Project proposals for Mudharabah Financing

March 30, 2016

Manager

Islamic Microfinance Comapny

Dear Manager,

Assalamualikum

I am very pleased to hear that you are interested to provide financing facilities on the basis of Mudharabah principle. It will be pleasure for me to have you as capital provider in my business.

I have been running food business for the last three years. Now I want to add a new product with existing product line. I have planned everything but I have no extra capital to introduce this new product. Here I have written a business proposal which will help you to understand my business type and plan. Hope you will get confidence by reading my business proposal to provide me the capital on the basis of Mudharabah Priciple.

I thing you will get all required information related to the new product from this proposal. If you need any other information please let me know.

Sincerely,

Muhammad Al-Karbalaei

Pentaling Zaya, Malaysia.

TABLE OF CONTENTS

Contents Page Number

Proposal letter 2

1. Types of Business 4

2. Capital Financing 4-5

3. Operational cost 5

4. Profit Distribution and Repayment Schedule 5-8

5. Treatment of Loss 8

6. Ownership of the Equipment 9

7. Termination of the Mudharabah Contract 10

Table-1 Total Financing 4-5

Table-2 Operational cost 5

Table-3 Profit Calculation 6

Table-4 Profit distribution & repayment 7-8

Chart-1 Changes of the ownership 9

1. Type of Business

Basically we prepare Pizza and sell it in the market. We follow our own secret formula to prepare Pizza. And we do Halal Business. The Ingredients which we use to prepare Pizza are Halal. Now we want to add a new product with our existing product line. Because we have good reputation in the market and some of our customers are ...

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...the all equipment. We will make sure that your capital will not be used for our existing business (Pizza). And we will also maintain separate accounting.

Chart-1

We have made this chart to show you the proportional changing of the ownership of the equipment in the business. Every month your share of capital is decreasing and it has changed from the 100% to 0% end of the 24 months. After the 24 months our Mudharabah contract will automatically come to end.

7. Termination of the Mudharabah Contract

We want to make this Mudharabah contract for the two years. After the two years our contract will automatically terminate. Because every month we will buy back your share of capital and we will pay you Rm, 2,500 plus your portion of profit. We have shown an estimated repayment schedule in Table-4 and hope you will get your required information from this Table.