Financing Part of the Working Capital for Purchasing Raw Materials to Produce Polyester Yarn

Accordingly, Zarbaf Yazd Spinning and Weaving intends to use crowdfunding through the Halal Fund platform to raise 49,500 million rials to finance part of its working capital for purchasing the raw materials (textile-grade PET chips) required to produce polyester yarn (POY). Any other expenses required to advance this project will be borne by the applicant. According to the applicant, the project's operating cycle, from ordering textile-grade PET to production and sale, is 30 days. Therefore, given the project's implementation period, production and sales will take place over 12 periods of 1 month each. According to the applicant's statements and the purchase invoice for the aforementioned material from the Commodity Exchange, the raw material cost per kilogram of product, including the purchase of textile-grade PET, is approximately 550،000 rials. Total costs are projected at 49,500 million rials for producing 90 tonnes of polyester yarn over 1 month, and  594,000  million rials for producing 1,080 tonnes of product over the project period. It should be noted that the applicant has not yet produced the aforementioned product and, according to the applicant, the machinery required to produce it has been purchased. Furthermore, according to the applicant, projected sales for 1 month are based on a price of 780,000 rials per unit of finished product. Sales of 90 tonnes of polyester yarn over 1 month are estimated at 70,200 million rials, and total sales of 1,080 tonnes of product over the project's 12-month period are estimated at 842,400 million rials. It should be noted that, according to the applicant, the polyester yarn (POY) will be used in manufacturing the company's own products and sold to other buyers. Therefore, the profit defined for this project will consist of sales of the project's intended product, less the costs associated with crowdfunding and purchasing the raw material for that product under the project. Accordingly, Zarbaf Yazd Spinning and Weaving is projected to generate 246,200 million rials in profit from its production and sales plan (taking crowdfunding costs into account). Investors' share of the estimated profit is 7.2 percent, and the project's profit margin is estimated at 29 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. This project  uses a flexible funding model and will be considered successful upon raising at least half of the amount  requested by the applicant. The principal is secured by a payment undertaking guarantee issued by the Machinery Industry Development Fund under Sepas number 1184814021174721, valid until 1403/10/13. An image of the guarantee and its verification are provided below. Link to the Vice Presidency for Science's system for verifying the authenticity and validity of the guarantee: https://khedmat.isti.ir/checksepas   The contract and project evaluation file can be accessed via the link below .  Verification of the project's authenticity in the Iran Fara Bourse system is available via the link below.  Project symbol: Halalzbaf/  halalbaf  
Project symbol: حلالزباف/halalbaf