MIRA INFORM REPORT

 

 

Report Date :

01.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ARAB FERTILIZERS AND CHEMICAL INDUSTRIES LTD (KEMAPCO)

 

 

Registered Office :

Insurance Building, 5th Floor, Al Sharq Street, Jabal Amman, P O Box: 927783, Amman 11190

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1990

 

 

Com. Reg. No.:

35

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of industrial chemicals including potassium nitrate and dicalcium phosphate.

 

 

No. of Employees :

250

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 FERTILIZERS AND CHEMICAL INDUSTRIES LTD (KEMAPCO)

Country of Origin                                   : Jordan

Legal Form                                           : Limited Liability Company

Date Started                                         : 1990

Registration Date                                  : 28th February 2004

Commercial Registration Number           : 35

Issued Capital                                       : JD 29,000,000

Paid up Capital                                     : JD 29,000,000

Total Workforce                                    : 250

Activities                                               : Manufacture of industrial chemicals

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Wael Al Badour, Finance Manager


COMPANY NAME

 

ARAB FERTILIZERS AND CHEMICAL INDUSTRIES LTD (KEMAPCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Insurance Building, 5th Floor

Street               : Al Sharq Street

Area                 : Jabal Amman

 

PO Box            : 927783

 

Town                : Amman 11190

Country             : Jordan

 

Telephone         : (962-6) 4601993 / 4601994 / 5684247

Facsimile          : (962-6) 4601195 / 5691169

Email                : kemapco@kemapco.com.jo

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Amman.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Derra Industrial Zone                                                             Owned factory premises covering

PO Box: 2564                                                                                   an area of 126,000 sq metres

Aqaba 77110

Tel: (962-3) 2017174

Fax: (962-3) 2017181

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       HE Jamal A Al Sarayrah                                                                    Chairman

 

·       Bassam Al Zoumot                                                                           Managing Director

 

·       Thamer Obiydat                                                                                Director

 

·       Nabih Laham                                                                                    Director

 

·       Mayson Bahoos                                                                               Commercial Manager

 

·       Amjad Karaja                                                                                    Production Manager

 

·       Anas Al Majali                                                                                  Human Resources Manager

 

·       Wael Al Badour                                                                                Finance Manager

 

·       Khaled Al Saggar                                                                             Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1990, however it was registered on 28th February 2004

 

History                         : Subject was formed as a joint venture between Kemira Agro Oy and the Arab Potash

  Company Ltd. On 1st February 2007, Kemira Agro Oy divested its 50% shareholding in the

  subject. Kemapco is now fully owned by the Arab Potash Company Ltd. Following the

  divestment process the company name was changed on 1st August 2007 to “Arab Fertilizers

  and Chemical Industries Ltd”. The name Kemapco has been maintained as a trade mark

  and a short form name.

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 35

 

Issued Capital              : JD 29,000,000

 

Paid up Capital            : JD 29,000,000

 

Name of Shareholder (s)                                              Percentage

 

·       Arab Potash Company Ltd                                            100%

     APC Building

     6 Al Jahidh Street

     Shmeisani

     PO Box: 1470

     Amman 11118

     Jordan

     Tel: (962-6) 5666165 / 5666166 / 5666167

     Fax: (962-6) 5692855 / 5674416 / 5687289

 

 

AFFILIATED COMPANIES

 

Subject is a member of the APC Group Of Companies, which consists of the following concerns:

 

     Name                                                                                   Stake Held

 

·       Jordan Dead Sea Industries                                                      99.7%

PO Box: 212307

     Amman 11121

     Tel: (962-6) 4618571

     Fax: (962-6) 4619125

 

·       Jordan Magnesia Company Ltd (JORMAG)                                55.3%

PO Box: 941701

Amman 11194

Tel: (962-6) 5691201 / 5691202 / 5691203

Fax: (962-6) 5691156

Email: info@jormag.com

 

·       Numeira Mixed Salts & Mud Company Ltd                                 52.7%

PO Box: 941681

Amman 11118

Tel: (962-6) 5683892 / 5683637

Fax: (962-6) 5672346

Email: info@numeira.com.jo

 

·       Jordan Bromine Company                                                         50.0%

 

·       Jordan Investment and South Development Company                42.0%

 

·       South Development Company for Industrial                               22.0%

Equipment & Workshops

 

·       Nippon Jordan Fertiliser Company Ltd                                       20.0%

 

·       Jordan International Chartering Company                                   20.0%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of industrial chemicals including potassium nitrate and dicalcium phosphate.

 

Production Capacity:    150,000 tonnes per annum of Potassium Nitrate

                                      75,000 tonnes per annum of Dicalcium Phosphate

 

Import Countries: India, China and Europe

 

International Suppliers:

 

·       K S Kali GmbH                     Germany

·       Herous                                 Germany

·       SIKA                                    Italy

 

Operating Trend: Steady

 

Subject has a workforce of approximately 250 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

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

 

Total Revenue                           JD 76,120,000                           JD 78,835,000

 

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

 

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

 

 

BANKERS

 

·       Arab Banking Corp

PO Box: 927783

Amman 11190

     Tel: (962-6) 4601993/4

     Fax: (962-6) 4601995

 

 

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.61.61

UK Pound

1

Rs.100.28

Euro

1

Rs.78.21

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.