MIRA INFORM REPORT
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Report Date : |
12.05.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
BINATONE NIGERIA LIMITED |
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Registered Office : |
3c, Marine Road, Apapa, Lagos State |
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Country : |
Nigeria |
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Date of Incorporation : |
17.04.1978 |
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Com. Reg. No.: |
RC: 24239 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Home Appliances |
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 : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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Nigeria |
b1 |
b1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
company name
BINATONE
NIGERIA LIMITED
OPERATIONS
The company is engaged in Home Appliances
COMPANY LOCATION
The company is located at
Along Oshodi-Apapa Expressway, between Afprint and First Bank Plc.
Lagos-Nigeria
IDENTIFICATION
INQUIRY NAME: BINATONE
COMPANY NAME: BINATONE NIGERIA LIMITED
REGISTERED NAME: BINATONE
NIGERIA LIMITED
REGISTERED
ADDRESS: 3c,
Marine Road, Apapa, Lagos State, Nigeria
HEAD OFFICE ADDRESS: Along
Oshodi-Apapa Expressway, between Afprint and First
Bank
Plc, Lagos State, Nigeria
POSTAL ADDRESS: P.O.
Box 190, Apapa, Lagos State, Nigeria
EMAIL: info@binatone.com
WEBSITE: www.binatone.com
Currency:
All monetary quoted in this report are in Nigerian Naira, the local currency or
unless otherwise stated. The exchange rate is N148 to 1 US $.
SUMMARY
NATURE OF PREMISES: Owned office space occupying approximately 1, 100 square metres.
DATE INCORPORATED: 17th
April, 1978
YEAR BEGAN OPERATION: 1978
LEGAL FORM: Limited
Liability Company
REGISTRATION NO: RC:
24239
SHARE CAPITAL: 200,000.00
ALLOTTED SHARE CAPITAL: 200,000.00
PAID-UP CAPITAL 200,000.00
STAFF STRENGHT: Over 100
OWNERSHIP/SHAREHOLDING STRUCTURE
Name %
Held
1.
Dele Mann
7, Oremeji Street, Ikeja, Lagos State,
Nigeria
2.
Femi Sonaike
10, Adesoye Street, Okupe Estate, Ikorodu
Road, Lagos State, Nigeria
DIRECTORS
1. Dele
Mann
2. Femi
Sonaike
BACKGROUND
Binatone Nigeria Limited was incorporated on 17th April,
1978 with Registration Number (RC. 24239). The
corporate head office is located Along Oshodi-Apapa Expressway, between Afprint
and First Bank Plc. Lagos-Nigeria
As at our visit on 10th May, 2011. We were denied
access to the company’s premises as movement within the premises was under
serious scrutiny and all effort to get information from the security and top
management proved futile.
The company engaged in the productions and
distributions of household equipments such as: Fan, Iron, Cooker, Stove, Plates
etc.
Conclusion: Based
on our visit and discussion held with the security officers, we are of the view
that the company runs a legitimate business. Though, it’s financial and
management details could not be provided because there was no access to them.
PRODUCTS DESCRIPTION
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Hot Beverages
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Table Top Cooking
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Food Preparation
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Clothes Care
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Lanterns
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Home Comfort
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Hair Dryers
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Air Stylers
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Hot Stylers
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Hair Clippers
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Massagers
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Rollers
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Bathroom Scales
TYPES OF CUSTOMERS
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General Public,
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Group of Companies
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Government Agencies
·
Foreign Companies etc.
PERFORMANCE RANKING
* Quality of
Management: AVERAGE
* Ethics &
Integrity: GOOD
* Ownership
Structure: GOOD
FINANCES
Subject Audited
Accounts was not available as at the time of compiling this report. However,
based on the services rendered and the industry the company belongs to, the Company’s
estimated turnover could be put at $20 Million (Twenty Million Dollars).
BUSINESS SUMMARY
The Subject and its Industry:
The trading sector is a
very vibrant one with the dominant presence of indigenous firms in the
industry.
Business Direction of Subject:
Subject has become a known
player in the sector for its delivering of high quality services.
Market and Products:
Subject’s market is
principally in home appliances.
Product Life Cycle:
The level of activities in
the trading sector determines the life cycle of subject’s services which is
envisaged to be long term.
