MIRA INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NKOYO CHEMISTS |
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Registered Office : |
18, Ukpor Street, Fegge, Onitsha, Anambra State. |
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Country : |
Nigeria |
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Date of Incorporation : |
1990 |
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Line of Business : |
Pharmaceutical and the Sales of Pharmaceutical related 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 |
OPERATIONS
Subject
is into Pharmaceutical and the sales of pharmaceutical related Products
In Nigeria, subject is a medium concern in this sector
Subject is located
in a commercial area at 18, Ukpor Street, Fegge, Onitsha, Anambra State.
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 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.
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: NKOYO
CHEMISTS
REGISTERED NAME: Undetermined
REGISTERED ADDRESS: 18, Ukpor Street,
Fegge, Onitsha, Anambra State.
HEAD OFFICE ADDRESS: 18, Ukpor
Street, Fegge, Onitsha, Anambra State.
TELEPHONE(S): 234-803-322-0977
PRIMARY CONTACT: Mr. Ndidi Okereke (Managing Director/CEO)
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 60 square meters
DATE INCORPORATED 1990
YEAR BEGAN
OPERATION: 1990
LEGAL FORM: Undetermined
REGISTRATION NO: Undetermined
STAFF
STRENGHT: about 5
MANAGEMENT PROFILE
Mr. Ndidi Okereke (Managing Director/CEO)
COMPANY LOCATION
The company is
located at 18, Ukpor Street, Fegge, Onitsha, Anambra State.
TRADE REFERENCE
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 * General Public*l
PHYSICAL VISIT
- Company
Premises
- Corporate
Affairs Commission
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, Nkoyo
Chemist registration is undetermined.
But the company’s head office is at 18,
Ukpor Street,
Fegge, Onitsha, Anambra State. .
Subject is into genuine business
transactions. Subject is an ongoing
concern.
All information contained in the report is
mostly from secondary sources.
Subject Secretary who refused to disclose
his name confirmed that the Managing Director, Mr. Ndidi Okereke has traveled
out for an official assignment.
All efforts to
contact the Managing Director were unsuccessful. He declined further information.
Mr. Okereke was
contacted on phone this afternoon 23rd June, 2008 and he requested
that we revisit his again.
NOTE: that, this report will be updated as soon
as we get additional information on subject.
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%)