Working Capital Financing for the Purchase and Sale of Auto Parts

Sharif Khodro Arman was established in 1400. According to the applicant's statements, the company's main sales center is located in the auto parts market, covering more than 600 square meters and serving as a store, showroom, administrative office, and warehouse. The company's second sales branch is also operating in the Masoumi Shopping Arcade on Ekbatan Street. The company's sales policy is based on an extensive distribution network, which prevents market downturns and fluctuations from significantly affecting sales volume. Sharif Khodro Arman intends to take steps toward developing its supply chain from manufacturers and providing better services to consumers by focusing on strengthening its distribution network, further expanding into towns and cities throughout Iran, and developing its retail and wholesale branches. The company purchases auto parts in bulk from Iranian manufacturers and sells them. According to the audited financial statements for 1401, Mahyar Part Diesel, Meshkat Azin Sanat, Yadak Bar, Respina, ISACO, and Zharf Andish were customers of Sharif Khodro. Sharif Khodro Arman intends to raise 110،000 million rials through crowdfunding on the Halal Fund platform to provide working capital for purchasing automotive spare parts. According to the applicant's statements, parts are mostly sold on credit. Taking into account the receivables collection period in the audited financial statements and the project's estimated 12-month duration, a 3-month turnover cycle has been projected. The cost of procuring auto parts in each turnover cycle is estimated at 110،000 million rials. Given the project's three-month turnover cycle, the cost of purchasing parts over the 12-month period is estimated at 440,000 million rials. The parts covered by this project mainly include alternators and starter motors. It should be noted that the applicant may also sell other products while maintaining the project's estimated profit and turnover cycle. According to the applicant's statements, an average markup of 12% is applied to each sale of the aforementioned products. Accordingly, the project's revenue in each turnover cycle is estimated at 123,200 million rials, and total revenue over the project's 12-month period is projected at 492,800 million rials. It should be noted that the company's gross profit margin in the audited financial statements for the fiscal period ending in Esfand 1401 was 3.5 percent. It should be noted that the project's eligible expenses include only the cost of purchasing auto parts and the crowdfunding fee. Other expenses associated with implementing the project's objectives will be borne by the applicant. It should also be noted that, given the requirement for a formal audit of the project, the costs of carrying this out will be borne by the applicant.  Accordingly, profit as defined in this project is the difference between revenue from sales of the project's products and the cost of purchasing the products plus the crowdfunding fee. The project's profit after deducting eligible project expenses is projected at 49,600 million rials. The project's profit margin is therefore estimated at approximately 10 percent. Taking into account the investors' 71 percent share of the project's profit, the monthly internal rate of return is projected at 2.67 percent, and the investors' return over the project's twelve-month period is projected at 32 percent. It should be noted that this profit margin has been estimated solely on the basis of the applicant's statements, and the platform bears no responsibility in this regard. Investors will have priority over the investee in profit distributions. In other words, if, for any reason, the sales volume specified in the project falls below the projected level, the investee is required to pay the investors' projected profit from its own share of the profit. Given that the company sells various auto parts according to market demand, it may sell other products while maintaining the minimum profit margin  estimated in the project. Furthermore, in view of future capital-raising plans, it is necessary to note that the applicant undertakes to prioritize fulfilling its obligations to this project's investors (payment of principal and realized profit) over paying installments on current bank facilities and any other facilities received in the future. Accordingly, the investee is required to manage its cash flows so that it can fulfill its obligations to the investors in this project in accordance with the provisions set out in the project.   This project  has a flexible funding model and will be considered successful upon raising at least half of the amount  sought by the applicant. The project is backed by a guarantee issued by the Sepehr Research and Technology Fund with SEPAS number 1114814020965088 , valid until 1403/09/30 and renewable at the request of Hesab Yari Amin Melal.   Link to the Vice Presidency for Science's portal for verifying the authenticity and validity of the guarantee: https://khedmat.isti.ir/checksepas   The contract and project evaluation file is available through the link below .   End-of-Period Audit Report  Verification of the project's authenticity on the Iran Fara Bourse portal is available through the link below.  Project symbol: Halalsharif/   halalska   Link to the Iran Fara Bourse portal: https://cf.ifb.ir/home/ViewProject 
Project symbol: حلالشریف/halalska