|
Report No. : |
306963 |
|
Report Date : |
19.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL STEEL
INDUSTRIES LTD (NAST) |
|
|
|
|
Registered Office : |
Wadi Al Osh
Industrial Area, Aujan Area, P O Box: 2059, Zarqa 13110 |
|
|
|
|
Country : |
Jordan |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
09.01.1979 |
|
|
|
|
Com. Reg. No.: |
125, Zarqa |
|
|
|
|
Legal Form : |
Shareholding Company |
|
|
|
|
Line of Business : |
Import and Distribution
of Steel and Raw Materials. |
|
|
|
|
No. of Employees : |
120 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
Company Name :
NATIONAL STEEL INDUSTRIES LTD (NAST)
Country of Origin : Jordan
Legal Form :
Shareholding Company
Registration Date : 9th
January 1979
Commercial
Registration Number : 125, Zarqa
National ID Number : 200013393
Issued Capital : JD
2,281,171
Paid up Capital : JD
2,281,171
Total Workforce : 120
Activities :
Distribution of steel and raw materials
Financial Condition : Fair
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Baker Ahmed,
Financial Controller
NATIONAL STEEL
INDUSTRIES LTD (NAST)
Location : Wadi Al Osh Industrial Area, Aujan
Area
PO Box : 2059
Town : Zarqa 13110
Country : Jordan
Telephone : (962-6) 3652802
Facsimile : (962-6) 3653903
Email : naststeel@nol.com.jo
Please note that subject’s
previous address was, Building 22, Al Imam Malek Street, Jabal Amman, PO Box
2870 Amman.
Subject operates
from a medium sized suite of offices and a factory that are rented and located
in the Industrial Area of Zarqa.
Name Position
·
Dr
Ghassan Riad Mufleh Chairman
·
Hesham
Jamal Saeed Vice
Chairman
·
Dr
Awani Mohamed Abdulrahman Director
·
Mohamed
Riad Saeed Mufleh Director
·
Ahmed
Ghaith Financial
Manager
·
Baker
Ahmed Financial
Controller
Date of Establishment : 9th
January 1979
Legal Form :
Shareholding Company
Commercial
Reg. No. : 125, Zarqa
National
ID No. : 200013393
Issued Capital : JD 2,281,171
Paid up Capital : JD 2,281,171
·
Riad Al
Mufleh & Son Co
Amman
·
Nasri
Al Mufleh Co
Amman
·
Jordan
Iron & Steel Co
·
Local
businessmen and private investors
Activities: Engaged in the import and distribution of steel
and raw materials. Subject will begin production of
reinforced steel bars, square bars, flats
and light angles in mid 2015.
Operating Trend: Steady
Subject has a
workforce of 120 employees.
Financial
highlights provided by local sources are given below:
Currency: Jordanian
Dinars (JD)
Balance Sheet Extracts 31/12/13 31/12/12 31/12/11
|
Cash on Hand
& at Banks |
0 |
0 |
0 |
|
Accounts
Receivable, Net |
237,498 |
398,191 |
371,469 |
|
Notes Receivable |
0 |
0 |
0 |
|
Post Dated
Cheques |
0 |
0 |
0 |
|
Short Term
Investments |
500,940 |
795,654 |
795,654 |
|
Inventory |
128,120 |
236,536 |
723,028 |
|
Spare Parts |
0 |
0 |
0 |
|
1,031,320 |
1,616,577 |
2,121,918 |
|
|
Long Term
Investments |
0 |
0 |
68,285 |
|
Fixed Assets, Net |
1,417,748 |
1,962,755 |
2,266,042 |
|
Lands |
0 |
0 |
0 |
|
Projects in
Progress |
0 |
0 |
0 |
|
Total Fixed
Assets |
1,417,748 |
1,962,755 |
2,266,042 |
|
Other Assets |
0 |
0 |
0 |
|
2,449,068 |
3,579,332 |
4,456,245 |
|
Accounts and
Notes Payable |
183,875 |
181,173 |
338,303 |
|
Credit Banks |
500,000 |
1,976,862 |
1,897,961 |
|
Short Term Loans |
0 |
0 |
409,026 |
|
Accrued Part of
Long Term Loans |
0 |
0 |
0 |
|
Total Current
Liabilities |
1,162,798 |
2,281,523 |
2,765,232 |
|
Long Term Loans
& Notes Payable |
0 |
0 |
546,223 |
|
Corporate Bonds |
0 |
0 |
0 |
|
Other Liabilities |
0 |
0 |
0 |
|
1,162,798 |
2,281,523 |
3,311,455 |
|
Authorized
Capital |
3,000,000 |
2,342,562 |
6,000,000 |
|
1,171,281 |
2,342,562 |
2,342,562 |
|
|
Paid in Capital |
1,171,281 |
2,342,562 |
2,342,562 |
|
Compulsory
Reserves |
558,680 |
558,680 |
558,680 |
|
Voluntary Reserve |
0 |
0 |
0 |
|
Other Reserves |
-51,691 |
-51,691 |
0 |
|
Issuance Premium |
0 |
0 |
0 |
|
Issuance Discount |
0 |
0 |
0 |
|
Treasury Stocks |
0 |
0 |
0 |
|
0 |
0 |
0 |
|
|
Proposed Stock
Dividends |
0 |
0 |
0 |
|
Accumulated Change
in Fair Value |
-9,259 |
0 |
-47,318 |
|
-465,418 |
-1,665,361 |
-1,822,753 |
|
|
1,203,593 |
1,184,190 |
1,031,171 |
|
|
Minority Interest |
82,677 |
113,619 |
113,619 |
|
2,449,068 |
3,579,332 |
4,456,245 |
Income Statement Extracts
|
Operating
Revenues |
196,967 |
1,855,867 |
2,591,444 |
|
Operating
Expenses |
790,096 |
1,864,766 |
2,882,456 |
|
Gross Profit |
-593,129 |
-8,899 |
-291,012 |
|
General and
Administrative Expenses |
216,427 |
188,830 |
205,481 |
|
Selling and
Distribution Expenses |
0 |
0 |
0 |
|
Depreciation
(Period) |
530,393 |
50,057 |
83,886 |
|
Other Operating
Expenses |
0 |
0 |
0 |
|
Net Operating
Income |
-809,556 |
-197,729 |
-496,493 |
|
Other Revenues |
979,830 |
452,017 |
37,379 |
|
Other Expenses |
120,326 |
21,094 |
17,500 |
|
Income Before
Interest & Tax |
49,948 |
233,194 |
-476,614 |
|
Interest Expenses |
34,688 |
123,807 |
182,955 |
|
Net Income Before
Tax |
15,260 |
109,387 |
-659,569 |
|
Income Tax
(Period) |
0 |
0 |
0 |
|
Income Tax
(Previous Years) |
0 |
0 |
0 |
|
Universities and
Research Train Fees |
0 |
0 |
0 |
|
Board of
Directors Remuneration |
0 |
0 |
0 |
|
Net Income |
15,260 |
109,387 |
-659,569 |
|
Minority Interest |
-16,587 |
3,686 |
3,674 |
|
31,847 |
105,701 |
-663,243 |
Local sources
consider subject’s financial condition to be Fair.
·
Arab
Bank Plc
Shmeisani Branch
PO Box: 950545 & 950544
Amman 11195
Tel: (962-6) 5607231 / 5607115
Fax: (962-6) 5606793 / 5606830
No complaints
regarding subject’s payments have been reported.
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.62.25 |
|
|
1 |
Rs.95.57 |
|
Euro |
1 |
Rs.71.01 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.