|
|
|
MIRA INFORM REPORT
|
Report No. : |
510518 |
|
Report Date : |
24.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT
HOUSE ELECTROMECHANICAL CO |
|
|
|
|
Registered Office : |
Building No. 292,
Khalda Area, P O Box: 840052, Amman 11184 |
|
|
|
|
Country : |
Jordan |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
23.11.1995 |
|
|
|
|
Com. Reg. No.: |
4183 |
|
|
|
|
Legal Form : |
Limited Liability
Company |
|
|
|
|
Line of Business : |
Import and
distribution of electrical supplies for
stations and sub-stations, including transformers, cables, conductors, KWH
metres, testing equipment, distribution boards and lighting systems. |
|
|
|
|
No. of Employees : |
15 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Jordan |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 and underemployment, budget and current account deficits, and government debt.
King ABDALLAH, during the first decade of the 2000s, implemented significant economic reforms, such as expanding foreign trade 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 contributed to slower growth from 2010 to 2017 - with growth averaging 2.6% per year - and hurt export-oriented sectors, construction, and tourism. Since the onset of the civil war in Syria and resulting refugee crisis, one of Jordan’s most pressing socioeconomic challenges has been managing the influx of 650,000 UN-registered refugees, more than 80% of whom live in Jordan’s urban areas. Jordan’s own official census estimated the refugee number at 1.3 million as of early 2016.
Jordan is nearly completely dependent on imported energy—mostly natural gas—and energy consistently makes up 25-30 percent of Jordan’s imports. To diversify its energy mix, Jordan has secured several contracts for liquefied natural gas and 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 2016, Jordan and the IMF agreed to a $723 million Extended Fund Facility that aims to build on the three-year, $2.1 billion IMF program that ended in August 2015 with the goal of helping Jordan correct budgetary and balance of payments imbalances.
|
Source
: CIA |
SUMMARY
Company Name : ORIENT HOUSE ELECTROMECHANICAL CO
Country of Origin : Jordan
Legal Form :
Limited Liability Company
Registration Date : 23rd
November 1995
Commercial
Registration Number : 4183
National ID Number : 20001133
Issued Capital : JD
150,000
Paid up Capital : JD
150,000
Total Workforce :
15
Activities :
Distributors of electrical supplies for
stations and sub-stations
Financial Condition : Fair
Payments :
No Complaints
Operating Trend : Steady
Person Interviewed : Yasmine Tariq, Sales Manager
COMPANY
NAME
ORIENT
HOUSE ELECTROMECHANICAL CO
ADDRESS
Registered & Physical
Address
Building : Building No. 292
Area : Khalda
Area
PO Box : 840052
Town : Amman 11184
Country : Jordan
Telephone : (962-6) 5339245 / 5334887 / 5332476
Facsimile : (962-6) 5334887
Mobile : (962-79) 5544599
Email : ohe@go.com.jo / info@ohejo.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Amman.
KEY
PRINCIPALS
Name Position
·
Zuhair Hafiq Halawani Managing
Director
·
Omar Zuhair Hafiq Halawani Director
·
Yasmine Tariq Sales
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 23rd
November 1995
Legal Form :
Limited Liability Company
Commercial Reg. No. : 4183
National ID No. : 20001133
Issued Capital : JD 150,000
Paid up Capital : JD 150,000
Name of Shareholder (s) Percentage
·
Zuhair Hafiq Halawani 80%
·
Omar Zuhair Hafiq Halawani 20%
Note
to the Legal Form
The
limited liability company may be composed of two or more shareholders whether
legal or natural persons, each responsible
only for the liabilities of the company to the extent of their share
participation in the capital of the company.
The limited liability company may not offer its shares for public subscription
or increase its capital or borrow by
subscription. The minimum capital for foreign investments is fifty thousand
Jordanian dinars (JOD 50,000) for each non-Jordanian Shareholder.
OPERATIONS
Activities: Engaged in the import and distribution of electrical supplies for stations and sub-stations, including
transformers, cables, conductors, KWH
metres, testing equipment, distribution boards and lighting
systems.
Import
Countries: Indonesia,
Italy, Brazil, United Kingdom, German, Malaysia and Turkey
International Suppliers:
- Federal Power
SDN BHD Malaysia
- Turkkabia Turkey
- PT Fuji
Daharma Electric Indonesia
- Zera Germany
- Elcon Megarad Italy
- MK Novar
International United
Kingdom
- Gewiss Italy
- Cembre SPA Italy
- CBS United
Kingdom
- Ritz Brazil
- Polaron United
Kingdom
- Zennaro Italy
- PT GT Kable
Indonesia Indonesia
Clients:
·
Electromechanical
Contractors
·
Water
Authority
·
Industrial
Plants
·
Hospitals
·
Hotels
·
Armed
Forces
·
Electric
Utilities
Operating Trend: Steady
Subject has a
workforce of 15 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Jordanian
Dinar (JD)
Year Sales
Year Ending
31/12/15: JD
1,750,000
Year Ending
31/12/16: JD
1,920,000
Year Ending
31/12/17: JD
2,350,000
Local sources
consider subject’s financial condition to be Fair.
