MIRA INFORM REPORT
|
Report Date : |
16.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
AWARD GLOBAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
20, Ashogbon Street, Idumota, Lagos State. |
|
|
|
|
Country : |
Nigeria |
|
|
|
|
Financials (as on) : |
31.12.2008 |
|
|
|
|
Date of Incorporation : |
15.01.2003 |
|
|
|
|
Com. Reg. No.: |
RC: 470147 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Sales and Distribution of Pharmaceutical and Allied
Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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
AWARD GLOBAL COMPANY LIMITED
OPERATIONS
The company is engaged in the Sales and Distribution of
Pharmaceutical and Allied Products.
COMPANY LOCATION
The Company is
located in at 20, Ashogbon Street, Idumota, Lagos State, Nigeria.
IDENTIFICATION
COMPANY NAME: AWARD GLOBAL COMPANY LIMITED
REGISTERED
NAME: AWARD GLOBAL COMPANY LIMITED
SECTOR: PHARMACEUTICAL
REGISTERED ADDRESS: 20, Ashogbon Street, Idumota, Lagos State.
HEAD OFFICE ADDRESS: 20, Ashogbon Street, Idumota, Lagos State.
PREVIOUS ADDRESS: 20,
Agbola Street, Ijesha, Lagos State.
PHONE NUMBERS: 234-1 - 4827414
MOBILE: 234-(0)803-322-0069,
7023028877
E-MAIL: info@awardglobal.com,
sales@awardglobal.com ,
WEBSITE: www.awardglobal.com n
PRIMARY CONTACT: Mr.
Okafor Livinus Chukwuemeka (Managing Director)
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:
Leased office
space occupying approximately 100 square metres
DATE INCORPORATED 15th
January, 2003
YEAR BEGAN OPERATIONS: 2003
LEGAL FORM: Private Limited
Company
REGISTRATION NO: RC: 470147
SHARE CAPITAL: N 200,000.00
ISSUED CAPITAL: N
200,000.00
PAID-UP CAPITAL: N
200,000.00
FINANCIAL YEAR END: 31st December
TURNOVER:
N
3,747,448
NETWORTH: N
1,135,662
COMPANY SECRETARY: Olutayo Obadina Associates Limited (Chartered
Accountants)
1,Clegg
Lane, Opposite Fire Service Station,
Off Funso Williams Avenue (Formerly Western Avenue),
P. O. Box 2799, Surulere, Lagos.
Tel: 234-1-7414969, 4702313, 802-3072951, 803-3618171
Fax: 234-1-5854083
E-mail:
enquiry@obadinaolutayo.com, obadinaolutayo@gmail.com
Website www.obadinaolutayo.com
COMPANY
AUDITORS: Olutayo Obadina Associates Limited (Chartered
Accountants)
Address:
Same as Above
STAFF STRENGHT: 15
OWNERSHIP & SHAREHOLDERS STRUCTURE (CURRENT)
Name %Held
1. Okafor Livinus
Chukwuemeka 75%
20,
Ashogbon Street, Idumota, Lagos State.
2. Okafor Micheal Okechukwu 25%
20,
Ashogbon Street, Idumota, Lagos State.
DIRECTORS
1. Okafor Livinus Chukwuemeka
2. Okafor Michael
Okechukwu
3. Pharma Eddy Onuoha
MANAGEMENT PROFILE
|
S/N |
Name |
Position |
Qualification |
Years of
Experience |
|
1. |
Okafor
Livinus Chukwuemeka |
Managing
Director/CEO |
S.S.C.E |
9 years |
|
2. |
Pharma
Okechukwu Egbuwike |
Pharmacist |
P.hd |
7 years |
|
3. |
Ugochukwu
Idika |
------- |
B.sc, A.C.A |
5 years |
BACKGROUND
Award Global Company Limited was incorporated on 15th
January, 2003 with registration number (RC470147). The Company is located at
20, Asogbon Street, Idumota, Lagos State. The building is made up of
four-storey building while the subject occupies one of the shops in the ground
floor. It has branches in Anambra and planning to extend Port Harcourt due to
business expansion.
