MIRA
INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ELBE PHARMA NIGERIA LIMITED |
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Registered Office : |
79, Bishop
Street, Lagos- State Nigeria |
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Country : |
Nigeria |
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Date of Incorporation : |
11.08.1992 |
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Com. Reg. No.: |
RC: 202889 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, Export and Distribution of Pharmaceutical Products |
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
ELBE PHARMA
NIGERIA LIMITED
OPERATIONS
Subject is into Import, Export and Distribution of
Pharmaceutical Products.
In Nigeria, subject is a medium concern in this sector
Subject is located in a commercial area at Plot 1, Murtala
Muhammed Int’l Airport Road, Ajao Estate, Oshodi Lagos State -Nigeria
RISK FACTORS
Credit 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 in prices of
raw materials, Transportation and Logistics poses great challenges. Some other
challenges include bad roads, other road users’ carelessness, and substandard
drugs used in treating patients in various health institutions.
Fluctuation of prices in Foreign Exchange also poses a great challenge.
Similarly, activities of drug dealers and bureaucracy of Government Regulatory
Agencies in this sector has also slow down the pace at which business
activities are being conducted.
Internal
Constraints:
The company is not under any major constraints internally, whether
management or space.
However, the only challenge encountered by the company is in the
unfaithfulness of drivers and lack of expertise in some technicalities of
vehicle repairs.
IDENTIFICATION
COMPANY NAME: ELBE PHARMA NIGERIA LIMITED
REGISTERED NAME: ELBE
PHARMA NIGERIA LIMITED
REGISTERED ADDRESS: 79, Bishop Street,
Lagos- State Nigeria
HEAD OFFICE ADDRESS: Plot 1, Murtala
Muhammed Int’l Airport Road Ajao Estate, Lagos- State Nigeria
TELEPHONE(S): 234 -1- 8179648, 4756030, 7927093, 7731473
E-MAIL: elbepharma@yahoo.com
POSTAL ADDRESS: P.O. Box 51792, Falomo, Ikoyi, Lagos
PRIMARY CONTACT: Sir Paul Okafor (Executive Chairman)
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: Rented, office space at head office occupying approximately
350 square meters.
DATE INCORPORATED 11th
August, 1992
YEAR
BEGAN OPERATION: 1992
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
202889
SHARE CAPITAL: 500,
000. 00
ISSUED CAPITAL: 500, 000. 00
PAID-UP CAPITAL: 500,
000. 00
OWNERSHIP
Name
1. Paul Okafor
1, Aludomime
Lane, Lagos
2. Paulinus Obiakar
79, Bishop
Street, Surulere, Lagos
3. M.C. Ike
120, Okinkwo
Ajayi, Street, Surulere, Lagos
DIRECTORS
- Paul Okafor
- Paulinus Obiakar
3. M.C. Ike
MANAGEMENT PROFILE
Sir Paul Okafor Executive
Chairman
Mr. Uchenna Obiakor Managing
Director
Subject uses 3rd floor of the building and the
premises is named MYK motors. The premises is painted white, black and red.
Part of the subject’s product is outside the premises named B & B
Multivitamins. From our observation, subject is real and authentic though quest
not entertained.
PRINCIPAL ANTECEDENTS
1. Name: Mr.
Uchenna Obiora
Position: Managing
Director
Nationality: Nigerian
COMPANY LOCATION
The company is located at Plot 1, Murtala Muhammed Int’l Airport Road,
Ajao Estate, Oshodi, Lagos State- Nigeria.
CLASSIFICATION
Pharmaceutical/ Healthcare
MEMBER OF ASSOCIATION
* PSN
* Strides Arocolab Ltd.
206, Devavrata Sector 17, Nawi
Mumbai 400 703.
TRADE REFERENCE
Foreign Affiliated Company
*Elba Pharma, Warenhandlels GMBH, Kainerbalken 14, 22525,
Hamburg, Germany
BRANCH OFFICE
Address: 72, Iga Idungaran
Street, Lagos Island, Lagos
Tel: 234-1-2662096,
2667815
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 * General Public*
PHYSICAL VISIT
- Company
Premises
- Corporate
Affairs Commission
- Branch
Office
FINANCES
Subject
Audited Accounts was not available as the time of compiling this report
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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
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Subject appears to be 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 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
has 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.
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, the company, Elbe Pharma Nigeria Limited is duly registered in Nigeria, with a registered address at 79, Bishop Street, Lagos State-Nigeria. While the head office address is Plot 1, Murtala Mohammed International Airport Road, 2nd Floor Ajao Oshodi, Lagos.
Subject is into genuine business
transactions. Subject is an ongoing
concern.
All information contained in the report are
mostly from 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%)