MIRA INFORM REPORT

 

 

Report Date :

04.01.2014

 

IDENTIFICATION DETAILS

 

Name :

AL HAYAT PHARMACEUTICAL INDUSTRIES CO PSC (HPIC)

 

 

Registered Office :

Sayegh Complex, Abdali, P O Box1564, Amman 11118

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

June 1994

 

 

Com. Reg. No.:

371, Amman

 

 

Legal Form :

Private Shareholding Company

 

 

Line of Business :

manufacturer of human drugs, vitamins/hormones, and antibiotics.

 

 

No. of Employees :

180

 

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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                         : AL HAYAT PHARMACEUTICAL INDUSTRIES CO PSC (HPIC)

Country of Origin                                    : Jordan

Legal Form                                            : Private Shareholding Company

Registration Date                                   : June 1994

Commercial Registration Number            : 371, Amman

Chamber Membership Number                : 7650

Issued Capital                                        : JD 9,500,000

Paid up Capital                                      : JD 9,500,000

Total Workforce                                     : 180

Activities                                               : Manufacture of human drugs, vitamins/hormones, and antibiotics

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Jafaar Rababa, Production Manager

 


COMPANY NAME

 

AL HAYAT PHARMACEUTICAL INDUSTRIES CO PSC (HPIC)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Sayegh Complex

Area                 : Abdali

PO Box             : 1564

Town                 : Amman 11118

Country             : Jordan

Telephone         : (962-6) 4162607 / 4634111

Facsimile          : (962-6) 4163016

Email                : info@hayatpharma.com / hpi@nol.com.jo

 

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

 

·       Hayat Pharmaceutical Industries Building                                            Owned factory premises covering an area

Nile Street                                                                                        of 8,000 square metres

Al Raqeeb

Amman

Tel: (962-6) 5678125                                                             

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Maher Mohamed El Kurdi                                                                   Managing Director

 

·       Samer Mohamed Al Kurdi                                                                  Director

 

·       Mohamed Ali El Kurdi                                                                        Director

 

·       Mowafaq A Ismail                                                                              Director

 

·       Shawqi Gannam                                                                                Director

 

·       Yaser Mohamed El Kurdi                                                                   Director

 

·       Ibrahim Al Abdala                                                                              Director

 

·       Ahmed Al Majalawi                                                                            Director

 

·       Fouad Baradi                                                                                    Director

 

·       Dr Raghda Kurdi Katkhuda                                                                 Director

 

·       Dr Izzedin Katkhuda                                                                          Director

 

·       Tawfiq Yassen                                                                                  General Manager

 

·       Munzer Hashem                                                                                Purchasing Manager

 

·       Jafaar Rababa                                                                                   Production Manager

 

·       Wasef Daoud                                                                                    Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : June 1994 (Production began in 1996)

 

Legal Form                  : Private Shareholding Company

 

Commercial Reg. No.  : 371, Amman

 

Chamber Member No. : 7650

 

Issued Capital              : JD 9,500,000

 

Paid up Capital            : JD 9,500,000

 

Name of Shareholder (s)

·       Maher Mohamed El Kurdi

·       Samer Mohamed Al Kurdi

·       Mohamed Ali El Kurdi

·       Mowafaq A Ismail

·       Shawqi Gannam

·       Yaser Mohamed El Kurdi

·       Ibrahim Al Abdala

·       Ahmed Al Majalawi

·       Fouad Baradi

 

 

AFFILIATED COMPANIES

 

·       Kurdi Drug Store

PO Box: 984

Amman 11118

Tel: (962-6) 4634111

Fax: (962-6) 4645663

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of human drugs, vitamins/hormones, and antibiotics.

 

HPI has developed and registered 116 products of different molecules and in various therapeutic areas. There are more than 56 products in the market now.

 

The plant facilities include three production lines covering three categories. These include solid dosage forms such as tablets, capsules and dry suspensions; semi-solid dosage forms such as creams, ointments, suppositories and gels; and liquid dosage forms such as syrups, nasal and ear-drops and other solutions.

