Taqwa credit cooperative society ltd inrernship project

A detail organizational study conducted on Taqwa Credit Cooperative Society Ltd Bhatkal branch it's a first-ever Islamic credit cooperative society opened in Bhatkal to provide financial aid to sociey

1. INTERNSHIP PROJECT REPORT
ON
Taqwa Credit Cooperative Society Ltd
(A STUDY ON BHATKAL BRANCH)
An Organizational Study
Submitted in Partial Fulfillment of Award of the Degree of
Masters of Business Administration (MBA)
Programme: 2018 – 2020
Of
Anjuman Institute of Technology and Management
Submitted to
VISHVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

Submitted by: Syed Ibrahim(2AB18MBA38)


Under the Guidance of
Internal Guide: Professor Cherian Xavier
External Guide: Mohammed Salman Shingeri

2. DECLARATION

I hereby declare that the internship report entitled “An Organizational Study
Of Taqwa Credit Cooperative Society Ltd” has been prepared by me and
submitted to Anjuman Institute of Technology and Management for
Management Studies and Research, is a record of original work done by me
under the supervision of Mr. Mohammed Salman Shingeri Chief operation
officer, Taqwa Credit Cooperative Society Ltd.
I also declare that this internship work is towards the partial fulfillment of
the university regulations for the award of degree Master of Business
Administration by Vishvesvarayatechnological University, Belgaum.
I have undergone an internship project for 4 weeks, I further declare that
this project is based on original study undertaken by me and not been submitted
for the award of any degree/diploma from any other University/Institution.








Date: Syed Ibrahim
2AB18MBA38

3. AKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all the
persons who contributed directly or indirectly for the successfully completion of
the project report. “Service Quality and Excellence hospitality of Taqwa Credit
Cooperative Society Ltd.”
I wish to express my gratitude to the branch manager Mr. Mohammed Salman
Shingeri of Taqwa Credit Cooperative Society Ltd, Bhatkalfor giving me an
opportunity to be a part of esteem organization and enhance my knowledge by
granting permission to do a training project. They provided me with their
assistance and support whenever needed, which has been instrumental in
completion of this project. I am thankful to them, for their support and
encouragement throughout the tenure of the project. In addition, I am thankful
to my faculty guide Professor Cherian Xavier from Anjuman Institute of
Technology And Management, Bhatkal, for being a source of support during
training period and for his constant guidance, support and correcting where I
was wrong. I thank him with full zeal and enthusiasm.
I am grateful to all the staff members of Taqwa Credit Cooperative Society Ltd
for their kind cooperation and help during the course of my project.




Syed Ibrahim
MBA

4. Table of Content
Chapter
No.
PERTICULARS Page No.
Executive summary
1 Introduction about the Organization & Industry
2 Organization Profile
i. Background
ii. Nature of Business
iii. Vision, mission and quality policy
iv. Workflow model
v. Product/Service Profile
vi. Ownership Pattern
vii. Future growth and prospects

3 McKinsey’s 7S framework and Porters Five Force
Model with special reference to organization under
study

4 SWOT Analysis
5 Analysis of Financial Statement
6 Learning Experience
Bibliography
i. Annexure relevant to the organization study
such as figures, graphs, photographs,
Financial Statements etc.

5. List of Table and Graphs
Chapter No. PERTICULARS Page No.
2 Workflow Model figure 2.1
3 Mckinsey’s 7S framework figure 3.1
3 Porters 5 Force Model figure 3.2
4 SWOT Analysis figure 4.1
5 Profit and Loss Account Taqwa credit coop society
5 Balance sheet of Taqwa credit coop society Ltd
5 Table 5.1 Current Ratio
5 Table 5.2 Fixed Asset Ratio
5 Table 5.3 Quick Ratio
5 Table 5.4 Return on total asset ratio

6. Executive Summary
This is an attempt to know how the theories can be applied to practical situation. As a student
of MBA, it is a part of study for everyone to undergo internship project at some good
Organization or company, so for this purpose. I got the opportunity of training at Taqwa
Credit Cooperative Society Ltd.

This report highlights the operations and functions of Taqwa Credit Cooperative
Society Ltd. It act as financial agent to its customers in return it gets reward for its services in
the shape of profit. It plays an important role in development of society. Taqwa Credit Coop
Society Ltd It is one of the leading banks in Bhatkal.

The main purpose of the internship is to gather relevant information to compile internship
report on Taqwa Credit Cooperative Society Ltd Main Branch Bhatkal. Another purpose of
this Internship program is to enable the students to use the management techniques acquired
during their courses, and find out the possible solution of management problems faced by the
organization
.
In the first chapter Introduction about the Organization & Industry were discussed and in the
second chapter the detail organizational profile was discussed regarding the background,
nature of business, vision, mission and quality policy it also emphasized on workflow model,
product and service profile, ownership pattern and future growth and prospects. And the
remaining chapters focused and emphasized on analysis of the organization using Mckinsey
7S framework, Porter Five Force Model, SWOT analysis and it analyzed company’s financial
statements

The report is based on my four-week internship program in Taqwa Credit Cooperative
Society Ltd. The methodology reported for collection of data is primary as well as secondary
data. The biggest source of information is my personal experience, observation while
working with staff and having discussion with them. The annual report 2017-18 also helped
me in this regard.
This report further guide through the department and working of the Islamic banking. The
activities taking place in the Taqwa banking. The various products and services of banking

7. are discussed in detail in the report. This report is very good description of what Taqwa
Credit Cooperative Society and its significance.
CHAPTER-1
Introduction about the Organization & Industry

1. Introduction of Taqwa Credit Cooperative Society Ltd
Taqwa Multi State CCS Ltd was established in 2015, registered under Credit Cooperative
Society Act 1959/60 of Karnataka, with a vision to be the First Islamic Banking Model in
India. It is now recognized nationally after being awarded NOC from RCS Karnataka for
Maharashtra, Goa, Telangana, Andhra Pradesh, and Tamil Nadu & Kerala. Taqwa provides
"Riba Free" financial services, by offering reasonable returns on customer deposits and
investments through various financing schemes. We provide high quality products to our
customers (irrespective of their caste and creed) and empower them to build assets of lasting
value. Taqwa also offers any community / corporate, to opt this financial system by way of
Branch or Franchisee.
Taqwa Credit Cooperative Society Ltd, is also known as ‘Taqwa banking’ has already
emerged as an effective tool for Islamic Banking and Finance with selected investment
portfolios, are operating for their valued customers of Bhatkal and Bangalore, Karnataka state
India.Taqwa Banking is based fully on ethical banking values, which has the greatest demand
in India. This is the first or pioneer commercial banking model introduced in India with the
aim to strive to earn and maintain their customers trust by constantly adhering to sharia
standards. Everything, that is endeavor in Taqwa Banking, are in favor of the customers
benefits and create an economic value which will appreciate value to the earning per share
(EPS) of Taqwa, Ultimately.
Taqwa’s financial system is highly secured in which the risk on customers’ funds is
negligible. Carefully selected finance, investments and diversified portfolios mixed to reduce
risks. Further, strict criteria is applied for evaluation of borrowers’ creditworthiness to avoid
debt trap, because, all Taqwa finance and investment schemes are covered by the risk
management. Taqwa has developed a core banking solution to support Islamic banking
model. It is developed using leading edge technology from Microsoft and has been stress

