Raising Working Capital to Produce and Supply Biodegradable Printed Nylex

Pars Eskan Plastic designs and manufactures various plastic products, including nylon and Nylex, in different colors and sizes. The raw material for these products is primarily polyethylene. The company also imports and purchases equipment, tools, and machinery related to production and procures the required raw materials. In addition to domestic sales, the company's products can also be exported. Based on an assessment of market and customer needs, the investee intends to raise 250.000 million rials in working capital to produce and supply biodegradable printed Nylex, and then sell the manufactured products while maintaining the profit margin estimated in the plan. According to the applicant's statements (as detailed in the attached letter), the operating cycle is estimated at 72 days, equivalent to 5 cycles during the period. It should be noted that the operating cycle in the financial statements is once every 543 days. It is important to note that the stated operating cycle has been declared by the applicant, and the company will be required to maintain at least the declared turnover. Assuming 5 inventory turnover cycles for plastic products, the funds available for production (after deducting financing costs) are estimated at 1,246,800 million rials. According to the applicant's statements, the cost per kilogram of biodegradable printed Nylex is 1,046,032 rials. Accordingly, given the available financial resources, the company's production capacity is estimated at approximately 1,191,933 kilograms, and the total cost is estimated at 1,246,800 million rials.   This project uses a floating funding model and will be considered successful upon raising at least 60 percent of the amount requested by the applicant. Project returns (without guaranteed returns) are 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 returns. The principal has been guaranteed by the applicant. The SEPAM number of the guarantee issued by Bank Sepah is 0177804606905416. It is valid until 1405/07/26 and may be extended at the request of Hesab Yari Amin Melal. Project symbol: Halalska/ Halalska
Project symbol: حلالاسکا/Halalska