MIRA
INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
GREENLIFE PHARMACEUTICALS LIMITED |
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Registered Office : |
2, Muyili Oshodi
Street Ejigbo, Isolo, Lagos- State Nigeria. |
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Country : |
Nigeria |
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Financials (as on) : |
2008 |
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Date of Incorporation : |
13.04.1995 |
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Com. Reg. No.: |
RC: 269507 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importation and Distribution of Drug |
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
GREENLIFE
PHARMACEUTICALS LIMITED
OPERATIONS
Subject is into drug importation and
distribution nation-wide.
In Nigeria, subject is a medium concern in this sector
Subject is located
in a commercial area at 2, Bank Lane, off Town Planning way, Ilupeju, Lagos
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.
IDENTIFICATION
COMPANY NAME: GREENLIFE PHARMACEUTICALS LIMITED
REGISTERED NAME: GREEN
LIFE PHARMACEUTICALS LIMITED
REGISTERED ADDRESS: 2, Muyili Oshodi
Street Ejigbo, Isolo, Lagos- State Nigeria.
HEAD OFFICE ADDRESS: 2, Bank Lane, off
Town Planning way, Ilupeju, Lagos- State
TELEPHONE(S): 234 -1- 5550780, 4742367, 4742368
MOBILE: 234-803-
397-5907, 803-400-0445, 803-456-0411
FAX: 234-1-5550780
E-MAIL: greenlife2001@yahoo.com
WEBSITE: www.greenlifepharm.com
PRIMARY
CONTACT: Mr. Ebere Nwosu (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: Leased,
office space at head office occupying approximately 4,215 square meters
DATE INCORPORATED 13th April, 1995
YEAR BEGAN
OPERATION: April 1998
LEGAL FORM: Private Limited Company
REGISTRATION NO: RC:
269507
SHARE CAPITAL:
1, 000, 000. 00
ISSUED CAPITAL: 1, 000, 000. 00
PAID-UP CAPITAL: 1,
000, 000. 00
AUDITORS: Gbenga Badejo
& Co. (Firm of Chartered Accountant)
COMPANY SECRETARY: Udoagwa Udoagwa
& Udoagwa (Appointed September, 2006)
STAFF
STRENGHT: 150
OWNERSHIP/SHAREHOLDING STRUCTURE
Name Held%
1. Obiora Chukwuka 45%
2. Ebere Nwosu 45%
3. Ibeh James 10%
DIRECTORS
- Mr. Obiora Chukwuka
(Chairman)
- Mr. Ebere Nwosu
(Managing Director)
- Mr. Ibeh James
(Pharma Director)
MANAGEMENT PROFILE
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S/N |
Name |
Position |
Qualification |
Years of Experience |
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1. |
Mr. Obiora Anthony Chukwuka |
Chairman |
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2. |
Mr. Ebere Nwosu |
Managing Director |
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3. |
Mr. Samuel Olukayode |
Head Finance & Accounts |
FCMA, FIAMN |
16 Years |
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4. |
Gbenga Folabi |
Head, Sales & Marketing |
B. PHARM |
10 Years |
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5. |
Pharm. James C. Ibeh |
Pharmacist Director |
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6. |
Mrs. Helen Ogbe |
Human Resources Manager |
CIPM |
10 Years |
COMMENT
At exactly 12:50pm
on Friday 20th 2008, we were at Greenlife Pharmaceuticals Limited.
Mr. Samuel
Adeyemi, head of
Finance and Accounts provided all information in this report.
PRINCIPAL ANTECEDENTS
1.
Name: Mr. Obiora Chukwuka
Position: Chairman
Nationality: Nigerian
Profession: Administration
Education: University of Lagos
Qualification: B.sc
Work History: 15years (Trading)
2.
Name: Mr.
Ebere Nwosu
Position: Managing
Director/CEO
Nationality: Nigerian
Profession: Administration
Education: Nnamdi Azikwe
University
Qualification: B.sc
Work History: 15years
COMPANY LOCATION
The company is located in a building painted in cream color at 2, Bank
Lane, off Town Planning way, Ilupeju, Lagos State- Nigeria.
CLASSIFICATION
Pharmaceutical/Healthcare
TRADE REFERENCE
Association of Pharmaceutical Importers of Nigeria (APIN)
NAFDAC
Nigeria-Chamber of Commerce
Pharmaceutical Society of Nigeria
FOREIGN TRADE REFERENCE
GVS Laboratories Ltd., India
RAJAT Pharmaceutical PVT, India
BRANCH OFFICE
Sales outlet nationally
RELATED COMPANY
Name of Company:
Flowell Pharmacy
Address: Benin Road,
Edo State
Tel:
234-803-714-3716
Line of Business:
Pharmaceuticals
Contact Person: Mr.
