The Superior College, Lahore

Faculty of Management Sciences

Course Outline
Course Course Title Islamic Finance
Information Course ID Course Type
Credit hours 3 Hours per week (C-L) 3
Programs BBA, MBA, M.Com Preferred Semester
Date 22 May 2019 Version
Offered Programs BBA, MBA, M.Com Semester Session Fall 2019
Course Instructor(s) Muhammad Umar Zaka TA / Junior Lecturer
Information
Course The course is designed to develop an understanding of Islamic Finance among the students of Business Study
Description programs. The course is structured to enhance the vision about the Aspects of Islamic Finance regarding Business.
Beginning with the fundamental guidelines of Islam in the arena of dealings and business transactions, this course
covers the application of canonical Islamic laws to modern financial transactions. Although the focus is on
commercial banking, other aspects of financial marketplace are also addressed.
Course At the end of this course students will be able to;
Learning No. Outcome BT Relation
Outcomes Level with PLO
(CLO) CLO1. Compare Islamic and conventional financial systems. C4 PLO1
CLO2. Analyze essentials and model agreements for Islamic modes of financing. C4 PLO8
Lecture type Lectures
Prerequisites Financial management
Follow up
Courses
Course
Software
or Tool
Textbook Title Edition Authors Publisher Year ISBN
An Introduction to Islamic Finance Muhammad 2017
Taqi Usmani
References Meezan Bank Guidelines to Islamic Muhammad
Banking Imran Usmani
Assessment Assessment Summary Weight Due after Used to attain CLO
Criteria Assignment 10% Lec 7 CLO1
(100%) Mid Term 20% Lec8 CLO1,2
Project 30% Lec16 CLO1,2
Final Term 40% Lec16 CLO1,2
Total 100%
Methods of Assignments, Mid/Final exam, Project
Evaluation
Notes
Course Contents
Week Topic Lecture Lecture Contents Relation
No. No. with CLO
W1. Introduction & L1. -why Islamic finance CLO1
Background  Introduction to Islamic Economic Systems
-Significance of Islamic Economic System
L2. - Theory of Islamic Finance and Practice CLO1
Handout-1
Task 1: Islamic economics system
W2. Principles of Islamic L3. - Principles of Islamic Financing CLO1
Financing -Belief in Divine Guidance
-Islamic Banking System in Pakistan
L4. - Principles of Islamic Financing CLO1

Page 1 of 3
 - Asset Backed Financing
Handout 1 and 2
Task 2: Banking crisis in America in 2008(assets back financing)
W3. Capitalism and L5.  Capitalism and its history CLO1
Islam; difference  Characteristics of Capitalism
L6.  Difference in Capitalism and Islamic Society CLO1
 Capitalism vs Entrepreneurship
Task 3: identify reasons why views and opinions against Capitalism are strengthening in the world.
W4. Shirkah L7.  Shirkah and its significance CLO2
L8.  Types of Shirkah, their significance and practical usage CLO2
W5. Musharakah L9.  Concept of Musharkah CLO2
 Profit Sharing
 Loss Sharing
 Nature of Capital
L10.  Management CLO2
 Termination
 Termination without closing business
 Handouts
Task 4: Student required to assume he has 50 lac Rupees and he is required to make an investment through Musharkah
4.1 Case study
W6. Mudarabah L11.  Concept of Mudarabah CLO2
 Profit Sharing
 Loss Sharing
 Nature of Capital
L12.  Management CLO2
 Termination
 Termination without closing business
W7. Practical Usage of L13.  Project Financing CLO2
Musharkah and  Securitization of Musharkah
Mudarabah L14.  Import Financing CLO2
 Export Financing
 Working Capital Financing
Task 5: How finance of Rs.30 lacs can be arranged for the business by using Mudarabah.
Mudarabah case study-5.1
Mudarabah case study-5.2
Mudarabah case study-5.3
Mudarabah case study-5.4

W8. Mid Term Exam L15.  Mid Term Examination CLO1,CLO2

Week L16. Mid Term Examination CLO1,CLO2
W9. Diminishing L17.  Car Financing with diminishing Musharkah CLO2
Musharkah  House Financing with diminishing Musharkah
L18.  Services Business Financing with diminishing Musharkah CLO2
 Business Financing with diminishing Musharkah
W10. Murabaha L19.  Murabaha Introduction CLO2
 Murabaha Principles
L20.  Islamic Sales and its principles CLO2
Task 6: Visit any Islamic bank and find out how practically car financing is done.
6.1 case study on diminishing Musharka
W11. Murabaha Usage L21.  Bai Muajjal and its principles CLO2
L22.  Usage of Murabaha as a mode of financing CLO2
W12. Ijarah L23.  Ijarah and its types CLO2
 Concept of Corpus and Usufruct
 Principles of Ijarah
L24.  Practical usage of Ijarah as a mode of Financing CLO2
  Handouts
Task 7: How Murabaha and Ijarah can be used for buying a product on installments? (Write in detail)
W13. Salam L25.  Salam concept CLO2
 Conditions of Salam
L26.  Salam as a mode of financing and its usage CLO2
W14. Istasna L27.  Istasna concept CLO2
 Conditions of Istasna
L28.  Istasna as a mode of financing and its usage CLO2
W15. Takaful, Other L29.  Takaful concept CLO2
Important Issues  Types of Takaful
L30.  Usage of Takaful CLO2
 Difference between Takaful and Conventional Insurance
 Difference between Salam and Istasna
 Difference between Istasna and Ijarah
W16. Project L31.  Project Demonstration CLO1,2
Demonstration L32.  Project Demonstration CLO1,2