The company is engaged in
the sales and distribution of Pharmaceutical and allied products such as: Ebu
20, Act Pro’AL, Pevit, Nugene, Ecomax, Suretone, Medin, Millicap, Aminodyn. The
company’s products are being imported from India and China.
According to the Managing
Director, Okafor Livinus Chukwuemeka, the
company’s warehouse at 20, Agbola Street, Ijesha, Lagos was sold without his
consent by the landlord which made the company to relocate to the current
address. He further described short supply of electricity as its major
challenge and high rate of extortion from the area boys in the area.
The company has 15 staffs both within and
outside the head office who work assiduously “round
the clock” to deliver on their individual objectives.
Conclusion, Based on our visit to the
company, available information/documents and discussions with the Managing
Director, Okafor Livinus Chukwuemeka on 23rd March,
2010, we are of the view that the company runs a legitimate business. As
such, any business relationship with the company should be mutually beneficial.
PRINCIPAL ANTECEDENTS
Name: Okafor Chukwuemeka Livinus
Position: Managing Director
Profession: Businessman
Date of birth: 10th October, 1976
Place of Birth: Ishofia
State of Origin: Anambra
State
Nationality: Nigerian
Education & Qualification: S.S.C.E
Work History: 10 years working experience
BANKERS
Subject
operates current account with the under listed bank.
|
Bank Name |
Address/ Tel |
Type of Account |
Account Name/ Number |
Account Officer’s comment |
|
Diamond Bank Plc. |
Idumota
Branch, Lagos State |
Current
Account 2009 |
Award Global Co. Ltd. 1022800000076 |
Stephen (234(0)806-261-6130) and
other bank officials confirmed that the company’s Account exists and active. |
Remarks
on Banks: The Company’s account is active and satisfactory.
TYPES OF CUSTOMERS
General Public,
Chemists and Pharmaceutical companies
INSURANCE COVER
NAME: Niger Insurance Plc
ADDRESS: 47, Marina, Lagos State
TYPE OF COVER: Fire and Burglary Disaster
BRANCH OFFICES
·
No. 2, Mission Road,
Ekwulabia, Anambra State.
·
No. 6, Agodokome Street, Idumota, Lagos State.
TRADE REFERENCES
1.
Association of
Pharmaceutical Importers Of Nigeria
2.
Nigerian-German
Business Association (NGBA)
PAYMENT REFERENCES
1. Name of Company: Gujarat
Liqui Pharmacaps PVT. Limited
Address: Plot
No. 662-666, G.I.D.C. Industrial Estate, Waghodia, Vadodara – 391760
Telephone: 91-2668-263156,
263315
Fax: 91-2668-263657
Email: gujaratliqui@yahoo.com
2. Name of Company: V.S.
International PVT. Limited
Address: A-204,
Neelam Centre, Hind Cycle Road, Worli,
Mumbai - 400025, India.
3. Name of Company: Umedica Laboratories Pvt. Ltd
Address: 105/108,
Rewa Chambers, 1st Floor, 31, New Marine Lines,
Mumbai - 400020, India
Tel No.: 91-022-22085041
/ 43 /48 , ext - 113
Fax No: 91-022-22066518
Mobile : 91-
09819815845
E-mail : dr.prakash@umedicalabs.com
Website : www.umedicalabs.com
4.
Name of company: Ningbo
DaHongYing Pharmaceutical Co. Ltd.
Address: 396
Mingzhu Road, Hi-tech Park, Ningbo, P.R.China
Tel: 86-574-87053829
Fax: 86-574-87053833
M.T.:86-13566306557
Email: crystalzhu12@yahoo.com.cn
zxy@dhypharm.com
MSN: zhu0102melody@hotmail.com
Website: www.dhypharm.com
5. Name of Company: Syncom
Formulations India Limited
E-mail: sfi87@hotmail.com
Website: www.syncomformulations.com
COUNTRY OF IMPORT/EXPORT
China and India
PRODUCT DESCRIPTION
·
Multivitamins
·
Creams
·
Drops
|
|
|
|
EXPANSION PLANS
To be the leading pharmaceutical distribution company and a leader in Corporate Nigeria, through the achievement of excellence in delivering competitive and high quality products and services.
