Week 8 – Musharakah – Time Constrained Assignment

1. Mr. Ahmed and Mr. Ali intended to join their teaching skills for preparing
students for national competitive exams. The profit earned from this
teaching service will be shared on agreed ratio. Identify and describe the
type of Islamic commercial contract used in the above stated scenario.

shirkat ul amal in this they both applying there teaching skills and
earn profit.

2. Axon Group and Reliance Telecommunication are two telecom giants

operating in the pacific region. They both decided to invest a sum of 10m
in the Pakistan Telecom sector at ratio of 4m for prior and 6m million for
the latter one. Both the companies will be having control over the
operation of this venture. The profit is agreed to be shared according at
ratio of 45:55 while loss will be bared according to the capital contributed.
Identify and describe the type of Islamic commercial contract used in the
above stated scenario.

3. Mr. Umer and Mr. Ali entered into a Musharakah contract for investing in
Shari’ah Compliant equity stocks. The profit ratio will be decided after six
months seeing to the reaction of the market. The loss will be shared
according to the capital contribution. Rectify whether this transaction is
Shari’ah Compliant or Not, if No discuss the reason.

4. Mr. Raheel and Mr. Danish planned to buy some commodities on credit
from the wholesale sector of leather in Pakistan. They are intending to sell
those commodities in a trade expo at Bangladesh. The profits will be
shared on an agreed ratio. Identify and describe the type of Islamic
 commercial contract used in the above stated scenario.

5. Zaid, Amar and Baker get into a joint venture through a Musharakah
contract for manufacturing sports goods in Sialkot. Zaid decided to be a
sleeping partner in this venture while Amar and Baker remains the active
partners. This venture starts with a capital investment of 100,000 PKR
with 30,000 from Zaid; 40,000 from Amar and 30,000 from Baker. The
profit is decided to be shared on agreed ratio with a proportion of 45% for
Zaid, 35% for Amar and 20% Baker. The loss will be shared according to
the capital contributed. Rectify whether this transaction is Shari’ah
Compliant or Not, if No discuss the reason.

6. Details of a the Musharakah projects are given below in the table;

You are required to answer the following question(s);

i. Rectify whether this transaction is Shari’ah Compliant or Not, if No
discuss the reason.
ii. Calculate what amount of profit received by bank and by partner in
each of the case mentioned above.

i. Project 1: Its compliant.

Project 2: Its compliant.
Project 3: Its compliant.
Project 4: Its compliant.
ii. Project 1: The profit received by Bank is 2100000 and partner is 1900000.
Project 2: The profit received by Bank is 7600000 and partner is 3040000.
Project 3: The profit received by Bank is 1485000 and partner is 2051500.
Project 4: The profit received by Bank is 2664000 and partner is 1533600.