SHARIAH COMPLIANT WORKING CAPITAL FINANCE AT SHAFI TEXCEL

Abstract

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.