MIRA INFORM REPORT

 

 

Report Date :           

12.05.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

CHURCHGATE NIGERIA LIMITED

 

 

Registered Office :

14 – 25B, Amodu Tijani Street, Victoria Island, Lagos State

 

 

Country :

Nigeria

 

 

Date of Incorporation :

03.08.1972

 

 

Com. Reg. No.:

RC: 10406

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The company is a Conglomerate active in many sectors of the Nigerian economy

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Nigeria

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

company name

 

CHURCHGATE NIGERIA LIMITED

 

 

OPERATIONS

 

The company is a Conglomerate active in many sectors of the Nigerian economy.

 

 

COMPANY LOCATION

 

The company is located at Churchgate Tower, Plot PC. 30, Afribank Street, Victoria Island, Lagos-Nigeria

 

 

IDENTIFICATION

 

INQUIRY NAME:                                    CHURCHGATE

COMPANY NAME:                                 CHURCHGATE NIGERIA LIMITED

REGISTERED NAME:                            CHURCHGATE NIGERIA LIMITED

REGISTERED ADDRESS:                     14 – 25B, Amodu Tijani Street, Victoria Island, Lagos State,

Nigeria

HEAD OFFICE ADDRESS:                     Churchgate Tower, Plot PC. 30, Afribank Street, Victoria Island,

Lagos State, Nigeria

POSTAL ADDRESS:                             P.O. Box 7793 Marina, Lagos State, Nigeria

TELEPHONE:                                        234-1-4618205, 2620544, 2620550, 2620414, 2620544

FAX:                                                     234-1-2620326, 2620420, 2620551

EMAIL:                                                 info@churchgate.com

WEBSITE:                                            www.churchgate.com

PRIMARY CONTACT:                            Mr.  Ibukun Adeogun  (G.M, Corporate Communications)

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 1,229 square metres.

 

DATE INCORPORATED:           3rd August, 1972

YEAR BEGAN OPERATION:                  1972

LEGAL FORM:                                      Limited Liability Company

REGISTRATION NO:                             RC: 10406

SHARE CAPITAL:                                 3,000,000.00

ALLOTTED SHARE CAPITAL:               1,000,000.00

PAID-UP CAPITAL                                1,000,000.00

STAFF STRENGHT:                              Thirteen Thousand (13,000) as at 2010

 

 

OWNERSHIP/SHAREHOLDING STRUCTURE

 

Name                                                                                                               % Held

 

1.       R.I. Mahtani                                                                                                                

68, Adetokunbo Ademola Street, Victoria Island, Lagos State, Nigeria

 

2.       B.I. Mahtani                                                                

4B, Kofo Abayomi Street, Victoria Island, Lagos State, Nigeria

 

3.       N. Taiyese

3, Hakeem Habe Close, Surulere, Lagos State, Nigeria

 

4.       U. Babangida

31, Olugun Agbaje Road, Victoria Island, Lagos State, Nigeria

 

5.       Maniratu Adedeji

59, Shyllon Street, Palmgroove, Somolu, Lagos State, Nigeria

 

6.       J.O.G Sodipe

19, Thunbull Road, Ikoyi, Lagos State, Nigeria                             

 

 

DIRECTORS

 

1.       R.I. Mahtani

2.       B.I. Mahtani

3.       N. Taiyese

4.       U. Babangida

5.       Maniratu Adedeji

6.       J.O.G. Sodipe

 

MANAGEMENT PROFILE

 

S/N

Name

Position

1.

Mr. Ratan I. Mahtani

Chairman

2.

Mr. Bhagwan I. Mahtani

Executive Director

3.

Mr. James Ajayi

Marketing Manager

4.

Mr. Ibukun Adeogun

G. M. (Corporate Communications)

 

MANAGEMENT TEAM

Mr. Bhagwan Mahtani                         –                                 Chairman
Mr. Mahtani is the Chairman of the Churchgate Group, one of the Nigeria foremost conglomerates.  An accomplished industrialist and entrepreneur, he belongs to the exclusive group of innovative and highly motivated Nigerians tirelessly contributing towards the rapid development of Nigeria through the establishment of widely diversified industries and service companies.

