MIRA
INFORM REPORT
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Report Date : |
03.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SOMY PHARMACEUTICALS LIMITED |
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Registered Office : |
1A, Hughes Avenue, Alagomeji, Yaba, Lagos |
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Country : |
Nigeria |
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Date of Incorporation : |
16.09. 2002 |
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Com. Reg. No.: |
RC: 462195 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importation and Distribution of Pharmaceutical Products and Health
Care Services |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name of the company
SOMY PHARMACEUTICALS LIMITED
OPERATIONS
Subject is into importation and
distribution of pharmaceutical products and health care services.
In Nigeria, subject is a medium concern in this sector
Subject is located in a commercial area at 1A, Hughes Avenue, Alagomeji,
Yaba, Lagos
RISK FACTORS
Credit Risk
RISK RATING ASSESSMENT:
Apparently healthy, with adequate working capital
to meet normal commitments
CREDIT LINE AMOUNT: Normal
CREDIT LINE OPINION: Subject appears to be a credit worthy organization
External
Constraints:
Subject operates in a sector where fluctuation of prices in
medical equipment or Services poses great challenges. Some other challenges
include government policies, high poverty rate, illiteracy rate, low funding of
private and non Governmental health Agencies etc .
Internal
Constraints:
Subject is not under any major constraints internally, whether
management or space.
However, the only challenge encountered by subject is in the area of
unfaithfulness of health personnel in discharging their duties to the general
public.
IDENTIFICATION
COMPANY NAME: SOMY PHARMACEUTICAL LIMITED
PREVIOUS NAME: Nil
REGISTERED NAME: SOMY PHARMACEUTICAL
LIMITED
REGISTERED ADDRESS: 1-A,
Hughes Avenue, Alagomeji, Yaba, Lagos
HEAD OFFICE ADDRESS: 1-A,
Hughes Avenue, Alagomeji, Yaba, Lagos
TELEPHONE(S): 234-802-226-4555
POSTAL ADDRESS: 1-A, Hughes Avenue, Alagomeji,
Yaba, Lagos
PRIMARY
CONTACT: Mr. Okonkwo .B. Ejikeme (CEO)
234-1-4938141, 4967579
Currency: All monetary quoted in this report are in Nigerian Naira, the
local currency or unless otherwise stated. The exchange rate is N118 to
1 US $.
SUMMARY
NATURE OF PREMISES: Leased, office space at head office occupying
approximately 120 square meters
DATE INCORPORATED
16th September 2002
YEAR BEGAN OPERATION: 2002
LEGAL FORM:
Private Limited Company
REGISTRATION NO: RC: 462195
SHARE CAPITAL:
1,000,000.00
STAFF STRENGHT: about 8
OWNERSHIP/SHAREHOLDING STRUCTURE
Name Held%
Okonkwo Benjamin Ejikeme 50%
1-A, Hughes Street,
Alagomeji, Yaba, Lagos
2. Mrs. Okonkwo Jane Adaobi 20%
1-A, Hughes Street,
Alagomeji, Yaba, Lagos
3. Ezepue Emmanuel 30%
1-A, Hughes Street
Alagomeji, Yaba, Lagos
DIRECT INTERVIEW
Name:
Mr. Okonkwo Benjamin Ejikeme
Position:
Managing Director
PRINCIPAL ANTECEDENTS
1. Name: Mr. Okonkwo Benjamin
Ejikeme
Position: Managing
Director
Nationality: Nigerian
COMPANY LOCATION
The above company in question is located at 1-A, Hughes Street,
Alagomeji, Yaba, Lagos. The particular building is painted white, Celtel shop
occupies 1st floor while the company in question occupies the down
floor. The street is direct opposite
(Nigeria Railway Corporation) very close to
Sweet Sensation, Yaba, Lagos
TRADE REFERENCES
Subject has both local and international trade references
PAYMENT REFERENCES
Subject has both local and international payment references
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
TYPES OF CUSTOMERS
*Group of Companies*
Local Authorities*
PHYSICAL VISIT
Company Premises
Corporate Affairs Commission
FINANCES
Subject Audited Accounts was not available as the time of compiling this
report.
COUNTRY OF IMPORT/EXPORT
Many countries
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RISK RATING ASSESSMENT: |
Apparently healthy, with adequate working capital to meet normal Commitments |
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CREDIT LINE AMOUNT: |
Normal |
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CREDIT LINE OPINION: |
Subject appears to be a credit worthy organization |
INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
Subject is operating in an industry with very great potentials. 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 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, undermine the
local manufacturing sector, and also 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.
This sector of the economy has great potentials for intending investors.
Please note that subject is classified under Pharmaceutical
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.
OFFICIAL REMARKS
Having carried out all necessary verifications on subject, our investigations
revealed that, subject,
Somy Pharmaceuticals Limited is duly registered in Nigeria, with a
registered address at1A,
Hughes Avenue, Alagomeji, Yaba, Lagos. Nigeria. While the head office
address is same.
In our investigation, the mentioned company is in existence. They are presently at the above address and
is still functioning very well with their business transactions according to
Mr. Okonkwo Benjamin who is the CEO of Somy Pharmaceuticals Limited. However,
he declined further information.
Subject is into genuine business transactions. Subject is an ongoing concern.
All information contained in this report is from both primary and
secondary sources.
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%)