Islamic Financing IT Solution SYED AHMED ZAFAR TERRITORY

Islamic Financing IT Solution SYED AHMED ZAFAR TERRITORY ACCOUNT MANAGER - SALES Private‐Restricted Copyright © 2017 Path Solutions

About Path Solutions in Kuwait, Founded in 1992 and headquartered worldwide representation with 12 global offices 27 years of leadership, only vendor focused purely on Islamic finance. 10 Years #1 selling Islamic Core Banking System as per IBS 2014, i. MAL successfully completed Sharia compliance engagement conducted by Deloitte Private‐Restricted Path Solutions was the First SOFTWARE firm to be certified by the AAOIFI in 2008. Renewed in 2019. All solutions are developed in‐house, implemented by Path and supported by Path Largest customer base of 140+ Islamic financial institutions in 4 continents across 39 countries Copyright © 2017 Path Solutions

Our Offering Consists of a large portfolio of products, software analysis, services and expertise for the following major business segments: ISLAMIC COMMERCIAL BANKING ISLAMIC INVESTMENT BANKING & FUND MANAGEMENT ISLAMIC RETAIL CONSUMER FINANCING COMPANIES ISLAMIC MICROFINANCE COMPANIES Private‐Restricted Copyright © 2017 Path Solutions

Client Distribution 140+ Islamic financial institutions in 3 different languages, in 4 continents and across 39 countries. Private‐Restricted Copyright © 2017 Path Solutions

Islamic Banking & Finance is DIFFERENT from Conventional A True Islamic Solution should have the following attributes Enables banks to link the sources of funds to the uses of funds Enables structuring of different products & product mix Enables processing of different transactions on a customer from different angles based on relationship, such as: partner, financer, investor (RIA or URIA), etc. . Processing profit calculation with management of one or many pools Enables banks to provide transparency Enables posting of Islamic banking transactions through proper contracts and documentation, process, workflow & fiscal implication Enables Sharia audit procedures Enables proper control and security Enables compliance with Sharia and regulating bodies’ guidelines Enables Zakat computation, sudden holiday management, etc… Private‐Restricted Copyright © 2017 Path Solutions

General System Features for Islamic Finance Facilities Approval Cycle Limits Management Collateral Management Settlement & Repayment Schedule Profit Amortization Collections & Follow‐up Provisioning Past Due & Delinquency management Private‐Restricted Copyright © 2017 Path Solutions

Specific Features for Islamic Finance Complete product engineering facility to design the product based on the bank/market needs. Profit Tracking and Declaration for Musharaka and Mudaraba. Both straight line and diminishing returns profit calculation methods. Deal ticket management with approval by the authorized persons. Single deal ticket entry is available which combines the sources of fund and the utilization of the funds. Payment instruction maintenance and Partenariats Stratégiques management whereby deal workflow are finalized as per the AAOIFI standards i. e. trade, investment, repayment plan and payment instruction/delivery note and vendor payment. Private‐Restricted Copyright © 2017 Path Solutions

Ijarah related Features System supports Ijarah (operating lease) and Ijarah Muntahia Bittamleek (financial lease) Ability to record the details of the leased asset in the bank's books Support calculation and generation of rental flows and payments Support accounting entries for accrual of rental installments as well as arrears processing Ability to process pre‐payment towards financing contract. Additionally, should be able to levy penalty incase of pre‐payment at discretion Support following transaction types: asset classification, capitalization, depreciation, transfer and sale Partenariats Support for contract amendments including change in maturity date, payment frequency, rental Stratégiques rate etc. Support for collection of advance rentals in case of Ijarah for assets in construction phase System has the capability to calculate the payment schedule for the asset purchased by the Bank Ability to record expected life of the asset Private‐Restricted Duration of lease and Residual value of the asset is recorded in the system Copyright © 2017 Path Solutions

Islamic Banking & Finance is DIFFERENT from Conventional CONVENTIONAL SYSTEMS * Unable to cater to Termination of Lease where: * The lease will suspend if the leased asset becomes unusable; * The lease will terminate if the leased asset is destroyed; PURE ISLAMIC * When an asset is reported lost and accruals are to be stopped, you can suspend the deal. The accrual for the Partenariats Stratégiques suspended period will not be posted in income, but in suspense account. * When you reactivate it then the accrual for suspended period will be posted from suspense to income. Private‐Restricted Copyright © 2017 Path Solutions

Path Solutions Islamic Banking & Finance Capabilities Path Solutions had the initial certification of its modular i. MAL Islamic banking & finance platform awarded by AAOIFI in 2008 which covered the full set of services, business processes, contracts, Islamic accounting treatments, implications and behavior of the system. Private‐Restricted Copyright © 2017 Path Solutions

Benefits of AAOIFI Certified System Allows institutions to prove that they operate according to the Islamic rules and regulations and AAOIFI standards. The model bank set up including products and related contracts permits fast-track implementation and guaranteed compliance for internal and Sharia audit processes. fully AAOIFI certified contracts thereby saving costs and the effort of making new contracts and getting the Sharia’ audit done. Share with new customers Assists Islamic financial institutions in marketing Sharia-compliant products to their customers and provide an independent endorsement on the institution’s Shari’a compliance. Private‐Restricted Copyright © 2017 Path Solutions

Available AAOIFI Certified Contracts in the System Partenariats Stratégiques Private‐Restricted Copyright © 2017 Path Solutions

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