ISLAMIC FINANCE ISLAMIC FINANCE

Running head: ISLAMIC FINANCE
Islamic Finance
Name of the Student:
Name of the University:
Author’s Note:

ISLAMIC FINANCE1
Table of Contents
Financial Analysis...........................................................................................................................2
Share of Profit/Loss and Responsibilities........................................................................................4
Risk Management............................................................................................................................5
SWOT Analysis...............................................................................................................................5
References........................................................................................................................................7

ISLAMIC FINANCE2
Financial Analysis
The financial analysis has been specifically performed for the business plan proposed
whereby relevant cash flows that would be flowing to the company has been specifically taken
into consideration for the purpose of analysis. The forecasting of the financials has been well
done by drawing up the monthly cash flow income statement for the business project. The initial
starting capital for the business would be around AED500000 and the same will be well provided
by the Rab al Maal. While the Mudrib or Ammel, the other partner of the business would be
providing his key expertise and base of knowledge in the management and day to day operations
of the company. The sales of the company would be around AED35000 in the first month and
the same is expected to well increase by around 5% on a monthly basis as the company would be
increasing their base of business operations and marketing activities thereby reaching consumers
and retailers with the offered range of products (Al-Bashir 2019).
The cost of goods sold for the company would be around 65% of the sales value that has
been reported by the company on a monthly basis. While on the other hand, the other key
operational expenses that the company would be incurring in the business line on a monthly
basis or has been projected will be incurred in the form of fixed cost for the company. Expenses
like Salaries &Wages, Rent & Rates, General Expenses, Sales and Marketing Expenses,
Insurance Fees and Provision for Normal business loss. The provision for normal business loss
has been kept in respect to negligence from the Mudarab which can happen in the form of
improper care of raw materials and storage of inventory in the premises. The loss amount has
been projected to be around 1% of the total sales amount that the company would be making and
the same would be deducted from the profitability of the Mudarab on a monthly basis. Since, the