Fred
BANKERS
Subject
operates current accounts with the under listed banks.
|
Bank
Name |
Address/
Tel |
Type
of Account |
Account
Name/ Number |
Account
Officer |
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Zenith Bank Plc |
Ilupeju Branch 234-1-4968402,
7622387 |
Current
Account 2002 |
Greenlife Pharms Ltd. 6011910918 |
Confirmed
that subject Accounts exist and active. |
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Intercontinental
Bank Plc |
Idumota Branch 234-1-8783479 |
Current
Account 2002 |
Greenlife Pharms Ltd. 0010001000000140 |
Confirmed
that subject Accounts exist and active. |
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United
Bank for Africa Plc |
Idumota Branch 234-1-8132593 |
Current
Account 2002 |
Greenlife Pharms Ltd 00070030004453 |
Confirmed
that subject Accounts exist and active. |
Remarks
on Banks: subject Bank Accounts are active and satisfactory.
PAYMENT REFERENCES
Name of Company: Bliss Grs Labs PVT Ltd
Address: 6/29A, Udi Mittal Estate Andaeri-Kurla
Road-India
Telephone: +912228505387
Fax: 912512860040
E-mail: grslabs1@yahoo.com
Payment term: L/C
Name of Company: Phakt Overseas
Address: 6, 7&8 Maorgalam Anand Magar off C.S.
Road-Dahisar (East)
P.O. Box: Mumbai 400668 (India)
Telephone: +912228480601
Fax: +912228480683
Payment term: L/C
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
PRODUCT DESCRIPTION
Marketing of Pharmaceutical products such as:
Day-by-Day Multivitamin Capsules, Gsunate Forte (Artes unite) Tablets
(Anti-Malaria), felvin 20mg Capsules (Anti- Inflammatory, Anti-Rheumatic),
Givther (Artemether) oral Suspension & Injection (Anti-Malaria), Alaxin
(dihydroarttemisinin) suspension & Tablets (Anti-Malaria Tablet)
COUNTRY OF IMPORT/EXPORT
India and China
TYPES OF CUSTOMERS
*Group of Companies
* General Public*
PHYSICAL VISIT
- Company
Premises
- Corporate
Affairs Commission
3. Branch Office
ON GOING PROJECTS
- Factory Project Ota
- Isolo Building Project
- Abuja Project
Expansion Plans
To start local manufacturing of
pharmaceutical products and cosmetics here in Nigeria.
FINANCES
2008 2007
N N N N
ASSET EMPLOYED:
Fixed Asset 345,900 79,800
Investment 150,000 -------
495,900 79,800
CURRENT ASSETS:
Stock 730,600 640,600
Trade Debtors 505,700 201,200
Other Debtors 258,200 101,800
Prepayments 29,800 3,000
Cash at hand/bank 15,500 7,000
1.539.800
954,240
1539,800 9544,240
2,035,700 1,034,040
CURRENT LIAB:
Creditor 1,500 300
2,034,200 1,033,740
CAPITAL &
RESERVE:
Share Capital 300,000 300,000
Director Fund 1,500,300 483,740
Profit & Loss Account 233,900 250,000
2,034,200 1,033,740
PROFIT & LOSS ACCOUNT
2008 2007
N000 N000
Turnover 2,520 1,443
Cost of sales 1,232 796
Gross profit 1,288 647
Admin expenses (616) 277
Interest charges (342) ----
Profit before taxation 330 390
Taxation
10 5
Profit after taxation 320 385
Dividend
87
95
FINANCIAL SUMMARY: N000 N000
Turnover 2,520 1,443
Gross profit 1,288 647
Profit before tax 330 390
Profit after tax 320 385
Net worth 2,034,200 1,033,740
Fixed assets 495,900 79,800
Current assets 1,539,800 954,240
Current liabilities 1,500 300
COMPARATIVE
ANALYSIS
Gross profit%
51 45
Net profit% 13 27
Current ratio 1,027:1 0.3,181:1
Acid test ratio 0.520:1 0.1,035:1
Return on total assets 19
38
Return on capital employed
19 17
COMMENT
Subject submitted two years management account for 2008/2007
respectively and necessary ratios were used to evaluate the financial status of
the company. From the analysis, subject
is solvent, liquid and the management performance is up to taste. By and large, subject financial report is
satisfactory.
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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, Greenlife Pharmaceuticals Limited is duly registered in Nigeria, with a registered address at 2, Muyili Oshodi Street Ejigbo, Isolo, Lagos- State Nigeria. While the head office address is at 2, Bank Lane, off Town Planning way, Ilupeju, Lagos- State Nigeria
Subject is into genuine business transactions. Subject is an ongoing concern.
All information contained in the report are 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%)