joint commercial business, with the understanding that the client partner will buy the equity share of the financier partner over an agreed period of time until the title to the equity is completely transferred to the client by payments of installments to the financier for purchase over the agreed period. The buying and selling of equity is not stipulated in the partnership contract as it is not allowed - one partner is allowed to give only a promise to buy.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Attending a job Interview for B1 and B2 Englsih learners
Mode of islamic finance
1.
2. Name ROLL NUM
M Saeed Mustafa (Leader) MBPM-S15-007
Usman Parvaiz MBPM-F14-27
Usman Khan MBPM-S15-001
Umair Ali MBPM-S15-008
Mohsin Ahmed MBPM-S15-009
Qurat Ul Ain Tariq MBPM-F14-21
4. Introduction
Istisna is a kind of sale which is transacted
before the subject matter is produced.
Istisna’ is sale transaction where commodity is
transacted before it comes into existence.
Definition
It is an order to producer to manufacture a
specific commodity for the purchaser.
10. • Confirm Order
• Nature of Product
Incompliance with Islamic Principles
• Credibility of Manufacturer
Financial Statements, Banking Relationships, Assets and
Liabilities, ECIB (Electronic Credit Information Beaurue)
etc.
• Reliability of Order
Reliable ordering Source
• Market Situation
Easley Marketable product
11. • Step 1: Master Istisna Agreement
Time, Quantity, Price, Specification, Delivery Date
• Step 2: Security
According to the volume of finance required.
• Step 3:Istisna Price Either Full or in Installments
• Step 4: Request for Acceptance of Delivery
Identification & Separate storage, Goods Receiving Note , Risk Transfer
• Step 5: Agency Agreement
Constructive Possession, Agency Fee
• Step 6: Payment Adjustment
• Step 7: Order Cancellation
Agent will sale product in market with Bank’s mutual consent.
12. Istisna Share
Istisna Share in Total Financing
Over the Years
2009 2008 2007
Istisna Share 3729059000.00 1605460000.00 238,275,000
Total Financing 46716610000.00 40626920000.00 34,576,339,000
8.4 %
4%
.68%
13. Pricing Factor:
Normal Market Price
Istisna Price is Always Less the Market Price so that bank
can earn by selling product in market at market rate.
Nature of Product
Easily Marketable
Volume of Product
Creditability of Manufacturer
Risk Factor Involved
18. Introduction
The basic conditions for a validity of a sale in Shariah are three:
(1)The purchased commodity must be existing,
(2)The seller should have acquired the ownership of that commodity,
(3)The commodity must be in the physical or constructive possession
of the seller
19. Definition &Concept
Seller agrees to supply specific goods to the buyer at a future date in
exchange of an advanced price fully paid at spot.
Price is in cash but the supply of goods is deferred.
20. Purpose of Salam
oTo meet the needs of small farmers who need money to
grow their crops and to feed their family up to the time of
harvest.
oTo meet the need of working capital
oTo meet the needs of liquidity problem.
oTo meet the need of traders for import and export business.
21. Conditions of Salam
(1) It is necessary for the validity of Salam that the buyer
pays the price in full to the seller at the time of effecting
the sale, because the basic wisdom for allowing Salam is
to fulfill the instant need of the seller. If its not paid in
full, the basic purpose will not be achieved.
(2) Only those goods can be sold through a Salam contract in
which the quantity and quality can be exactly specified
e.g.precious stones cannot be sold on the basis of Salam
because each stone differ in quality, size, weight and
their exact specification is not possible.
(3) All details in respect to quality of goods sold must be
expressly specified leaving no ambiguity which may
lead to a dispute.
22. 4)The exact date and place of delivery must be specified in the contract.
5) there should be actual delivery of commodity.
6)The commodity of Salam contract should remain in the market right
from day of contract up to the date of delivery or at least at the date of
delivery
23. Delivery of Salam goods
oBefore delivery, goods will remain at the risk of seller.
oAfter delivery, risk will be transferred to the purchaser.
oPossession of goods can be physical or constructive.
oTransferring of risk and authority of use and utilization/consumption
are the basic ingredients of constructive possession.
24. Parallel Salam Diagram
1st Salam Seller
Salam
Sale
Delivery of
Commodity
Islamic Bank Islamic Bank
Purchaser Seller
2nd Salam Purchaser
Parallel
Salam
Delivery of
Commodity
26. “In Islamic finance, Mudarabah is a distinct
type of partnership, wherein one partner
provides the capital to an entrepreneur
(another partner) for investing in a
commercial initiative, with the objective of
sharing profit from the commercial entity.”
27. It is a kind of partnership in which business
one partner invest the money and another
partner for investing in commercial business.
