MIRA INFORM REPORT

Report Date :

29.09.2011

IDENTIFICATION DETAILS

Name :	DAR AL DAWA DEVELOPMENT & INVESTMENT CO LTD

Registered Office :	Al Nour Complex, Wadi Saqra Street, Al Rabia Area, P O Box 9364, Amman 11191

Country :	Jordan

Financials (as on) :	2009

Date of Incorporation :	17.08.1975

Com. Reg. No.:	94, Amman

Legal Form :	Public Shareholding Company

Line of Business :	Manufacture and marketing of pharmaceuticals and drugs

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	US$ 1,000,000

Status :	Good

Payment Behaviour :	Usually Correct

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Jordan

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

SUMMARY

Company Name : DAR AL DAWA DEVELOPMENT & INVESTMENT CO LTD

Doing Business As : DAR AL DAWA

Country of Origin : Jordan

Legal Form : Public Shareholding Company

Registration Date : 17^th August 1975

Commercial Registration Number : 94, Amman

Membership Number : 2180

National ID Number : 200003734

Issued Capital : JD 20,000,000

Paid up Capital : JD 20,000,000

Total Workforce : 725

Activities : Manufacture and marketing of pharmaceuticals and drugs.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 1,000,000

Person Interviewed : Faryal Owais, Administration Executive

COMPANY NAME

DAR AL DAWA DEVELOPMENT & INVESTMENT CO LTD

DOING BUSINESS AS

DAR AL DAWA

company ADDRESS

Registered & Physical Address

Building : Al Nour Complex

Street : Wadi Saqra Street

Area : Al Rabia Area

PO Box : 9364

Town : Amman 11191

Country : Jordan

Telephone : (962-6) 5539175 / 5727132 / 5539176 / 5539414 / 5539415

Facsimile : (962-6) 5601568 / 5727776 / 5533199

Email : dad@mail.go.com.jo / admin.dad@dadgroup.com

Premises

Subject operates from a large suite of offices that are owned and located in the Suburban Business Area of Amman.

Branch Office (s)

Location Description

· Nawar Area Owned factory premises

Amman 11191

Tel: (962-6) 5727132

Fax: (962-6) 5727776

KEY PRINCIPALS

Name Position

· Abdulrahim Nizar Abdulrahim Jardanah Chairman

· Dr Iyad Ali Al Hindawi Vice Chairman

· Munzer Al Nabulsi Director

· Duraid Abdullatif Jarrab Director

· Akram Abdullatif Hassan Jarrab Director

· Osama Yaish Director

· Ramzi Al Salefti Director

· Lina Nizar Abdulrahim Jardanah Director

· Zina Nizar Abdulrahim Jardanah Director

· Fahmi Azzouqa Director

· Nuqula Dakour Sales Manager

· Zayad Akaraba Finance Manager

· Hani Bushnaq Assistant Finance Manager

· Faryal Owais Administration Executive

LEGAL FORM & OWNERS

Date of Establishment : 17^th August 1975

Legal Form : Public Shareholding Company

Commercial Reg. No. : 94, Amman

Membership No. : 2180

National ID No. : 200003734

Issued Capital : JD 20,000,000

Paid up Capital : JD 20,000,000

Name of Shareholder (s) Percentage (%)

· Arabian Social Security 10.751%

· Nabil Hassan Ismail Al Nabulsi 5.330%

· Al Nahda Financial Investment 4.876%

· Abdulrahim Jardanah & Sons Co 4.756%

· Raouf Jerais Saleh Salefti 4.000%

· Drugstore Co 3.919%

· Akram Abdullatif Hassan Jarrab 3.370%

· Abu Jaber Bros Co 3.256%

· National Investment Co 2.750%

· Abdulrahim Nizar A Jardanah 2.452%

· Yousef Ahmed Asaad Radwan 1.292%

· Investment Bank 1.213%

· Lina Nizar Abdulrahim Jardanah 1.151%

· Social & Retirement for Pharmacy 1.068%

· Zina Nizar Abdulrahim Jardanah 1.067%

· Arab Bank 1.000%

· Approximately 4000 members of the public & private investors 47.749%

AFFILIATED COMPANIES

Company Percentage Held

· Dar Al Dawa Veterinary & Agricultural Industrial Company Ltd 33.63%

Sahab Industrial Estate

PO Box: 285

Amman 11710

Jordan

Tel: (962-6) 4722559 / 5727981 / 5727982

Fax: (962-6) 4722579 / 5727984

· Dar Foodstuffs Company Limited -

PO Box: 285

Amman

Jordan

· Al Shifa Co for Medical Industries -

Sana’a

Yemen

· Nutri Food (NUTRIDAR) -

PO Box: 9364

Amman 11191

Jordan

Tel: (962-6) 5728203

Fax: (962-6) 5728201

· Cosmo Dar -

PO Box: 840017

Amman 11184

Jordan

Tel: (962-6) 5728141

Fax: (962-6) 5728144

OPERATIONS

Activities: Subject is engaged in the manufacture and marketing of the following products:

- Antibiotics, chemotherapeutics, antimycotics, dermatologicals, anti-inflammatories and

analgesics, antihemorrhoidals, cardiovasculars, gastrointestinals and anti-diabetics.

- Central nerve system products

- Ophthalmologicals / otologicals / nasals

- Respiratory products, vitamins, minerals, anti-histamines, gonadotrophins and mouth

washes.

