MIRA INFORM REPORT

 

 

Report Date :

11.03.2013

 

IDENTIFICATION DETAILS

 

Name :

PHARMAMAX NIGERIA LIMITED

 

 

Registered Office :

Plot 49, Orange Drive, Crown Estate, Abuja, FCT

 

 

Country :

Nigeria

 

 

Date of Incorporation :

08.09.2009

 

 

Com. Reg. No.:

RC: 843379

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing & Sales of Pharmaceuticals products and Services

 

 

No. of Employees :

08

 

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

(31.03.2012)

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

 

PHARMAMAX NIGERIA LIMITED

 

 

OPERATIONS

 

The company is engages in Manufacturing & Sales of Pharmaceuticals products and Services.

 

 

COMPANY LOCATION

 

The company is located at 9, Sawyer Crescent, Beside Corona School, Anthony, Lagos State, Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                 PHARMAMAX NIGERIA LIMITED

REGISTERED NAME:                            PHARMAMAX NIGERIA LIMITED

SECTOR:                                              PHARMACEUTICALS

REGISTERED ADDRESS:                      Plot 49, Orange Drive, Crown Estate, Abuja, FCT, Nigeria

HEAD OFFICE ADDRESS:                     9, Sawyer Crescent, Beside Corona School, Anthony, Lagos

State, Nigeria.

TELEPHONE:                                        234-1-4962122

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N155 to 1 US $.

  

 

SUMMARY

 

NATURE OF PREMISES:                       Leased office space approximately 500 square meters

DATE INCORPORATED:                        8th September 2009

YEAR BEGAN OPERATIONS:                2009

LEGAL FORM:                                      Private Limited Company

REGISTRATION NO:                             RC: 843379

SHARE CAPITAL:                                 1,000,000.00

ISSUED CAPITAL:                                1,000,000.00

PAID-UP CAPITAL:                               1,000,000.00

STAFF STRENGHT:                              About Eight (8)

 

OWNERSHIP/SHAREHOLDING STRUCTURE

 

Names                                                                                                                         %Held

  1. Ukah Yetunde                                                                                        15%                             

Plot 49, Orange Drive Crown Estate, Abuja, FCT, Nigeria

 

  1. Ukah Christopher                                                                                   85%                             

Plot 49, Orange Drive Crown Estate, Abuja, FCT, Nigeria

 

 

DIRECTORS                                  

                       

  1. Ukah Yetunde
  2. Ukah Christopher

 

BACKGROUND

 

Pharmamax Nigeria Limited was incorporated on 8th September, 2004 with Registration Number (RC: 843379) with 1,000,000.00 share capital. The corporate head office occupies a storey building painted white with ash coloured gate, close to the main gate of Sawyer Crescent gate and it is located at 9, Sawyer Crescent, Beside Corona School, Anthony, Lagos State, Nigeria,

 

During our visit on 6th March, 2013, we spoke with Mrs. Salawu Mary, the Head of Administration (234-809-126-0893) who confirmed and acknowledged our document, she disclosed that Pharmamax Nigeria Limited is a sister company to Maxheal Pharmaceuticals Nigeria Limited with same line of business and Pharmamax is two (2) years old, its registered address is at Plot 49, Orange Drive, Crown Estate, Abuja, FCT, Nigeria. When she glanced through our document she declined to other question that she will need to consult the management for approval but promised that they will get back to us soon.

 

Some customers besieged the company’s premises to purchase their  products at the time of our visit.

 

Conclusion: Based on our visit and discussion held with Mrs. Salawu Mary, the head of Administration with level of staff hands on desk and posters on their wall outside, we are of the opinion that the company is a legal entity. As such, any business relationship with the company should be mutually beneficial.

 

 

TYPES OF CUSTOMERS

 

·        General Public

·        Group of Companies

 

 

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 150million US dollars ($150m USD). This opinion is as a result of the services rendered by the company and the sector it belongs.

 

 

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.

 

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on the company, our investigations revealed that Pharmamax Nigeria Limited is duly registered in Nigeria with a registered address located at Plot 49, Orange Drive, Crown Estate, Abuja, FCT, Nigeria, while its operational address is located at 9, Sawyer Crescent, Beside Corona School, Anthony, Lagos State, Nigeria

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

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