MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	AL HAYAT PHARMACEUTICAL INDUSTRIES CO PSC (HPIC)
Registered Office :	Sayegh Complex Abdali PO Box 1564 Amman 11118
Country :	Jordan
Financials (as on) :	31.12.2012
Date of Incorporation :	June 1994
Com. Reg. No.:	371, Amman
Legal Form :	Private Shareholding Company
Line of Business :	Engaged in the manufacture 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 – 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 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 : 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)

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 31/12/12 31/12/11 31/12/10

Cash on Hand & at Banks	806,165	968,246	357,807
Accounts Receivable, Net	4,126,258	3,016,068	3,598,132
Notes Receivable	0	0	0
Post Dated Cheques	1,328,415	1,047,596	118,500
Short Term Investments	0	0	0
Inventory	1,746,220	1,662,075	969,602
Spare Parts	0	129,536	119,006
Total Current Assets	8,197,376	6,882,353	6,159,402
Long Term Investments	0	0	0
Fixed Assets, Net	5,620,854	5,554,711	5,736,222
Lands	0	0	0
Projects in Progress	0	0	0
Total Fixed Assets	5,620,854	5,554,711	5,736,222
Other Assets	0	84,383	223,979
Total Assets	13,818,230	12,521,447	12,119,603
Accounts and Notes Payable	582,537	651,062	430,027
Credit Banks	75,360	196,555	315,238
Short Term Loans	0	0	0
Accrued Part of Long Term Loans	0	0	0
Total Current Liabilities	1,613,166	1,318,540	1,127,519
Long Term Loans & Notes Payable	0	0	0
Corporate Bonds	0	0	0
Other Liabilities	0	0	0
Total Liabilities	1,613,166	1,318,540	1,127,519
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	642,390	437,890	327,745
Voluntary Reserve	453,184	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	950,000	712,500	0
Proposed Stock Dividends	0	0	0
Accumulated Change in Fair Value	0	0	0
Retained Earnings	659,490	508,333	1,120,155
Total Shareholders’ Equity	12,205,064	11,202,907	10,992,084
Minority Interest	0	0	0
Total Liabilities & Shareholders’ Equity	13,818,230	12,521,447	12,119,603

Income Statement

Operating Revenues	8,443,660	6,269,094	4,995,087
Operating Expenses	2,699,008	1,950,492	1,705,403
Gross Profit	5,744,652	4,318,602	3,289,684
General and Administrative Expenses	966,521	793,177	670,778
Selling and Distribution Expenses	1,998,446	2,054,461	1,811,318
Depreciation (Period)	340,391	333,559	295,032
Other Operating Expenses	483,303	350,861	236,692
Net Operating Income	2,296,382	1,120,103	570,896
Other Revenues	21,017	12,803	42,230
Other Expenses	249,923	0	0
Income Before Interest & Tax	2,067,476	1,132,906	613,126
Interest Expenses	22,470	31,454	36,296
Net Income Before Tax	2,045,006	1,101,452	576,830
Income Tax (Period)	295,349	143,129	35,125
Income Tax (Previous Years)	0	0	0
Universities and Research Train Fees	0	0	5,768
Board of Directors Remuneration	35,000	35,000	35,000
Net Income	1,714,657	923,323	500,937
Minority Interest	0	0	0
Net Income Pertains to Shareholders	1,714,657	923,323	500,937

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

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

Credit amount 9,000

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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIS

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.