MIRA INFORM REPORT
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Report Date : |
23rd May 2006 |
IDENTIFICATION DETAILS
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Name : |
KOLORKOTE NIGERIA LTD |
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Registered Office : |
132 Broad Street Lagos, Nigeria |
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Date of Incorporation : |
March 08, 1982 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacture of Color Coated Aluminium and
Steel Coil of varying widths and gauges. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
REPORT SUMMARY
Name: KolorKote
Nigeria Ltd
Address : Plot 8 Block IV Industrial Estate, Otta Ogun State
Tel: 234-1-722253,
722602, 722613
Fax: 234-1-722712
E-mail: kolkote@linkserve.com.ng
Registered Office: 132
Broad Street Lagos, Nigeria
Date Incorporated: March
08, 1982
Managing Director/CEO: Mr.
Sadip Bhatia
Legal Form: Private
Limited Liability Company
RC No.: 45814
Authorized Capital: 500000000
Line of Business: Manufacture
of Color Coated Aluminium and
Steel
Coil of varying widths and gauges.
Product/Service: Color
coated Aluminium, Steel coil of varying
widths
and gauges, Roofing sheets.
Trade Membership: European
Coil coating Association and National
Coil
coating Association Philadelphia.
Number of Employees: 80
Sales Turnover: Financial information was not provided.
Networth:
Financial Condition:
Operating Trend: Steady
Payments: Prompt
Public: Nothing
detrimental uncovered
Credit Risk: Good
Credit Limit: Medium
term credits possible
Business Relations: Good
for normal business relations
Report Status: Final
– no further information expected.
Data Source: On-Site
Investigation.
BUSINESS RISKS
BUSINESS ENVIRONMENT
Presently, the Nigerian
Economy is improving because the government has put in place a lot of economy
reform. However, the economy is still characterized with low capacity
utilization in the industries, high inflationary trends, unfavourable interest
rate and high unemployment rate.
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NATURE OF BUSINESS
Subject Specializes in manufacturing of color coated Aluminum and
steel coils of varying widths and gauges. These colored coil and strips
constitute the basic industrial raw material. For several manufacturing units
engaged in roofing cladding and metal fabrication for the building and
construction industry.
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THE COMPANY AND ITS INDUSTRY
The Aluminum Industry in Nigeria is dominated by foreign
companies. It is a product that can not easily be imported or smuggled.
Moreover, Kolorkote Nigeria Limited is an active player within
the industry.
-------------------------------------------------------------------------------------CHAIRMAN/MANAGING
DIRECTOR & CEO
Mr. Sadip Bhatia is the Managing Director/CEO. Most decisions
are taken by him in conjunction with his line managers.
-------------------------------------------------------------------------------------COMPANY
VISION
Kolorkote Nigeria Limited intends to maintain leadership
position in the Aluminum industry, through manufacturing of high quality
products that conforms to International standards.
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CASH FLOW & PROFITABILITY
Financial Information was not provided, despite our several
visits and telephone calls to their office.
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MARKET COVERAGE
Subject’s products serve as a household and industrial needs.
Its demand is very high particularly in towns and cities nationwide.
-------------------------------------------------------------------------------------PRODUCT/SERVICE
RANGE
The company is engaged in the manufacturing of:
- Color
Coated Aluminum
- Steel
Coil of Varying Widths and gauges
- Roofing
sheet.
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SOURCE OF RAW
MATERIALS
Raw materials are sourced both locally and broad.
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TECHNOLOGY
& CHANGE
Subject is adapting to technological change in its line of
business. Upgrading its equipment in order to meet the demand of its clients.
-------------------------------------------------------------------------------------COMPETITIVE
ADVANTAGE
- High
grade production
- Large
market
·
Experienced
personnel
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BREAKTHROUGH
PRODUCTS/SERVICES
Subject does not have any breakthrough products. Products
carries equal market strength and values.
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EXISTING COMPETITORS
These are the competitors within the industry:
·
Total
Aluminum group
·
First
Aluminum group
·
Aluminum
Rolling mills
·
Nigerite
Limited
·
Asaba
Aluminum Co Ltd.
·
Supercare
Industries Ltd.
·
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SWOT ANALYSIS
Strengths: Pricing and product quality in depth knowledge
of the market.
Weaknesses: Lack
of adequate fund..
Opportunities: Large
Market
Threats: Unstable government policies
-------------------------------------------------------------------------------------SHAREHOLDERS
Fabian Onwuachu
Yosuf Salami
J. Emmanuel
Rashini Chandaria
Rohit Chandaria
COMMENT: Shareholders percentage cannot be ascertained from the
search we conducted on the subject at corporate affairs.
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AFFILIATED COMPANIES
Information was not provided.
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PROFESSIONAL ADVISERS
Information not available.
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PREMISES
The factory and the administrative office is situated at Plot 8
Block Iv industrial Estate Ota, Ogun State.
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MANAGEMENT PROFILE:
Name Designation
Sadip Bhatia MD/CEO
COMMENTS: Business information on other line managers was not provided.
