MIRA INFORM REPORT

 

 

Report Date :

16.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SAM PHARMACEUTICALS LIMITED

 

 

Registered Office :

12-14, Luke Street, Lagos Island, Lagos State

 

 

Country :

Nigeria

 

 

Date of Incorporation :

18.10.1971

 

 

Com. Reg. No.:

RC: 9354

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing, Importation & Marketing of Pharmaceuticals products,  Medical equipment, Health & Beauty Services etc.

 

 

No. of Employees :

About 106

 

 

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 

 

SAM PHARMACEUTICALS LIMITED

 

 

OPERATIONS

 

The company engages in Manufacturing, Importation & Marketing of Pharmaceuticals products,  Medical equipment, Health & Beauty Services etc.

 

 

COMPANY LOCATION

 

The company is located at 8/9 Oyadiran Estate, Sabo, Yaba, Lagos State, Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                 SAM PHARMACEUTICALS LIMITED

REGISTERED NAME:                            SAM PHARMACEUTICALS LIMITED

SECTOR:                                              PHARMACEUTICALS

REGISTERED ADDRESS:                      12-14, Luke Street, Lagos Island, Lagos State, Nigeria

HEAD OFFICE ADDRESS:                     8/9 Oyadiran Estate, Sabo, Yaba, Lagos State, Nigeria

PREVIOUS ADDRESS:                          47-57, Martins Street, Lagos Island, Lagos

POSTAL ADDRESS:                             P.O. Box 2724, Marina, Lagos State, Nigeria

TELEPHONE:                                        234-1-775-4480, 7753455

E-MAIL:                                                sampharm@hyperia.com   

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:                       Owned office space approximately 5,000 square meters

DATE INCORPORATED:                        18th October, 1971

LEGAL FORM:                                      Private Limited Company

REGISTRATION NO:                             RC: 9354

SHARE CAPITAL:                                 100,000,000.00

ISSUED CAPITAL:                                25,000.00

PAID-UP CAPITAL:                               25,000.00

COMPANY SECRETARY:                       Mr. S. Anusei

AUDITORS:                                          Obilade Ojutalayo & Co.

STAFF STRENGHT:                              About 106

OWNERSHIP/SHAREHOLDING STRUCTURE

 

  1. Shyam Bhojwani                                                                                                           

150, Awolowo Road, Ikoyi, Lagos State, Nigeria

 

  1. Beatrice Adetutu                                   

36, Oke Ona Street, Surulere, Lagos State, Nigeria

 

  1. Raj Arjandas

8/9 Oyadiran Estate, Sabo, Yaba, Lagos State, Nigeria

 

 

DIRECTORS  

                                                                                               

  1. Shyam Bhojwani                                                                                                           
  2. Beatrice Adetutu                                   
  3. Raj Arjandas

 

 

BOARD OF DIRECTORS

 

  1. Chief (Dr.) S. O. Soboyejo          -           Chairman/C.E.O
  2. Mr. S. B. Bhojwani                     -           Managing Director

 

 

BACKGROUND

 

Sam Pharmaceuticals Limited was incorporated on 18th October, 1971 with Registration Number (RC: 9354) with 100,000,000.00 share capital. The corporate head office/factory is located at 8/9 Oyadiran Estate, Sabo, Yaba, Lagos State, Nigeria, Nigeria. The premises is made up of a warehouse and an administrative office.

 

The company engages in Manufacturing, Importation & Marketing of Pharmaceuticals products,  Medical equipment, Health & Beauty Services etc.

 

During our visit to the company, we met the warehouse officer (an Indian man) who disclosed that though he knew the importance of the exercise but cannot divulge information about the company since the source of the enquiry was not disclosed. He later instructed Mr. Yusuf, his assistant to receive our letter and promised to forward it to the Managing Director and hope to get back to us in due course. All efforts to persuade him in order to obtain more information from him proved futile.

 

Note:    The Company increased its Share Capital from 25,000,000.00 to 50,000,000.00 on 3rd October, 2006 and was later increased from 50,000,000.00 to 100,000,000.00 in 21st May, 2012 and paid its Statutory Annual Returns till 2011.

 

Conclusion: Based on our visit to the company, some of the company’s products sighted and brief discussion with the warehouse officer, we are of the opinion that the company is a legal entity. As such, any business relationship with the company should be mutually beneficial.

 

 

PRODUCTS

 

·         Metrosam Infusion

·         Parasam Caplet

·         Grisam Tablets

·         Aldoxi Tablets

·         Gasrol Tablets

·         Maxiron Capsules

·         Primalar Tablets

·         Samtrim

·         Metrosam Tablets

·         Dolon Capsules

·         NcosamTablets

·         Mocks Capsules

·         Ascorvit Tablets

·         Ribosam Tablets

·         Prednisam

·         Plox Capsules

·         Cotetra Capsules

·         Amlin Capsules

 

 

TYPES OF CUSTOMERS

 

·        General Public

·        Group of Companies

·        Chemists

·        Private hospitals

·        Government hospitals

·        Pharmaceutical companies

·        Wholesalers

·        Retailers among others

 

 

MAIN FACTORY SITE

 

2, Western Reservoir Road, Ilorin, Kwara State, Nigeria.

 

 

PERFORMANCE RANKING

 

* Quality of Management:          GOOD

* Ethics & Integrity:                     GOOD

* Ownership Structure:               GOOD

 

 

FINANCES

 

The company’s Audited Accounts was not available as at the time of compiling this report. However, we advise that the maximum credit limit to be accorded to the company could be put at 100million US dollars ($100m USD). This opinion is as a result of the company’s performance in the pharmaceutical industry in Nigeria.

 

 

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 more than 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.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.99

UK Pound

1

Rs.83.72

Euro

1

Rs.72.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.