This chapter will describe IP batch processing performed in the Islamic ILM module.
This section contains the following topics:
Profit resolution for customer accounts with non-integrated LM IP products is carried out by the system at the time of saving the accounts. In the case of customer accounts with integrated LM type of IP product, System Account records for the customer accounts are created after the account structure has been maintained. The system accounts are created on the basis of their account type (Header and Reallocation) and are resolved in a similar manner to customer accounts.
The following are the processes involved for IP Batch:
Profit Calculation, Liquidation and Reallocation are based on the following:-
Profit will not be reallocated for child accounts.
The following SDEs are used to process IP batch:
Sl No | SDE | Sweeping | |||
---|---|---|---|---|---|
1 | ILVD_ULT_DR_BAL ILVD_ULT_CR_BAL |
Profit calculation for the header account for Mudarabah rate. | |||
3 | IL_DR_EFF_RATE IL_CR_EFF_RATE ILVD_CP_DR_CONT ILVD_CP_CR_CONT ILVD_NCP_DR_CONT ILVD_NCP_CR_CONT |
Calculated applying same Mudarabah rate derived for the header to the child accounts. |
The Mudarabah rate is derived by running the Profit Distribution Batch with respect to the profit earned under respective fund ID.
Example
Consider the following account structure which is linked to the group code GRP1.
For the above structure, the corresponding month starting balances and base amount are as follows:
If we consider that there is no transaction in the above accounts during the month, then the month end profit calculations for the following cases are illustrated in the table below.
The following example illustrates the above mentioned Islamic ILM processing:
Header System Account
The three System Accounts generated for any Header Account will have the balance as mentioned below:
Header: The sum of all the child balance in a particular group will get stored in the header account.
Parent: The Balance available for its own account will get stored in this system accounts.
Child: The Balance available in parent will get moved to child as it has to contribute to its parent.
Intermediate System Account
The three System Accounts generated for any Intermediate Parent Account will have the balance as mentioned below:
Header: The sum of all the child balance in a particular group will get stored in the header account.
Parent: The Balance available for its own account will get stored in this system accounts.
Child: The Balance available in parent will get moved to child as it has to contribute to its parent.
Profit calculation is based on the following for different scenarios:
The following are the scenarios for pool header:
Only ILM IP Product attached to the Header Account Class
Profit is calculated based on the Mudarabah rate derived for the Header Account through ILM Product and no IP Calculation for the base amount if it is more than 0.
Only ILM IC Product attached to the Header Account Class and Normal IP for the Child Account
Profit is calculated based on the Mudarabah rate derived for the Header Account through ILM Product and no IP Calculation for the base amount if it is more than 0.
For Child account base amount the profit would be calculated.
Validating IP for the Header Account along with normal IP
The system validates the following for IP:
Profit is calculated based on the Mudarabah rate derived for the header account through ILM product and for base amount through Normal IP product.
Profit is calculated based on the Mudarabah rate derived for the header account through ILM product and for base amount through Normal IP product to both Header and Child Account.
The following are the scenarios for pool Reallocation with Benefit:
Only ILM IP Product attached to the Header and Child Account Class:
If normal profit product is not attached to Child Account to calculate profit for available base amount and only ILM product is attached to the Child Account, then the system considers the Mudarabah rate derived for Header Account to reallocate profit to Child Accounts based on its contribution.
Both Normal IP as well as ILM product attached to the Header and Child Account Class
If both normal and ILM products are attached, then the system derives Mudarabah rate for normal products based on its base amount available after sweep. Mudharabah rate for ILM product is derived based on Header Account’s Mudarabah rate.
