MIRA
INFORM REPORT
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Report Date : |
18.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
FOOD AND PHARMA NIGERIA LIMITED |
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Registered Office : |
1A, Ogunlowo Street, Adeniyi Jones, Ikeja, Lagos |
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Country : |
Nigeria |
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Date of Incorporation : |
2nd April 2001 |
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Com. Reg. No.: |
RC: 407121 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing, Importation and distribution of pharmaceutical
Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
IDENTIFICATION
ENQUIRY NAME: FOOD AND PHARMA PRODUCTS (NIGERIA) LIMITED
COMPANY NAME: FOOD AND PHARMA NIGERIA LIMITED
REGISTERED
NAME: FOOD AND PHARMA
NIGERIA LIMITED
REGISTERED
ADDRESS: 1A, Ogunlowo Street, Adeniyi Jones, Ikeja, Lagos
HEAD OFFICE
ADDRESS: 6, Ijora Causeway, Ijora,
Lagos
TELEPHONE(S): 234-1-5452729, 5452749,
4719460
FAX: Nil
MOBILE: 234-1-5452729,
5452749, 4719460
E-MAIL: Nil
WEBSITE: Nil
POSTAL ADDRESS: P.O.Box,
5733, Marina Lagos.
Subject is into Manufacturing, Importation and distribution of
pharmaceutical Products
In Nigeria subject is considered to be a medium scale concern in this
sector.
Currency: All
monetary values in this report are in Nigerian Naira, the local currency,
except otherwise stated. The exchange rate is N123.83 to 1 US $.
SUMMARY
NATURE OF PREMISES: Leased,
office space at head office occupying approximately 120 square metres.
DATE INCORPORATED: 2nd
April 2001
YEAR BEGAN
OPERATION: 2001
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
407121
SHARE CAPITAL: N1,
000, 000.00
ALLOTTED SHARE
CAPITAL: N1, 000, 000.00
PAID-UP CAPITAL N1, 000, 000.00
AUDITORS: Nil
SOLICITORS: Nil
COMPANY SECRETARY: Nil
STAFF
STRENGHT: 30
OWNERSHIP/SHAREHOLDING
STRUCTURE
Name %Held
Prince Aghatise Erediuwa
24
1A, Ogunlowo Street,
Adeniyi Jones, Ikeja,
Lagos
Olusola Solarin 28
1A, Ogunlowo Street,
Adeniyi Jones, Ikeja,
Lagos
Doreen Abegunde 28
1A, Ogunlowo Street,
Adeniyi Jones, Ikeja,
Lagos
Ogunbiyi Akin 20
1A, Ogunlowo Street,
Adeniyi Jones, Ikeja,
Lagos
SHARE HOLDERS (PREVIOUS)
Nil
DIRECTORS
Prince Aghatise Erediuwa
Olusola Solarin
Doreen Abegunde
Ogunbiyi Akin
MANAGEMENT PROFILE
Mr. Kunle Shoga Finance
and Administrative Officer
Mr. Milind (Indian) Assistant Manager
Prince Aghatise Erediuwa Director
Olusola Solarin Director
Doreen Abegunde Director
Ogunbiyi Akin Director
PARENT COMPANY
Nil
BRANCHES
Nil
BANKER
Zenith Bank Plc.
Lagos, Nigeria
TRADE REFERENCES
Local and Foreign
PAYMENT REFERENCES
Local and Foreign
PRODUCT DESCRIPTION
Pharmaceutical Products
PERFORMANCE RANKING
* Quality of Management:
GOOD
* Ethics & Integrity: GOOD
* Ownership Structure:
GOOD
OPERATIONS
Subject is into Manufacturing, Importation and distribution of pharmaceutical
Products
Subject is located in industrial area at 6, Ijora Causeway, Ijora, Lagos
OUR PARTNERS
Nil
TYPES OF CUSTOMERS
*General Public, Group of Companies, Foreign Companies etc.
BACKGROUND
The company is one of the major manufacturers of Pharmaceutical products
in Nigeria registered with Corporate Affairs Commission in 2001 with
registration number RC 407121. Some of the products they produce include
Feriplus, Nicotine, Syrups, etc.
According to the spokes persons, Mr. Milind, who stood in for the Chief
Executive Officer, and Mr. Kunle Shoga who is the company’s Finance and
Administrative Officer; F&P as the company is commonly referred to have
procedures in divulging information. Notwithstanding, information gathered by
our team of investigators who visited the company premises on the 14th
of December 2007, reveals that F&P is truly into production of
pharmaceutical products as it was displayed at the reception.