PERFORMANCE RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
PHYSICAL VISIT
- Company Premises
- Corporate Affairs Commission
- Company’s Bankers
DOCUMENTS VERIFIED/ CONFIRMED
1.
CERTIFICATE OF INCORPORATION- Verified
2.
MEMORANDUM/ ARTICLE OF ASSOCIATION- “
3. FINANCIAL
DOCUMENTS Verified
4. FORM CO2/CO7 “
5. CERTIFICATE OF MEMBERSHIP (NPIN) - Verified
6. BUSINESS TRANSACTIONS/INVOICES Verified
7. BANK REFERENCES “
FINANCES
BALANCE
SHEET FOR THE YEAR ENDED 31ST DEC. 2008, 2007 & 2006
2008 2007 2006
N N
N
ASSETS EMPLOYED
Furniture & Fittings 900,000 1,050,000 1,200,000
CURRENT ASSETS
Stock 450,650 415,700 347,500
Trade Debtors 59,655 85,120 125,650
Bank & Cash 61,120
55.910 68,215
571,425 556,730 545,365
CURRENT LIABILITIES
Creditors & Accruals 314,560 215,500 237,900
Taxation 21,203 20,000 20,000
335,763 235,598 257,900
Working Capital 235,662 321,132 287,465
Preliminary Expenses -------- 60,000 60,000
1,135,662 1,431,132
1,547,465
REPRESENTED BY:
Share Capital 200,000 200,000 200,000
Deposit for shares 940,154 1,241,611 1,350,461
Profit & Loss Account (4,492) (10,479) (2,996)
1,135,662 1,431,132 1,547,465
PROFIT & LOSS
ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2008, 2007 & 2006
2008 2007 2006
N N N
Turnover 3,747,448 3,220,765 3,376,079
Cost of Sales (2,956,908) (2,571,150) (2,698,895)
Gross Profit 790,540 649,615 677,184
Administrative Expenses (763,850) (637,000) -------
Profit before Taxation 26,690 12,615 45,914
Taxation (21,203) (20,098) (20,000)
Profit/ Loss after Taxation 5,487 (7,483) 25,914
FINANCIAL SUMMARY
2008 2007
2006
Fixed Assets 900,000 1,050,000 1,200,000
Current Assets 571,425 556,730 545,365
Current Liabilities 335,763 235,598 257,900
Working Capital 235,662 321,132 287,465
Net Worth 1,135,662 1,431,132 1,547,465
Turnover 3,747,448 3,220,765 3,376,079
Gross Profit 790,540 649,615 677,184
Profit before Taxation 26,690 12,615 45,914
Profit after Taxation 5,487 7,483 25,914
COMPARATIVE ANALYSIS
2008 2007 2006
Gross Profit% 30 23 15
Net Profit% 17 11
6
Current Ratio 1:1 2:1 2:1
Asset Turnover Ratio 3:1 2:1 2:1
Return on Total Assets 06 04 03
Return on Capital Employed 05 03 02
COMMENT
The company submitted three
years audited financial statements for the years ended 31st December 2008, 2007
and 2006 respectively. Available record
shows that the company’s turnover increased yearly which means the company used
assets at its disposal to change the company’s position for better. The profit
margin is below average which shows that there’s need to cut down unnecessary
expenses in order to record a better result in the subsequent years. The
company is solvent. It has adequate strength to meet up with its short term
debt as at when due.
There is need for the
company to work harder in order to progress and have more market edge.
The company’s financial
statements for the years ended 31st December 2010 and 2009 was not available as
at the time of compiling this report.
In conclusion, the result is fair.
INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT
The Pharmaceutical industry is very important to the economy of every
country. Pharmaceuticals products, 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 level of
funding and total per capita healthcare expenditure 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.
Fake and counterfeit drugs 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, also conducted 15, 697 raids between 2001 and 2006.
Although this has 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 the company, our
investigations revealed that,
Award Global Co. Limited is duly registered in
Nigeria, with a registered address at 20 Ashogbon Street, Idumota, Lagos, Nigeria, which serves as its operational
address
The company is into genuine business
transactions.
It is an on-going concern.
All information
contained in this reports are from both primary and secondary sources.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.84 |
|
UK Pound |
1 |
Rs.75.40 |
|
Euro |
1 |
Rs.65.68 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.