MIRA INFORM REPORT

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ARAB PESTICIDES & VETERINARY DRUGS MANUFACTURING CO  (MOBEDCO)

 

 

Registered Office :

Fairdous Commercial Complex, 1st Floor, Building No. 150, Office 101-104, King Abdullah the Second Street, Medical City Street, Sweileh, PO Box  930103, Amman 11193

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

17.10.1991

 

 

Com. Reg. No.:

366

 

 

Legal Form :

Public Shareholding Company

 

 

Line of Business :

Production of agricultural pesticides and veterinary products.

 

 

No. of Employees :

130

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Jordan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

 


 

SUMMARY

 

Company Name                                     : ARAB PESTICIDES & VETERINARY DRUGS MANUFACTURING CO

                                                              (MOBEDCO)

Country of Origin                                    : Jordan

Legal Form                                            : Public Shareholding Company

Registration Date                                   : 17th October 1991

Commercial Registration Number            : 366

Issued Capital                                        : JD 10,000,000

Paid up Capital                                      : JD 10,000,000

Total Workforce                                     : 130

Activities                                               : Production of agricultural pesticides and veterinary products.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

COMPANY NAME

 

ARAB PESTICIDES & VETERINARY DRUGS MANUFACTURING CO (MOBEDCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Fairdous Commercial Complex, 1st Floor, Building No. 150, Office 101-104

Street               : King Abdullah the Second Street, Medical City Street

Area                 : Sweileh

PO Box             : 930103

Town                 : Amman 11193

Country             : Jordan

 

Telephone         : (962-6) 5354161 / 5354191 / 5354192

Facsimile          : (962-6) 5354949

Email                : mobedco@nol.com.jo / sales@mobedco.com

 

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

 

Al Hasan Industrial City                                                              Owned factory premises covering an

PO Box: 45                                                                               area of 3,200 square metres

Irbid 21467

Tel: (962-2) 7395195 / 7395266

Fax: (962-2) 7395225 / 7395260

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Samir Aqel Salim Owais                                                                         Chairman

           

Bassam Ahmad Ibrahim Lahlouh                                                 Vice Chairman

 

Mohamed Aqel Salem Owais                                                                  Managing Director

 

Yousef Ibrahim Abdullah Abu Jamil                                                          Director

 

Hasan Abdul Hai Daoud Al Qawasmi                                                       Director

 

Mahmoud Yusef Mahmoud Abu Khazneh                                     Director

 

Radwan Ahmed Mohammed Al Saad                                                       Director

 

Asaad Daoud Ibrahim Al Dissy                                                                Director

 

Kahlid Al Bitar                                                                                       Administration & Finance Manager

 

Hammoudeh Ahmad                                                                               Marketing Manager

 

Ahmad Al Khatib                                                                                    Accounts Manager

 

Rabab El Henky                                                                         Production Manager – Veterinary

 

Ziyad Alwadi                                                                                          Production Manager – Pesticides

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 17th October 1991

 

Legal Form      : Public Shareholding Company

 

Commercial Reg. No.  : 366

 

Registration Details     : The Subject Company was registered in the Department of Companies Control at the

  Ministry of Industry and Trade under commercial registration no. 2590 as Limited Liability

  Company and changed to Public Shareholding Company under Reg. No. 366 on 31/7/2005.

 

Issued Capital              : JD 10,000,000

 

Paid up Capital            : JD 10,000,000

 

Name of Shareholder (s)                                                Percentage

 

Faiek Haisamawi                                                                       9.33%

 

Najah Ramahi                                                                            6.19%

 

Al Amin Investment                                                        ]

Jordan                                                                           ]           84.48%

                                                                                    ]

Members of the general public & private investors ]

 

 

 

AFFILIATED COMPANIES

 

            Name                                                                                        Country

 

The Development Company for Agriculture & Trade                                   Jordan

 

Al Petra for Fertilizers Industries Company                                               Jordan

 

ASPICO                                                                                                Syria

 

Saudi Delta for Chemical Industries Company                                           Saudi Arabia

 

 

OPERATIONS

 

Activities:                     Engaged in the production of agricultural pesticides and veterinary products. When subject was first established it specialised in the production of only agricultural pesticides but later expanded into veterinary  products. It operates 3 factories in Irbid, one for agricultural products, one for veterinary and the last was set up during 2002 for the production of disinfectants and injectable solutions.

 

Veterinary Product Range:                      -  Antibiotics

                                                                                                -  Vitamins

                                                                                                -  Feed additives

                                                                                                -  Anticoccidials

                                                                                                -  Anthelmintics

                                                                                                -  Ectoparasiticides

                                                                                                -  Disinfectants

 

Agricultural Product Range:                    -  Pesticides

                                                                                                -  Insecticides

                                                                                                -  Fungicides

                                                                                                -  Herbicides

                                                                                                -  Acaricides

                                                                                                -  Rodenticides

 

                                    Subject was awarded the ISO9002 certificate for the quality of its products in 1994.

