Assoc. Prof. Dr. Tono Saksono Faculty of Technology Management, Business & Entrepreneurship, UTHM Johor

BUSINESS OPERATION IN YEAR 1 (1 Jan – 31 Dec) BUSINESS OPERATION IN YEAR 2 (1 Jan – 31 Dec) 11.5 days 23 day difference Islamic financial statement should be carried out on this date (and consequently, zakat payment associated with the booked profit) It accumulates into one year unpaid zakat for thirty years of the business operation Current financial statement

 Calendar is an organization system of time since pre-historic age of men  Calendar reveals the greatest achievement of civilization development of men  No men’s activity that is independent of the calendar system for their time management system  Whole life of any Muslim is a complete devotion to the Almighty God, hence, calendar plays a very important role in any Muslim’s spiritual and mundane lives  Islam only recognizes the Islamic calendar

Islamic Finder (10 Rajab 1430) Search Truth (9 Rajab 1430) Accurate Times (10 Rajab 1430) Fajr15:515:51 Sunrise7:05 7:06 Dhuhur13:13 13:12 Asr16:39 Maghrib19:20 19:19 Isya20:3520:3020:34

Bank's Names PBZT 1 Affin Islamic Bank Berhad 31-Dec 2 Al Rajhi Banking & Investment Corporation 31-Dec 3 Asian Finance Bank Berhad 31-Dec 4 Bank Islam Malaysia Berhad30-Jun 5 Bank Muamalat Malaysia Berhad31-Dec 6 CIMB Islamic Bank Berhad 31-Dec 7 EONCAP Islamic Bank Berhad 31-Dec 8 Hong Leong Islamic Bank Berhad 30-Jun 9 HSBC Amanah Malaysia Berhad31-Dec 10 Kuwait Finance House (Malaysia) Berhad 31-Dec 11 Maybank Islamic Berhad 30-Jun 12 OCBC Al-Amin Bank Berhad 31-Dec 13 Public Islamic Bank Berhad 31-Dec 14 RHB Islamic Bank Berhad 31-Dec 15 Standard Chartered Saadiq Berhad 31-Dec PBZT = profit/loss before zakat and tax

Bank's Names PBZT 1 Bank Muamalat Indonesia31-Dec 2 Bank Mega Syariah 31-Dec 3 Bank Syariah Bukopin 31-Dec 4 Bank Syariah Mandiri31-Dec PBZT = profit/loss before zakat and tax

 Lack of sufficient information, as we need at least twenty years of continuous financial statements of Muslims’ business entity  Stock price history of certain commodities are therefore used as a means for the development of a robust algorithm (estimation model)

Excel’s 6 th degree polynomial global modeling

Error > US200

Excel’s 6 th degree polynomial global modeling Error of ~ US$ 40

Excel’s moving average of every 20 observations

Gregorian DateStock Price (US$) Dates require estimated asset value 4/19/ /20/ /21/1990 4/22/1990 4/23/ /24/ /25/ /26/ /27/ Syawwal /28/1990 4/29/1990 4/30/ end of June /1/ /2/ /3/ /4/ /5/1990 5/6/1990 5/7/1990 5/8/ /9/ /10/ No estimation required Market price available

Gregorian Date Transaction Volume Stock Price (US$) Dates require estimated asset value 10/27/200416,697, /28/200414,380, /29/200418,333, /30/ /31/2004 end of Gregorian month 11/1/200412,941, /2/200416,938, /3/200418,920, /4/200425,234, /5/200420,886, /6/ /7/ /8/200413,422, /9/200415,814, /10/200417,046, /11/200414,375, /12/200418,835, /13/ /14/ Syawwal /15/200414,334, /16/200413,142, /17/200418,648, /18/200415,703, /19/200421,810, /20/ /21/ /22/200415,360, /23/200421,021, Estimation Required Market price unavailable

Gregorian DateStock Price (US$) Dates require estimated asset value 11/26/ /27/ /28/ /29/ /30/2003 end of Greg month 12/1/ /2/ /3/ /4/ /5/ /6/ /7/ /8/ /9/ /10/ /11/ /12/ /13/ /14/ /15/ /16/ /17/ /18/ /19/ /20/ /21/ /22/ /23/ /24/ /25/ Dzul Kaidah /26/ /27/ /28/ /29/ /30/ /31/ Estimation required Market price unavailable

Y = 35.1 ERROR

Excel’s moving average of every 20 observations

ERROR of almost US$ 50!!!

y i = p 0 + p 1 x i + p 2 x i 2 + p 3 x i p n x i n Where: y i =stock price at i th day; x i =i th transaction day; p 0, p 1,... p n =unknown parameters of the polynomial to be determined.

y 1 = p 0 + p 1 x 1 + p 2 x p 3 x p n x 1 n y 2 = p 0 + p 1 x 2 + p 2 x p 3 x p n x 2 n y 3 = p 0 + p 1 x 3 + p 2 x p 3 x p n x 3 n y i = p 0 + p 1 x i + p 2 x i 2 + p 3 x i p n x i n

v + y = A * p

v + y = Ap p = (A t A) -1 A t y p = N -1 K

.

E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E+29

=

Only inversion of small sized and better scaled matrix is required This module developed for Matlab 2009 users

Standard deviation is a good precision measure only if there is no functional error in the model

p1p2p3p4p5p6p7p8p9p10p11 p p p p p p p p p p p

Window 113 rel accuracy: 1.14% of average price (US$)

ASSETSVOLUME PERIOD ZAKAT (Gregorian calendar US$) ZAKAT (Islamic calendar US$) Zakat deficit (US$) From - tomonths General Electric 10 million shares 5/Jan/2000 to 16/Jun/ ,583,32983,968,9402,385,611 Gold 1,000,000 ounces 4/Jan/2000 to 17/Mar/ ,103,098121,664,8433,561,745 Crude oil 10 million barrels 16/Aug/2006 to 24/Feb/ ,781,15142,970,8811,189,730 TOTAL ZAKAT DEFICIT:7,137,086

1,200 years?