AMMAN: Jordan Vegetable Oil Industries Company ( JVOI ) is suing distributors and buyers for about JD3.2 million owed to it within the normal course of business activity.
In a disclosure to the Jordan Securities Commission, the company said the lawsuits entailed dues in the form of receivables and bounced cheques. According to the balance sheet as of June 30, 2015, JVOI ‘s receivables totalled JD3.5 million.
The commercial receivables as shown in the balance sheet at the end of last year amounted to JD5.5 million. Out of this figure, JD2.9 million was deducted as a provision for doubtful assets, leaving net commercial receivables at JD2.6 million. The total became JD3.5 million when around JD0.8 million in cheques under collection and other dues were added.
At the end of 2013, net commercial receivables was higher at JD3.8 million. The auditor said in notes accompanying the 2014 balance sheet that the company expects to collect the doubtful assets in full. “The company filed lawsuits to collect the doubtful assets it is owed by debtors,” the notes stated. ” JVOI obtained some guarantees from a limited number of clients but for the remaining receivables, the company does not require security.”
Board Chairman Kameel Saad Al Deen told the shareholders in the annual report that the company was continuing a precautionary approach by computing a yearly provision against previous dues whose collection remained doubtful.