8. tested by IBM for scalability. It is user-friendly and supports a wide variety of delivery
channels such as ATM, Mobile Banking, Online Banking and Digital Banking.
Taqwa’s financial system intends to offer their innovative model of Interest Free
Banking to all sections of society across India and abroad. The objective of their effort is to
collaborate with any community or corporate client to empower them to redistribute wealth,
which is one of the most significant issues of the present time. Any community or corporate
company has option to opt our complete Islamic Banking Model, either in the form of a
branch or a franchisee, upon signing a service level agreement with Taqwa Head office in
Bhatkal (N.K.).
The Objective of Taqwa is to grow fast all over India to serve for all the communities
irrespective of cast and creed, are invited to establish their ‘offices’ or ‘branches’ or
franchisees (as applicable) to their home towns or cities or states to operate under the
umbrella ‘Taqwa’ who will provide with full guidance both; professional and legal in
establishing the Islamic Banking Models, under which, the funds raised by a community will
preliminary be invested or managed by same board of the community as per the terms and
conditions of Taqwa.
All contracts, operations and transactions are carried out in accordance with Islamic sharia
principles. Taqwa banking is a leading regional Islamic financial services group in Karnataka,
India.Taqwa Banking System always been remain vigilant to any unexpected changes in the
market environment. It is believed through there prudent approach to business, thatit has well
managed the entire customers funds systematically, Based on sharia compliant and achieved
result with full satisfaction.
Taqwa banking, head office has complete system and a practical model of Islamic
banking which was developed under supervision of the top sharia scholars of India. Any
community or corporate company who desires to opt Taqwa banking model should form an
‘Advisory Board’ is to supervise over the entire operations of the forthcoming branch or
franchise prior to signing a “service legal agreement” Taqwa banking so that the public funds
as raised under the model is not miss-used. Taqwa issues its “Annual Report” before the end
of December every year.
The Reserve Bank of India (RBI) has decided not to pursue a proposal to introduce
Islamic banking in India. Decision in this regard was taken after considering wider and equal

9. opportunities available to all citizens to access banking and financial services. The proposal
to introduce Islamic Financial Services was first made in 2008 by a committee on financial
sector reforms chaired by former RBI Governor Raghuram Rajan.
In considering RBI’s opinion, found the complexities of Islamic finance and various
regulatory and supervisory challenges involved in the matter andbecause Indian banks have
no experience in this field, Islamic banking may be introduced in India in a gradual manner.
Initially, a few simple products, which are similar to conventional banking products, may be
considered for introduction through Islamic window of the conventional banks after
necessary notification by the government. Thus, Islamic Banking on the platform of RBI is
not possible legally.
However, the Islamic Banking system can be possible within the restricted purview of
the Credit Cooperative Society Act 1959/60 of Karnataka is implementable. It is therefore;
Taqwa Credit Cooperative Society Ltd was registered on District level ‘Kumta’ and started
the Islamic Banking operations in Bhatkal.
The entire Islamic banking model adopted of Taqwa is based on the book “A Practical
Model of Islamic Baking” authored by Dr. Mohammed Sayeed Shingeri MBA, Ph.D. USA.
World scholars have approved this book. The current sharia board members of Taqwa
Banking are renowned Islamic Scholars of India.
Taqwa Banking Model was initiated with goal to provide with “Riba free” (Interest free)
financing or offering reasonable return on deposits and high return on investment schemes.
Hard lending based on ‘Riba’ has resulted in creating NPA’s for borrowers who are in
distress, rewarded with more distress (due to penal interest, Recovery fees etc., resulted in
many suicide cases). To provide high quality product and services to the customers and
freeing them from the vicious moneylenders, provide means for building assets of lasting
value. Hence, society needs equitable growth, achievable by Taqwa soft lending only it leads
to the promotion of “Justifiable distribution of wealth” also results growth in various socio-
economic sectors, definitely.
As interest-bearing is very hard banking system that all societies need to be replaced
by soft banking system as Taqwa Model is fully exempted from ‘Riba’ (Interest free terms)
majority of society still deprived of credit facilities due to lack of documentations as

10. demanded by the traditional banks. Therefore, Taqwa came up with the disruptive and
innovative Banking Model with Latest technologies based on Sharia principles.

The beauty of finance in sharia governance framework inherits potential one of the
features in which borrower in case of genuine financial difficulties either are protected from
any enforcement to repay the balance debts, if any, such borrowers are given comfortable
grace period or liquidated debt against “Borrowers relief funds” GL account with Taqwa
banking unlike in the conventional bank borrowers are abused until to his/her death.
Taqwa Banking is an Islamic Banking or alternative banking model (based on sharia
principles) while, traditional banking system is based on “Riba” (interest) forbidden in Islam.
The funds accepted as deposit from the public are carefully deployed in finance schemes
covered by risk management. Thus, the funds with Taqwa are not the subjected being lost.
The profit earned from customers is very close to the market. In an Investment, the variations
between the profit and loss are very wider and the investors may lose their funds with
investment companies at any point of time. Taqwa Banking intends to offer their innovative
model of interest free banking to all sections of society across India. The aim of their effort is
to collaborate with any community to empower them, redistribute wealth, which is one of the
most significant issue of the present time. Come as partner with us. Let’s share prosperity to
all.
The vision of Taqwa is to grow fast all over India to serve for all the communities
irrespective of cast and creed, are invited to establish their ‘offices’ or ‘branches’ or
franchisees (as applicable) to their home towns or cities or states to operate under the
umbrella ‘Taqwa Finance Limited (TFL)’ who will provide with full guidance both;
professional and legal in establishing the Islamic Banking Models, under which, the funds
raised by a community will preliminary be invested or managed by same board of the
community as per the terms and conditions of TFL. Therefore, all such desired communities
for Islamic Banking and Finance system, are requested to approach TFL, Head Office in
Bhatkal with the intention to complete the minimum requirements, which are as follow:
1. To establish the model of Taqwa Office, the minimum requirement of paid up capital
Rs. 1 to 10 Crore to be raised from public.
2. To sign a Service Level Agreement (SLA) with TFL.