The contact persons spoken with advised that we should Endeavour to pay another
visit the following week in order for us to meet with the Chief Executive
Officer who is on a trip to India.
EXPANSION PLAN
Nil
PRINCIPAL ANTECEDENT
Nil
PHYSICAL VISIT
Visits were made to the followings:
COMPANY PREMISES
CORPORATE AFFAIRS COMMISSION.
FINANCES
Subject audited account was not available as at the time of compiling
this report.
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ASSESSMENT: |
Apparently healthy, with adequate working capital to meet normal
commitments. |
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CREDIT LINE
AMOUNT: |
FAIR |
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CREDIT LINE
OPINION: |
Transaction with subject is considered to be fair trade risk |
DIRECT INTERVIEW
Mr. Milind Assistant
Manager
Mr. Kunle Shoga Finance
and Administrative
INDUSTRIAL OVERVIEW/ OPERATING
ENVIRONMENT
The pharmaceutical industry is very important to the economy of every
country. Pharmaceuticals, especially drugs, are so priceless that no nation can
survive without them and every serious-minded government pays great attention
to drugs. Drugs are so important that the World Health organization (WHO)
recommends a National Drug Policy for every country. Nigeria’s pharmaceutical
market is large, considering the size of the population growth it is likely to
increase speedily in the coming years, because the country has a huge
potential. Aside from being Africa’s most populous nation, there is an
entrepreneurial ethic in the country, which could help the pharmaceutical sector
develop rapidly.
Nevertheless, the national health system still suffers from low levels
of funding and total per capita healthcare expenditure which is well below
US$10.
Arguably, the key problem facing the sector is the scourge of
counterfeit drugs, which account for approximately half of all drug sales in
the country. Unsafe medicines kill thousands of people each year, also
undermine the local manufacturing sector, and deter multinationals. However,
the National Agency for Food and Drug Administration and Control (NAFDAC) is
fighting to stem the illicit trade, conducting 15, 697 raids between 2001 and
2006. Although this had had an impact, the trade continues unabated, due to
high demand for affordable treatments. Nonetheless, the activities of NAFDAC
have greatly encouraged more indigenous players in this sector.
Despite the apparent growth in the number of indigenous players in the
industry, there remains the fact that no company has set up a basic active raw
material manufacturing plant in Nigeria, not even for Paracetamol or Aspirin.
The pharmaceutical industry is greatly challenged in this regard.
The amendment of the Essential Drug List (EDL) decree restricting the
application only to public health institutions was the first tonic to the industry.
With the amendment to this decree, companies were able to expand their product
base, resuscitate abandoned product lines, and increase their volume, turnover
and profit margins. Industries were able to source their raw materials and
equipment, free from encumbrances. This was of great benefit.
The abolition of Value Added Tax (VAT) on pharmaceutical raw materials,
coupled with the reduction of tariff on raw materials and equipment by the
Nigerian government have greatly encouraged the pharmaceutical industry.
NAFDAC’s differential tariff and its war against fake drugs are now
creating a boom for the pharmaceutical industry. Presently, there are
eighty-six (86) local pharmaceutical manufacturing companies producing only
about 30% of Nigeria’s drug need.
CMT REPORT (Corruption, Money
Laundering & Terrorism)
Public Notice from various sources including but not limited to: The
Courts, Nigerian Prison Service, Economic & Financial Crimes Commission
(EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food
& Drugs administration and Control (NAFDAC), Independent Corrupt Practices
and Other Related Offences Commission (ICPC) Etc.
No negative information on subject from the above agencies as at the
time of compiling this report.
COMPANY LOCATION
The company is located at No. 6, Ijora Causeway, Ijora in Lagos State.
The closest bus stop to the company is 7UP Bottling Company Plant. Ijora
Causeway is the road adjacent the bus stop of which Food and Pharma occupy on
the street. The company premise is leased and the design of the building is a
factory type which is surrounded by Banks and some Mechanic Workshops.
OFFICIAL REMARKS
Having carried out all necessary research on subjects, our
investigations revealed that, the company, Amax Nigeria Limited is duly registered in Nigeria, with a
registered address, 1A, Ogunlowo Street, Adeniyi Jones, Ikeja, Lagos. While the
operational office address is 6, Ijora Causeway, Ijora, Lagos
All information contained in this reports are from both primary and
secondary sources.
NOTE: When further information is provided by the company, this report
will be updated accordingly.
RATING
EXPLANATIONS
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RATING |
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. |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)