MIRA INFORM REPORT

 

 

Report Date :

31.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SARSOLI INDUSTRIAL COMPANY LIMITED

 

 

Registered Office :

No. 24B, Tony Eromosele Street, Park View Estate, Lagos

 

 

Country :

Nigeria

 

 

Date of Incorporation :

05.01.2005

 

 

Com. Reg. No.:

RC: 613807

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

The subject engages in manufacturing and sales myriad colours in the shape of granules for mixing with plastic raw material granules

 

 

No. of Employees :

Over 30

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 2007-12 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

 


OPERATIONS

 

The company engages in manufacturing and sales myriad colours in the shape of granules for mixing with plastic raw material granules

 

 

COMPANY LOCATION

 

The company is located at Plot 2A, Block 5, Bola Odupitan Street, apple junction, Amuwo Odofin, Lagos. Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                SARSOLI INDUSTRIAL COMPANY LIMITED

REGISTERED NAME:                           SARSOLI INDUSTRIAL COMPANY LIMITED

REGISTERED ADDRESS:                     No. 24B, Tony Eromosele Street, Park View Estate, Lagos. Nigeria.

HEAD OFFICE ADDRESS:                    Plot 2A, Block 5, Bola Odupitan Street, Apple Junction, Amuwo

Odofin, Lagos. Nigeria

 

TELEPHONE:                                       234-1-7906290

MOBILE:                                              234-807-108-4605

E-MAIL:                                                info@sarsoli.com

WEBSITE:                                            www.sarsoli.com

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:                      Owned office space approximately 5,000 square meters

DATE INCORPORATED:                       5th January, 2005

YEAR BEGAN OPERATIONS:               2005

LEGAL FORM:                                      Private Limited Company

REGISTRATION NO:                             RC: 613807

SHARE CAPITAL:                                 100,000,000.00

ISSUED CAPITAL:                                25,000,000.00

PAID-UP CAPITAL:                               25,000,000.00

STAFF STRENGHT:                              Over 30

 

 

OWNERSHIP/SHAREHOLDING STRUCTURE AS OBTAINED FROM CAC

 

Names                                                                                                              Shares Held%

Sobhraj Chandru Changrani                                                                                            50%

No. 24B, Tony Eromosele Street, Park View Estate, Lagos. Nigeria.

Juoti Chandru Changrani                                                                                                25%

No. 24B, Tony Eromosele Street, Park View Estate, Lagos. Nigeria.

Vivek Chandru Changrani                                                                                               25%

No. 24B, Tony Eromosele Street, Park View Estate, Lagos. Nigeria.

 

 

DIRECTORS  

                                                                                               

Sobhraj Chandru Changrani                                                                               

Juoti Chandru Changrani                                                                                   

Vivek Chandru Changrani                                                                                  

 

 

BACKGROUND

 

Sarsoli Industrial Company Limited was incorporated on 5th January, 2005 with Registration Number (RC: 613807) with 100,000,000.00 Share Capital. The company occupies a large expanse of land at Plot 2A, Block 5, Bola Odupitan Street, apple junction, Amuwo Odofin, Lagos. Nigeria. The premises comprises the factory, administrative blocks made up of storey building and a bungalow all painted army green.

 

Sarsoli Industrial Company Limited engages in manufacturing and sales myriad colours in the shape of granules for mixing with plastic raw material for plastic furniture and household items such as plastic chair, a bucket, kitchen counter, a shopping bag or bottles toys, centre table, garden furniture, packaging materials, sacks and other plastic items in different colours.  The Company already has 7 twin-extruders, two kneader lines, and a full-fledged lab with the latest required testing equipments.

 

Our secondary sources information revealed that they are one of the first companies to open factory in Nigeria, they have a consistent record in producing high quality products not only making Black, White and Colour master batches, but also efficient in making fillers for flexible packaging. Also, they have recently been instrumental in developing additives that are required by the plastic factories around the world and are in high demand.

During our visit on 27th May, 2013, we met Mr. John (the Manager) who acknowledged our document and stated that the Managing Director has travelled to India for business purposes. He also disclosed that the company is into production and Sales of master batches of myriad colours in the shape of granule, kind of plastic raw materials and also it is a leading importer and stocklist of all. According to him, these master batches are well accepted in the market and used in the plastic industry to produce different coloured finished products like chairs, table, household items, woven sacks and flexible packaging. He later promised to submit our document to the Managing Director on his return from his trip and get back to us in due course but we are yet to receive any response from him at the time of compiling this report.

 

Meanwhile, we sighted some of the company’s staff in blue uniform (overall) tagged Sarsoli Industrial Company Limited.

 

Conclusion: Based on our visit, brief discussion held with the Manager of the company and some of the staff seen, 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

Corporate Organisations

Private organizations etc

 

 

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 $500 million US dollars ($500m USD). This opinion is as a result of the sector the company belongs to in Nigeria and services rendered.

 

 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

Subject is operating in an industry with very great potentials. With the Local Content Initiative of the supervising agency, Nigerian indigenous companies now have exclusive rights up-to 30% of all contracts awarded within the manufacturing industry.  In cases where local expertise are lacking, indigenous companies are encouraged to enter into technical partnership with foreign firms.  With this innovation, local indigenous companies now have regular access to bids and can also benefit from the transfer of technology and expertise from their foreign technical partners.

 

There are many opportunities in this sector of the economy. These could be largely achieved through foreign companies’ joint ventures with Nigerian companies, as well as providing 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 Sarsoli Industrial Company Limited is duly registered in Nigeria with its registered address located No. 24B, Tony Eromosele Street, Park View Estate, Lagos. Nigeria while its head office address is located at Plot 2A, Block 5, Bola Odupitan Street, Apple Junction, Amuwo Odofin, Lagos. Nigeria

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.10

UK Pound

1

Rs.85.13

Euro

1

Rs.72.80

 

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.