Tuesday 30 August 2016

What is AAOIFI

AAOIFI is abbreviated of

 Accounting and Auditing Organization for Islamic Financial Institutions
  is a Bahrain based not-for-profit organization that was established to maintain and promote Shariah standards for Islamic financial Institutions, participants and the overall industry. The Commission also organizes a number of professional development programs (especially the Islamic legal accountant program and the observer program and forensic auditor) in their effort to upgrade the human resources working in the industry and the development of governance structure controls the institutions,

Sunday 21 August 2016

Ijarah (Leasing)


Ijarah is a term of Islamic fiqh. Lexically, it means "to give something on rent". In the Islamic jurisprudence, the term "Ijarah" is used for two different situations.

1) In the first place, it means "to employ the services of a person on wages given to him as a consideration for his hired services." The employer is called "Mustajir" while the employee is called "Ajir", while the wages paid to the Ajir are called "Ujrah".

2)  The second type of Ijarah relates to the usufructs of assets and not to the services of human beings."Ijarah" in this sense means "to transfer the usufruct of a particular property to another person in exchange for a rent claimed from.him" In this case, the term ijarah is analogous to.the english term leasing. Here, the lessor is called mujir and the lessee is called Mustajir and the rent payable to lessor is called Ujrah: However, there are many difference between leasing contract of conventional Bank and Ijarah, which will be discused in detail.

Basic Rules:

                       The basic rules of ijarah are as follows:

1)  Transferring of usufruct not ownership
          In leasing the owner transfer its usufruct to another person for an agreed period, at an agreed consideration.

2) Subject matter of lease
          The subject matter of lease should be valuable identified and quatified.

3) All consumable things cannot be leased out.
          The corpus of leased property remains in the ownership of the seller and only its usufruct is transferred to the lessee. Thus, anything which cannot be used without consuming, cannot be leased out. For example money, wheat etc.

4) All liabilities of ownership is borne by lessor

        As the corpus of the leased property remains in the ownership of the lessor so all the liabilities emerging from the ownership shall be borne by the lessor.

5) Period of lease

       The period of lease must be determined in clear term.
       It is necessory for a valid lease that the leased asset is fully identified by the parties.



To be countined.........

Wednesday 10 August 2016

Happy Independence Day

Assalam-O-Alaikum!

Happy Independence Day





From: Nazim Ali

Tuesday 9 August 2016

General Knowledge MCQs with Answers

1. The river Danube rises in which country?
Germany.
2. Which US state has the sugar maple as its state tree and is the leading US producer of maple sugar?
Vermont.
3. Which country is nicknamed ‘The Cockpit of Europe’ because of the number of battles throughout history fought on its soil?
Belgium.
4. What is the capital of Libya?
Tripoli.
5. Apart from French, German and Romansch, what is the fourth official language of the Switzerland?
Italian.
6. Which country is the world’s largest producer of coffee?
Brazil.
7. In which city was the world’s first underground train was service opened in 1863?
London.
8. How many pairs of ribs are there in the human body?
12
9. Which country is separated form Ethiopia by the Red Sea?
Yemen.
10. What is the main port of Italy?
Genoa.
11. Mount Logan is the highest peak in which country?
Canada.
12. In which state is Harvard University?
New Jersey.
13. Which is larger: Norway or Finland?
Finland.
14. Which city was the first capital of the Kingdom of Italy until 1865?
Turin.
15. What is measured by an ammeter?
Electric current.
16. What is a rhinoceros horn made of?
Hair.
17. Which three countries, apart from the former Yugoslavia, share borders with Greece?
Albania, Bulgaria, Turkey.
18. The Palk Strait separates which two countries?
India and Sri Lanka.
19. Ga is the symbol for which element?
Gallium.
20. In the Greek alphabet, what is the name for the letter O?
Omicron.
21. What, in the 16th and 17th century, was a pavana?
A dance.
22. A nephron is the functional unit of which organ in the human body?
Kidney.
23. In which country is the ancient city of Tarsus?
Turkey.

24. The Khyber Pass links which two countries?
Afghanistan and Pakistan.
25. Name the six US states that comprise New England.
Rhode Island, Connecticut, Maine, New Hampshire, Vermont and Massachusetts.
26. Which musical instrument is played by both exhaling and inhaling?
Harmonica (or mouth organ).
27. The northern part of which country is called Oesling?
Luxembourg.
28. Napier is a city in which country?
New Zealand.
29. What is the Hook of Holland?
A port in the southeast Netherlands,
30. The river Douro forms part of the border between which two countries?
Spain and Portugal.
31. In which country is the Great Slave Lake?
Canada.
32. Which six countries border the Black Sea?
Bulgaria, Georgia, Romania, Russia, Turkey and Ukraine.
33. Kathmandu is the capital of which country?
Nepal.
34. What name is given to a mixture of bicarbonate of soda and tartaric acid used in cooking?
Baking powder.
35. AOL are an internet service provider. What does AOL stand for?
America Online.
36. Who discovered penicillin?
Alexander Fleming.
37. Which English queen had an extra finger on her hand?
Anne Boleyn.
38. Which precious metal has the symbol Pt?
Platinum.
39. The Gobi desert extends over which two countries?
China and Mongolia.
40. Apart from America, which is the only country in the world to which alligators are native?
China.
41. Which are the highest types of clouds: stratocumulus or cirrus?
Cirrus.
42. Which ancient measure of length was based on the length of the arm from fingertip to elbow?
Cubit.

43. After World War I, Transylvania became part of which country?
Romania.
44. Which sea in Northern Europe is bounded by several countries including Sweden, Finland, Poland and Germany?
The Baltic.
45. A road tunnel runs from Pelerins in France to Entreves in Italy under which mountain?
Mont Blanc.
46. The Barents Sea is part of which ocean?
Arctic.
47. Which two countries are either side of the mouth of the River Plate?
Argentina and Uruguay.
48. Quicklime is an alkaline powder obtained by strongly heating which other material?
Chalk.
49. What is the longest river solely in England?
Thames.)
50. The Great Barrier Reef is off coast of which Australian state?
Queensland

Internet (An introduction)

Internet:

                     The Internet was the result of some visionary thinking by people in early 1960s who saw great potentiol value in allowing computers to connect and share information on research and development in scientific and military fields. J.C.R Licklider of MIT (Massachusetts Institute of Technology, USA), first proposed a global network of computers in 1962, and moved over to the Defense Advanced Research Projects Agency (DARPA) in late 1962 to head the work to develop it. Leonard Kleinrock developed the theory of packet switching, which was to form the basis of internet connections. Lawrence Roberts connected a Massachusetts computer nwith a California computer in 1965 over dial-up telephone lines. In 1966 Roberts developed his plan for ARPANET (Advanced Research Projects Agency Network). These Dreamers and many more are the real founders of Internet.
E-mail:

                 E-mail was developed for ARPANET in 1972. The @ symbol was chosen from the variable symbols to link the username and address. The Internet matured in the mid of 1970's as a result of the TCP/IP architecture which was developed throughout the 1970's.
 in 1989 another significant event took place in making the internet friendly and easier to use. Tim Berners-Lee and others proposed a new protocol for information distribution. This protocol which became the World Wide Web in 1991, was based on hypertext- a system of embedding links in text to link to other portions of text.
As the Internet has become ubiquitous, faster and progressively accessible to non-technical user communities, social networking and collaborative services have grown rapidly; enabling people to communicate and share interests in many more ways. Sites like Facebook, Twitter, Linked-In, YouTube, Flicker and many more allow people of all ages to rapidly share their interests with others everywhere.

Monday 8 August 2016

Islamic Banking (Modern Way of Banking).


Islamic Banking and Finance- Global growth trends.
Islamic banking and finance growth has generated considerable interest in the financial world in recent years. The concept of Islamic banking has received encouraging response from different corners of the globe as one discovers its ideological dimensions and practical significance.
Given its ability to offer innovative financial solutions for basic financial needs in under-served markets espacially in the Muslim world and to meet complex financial requirements of the modern times, it is seen as a socially responsible and ethical banking model with considerable growth potential. In the Muslim world and increasingly in the West,  significant segments statements of the institutional and retail markets are choosing Islamic finance for their financing and investment needs. Islamic financial system also draws its strength from it being asset backed nature and directly linkage to the real economic transactions and avoidance of any element of interest and speculative activity.

Understanding the difference:

When we look at the difference between Islamic Financial Institutes and the interest based conventional institutions, we find out that the differences are on three levels:
1. Conceptual and Socio religious level.
2. Business model and governing framework.
3. Product Level Implementation.

Without a clear understanding of these differences, some people, even experts tend to make a common mistake of equating Islamic banks with other conventional banks with mere change of name.

Key difference.

1. In a conventional Bank the relationship between the bank and customer is that of creditor and debtor and any benefit available to either party falls under the ambit of interest since it is a gain on Debt/Loan. In Islamic Banking, the relationship between bank and customer differ as per the modes of finance and the nature of the facility.
2. In Sale based transaction modes, Islamic Banks and the customer assume the role of seller and buyer respectively and any benefit available to either party is profit on Sale Transaction.
3. In rental based modes, the relationship between Islamic bank and customer is that Lessor and Lessee respectively and any benefit available to bank is in the form of Rent.
4. In Participation based modes,  the relationship between Islamic bank and customer is that of partnership and the gain is taken by either party is profit on Musharakah.
In Service based mode, the relationship between Islamic bank and customer is of Mustajir (Service Provider) and Ajeer( To whom service is given) respectively and Islamic bank gets remuneration in the form of fees(Ujrat).

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