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.

Q2

A) Characteristics of bond basic