Note:
According
to Jordanian Commercial Law, only Public Shareholding Companies (Listed on the
Amman Stock Market) are required to publish
their financial information. Financial information on other legal forms can
only be obtained from the companies / businesses directly
BANKERS
·
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.
GENERAL
COMMENTS
During the course
of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
- Interview with Yasmine
Tariq, Sales Manager
The subject and its
shareholders/owners have been searched in the following databases; Office of
Foreign Assets Control (OFAC), United Nations Security Council Sanctions,
Australian Sanctions List, US Consolidated Sanctions List, EU Financial
Sanctions List and UK Financial Sanctions List and nothing adverse could be
found on the exact names listed within the report.
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.
COUNTRY
OUTLOOK
GDP growth moderated during 2015 to an
estimated 2.4 %, the slowest pace in four years, magnifying already-high
unemployment. Security spill overs from regional conflict worsened, negatively
impacting tourism, construction, investment and trade. However, growth in a
number of sectors held up well through the third quarter of 2015, including in
finance and insurance services, transport, storage and communications,
electricity and water, and mining and quarrying. Unemployment rose to 13.0 % in
2015, an increase of 1.1 % age points relative to 2014. There was a mild
deflation for most of 2015 due to further falls in global oil prices, a
weakened Euro, a negative output gap, and easing of supply side pressures
experienced in previous years (notably on housing prices, due to the large
influx of refugees in 2012-13). Monetary policy remained expansionary with the
central bank reducing the key policy lending rate by 125 basis points during
the course of 2015. International reserves slightly rose to $ 14.2 billion (7.5
months of imports) by end-2015.
The fiscal deficit was narrower in 2015 thanks
to lower expenditures and lower transfers to the National Electric Power
Company (NEPCO), which outweighed the fall in domestic revenues and grants. NEPCO
resorted to borrowing from commercial banks instead of the government in 2015
providing a 7.0 % of GDP relief to the fiscal balance, without which the fiscal
deficit would have widened. NEPCO’s debt continues to be government guaranteed
and combined with the fiscal deficit and slowing GDP growth contributed to
pushing the gross debt to GDP ratio to an estimated 93 % at end-2015.
The current account deficit is expected to
have widened in 2015, mainly due to lower public transfers and a 7.1 % fall in
tourism receipts, and despite a narrowing trade deficit. The merchandise
trade balance narrowed by 14 % on account of a 40.4 % fall in energy imports.
These outweighed a 7.1 % contraction of direct exports (themselves buttressed
by 10.9 % growth in phosphate exports) affected by land trade route closures
with Syria and Iraq, traditionally Jordan’s largest export partner. Remittances
are slowing, growing by only 1.5 % during 2015.
Growth is expected to improve to 3.0 % in
2016, assuming no further worsening in the regional security situation and
associated spill overs. This is driven by an expansion in mining and
quarrying sector and positive base effect of tourism and construction sectors.
Jordan is working towards an Extended Fund Facility (EFF) with the IMF. The EFF
is anticipated to support further fiscal consolidation efforts in parallel with
growth-enhancing and job-creating structural reforms. The baseline growth
forecasts assume agreement on an EFF leading to a fiscal adjustment and a lower
debt-to-GDP level. The balance of risks is on the downside. Managing
repercussions from the regional security and political situation is a key risk
in addition to the challenges of hosting a substantial number of Syrian
refugees. Additionally, persistently low oil prices are a risk this year and in
the medium term, given their potential impact on remittances, exports, FDI and
grants from the GCC. Fiscal adjustment measures are likely to be difficult.
Furthermore, the willingness and speed of reform implementation particularly to
improve the business climate will be crucial to meet the country’s investment
aspirations.
Key Economic
Indicators 2014 2015 2016* 2017*
Real GDP Growth (%) 3.1 2.4 3.0
3.3
Inflation Rate (%)
2.9 -0.9 1.3 2.7
Fiscal Balance (%
of GDP) -9.1 -3.4 -2.1 -1.3
Current Account
Balance (% of GDP) -1.0 -9.1 -6.6 -6.0
*
forecast
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 68.21 |
|
|
1 |
INR 91.43 |
|
Euro |
1 |
INR 80.24 |
|
JOD |
1 |
INR 96.30 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.