MIRA INFORM REPORT

 

 

Report Date :

12.11.2012

 

IDENTIFICATION DETAILS

 

Name :

AWARD GLOBAL COMPANY LIMITED

 

 

Registered Office :

 

20, Ashogbon Street, Idumota, Lagos State

 

 

 

 

Country :

Nigeria.

 

 

 

 

Date of Incorporation :

15.01.2003

 

 

 

 

Com. Reg. No.:

RC: 470147

 

 

 

 

Legal Form :

Private Limited Company

 

 

 

 

Line of Business :

The company is engaged in the Distribution and Sales of Pharmaceutical Products.

 

 

 

 

No. of Employees :

15

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

NIGERIA - ECONOMIC OVERVIEW

 

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-11 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

Source : CIA


company name

 

AWARD GLOBAL COMPANY LIMITED

 

 

COMPANY LOCATION

 

The Company is located in at 20, Ashogbon Street, Idumota, Lagos State, Nigeria.

 

 

OPERATIONS

 

The company is engaged in the Distribution and Sales of Pharmaceutical Products.

 

 

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:                                               234-803-322-0069, 7023028877

E-MAIL:                                                info@awardglobal.com, sales@awardglobal.com,

                                                            ceo@awardglobal.com

WEBSITE:                                            www.awardglobal.com

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 N150 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:                                 200,000.00

ISSUED CAPITAL:                                200,000.00

PAID-UP CAPITAL:                               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 State, Nigeria

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:                              Fifteen (15)

 

 

OWNERSHIP & SHAREHOLDERS STRUCTURE

 

Name                                                                                                   %Held

 

1.   Okafor Livinus Chukwuemeka                                                            75%

      20, Ashogbon Street, Idumota, Lagos State, Nigeria

 

2.  Okafor Micheal Okechukwu                                                                25%

       20, Ashogbon Street, Idumota, Lagos State, Nigeria

 

 

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 also 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: Pevit, Ecomax, Ebu 20, Act Pro’AL, Medin, Nugene, Suretone, Aminodyn, Millicap. The company’s products are being imported from India and China.

 

During our visit on 8th November, 2012, we met one of the personnel who refused to disclose his name but confirmed the company line of operation and further said that the Managing Director, Okafor Livinus Chukwuemeka who is in best position to disclose the company’s information was not available but promised to deliver our document to him as soon as he arrives.

 

According to him, the company was previously located at 20, Agbola Street, Ijesha, Lagos, its former warehouse 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.

 

 

Conclusion, Based on our visit to the company, available information and discussions with one of the personnel on 6th November, 2012, 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

Nationality:                                          Nigerian

Place of Birth:                                      Ishofia

State of Origin:                                    Anambra State

Date of birth:                                        10th October, 1976

Work History:                                                   10 years working experience

Education & Qualification:                   S.S.C.E

 

 

BANKER

 

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.

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

Pharmaceutical companies

Chemists

Wholesalers

Retailers etc.

 

 

INSURANCE COVER

 

NAME:                          Niger Insurance Plc

ADDRESS:                                47, Marina, Lagos State

TYPE OF COVER:         Fire and Burglary Disaster

 

 

BRANCH OFFICE

 

No.  6, Agodokome Street, Idumota, Lagos State.

No. 2, Mission Road, Ekwulabia, Anambra State.

 

 

TRADE REFERENCES

 

Association of Pharmaceutical Importers Of Nigeria

Nigerian-German Business Association (NGBA)

 

 

PAYMENT REFERENCES

 

Name of Company:      Umedica Laboratories Pvt. Ltd
Address:          
            105/108, Rewa Chambers, 1st Floor, 31, New Marine Lines,

Mumbai - 400020, India

Telephone:                  91-022-22085041 / 43 /48 , ext - 113
Fax:                             91-022-22066518
Mobile:                        91- 09819815845
E-mail:                         dr.prakash@umedicalabs.com
Website:                      www.umedicalabs.com

 

Name of Company:      V.S. International PVT. Limited

Address:                       A-204, Neelam Centre, Hind Cycle Road, Worli,

Mumbai  - 400025, India.

