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84 EXIM BANK MALAYSIA
Annual Report 2020

SHARIAH COMMITTEE’S REPORT

Zakat on Islamic Business
6. For financial year ended 31 December 2020, zakat is calculated based on the growth method with appropriate adjustment.
The Committee has reviewed and affirmed that the Bank is not eligible to pay zakat as the Bank is in net liabilities.

7. The Committee has reviewed the financial statements of the Bank, including the calculation of Zakat and confirmed that the
financial statements prepared are in compliance with the Shariah rules and principles as well as the minimum disclosure
requirements as stipulated by Bank Negara Malaysia.
Disclosure on Shariah Non-Compliant Event
8. During the financial year, the overall operations, business, affairs and activities of the Bank are in compliance with Shariah but it
has come to the Shariah Committee’s attention that a material Shariah non-compliance (“SNC”) event has occurred and has been
rectified accordingly.

9. During the period of which between 21 August 2020 until 31 October 2020, the ta’widh was still not charged based on
the actual cost mechanism as endorsed by the Committee 18 March 2020 and approved by the Board of Directors on
30 June 2020.

As such, the Committee during its third Special Shariah Committee Meeting dated 22 December 2020 has decided that the
overcharged ta’widh amounting to RM662.97 on the two accounts as actual SNC event. The following measures were undertaken
by the Bank to rectify the issue:
i. The overcharged ta’widh amount paid by the customer to be deducted or set-off from customer’s outstanding balance (total
principal or cost and accrued profit).
ii. For those affected accounts (i.e. ta’widh overcharged) without any payment by the customers, the computation of ta’widh in the
ledger position need to be adjusted or rectified by the affected departments in order to comply with the requirements.

SHARIAH OPINION
We, as EXIM Bank’s Shariah Committee, to the best of our knowledge, have obtained sufficient and appropriate evidence to form
Shariah compliant opinion with regards to EXIM Bank’s Islamic business operations. Hence to the best of our knowledge based on
the information provided to us and decisions made during the Shariah Committee meeting, we are of the opinion that:
i. The Islamic banking and takaful business operations of EXIM Bank for the financial year ended 31 December 2020 have been
conducted in conformity with the Shariah rules and principles.
ii. The contracts, transactions and dealings entered into by the Bank in relation to its Islamic financial business during the financial
year ended 31 December 2020 that were reviewed by us, are in compliance with Shariah rules and principles.
iii The computation of zakat is in compliance with Shariah rules and principles.
We beg Allah the Almighty to grant us all the success and straight-forwardness and Allah knows best.

Signed on behalf of the Committee in accordance with a resolution of the Shariah Committee.

Prof. Dr Rusni Hassan Haji Zainal Abidin Mohd Tahir
Chairman Member

Kuala Lumpur, Malaysia