1) 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 fish fries, after certain time these fishes will be sold. After selling the fish, we will share the profits with the investors. 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 - 800,000.
This investment will be for 4 Months.
3) Projected ROI(Return of Investment)
As you know this is a Mudaraba project so the return on investment is not fixed. But the projection ROI will be 6%-9%. After 4 months, the investor will receive a halal dividend. (excluding service charges).
Profit distribution:
- Farmers: 50%
- Investors: 37.5%
- Agro Next: 12.5%
4) Investment Part
The minimum investment is 5,000 taka, or the investors can invest up to the project limit.
5) Loss Sharing
According to the Mudaraba Principle, if any loss occurs, the investors will bear 100% of the loss. Investors will lose their invested money, Agro Next and farmers will lose their effort, time, and expertise.
6) Service Charge
"Agro Next" will apply a 12.5% service charge on whole profits. It should be noted that all of the mentioned ROI above are provided after excluding this service charge.
7) Contract Conditions
- Investors will enter into a Mudaraba contract, which is a profit-loss sharing agreement.
- The profit will be distributed to the investors at the end of 4 months.
- Agro Next will return the invested amount after successful project closure.
- This project may be extended for a few days. It will be notified to investors.
8) Risk Factors and Solutions
1. Floods: Flash floods are likely to wash away the fish in our project ponds.
Action: Our project is far away from the flood area and there is not much chance of flooding. But if God wills, it can happen. That is why we have enough netting in our ponds to prevent the fish from getting out of the pond.
2. Stealing: Stealing will reduce the number of fish and the project will face loss.
Action: To protect all the ponds in the project
there are people for also our farmers take care. Starting from netting around the ponds, netting is also done above the ponds to prevent theft.
3. Diseases: Fish can be affected by various diseases and may die.
Action: To maintain the environment of the ponds, we change water regularly. Ponds are regularly monitored along with consultation of fisheries officers and medicines are kept in advance.
4. Not getting the price of fish: There is a possibility of loss if the fish is not getting a fair price.
Action: Since our project farmers have been farming fish for a long time and know where and when to sell fish to get good prices, the chances of getting fair prices are high.
9) Payment Delay
"Agro Next" has conducted an in-house analysis of the projected returns of the business and expects to be able to repay on time, barring any unforeseen risk factors.
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
- Contract Deed (300 tk Stamp)
