M/s. ABC Garments Ltd. was incorporated in 1980 and is a part of BCG Group. The client is engaged in the manufacturing of Men formal and casual wear. They sell its finished product to local and international buyers on credit basis. Their export sale constitutes of more than 50% of their sale. The company has a strong banking relationship with DIB and the owners are interested in Islamic banking. As the customer usually sell its goods on credit basis so there is always a short term requirement of funds for working capital needs. The owners of the company have approached the bank and informed about their working capital requirements (to manufacture the goods for the order). The customer has informed the bank that it has very sound relationships with its customers and till to date there is no default in payment and provides list of credible customers. Required: 1) You are required to suggest the best suitable structure of financing for the customer and the procedure for the customer keeping the view of devised structure. 2) Discuss the Shariah point of view of rollover and early rebate in Murabaha transaction
M/s. ABC Garments Ltd. was incorporated in 1980 and is a part of BCG Group. The client is engaged in
the manufacturing of Men formal and casual wear. They sell its finished product to local and international
buyers on credit basis. Their export sale constitutes of more than 50% of their sale.
The company has a strong banking relationship with DIB and the owners are interested in Islamic
banking. As the customer usually sell its goods on credit basis so there is always a short term requirement
of funds for working capital needs. The owners of the company have approached the bank and informed
about their working capital requirements (to manufacture the goods for the order). The customer has
informed the bank that it has very sound relationships with its customers and till to date there is no default
in payment and provides list of credible customers.
Required:
1) You are required to suggest the best suitable structure of financing for the customer and the procedure for
the customer keeping the view of devised structure.
2) Discuss the Shariah point of view of rollover and early rebate in Murabaha transaction
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