11. 3. To form an “Advisory Board” that will consist of eleven individuals (as per Cooperative
Society Act) of which one should be Chartered Accountant or equivalent to be
authorized by the community in their General Meeting.
4. To arrange an office premises measuring at least 1000 sq.ft
1.2 Islamic Banking Industries:
According to OIC – organization of Islamic Conference define the Islamic banking as the
company which carries islamic banking activities.
Islamic Banking refers to a system of banking activity which consistent with Islamic law and
guided by Islamic economics is economics in accordance with islamic law (Sharia principles)
islamic law are mainly derived from Quran, Sunnah, Ijma and Ijtihad. This sources act as the
major guidance of Fiqh Al-Muamalat (Islamic rules on transection) which governs all
banking transection.The Islamic Banking is based on a few sound basic principles of Murabaha,
Mudaraba, Musharaka, Ijara, Istisna’a, Bai-Salam, etc. Islam permits trade and commerce but strictly
prohibits interest in any form (not traditional usury alone) is a manifestation of injustice,
exploitation, hard-heartedness and cruelty.
The modern banking system is, in fact, the representative of evil (usury) of the
capitalistic order, which through exploitation and extortion sucks the blood of humankind. In
addition, on the other side, creating inflation (plethora of currency created artificially), it
breaks the backbone of man’s economy. However, all against the humanitarian Quranic
injunction, the international banking system prohibits/discourages trade (through embargoes)
and permits/encourages usury (Riba).Nevertheless, banking is not altogether barren and
devastating. It has certain advantages too, particularly in promoting commerce and industry
and extending this sphere of trade to the international boundaries and in its endeavors to take
the manufacturers to various countries from one end of the world to another; both of which
activities are essential for man’s progress and beneficial to him in many other ways. So, the
agency of an institution like bank is indispensable for a man of the world today.
Since the beginning of the 18th century, banking has been conducted on an interest-
based system of lending money to those in need. With no other alternative was available.
People had no choice but to borrow money at often-high interest rates. This led to the
formation of an unfair system that brought unnecessary hardship on people, rather than opting
for interest as a way of generating wealth, Islamic banking is unique in the way that it helps

12. individuals as well as businesses build tangible and appreciating assets for themselves. This
not only leads to prosperity founded on a solid economic base, but also encourages the spirit
of entrepreneurship amongst its customers.
Islamic banks are based on the unique concept of profit and loss sharing with the
customers by way of various Sharia-compliant financing and investment tools, which is a
perfect of mode of finance and investment.
The Islamic finance industry has expanded rapidly over the past decades, growing at
about 12% annually. Today, sharia complaint financial assets are estimated at roughly
US$2trillion, covering bank and non-bank financial institution, capital markets, money
markets and insurance (“Takaful”). In many majority Muslim countries, Islamic banking
assets have been growing faster than conventional banking assets even it has influenced in
non-Muslim countries such as UK, Luxembourg, South Africa and Hong Kong.
Islamic banking refers to a system of banking that complies with Islamic law also
known as sharia law, which prohibits interest based banking and permits only profit sharing
based banking. The underlying principles that govern Islamic banking are mutual risk and
profit sharing between parties, the assurance of fairness for all and that transactions are based
on the underlying business activity or asset. There is no standard way of defining what is
Islamic bank is, but broadly speaking an “islamic bank is an institution that mobilize financial
resources and invest money in an attempt to achieve pre-determined islamically acceptable
social and financial objectives”
Islamic finance is equity based, assets backed, ethical, sustainable, environmentally, it
promotes risk sharing proportionate to the financial sector with the real economy, and
emphasizes on social welfare.Islamic bank works based on risk sharing without interest. The
customer and bank share the risk if any, proportionate to the investment and profit/loss is
divided accordingly. The major differentiating factor between their operations is without
interest. However, Islamic Banking Systems operates based on profit and loss, which is the
perfect mode of Investment.
Islamic BankingsAll contracts of operations and transactions will carry out in accordance
with Islamic Shari’a principles, which are as follows:
1. Murabaha:Selling of goods on cash or credit keeping a “mark up” on its total cost under
which a financier will buy goods in question and then put on-sale the goods to a required

13. customer, at an agreed mark-up price, as per pre-fixed terms and conditions”. Once the
price is fixed on any goods/ product cannot be changed irrespective of the time as agreed
between two parties, beforehand.
2. Ijara: It is “a contract for the use of rental assets for specific period of future time at a
fixed rent”. The asset in question must be in possession of the leasee.
3. Musharaka: It is “a form of business set-up where two or more parties invest venture
capital or project finance jointly in such a way that the profit/loss thus realized is shared
between them, proportionately”.
4. Istisn’a : It is “a contract where by a party undertakes to produce specific goods that is
possible to be made according to certain specifications as agreed beforehand at a
determined price and for a fixed date of delivery”.
5. Mudaraba: This technique involves two parties for a joint business transaction in which
first party provides finance called investor at the disposal of second party called working
partner who possesses skills to use the funds”.
6. Qard-Hasan: Qard-Hasan is a loan (interest free) given to someone who is in financial
need”. The repayment of such loan is not compulsory on the part of borrower (i.e.
optional). However, if the borrower is financially sound later, morally is entitled to make
repayment of the debt.
7. Dain: it is defined as a loan (interest free)”. It is obligatory on the part of the borrower to
repay the amount borrowed, as agreed mutually by both the parties. It is a commitment
made by the borrower to repay the amount borrowed as well as commitment to honour
the promise, in time.
8. Bia-Salam:This is “a sale of goods of defined specifications whose delivery will be made
at a future date for a cash price in advance”. The seller of the goods has to abide by the
contract and deliver the goods of determined specification on a definite due date. In case
of loss, the seller is responsible for 100% liability.
9. Speculating/Gambling:Contracts to ensure for a profit are as a form of gambling while
dealing in futures contracts for speculative profit are speculating. Both the activities have
been prohibited in Islam.

14. CHAPTER-2
Organization Profile

I. Background:

Taqwa credit cooperative Society Ltd,was registered the company under KSC Act 1960 vide
registration no. 41603/ 2015-16. This company is came into existence after thirty years of
vigorous efforts in banking experiences, in India. The registered name of the company is
‘Taqwa Credit Cooperative Society Limited’ herein after called ‘Taqwa’.Its business in its
registered Head Office and a Branch with effect from October 04/10/2015 in Bhatkal to
represent the first Islamic Banking Model so as to spread its wings later to all over India with
an Initial authorized capital 50 Crore. The value of each share is Rs. 1000 that will be
increased to no limit subject to demand from public as per the statuary requirements,

The founders of Taqwa hold 100% of its paid-up equities while the IPOs (initial
public offering) will be offered 40% of the authorized capital to Public, immediately to
selected shareholders. The minimum requirements to subscribe shares are 2 shares (i.e.
Rs.2,000/-) to become an ordinary shareholder of the Company (with no voting right) and the
minimum 25 shares i.e. Rs 25,000/- to be eligible for voting right to vote in person and the
maximum limited to 1,000 shares i.e. Rs. 10,00,000/- so as to distribute the investment
benefits among people involved, across the communities.