-------------------------------------------------------------------------------------EMPLOYEES
Eighty
Comment: Subject plans to employ more hands to boost business
operations in the months ahead.
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OWNERSHIP STRUCTURE
Nigeria - Nil
Foreign - 100%
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MARKETING
REPORT
Pricing policy: Competitive
Advertisement/Promotion: Occasionally
Competitive
Analysis
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Price: Competitive
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Location: Operational
office is in Otta.
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Distributive network: Branches in strategic cities and towns in Nigeria.
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Quality of Product/Services: Good
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Advertisement: Occasionally
- Recent deal: Not available
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ECONOMIC TREND
2006
Foreign Exchange Rate to US$ N145
Interest Rate (Lending) 35%
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SUPPORT FACILITIES:
The company has
operational vehicles, computers, machineries and good access roads.
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COMMENT ON CORPORATE REPUTATION
Kolorkote Nigeria Limited already has strong presence with its
current customers for several years and enjoys solid reputation within the
industry and buyer market.
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GLOBAL ECONOMIC
TREND
These are growing opportunities globally in Aluminum industry.
However, the business is very interesting, challenging and highly capital
intensive.
FINANCIAL INFORMATION
Financial Information was not provided by subject’s principles
despite numerous call and visit to their office.
Profit and Loss Account AS AT 31st
December 2001
CREDIT
STANDING
Judgment
about subject Credit Standing
CHARACTER
The management team is led by Mr.
Sadip Bhatia consists of men of high integrity, hard work. They have some
appreciable experience in their line of business, a factor that has contributed
to their success.
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ABILITY
Kolorkote Nigeria Limited has the ability to enter into financial
contractual obligations as stated in its memorandum and Articles of
Associations.
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MEANS
Business
deals undertaken by Kolorkote Nigeria Limited will be sufficient to meet its
financial commitments.
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PURPOSE
Information
not provided.
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AMOUNT
Subject
can be considered for medium credit assistance to expand its operation.
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REPAYMENT
Any facility granted will be repaid from subject’s operational
cash flow within the agreed period.
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INSURANCE
The
assets of the company are adequately insured with a reputable insurance
company.
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INTEREST
Kolorkote Nigeria Limited is willing to pay the
prevailing interest rate within the economy.
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COMMISSION
Subject
will pay any commission and charges in respect of normal business transaction.
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VITAL GOVERNMENT
CONTACT
Information not provided.
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PAYMENT
HABIT/HISTORY
It’s adjudged regular
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EXECUTIVE
LIFESTYLE
Name: Sadip
Bhatia
Address: Plot
8, Block IV, Industrial Estate, Otta Ogun State.
Home Town/State of Origin: Information
not provided
Nationality: Indian
Age: Information
not provided
Position in the Company: Managing
Director/CEO
Marital Status: Married
Academic Qualification(s):
Professional Qualification(s):
Career Status:
Information
not provided
Number of
Children:
Political Association:
Last Educational Institution Attended with Date:
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PROPERTY OWNED BY
PRINCIPAL
Real Estate
- Number:
-
Information
not provided
Location:
Automobile
Number
-
Brands:
Club Membership
List of Titles:
Hobbies:
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BANKER
Zenith Bank Plc, Lagos, Nigeria.
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INFRASTRUCTURE
PROBLEMS
The provision of basic amenities has witnessed an improvement in
the recent past, power supply, water supply, good road network and
communication.
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STOCK MARKET SHARE MOVEMENT
Subject
is a private limited liability Company its shares are not quoted on the
floor of Nigeria Stock Exchange.
Stock
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Subject
is a private limited liability Company its shares are not quoted on the
floor of Nigeria Stock Exchange. |
Price:
Quantity:
Values of shares:
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LITIGATION
There is none at the time of writing
this report.
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GOVERNMENT REGULATION
Nigerian’s Federal Government has put in place policy that encourage the
influx of foreign companies in Nigeria.
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LEGAL ISSUES
There is no trace of any litigation as
at reporting date.
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LABOUR ISSUES
Kolorkote Nigeria Limited does not
have an organized union.
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CORRUPTION ISSUES
Nigerian’s Federal government has put
in place laws to curb the tide of corruption in Nigeria, the scourge is yet to
be substantially minimized.
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TERRORISM
There is no trace of terrorism in
Nigeria. However, there are occasional knapping of oil workers in the rich oil
zones and communal clashes in Nigeria.
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LOCAL DIVIDEND PAYOUT
REQUIREMENT
Kolorkote is a privately owned
company. Dividend and profit sharing can only be agreed upon by the owners.
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CONCLUSION
Kolorkote Nigeria Limited was
incorporated in Nigeria on 8th March 1982, to carryout the business
of producing coated Aluminum and Steel coils of varying widths and gauges.
Subject is a going concern business in
Nigeria. Meanwhile, financial information was not provided.
RATING EXPLANATIONS
RATING
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STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |