Details

Case

Educator Copy

Shariah Compliant Working Capital Finance at Shafi Texcel Limited

Zeeshan Ahmed, Research Associate Mr. Muhammad Imran Chaudhry


INDUSTRY : Textile, Chemicals

AREA : Finance

ORGANIZATION : Shafi Texcel Limited

LENGTH : 5

LUMS No : 02-625-2011-1

PUBLICATION YEAR : 2011

DESCRIPTION

KEYWORDS:

Shariah Compliance,Working Capital Finance,Shafi Texcel Limited,Director Finance,Islamic Finance,Working Capital Management,Islamic Banking Product Development


DESCRIPTION:

The case describes the quandary that Umair Haleem, Director of Finance at Shafi Texcel, finds himself in after learning about the sudden withdrawal of the Rs. 100 million credit line. The steady increase in working capital requirements along with the dissatisfaction of the top management with Islamic Finance, and the poor outlook of the textile industry challenge Umair¿s commitment to Islamic Finance. The case will serve as a valuable aid in demonstrating the application of Islamic contracts in working capital management. The current lack of teaching cases on Islamic Finance will make this case an excellent teaching resource for different Islamic Banking Courses.


LEARNING OBJECTIVES:

1) Preliminary exercise in working capital management. 2) Intermediate exercise in Islamic Banking product development.


SUBJECTS COVERED:

Finance