Mal nami

Definition of "Mal nami"

Relating to law of zakah, refers to capital that is growing or has the potential to grow. Zakah is payable on mal nami. It is represented by net assets that have been owned for one lunar year for the purpose of profit as decreased by the related obligation (free of debt) measured by the net realizable value or the replacement cost method. It is calculated as follows. New working capital ( ) short-term debts used to: (i) finance fixed assets; (ii) pay off long-term debt; or (iii) reduce capital stock; minus ( ) long-term debts used to finance short-term assets (trade assets).