 

Name of Company:      Syncom Formulations India Limited

E-mail:                         sfi87@hotmail.com

Website:                      www.syncomformulations.com

 

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

 

Name of company:      Ningbo DaHongYing Pharmaceutical Co. Ltd.
Address:
                       396 Mingzhu Road, Hi-tech Park, Ningbo, P.R.China
Telephone:                  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

 

 

COUNTRY OF IMPORT/EXPORT

 

China and India

 

 

PRODUCT DESCRIPTION

 

·         Injections

·         Analgesics

·         Drops

·         Antibiotics

·         Multivitamins

·         Body and Hair Creams

·         Blood Tonic & Capsules

 

 

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

 

The company’s Audited Account was not available during our visit.  However, based on the services rendered by the company, a credit limit of $350 (Three Hundred & Fifty Dollars) could be extended to the company.

 

 

 

FGSL RISK RATING ASSESSMENT:

B (40-49) GOOD 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

 

 

 

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 Company Limited is duly registered in Nigeria, with a registered address at 20 Ashogbon Street, Idumota, Lagos, Nigeria, which also 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.

 

 

APPENDIX

                       

APPENDIX      1    CREDIT RISK ASSESSMENT EXPLANATIONS

CREDIT FACTORS                                                                                         

 

HISTORY: The total score for this category is 8. Here the following are considered.

            

Age of company- How long has the company been in operation:  The total score here is 4 and the following scores apply

1-5yrs = 2, 5-10yrs = 3, 10yrs above = 4

 Start up- Here consideration is given to how the company started, how many individuals started it, legal status (i.e. Enterprise) at the time the business was set up. The total score here is 2

 Acquired other business – Has the company acquired any other company before? This is to reflect financial strength of the firm. The score here is 2                                         

< 

PAID CAPITAL:

Reasonable capital commitment for business of this size, N1, Unit Share etc. The total score for this category is 8

Here, we look at the amount of shares committed to the business at the commencement of its operations, the current shares and the amount fully paid. The category here includes: Small Scale EnterprisesN100, 000- N500, 000 = 2, Medium Scale-

N500, 000- N1, 000,000= 3, Large Scale- N1, 000,000 above = 3

 

SCALE/SCOPE OF OPERATIONS: The total score for this category is 9. Here the following are considered.

Number of employees – The total score here is 4 and the following scores apply, 1- 10 employees = 1, 10- 50 above = 3 Interstate/other branches – The total score here is 3  Subsidiary companies -   The total score here is 2

  

DIRECTORS BACKGROUND: The total score for this category is 5. Here the following are considered.

 

Date of appointment - The total score here is 1

 Industry specialization - The total score here is 1

 Tertiary/professional competence -                  2

 Complimentary Board skills - The total score here is 1

 Note: discretion applies here.

 

FINANCE: Consideration is given to how the company is being financed, in order to check the level of risk. The total score for this category is 10

(Un) encumbered –The total score here is 3

 

 Self-funded- The total score here is 5

 Financed by Bank or Finance companies- The total score here is 2

 

TRADE REFEREES: The idea here is to determine the reliability and capacity of a company to meet up with credit payment. The total score for this category is 20.    Number/size of credit references – The score here is 8 and the following scores apply, 1reference: N50, 000-N100, 000 = 3, 2 references above: N100, 000 above= 5

 Time taken -   The score here is 6 and the following scores apply, between 30days- 120days = 4, 120days above =2

 History- The score here is 4 and the following scores apply, Reliable= 4, Not reliable = 0

 Referees' general comments = 2 based on field finding

 

AFFILIATION (MERIT SCORE APPLIES): Does the company have affiliations? The score here is 5 and the following scores apply.

 Sister = 2

Parent, or other group company association = 3-5

 

CREDIT INSURANCE (MERIT SCORE APPLIES) this is aimed at determining how secure a company is. The total score for this category is 5

- More for Whole of Turnover Insurance, intermediate for 'Top 10 or 20 accounts', less for Specific account cover

Note: assessment is based on discretion using findings from the field

SELF – ENCUMBERED (NEGATIVE SCORE APPLIES) what is the level of indebtedness of the company and how such debt (s) was incurred. The total score for this category is -1to -6 and following scores apply.           

 Director or Shareholder mortgage = - 2

 Wife/mother or related company =   -1

Vendor financed; or Supplier - very significant = -3

LITIGATION (NEGATIVE SCORE APPLIES) to determine litigations against the company and the ones the company has filed against other parties, disobedient to court summon and rulings. Etc. The score for this category ranges from -1 to -4

- Collection/legal action(s), frequency, currency, apparent values, disputed or delinquent

 This is based on finding from concerned authorities

FACTORING DEBTS (NEGATIVE SCORE APPLIES) The score for this category ranges from -3 to -4

Debtors partially/totally funded = - 2.5

 Resource used = -1. 5


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.86.97

Euro

1

Rs.69.42

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.