MIRA INFORM REPORT

 

 

Report Date :

31.08.2014

 

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) :

31.12.2013

 

 

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

120

 

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 :

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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                                     : 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

National ID Number                                : 200012412

Issued Capital                                        : JD 10,600,000

Paid up Capital                                      : JD 10,600,000

Total Workforce                                     : 120

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

 

National ID No.                        : 200012412

 

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 10,600,000

 

Paid up Capital            : JD 10,600,000

 

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 120 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD 000,000’s)

 

Balance Sheet                         31/12/13   31/12/12   31/12/11 31/12/10

 

Total Current Assets

22.67

18.9

17.81

16.01

Cash and Short Term Investments

         0.5

     0.17

   0.71

   0.63

Cash

         0.5

     0.17

   -

   -

Cash & Equivalents

         -

     -

   0.71

   0.63

Short Term Investments

         -

     -

   -

   -

Total Receivables, Net

        12.32

     10.08

   9.36

   8.81

Accounts Receivables - Trade, Net

        10.39

     8.37

   7.6

   7.62

Total Inventory

        9.38

     8.47

   7.52

   6.34

Prepaid Expenses

        0.47

     0.17

   0.21

   0.23

Other Current Assets, Total

        -

     -

   -

   -

 

Total Assets

29.59

25.62

24.47

21.99

 

Property/Plant/Equipment, Total - Net

6.12

     5.65

     5.33

  4.74

Property/Plant/Equipment, Total - Gross

10.09

     9.17

     8.42

  7.41

Accumulated Depreciation, Total

-3.96

    -3.52

    -3.09

 -2.67

Goodwill, Net

 -

     -

     -

  -

Intangibles, Net

 -

     -

     -

  -

Long Term Investments

0.79

    1.07

     1.33

 1.24

Note Receivable - Long Term

-

    -

     -

  -

Other Long Term Assets, Total

-

    -

     -

  -

Other Assets, Total

-

    -

     -

  -

Total Current Liabilities

10.54

8.47

7.9

6.16

Accounts Payable

2.71

       2.27

   1.87

   2.06

Payable/Accrued

-

       -

      -

    -

Accrued Expenses

0.18

       0.1

      -

    -

Notes Payable/Short Term Debt

0.28

       0.29

    0.29

   0.29

Current Port. of LT Debt/Capital Leases

6.32

       4.61

    4.69

   3.02

Other Current liabilities, Total

1.05

       1.19

    1.05

   0.8

Total Liabilities

12.53

9.79

 8.95

7

Total Long Term Debt

                      0.61

       0.05

     -

      -

Long Term Debt

                      0.61

       0.05

     -

      -

Capital Lease Obligations

                      -

       -

     -

      -

Total Debt

                      7.21

       4.96

    4.98

  3.31

Deferred Income Tax

                      -

       -

     -

      -

Minority Interest

                      1.36

       1.13

    0.88

  0.84

Other Liabilities, Total

                      -

       0.14

    0.17

      -

Total Equity

17.06

15.83

15.52

14.99

Redeemable Preferred Stock, Total

-

-

-

-

Preferred Stock - Non Redeemable, Net

-

-

-

-

Common Stock, Total

12

10.6

10.6

10.6

Additional Paid-In Capital

-

-

-

-

Retained Earnings (Accumulated Deficit)

5.76

5.55

4.92

4.39

Treasury Stock - Common

-

-

-

-

ESOP Debt Guarantee

-

-

-

-

Unrealized Gain (Loss)

-

-

-

-

Other Equity, Total

-0.7

-0.32

-

-

Total Liabilities & Shareholders' Equity

29.59

25.62

24.47

21.99

 

Income Statement

 

Total Revenue

21.12

17.76

14.42

13.52

Revenue

                                       21.12

17.76

14.42

13.52

Other Revenue, Total

-

-

-

-

Cost of Revenue, Total

16.07

13.73

11.14

10.39

Gross Profit

5.04

4.04

3.28

3.13

Total Operating Expenses

17.89

15.1

12.51

11.74

Selling/General/Admin. Expenses, Total

      1.79

   1.37

  1.34

 1.24

Research & Development

       -

    -

  -

 -

Depreciation / Amortization

      0.03

    -

 0.03

 -

Interest Expense (Income) - Net Operating

      -

    -

  -

 -

Unusual Expense (Income)

      -

    -

  -

 0.11

Other Operating Expenses, Total

      -

    -

  -

 -

Operating Income

3.23

2.66

1.91

1.78

Interest Income (Expense), Net Non-Operating

-0.33

-0.29

-0.14

-0.05

Gain (Loss) on Sale of Assets

-

  -

-

-

Other, Net

-0.01

-0

-

-0

Net Income Before Taxes

2.89

2.37

1.78

1.73

Provision for Income Taxes

0.31

0.42

0.15

0.12

Net Income After Taxes

2.58

1.95

1.63

1.61

 

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.60.48

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

                

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.