 

Import Countries:         Europe, United States of America, China, India and Taiwan

 

Export Countries:         Saudi Arabia, United Arab Emirates, Yemen, Egypt, Sudan, Syria, Taiwan, Pakistan, Algeria, Morocco and Kenya

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 130 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

Balance Sheet                                  31/12/11     31/12/10      31/12/09

 

Assets

 

Cash on Hand & at Banks

707,265

634,710

163,451

Accounts Receivable, Net

7,597,179

7,624,049

6,618,010

Notes Receivable

0

0

0

Post Dated Cheques

1,436,255

793,007

1,112,183

Short Term Investments

0

0

0

Inventory

7,522,346

6,335,967

6,424,186

Spare Parts

0

0

0

Total Current Assets

17,805,136

16,008,415

14,714,364

Long Term Investments

1,328,976

1,243,042

1,144,548

Fixed Assets, Net

5,331,543

4,738,743

4,714,188

Lands

0

0

0

Projects in Progress

0

0

0

Total Fixed Assets

5,331,543

4,738,743

4,714,188

Other Assets

0

0

0

Total Assets

24,465,655

21,990,200

20,573,100

 

Liabilities & Equity

 

 

 

 

Accounts and Notes Payable

2,625,123

2,355,282

2,288,350

Credit Banks

4,341,841

0

0

Short Term Loans

0

2,716,333

2,549,010

 

 

 

 

Total Current Liabilities

7,798,864

6,161,450

5,701,564

 

 

 

 

 

 

 

 

Other Liabilities

272,890

0

52,890

Total Liabilities

8,071,754

6,161,450

5,754,454

 

 

 

Authorized Capital

10,600,000

10,600,000

10,000,000

Subscribed Capital

10,600,000

10,600,000

10,000,000

Paid in Capital

10,600,000

10,600,000

10,000,000

Compulsory Reserves

1,734,810

1,558,866

1,374,935

Voluntary Reserve

1,175,424

1,003,924

856,628

Other Reserves

0

0

86,481

Issuance Premium

0

0

0

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

1,060,000

636,000

600,000

Proposed Stock Dividends

0

636,000

0

Accumulated Change in Fair Value

0

0

0

Retained Earnings

945,973

557,634

1,181,376

Total Shareholders’ Equity

15,516,207

14,992,424

14,099,420

Minority Interest

877,694

836,326

719,226

Total Liabilities & Shareholders’ Equity

24,465,655

21,990,200

20,573,100

 

 

 

 

 

 

 

Income Statement

 

Operating Revenues

14,420,530

13,524,022

12,561,821

Operating Expenses

11,144,865

10,394,946

9,430,529

Gross Profit

3,275,665

3,129,076

3,131,292

General and Administrative Expenses

856,715

707,496

735,652

Selling and Distribution Expenses

412,488

361,757

424,669

Depreciation (Period)

421,643

371,375

465,324

Other Operating Expenses

50,000

130,000

50,000

Net Operating Income

1,956,462

1,929,823

1,920,971

Other Revenues

178,168

289,595

286,457

Other Expenses

0

105,310

0

Income Before Interest & Tax

2,134,630

2,114,108

2,207,428

Interest Expenses

313,861

323,884

329,648

Net Income Before Tax

1,820,769

1,790,224

1,877,780

Income Tax (Period)

150,618

122,246

126,942

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

12,914

36,506

Board of Directors Remuneration

45,000

45,000

45,000

Net Income

1,625,151

1,610,064

1,669,332

Minority Interest

41,368

117,060

152,358

Net Income Pertains to Shareholders

1,583,783

1,493,004

1,516,974

 

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

 

 

BANKERS

 

Jordan National Bank

Queen Noor Street

PO Box: 941273

Amman 11194

Tel: (962-6) 5622285

Fax: (962-6) 5622281

 

Arab Bank Plc

King Abdullah Square

PO Box: 16

Irbid

Tel: (962-2) 7242251

Fax: (962-2) 7277596

 

 

AUDITORS

 

Arab Professionals Co

Abu Al Haj Complex

Queen Rania Al Abdullah Street

Amman

Tel: (962-6) 5151125

Fax: (962-6) 5151124

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     December 2001                         January 2006

Credit amount                            153,000                         127,000

Amount overdue             0                                              0

Payment terms                          60 days                                     120 days

Payment Method                       Letters of Credit                         Letters of Credit

Paying record                            No Complaints                           No Complaints

Currency                                   Euros                                        Pounds Sterling

 

 

 

 

GENERAL COMMENTS

 

Established in 1991, Arab Pesticides & Veterinary Drugs Manufacturing Co (Mobedco) has made considerable progress in the regional market. It specialises in the production of agricultural pesticides, veterinary products and disinfectants and injectable solutions.

 

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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.70

UK Pound

1

Rs.82.79

Euro

1

Rs.71.43

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.