MIRA
INFORM REPORT
|
Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LIBRA CIRCLE LTD |
|
|
|
|
Registered Office : |
11, Orimolade Crescent Off Adenyini Jones Ikeja Lagos |
|
|
|
|
Country : |
Nigeria |
|
|
|
|
Financials (as on) : |
2006 |
|
|
|
|
Date of Incorporation : |
21.04.1980 |
|
|
|
|
Com. Reg. No.: |
32913 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is into exportation of Cocoa & Cocoa products and importation
of industrial equipment. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
IDENTIFICATION
COMPANY NAME: LIBRA CIRCLE LIMITED
REGISTERED
NAME: LIBRA CIRCLE
LIMITED
REGISTERED
ADDRESS: 9, Aerodrome Road, Apapa, Lagos-Nigeria.
HEAD
OFFICE ADDRESS: 11, Orimolade Crescent,
Off Adeniyi Jones Avenue, Ikeja, Lagos.
TELEPHONE(S): 234-1-7758992, 3451657,
49619230
FAX: 234-1- 49619230
MOBILE: 234-802-224-9905
E-MAIL: seyioladapo@yahoo.co.uk
WEBSITE: Nil
POSTAL
ADDRESS: P. O. Box 3105,
Yaba, Lagos.
Subject is into exportation of Cocoa and Cocoa 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 N128 to 1 US $.
SUMMARY
NATURE OF PREMISES: Owned,
office space at head office occupying approximately 500 square metres.
DATE INCORPORATED: 21st
April 1980
YEAR BEGAN
OPERATION: 1980
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
32913
SHARE CAPITAL: N250,
000.00
ALLOTTED SHARE
CAPITAL: N250, 000.00
PAID-UP CAPITAL N250,
000.00
AUDITORS: Bankale & Onibiyo Chattered Account.
SOLICITORS: Oru & Co.
COMPANY SECRETARY: Messrs
Dunni Odeyinka & Co.
STAFF
STRENGHT: 9
OWNERSHIP/SHAREHOLDING
STRUCTURE
Name %Held
1. Mr. Abimbola Afolabi Oladapo 50
2. Mr. Oluseyi Abimbola Oladapo 25
3. Mrs Magaret Ajoke Oladapo 2 5
SHARE HOLDERS
(PREVIOUS)
Nil
DIRECTORS
1. Mr. Abimbola Afolabi Oladapo
2. Mr. Oluseyi Abimbola Oladapo
3. Mrs Magaret Ajoke Oladapo
MANAGEMENT PROFILE
Mr. A.A Oladapo Chairman
Mr. Oladapo Oluseyi Operations
Manager
Mr. Saheed Bada Logistics
Manager
Mr. Johnson Adeko Accountant
Mr. Nicholas Aliemeke Port
Operations Manager
The Management
Team of Company’s are as follows:
1. Mr. Saheed Bada: (Logistics Manager). He is a graduate of Ondo State Polythecnic. He obtained a higher diploma (HND) Accountancy in 1999, He hails from Ondo State. He worked at various department and positions while working with Nigeria Law Publications Ltd. before resigning to join Libra Circle Ltd. As logistics manager
2. Mr. Johnson Adeko (Accountant). He is a graduate of Universal College of Technology Ile- ife Osun State. He hails from Ijebu Ode of Ogun State. An accountant trained by KPMG Audit firm of Chartered Accountant, He also worked with Home & Country Savings and Loans Limited
3. Mr. NICHOLAS ALIEMEKE (Port Operation Manager). He is graduate of Lagos State University Ojoo Lagos State, hails from Delta State. He joined Libra Circle Ltd. from Cooperative Cocoa Akure where he was acting as a shipping Manager in 2003. Prior to this, he worked with Saltaj Shipping Ltd.
ASSOCIATE COMPANY
1.
Name: LORNEVIEW INTERNATIONAL LTD.
2.
Address: 11, Orimolade Crescent off Adeniyi Jones Ikeja Lagos.
3.
Telephone/Mobile: 01 3451657
4.
Email: seyioladapo@yahoo.co.uk
5.
Line of Business: Export & Import
6.
Contact Person: Seyi Oladapo
BRANCH
3, Barracks Road, Ondo, Ondo State-Nigeria
BANKER
1. Name: SKYE BANK PLC.
Branch : Adeola
Hopewell Street, Victoria Island, Lagos.
Telephone: Nil
Year Opened Account: 2003
Account Number: 101 – 17700018760
Account Name: Libra Circle Ltd.
2. Name: DIAMOND BANK PLC.
Branch: Lekki
Epe Express Road, Lekki, Lagos
Telephone: Nil
Year Opened Account: 2007
Account Number:
Account Name: Libra Circle
Ltd.
TRADE REFERENCES
1. ABB SWITZERLAND LTD.
BU MINERALS &
PRINTING DEPT. ATBDS-S
CH- 5401 BADEN DATTWIL
SWITZERLAND
2. WEST AFRICAN PORTLAND CEMENT COMPANY
2, ASSBIFI STREET IKEJA
LAGOS.
