Guidelines for Islamic Modes of Finance, SBP

Essentials and model agreements for islamic modes of

Info icon This preview shows pages 87–90. Sign up to view the full content.

View Full Document Right Arrow Icon
Essentials and Model Agreements for Islamic Modes of Financing BACK Essentials of Islamic Modes of Financing Murabaha Facility Agreement Musawamah Facility Agreement Lease Agreement Salam Agreement Musharaka Investment Agreement Istisna Agreement Agreement for Interest free Loan Mudaraba Financing Agreement Syndication Mudaraba Agreement In the Name of Allah, the Merciful, the Compassionate MUSHARAKA INVESTMENT AGREEMENT (For Incorporated Companies) Annexure-I | Musharaka Investment Agreement | Musharaka Investment Agreement-1 | | Musharaka Investment Agreement-2 | BASIS OF PROVISIONAL PAYMENT TO THE INSTITUTION<> (All Figures are Illustrative) Agreed Ratio For Profit Sharing Rupees A) Client s investment 70% Rs. 100 B) Institution s investment 30% Rs. 100 C) Total Investment (A+B) Rs. 200 D) Agreed Projected Rate of Return on Total Investment 60% E) Projected amount of Profit on total investment Rs. 120 F) Allocation of Projected Profit in mutually agreed profit sharing Ratio of: Client 70% Rs. 84 Institution 30% Rs. 36 Rs. 120 G) Quarterly provisional payment of projected Profit 36/4 = Rs. 9 per quarter H) Allocation of actual net profit of Rs. 160 on year end: Client Rs. 112 Institution Rs. 48 Rs. 160 I) Therefore, final net payment to the Institution will be Rs. 12 (Rs. 48 - Rs. 36) file:///C|/Documents and Settings/Administrator/D...idelines for Islamic Modes by SBP/musharaka/2.htm (1 of 2) [2/23/2008 11:57:24 PM]
Image of page 87

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
State Bank of Pakistan - The Central Bank <> Based on the projected rate of Return stipulated in Clause 4(vi) © 2003 State Bank of Pakistan. All Rights Reserved. Disclaimer | Instructions State Bank of Pakistan I.I. Chundrigar Road, Karachi, Pakistan. Phone: (+9221-24450298, Fax: (+9221) 9212440 http://www.sbp.org.pk/ file:///C|/Documents and Settings/Administrator/D...idelines for Islamic Modes by SBP/musharaka/2.htm (2 of 2) [2/23/2008 11:57:24 PM]
Image of page 88
State Bank of Pakistan - The Central Bank Home Jobs & Careers Site Map Feedback Contact Us Help Desks Press Release April 15, 2005 State Bank s Shariah Board Approves Essentials and Model Agreements for Islamic Modes of Financing BACK Essentials of Islamic Modes of Financing Murabaha Facility Agreement Musawamah Facility Agreement Lease Agreement Salam Agreement Musharaka Investment Agreement Istisna Agreement Agreement for Interest free Loan Mudaraba Financing Agreement Syndication Mudaraba Agreement In the Name of Allah, the Merciful, the Compassionate MUSHARAKA INVESTMENT AGREEMENT (For Incorporated Companies) Annexure-2 | Musharaka Investment Agreement | Musharaka Investment Agreement-1 | | Musharaka Investment Agreement-2 | PARAMETERS AGREED I) Ratio of sharing of Profit (Ratios indicative only) Institution 18% Client 70% Other PLS Funds 12% II) Other Conditions, if any (For example, relating to valuation of inventories, depreciation policies, agreed level or quantum of admissible costs etc.) © 2003 State Bank of Pakistan. All Rights Reserved.
Image of page 89

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 90
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern