MIRA INFORM REPORT

 

 

Report Date :

04.01.2014

 

IDENTIFICATION DETAILS

 

Name :

INTERMEDIATE PETROCHEMICALS INDUSTRIES CO LTD

 

 

Registered Office :

Awajan Zarqa Highway, PO Box : 2502, Zarqa

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

28.02.1980

 

 

Com. Reg. No.:

134, Zarqa

 

 

Legal Form :

Public Shareholding Company

 

 

Line of Business :

Subject is engaged in the production of petrochemicals, polypropylene and dyes

 

 

No. of Employees :

130

 

 

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                         : INTERMEDIATE PETROCHEMICALS INDUSTRIES CO LTD

Country of Origin                                    : Jordan

Legal Form                                            : Public Shareholding Company

Registration Date                                   : 28th February 1980

Commercial Registration Number            : 134, Zarqa

Issued Capital                                        : JD 7,000,000

Paid up Capital                                      : JD 7,000,000

Total Workforce                                     : 130

Activities                                               : Producers of petrochemicals, polypropylene and dyes

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady


COMPANY NAME

 

INTERMEDIATE PETROCHEMICALS INDUSTRIES CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Awajan Zarqa Highway

PO Box             : 2502

Town                 : Zarqa

Country             : Jordan

 

Telephone         : (962-5) 3653334 / 3653775

Facsimile          : (962-5) 3653335 / 3653777

Email                : info@ipi.com.jo

 

Premises

 

Subject operates from a suite of offices and a factory covering an area of 2,500 square metres that are owned and located in the Industrial Area of Zarqa.

 

 

KEY PRINCIPALS

 

Name                                                                                                               Position

 

Abdel Wahab Zubi                                                                                              Chairman

 

Dr Marwan Kamal                                                                                              Vice Chairman

 

Mahmoud Sammour                                                                                           Director

 

Mahmoud Al Khatib                                                                                            Director

 

Mohamed Mahmoud Al Qaysi                                                                             Director

 

Amer Al Halawani                                                                                              Director

 

Musab Abdel Wahab Zubi                                                                                   General Manager

 

 


LEGAL FORM & OWNERS

 

Date of Establishment  :           28th February 1980

 

Legal Form      :                       Public Shareholding Company

 

Commercial Reg. No.  :           134, Zarqa

 

Issued Capital              :           JD 7,000,000

 

Paid up Capital            :           JD 7,000,000

 

Name of Shareholder (s)                                                          Percentage

 

Shaa Financial Investment                                                          20.204%

Jordan

 

Jamjoom Trading & Industry                                                        11.964%

Saudi Arabia

 

Houston Maz Corp                                                                     11.121%

United States of America

 

Khalid Bin Mohamed Bin Salem Al Anzi                                         9.728%

 

Mahmoud Sulaiman Najm Al Khateeb                                            4.935%

 

Hatim Hafiz Rashad Al Tamimi                                                      3.557%

           

Marwan Rasam Kamal Kamal                                                       2.754%

 

Khalid Mahmoud Ahmed Latouf                                                   1.970%

 

Yara Samir Hafiz                                                                          1.786%

 

Ahmed Saleh Mostafa Al Zubi                                                       1.440%

 

Mahmoud Mamoun Mahmoud Al Ghalabini                                     1.429%

 

Hani Mohamed Essa Abu Rahma                                                  1.429%

 

Khalid Mostafa Mohamed Saleeq                                                  1.095%

 

Local businessmen and private investors                         26.588%          

 

 


AFFILIATED COMPANIES

 

Name                                                                                         Percentage Held

 

Jordan Polymers & Intermediate Chemicals Co Ltd                       60%

Awajan Industrial Area

Wadi Hajjar

PO Box: 862

Zarqa

Tel: (962-5) 3650871

 

 

OPERATIONS

 

Activities:                     Engaged in the production of petrochemicals, polypropylene and dyes.

 

Import Countries :        Turkey and Germany.

 

Export Countries :        North Africa and the Middle East

 

Operating Trend:         Steady

 

Subject has a workforce of 130 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

101,980

201,440

877,065

Accounts Receivable, Net

1,343,486

523,716

1,486,054

Notes Receivable

0

0

0

Post Dated Cheques

244,346

0

312,676

Short Term Investments

0

0

0

Inventory

2,586,420

2,663,562

3,113,751

Spare Parts

0

0

0

Total Current Assets

4,490,515

3,479,131

7,352,640

Long Term Investments

19,406

31,064

31,064

Fixed Assets, Net

6,866,457

6,687,875

6,249,393

Lands

0

0

0

Projects in Progress

104,049

255,859

210,538

Total Fixed Assets

6,970,506

6,943,734

6,459,931

Other Assets

0

0

0

Total Assets

11,480,427

10,453,929

13,843,635

 

Accounts and Notes Payable

169,629

300,799

1,426,998

Credit Banks

2,561,529

1,248,610

3,209,046

Short Term Loans

0

0

0

Accrued Part of Long Term Loans

0

0

0

Total Current Liabilities

2,996,014

2,057,931

5,390,100

Long Term Loans & Notes Payable

0

0

0

Corporate Bonds

0

0

0

Other Liabilities

0

0

0

Total Liabilities

2,996,014

2,057,931

5,390,100

 

Authorized Capital

7,000,000

7,000,000

7,000,000

Subscribed Capital

7,000,000

7,000,000

7,000,000

Paid in Capital

7,000,000

7,000,000

7,000,000

Compulsory Reserves

44,049

34,042

34,042

Voluntary Reserve

1,099,958

1,166,543

1,166,543

Other Reserves

0

0

0

Issuance Premium

0

0

0

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

350,000

0

0

Proposed Stock Dividends

0

0

0

Accumulated Change in Fair Value

-9,594

2,064

2,064

Retained Earnings

0

193,349

250,886

Total Shareholders’ Equity

8,484,413

8,395,998

8,453,535

Minority Interest

0

0

0

Total Liabilities & Shareholders’ Equity

11,480,427

10,453,929

13,843,635

 

Statement of Income

 

Operating Revenues

3,753,089

3,941,838

6,390,919

Operating Expenses

3,170,317

3,415,627

5,416,183

Gross Profit

582,772

526,211

974,736

General and Administrative Expenses

336,967

360,337

339,973

Selling and Distribution Expenses

46,524

41,204

50,070

Depreciation (Period)

128,214

117,789

127,192

Other Operating Expenses

18,312

0

19,078

Net Operating Income

180,969

124,670

565,615

Other Revenues

35,809

19,206

49,425

Other Expenses

0

0

227,500

Income Before Interest & Tax

216,778

143,876

387,540

Interest Expenses

116,705

201,449

237,266

Net Income Before Tax

100,073

-57,573

150,274

Income Tax (Period)

0

0

0

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

0

4,220

Board of Directors Remuneration

0

0

10,800

Net Income

100,073

-57,573

135,254

Minority Interest

0

0

0

Net Income Pertains to Shareholders

100,073

-57,573

135,254

 

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

 

 

BANKERS

 

Arab Bank Plc

King Hussein Street

PO Box: 145

Zarqa

Tel: (962-5) 3983381

 

 

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.62.41

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.