3. THEOBROMA B.V
DE ENTRÉE 252, 14 FLOOR
1101 EE AMSTERDAM
PAYMENT REFERENCE
1. Name of Company : West African Portland Cement Plc
Address : 11, ASSBFI Road, Elephant Cement House
Ikeja, Lagos-Nigeria
Payment term : (L/C, CAD, COD, T/T) L/C, T/T
ONGOING
PROJECTS : Nil
PRODUCT DESCRIPTION
*Coca *Beans *Rice *Powder *Cocoa Cake * Importation of Industrial
Equipment
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
OPERATIONS
Subject is into exportation of Cocoa & Cocoa products and
importation of industrial equipment e.t.c.
Subject is located in a central business area at 11, Orimolade Crescent,
off Adeniyi Jones Avenue, Ikeja.
TYPES OF CUSTOMERS
·
General
Public
BACKGROUND
Libra Circle
Ltd. was incorporated in 1980. The Company’s started operation at 16A
Commercial Avenue Sabo, Yaba, Lagos-Nigeria and later moved to its present
location at 11 Orimolade Crescent off Adeniyi Jones Avenue, Ikeja,
Lagos-Nigeria for increase in business activities, more convenient
accommodation and facilities to better services to its customers. The company
is currently involved in importing activities for conglomerates e.g. Industrial
equipment and raw materials.
The company
started its operation as general merchant, but over times has diversified into
other areas, which includes importation of specialized equipments for a number
of conglomerates including Nestle Nigeria Plc., NNPC, Port-Harcourt refinery
and various financial institutions.
The company, Libra
Circle Ltd. Is located at 11, Orimolade Crescent, Off Adeniyi Jones Avenue,
Ikeja, Lagos-Nigeria. The given address is true and confirmed. The area is a
residential reserve. Through, there are few other firms situated along the
environs.
EXPANSION PLAN
Subject intends to expand to other areas in Nigeria
PRINCIPAL ANTECEDENT
1. CHAIRMAN/MANAGING DIRECTOR
a.
Name : ABIMBOLA AFOLABI OLADAPO
b.
Profession : Investor
c.
Date of Birth : October 25th, 1945
d
Place of Birth : Ondo Town
e. State of Origin/Nationality : Ondo State
f.
Educational Qualification & Work History : MR. A. A. OLADAPO’S
PROFILE
Mr. A. A.
Oladapo is Chairman, Managing Director of Libra Circle Ltd. He attended St.
Joseph’s College Ondo, Ondo State, where he obtained his West African School
Certificate. He later attended Government College Ibadan, Oyo State and
obtained Higher School Certificate, also has a Bachelor of Science degree in
1973 from University of Ibadan, from 1974 – 1976. He worked very
briefly with the
Lagos State Ministry of Agriculture and Cooperatives as a fishery officer. He
was appointed as an Executive Director of S.A.Oladapo & Co. Ltd. from 1980
to the present time he has been the Chairman and Managing Director of Libra
Circle Ltd., also Managing Director of
Lorneview
International Ltd. He is directly involved in overseas market planning, setting
up marketing and distribution networks with face to face contact with customers
overseas.
Presently he is
the chairman of Cocoa Processor Association of Nigeria (COPAN). He is very
active in social and community development efforts in his local government area
and his well know to the business community in Lagos and Nigeria. The
Chairman/Chief Executive Officer, Mr. A. .A Oladapo was among the founding
Directors of Stanmark Cocoa Processing Industry in Ondo, Ondo State. Although,
Cadbury Nigeria Plc has bought the majority shares in the company, and still
holds shares in Stanmark Cocoa Processing Company Limited, Ondo. Also major
share holder in newly acquired Cocoa Processing Company (Tulip Cocoa Processing
Company, formerly Temple and Golder at Ijebu Mushin in Ogun State)
INTEREST IN OTHER COMPANIES: EXECUTIVE
CHAIRMAN OFF LORNEVIEW INTERNATIONAL LTD. ALSO LORNEVIEW AGRO ALLIED COMPANY
AND DIRECTOR IN LOGIC AND OPTTION LTD.
2
DIRECTOR
a.
Name :
Mr. OLADAPO OLUSEYI
b.
Profession : Management Scientist
c.
Date of Birth : Nil
d Place of Birth : Nil
e.
State of Origin/Nationality : Ondo State
f. Educational Qualification & Work
History: Mr. OLADAPO OLUSEYI
(Executive Director in charge of Operations and Logistics of the company)
A graduate of management
Science and economics with Master of Business administration specializing in
marketing an accomplished banker and astute businessman, He worked with the
defunct National Bank between March 2003 and May 2006. Prior to this he had a
brief stint with Dion & Associates a leading Asset Management company and
Calor Gas both in the United Kingdom. He also worked with Stanmark U.K
(Subsidiary of Cadbury Nig Plc) before returning
to Nigeria in
2002, He resigned from National Bank Limited in the wake of these banking
reform that swept the sector to join Lorneview International Ltd as the
executive director operations and logistics. He commands a wealth of varied
senior management experience in the field of managerial economics.
PHYSICAL VISIT
Visits
were made to the followings:
1.