It was started with initial paid up capital Rs. 2 Crore (i.e. 20,000 shares, the value of each
share is Rs 1000). That was later increased to no limit subject to demand from publicAt the
time when Taqwa credit cooperative Society Ltd was founded the founders of the firm holded
100% of its equities 25% offered through the Initial Public Offering (IPO’s) once after
completion of all the legal formalities 20% of the equities were offered immediately to
selected shareholders the minimum subscription of 50 shares (i.e. 50,000) is essential to
become a shareholders of the company.

15. Taqwa Banking was started by entering into three Business Partnership for the deployment of
funds received from their valued customers initially they created three business portfolios for
generating income for them they were forex trading, mining, corporate 25 companies in
India.
II. Nature of Business:

Provides Business credit, Savings, and checking accounts specifically designed for
individuals and companies as per the Sharia Principles and Laws.
Taqwa Banking deals with all kind of banking transection as per Islamic banking
model, which deals, on interest (Riba) free banking rather it is completely based on
profit and loss sharing basis

III. Vision, Mission and Quality Policy
Vision:
A viable Islamic financial solution for the benefit and good of society in India

Mission:
To build up a strong Islamic Bank for delivering valuable financial products and
Services to our valued Communities

Quality Policy:
1. Security: To provide security on savings, Deposits and long-term investment
to the valuable customers
2. Trust: To appreciate the trust of shareholders in the Bank. It will aim to
manage their investments very carefully and live up to their trust.
3. Innovation: Identifying the various needs of the customers, the bank offers a
range of innovative products to meet their needs.
4. Transparency: To be very transparent regarding our product and services to
the customers
5. To provide product and services appealing to customers
6. Utility of Mutual benefits
7. Our key purpose is complete customer satisfaction
8. Providing Quality product and services to customers

16. IV. Workflow Model






















Cashier: the workflow process of Taqwa starts from the cashier who take payment from
customers and collects and record the monetary transection.

Customer service officer: they perform the tasks regarding handling complaints and
requests from customers and resolving the issues.

Senior operating officer: They are responsible for management of all the aspects of Taqwa
Credit Cooperative Society Ltd. Like Finance, HR, Operations, Governance etc. he checks
Senior operation
officer
Manager
Chief operating
officer
Chief executive
officer
Customer
service officer
Cashier Start
Start
Workflow Model figure 2.1

17. whether cashier and customer service officer are performing there task and duties as
obligated to them or not.

Manager: he is responsible for controlling, administrating and managing group of personnel
in the Taqwa Credit Cooperative Society Ltd in order to achieve the desired goal and
objectives.
Chief operating officer:he is a senior decision-maker assigned with overseeing the day-to-
day administrative and operational functions of a Taqwa Credit Cooperative Society Ltd. He
generally reports directly to the chief executive officer (CEO) of Taqwa.

Chief executive officer:he is the highest-ranking executive in a Taqwa Credit Cooperative
Society Ltd, whose main responsibilities include making major corporate decisions,
managing the overall operations and resources of a bank, acting as the main point of
communication between the board of directors and being the public face of the company. The
board and its shareholders elect a CEO.

V. Product and Service Profile


Taqwa Credit Cooperative Society Ltd offers following product to its customers:

I. Product Deposits
a) Saving account
b) Gold saving account
c) Current account
d) Fixed deposit account
e) Ghina fixed deposit account
f) Ghina saving account
g) Wakala deposit account
h) Taqwa mutual fund
i) Capital gain plus account
j) Tawfeer (piggy account)
k) Noor basic income account

18. II. Product Finances
a) Auto finance
b) Gold mortgage finance
c) Gold purchase finance
d) Commodity finance
e) Property finance
f) Lease finance
g) Hire finance
h) Project finance
i) Temporary overdraft
j) Micro finance
k) Call finance

III. Product Debentures
a) Sukuk Al Ijara
b) Sukuk Al Murabaha
c) Sukuk Al Mudaraba
d) Sukuk Al Musharaka

Taqwa Credit Cooperative Society Ltd offers following services to its customers:
a) Safe Keeping (WADIAH)
b) Digital Financial Services
c) Online/Internet fund transfer Services
d) Mobile fund transfer services
e) Taqwa medical Tourism
f) Takaful/Insurance Services
 Mutual Insurance
 Health Insurance
 Automobile Insurance

VI. Ownership Pattern
Taqwa Credit Cooperative Society Ltd is corporate organization based on credit
cooperative society ownership pattern.Shareholders are the owners of the company,

19. Hence to become a shareholder an individual must have minimum subscription of 50
shares of INR.1000 each (i.e. 50,000) the shareholders are:
i. Members of the Shingeri family
ii. Prominent Indian citizen

To be a shareholder (Owner) of the organization the Individual or company has to purchase
the shares of the company as follows:
 Ordinary ownership – minimum 2 to less than 25 shares (i.e. Rs 2000 to
25000)
 Active Shareholders - 25 to 1,000 shares (i.e. Rs. 25,000/- to 10,00,000/-)

Directors/Promoters and Owners



























Dr. Mohammed Sayeed Shingeri -
Chairmen
Mohammed Faez Shingeri - CEO
Mohammed Salman Shingeri - COO
Syed Abdul Qadir Tanuf Barmawer - CFO
Sibah Shingeri - CPO
Razeeya Sayeed Shingeri
Najiya Safoora Ikkeri
Kazi Noor Mohammed
Fatima Zohra khateeb
Aysha Nasreen Khateeb
Noorunnisa Khateeb
Prakash Moger
Founder
er
Shura committee
(Executive Team)
Directors/Owners

20. Achievements and awards is missing






VII. Future growth and Prospects

Taqwa Credit Cooperative Society Ltd ishas successfully obtained NOC (non objection
certificate) to expand its Banking operations in Southern States of Indiaand later it plans to
expandTaqwa banking operation at National level within 5 to 10 years All over the India in
every state of the country. Hence, Taqwa is rapidly growing and expanding its Banking
operations in the country. Just within 4 years of its establishment, Taqwa has grown rapidly
and it promises to grow even more in future.













Taqwa Credit Cooperative Society Ltd is to launch a new portfolio of luxury buses
from Bhatkal – Bangalore to and this portfolio in under consideration. Later in plans to
further expand this portfolio by increasing the number of buses carrying out the travelers
throughout the various destinations within the country

21. Within the restricted purview of registered corporate act of India to manifest the
operations to mainstream gradually within the global Islamic financial system that Taqwa
banking is planning to be potential to help and address the challenges of ending extreme
poverty and boosting shared prosperity in the society regardless of the community they
belong to.Hence, it aims in sharing benefits or wealth among societies by Taqwa banking
across India, in order to build materialistic free environment to care for each, which is need of
the hours.


