MIRA
INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
KOLSH NIGERIA LIMITED |
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Registered Office : |
38, Vaughan Street Ebute Metta, Lagos- State |
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Country : |
Nigeria |
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Date of Incorporation : |
1991 |
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Com. Reg. No.: |
RC: 164228 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importation and Sales of Pharmaceutical / Healthcare 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 |
name of the company
KOLSH NIGERIA LIMITED
OPERATIONS
Subject is into importation and sales of
pharmaceutical / healthcare products.
In Nigeria, subject is a medium concern in this sector
Subject is located
in a commercial area at 11, Unity Street, Iju-Ajuwon, Ogun State -Nigeria
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:
Government policy and high rate of taxes everywhere. 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.
IDENTIFICATION
COMPANY NAME: KOLSH
NIGERIA LIMITED
REGISTERED NAME:
KOLSH NIGERIA LIMITED
REGISTERED ADDRESS: 38,
Vaughan Street Ebute Metta, Lagos- State Nigeria
HEAD OFFICE ADDRESS: 11, Unity Street, Iju-Ajuwon Ogun- State Nigeria
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 100 square meters
DATE INCORPORATED 5th June, 1991
YEAR BEGAN OPERATION: 1991
LEGAL FORM:
Private Limited
Company
REGISTRATION NO: RC: 164228
SHARE CAPITAL:
1, 000, 000. 00
ISSUED CAPITAL: 1, 000, 000. 00
PAID-UP CAPITAL: 1, 000, 000. 00
STAFF STRENGHT: about 10
OWNERSHIP
Name
1. Adekole A.
Atundaolu
38, Vaughan
Street, Ebute Metta, Lagos
2. Folashade Atundaolu
38, Vaughan
Street, Ebute Metta, Lagos
3. Ayobanji
Atundaolu
38, Vaughan
Street, Ebute Metta, Lagos
DIRECTORS
- Adekole A. Atundaolu (Managing Director/CEO)
- Folashade Atundaolu
- Ayobanji Atundaolu
COMMENT
Kolsh Nigeria Limited occupies six flat apartments. As at
the time of our visit, cars painted with different drugs colour were parked
within the compound. Subject uses both for residential/warehouse. Also, subject
uses no, 11 Unity Street Iju-Ajuwon as a store while proper trading activities
takes place at 12, Church Street, Idumota, Lagos Island, Lagos. The building is
three storey painted brown while subject maintain ground floor.
Contact
Person: Mr. Kola popularly called Mr. Kolsh refused to entertain any
question from our team of investigators.
COMPANY LOCATION
The company is located at 11, Unity Street, Iju Ajuwon, Ogun
State- Nigeria
TRADE REFERENCE
Subject has both local and international trade references
BRANCH OFFICE
12, Church Street, Idumota, Lagos Island, Lagos
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
at Lagos Island, Lagos
FINANCES
Subject Audited Accounts was not available as the time of compiling this
report.
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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 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,
Kolsh Nigeria Limited is duly registered in Nigeria, with a registered address
at 38,
Vaughan Street Ebute Metta, Lagos- State Nigeria. While the head office address
is 11, Unity
Street,
Iju Ajuwon, Ogun State.
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%)