Cattle Ranch - 2
1) As this is a Murabaha contract (buying, nurturing, and then selling), there is no opportunity for investors to exit in emergencies. We will purchase the cattle, nurture them until they grow, and then sell them. Therefore, we cannot return your investment before the project's closure.
2) Duration of Investment
The total investment amount will be - 1,92,05,000
This investment will be for 12 Months.
3) Projected ROI(Return of Investment)
The return on investment (ROI) will be 38% annually. In twelve (12) months, the investor will receive a halal dividend of 38% (excluding service charges).
4) Investment Part
Here, the minimum investment would be 20,000 TK, or investors can invest up to the project limit. Halal dividends will be disbursed every year.
For example, if someone invests 100,000 TK (one lakh taka), they will receive 138,000 TK, excluding service charges (100,000 TK as the investment part and 38,000 TK as the profit part in a year).
5) Loss Sharing
Growup is a Shariah-compliant project, and according to the Murabaha principle, investors bear no responsibility for any business losses after handing over the liability regarding the cattle's nurturing and growth for sale to the merchant. Therefore, there will be no loss sharing from the business after transferring the cattle to the merchant.
6) Service Charge
Grow Up will apply a 5% service charge on investors' profit. It should be noted that all of the mentioned ROI above are provided after excluding this service charge.
7) Contract Conditions
The investor will enter into a Murabaha Agreement with Grow Up for the cattle ranch Project. It will involve a process of "purchasing the cattle, nurturing and raising them, and then selling them out," whereby investors will initially invest in buying cattle through Grow Up and ensure their nurturing and raising for sale through the same entity. Grow Up will act as an agent for the investors, purchasing the cattle, assuming necessary ownership and asset possession risks on their behalf, and subsequently selling them to their enlisted merchant on behalf of the investors.
8) Risk Factor
According to our calculations, although there is a 5% risk factor, Grow Up's Purchase Experts, nurturing and raising team, and excellent marketing team are equipped to manage these risks as previously outlined. Furthermore, in response to investor requests, we also offer an insurance policy as an additional assurance measure.
9) Payment Delay
Grow Up has conducted an in-house analysis of the projected returns of the business and expects to be able to repay on time, barring any unforeseen risk factors.
10) Security
Grow Up provides the following documents to investors:
- Contract Deed (300 tk Stamp)
- Security cheque
- Money Receipt
- Guarantor
- Copy of Authorized deed
- Insurance