He is a versatile and innovative businessman. Mr. Mahtani worked relentlessly toward expansion of the family business in the seventies and eighties and later assumed its control when he became the Executive Chairman of the Churchgate Group.  As part of his genuine desire to contribute meaningfully to Nigeria’s industrialization, he became a Nigerian citizen by naturalization and continued to steer the affairs of the Churchgate Group, nurturing it to its present conglomerate status.

 

Mr. Mahtani is a strong believer in the ability of Nigeria to emerge as an investment powerhouse if the vast potentials and opportunities that are available in the country are harnessed correctly.  No doubt, he has achieved his objectives to some extent, but he is not resting on his oars as there are plans by Churchgate to further invest in Nigeria’s development in the coming decades.  Mr. Mahtani’s wide knowledge of the Nigerian economy as well as the working of the Country’s Money and Capital markets has enabled the Churchgate Group to make sound investment decisions which have strengthened its operations.

Mr. Mahtani’s status as a foremost entrepreneur is recognized by the Nigerian Government as he has at times been invited to give useful advice on policy matters.  He also contributed to the policy formulation efforts of the Federal Government of Nigeria when he was appointed a member of the prestigious Vision 2010 Committee by the President, Commander-in-chief of the Federal Government of Nigeria that was given the mandate to come up with a blueprint for Nigeria’s development plans to the Year 2010. He has also been nominated as a member of vision 2020.

A committed philanthropist, he has endowed trust funds for institutions, organizations and the less privileged and supports the causes geared toward up-liftment of the society, He is also an Honourable Patron of several social and professional associations. He is a Director of Stanbic IBTC Bank Plc. He served as the Chairman of the Board Credit Committee for over 20 years of the erstwhile Chartered Bank Plc and the Stanbic IBTC Bank Plc.

 

 

BACKGROUND

 

Churchgate Nigeria Limited was incorporated on 3rd August, 1972 with Registration Number (RC. 10406). The corporate head office is located at Churchgate Tower, Plot PC. 30, Afribank Street, Victoria Island, Lagos-Nigeria

 

The Churchgate group is one of Nigeria’s foremost industrial conglomerates, contributing to industrial development through the establishment of export oriented industries, diversification in the non – oil sectors and investment in the reactivation and turnaround of ailing industries. With investments in key sectors of the economy, the group is at the forefront of Nigeria’s commerce and industry and is easily acknowledged as one of the nation’s business leaders. This has been implemented through a clearly defined strategy of reinvesting for growth in projects aimed at achieving nationally articulated objectives of import substitution, backward integration and export promotion.

 

Activities of the group include, manufacturing and export of cotton and synthetic yarn, manufacture and export of woven, processed and printed fabrics and grey baft, cotton ginning, manufacture and export of textile dyestuffs, deep sea fishing and shrimping, processing of beer.

 

Others are: import / distribution of consumer products, export of agricultural products and raw material, shipping, clearing and forwarding, banking services, insurance broking, stock broking, and research, quality control and development services. As it continues to set the pace of industrial development in Nigerian, Churchgate is poised to meet its growing demand for goods and services. The group remains confident in the power and potential of the Nigerian Economy and will continue to combine the nations natural and human resources with the best technology available to promote and consolidate industrial development in Nigeria.

 

The Churchgate group has become one of Nigeria’s Premier conglomerates and has been a leading force of corporate activity for the past 40 years. The group has always reflected the spirit of the times; the Group initial focus in the 60’s and the 70’s was in manufacturing and in trading, areas where they achieved pre-eminent positions. With the emergence of new growth segments in the 80’s, they ventured into the banking and finance arena. Her latest foray has been in real estate development, which is likely to become one of the key focus areas for the group.