CHAPTER–3
McKinsey’s 7S framework and Porter Five Force Model
with Special Reference to Organization

Mckinsey 7S framework
The 7s Model by McKinsey is the strategic tool that carefully evaluates the company’s
organizational design by looking and analyzing the 7 different internal elements that are
strategy, structure, systems, shared values, style, staff, and skills. The main aim of the model
is to identify if they are effectively and efficiently aligned with the core values of the
organization and helps it to accomplish its goals and the overall business objectives.

McKinsey 7S model was developed by Robert Waterman and Tom Peters during
early 1980s by the two consultants McKinsey Consulting organization. The model is a
powerful tool for assessing and analyzing the changes in the internal situation of an
organization. It is based on seven key elements, which determine the organization’s success,
which should be interdependent and aligned for producing synergistic outcomes. The model
can be used widely in various situations where an alignment is required.

McKinsey 7S Model with Special reference to Organization
Taqwa Credit Cooperative Society Ltd Mckinsey 7S framework illustrates the ways in which
seven elements of businesses can be aligned to increase overall effectiveness. According to
the framework strategy, structure and system represents hard elements whereas shared values,

22. style, skills and staff are soft elements of Mckinsey 7S framework, Mckinsey 7S framework,
stresses the presence of strong links between elements in a way that a change in one elements
causes change in others, As it illustrates in the figure 3.1, shares values are positioned at the
core of Taqwa Credit Cooperative Society Ltd, Mckinsey 7S framework, since share values
guide employee behavior with implicates in their performance.



Structure:structure is the hierarchy of the
organization that comprises of the authority,
Responsibility and Relationships of the firm. It is
mainly concerned with the direction of the delegation of authority, in Taqwa Banking the
employees report to the manager than the manager further reports to the Chief operation
officer (COO) if the matter is important and need attention then if is further reported to Chief
executive officer (CEO). Taqwa banking organizational structure has certain advantages as
strong control by senior management, clear division of authority and responsibility within
company and it supports efficient communication across the organizational structure. The
Mckinsey’s 7S Framework
Figure 3.1
Shared
values

23. disadvantage of the system is it is rigid there is lack of flexibility in the organizational
structure.
Strategy:Taqwa Credit Cooperative Society Ltd strategy is mainly based on commercial
basis combined with social objectives and to grow substantiallyoffering good returns to
investors and depositors. Moreover, Taqwa Banking is alternative to traditional and
conventional banking. It latest business strategy is to ensure high standard service to ensure
customer satisfaction and thus attract and retain customers and make aware the people about
the Islamic banking and finances. Taqwa Credit Cooperative Society Ltd as part of marketing
strategy it makes advertisement in social media, Internet, newspapers, Magazines, billboards,
banners etc.

System:Taqwa Credit Cooperative Society Ltd has good system. Taqwa Banking has a
limited range of system that are critically important to run Taqwa Credit Co-op Ltd
successfully. These includes employee recruitment, selection, Training, customer
management relationship, performance appraisal and others. It follows rules, regulations,
procedures including system that support the organization structure, Taqwa Credit Coop
Ltdhas social delivery system for improving and developing the condition and standard of
living of underprivileged and poor people of the society. The credit sector of Taqwa is
extending helping hand to people living below the poverty line to eliminate poverty from the
society.
Skills: The Taqwa Credit Cooperative Society Ltd is an Islamic bank, which requires
different knowledge and skills for different type of work at different levels in the
organization. Highly qualified professionals in the bank have major skills like technical,
financial (both Islamic and conventional financial skills), managerial, economical, public
relation etc. The Taqwa Credit Cooperative Society Ltd also look for the development of
their employees skills by providing them knowledge and training about the latest changes in
the financial and technological environment which is essential for the employees to enhance
their ability and skills to perform the jobs effectively to achieve organization objectives and
targets.

24. Style:Taqwa Credit Cooperative Society Ltd follows a top down participative style of
management. Taqwa banking believes that quality can be achieved by providing quality
financial and related services on a continues basis to its customers. In order to motivate the
employees, it encourages them to actively participate in setting the organizational growth
targets and provides them various benefits and incentives; Taqwa Credit Cooperative Society
Ltd is democratic and participative in nature. Where the members of shura committee takes
the decision regarding the various functions of the organization and maintenance of discipline
in the organization. They are as follows
I. Give instruction and order to subordinates
II. Listened to subordinates and respond to their needs
III. Maintain communication in the organization
IV. Maintain unity in the organization
V. Provide objectives to the employee in the organization

Staff:Taqwa Credit Cooperative Society Ltd follows a typical selection procedure, at the first
step the organization determine how many employees a organization need and later it
givesadvertisement in the newspaper, Internet, etc. Then the test is conducted and the
candidates are made to go through interview, which is being conducted by the top-level
management. The staffs are selected based on knowledge and capabilities to perform both
conventional and Islamic banking task and functions.
Shared Values:Taqwa Credit Cooperative Society Ltd constantly focuses on providing
customers different Banking experience than other banks. There are various banks provide
services but Taqwa banking provides experience include Islamic financing with interest free
banking and ensuring equity, justice and fairness to its customers. They also comes up with
various schemes like property finance, lease and hire finance. Project finance, gold finance,
mortgage finance, temporary overdraft etc. this are the purposes for attracting the individuals
and customers and feel satisfaction in the bank processes and functioning.
Porters 5 Force Model

25. Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael
Porter of Harvard Business School as a simple framework for assessing and evaluating the
competitive strength and position of a business organization.
This theory is based on the concept that there are five forces that determine the competitive
intensity and attractiveness of a market. Porter’s five forces help to identify where power lies
in a business situation. This is useful both in understanding the strength of an organization’s
current competitive position, and the strength of a position that an organization may look to
move into.
Strategic analysts often use Porter’s five forces to understand whether new products or
services are potentially profitable. By understanding where power lies, the theory can also be
used to identify areas of strength, to improve weaknesses and to avoid mistakes.



Thus, Five Forces analysis helps you stay competitive by:
 Knowing the strength of these five forces, you can develop strategies that help their
businesses be more competitive and profitable.
 Looking at opportunities, you can to strengthen their organization's position compared
to the other players for reducing the competitive pressure as well as generate
Porters 5 Force Model
Figure 3.2

26. competitive advantage.

Porters 5 Force Analysis with special reference to Organization

Threat of New Entrants (Low):For new entrants permission should be granted from the
registrar of cooperative society (RCS Act of Karnataka 1960) since Islamic banking cannot
be operated under RBI (reserve bank of India) platform. Hence, it is not easy to have the
permission from registrar of cooperative society. There are many political and legal issues
and the early investment is quite high. Since there is no support from RBI, therefore the entry
barrier is low.