The investment comes from one partner is
called that is called Rab ul mal
The partner which is responsible for the
management the Mudarabah business.
Profit is shared according to pre decided
ratio.
Loss is shared is only responsible to the Rab
ul mal.
28. In the Mudarabah the compulsory for making validity is the starting of
the contract on the proportion the earring profit and right of that profit.
They can be agreed on the sharing of profit on any ratio of which is the
pre decided.
And when both of parties enter in Mudarabah without deciding the profit
ratio and after that they will be agreed on the agreed equal profit ratio.
Some incentive may be given to mudarib
Without the pre decided agreed proportion of profit, the mudarib can’t
claim of salary, wages or remuneration of his services to the Mudarabah.
The Rab ul mal and mudarib can’t make the lump sum amount of profit
and also no one party can’t claim of share of any party at a specific rate
tied with the capital.
If the business has suffer in loss in some transaction and another hand
there are some profit so first that covered the loss after that the
remaining amount of the profit will be distributed both of parties that is
pre decided.
29. Mudarabah can be terminated at any time by
each of the party by giving notice to another
party.
If Mudarabah for a special term (purpose) so after
that the term Mudarabah will be terminated.
Termination means that mudarib has not right to
purchase the commodities, however he can sale
the existing the commodities before the time of
termination of Mudarabah.
If there is profit remain so that is distributed
between both of parties.
If there is no profit remain so mudarib can’t take
anything.
30. Monthly Mudarabah certificate.
Dollar Mudarabah certificate.
Meezan business plus a Mudarabah based
32. Musharakah is an Arabic
word, which means joint
Enterprise. It has not fix
rate of return but return
is based upon actual
profit.
33. Musharakah is a limited term whereas
“Shirkah” is more commonly used and
is a broader term.
There are two types of Shirkah:
Shirkat-ul-Milk
Shirkat-ul-Aqd
34.
35. All parties have share in a Capital.
All parties share profits as well as
losses.
Profits are distributed as per
agreed ratio.
Every partner is agent of others.
36. The customer goes to bank with
request of asset financing.
Bank enters into Musharakah with
customer.
Both(bank and customer) pay their
share to seller of asset.
Client promise to purchase bank
shares( units).
37. Customer request financing for a fixed
Asset costing Rs. 300 million.
Islamic Bank agrees to provide financing up
to 90% of the cost.
Joint Ownership Agreement is executed
between the bank and the Customer.
Bank will purchase 90% share in the asset
by paying Rs. 270 million to supplier.
Customers pays its share of Rs. 30 million.
38. Bank’s share is divided into five units.
Customer agrees to buyout Bank’s share
(units) on yearly basis and the
Undertaking is executed by the
customer.
Customer pays the rent for the usage of
the Bank’s units.
Rental reduces after purchase of each
unit by the customer.
After five years ownership of the asset is
completely transferred to the customer.
40. Murabahah is a particular kind of sale
where the seller expressly mentions
the incurred cost of the sold
commodity adds a profit to the cost
of the commodity and declares the
profit he has earned on the
commodity to the buyer.
41. 1) At spot
2) In installments
3) In lump sum after a certain time
42. • Asset to be sold must exist
• Sale price should be determined
• Sale must be unconditional
45. “Definition of ijarah tripe of contract in Islamic
finance is Islamic financial institutions
use ijarah contracts either as a lessor or a
lessee. Some jurists define ijarah as
ownership of the right to the benefit of using
an asset for a period in return for a
consideration. There are following conditions
must be attached”
46. It is the term used in Islamic Fiqh
That means that giving to something in the
rent.
It can be used in the two conditions are
following:
To employee the services on the wages of the
person i.e. A gives the wages to carry his
luggage.
That type of ijarah the rent of that particular
asset to used in which the Islamic economics
that is particular land or the property.
47. Leasing is the contract where an owner of an asset to its
use transfers to another person against its agreed price.
There is the ownership remains to the lessor.
So there is the ownership remains to the lessor so all the
right and liabilities relates to ownership are only to the
lessor. But all rights and liabilities relates to the uses
remains to the lessee.
Subject of the matter of lease should be valuable,
identified and qualified.
The period of lease must be clear of the both parties at the
time of contract.
The lessee is the responsible to the damage of the asst by
fraud and his negligence.
Any damage to the asset by not negligence of lessee so
the lessor will be responsible.
48. If the lessee may not obey the instruction of
the lease agreement so the lessor have right
to can terminate the lease agreement by
himself.
If there is not any condition so the lease
agreement can be terminated with the mutual
consent of both parties.
Conventional leases in all of cases the
termination right only has to the lessor that is
contrary to Shriah Laws.