Proposal Aicl

8/2/2019 Proposal Aicl

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RELEVANCE AND POTENTIAL

OF ISLAMIC FINANCE IN KERALA

WITH REFERENCE TO AICL,

COCHIN

AMEEN HASSAN.K

4th Semester M.com

DCMS


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INTRODUCTION

As the economy super powers on the brink ofrecession, the global financial industry declines intoever-deeper crisis, the collapse in the sub-primemarket begins to have an impact on banking

around the world, now credit crunch creates turmoilthroughout the global economy. the consequencesof taking higher risk have led to unprecedentedbanking collapse around the world and have alsoemphasized the core philosophical method

between Islamic and conventional western finance.


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During the past decades, Islamic financial

institutions have evolved from mere

concepts into full-fledged realities. and in

recent years there has been a newdynamism as this fledging financial industry

has proved increasingly attractive not only

to the world 1.6 billion Muslims, but also to

many others who are beginning tounderstand the unique aspects of Islamic

finance.


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After the global financial crisis, the whole is looking foran alternative which is free from these types oftragedies. And everyone looked at the Islamicfinancial institutions all over the world they had less

affected the sub-prime crisis. Occasionally in Indiaalso, there conducted many discussions andseminars for the alternatives. The econonomist whostudies about Islamic finance during this interimincreased a lot. And the government of India now is

looking for the regulatory changes in the Indianbanking act, 1949.


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Islamic Banking is System of Banking

consistent with Shariah laws, which is

against collection or payment of

interests. According to Islam, interest

leads to inflation, and accumulation of

interest leads to increasing the divide

amongst the rich and poor.


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The Sachar Committee report highlighted thatapproximately 50% Muslims are financiallyexcluded. The long held issue of financial inclusioncan be taken care of by introducing Islamic

Banking. Majority of Indian Muslims are so poorthat they are not targeted by the Commercial Banksand whose savings lie idle at home. Muslims inIndia generally lack creditworthiness primarilybecause they form part of Ghettos or negative

areas, which were drawn back and are still invogue. It is here where the actual market potentialof Islamic Banking lies.


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This presence scenario made many researches andstudies about Islamic financing and banking .thisencourages for this study titled RELEVANCE ANDPOTENTIAL OF ISLAMIC FINANCE IN KERALA

WITH REFERENCE TO AICL, COCHIN.Alternative Investments Credit Limited (AICL) isestablished in 2001 at cochin and registered as anNBFC under reserve bank of India and companiesAct, 1956.This study implies the various operation

and functioning of the Islamic financial institutions.


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STATEMENT OF THE PROBLEM

This Study is to find out the relevance and importanceof Islamic finance with special reference to AICL,Cochin. Previous studies on various aspects ofIslamic finance shows that it has good futurepotential in India. This study looks into the causes

for that and tries to find out answers for thefollowing questions

What is Islamic financing?

What are the future potentials of Islamic finance inKerala?

How it can contribute to the well-being of the state?Whether AICL contributes for the same?


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OBJECTIVES OF THE STUDY

The various purposes for conducting the studyare as follows:

To understand evolution, theoreticalbackground, principles and unique aspects of

Islamic Finance.To evaluate performance and profitability trendof the company

To ascertain financial performance in terms of

liquidity, profitability and solvency.To compare the annual budget and actualturnover which result to identify the financialposition of the organization.


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To know the current growth of Islamic financing inthe world

To verify the growth of Islamic finance in thecountry

To find out the future potential of Islamic financingin Kerala

To find out the acceptability of people towardsIslamic financing

To measure depth and dimensions of issuesinvolved in the acceptability of Islamic financing

To check the difference between conventionalwestern finance and Islamic financing


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SCOPE AND SIGNIFICANCE OF

THE STUDY

The scope of the study is limited to

AICL, Cochin which is a non-banking

financial institution registered under

RBI. And also it is limited to thecustomers and beneficiaries of AICL.

The study is helpful for all kind of

people who are dealing with financialsector


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RESEARCH METHODOLOGY

descriptive

analytical


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SOURCES OF DATA

Secondary Data

Annual report of the company

Profit and loss a/c, Balance sheet of thecompany

Cash flow and fund flow of statement

Magazines, journals

Books

Website of AICL Pvt. Ltd.


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Primary DataQuestionnaire

interview schedule


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TOOLS USED FOR ANALYSIS

Ratio Analysis

Trend Analysis

Correlation

Analysis of turnover.

Comparative financial statement

Percentage

Average

Graphs


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LIMITATIONS OF THE STUDY

Non availability of the data of similarIslamic financial institutions.

The firm due to restrictions of IndianBanking Act, the firm cannot be compared

to the conventional financial institutions inIndia.

Detailed study about the NBFCs could notbe carried out due to the shortage of time.

The conclusions given at the end are notthe end result of the study but are the studybut are the outcomes of findings.


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CHAPTERIZATION

CHAPTER 1

INTRODUCTION

CHAPTER 2LITERATURE REVIEW

CHAPTER 3

INDUSTRY PROFILE AND COMPANY

PROFILE


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CHAPTER 4

ANALYSIS AND INTERPRETATION

CHAPTER 5SUMMARY, FINDINGS AND

SUGESTIONS

Proposal Aicl

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