MIRA INFORM REPORT

 

 

Report Date :

07.09.2013

 

IDENTIFICATION DETAILS

 

Name :

JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

 

 

Registered Office :

Industrial Area, PO Box  : 94, Naor 11710

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1980

 

 

Com. Reg. No.:

347

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture of pharmaceutical preparations

 

 

No. of Employees :

520

 

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

 

Maximum Credit Limit:

US$ 750,000

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 and 2012, the government approved two economic relief packages and a budgetary supplement, meant 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 diesel imports, primarily from Saudi Arabia, to generate electricity. Jordan is currently exploring nuclear power generation in addition to the exploitation of abundant oil shale reserves and renewable technologies to forestall energy shortfalls. In 2012, to correct budgetary and balance of payments imbalances, Jordan entered into a $2.1 billion, multiple year International Monetary Fund Stand-By Arrangement. Jordan''s financial sector has been relatively isolated from the international financial crisis because of its limited exposure to overseas capital markets. Jordan will continue to depend heavily on foreign assistance to finance the deficit in 2013.

 

Source : CIA

 


SUMMARY

 

Company Name                                     : JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

Country of Origin                                    : Jordan

Legal Form                                            : Limited Liability Company

Registration Date                                   : 1980

Commercial Registration Number            : 347

Issued Capital                                        : JD 20,000,000

Paid up Capital                                      : JD 20,000,000

Total Workforce                                     : 520

Activities                                               : Manufacture of pharmaceutical preparations

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 750,000

 

 

 

 


COMPANY NAME

 

 JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Industrial Area

PO Box             : 94

Town                 : Naor 11710

Country             : Jordan

 

Telephone         : (962-6) 5727207 / 5728160

Facsimile          : (962-6) 5727641 / 5865567

Email                : jpm@go.com.jo

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Naor.

 

Branch Office (s)

 

Location                                                                                  Description

 

PO Box: 851658                                                                        Office premises

Abdali Area

Amman 11185

Tel : (962-6) 5661911

Fax : (962-6) 5691559

 

Al Razi                                                                                      Office premises

PO Box: 151

Um Amad 16197

Tel: (962-6) 4290744

Fax: (962-6) 4290952

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Saleh Mousa Al Shanteer                                                           Chairman

 

Dr Adnan A H Badwan                                                                Managing Director

 

Lina Bahouth Owais                                                                   Director

 

Mohamed Ganayem                                                                   Director

 

Sofian Al Sartoui                                                                        Director

 

Ahmed Saad Saheen                                                                 Director

 

Zakieh Alkurdi                                                                            Director

 

Dr Zaid Al Shedfan                                                                     Production Manager

 

Lina Al Nabulsi                                                                          Marketing Manager

 

Murad Abed Al Karim                                                                 Financial Manager

 

Mohammed Abdel Kareem                                                          Manufacturing Manager

 

Mahmoud Abboud                                                                      Marketing Executive

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1980

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 347

 

Issued Capital              : JD 20,000,000

 

Paid up Capital            : JD 20,000,000

 

Name of Shareholder (s)

 

Saleh Mousa Al Shanteer

 

Dr Adnan Badwan

 

Sofian Al Sartoui

 

Ahmed Saad Saheen

 

Jordanian businessmen and private investors

 

 

 

 

OPERATIONS

 

Activities:                     Engaged in the manufacture of pharmaceutical preparations, including antacids, antispasmodics, laxatives,  analgesics, antipyretics, antihistamines, mucolytics, cough suppressants, diuretics, antidepressants, anxiolytics, vitamins and antilipemics.

 

Import Countries:         Germany, France, the United Kingdom and the United States of America

 

Export Countries:         Lebanon, Yemen, Algeria, Sudan, Bahrain, Oman, Saudi Arabia, Ethiopia, Bosnia and Germany

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 520 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

 

Cash on Hand & at Banks

159,953

442,346

375,443

Accounts Receivable, Net

18,451,187

23,649,108

20,435,186

Notes Receivable

0

0

0

Post Dated Cheques

3,215,287

1,295,826

1,007,586

Short Term Investments

0

0

0

Inventory

9,792,423

7,038,482

7,201,058

Spare Parts

0

0

0

Total Current Assets

41,993,417

32,824,002

35,498,225

Long Term Investments

10,638,963

10,443,908

6,453,028

Fixed Assets, Net

6,975,280

13,444,411

14,589,451

Lands

0

0

0

Projects in Progress

50,000

3,851

0

Total Fixed Assets

7,025,280

13,448,262

14,589,451

Other Assets

13,806,919

4,293,256

3,722,902

Total Assets

73,464,579

61,009,428

60,263,606

 

Accounts and Notes Payable

3,448,444

10,812,821

9,749,060

Credit Banks

320,372

2,598,495

0

Short Term Loans

1,112,970

166,986

810,042

Accrued Part of Long Term Loans

0

0

900,613

Total Current Liabilities

14,128,735

13,578,302

14,264,736

Long Term Loans & Notes Payable

7,568,196

0

116,986

Corporate Bonds

0

5,695,018

0

Other Liabilities

9,063,287

0

7,437,289

Total Liabilities

30,760,218

19,273,320

21,819,011

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

1,818,939

1,617,527

1,379,217

Voluntary Reserve

6,085,839

6,085,839

6,085,839

Other Reserves

0

0

0

Issuance Premium

2,000,000

2,000,000

2,000,000

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

0

0

0

Proposed Stock Dividends

0

0

0

Accumulated Change in Fair Value

436,720

436,720

0

Retained Earnings

11,771,638

11,026,716

8,943,750

Total Shareholders’ Equity

42,113,136

41,166,802

38,408,806

Minority Interest

591,225

569,306

35,789

Total Liabilities & Shareholders’ Equity

73,464,579

61,009,428

60,263,606

 

Income Statement

 

Operating Revenues

29,163,326

20,890,027

22,662,646

Operating Expenses

8,651,387

7,255,609

9,447,784

Gross Profit

20,511,939

13,634,418

13,214,862

General and Administrative Expenses

1,907,801

1,782,238

1,485,191

Selling and Distribution Expenses

11,945,987

10,876,640

10,778,669

Depreciation (Period)

1,702,269

0

1,523,578

Other Operating Expenses

1,096,980

161,365

2,604,219

Net Operating Income

5,561,171

814,175

-1,653,217

Other Revenues

420,526

3,766,838

5,728,392

Other Expenses

3,239,998

1,207,442

0

Income Before Interest & Tax

2,741,699

3,373,571

4,075,175

Interest Expenses

644,893

897,023

900,141

Net Income Before Tax

2,096,806

2,476,548

3,175,034

Income Tax (Period)

83,553

14,100

62,201

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

23,831

91,336

Board of Directors Remuneration

45,000

45,000

45,000

Net Income

1,968,253

2,393,617

2,976,497

Minority Interest

21,919

100,149

0

Net Income Pertains to Shareholders

1,946,334

2,293,468

2,976,497

 

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

 

 

BANKERS

 

Arab Bank Plc

Abdali Branch

PO Box: 926607

Amman

Tel: (962-6) 5627271

Fax: (962-6) 5649305

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

CREDIT LIMIT

 

Recommended credit limit:                 US$ 750,000

 

 

GENERAL COMMENTS

 

Established in 1980, subject is involved in the manufacture of pharmaceutical preparations and exports its products throughout the Middle East and Africa.

 

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.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

 

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.