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Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
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Name : |
CLASSIC FASHION APPAREL INDUSTRY LTD CO |
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Registered Office : |
Al Hassan Industrial Estate, Ramtha Free Zone |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Year of Establishment : |
2003 |
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Com. Reg. No.: |
12511 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturers of ladies winter clothing, jeans, work wear,
leisure wear and sportswear |
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No. of Employees : |
5,000 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Jordan |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JORDAN - ECONOMIC OVERVIEW
Jordan's economy is among the
smallest in the Middle East, with insufficient supplies of water, oil, and
other natural resources, underlying the government''s heavy reliance on foreign
assistance. Other economic challenges for the government include chronic high
rates of poverty, unemployment, inflation, and a large budget deficit. Since
assuming the throne in 1999, King ABDALLAH has implemented significant economic
reforms, such as opening the trade regime, privatizing state-owned companies,
and eliminating some fuel subsidies, which in the last decade spurred economic
growth by attracting foreign investment and creating some jobs. The global
economic slowdown and regional turmoil, however, have depressed Jordan''s GDP
growth, impacting export-oriented sectors, construction, and tourism. In 2011
the government approved two economic relief packages and a budgetary
supplement, largely to improve the living conditions for the middle and poor
classes. Jordan''s finances have also been strained by a series of natural gas
pipeline attacks in Egypt, causing Jordan to substitute more expensive heavy
fuel oils to generate electricity. An influx of foreign aid, especially from
Gulf countries, has helped to somewhat offset these extrabudgetary
expenditures, but the budget deficit is likely to remain high, at nearly 10% of
GDP excluding grants. Amman likely will continue to depend heavily on foreign
assistance to finance the deficit in 2012. Jordan''s financial sector has been
relatively isolated from the international financial crisis because of its
limited exposure to overseas capital markets. Jordan is currently exploring
nuclear power generation to forestall energy shortfalls.
Source : CIA
Company Name : CLASSIC FASHION APPAREL INDUSTRY LTD CO
Country of Origin : Jordan
Legal Form : Limited Liability Company
Start Date : 2003
Registration Date : 11th July 2006
Commercial Registration Number : 12511
Issued Capital : JD 3,000,000
Paid up Capital : JD 3,000,000
Total Workforce : 5,000
Activities : Manufacturers of ladies winter clothing, jeans, work wear, leisure wear and sportswear.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Veno Ghopal, Finance Manager
CLASSIC FASHION APPAREL INDUSTRY LTD CO
Location : Al Hassan
Industrial Estate, Ramtha Free Zone
PO Box : 54
Town : Irbid 21467
Country : Jordan
Telephone : (962-2) 7391369
Facsimile : (962-2)
7391368
Email : info@cfaiteam.com
/ info@classicfashionapparel.com
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Irbid.
Name Nationality Position
· Redha Krishnan
Rekal Indian Managing Director
· Sanal Kumar Indian Director
· Madu Sadunan Nair - General
Manager
· Veno Ghopal - Finance
Manager
Date of
Establishment : 2003, however
subject was registered on 11th July 2006
Legal Form : Limited Liability
Company
Commercial Reg.
No. : 12511
Issued Capital : JD 3,000,000
Paid up Capital : JD 3,000,000
· Redha Krishnan
Rekal
· Sanal Kumar
Activities: Engaged in the manufacture of ladies winter clothing, jeans, work wear,
leisure wear and sportswear.
Import Countries: Europe and the United States of America.
Clients:
· Wal Mart United States of America
· Johns & Henes United States of America
· Lands End United States of America
Operating Trend: Steady
Subject has a workforce of approximately 5,000 employees.
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
Year
Ending 31/12/10: Year
Ending 31/12/11:
Total Sales US$
122,600,000 US$
130,000,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Veno Ghopal, Finance Manager
·
Arab Bank Plc
King Abdullah
Square
PO Box: 16
Irbid
Tel: (962-2)
7242251
Fax: (962-2)
7277596
No complaints regarding subject’s payments have been reported.
Local sources report that payment obligations are met in a generally
timely manner and the operating history is clear. As such the company is deemed
a fair trade risk and the above credit figure is considered to be within
subject’s financial means.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.63 |
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1 |
Rs.86.17 |
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Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.