Proposal Aicl | Islamic Banking And Finance | Financial Crisis Of 2007–2008

“RELEVANCE AND POTENTIAL OF ISLAMIC FINANCE IN KERALA WITH REFERENCE TO AICL, COCHIN”

AMEEN HASSAN.K 4th Semester M.com DCMS

. the consequences of taking higher risk have led to unprecedented banking collapse around the world and have also emphasized the core philosophical method between Islamic and conventional western finance. the global financial industry declines into ever-deeper crisis.INTRODUCTION As the economy super powers on the brink of recession. now credit crunch creates turmoil throughout the global economy. the collapse in the sub-prime market begins to have an impact on banking around the world.

6 billion Muslims. . and in recent years there has been a new dynamism as this fledging financial industry has proved increasingly attractive not only to the world 1. Islamic financial institutions have evolved from mere concepts into full-fledged realities.During the past decades. but also to many others who are beginning to understand the unique aspects of Islamic finance.

the whole is looking for an alternative which is free from these types of tragedies. The econonomist who studies about Islamic finance during this interim increased a lot. And the government of India now is looking for the regulatory changes in the Indian banking act. Occasionally in India also. And everyone looked at the Islamic financial institutions all over the world they had less affected the sub-prime crisis. 1949. there conducted many discussions and seminars for the alternatives. .After the global financial crisis.

and accumulation of interest leads to increasing the divide amongst the rich and poor. . interest leads to inflation. which is against collection or payment of interests. According to Islam.Islamic Banking is System of Banking consistent with Shariah laws.

The Sachar Committee report highlighted that approximately 50% Muslims are financially excluded. It is here where the actual market potential of Islamic Banking lies. Majority of Indian Muslims are so poor that they are not targeted by the Commercial Banks and whose savings lie idle at home. which were drawn back and are still in vogue. Muslims in India generally lack creditworthiness primarily because they form part of “Ghettos” or negative areas. The long held issue of financial inclusion can be taken care of by introducing Islamic Banking. .

This presence scenario made many researches and studies about Islamic financing and banking . . COCHIN” .This study implies the various operation and functioning of the Islamic financial institutions.Alternative Investments Credit Limited (AICL) is established in 2001 at cochin and registered as an NBFC under reserve bank of India and companies Act.this encourages for this study titled “RELEVANCE AND POTENTIAL OF ISLAMIC FINANCE IN KERALA WITH REFERENCE TO AICL. 1956.

Cochin.STATEMENT OF THE PROBLEM This Study is to find out the relevance and importance of Islamic finance with special reference to AICL. Previous studies on various aspects of Islamic finance shows that it has good future potential in India. This study looks into the causes for that and tries to find out answers for the following questions What is Islamic financing? What are the future potentials of Islamic finance in Kerala? How it can contribute to the well-being of the state? Whether AICL contributes for the same? .

To compare the annual budget and actual turnover which result to identify the financial position of the organization. theoretical background. principles and unique aspects of Islamic Finance. To evaluate performance and profitability trend of the company To ascertain financial performance in terms of liquidity.OBJECTIVES OF THE STUDY The various purposes for conducting the study are as follows: To understand evolution. . profitability and solvency.

To know the current growth of Islamic financing in the world To verify the growth of Islamic finance in the country To find out the future potential of Islamic financing in Kerala To find out the acceptability of people towards Islamic financing To measure depth and dimensions of issues involved in the acceptability of Islamic financing To check the difference between conventional western finance and Islamic financing .

SCOPE AND SIGNIFICANCE OF THE STUDY The scope of the study is limited to AICL. The study is helpful for all kind of people who are dealing with financial sector . And also it is limited to the customers and beneficiaries of AICL. Cochin which is a non-banking financial institution registered under RBI.

RESEARCH METHODOLOGY descriptive analytical .

SOURCES OF DATA Secondary Data Annual report of the company Profit and loss a/c. Ltd. Balance sheet of the company Cash flow and fund flow of statement Magazines. journals Books Website of AICL Pvt. .

Primary Data Questionnaire interview schedule .

Comparative financial statement Percentage Average Graphs .TOOLS USED FOR ANALYSIS Ratio Analysis Trend Analysis Correlation Analysis of turnover.

the firm cannot be compared to the conventional financial institutions in India. The firm due to restrictions of Indian Banking Act. .LIMITATIONS OF THE STUDY Non availability of the data of similar Islamic financial institutions. The conclusions given at the end are not the end result of the study but are the study but are the outcomes of findings. Detailed study about the NBFCs could not be carried out due to the shortage of time.

CHAPTERIZATION CHAPTER 1 INTRODUCTION CHAPTER 2 LITERATURE REVIEW CHAPTER 3 INDUSTRY PROFILE AND COMPANY PROFILE .

FINDINGS AND SUGESTIONS .CHAPTER 4 ANALYSIS AND INTERPRETATION CHAPTER 5 SUMMARY.

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