 

 

 

The founder, Mr. Ishwardas Mahtani, entrusted the group with a commitment to quality, trust, transparency and good governance – which to this day remains unshaken. With Assets in excess of one billion dollars in Nigeria alone, property holdings that cross 1.7 million square meters, The Churchgate Group has firmly established itself as a multifaceted business house

 

We visited Churchgate Nigeria Limited owned magnificent tower, a glass building located at Churchgate Tower, Plot PC. 30, Afribank Street, Victoria Island, Lagos-Nigeria for credit verification on 9th May, 2011. Some companies includes: Stanbic IBTC Bank, Total Upstream Nigeria etc share the premises with Churchgate group. During our visit, Mr. Yomi the Operation Officer in the 1st Floor decline to supply information about the company and its business activities. During our interview with the security men by the gate, they hinted that the company engaged in importation and marketing of: Rice, Sugar and other consumable products, they further stated that their Mega Warehouse is located at Plot 1&2, Block D, Isolo Industrial Estate, Apapa-Oshodi Expressway, Iyana-Isolo, Lagos State, Nigeria. They stress that their operation also covers Abuja (FCT) and other states in Nigeria.

 

Conclusion: Based on our visit, discussion with Mr. Yomi the Operation Officer and other source of information within the premises and inspection tour at the warehouse, we are of the opinion that the company is operating at large scale in its sector. As such, any business relationship with the company should be mutually beneficial.

 

 

PRODUCTS DESCRIPTION

 

·         Textile Fabrics,

·         Textile Yarn,

·         Industrial Chemicals,

·         Properties, Dyestuff

·         Fish and Shrimps

·         Consumer Product

·         Glass Products

·         Beer

·         Beverages

·         Commodities and Malt Drinks,

·         Importation and Marketing of Rice, Sugar and other Commodities.

 

 

SUBSIDIARIES

 

 

 

INTERNATIONAL AFFILIATES

 

·         Mumbai, India
Address:    Platinum Exports Pvt. Ltd., 112 Maker Chambers VI, Nariman Point, Mumbai

400 021

Telephone:           +91 22 2285 5795 / 5796, +91 22 2285 6795 / 6796
Fax:                      +91 22 2287 2128
Email:                   info@platinum-india.com

·         London, UK
Address:    NBR London Limited, Park Lorne, 111 Park Road, St. Johns Wood, London                                   NW8 7JL, UK
Telephone:           +44 20 7224 8464
Fax:                      +44 20 7224 8097
Email:                   info@nbrlondon.com

 

 

BRANCHES

 

·         7E, Bello Road, Sabo Area, Kano State, Nigeria (234-064-644902, 636523

·         29, Port Harcourt Road, Aba, Abia State, Nigeria (234-082-224357, 227955)

·         Kaduna, Port Harcourt, Ilorin, Benin, Onitsha, Maiduguri

 

TRADE REFERENCES

 

·         Lagos Chamber of Commerce and Industry

·         Manufacturer Association of Nigeria

·         Nigerian Export Promotion Council.

 

 

TYPES OF CUSTOMERS

 

·         General Public,

·         Group of Companies

·         Government Agencies

·         Foreign Companies etc.

 

 

PERFORMANCE RANKING

 

* Quality of Management:          GOOD

* 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 $120 Million (One Hundred and 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 trading.

 

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 Borehole Drilling 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

 

·         Weaknesses:                                  inadequate capital

 

·         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 Mr.  Ibukun Adeogun (G.M, Corporate Communications) 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.

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

 

 

 

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 Churchgate Nigeria Limited is duly registered in Nigeria with a registered address is located at 14-25B, Amodu Tijani Street, Victoria Island, Lagos State, Nigeria, while its operational address is located at Churchgate Tower, Plot PC. 30, Afribank Street, Victoria Island, 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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.69

UK Pound

1

Rs.73.12

Euro

1

Rs.64.39

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.