Working Capital Financing for the Purchase and Sale of Food Products

The company's main activity is purchasing food products from manufacturers and suppliers and selling them to its customers in Mazandaran Province. The funding recipient intends to assess market and customer needs and purchase food products worth 250,000 million rials, then sell the purchased products while maintaining the profit margin estimated in the project. According to the applicant's statements (as detailed in the attached letter), operating turnover for the project is estimated at 24 times per year. It should be noted that operating turnover in the financial statements is 7 times per year, and the company is required to maintain the stated minimum turnover. Also, according to the applicant's statements, the average and profit margin are estimated at approximately 8.5 percent. It should be noted that the company is required to maintain the project's profit margin. Total revenue generated by the project, taking operating turnover into account, is projected at 6,476,589 million rials. It should be noted that, according to the latest financial statements submitted, more than 72 percent of operating revenue came from food sales, while approximately the remaining 28 percent came from sales of hygiene products and detergents, paper-based products, household appliances, restaurant operations, stationery, tools and hardware, etc. Eligible project expenses comprise product purchase costs and the fees payable to the crowdfunding agent and Iran Fara Bourse. It should be noted that all other costs associated with implementing this project are borne by the applicant. Also, given the requirement for a formal audit of this project, it is necessary to note that all costs associated with this audit are borne by the applicant. Based on the applicant's statements, operating turnover of 24 times per year, and a profit margin of 8.5 percent, project costs over 12 months are projected at 5,923,200 million rials. The profit defined for this project is the difference between product sales revenue and the purchase costs of the products covered by the project and crowdfunding-related expenses. Project profit after deducting eligible expenses is estimated at 550,189 million rials. 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 profit (without a profit guarantee) is expected to be paid starting at the end of the third month and every 3 months thereafter; the principal will also be repaid at the end of the twelfth month together with the corresponding profit. The principal is guaranteed by the applicant. The Sepam number of the guarantee issued by Bank Melli is 0949604689744623 and it is valid until 1405/05/13 and may be extended at the request of Hesab Yari Amin Melal Company. Project symbol: Halalmotahar/ Halalmth
Project symbol: حلالمطهر/Halalmth