1) Project Overview
This is a Mudaraba project, a profit-loss sharing agreement. Under the Mudaraba principle, investors are called Saheb-al-Mal and Agro Next acts as the Mudarib. Investors provide capital, and Agro Next invests effort, expertise, and time.
In this project, investors’ money will be used to buy ducks, feed, pay utility bills, labor costs, Shariah fees, and other expenses. After selling the sheep, net profits will be shared with investors upon successful project closure. There is no early exit option for investors, and investments cannot be returned before project completion.
2) Duration of Investment
The total investment amount will be 20,00,000 TK.
The investment period will last for 4 months.
3) Expected ROI (Return on Investment)
Since this is a Mudaraba project, returns are not fixed. However, expected ROI is expected between 7% to 9% over 4 months. Upon successful project closure, investors will receive a halal dividend.
Profit distribution:
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Investors: 40%
- Agro Next: 60%
4) Investment Part
Minimum investment: 5,000 TK.
Maximum investment: Up to 30% of the project limit.
Halal dividends will be paid after project closure.
5) Loss Sharing
If a loss occurs without negligence or misconduct by Agro Next (Mudarib), losses will first be deducted from available profits. If insufficient, losses will be shared proportionately by investors, who may lose part of their capital. Agro Next will lose its time, effort, and expertise.
6) Service Charge
No service charges will be applied for this project.
7) Contract Conditions
Investors enter into a Mudaraba contract, agreeing on profit-loss sharing. Profits will be distributed after project completion. The invested amount will be returned after successful project closure.
The project may be extended by a few days, with prior notice to investors.
8) Risks and Mitigation Strategies
Disease Outbreaks in Ducks
Risk:
Ducks may suffer from diseases such as duck plague, avian influenza, or parasitic infections, which can lead to reduced productivity or mortality.
Mitigation Strategy:
Theft of Ducks
Risk:
Theft can result in financial loss and disrupt farm operations.
Mitigation Strategy:
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Secure fencing will be installed around duck pens.
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Night lighting, 24/7 security personnel will monitor the premises.
Note: If a loss occurs despite all precautions, Clause 5 will apply.
9) Payment Delay
Agro Next expects to repay investors on time based on an internal analysis. However, the project may be extended for a few days, with prior investor notification.
10) Authorization Letter
Investors must download, fill out, and submit an authorization letter during investment form submission. Failure to submit will result in investment rejection.
11) Security
Agro Next will provide the following to investors:
