MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

INTERNATIONAL SILICA INDUSTRIES CO

 

 

Registered Office :

Amat, Shmeisani, P O Box 840338, Amman 11181

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

08.04.1997

 

 

Legal Form :

Public Shareholding Company

 

 

Line of Business :

Engaged in the mining and processing of silica sand to produce silica flour.

 

 

No. of Employees :

40

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

Status :

Moderate

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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. In 2013, Jordan depended heavily on foreign assistance to finance the budget deficit, as the influx of about 600,000 Syrian refugees put additional pressure on expenditures.

 

 

Source : CIA

 

 

 

SUMMARY

 

Company Name                                    : INTERNATIONAL SILICA INDUSTRIES CO

Country of Origin                                   : Jordan

Legal Form                                           : Public Shareholding Company

Registration Date                                  : 8th April 1997

Issued Capital                                       : US$ 3,434,000

Paid up Capital                                     : US$ 3,434,000

Total Workforce                                     : 40

Activities                                               : Operation of mining and processing of silica sand to produce silica

flour.

Financial Condition                                : Poor

Payments                                             : Nothing detrimental uncovered

 

 

 


COMPANY NAME

 

INTERNATIONAL SILICA INDUSTRIES CO

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Amat, Shmeisani

PO Box            : 840338

Town                : Amman 11181

Country             : Jordan

 

Telephone         : (962-6) 5697788 / 4719056 / 5688900

Facsimile          : (962-6) 5687300 / 4719058

Email                : silica@joinnet.com.jo

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                                                                           Position

 

·       Ayman Abdul Karim Bashir Hatahet                                                               Chairman

·       Kim Fouad Saad Abu Jaber                                                                         Vice Chairman

·       Ghazi I Gamweh                                                                                            Director

·       Eyad R Al Tameme                                                                                       Director

·       Qais F S Abu Jaber                                                                                      Director

·       Fote E F Khamees                                                                                        Director

·       Jameel Wrikat                                                                                               Director

·       Essam Alm’Ashar                                                                                         General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 8th April 1997

 

Legal Form                  : Public Shareholding Company

 

Issued Capital              : US$ 3,434,000

 

Paid up Capital            : US$ 3,434,000

 

Name of Shareholder (s)                                                                      Percentage

 

·       Ayman Abdul Karim Bashir Hatahet                                                   27.182%                                               Jordanian International Insurance Co                                                 17.545%

·       Ghaith Fouad Saad Abu Jaber                                                          13.235%

·       Al Tarafteen Co                                                                                11.856%

·       Fouad Saad Abu Jaber                                                                     11.682%

·       Kim Saad Abu Jaber                                                                           9.971%

·       Yousef Ahmed Asaad Radwan                                                            2.515%

·       Kim & Ghaith Abu Jaber & Partners                                                     1.479%

·       Local businessmen and private investors                                             4.535%

 

 

OPERATIONS

 

Activities: Engaged in the mining and processing of silica sand to produce silica flour.

 

Production Capacity: 28,000 tons per annum of micronized and classified silica sand.

 

Subject has a workforce of 40 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

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

 

Cash on Hand & at Banks

72,981

327,952

376,550

Accounts Receivable, Net

222,250

378,463

360,955

Notes Receivable

0

0

0

Post Dated Cheques

0

0

0

Short Term Investments

53,975

63,846

66,039

Inventory

583,952

422,474

297,719

Spare Parts

0

0

0

Total Current Assets

970,250

1,238,970

1,168,925

Long Term Investments

0

0

0

Fixed Assets, Net

1,454,357

1,533,865

1,599,665

Lands

0

0

0

Projects in Progress

0

0

0

Total Fixed Assets

1,454,357

1,533,865

1,599,665

Other Assets

18

0

0

Total Assets

2,424,625

2,772,835

2,768,590

 

Accounts and Notes Payable

38,338

122,844

65,607

Credit Banks

0

0

0

Short Term Loans

0

0

0

Accrued Part of Long Term Loans

0

0

0

Total Current Liabilities

100,498

166,651

130,389

Long Term Loans & Notes Payable

0

0

0

Corporate Bonds

0

0

0

Other Liabilities

0

0

0

Total Liabilities

100,498

166,651

130,389

 

Authorized Capital

2,366,815

2,366,815

2,366,815

Subscribed Capital

2,366,815

2,366,815

2,366,815

Paid in Capital

2,366,815

2,366,815

2,366,815

Compulsory Reserves

109,149

109,149

98,150

Voluntary Reserve

0

0

0

Other Reserves

0

0

0

Issuance Premium

0

0

0

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

0

118,316

142,009

Proposed Stock Dividends

0

0

0

Accumulated Change in Fair Value

0

0

0

Retained Earnings

-151,837

11,904

31,227

Total Shareholders’ Equity

2,324,127

2,606,184

2,638,201

Minority Interest

0

0

0

Total Liabilities & Shareholders’ Equity

2,424,625

2,772,835

2,768,590

 

Statement of Income

Operating Revenues

404,777

1,041,405

1,354,631

Operating Expenses

296,287

680,797

855,049

Gross Profit

108,490

360,608

499,582

General and Administrative Expenses

230,047

220,443

201,986

Selling and Distribution Expenses

33,832

30,173

102,428

Depreciation (Period)

89,516

100,840

86,563

Other Operating Expenses

0

0

0

Net Operating Income

-155,389

109,992

195,168

Other Revenues

1,544

0

-5,494

Other Expenses

9,871

0

0

Income Before Interest & Tax

-163,716

109,992

189,674

Interest Expenses

0

0

0

Net Income Before Tax

-163,716

109,992

189,674

Income Tax (Period)

0

0

1,917

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

0

1,897

Board of Directors Remuneration

0

0

0

Net Income

-163,716

109,992

185,860

Minority Interest

0

0

0

Net Income Pertains to Shareholders

-163,716

109,992

185,860

 

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

 

Figures for the year ending 31st December 2013 were not available.

 

 

BANKERS

 

·       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.

 

 

GENERAL COMMENTS

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

Div

 

 

Report Prepared by :

MNL

 

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.