MIRA INFORM REPORT

 

 

Report Date :

18.12.2014

 

IDENTIFICATION DETAILS

 

Name :

JORDAN CHEMICALS CO LTD

 

 

Registered Office :

Airport Road, Al Qastal Area 499 Amman 11118

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1964

 

 

Com. Reg. No.:

5198

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the import and distribution of fertilizers and raw materials for the chemical and plastic industries.

 

 

No of Employees :

30

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Jordan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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                                    : JORDAN CHEMICALS CO LTD

Country of Origin                                   : Jordan

Legal Form                                           : Limited Liability Company

Start Date                                             : 1964

Commercial Registration Number           : 5198, Amman

National ID Number                               : 200012215

Issued Capital                                       : JD 3,000,000

Paid up Capital                                     : JD 3,000,000

Total Workforce                         : 30

Activities                                               : Distributors of fertilizers and raw materials for the chemical and plastic   

                                                               industries

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mahmoud Abbas, Finance Manager

 

 
COMPANY NAME

 

JORDAN CHEMICALS CO LTD

 

 

company ADDRESS

 

Registered & Physical Address

 

Street               : Airport Road

Area                 : Al Qastal Area

 

PO Box            : 499

 

Town                : Amman 11118

Country : Jordan

 

Telephone         : (962-6) 4625617 / 4711193 / 4711194 / 4892853

Facsimile          : (962-6) 4659061 / 4711197 / 4875303

Mobile              : (962-79) 5055592

Email                : jumana@hammoudehgroup.com.jo / abbas@hammoudehgroup.com

 

Premises

 

Subject operates from a suite of offices covering 200 square metres that are rented and located in the Central Business Area of Amman.

 

 

KEY PRINCIPALS

 

     Name                                                                                                           Position

 

·       Mohamed Nabil Abdul Hadi Hammoudeh                                                       Managing Director

 

·       Maher Abdul Hadi Hammoudeh                                                                     Director

 

·       Sami Abdul Hadi Hammoudeh                                                                       Director

 

·       Samir Abdul Hadi Hammoudeh                                                                      Director

 

·       Jumana Qurayat                                                                                           Administration Manager

 

·       Mohamed Abu Eid                                                                                        Sales Manager

 

·       Mahmoud Abbas                                                                                          Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1964

 

History                         : Subject started in 1964 as a Sole Proprietorship called “Abdul Hadi Hammoudeh”. On 17th February 1998 subject became a Limited Liability Company called “Jordan Chemicals Co Ltd”.

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 5198, Amman

 

National ID No.             : 200012215

 

Issued Capital              : JD 3,000,000

 

Paid up Capital            : JD 3,000,000

 

Name of Shareholder (s)                                                    Percentage

 

·       Mohamed Nabil Abdul Hadi Hammoudeh                               25%

 

·       Maher Abdul Hadi Hammoudeh                                             25%

 

·       Sami Abdul Hadi Hammoudeh                                               25%

 

·       Samir Abdul Hadi Hammoudeh                                              25%

 

 

AFFILIATED COMPANIES

 

·       Jordan Feed Company Co Ltd

Amman

 

·       Provimi Jordan Feed Concentrate Manufacturing Co Ltd

Amman

 

·       National Hatcheries Company Ltd

Amman

 

·       Hammoudeh Brothers for Trade & Investment Co

Amman

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of fertilizers and raw materials for the chemical and plastic

     industries.

 

Import Countries: Belgium, United Kingdom, Italy, Turkey, Spain and Saudi Arabia.

 

International Suppliers:

 

·       SABIC                      Saudi Arabia

·       Petro Rabigh            Saudi Arabia

·       Qapco                     Qatar

 

Export Countries: Iraq

 

Operating Trend: Steady

 

Subject has a workforce of 30 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                US$ 30,200,000             US$ 31,750,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Arab Bank Plc

Amman

Tel: (962-6) 4638161

Fax: (962-6) 4637082

 

·       Standard Chartered Bank

Shmeisani

Amman

Tel: (962-6) 5607201

Fax: (962-6) 5679115

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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. 63.58

UK Pound

1

Rs. 99.98

Euro

1

Rs. 79.39

 

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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%)

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