MIRA
INFORM REPORT
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Report Date : |
12.05.2011 |
IDENTIFICATION DETAILS
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Name : |
KEWALRAM CHANRAI |
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Registered Office : |
8A, |
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Country : |
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Date of Incorporation : |
18.03.1988 |
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Com. Reg. No.: |
RC: 1433 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Importer and Distributors of Bridgestone Motor |
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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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 |
OPERATIONS
The company is an official Importer and Distributors
of Bridgestone Motor Tyre, NGK Plugs and Mitsubishi Motors in
COMPANY LOCATION
The company is located at
8A,
IDENTIFICATION
INQUIRY NAME: KEWALRAM
CHANRAI
COMPANY NAME: KEWALRAM NIGERIA LIMITED
REGISTERED NAME: KEWALRAM
NIGERIA LIMITED
REGISTERED ADDRESS: 8A,
HEAD OFFICE ADDRESS: 8A,
POSTAL ADDRESS:
TELEPHONE: 234-1-7633506, 4627592, 4628263/4628264/ 4628269
FAX: 234-1-2616097,
2615137
EMAIL: customer-service@chanrainigeria.com
WEBSITE: www.kewalramnigeria.com
PRIMARY CONTACT: Mr.
Manis Parikh (General Manager)
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
SUMMARY
NATURE OF PREMISES: Leased office space
occupying approximately 350 squaremetres.
DATE INCORPORATED: 18th
March, 1988
YEAR BEGAN OPERATION:
1988
LEGAL FORM:
Limited Liability Company
REGISTRATION NO: RC:
1433
SHARE CAPITAL: 350,000,000.00
ALLOTTED SHARE CAPITAL: 350,000,000.00
PAID-UP CAPITAL 350,000,000.00
STAFF STRENGHT:
Over
200
OWNERSHIP/SHAREHOLDING STRUCTURE
Name
1.
Akinsunmade
J.M.
9,
2.
Eliya Usman
c/o Kewalran Nig. Ltd,
3.
Odia Moses
c/o Kewalran Nig. Ltd,
4.
Adamu Lawan
c/o Kewalran Nig. Ltd,
5.
2,
6.
Ismail G. Jimoh
7.
Oseni H. Adebola
49,
8.
Adewumi O.
Olubayode
33,
9.
Kewalram Nominees
Limited
P.O. Box
10.
Lamidi Ogbara
Alhaji
4,
11.
Ugochukwu & Sons Limited
17,
12.
Isaac
Akinrele Mr. & Mrs.
22, Akin
13.
Other Shareholders
DIRECTORS
1. Akinsunmade
J.M.
2. Eliya
Usman
3. Odia
Moses
4. Adamu
Lawan
5.
6. Ismail
G. Jimoh
7. Oseni
H. Adebola
8. Adewunmi
O. Olubayode
9. Lamidi
Ogbara Alhaji
10. Isaac
Akinrele Mr. & Mrs.
BACKGROUND
Kewalram Nigeria Limited was incorporated on 18th March,
1998 with Registration Number (RC. 1433). The corporate head office is located
at 8A,
Kewalram Nigeria Limited
offers its principals a business window into
The company represents internationally renowned
manufacturers. They offer the advantage of doing business in a country where
knowledge of local trade practices and sensitivities is critical. They have
earned their trust and confidence by meeting marketing objectives and financial
commitments.
We visited Kewalram Nigeria Limited for credit
verification on 9th May, 2011. The Company occupies spacious area comprising an
edify storey building, a bungalow show room for cars and assembled section; it
is well fenced and painted white.
During our visit and discussion with Manish Parikh,
the General manager (234-803-433-7743) and S. Majundor the head of Information
Technology (234-803-350-9899). They declined to supply detailed information
about the company. They added that their company corporate office is located in
Note:
The Company increases its Share Capital from N100,000,000.00 to N350,000,000.00
on 27th May, 2008 and also paid its Annual Returns till 2010.
Conclusion: Based
on our visit, physical assessment and brief discussion with the top management
of the company, we are of the opinion that the company represents the interest
of Mitsubishi Motors here in
PRODUCTS DESCRIPTION
·
Lancer
·
Lancer EX
·
Outlander
·
Pajero
·
Nativa
·
L300 Bus/Van
·
Roasa Bus
·
L200 Pick up
·
Canter Truck
SERVICE CENTRE
Kewalram Bridgestone Car
Tire Service Centers
- Isolo - Afprint Compound, Apapa Oshodi
Expressway,
Franchisee Car Tire Service
Centers
- Yunesco Ltd. 9B
- AG Abdullhai & Co. 100 Aminu Kano
Way, Goron-dutse,
- LekeLeke Investment Ltd. 58,
- Debok
- Texaco Filling Station. Mokola
Roundabout,
BRANCHES
·
Afprint compound, Plot 122/132,
Oshodi-Apapa Express way, Iyana, Isolo,
·
Plot 234, Mohammed Buhari way,
opp.
·
Plot 464, Trans Amadi, Beside
Panalpina,
·
Sales Outlet Kano/Kaduna State
TYPES OF CUSTOMERS
General Public,
Group of Companies
State and Federal
Government 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 in Importation and Distribution of Bridgestone Motor Tyre, NGK
Plugs and Mitsubishi Motors in
Product Life Cycle:
The level of activities in
the engineering 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
and individuals in
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. Manis Parikh (General Manager) with a wealth of experience in
this line of business. He is known in the industry.
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.
Politically Exposed:
Top management of the
company are Foreigners (Indian Nationals), as such, they are not politically
exposed in
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
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
Terrorism:
Debt Maturity Structure:
Most credit facility
granted by financial institutions in
Local Dividend Payout Requirements:
As a Limited Liability Company,
Subject is under obligations to declare dividend as agreed by the shareholders.
Educational Background: Foreigners in
Government Regulations: The judicial system in
Economic and Financial Crimes
Commission :
The companies in
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.
OFFICIAL REMARKS
Having carried out all
necessary verifications on the company, our investigations revealed that Kewalram Nigeria Limited is duly
registered in Nigeria with a registered address is located at 8A, Karimu Kotun
Street, Victoria Island, Lagos State, Nigeria, while its operational address is
located at the same address.
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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|
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.