Factors Affecting the Threat of New Entry Barriers
1) No government licensing from RBI (reserve bank of India)
2) Skilled manpower who possess Fundamental knowledge about the Islamic Finances
3) The entry of foreign Islamic banks
4) High Initial Investment

Threat of Substitution (Medium):Other commercial banks are based on interest rates.
Therefore, there is no real threat of substitutes as far as deposits or withdrawals, finances,
mutual funds, fixed deposit and income securities offered by Taqwa Banking on Islamic basis
based on sharia principles and laws are not offered by conventional banks.so there are not
many substitutes for Islamic banking service Bhatkal and across the Karnataka and India.
Taqwa Credit Cooperative Society Ltdis only Islamic Bank providing core-banking facilities
to its customers. However, there are many private and public banks and post office banks
provide some of the services, many private banks offers easy loans schemes to attract
customers from Islamic Banks.
Factors Affecting the Threat of Substitution barriers
1) Conservative customers
2) Close customers relationship
3) Switching cost

27. 4) Risk taking customers attitude

Bargaining Power of Buyers/Customers (Medium):customers can switch to any other
banks very easily if service provided was not good because switching cost is low. Customers
having their account in Islamic bank are aware that the traditional and conventional banks do
not provide services and facilities provided by Islamic banks. Because conventional banks are
based on interest and Islamic banks are based on interest free basis and profit sharing basis.
Which is very different from conventional bank. Hence, customers are loyal towards Taqwa
Credit Cooperative Society Ltd.
Factors affecting the bargaining power of Buyers:
1) Bank competitors
2) Long term finances
3) Multiple options
4) Margins and volumes

Bargaining Power of Suppliers (Low):In Taqwa Credit Cooperative Society Ltd the
shareholders and depositors are the suppliers of the banks. Hence, the customers’ deposits in
order get better profit and shareholders invest in order to get better return on investments. The
shareholders and depositors of Taqwa doesn’t usually withdraw their savings and investments
because there are no any other islamic banks in Bhatkal and nearby which provides profit on
deposits and adequate rate of returns on investments.
Factors affecting thebargaining power of Suppliers
1) Rise in investment avenues
2) Interest rates of other banks
3) Providers of fund
4) The economic outlook

Competitive Rivalry (Low):There are large number of private and public banks and they
have huge market share and there market growth rate is also high compare to the Islamic
banks (Taqwa Credit Cooperative Society Ltd). The switching cost is on the other hand is low
and the services provided by them are not same this situation does not creates the competitive
rivalry. However, many private bank try to attract the customers from Islamic bank by
providing them various benefits and incentives. But is still the competition is low asTaqwa

28. Credit Cooperative Society Ltd has monopoly of islamic banking in Bhatkal as its only bank
which is providing services on profitable basis to its customers.
Factors affecting the competitive rivalry
1) Players have similar strategies
2) Low market share
3) Low market growth rate
4) Barriers for exits are high
5) Less similar players of same size
6) Less product differentiation








CHAPTER – 4
SWOT Analysis

SWOT is a technique for analyzing the internal and external environments of an organization
through the identification and assessment of its strengths, weaknesses, opportunities, and
threats (SWOT).SWOT analysis is a tool for auditing an organization and its environment. It
is the first stage of planning and helps marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal
factors. Opportunities and threats are external factors. A strength is a positive internal factor.
A weakness is a negative internal factor. An opportunity is a positive external factor. A threat
is a negative external factor

SWOT analysis entails a distillation of the findings of an internal and external audit
that draws attention, from a strategic perspective, to the critical organizational strengths and
weaknesses and the opportunities and threats facing the organization.

29. Performing a SWOT analysis helps one thoroughly understand business by presenting
a viewpoint of the company's operations from a different angle. For new businesses, this
analysis is critical to the organization's planning process. It can, however, be performed at
any time. A company's unique “SWOTs,” as they are often referred to, will help get a new
business on the right track.
INTERNAL
EXTERNAL
SWOT Analysis Figure 4.1

30. SWOT Analysis of Taqwa Credit Cooperative Society Ltd

Strengths:
1) Dedicated and knowledgeable promoters
2) Soft launch few years ago has given a feel for the business and testing ground
for operations, with positive results
3) Goodwill for the bank among the local population with readiness to contribute
to its growth and success
4) Currently negligible competition among from similar entities. Because Taqwa
Credit coop society is only islamic bank in India providing core-banking
services to its customers
5) Taqwa Credit coop society has strong financial stability and strong
capitalization
6) Economically viable operations combined with a just cause would facilitate
customer acquisition from competitors specify like what?
7) The staff have knowledge and ability to perform both Islamic and
Conventional Banking
8) It’s the first Islamic bank in Bhatkal to which is based on profit basis rather
than charitable basis
9) It provides all the modern technological services to its customers like online
banking, mobile banking, digital banking, NEFT and RTGS
10) People have positive attitude that islamic banks are based on equity, justice
and ethics
11) More controlled form of banking due to dual monitoring
12) It is based on profit and loss sharing agreements
13) Extends credit period of debtors in case of financial crisis

Weakness:
1) No ATM facilities provided by Bank
2) Not registered under RBI Act as Islamic Bank doesn’t comes under the RBI
regulation and guidelines
3) Need time to ensure critical mass to ensure reasonably good returns
4) Reluctance to deposit money until reputation is built

31. 5) Lack of full team will initially hamper operation specify what?
6) Awareness level still not satisfactory, need promote the concepts and benefits
to a large audience requiring resources time and efforts
7) Cannot canvas local deposits unless and until paid up capital reaches certain
crores
8) Slow growth in the past 4 years of establishment only 1 additional branch has
been opened in Bangalore
9) Low level of market share as compared to other conventional banks in the
Bhatkal
10) Limited brand recall and still less branch network compared to market
leaders
11) No international presence
12) The bank limits its revenue generation opportunities by having its operations
confined to a geographical region
13) Majority people still believe this system is only for Muslim

Opportunities:
1) An alternative to traditional and conventional banking
2) Granted NOC (No objection certificate) from the register of credit cooperative
society to open the banks in the six states in India. Hence huge opportunity to
open Taqwa banking in various cities of various states
3) Chances of renovation and re-engineering in financial products are more
specify what?
4) Increasing number of branches and opportunities and offer to tie up with other
islamic banks
5) Islamic bank and finance is today one of the world’s fastest growing economic
sector and has opportunity to grow in emerging economies in nearby future
6) To focus on expansion of distribution channel could provide new opportunities
to the bank
7) Launch of new financial products by the bank help it sustain in high
competitive banking environment
8) Branding and marketing the brand in the Bhatkal, and all over the state and
country in upcoming years