 

Production Capacity:

 

Tablets                                      60 million

Capsules                                   30 million

Dry Suspension                         250,000

Suppositories                            5 million

Syrups and Solutions                 2.5 million

Creams and Ointments               3 million

 

Import Countries: Germany, France, Belgium and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of 180 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

968,246

357,807

675,502

Accounts Receivable, Net

3,016,068

3,598,132

3,408,149

Notes Receivable

0

0

0

Post Dated Cheques

1,047,596

118,500

939,753

Short Term Investments

0

0

0

Inventory

1,662,075

969,602

1,035,169

Spare Parts

129,536

119,006

156,944

Total Current Assets

6,882,353

6,159,402

6,358,331

Long Term Investments

0

0

0

Fixed Assets, Net

5,554,711

5,736,222

5,956,831

Lands

0

0

0

Projects in Progress

0

0

0

Total Fixed Assets

5,554,711

5,736,222

5,956,831

Other Assets

84,383

223,979

196,879

Total Assets

12,521,447

12,119,603

12,512,041

 

 

Accounts and Notes Payable

651,062

430,027

593,640

Credit Banks

196,555

315,238

393,069

Short Term Loans

0

0

0

Accrued Part of Long Term Loans

0

0

0

Total Current Liabilities

1,318,540

1,127,519

1,308,394

Long Term Loans & Notes Payable

0

0

0

Corporate Bonds

0

0

0

Other Liabilities

0

0

0

Total Liabilities

1,318,540

1,127,519

1,308,394

 

Authorized Capital

9,500,000

9,500,000

9,500,000

Subscribed Capital

9,500,000

9,500,000

9,500,000

Paid in Capital

9,500,000

9,500,000

9,500,000

Compulsory Reserves

437,890

327,745

270,062

Voluntary Reserve

44,184

44,184

44,184

Other Reserves

0

0

0

Issuance Premium

0

0

0

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

712,500

0

0

Proposed Stock Dividends

0

0

0

Accumulated Change in Fair Value

0

0

0

Retained Earnings

508,333

1,120,155

1,389,401

Total Shareholders’ Equity

11,202,907

10,992,084

11,203,647

Minority Interest

0

0

0

Total Liabilities & Shareholder’s Equity

12,521,447

12,119,603

12,512,041

 

Income Statement

 

Operating Revenues

6,269,094

4,995,087

4,744,145

Operating Expenses

1,950,492

1,705,403

1,380,053

Gross Profit

4,318,602

3,289,684

3,364,092

General and Administrative Expenses

793,177

670,778

630,246

Selling and Distribution Expenses

2,054,461

1,811,318

1,891,285

Depreciation (Period)

333,559

295,032

275,202

Other Operating Expenses

350,861

236,692

193,262

Net Operating Income

1,120,103

570,896

649,299

Other Revenues

12,803

42,230

57,890

Other Expenses

0

0

0

Income Before Interest & Tax

1,132,906

613,126

707,189

Interest Expenses

31,454

36,296

56,302

Net Income Before Tax

1,101,452

576,830

650,887

Income Tax (Period)

143,129

35,125

96,384

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

5,768

53,051

Board of Directors Remuneration

35,000

35,000

0

Net Income

923,323

500,937

501,452

Minority Interest

0

0

0

Net Income Pertains to Shareholders

923,323

500,937

501,452

 

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

 

Operating revenues for the year ending 31/12/2012 were JD 8,443,000 and net income before tax was JD 1,715,000.

 

 

BANKERS

 

·       Jordan National Bank

PO Box: 1578

Amman

Tel: (962-6) 4612391

 

·       Arab Bank Plc

Abdali Branch

PO Box: 926607

Amman

Tel: (962-6) 5627271

Fax: (962-6) 5649305

 

·       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.

 

Date of transaction                              February 2005

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

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.62.41

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

INFORMATION DETAILS

 

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.