MIRA INFORM REPORT

 

 

Report No. :

326633

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

 

 

Registered Office :

Industrial Area, PO Box 94, Naor 11710

 

 

Country :

Jordan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1980

 

 

Com. Reg. No.:

347

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacture of pharmaceutical preparations, including antacids, antispasmodics, laxatives, analgesics, antipyretics, antihistamines, mucolytics, cough suppressants, diuretics, antidepressants, anxiolytics, vitamins and antilipemics.

 

 

No. of Employees :

520

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 100,000

Status :

Moderate

Payment Behaviour :

Slow but correct

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 and resulting government debt. King ABDALLAH during the 2000s implemented significant economic reforms, such as opening the trade regime and privatizing state-owned companies, that attracted foreign investment and contributed to average annual economic growth of 8% for 2004 through 2008. The global economic slowdown and regional turmoil since, however, reduced the average annual growth rate to 2.6% for the 2010-2013 period and hurt export-oriented sectors, construction, and tourism. Jordan's finances have 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. To diversify its energy mix, Jordan is currently exploring nuclear power generation, exploitation of abundant oil shale reserves and renewable technologies, as well as the import of Israeli offshore gas. In August 2012, to correct budgetary and balance of payments imbalances, Jordan entered into a $2.1 billion, three year International Monetary Fund Stand-By Arrangement. In 2014, fiscal reform measures enacted in the previous few years continued to boost government revenues and reduced the budget deficit even as an influx of over 620,000 Syrian refugees since 2011 put additional pressure on expenditures.

 

Source : CIA


SUMMARY

 

Company Name                                    : JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

Country of Origin                                   : Jordan

Legal Form                                           : Limited Liability Company

Registration Date                                  : 1980

Commercial Registration Number           : 347

Issued Capital                                       : JD 20,000,000

Paid up Capital                                     : JD 20,000,000

Total Workforce                                     : 520

Activities                                               : Manufacture of pharmaceutical preparations

Financial Condition                                : Poor

Payments                                             : Nothing detrimental uncovered

Recommended Credit Limit                    : US$ 100,000

 


COMPANY NAME

 

JORDANIAN PHARMACEUTICAL MANUFACTURING CO PLC (JPM)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Industrial Area

PO Box            : 94

Town                : Naor 11710

Country             : Jordan

Telephone         : (962-6) 5727207 / 5728160

Facsimile          : (962-6) 5727641 / 5865567

Email                : jpm@go.com.jo / info@jpm.com.jo

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Naor.

 

Branch Office (s)

 

Location                                                                                               Description

 

PO Box: 851658                                                                                    Office premises

Abdali Area

Amman 11185

Tel: (962-6) 5661911

Fax: (962-6) 5691559

 

Al Razi                                                                                                  Office premises

PO Box: 151

Um Amad 16197

Tel: (962-6) 4290744

Fax: (962-6) 4290952

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Saleh Mousa Al Shanteer                                                           Chairman

 

Dr Adnan A H Badwan                                                               Managing Director

 

Lina Bahouth Owais                                                                   Director

 

Mohamed Ganayem                                                                  Director

 

Sofian Al Sartoui                                                                       Director

 

Ahmed Saad Saheen                                                                 Director

 

Zakieh Alkurdi                                                                            Director

 

Dr Zaid Al Shedfan                                                                    Production Manager

 

Lina Al Nabulsi                                                                          Marketing Manager

 

Murad Abed Al Karim                                                                Financial Manager

 

Mohammed Abdel Kareem                                                         Manufacturing Manager

 

Mahmoud Abboud                                                                    Marketing Executive

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1980

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 347

 

Issued Capital              : JD 20,000,000

 

Paid up Capital            : JD 20,000,000

 

Name of Shareholder (s)                                                                                 Percentage

 

Islamic Corporation for Private Sector Development                                           28.316%

 

Jordan Islamic Bank                                                                                          26.560%

 

Abdel Moneim Bin Rashid Bin Abdul Rahman Al Rashed                                     12.037%

 

Housing Reconcile Development Holding Co                                                        4.439%

Bahrain

 

Rashed Abdul Rahman Al Rashed & Sons                                                            4.119%

Saudi Arabia

 

Sufian Ibrahim Yassin                                                                                        1.623%

 

Company Secretary for Investment                                                                      1.246%

Jordan

 

Jordanian businessmen and private investors                                                     21.660%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of pharmaceutical preparations, including antacids, antispasmodics, laxatives, analgesics, antipyretics, antihistamines, mucolytics, cough suppressants, diuretics, antidepressants, anxiolytics, vitamins and antilipemics.

