1) Project Overview
This is a Mudaraba project, which is a profit-loss sharing agreement. In the Mudaraba principle, the investors are termed as Saheb-al-Mal and Agro Next as the Mudarib. Investors will invest their money, and Agro Next will invest effort, expertise, and time. In this project, investors' money will be used to buy cows, cattle feed, utility bill, labour cost, shariah fee and other cost are included . After selling the cows, we will share the net profit with the investors after successful project closure. There will be no opportunity for investors to exit in case of emergencies. We cannot return your investment before the project closure.
2) Duration of Investment
The total investment amount will be 30,00,000 TK.
This investment will last for 5 months.
3) Projected ROI (Return on Investment)
As this is a Mudaraba project, the return on investment is not fixed. However, the projected ROI will be between 9% and 11% over 5 months. After successful project closure, the investor will receive a halal dividend.
Profit distribution:
Investors: 37.5%
Agro Next: 62.5%
4) Investment Part
The minimum investment is 5,000 TK, but investors can invest up to 30% of the project limit. Halal dividends will be disbursed ]after project closure.
5) Loss Sharing
In Mudarabah-based investments, if a loss occurs without any negligence or misconduct from the Mudarib, then according to Shariah, the loss will first be covered from any available profit, and if the profit is insufficient, the investors will bear the loss proportionately to their investment, potentially losing part of their capital, while the Mudarib will lose their effort, time, and expertise.
6) Service Charge
There are no service charge for this project.
7) Contract Conditions
Investors will enter into a Mudaraba contract, which is a profit-loss sharing agreement. The profit will be distributed at the end of the project to the investors. Agro Next will return the invested amount after the successful completion of the project. This project may be extended for a few additional days, and investors will be notified in advance.
8) Risks and Mitigation Strategies
a) Disease Outbreaks
Cattle are susceptible to diseases such as Lumpy Skin Disease, Foot-and-Mouth Disease, etc., which may affect their health or cause death.
Mitigation Strategy:
Timely vaccinations will be administered under the supervision of veterinary professionals. If any symptoms are detected, experienced veterinarians will be immediately consulted for diagnosis and treatment.
b) Theft
Cattle theft presents a significant financial risk.
Mitigation Strategy:
All cattle sheds will be secured with dedicated security personnel, ensuring 24/7 monitoring and protection of the premises.
Note: "If a loss occurs despite all necessary precautions being taken by Agro Next, Clause No. 5 shall apply."
9) Payment Delay
Agro Next has conducted an in-house analysis of the projected returns for this business and expects to repay on time. This project may be extended for a few additional days, and investors will be notified in advance.
10) Authorization Letter
During the investment form submission, investors must download, fill out, and submit the authorization letter. If this is not done, Agro Next will reject the investment.
11) Security
Agro Next provides the following documents to investors:
Money Receipt from Agro Next
Contract Deed between the Investor and Agro Next (with a 300 TK stamp)