32. 9) Traditional interest based banking losing its value, Therefore this provide
great opportunity for islamic banks like Taqwa Banking
10) Unit calculation of fixed deposit, Mortgage, shares units are based on monthly
basis. Now Taqwa Banking is planning to bring it under hourly basis of unit
calculation
11) Profit unit is calculated on unit basis on the other hand conventional banks
uses average calculation method
12) Positive attitude of people towards Taqwa banking
13) Opportunity of becoming the leader in islamic banking in the India, as it’s the
only islamic bank providing core-banking services and facilities to its
customers in the country
Threats:
1) Dynamic and rapid changing technological environment leads to make the
changes and upgradation in core-banking software which is too expensive,
complex and time consuming
2) Changing banking needs of individual and customers
3) Foreign bank and national banks establishments in Bhatkal leads to switching of
customers
4) Intense competition from conventional banks, Therefore many conventional banks
keeps there profits margin at minimum level
5) Continues fluctuations in interest rates
6) Regulatory changes concerning to the financial crisis are going to be stricter and
many have adverse effect on banking system of Taqwa banking
7) In the past and present a lot of so called islamic investment companies attracted
huge investments from the public with temptations of hefty profits on investment
but all those companies looted and lost the hard earned money of public. Hence,
this has created a negative attitude towards the people regarding the Taqwa.
8) There is perception among the people that religion and financial matters are two
separate things and should be treated separately
9) Opposition by some political parties
10) Increase in market share and growth of conventional banks

34. CHAPTER – 5
Analysis of Financial Statements

Profit & LossAccount of Taqwa Credit Co Operative society Ltd.

Income 31-03-2018 (IN RS.) 31-03-2017 (IN RS.)
Profit on Finance & Advances
Auto Finance 1,00,748 43,744
Noor Finance (Education) 0 0
Commodity Finance 2871 144
Property Finance 0 0
Hire Finance 0 0
Lease Finance 0 0
Gold mortgage Finance 4,35,510 3,11,654

Micro Finance 0 0
Project Finance 51,156 73,918
Sub Total 5,90,285 4,29,460

Income on Investments
Forex trading, Corporate and mining 1,648,0794 110,0470
Gold & Silver Bullion Market 1,91,730 0
Sub Total 16,672,524 111,1470

profit earned on wakala Investment 13,571,531 0
other income 3,48,220 48,470
Sub Total 13,919,751 48,470

Income on Statuary Reserves
SLR/CRR (Non-sharia Compliance) 6,57,146 4070
Sub Total 6,57,146 4070

Operating total Income A 31,839,706 1,582,470
Net profit Before Tax A-B 1,866,345
Provision for Income Tax 4,30,700
Profit for the Current Year 1,435,645
Net Profit for the Current Year 6,48,414

35. Expenses 31-03-2018 (IN RS.) 31-03-2017 (IN RS.)
Man power Expenses
Management fee to Taqwa Finance Ltd 2,97,471 0
Salaries, Allowances& Bonuses 8,53,439 4,07,218
Director Sitting fees 14,400 0
Sub Total 1,165,310 4,07,218

Office Maintenance 5,78,487 2,25,200
Audit fee 68,000 35,380
Premises and Equipment Expenses 0 2800
Advertising 2,87,950 76,695
Tale Communication 33,155 19,030
Electricity 38,277 32,340
Travel Expenses 29,949 40,881
Miscellaneous 2,94,095 1,21,895
Depreciation 3,72,883 1,23,157
Software Maintenance 3,41,278 0
Profit Paid to Depositors 2,46,001 2,61,429
Profit Paid to Investors 14,073,810 1,59,488
Conveyance Charges 3,66,000 0
Profit cost due to Branches 11,936,266 5,03,938
Others 14,1900 0
Sub Total 28,808,051 1,602,233

Provision for Bad and Doubtful Debts
Total Operating Expenses B 29,973,361 2,009,451
Net loss Before Tax for MARCH 31, 2017 7,87,231 4,26,987
Net loss Before Tax for MARCH 31, 2016 3,60,250
Net Profit for the Current Year
TOTAL 7,87,231

36. Balance sheet of Taqwa Credit Co Operative society Ltd.

Liabilities As at 31-03-2018 (in RS) 31-03-2017 (in RS)
Capital and Reserve
Share Capital (Active) 2,845,000 2,596,000
Share Capital (Regular) 5,45,000 5,03,000
Share Capital (Normal) 5000 0
Sub Total A 3,395,000 3,099,000

Reserves and Surplus
Opening Balance in P&L Account -7,87,231
Profit of the Year 1,435,645
Dividend Distributors -4,06,800
Closing Balance P&L Account -2,41,614
Sub Total B 1,435,645

Deposits and Investments
Opening Balance in P&L Account 25,398,054 3,358,230
Tawfeer (Piggy) Account 1,249,480 6,32,990
Taqwa Mutual Fund 32,951,000 2,275,000
Current Account 1,68,320 1,07,672

Fixed Deposit Account 2,65,000 20,000
Ghina Fixed Deposit Account 2,580,000 1,430,000

Wakala deposit Account 3,77,000 2,614,000
Capital gain Funds (Investments) 0 0
Security deposits 20,109,000 2,300,000
Sub Total C 83,097,854 12,737,892

Sukus
Project in Bangalore
Project in Bangalore (5years)
Sub Total D 0 0

Due to Branches
Due to Branches Bhatkal
Sub Total E 0 0
Others 4,82,363
Others Liabilities 2,18,095

Total Liabilities (A+B+C+D+E) 88,146,594 16,319,255

37. Assets As at 31-03-2018 (in RS) 31-03-2017 (in RS)
Cash at bank
Cash 7,65,618 6,25,936
Bank 21,843,494 5,32,289
Sub Total A 22,609,112 1,158,225
Investments
Residential and Commercial Projects
Forex Trading and Corporate Investments 20,109,000 3,100,000
SBI Mutual Funds 35,000,000
Gold and Silver Bullion Market 2,600,000 3,700,000
Sub Total B 57,709,000 6,800,000
Finances and Advances
Auto Finance 4,21,042 6,39,692
Noor Finance 0 0
Commodity Finance 18,275 27000
Property Finance 0 0
Lease Finance 0 0
Hire Finance 0 0
Gold Mortgage Finance 1,559,735 4,641,755
Micro Finance 0 0
Property Finance 0 5,23,620
Less: Provision for Bad and Doubtful Debts 0 0
Sub Total C 1,999,052 5,832,067
Fixed Assets
Computers 3,51,069 2,81,029
Furniture and Office Equipment 5,20,884 2,57,969
Electric Equipment 4,00,305 2,67,060
Less: Depreciation 0 -1,23,156
Net TotalSub Total D 1,272,258 6,82,902
Due to Head Office
Due to Head Office - Wakala Investments 0 0
Subtotal E 0 0
Other
Other Assets 3,769,941 1,058,830
Sub Total F 3,769,941 1,058,830
Loss
Loss for Previous Year 2016/17 7,87,231
Loss for Previous Year 2017/18 7,87,321
Sub Total G 7,87,231 7,87,231
Total Assets (A+B+C+D+E+F+G) 88,146,594 16,319,255

38. Table 5.1 Current Ratio

Date Current Assets Current Liabilities Current Ratio

31-03-2017 1158225 3099000 0.37
31-03-2018 22609112 3395000 6.66






Current Ratio = Current Assets / Current Liabilities


Interpretation

The above chart indicates that in 2017, the current asset ratio was 0.37 and the
current ratio in 2018, was 6.66 hence the current ratio in 2018 has increased that
is 6.66






31-03-2017
31-03-2018
Current Ratio 0.37 6.66
0
1
2
3
4
5
6
7
Current Ratio

39. Fixed Assets Ratio = Fixed Assets / Total Assets*100

Interpretation
The above chart indicates that the fixed assets to total assets ratio in the year
2017 was 4.18%. However, in the year 2018 it has decreased to 1.44%.

