MIRA INFORM REPORT

Report Date :

16.02.2011

IDENTIFICATION DETAILS

Correct Name :	AL HAYAT PHARMACEUTICAL INDUSTRIES CO LTD (HPI)

Registered Office :	Sayegh Complex, Abdali, P O Box 1564, Amman 11118

Country :	Jordan

Financials (as on) :	31.12.2009

Date of Incorporation :	June 1994

Com. Reg. No.:	371, Amman

Legal Form :	Limited Liability Company

Line of Business :	Manufacturer of human drugs, vitamins/hormones, and antibiotics

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 600,000

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Jordan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUMMARY

Company Name : AL HAYAT PHARMACEUTICAL INDUSTRIES CO LTD (HPI)

Country of Origin : Jordan

Legal Form : Limited Liability Company

Registration Date : June 1994

Commercial Registration Number : 371, Amman

Chamber Membership Number : 7650

Issued Capital : JD 10,000,000

Paid up Capital : JD 10,000,000

Total Workforce : 180

Activities : Manufacture of human drugs, vitamins/hormones, and antibiotics

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 600,000

Person Interviewed : Jafaar Rababa, Production Manager

COMPANY NAME

AL HAYAT PHARMACEUTICAL INDUSTRIES CO LTD (HPI)

company ADDRESS

Registered & Physical Address

Building : Sayegh Complex

Area : Abdali

PO Box : 1564

Town : Amman 11118

Country : Jordan

Telephone : (962-6) 4162607 / 4634111

Facsimile : (962-6) 4163016

Email : hpi@hayatpharma.com / hpi@nol.com.jo

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Amman.

Branch Office (s)

Location Description

· Nile Street Owned factory premises covering an area

Al Raqeeb of 2,350 square metres

Amman

Tel: (962-6) 5678125

KEY PRINCIPALS

Name Position

· Maher Mohamed El Kurdi Managing Director

· Samer Mohamed Al Kurdi Director

· Mohamed Ali El Kurdi Director

· Mowafaq A. Ismail Director

· Shawqi Gannam Director

· Yaser Mohamed El Kurdi Director

· Ibrahim Al Abdala Director

· Ahmed Al Majalawi Director

· Fouad Baradi Director

· Tawfiq Yassen General Manager

· Munzer Hashem Purchasing Manager

· Jafaar Rababa Production Manager

· Wasef Daoud Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : June 1994 (Production began in 1996)

Legal Form : Limited Liability Company

Commercial Reg. No. : 371, Amman

Chamber Member No. : 7650

Issued Capital : JD 10,000,000

Paid up Capital : JD 10,000,000

Name of Shareholder (s)

· Maher Mohamed El Kurdi

· Samer Mohamed Al Kurdi

· Mohamed Ali El Kurdi

· Mowafaq A. Ismail

· Shawqi Gannam

· Yaser Mohamed El Kurdi

· Ibrahim Al Abdala

· Ahmed Al Majalawi

· Fouad Baradi

AFFILIATED COMPANIES

· Kurdi Drug Store

PO Box: 984

Amman 11118

Tel: (962-6) 4634111

Fax: (962-6) 4645663

OPERATIONS

Activities: Engaged in the manufacture of human drugs, vitamins/hormones, and antibiotics.

The plant facilities include three production lines covering three categories. These include solid dosage forms such as tablets, capsules and dry suspensions; semi-solid dosage forms such as creams, ointments, suppositories and gels; and liquid dosage forms such as syrups, nasal and ear-drops and other solutions.

Production Capacity:

Tablets 60 million

Capsules 30 million

Dry Suspension 250,000

Suppositories 5 million

Syrups and Solutions 2.5 million

Creams and Ointments 3 million

Import Countries: Germany, France, Belgium and the Far East

Operating Trend: Steady

Subject has a workforce of 180 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Jordanian Dinars (JD)

