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MIRA
INFORM REPORT
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Report Date : |
27.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
IRBID DISTRICT ELECTRICITY COMPANY LTD (IDECO) |
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Registered Office : |
Baghdad Street,
PO Box 46, Irbid 21110 |
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Country : |
Jordan |
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Financials (as on) : |
2006 |
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Date of Incorporation : |
1957 |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Distribution of electric power |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : IRBID DISTRICT ELECTRICITY COMPANY LTD (IDECO)
Country of Origin : Jordan
Legal Form : Public Shareholding Company
Registration Date : 1957
Issued Capital : JD 4,000,000
Paid up Capital : JD 4,000,000
Total Workforce : 1,000
Activities : Distribution of electric power
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Recommended Credit Limit : US$ 1,500,000
COMPANY NAM
IRBID DISTRICT ELECTRICITY COMPANY LTD
(IDECO)
ADDRESS
Registered & Physical Address
Location : Baghdad Street
PO Box : 46
Town : Irbid 21110
Country : Jordan
Telephone : (962-2) 7243692 / 7201500
Facsimile : (962-2) 7245495
Email : ideco@go.com.jo
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Irbid.
KEY PRINCIPALS
Name Position
·
Abdul Razaq
Bani Hani Managing
Director
·
Badri Bashaba Director
·
Ghalb Al Hayek Director
·
Samih Ojelat Director
·
Kamal Hamam Director
·
Ahmed Hiasat Director
·
Hussain Kasem Director
·
Mohamed
Fraihat Director
·
Na’el Khanfar Director
·
Waleed Al
Atoum Director
·
Sleman Khrais Director
·
Khaled Said Director
·
Jameel Al
Momani Director
·
Abdul Raouf
Sheikh General
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1957
Legal Form :
Public Shareholding Company
Issued Capital : JD 4,000,000
Paid up Capital : JD 4,000,000
Name of Shareholder (s) Percentage
·
National
Electric Power Co Ltd (NEPCO) 55.45%
Industrial Area
PO Box: 2310
Amman
Tel: (962-6) 4815615 / 4817615
Fax: (962-6) 4818336
·
Various
Jordanian municipalities and councils 26.57%
·
Yarmouk
University Savings Fund 3.41%
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Private
investors and members of the general public 14.57%
AFFILIATED COMPANIES
·
Jordan
Electric Power Co Ltd
Industrial Area
PO Box 618
Amman
Tel: (962-6) 636381 / 614381
Fax: (962-6) 648467
OPERATIONS
Activities: Ideco is responsible for the distribution
of electric power in the Irbid region and has a 50 year concession agreement that expires in 2011.
In 2004 subject had
236,741 consumers.
Import
Countries: United States of
America, United Kingdom, Germany, and Japan
Subject has a workforce
of approximately 1,000 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Jordanian
Dinars (JD)
Balance Sheet
|
Assets |
2006 |
2005 |
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Cash on Hand & at Banks |
613,127 |
15,483 |
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Account Receivables, Net |
12,023,613 |
12,606,760 |
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Notes Receivable |
0 |
0 |
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Post Dated Cheques |
0 |
0 |
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Short Term Investments |
286,719 |
314,378 |
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Inventory |
5,287,212 |
3,709,456 |
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Spare Parts |
0 |
0 |
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Total Current Assets |
18,291,320 |
16,700,987 |
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Long Term Investments |
0 |
0 |
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Fixed Assets, Net |
63,806,767 |
60,648,229 |
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Lands |
0 |
0 |
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Projects in Progress |
822,855 |
1,008,909 |
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Total Fixed Assets |
64,629,622 |
61,657,138 |
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Other Assets |
0 |
0 |
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Total Assets |
82,920,942 |
78,358,125 |
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Liabilities
& Owners Equity |
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Liabilities
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Accounts and Notes Payable |
15,606,739 |
15,086,185 |
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Credit Banks |
0 |
1,427,307 |
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Short Term Loans |
1,184,156 |
1,162,318 |
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Accrued Part of Long Term Loans |
8,134 |
9,999 |
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Total Current Liabilities |
17,980,094 |
18,622,723 |
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Long Term Loans & Notes Payable |
1,776,256 |
2,903,665 |
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Corporate Bonds |
0 |
0 |
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Other Liabilities |
56,410,598 |
50,538,066 |
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Total Liabilities |
76,166,948 |
72,064,454 |
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Shareholders Equity
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Authorized Capital |
4,000,000 |
4,000,000 |
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Subscribed Capital |
4,000,000 |
4,000,000 |
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Paid-in Capital |
4,000,000 |
4,000,000 |
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Compulsory Reserves |
2,010,187 |
1,891,807 |
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Voluntary Reserve |
238,624 |
1,864 |
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Other Reserves |
0 |
0 |
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Issuance Premium |
0 |
0 |
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Issuance Discount |
0 |
0 |
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Treasury Stocks |
0 |
0 |
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Proposed Cash Dividends |
480,000 |
400,000 |
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Proposed Stock Dividends |
0 |
0 |
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Accumulated Change in Fair Value |
0 |
0 |
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Retained Earnings |
25,183 |
0 |
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Total Shareholders Equity |
6,753,994 |
6,293,671 |
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Minority Interest |
0 |
0 |
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Total Liabilities & Shareholders
Equity |
82,920,942 |
78,358,125 |
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Income Statement
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2006 |
2005 |
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Operating Revenues |
60,966,583 |
54,714,353 |
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Operating Expenses |
51,455,351 |
47,455,122 |
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Gross Profit |
9,511,232 |
7,259,231 |
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General and Administrative Expenses |
7,980,168 |
6,309,845 |
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Selling and Distribution Expenses |
0 |
0 |
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Depreciation (period) |
1,849,824 |
2,014,160 |
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Other Operating Expenses |
0 |
0 |
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Net Operating Income |
1,531,064 |
949,386 |
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Other Revenues |
166,579 |
248,825 |
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Other Expenses |
0 |
0 |
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Income Before Interest & Tax |
1,697,643 |
1,198,211 |
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Interest Expenses |
513,844 |
563,399 |
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Net Income before Tax |
1,183,799 |
634,812 |
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Income Tax (Period) |
240,000 |
110,191 |
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Income Tax ( Previous Years) |
0 |
0 |
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Universities and Research Train Fees |
28,476 |
16,696 |
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Board of Directors Remuneration |
55,000 |
44,444 |
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Net Income |
860,323 |
463,481 |
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Minority Interest |
0 |
0 |
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Net Income Pertains to Shareholders |
860,323 |
463,481 |
Local sources
consider subject’s financial condition to be Fair.
Please note that the
above financial figures are the latest available.
BANKERS
·
Housing Bank
for Trading & Finance
Parliament Street
PO Box 7693
Amman
Tel: (962-6) 5667126
·
Jordan
National Bank
PO Box 1578
Amman
Tel: (962-6) 4612391
PAYMENT HISTORY
No complaints regarding
subject’s payments have been reported.
Date of
transaction August
2005
Credit amount 200,000
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
GENERAL COMMENTS
Irbid District
Electricity Company Ltd (Ideco) is responsible for the distribution of electric
power in the Irbid region and has a 50 year concession agreement that expires
in 2011. It is responsible for 9 percent of the power market.
During the course of
this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.73 |
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UK Pound |
1 |
Rs.8031 |
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Euro |
1 |
Rs.64.61 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)