Q1

Taking into consideration the tremendous progress of the Islamic Capital Market, ABC

Berhad is considering the option to be listed on Bursa Malaysia. Consider the following

information on ABC Berhad:

Activity

Core: Mining

Other:Distribute liquor

GROUP financial information

Turnover: RM20 million

Profit before tax: RM12 million

Total asset : RM80 million

cash placed in conventional accounts: RM20 million

Interest - bearing debt: RM22 million

Shariah non compliant information

Turnober liquor : RM0.5 million

Profit before tax liquor : RM0.4 million

A) Based on the two-tier quantitative assessment applied by the Shariah Advisory

Council of Securities Commission Malaysia, evaluate whether securities issued by

ABC Berhad will be classified as Shariah Compliant Securities or Shariah non-Compliant Securities. Justify your evaluation with an appropriate reason. (15 marks)

B) Elaborate the three types of market where ABC Berhad can be listed on bursa malaysia