Subject holds a manufacturing licence from Parke Davis for 10 of its products.

Import Countries: Switzerland, the United Kingdom and the Far East.

Export Countries: United Arab Emirates, Saudi Arabia, Iraq, Algeria, Oman, Qatar, Bahrain, Yemen, Libya, Lebanon, Tunisia and Romania.

Operating Trend: Steady

Subject has a workforce of approximately 725 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Jordanian Dinars (JD)

Balance Sheet 2009 2008 2007

Cash on Hand & at Banks	2,717,554	2,974,561	4,999,133
Accounts Receivable, Net	35,064,079	23,578,260	22,338,425
Notes Receivable	0	0	0
Post Dated Cheques	4,600,952	4,175,481	3,246,750
Short Term Investments	40,968	43,852	292,421
Inventory	15,411,729	12,685,691	9,232,143
Spare Parts	1,280,773	829,263	0
Total Current Assets	61,930,744	45,618,674	42,902,298
Long Term Investments	15,625,225	14,866,877	14,061,019
Fixed Assets, Net	9,532,286	6,913,982	7,032,380
Lands	1,865,837	873,133	0
Projects in Progress	278,510	220,109	114,341
Total Fixed Assets	11,676,633	8,007,224	7,146,721
Other Assets	0	0	0
Total Assets	89,232,602	68,492,775	64,110,038


Accounts and Notes Payable	5,570,749	3,915,547	5,845,381
Credit Banks	3,754,726	1,425,526	2,327
Short Term Loans	5,717,456	0	0
Accrued Part of Long Term Loans	2,126,717	1,173,224	0
Total Current Liabilities	31,905,121	14,763,615	11,276,960
Long Term Loans & Notes Payable	2,482,067	1,781,037	0
Corporate Bonds	0	0	0
Other Liabilities	384,176	425,360	500,287
Total Liabilities	34,771,364	16,970,012	11,777,247

Authorized Capital	20,000,000	20,000,000	20,000,000
Subscribed Capital	20,000,000	20,000,000	20,000,000
Paid in Capital	20,000,000	20,000,000	20,000,000
Compulsory Reserves	9,260,627	9,260,627	9,260,627
Voluntary Reserve	9,372,759	9,372,759	9,313,802
Other Reserves	8,884,753	8,884,753	8,884,753
Issuance Premium	0	0	0
Issuance Discount	0	0	0
Treasury Stocks	0	0	0
Proposed Cash Dividends	4,000,000	3,000,000	4,000,000
Proposed Stock Dividends	0	0	0
Accumulated Change in Fair Value	-219,839	116,175	616,896
Retained Earnings	2,733,567	655,548	0
Total Shareholders’ Equity	54,031,867	51,289,862	52,076,078
Minority Interest	429,371	232,901	256,713
Total Liabilities & Shareholders' Equity	89,232,602	68,492,775	64,110,038

Income Statement

Operating Sales

44,650,838

40,889,837

34,325,637

Operating Expenses

22,659,594

23,419,220

19,044,334

Gross Profit

21,991,244

17,470,617

15,281,303

General and Administrative Expenses

3,776,656

3,051,470

2,566,922

Selling and Distribution Expenses

10,007,969

9,386,466

8,304,654

Depreciation (Period)

1,090,746

913,686

871,308

Other Operating Expenses

1,722,394

1,792,539

2,223,477

Net Operating Income

6,484,225

3,240,142

2,186,250

Other Sales

1,306,697

1,706,202

2,107,165

Other Expenses

664,357

478,893

214,614

Income Before Interest & Tax

7,126,565

4,467,451

4,078,801

Interest Expenses

591,480

433,572

228,434

Net Income Before Tax

6,535,085

4,033,879

3,850,367

Income Tax (Period)

233,332

180,000

248,453

Income Tax (Previous Years)

Universities and Research Train Fees

195,675

107,389

97,841

Board of Directors Remuneration

45,000

50,000

55,000

Net Income

6,061,078

3,696,490

3,449,073

Minority Interest

-16,941

-18,015

-16,986

Net Income Pertains to Shareholders

6,078,019

3,714,505

3,466,059

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

BANKERS

· Jordan Investment & Finance Bank

Issam Ajlouni Street

Shmeisani

PO Box: 950601

Amman 11195

Tel: (962-6) 5665145 / 5692470

Fax: (962-6) 5681410

· Arab Bank Plc

King Faisal Street

PO Box: 8 & 68

Amman

Tel: (962-6) 5638161

Fax: (962-6) 5637082

· Jordan Kuwait Bank

Abdali Branch

PO Box: 9776

Amman

Tel: (962-6) 5688814

· HSBC Bank Middle East

Khalid Bin Walid Street

Jebel Hussein

PO Box: 925286

Amman

Tel: (962-6) 5660471 / 5607471

Fax: (962-6) 5692964

· 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 April 2008

Credit amount 150,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Dar Al Dawa Development & Investment Co is a leading concern in its field in Jordan and has been trading for over 35 years in the manufacture and marketing of a wide range of pharmaceuticals and drugs. Subject enjoys a clear operating history and exports its products mainly to Middle Eastern and African countries.

During the course of this investigation nothing detrimental was uncovered regarding the manner in which payment obligations are fulfilled. The operating history is clear and the financial situation is satisfactory. As such we are of the opinion that the subject is a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.91
UK Pound	1	Rs.76.53
Euro	1	Rs.66.43

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
----	NB	New Business	----

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.