31-03-2017
31-03-2018
Fixed Assets Ratio 4.18% 1.44%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
Fixed Assets Ratio
Table 5.2 Fixed Asset Ratio

Years Fixed Assets Total Assets Fixed Assets Ratio

31-03-2017 682902 16319255 4.18%
31-03-2018 1272258 88146594 1.44%

40. Table 5.3 Quick Ratio
Years Quick Assets Current Liabilities Quick Ratio

31-03-2017 625936 3099000 0.2
31-03-2018 765618 3395000 0.26




Quick Ratio = Quick Assets / Current Liabilities
Interpretation
The above chart indicates in the year 2017 quick ratio was 0.20 but in the year
2018, 0.26 increased it



31-03-2017 31-03-2018
Quick Ratio 0.2 0.26
0
0.05
0.1
0.15
0.2
0.25
0.3
Quick Ratio

41. Table 5.4 Return of Total Resource Ratio

Years Net Profit Total Assets
Return on total
resource ratio

31-03-2017 -426981 16319255 -2.61%
31-03-2018 648414 88146594 73.56%






Return on total resource ratio = net profit / total assets * 100
Interpretation
The above chart indicates that the Return on total resource ratio in the year 2017
was -2.61% but in the year 2018 it has increased by 73.56%




31-03-2017 31-03-2018
Return on total resource ratio-2.61% 73.56%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Return on Total Resource ratio

42. Cash Ratio =
Interpretation
The above chart indicates that the


Table 5.5

Years


31-03-2017
31-03-2018

43. Ratio =
Interpretation
The above chart indicates that the



Table 5.6

Years


31-03-2017
31-03-2018

44. Table 5.7

Years

31-03-2017
31-03-2018



















Ratio =
Interpretation
The above chart indicates that the
Table 5.8

45. Ratio =
Interpretation
The above chart indicates that the

Years

31-03-2017
31-03-2018

46. CHAPTER – 6
LEARNING EXPERIENCE

The internship chance that I avail with Taqwa Credit Cooperative Society Ltd was a great
opportunity for learning and professional development. The main idea behind choosing
Taqwa Credit Cooperative Society Ltd was to learn and gain proficiency in Islamic finance. It
is also a matter of pleasure for me to work in distinct environment that introduced me with
such a unique and new thing. I recognize this opportunity as a big milestone in my career.

During my internship program, I get familiar with the work environment, culture, Ethics and
staffs of Taqwa Credit Cooperative Society Ltd. It enhanced my skill, knowledge and ability
to work in a team. This internship gave me the opportunity to learn valuable information and
acquire knowledge and skills that are required to perform task and duties in the organization.
Hence, I understood that an individual could never understand what a job is unless he/she
have worked practically. Taqwa Credit Cooperative Society Ltd allowed me work with
professional employees, which helped me to increase my knowledge regarding the Islamic
Finance and banking and how it works and functions its banking operation.I also learn about
the various sharia principles on which all the islamic banking transection are carried out and
the principles are as follows:
 Murabaha
 Ijara
 Musharaka
 Istisn'a
 Mudaraba
 Qard-Hasan
 Dain
 Bia-Salam
 Speculating/Gambling
 Wakala

47. Moreover, I learned about the prohibited commodities under sharia laws prohibit using or
dealing in certain commodities such as alcohol, pork products or containing these products in
any other forms. In addition to these, the Sharia laws prohibit the following;
1. - Legitimacy in trade activities.
2. - Lawful sources
3. - Moderate in expenditure (highly appreciated).
4. - Narrowing the gap between rich and poor through institution of Zakah (poor due).
5. - Proper governance of financial activities, i.e. debt documenting and witnessing.
6. - Fulfillment of all contracts and prohibition against betraying any contracts
7. - Prohibition against bribery to earn unfair advantage.
8. - Elimination of Riba (interest).
9. - Monopoly (not to increase price for the necessity items).
10. - Exploitation.
11. - Prohibited sale (e.g. force sale)
12. - Prohibition against deriving income through cheating, dishonesty or fraud, etc.
13. - Prohibition of short selling.
14. - Gharar (elimination of uncertainty or ambiguity in contract, prohibited trade etc.)
This internship allowed me to gain experience and develop interpersonal skills; I
learned the multi-tasking skill and improved my communication skill as well as I became
self-confident and tactful. It helped me learn entrepreneurial skill and learn work ethic and
time management. I became able to judge professionally, learned to act in ethical manner that
is most important for an employee or an individual to move forward.

During my Internship in Taqwa Credit Cooperative Society Ltd, I came to go through many
experiences that helped me develop distinct qualities to achieve success in the future.

At the conclusion, I just want to mention without the practical knowledge it is quite difficult
to understand and work in business environment. This internship has smoothed the way to
look into the future and step out in the real world to achieve the personal goals and objectives

48. BIBILOGRAPHY

References
 Mr. Mohammed Salman Shingeri – Regarding the Taqwa Banking organization
information and background
Chief operation officer, Taqwa Credit Cooperative Society Ltd

 Mr.Sagar P.S – Regarding Organizational profile
Senior operation officer, Taqwa Credit Cooperative Society Ltd

 1
st
Annual Report 2016-17 of Taqwa Credit Cooperative Society Ltd

 2
nd
Annual Report 2017-18 of Taqwa Credit Cooperative Society Ltd

Website
https://www.kbmanage.com/concept/swot-analysis
https://www.bigcommerce.com/ecommerce-answers/what-is-swot-analysis/
https://www.notredameonline.com/resources/business-administration/what-is-swot-
analysis/
https://www.marketing91.com/7s-framework-by-mckinsey/
https://www.managementstudyguide.com/mckinsey-7s-change-model.htm
https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html
http://taqwabanking.com/founder.html
http://www.maeeshat.in/2013/10/taqwa-finance-limited-going-to-launch-in-india/