Technology and Change:
Subject adapts to
technology change in order to enhance its services and relevance in the
industry.
Competitive Advantage:
·
Experienced Staff
·
Wholly indigenous company
·
High quality services and
products.
Competitive Forces:
There are keen competitive
forces most especially from Nigerian-based companies involved in this line of
Business.
Threat of New Entrant:
There is no threat of new
entrants, since there are great opportunities in this sector.
Buyer Power:
There are several companies
in Nigeria who are users of subject’s services. Therefore, buyers can hardly
team up to influence the market.
SWOT Analysis:
·
Strengths: High quality and professional staff
High
quality products and services
Foreign
Partnership
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Weaknesses: inadequate capital
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Opportunities: increasing
growth in the sector as a result of the specialization
·
Threats: Political Instability,
global economic meltdown, competitors.
Information Technology:
Subject employs the latest
information technology in its operations.
Comment:
Foreign exchange
fluctuations affect the operations of most indigenous companies involved in
sourcing of their equipments from abroad.
Support Facilities:
The subject has computers,
operational vehicles and trucks.
Sources of Raw Materials:
Foreign
Comment: Subject source its equipment and other
products from abroad.
JUDGMENT ABOUT SUBJECT’S CREDIT
STANDING
Character:
The management team is
headed by a foreigner with a wealth of experience in this line of business. He
is known in the engineering sector.
Ability:
The subject has the ability
to enter into financial contractual obligations as stated in its Memorandum and
Articles of Associations.
Means:
Business deals undertaken
by subject will be sufficient to meet its financial obligations. Besides, the
company has adequate experienced engineers to support the existing management
team.
Taxes / Royalties / Duties:
5 Value Added Taxes (VAT)
Labour Issues:
The subject has a very
stable and cordial relationship with its employees.
Infrastructure Problems:
Power supply and
communications are improving as the present government is making efforts to create
an enabling environment for investors in Nigeria.
Changing Tariff Barrier / Trade Blocs / Subsidies:
Local companies are given
preferential treatment and subsidies by the Federal Government to enhance their
operations.
Corruption Issues:
Corruption is a major issue
in Nigeria. Laws have been enacted to address the issues however; it is yet to
be eradicated.
Terrorism:
Nigeria over the years has
no history of terrorism. Occasionally, there are pockets of tribal and
religious crisis in the oil rich Niger Delta and some towns on the northern
parts of the country.
Debt Maturity Structure:
Most credit facility
granted by financial institutions in Nigeria is short term in nature.
Local Dividend Payout Requirements:
As a Limited Liability
Company, Subject is under obligations to declare dividend as agreed by the
shareholders.
Politically Exposed:
Top management of the
company are Foreigners (Indian Nationals), as such, they are not politically
exposed in Nigeria.
Educational Background: Foreigners in Nigeria are not
disposed to give out information about their educational history. As such, we
were unable to get the information on the management Educational background.
Government Regulations: The judicial system in Nigeria is
complex and rigid. All companies in Nigeria are registered under The Corporate
Affairs Commission (CAC) and regulated by the Companies and Allied Matters Act
(CAMA) 1990. ).
Economic and Financial Crimes
Commission :
The companies in Nigeria are
also monitored by Economic and Financial Crimes Commission (EFCC). This
however, is the body saddled with the responsibilities of investigating,
reporting and charging these companies to court where corruption, fraud and
financial misappropriation are discovered.
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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: |
Subject
appears to be a credit worthy
organization |
INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
There are many
opportunities in this sector of the economy. This could be largely achieved
through Foreign Companies joint ventures with Nigerian companies, with adequate
Training/Technical Assistance - Provision of training facilities for a large
work force indirectly engaged in the Sub-Sector of the economy. 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.
REMARKS
Having carried
out all necessary verifications on the company, our investigations revealed
that Binatione Nigeria Limited is
duly registered in Nigeria with a registered address is located at
3c, Marine Road, Apapa, Lagos State, Nigeria, while
its operational address is located Along Oshodi-Apapa Expressway,
between Afprint and First Bank Plc. Lagos-Nigeria.
The company is into genuine business
transactions. It is an on-going
concern.
Information contained in
the report is mostly from secondary sources.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.69 |
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UK Pound |
1 |
Rs.73.12 |
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Euro |
1 |
Rs.64.39 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.