ISLAMIC FINANCE M.

Com (Evening) Semester 4th

Prof. Umer Zakah

At the start we have to deposit plot’s installment of RS 200,000, Elder son’s fee of RS 70,000
and younger son’s fee of RS 100000 for admission in superior and UMT respectively. At this
stage the position of the cash out flow will be.

Total Plan for Investment

Rs. Rs.

Total Amount 5,000,00

0
Investment in Business 150,00
0
Elder Son Fee 70,00
0
Younger Son Fee 100,00
0
Plot First Installment 200,00
0
First Month Expenses 40,00
0
Amount in Home for any Emergency 440,00
0
TOTAL 1,000,00
0
Remaining Amount 4,00
0,000
INVESTMENT IN MEZAN BANK

Investment in Mezan Bank

2,000,00
Certificate of Islamic investment @ 10% 0
1,000,00
Certificate of Islamic investment @ 7.68% 0
1,000,00 4,00
Mezan bachat account @ 7.87 % 0 0,000

Remaining Amount -

SUPERIOR UNIVERSITY LAHORE

ISLAMIC FINANCE M.Com (Evening) Semester 4th

Prof. Umer Zakah

After paying all these expenses we have left a amount of Rs.4,630,000 for investment. As the
monthly expenditure is Rs. 40,000 so we should focus on getting monthly the monthly return out
of our investment because we to have at least Rs. 40,000 to run our house hold expenditure and
after that we have other things to look after as well so for the purpose house hold expenditure
we have three areas to invest

1. A mudaraba with business man

2. Investment in Islamic bank

3. Our own business

Because of the heavy installment of plot we cannot invest in the bank as the profit rate is very
low. We also not in interest to crate mudarba with investor because risk is very high and return is
low as compared to risk, So we do the business of broiler chicken.

Reason for choosing boiler chicken business

 Mutton is so expensive

 Beaf is dangerous to health

 Fish business has limited season

 Easily approachable

 Cheap

 Easily available through out the year

 It is used approximately in all dishes of meat

 Another reason for choosing of this business is that my couson has the business of tent
services in gulshan Ravi halls so I have a great opportunity.

Expenses and the incomes given below:

SUPERIOR UNIVERSITY LAHORE

ISLAMIC FINANCE M.Com (Evening) Semester 4th

Prof. Umer Zakah

INVESTMENT FOR BUSINESS
SHOP ADVANCE RENT AS SECURITY 60,00
0
MONTHLY RENT 10,00
0
AGENT COMMISSION 10,00
0
CAGES 20,00
0
WASTAGE DRUM 1,50
0
BUTCHER TOOLS 5,00
0
RENOVATION AND TILES 25,00
0
DEEP FREEZER 15,00
0
TOTAL INVESTMENT 146,50
0

Chicken purchased per day 150 kg net weight @ RS130 per kg

Chickens purchased in a day of RS 19,500

Monthly purchased RS 585,000

Return on investment:

Chicken sale per day 150 @ RS 150= 22,500

Monthly sale Rs. 675,000

DETAIL OF MONTHLY EXPENSES Rs.

UTILITY BILLS 5,00
0

SUPERIOR UNIVERSITY LAHORE

ISLAMIC FINANCE M.Com (Evening) Semester 4th

Prof. Umer Zakah

MONTHLY RENT EXP. 10,00
0
LABOUR CHARGES 20,00
0
Misc. EXPENSES 2,00
0
TOTAL SHOP EXPENSES 37,00
0

RETURN ON INVESTMENT Rs.

675,
Monthly Sales (150 X 150) (22,500 X 30) 000
585,
PURCHASES PER MONTH (150 x 130 ) 000
90,
Gross profit 000
37,
Less Monthly Shop Expenses 000
53,
NET PROFIT 000

After achieving our household expenditure we need to look after other issues like plot’s
installments, elder and younger son’s fees.

For these purposes we are going to invest in the Mezan bank

Reason for choosing Mezan bank:

1. AAA rank

2. First premier bank in Pakistan

3. Profitability ratio is very high

Certificate of Islamic investment COII:

COII offers fixed quarterly profit that is based on the profits earned by the bank. Rate of return
when investing the amount is 10% after negotiating we will invest RS 2,000,000 in this account

SUPERIOR UNIVERSITY LAHORE

ISLAMIC FINANCE M.Com (Evening) Semester 4th

Prof. Umer Zakah

and from the profit we will pay the college fee of younger brother and amount will mature after 2
years.

Calculation RS 2,000,000 @10%= RS 200,000 per annum

Profit after six month= RS 100,000

Certificate of Islamic investment COII:

COII offers profit @ 7.68% and amount will mature after 1 year and we invest in this account of
RS 1000,000

Mezan bachat account:

MBA offers 7.87% when amount fall in between 500k-1M we also invest in this account of RS
1,000,000 we can withdraw profit after a month and also withdraw the money after a month.

SUPERIOR UNIVERSITY LAHORE

ISLAMIC FINANCE M.Com (Evening) Semester 4th

Prof. Umer Zakah

SUPERIOR UNIVERSITY LAHORE