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 fishes, feeds, medicine, transport fee, labourer fee, shariah fee and other cost. After certain time those fishes will be sold. After selling the fishes, we will share the net 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.
Project Locations: Lalmonirhat.
2) Duration of Investment
The total investment amount will be 18,00,000 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 10% and 12% over 5 months.
After successful project closure, the investor will receive a halal dividend and the capital will be returned to the investors (Rabb-ul-Mal).
Profit distribution:
- Investors: 55%
- Agro Next: 45%
4) Investment Part
The minimum investment is 5,000 TK, but investors can invest up to 30% of the project limit.
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 is no service charge for this project.
7)Contract Conditions
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All investors must enter into a formal Mudaraba contract, governed by profit-and-loss sharing terms.
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Net Profits will be distributed upon successful completion of the project.
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Principal investment will be returned within next 7 working days upon successful project closure.
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If an extension is required, investors will be notified in advance.
8) Risk Factor
Risk Factors and Mitigation Measures:
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Fish Mortality Due to Disease:
Fishes are susceptible to various diseases, which can lead to significant losses if not properly managed. To mitigate this risk, we ensure timely medical care, maintain optimal water quality, and follow best practices for fish health management. Regular monitoring and prompt treatment are part of our standard protocol.
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Risk of Theft:
Fish theft is a potential threat in open pond environments. To address this, we have implemented a comprehensive security system that includes protective netting around the pond and designated security personnel to safeguard the area around the clock.
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. If we will face any trouble, we will inform the investor's to extend for some days.
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)