 

Import Countries: Germany, France, the United Kingdom and the United States of America

 

Export Countries: Lebanon, Yemen, Algeria, Sudan, Bahrain, Oman, Saudi Arabia, Ethiopia, Bosnia and Germany

 

Subject has a workforce of approximately 520 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Jordanian Dinars (JD)

 

Balance Sheet                                                                            31/12/13                   31/12/12                   31/12/11

 

Cash on Hand & at Banks

189,324

225,030

159,953

Accounts Receivable, Net

19,606,376

18,015,112

18,451,187

Notes Receivable

0

0

0

Post Dated Cheques

854,622

2,134,215

3,215,287

Short Term Investments

0

0

0

Inventory

8,882,825

10,142,067

9,792,423

Spare Parts

0

0

0

Total Current Assets

36,543,261

39,363,987

41,993,417

Long Term Investments

10,725,142

9,738,963

10,638,963

Fixed Assets, Net

5,700,429

6,201,687

6,975,280

Lands

0

0

0

Projects in Progress

0

50,000

50,000

Total Fixed Assets

5,700,429

6,251,687

7,025,280

Other Assets

13,957,614

13,733,745

13,806,919

Total Assets

66,926,446

69,088,382

73,464,579

 

Accounts and Notes

Payable

7,548,924

12,562,430

3,448,444

Credit Banks

955,648

833,114

320,372

Short Term Loans

0

0

1,112,970

Accrued Part of Long Term Loans

0

0

0

Total Current Liabilities

13,885,162

19,419,542

14,128,735

Long Term Loans & Notes Payable

8,676,687

15,025,456

7,568,196

Corporate Bonds

0

0

0

Other Liabilities

11,471,316

0

9,063,287

Total Liabilities

34,033,165

34,444,998

30,760,218

Authorized Capital

20,000,000

20,000,000

20,000,000

Subscribed Capital

20,000,000

20,000,000

20,000,000

Paid in Capital

20,000,000

20,000,000

20,000,000

Compulsory Reserves

1,617,527

1,617,527

1,818,939

Voluntary Reserve

6,085,839

6,085,839

6,085,839

Other Reserves

0

0

0

Issuance Premium

2,000,000

2,000,000

2,000,000

Issuance Discount

0

0

0

Treasury Stocks

0

0

0

Proposed Cash Dividends

0

0

0

Proposed Stock Dividends

0

0

0

Accumulated Change in Fair Value

436,720

436,720

436,720

Retained Earnings

2,205,067

3,979,280

11,771,638

Total Shareholders’ Equity

32,345,153

34,119,366

42,113,136

Minority Interest

548,128

524,018

591,225

Total Liabilities & Shareholders’ Equity

66,926,446

69,088,382

73,464,579

 

Income Statement

 

Operating Revenues

26,128,822

35,853,042

29,163,326

Operating Expenses

9,611,986

10,102,453

8,651,387

Gross Profit

16,516,836

25,750,589

20,511,939

General and Administrative Expenses

2,333,282

2,154,094

1,907,801

Selling and Distribution Expenses

14,638,497

20,093,922

11,945,987

Depreciation (Period)

1,853,650

1,885,450

1,702,269

Other Operating Expenses

1,000,000

1,159,494

1,096,980

Net Operating Income

-1,454,943

2,343,079

5,561,171

Other Revenues

1,510,866

7,501

420,526

Other Expenses

849,702

2,135,707

3,239,998

Income Before Interest & Tax

-793,779

214,873

2,741,699

Interest Expenses

955,323

1,473,032

644,893

Net Income Before Tax

-1,749,102

-1,258,159

2,096,806

Income Tax (Period)

1,001

140,721

83,553

Income Tax (Previous Years)

0

0

0

Universities and Research Train Fees

0

0

0

Board of Directors Remuneration

0

45,000

45,000

Net Income

-1,750,103

-1,443,880

1,968,253

Minority Interest

24,110

72,922

21,919

Net Income Pertains to Shareholders

-1,774,213

-1,516,802

1,946,334

 

Local sources consider subject’s financial condition to be Poor

 

 

BANKERS

 

Arab Bank Plc

Abdali Branch

PO Box: 926607

Amman

Tel: (962-6) 5627271

Fax: (962-6) 5649305

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

CREDIT Recommendation

 

 

Recommended credit limit:                  US$ 100,000

 

 

GENERAL COMMENTS

 

Established in 1980, subject is involved in the manufacture of pharmaceutical preparations and exports its products throughout the Middle East and Africa.

 

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.64.11

UK Pound

1

Rs.100.31

Euro

1

Rs.72.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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.