Considering the previous example, we can arrive at the following:
Only ILM product at header account level
Below table illustrates a single day calculation
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | H1SYS1 | C | Not used | ||||||||||||||||||||||
H1 | 110000 | 257000 | H1SYS2 | H | 257000 | 10 | 70.41 | 15 | 105.62 | 105.62 | |||||||||||||||
H1 | H1SYS3 | P | 100000 | 0 | 0 | 0 | |||||||||||||||||||
P1 | 10000 | P1SYS1 | C | 157000 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
P1 | 80000 | 10000 | P1SYS2 | H | 157000 | Not used | |||||||||||||||||||
P1 | 0 | P1SYS3 | P | 80000 | 0 | 0 | 0 | 0 | |||||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 0 | 0 | 0 | 0 | 0 |
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate After PDM | Profit After PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | 100000 | 0 | 257000 | H1SYS1 | C | Not used | |||||||||||||||||||
H1 | 100000 | 0 | 257000 | H1SYS2 | H | 257000 | 10 | 2112.33 | 15 | 3168.49 | 3168.49 | ||||||||||||||
H1 | 100000 | 0 | 257000 | H1SYS3 | P | 100000 | Not used | ||||||||||||||||||
P1 | 80000 | 10000 | 10000 | P1SYS1 | C | 157000 | 5 | 0 | 15 | 0 | 0 | ||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS2 | H | 157000 | Not used | ||||||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS3 | P | 70000 | 5 | 0 | 15 | 0 | 0 | ||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 5 | 0 | 15 | 0 | 0 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 5 | 0 | 15 | 0 | 0 |
Both ILM and Normal IP product at header account level:
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | H1SYS1 | C | Not used | ||||||||||||||||||||||
H1 | 110000 | 257000 | H1SYS2 | H | 257000 | 10 | 70.41 | 15 | 105.62 | 105.62 | |||||||||||||||
H1 | 0 | H1SYS3 | P | 100000 | 8 | 10 | 2.74 | ||||||||||||||||||
P1 | 10000 | P1SYS1 | C | 157000 | 8 | 0 | 10 | 0 | 2.74 | ||||||||||||||||
P1 | 80000 | 10000 | P1SYS2 | H | 157000 | Not used | |||||||||||||||||||
P1 | 0 | P1SYS3 | P | 80000 | 0 | 0 | 0 | 0 | |||||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 0 | 0 | 0 | 0 | 0 |
Only ILM product at header account level and Normal IP for child account base amount:
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | H1SYS1 | C | Not used | ||||||||||||||||||||||
H1 | 110000 | 257000 | H1SYS2 | H | 257000 | 10 | 70.41 | 15 | 105.62 | 105.62 | |||||||||||||||
H1 | 0 | H1SYS3 | P | 100000 | 8 | 10 | 0 | ||||||||||||||||||
P1 | 10000 | P1SYS1 | C | 157000 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
P1 | 80000 | 10000 | P1SYS2 | H | 157000 | Not used | |||||||||||||||||||
P1 | 0 | P1SYS3 | P | 80000 | 0 | 0 | 0 | 0 | |||||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 4 | 0 | 5 | 0 | 0.68 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 4 | 0 | 3 | 0 | 0.25 |
Both Normal and ILM product at header as well as for child account:
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | H1SYS1 | C | Not used | ||||||||||||||||||||||
H1 | 110000 | 257000 | H1SYS2 | H | 257000 | 10 | 70.41 | 15 | 105.62 | 105.62 | |||||||||||||||
H1 | 0 | H1SYS3 | P | 100000 | 8 | 10 | 2.74 | ||||||||||||||||||
P1 | 10000 | P1SYS1 | C | 157000 | 8 | 0 | 10 | 0 | 2.74 | ||||||||||||||||
P1 | 80000 | 10000 | P1SYS2 | H | 157000 | Not used | |||||||||||||||||||
P1 | 0 | P1SYS3 | P | 80000 | 0 | 0 | 0 | 0 | |||||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 4 | 0 | 5 | 0 | 0.68 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 4 | 0 | 3 | 0 | 0.25 |
Only ILM IC Prodcut attached to the Header and Child account class:
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | 110000 | 0 | 257000 | H1SYS1 | C | Not used | |||||||||||||||||||
H1 | 110000 | 0 | 257000 | H1SYS2 | H | 257000 | 10 | 2112.33 | 15 | 3168.49 | 3168.49 | ||||||||||||||
H1 | 110000 | 0 | 257000 | H1SYS3 | P | 100000 | Not used | ||||||||||||||||||
P1 | 80000 | 10000 | 10000 | P1SYS1 | C | 157000 | 5 | 0 | 15 | 0 | 1935.62 | ||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS2 | H | 157000 | Not used | ||||||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS3 | P | 70000 | 5 | 0 | 15 | 0 | 863.01 | ||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 5 | 0 | 15 | 0 | 616.44 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 5 | 0 | 15 | 0 | 456.16 |
Both Normal IC as well as ILM product attached to the Header and Child account class
Actual Acc | Acc Bal | Base Amt | Bal after Sweep | Sys Acc | Sys Acc Type | Contribution | Pool Balance | Rate before PDM | Profit before PDM | Rate after PDM | Profit after PDM | Profit Liq | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
H1 | 110000 | 0 | 257000 | H1SYS1 | C | Not used | |||||||||||||||||||
H1 | 110000 | 0 | 257000 | H1SYS2 | H | 257000 | 10 | 2112.33 | 15 | 3168.49 | 3168.49+41.10 | ||||||||||||||
H1 | 110000 | 0 | 257000 | H1SYS3 | P | 100000 | Not used | ||||||||||||||||||
P1 | 80000 | 10000 | 10000 | P1SYS1 | C | 157000 | 5 | 0 | 15 | 0 | 0 | ||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS2 | H | 70000 | 157000 | Not used | |||||||||||||||||
P1 | 80000 | 0 | 10000 | P1SYS3 | P | 70000 | 5 | 0 | 15 | 0 | 863.01 +41.10 | ||||||||||||||
C1 | 55000 | 5000 | 5000 | C1SYS1 | C | 50000 | 5 | 0 | 15 | 0 | 616.44 +20.55 | ||||||||||||||
C2 | 40000 | 3000 | 3000 | C2SYS1 | C | 37000 | 5 | 0 | 15 | 0 | 456.16 +12.33 |