Working Capital Financing for Importing and Distributing Frik-Brand Power Tools

The Frik brand, owned by Hashti Afarinan Sepehr, began operating in the industrial and household tools sector in 1400 as the Frik Tool Gallery in Yazd. Hashti Afarinan Sepehr intends to raise 200،000 million rials through crowdfunding on the Halal Fund platform to provide working capital for importing and distributing Frik-brand power tools. Of these funds, 196,800 million rials will be spent on purchasing, importing, and distributing Frik-brand power tools. Based on the applicant's statements and letter No. 121-404 dated 17/03/1404 (as attached), the project's turnover cycle has been set at 3 months (4 times per year). Accordingly, the cost of purchasing, importing, and distributing Frik-brand power tools over a 12-month period will amount to 787,200 million rials. It should be noted that, according to the audited financial statements for the year ended 1402, the company's operating cycle was 150 days (2.4 months). The applicant is required to maintain the turnover cycle stated in this project. According to the applicant's statements and letter No. 121-404 dated 17/03/1404 (as attached), the gross profit margin on sales of the aforementioned products is 15 percent. It should be noted that, based on the audited financial statements for the years ended 1401 and 1402, the company's gross profit margin was approximately 7 percent. The applicant is required to maintain the minimum profit margin declared in this project. This is a flexible-funding project and will be considered successful if at least 60 percent of the amount sought by the applicant is raised. Project profits (without guaranteed profit) are expected to be paid every 3 months, starting at the end of the third month; the principal will also be paid at the end of the twelfth month together with the corresponding profit. The principal has been guaranteed by the applicant. The SEPAM number of the letter of guarantee issued by Bank Tejarat is 2073004607324237 and it is valid until 1405/04/07 and may be extended at the request of Hesab Yari Amin Melal Company.  Project symbol: HalalFrik/ HalalFri
Project symbol: حلالفریک/HalalFri