COMPANY PREMISES
2.
CORPORATE AFFAIRS COMMISSION.
FINANCES
2006
2005 2004
# # # # # #
FIXED
ASSET 3068750
4653125
1210000
INVESTMENT 3184062 1575000 1575000
6252812
6228125 2785000
CURRENT ASSET
Stock 2560405
6529600 508500
Trade Debtor 43020700 27713881 3792166
Cash at Bank 1780910
2228210 851898
47,362,015 36471691 5152564
Current Liab 42960784 27482818 3699058
Net Current Asst. 4401231 8988873 1453506
10654043 15216998 4238506
Financed By:
Share Capital 100000 100000 100000
Capital Reserve ---- 651915 651915
General Reserve 3528013 10106185 2597896
Retained Profit 7026030 4358898 888695
10654043 15216998 4238506
PROFIT & LOSS
ACCOUNT
2006 2005 2004
# #
#
Turnover 195676844 95326325 23500760
Cost of Sales 180967400 75514127 17594202
Gross Profit 14709444
19812192
5906558
Operating Expenses 11242312 14891995 4216179
Profit before Tax 3467132 4920203 691413
Taxation 800000 1500000 25000
Profit after Tax 2667132 3420203 666413
FINANCIAL
SUMMARY: 2006 2005 2004
Turnover 195676844 95326325 23500760
Profit before Tax 3467132 4920203 691413
Profit after Tax 2667132 3420203 666413
NetWorth 10654043 15216998 4238506
Fixed Assets 3068750 4653125 1210000
Current Assets 47362015 36471691 5152564
Total Assets 53614827 42699816 7937564
Current Liabilities 42960784 27482818 3699058
COMPARATIVE
ANALYSIS:
Gross Profit % 8 21 25
Net Profit % 1 4 3
Current Ratio
1:1 1:1 1:1
Acid Test Ratio 1:1 1:1 1:1
Return on Capital Employed 0.1 0.1 0.1
Return on Total Assets 0.1 0.1 0.1
Cash Ratio % 4 8 23
Administration Cost % 8 17 18
COMMENTS
The following ratios were used to analyze
the subject’s financial Statement; Liquidity ratio, Profitability ratio,
Management Efficiency ratio & Cost Efficiency ratio. The profitability
ratio is not encouraging, as it has of decrease on yearly basis. The Liquidity
ratio proved the subject solvency. It indicates its ability to meet financial obligation as at when due.
The returns on capital Employed is satisfactory as it increases yearly while
Return on Total Assets remain stagnant for the three years 2006, 2005&2004
respectively. The Administrative Cost ratio decreases yearly which indicate
that the organization is cost efficient. The Subject has a fair financial
report
|
RISK RATING
ASSESSMENT: |
B (40-49) GOOD Apparently
healthy, with adequate working capital to meet normal commitments. |
|
CREDIT LINE
AMOUNT: |
FAIR |
|
0CREDIT LINE
OPINION: |
Transaction with subject is considered to be
fair trade risk |
DIRECT INTERVIEW
1. Mr. Seyi Oladapo - Operations
Manager
Other Interview: The company Secretary: According to her, the company
Libra Circle Ltd., is a sister company to Lorene View International Ltd. Libra Circle
Ltd is into exportation and importation of agricultural/food items e.g. Cocoa,
Beans, Rice, Powder etc.
Subject has qualified, efficient, and dedicated staff that are all times
on the alert to respond to client needs.
INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
Nigeria is a nation with a multifaceted economy. Though, the foreign
trade perspective of the nation over time, has shifted from agro-economy to oil
and services, nonetheless, the country’s doing well in her exportation of
agricultural products like Cocoa and other processable crops.
This sector is mainly dominated by indigenous investors who have been in
the business for long. Though, the business is not un-combated with series of
challenges emanating from environmental problems. Other issues like;
dilapidation of infrastructural facilities, i.e. bad road network, poor
electricity supply, high cost of running business e.t.c., also affects the
business. The good news here is that government policies on exportation of such
products as cocoa for example, is lenient and gives enough rooms for investors
to cover up for the costs incurred and even make profits.
Thus, the sector is vibrant and promise lucre for anyone who invests in
the sector.
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 11, Orimolade Crescent, Off Adeniyi Jones
Avenue, Ikeja, Lagos. The company premise is a duplex building. The building
has four flats. The company office is the second flat from the main gate; the
office faces the building wall by the left hand side of the house. The office
premises is well equipped with state of the art equipments of computer sets,
air conditioners, office furniture. The office rooms are also corporately
designed for proper office operation. The premises are neat and pleasant.
OFFICIAL REMARKS
Having carried out all necessary research on subjects, our
investigations revealed that, the company, Libra Circle Limited is duly registered in Nigeria, with a
registered address, 9, Aerodrome Road, Apapa, Lagos. While the operational office
address is 11, Orimolade Crescent, Off Adeniyi Jones Avenue, Ikeja,
Lagos-Nigeria.
Subject is into genuine business transactions & ongoing
concern.
All information contained in this reports are from both primary and
secondary sources.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)