Balance Sheet 31/12/09 31/12/08 31/12/07

Assets


Cash on Hand & at Banks	675,502	958,284	2,064,284
Accounts Receivable	3,408,149	3,491,923	3,661,979
Notes Receivable	0	0	0
Post Dated Cheques	939,753	701,309	0
Short Term Investments	0	0	0
Inventory	1,035,169	987,084	740,070
Spare Parts	156,944	119,349	80,228
Total Current Assets	6,358,331	6,339,700	6,823,962
Long Term Investments	0	0	0
Fixed Assets	5,956,831	6,045,356	6,143,920
Lands	0	0	0
Projects in Progress	0	0	0
Total Fixed Assets	5,956,831	6,045,356	6,143,920
Other Assets	196,879	124,774	34,000
Total Assets	12,512,041	12,509,830	13,001,882

Liabilities & Shareholders’ Equity

Liabilities


Accounts and Notes Payable	593,640	657,962	566,776
Credit Banks	393,069	692,103	667,060
Short Term Loans	0	0	0
Accrued Part of Long Term Loans	0	146,458	220,176
Total Current Liabilities	1,308,394	1,807,635	1,744,485
Long Term Loans & Notes Payable	0	0	122,982
Corporate Bonds	0	0	0
Other Liabilities	0	0	0
Total Liabilities	1,308,394	1,807,635	1,867,467

Shareholders’ Equity


Authorized Capital	9,500,000	9,500,000	9,500,000
Subscribed Capital	9,500,000	9,500,000	9,500,000
Paid in Capital	9,500,000	9,500,000	9,500,000
Compulsory Reserves	270,062	204,973	176,346
Voluntary Reserve	44,184	44,184	44,184
Other Reserves	0	0	0
Issuance Premium	0	0	0
Issuance Discount	0	0	0
Treasury Stocks	0	0	0
Proposed Cash Dividends	0	0	665,000
Proposed Stock Dividends	0	0	0
Accumulated Change in Fair Value	0	0	0
Retained Earnings	1,389,401	953,038	748,885
Total Shareholders’ Equity	11,203,647	10,702,195	11,134,415
Minority Interest	0	0	0
Total Liabilities & Shareholders’ Equity	12,512,041	12,509,830	13,001,882

Income Statement

Operating Revenues	4,744,145	4,376,884	3,801,910
Operating Expenses	1,380,053	1,273,626	1,098,583
Gross Profit	3,364,092	3,103,258	2,703,327
General and Administrative Expenses	630,246	636,288	461,477
Selling and Distribution Expenses	1,891,285	1,912,036	1,240,046
Depreciation (Period)	275,202	263,883	242,178
Other Operating Expenses	193,262	209,457	169,455
Net Operating Income	649,299	345,477	832,349
Other Revenues	57,890	55,976	84,433
Other Expenses	0	0	0
Income Before Interest & Tax	707,189	401,453	916,782
Interest Expenses	56,302	115,187	114,618
Net Income Before Tax	650,887	286,266	802,164
Income Tax (Period)	96,384	10,718	53,749
Income Tax (Previous Years)	0	0	0
Universities and Research Train Fees	53,051	7,768	22,154
Board of Directors Remuneration	0	35,000	35,000
Net Income	501,452	232,780	691,261
Minority Interest	0	0	0
Net Income Pertains to Shareholders	501,452	232,780	691,261

Local sources consider subject’s financial condition to be Fair.

BANKERS

· Jordan National Bank

PO Box: 1578

Amman

Tel: (962-6) 4612391

· Arab Bank Plc

Abdali Branch

PO Box: 926607

Amman

Tel: (962-6) 5627271

Fax: (962-6) 5649305

· Cairo Amman Bank

Shabsough Street

PO Box: 715

Amman

Tel: (962-6) 5639321 / 5623100 / 5623109

Fax: (962-6) 5639328

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction February 2005

Credit amount 9,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency Pounds Sterling

GENERAL COMMENTS

Al Hayat Pharmaceutical Industries Co Ltd (HPI) has been in business for over 15 years and is engaged in the manufacture of human drugs, vitamins/hormones, and antibiotics.

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.45.50
UK Pound	1	Rs.73.07
Euro	1	Rs.61.63

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
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
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
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
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
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

SUMMARY

COMPANY NAME

company ADDRESS

Registered & Physical Address

Premises

KEY PRINCIPALS

LEGAL FORM & OWNERS

Name of Shareholder (s)

AFFILIATED COMPANIES

OPERATIONS

FINANCIAL DATA

BANKERS

PAYMENT HISTORY

Date of transaction February 2005

GENERAL COMMENTS

Unit