Illustration.1. Mr. Abdullah manufacturer of cement requested to Meezan bank Islamabad on January 1st2010, to issue cash for purchase of raw material amounting to Rs; 2 million for supply of 8,000 bags of manufactured cement, at factory premises Hattar, on March 31st 2010. Meezan bank agreed to the deal and received Urboun of Rs; 100,000 to be forfeited if supply delayed by 15 days or manufacturer failed in delivery. Istisna'a sales contract executed and signed by both parties on January 1st2010. On 1st February, 2010, Meezan Bank entered into Parallel Istisna'a contract with Mr. Ghazi a local distributor of cement to sell 8,000 bags for Rs; 260 per bag to be delivered in Islamabad, with delivery on April 30,2010 , for 50% spot payment and balance on delivery. Required:- 1. Are both deals valid? 2. If both contracts executed smoothly at due date and transportation cost incurred Rs; 40,000 what is profit of Meezan bank and \% return per annum on investment. 139 Chapter 4- Istisna'a Financing 3. If Mr. Abdullah provided the cement on 20th April, 2010 and Parallel Istisna'a Contract executed in time with transportation cost incurred Rs; 40,000 what is profit of Meezan bank and \% return per annum on investment. 4. If Mr Abdullah failed in provision of Cement by April 30th and Meezan bank has to purchase the cement from local market@Rs 258 per bag to deliver Mr. Ghazi. What is profit of Meezan bank and % return per annum on investment? Illustration.1. Mr. Abdullah manufacturer of cement requested to Meezan bank Islamabad on January 1st2010, to issue cash for purchase of raw material amounting to Rs; 2 million for supply of 8,000 bags of manufactured cement, at factory premises Hattar, on March 31st 2010. Meezan bank agreed to the deal and received Urboun of Rs; 100,000 to be forfeited if supply delayed by 15 days or manufacturer failed in delivery. Istisna'a sales contract executed and signed by both parties on January 1st2010. On 1st February, 2010, Meezan Bank entered into Parallel Istisna'a contract with Mr. Ghazi a local distributor of cement to sell 8,000 bags for Rs; 260 per bag to be delivered in Islamabad, with delivery on April 30,2010 , for 50% spot payment and balance on delivery. Required:- 1. Are both deals valid? 2. If both contracts executed smoothly at due date and transportation cost incurred Rs; 40,000 what is profit of Meezan bank and \% return per annum on investment. 139 Chapter 4- Istisna'a Financing 3. If Mr. Abdullah provided the cement on 20th April, 2010 and Parallel Istisna'a Contract executed in time with transportation cost incurred Rs; 40,000 what is profit of Meezan bank and \% return per annum on investment. 4. If Mr Abdullah failed in provision of Cement by April 30th and Meezan bank has to purchase the cement from local market@Rs 258 per bag to deliver Mr. Ghazi. What is profit of Meezan bank and % return per annum on investment