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Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
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Name : |
GLASSFORCE LIMITED |
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Registered Office : |
Osusu Umeme, Ogbor Hill, Aba, North, Abia State |
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Country : |
Nigeria |
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Date of Incorporation : |
16.08.2001 |
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Com. Reg. No.: |
RC: 424859 |
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Legal Form : |
Not Available |
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Line of Business : |
Subject is engages in manufacturing of glass containers. |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Nigeria |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
GLASSFORCE LIMITED
The company engages in manufacturing of glass containers (bottles of all kinds).
The company is located at Osusu Umeme, Ogbor Hill, Aba, North, Abia State, Nigeria.
RISK RATING ASSESMENT: 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
ENQUIRY NAME: GLASSFORCE
COMPANY NAME: GLASSFORCE
LIMITED
REGISTERED NAME: GLASSFORCE LIMITED
REGISTERED ADDRESS: 4A, Sapara Williams Close,
Victoria Island, Lagos Nigeria
HEAD OFFICE ADDRESS: Osusu Umeme, Ogbor Hill, Aba, North, Abia State, Nigeria
MOBILE: 234-809-589-1222
FAX 234-702-841-9955
E-MAIL ADDRESS: headoffice@glassforce.com
WEBSITE: www.glassforce.com
PRIMARY CONTACT: Mr. George Uba (Operations Manager)
(234-803-307-8827)
Currency: All monetary quoted in this report are in Nigerian Naira, the
local currency or unless otherwise stated. The exchange rate is N160 to
1 US $.
NATURE OF PREMISES: Leased office space approximately 7,000 square meters
DATE OF INCOPORATION: 16th August, 2001
SHARE CAPITAL: 5,000,000
REGISTERED NUMBER: RC: 424859
STAFF STRENGHT: Over 20
El-Khouri Fahd
4A, Sapara Williams Close, Victoria Island, Lagos State, Nigeria
Ikiebe Jonathan
19, Ahmed Onibudo Street, Victoria Island, Lagos State, Nigeria
El-Khouri Fahd
Ikiebe Jonathan
Glassforce Limited was incorporated on 16th August, 2001 with Registration Number (RC: 424859) with 5,000,000.00 Share Capital. The company is located at Osusu Umeme, Ogbor Hill, Aba, North, Abia State, Nigeria. The company is located at Osusu Umeeme, Ogbor Hill, Aba, North, Abia State, Nigeria. It is a storey building painted oxblood and yellow with black gate.
Glassforce Limited engages in manufacturing of glass containers (bottles of all kinds). Glassforce commenced business at a time when two major players in the glass container industry were dominating the market for close to twenty (20) years. The company operates at full capacity all year round; supplying about 90% of its products to one of the leading breweries in Nigeria owned by Heineken. Its supply chains include distillers, pharmaceuticals, food/beverages outfits (Seven Up Bottling Company inclusive) in Nigeria as well as a brewery in the West Africa sub-region.
Glassforce is the most advanced state of the art glass bottling manufacturing plant in Abia State Nigeria. Founded in 2002, it began operation in August 2003 after a substantial investment by the Chagoury Group, the company was established to meet the requirements of Nigerian breweries. The Company has expanded production at the plant to provide bottles of various sizes and shapes for a growing and demanding list of clients. The company's plant located at Aba, southeast Nigeria is equipped with the latest technology and has two fully automated production lines with a combined capacity of 10 million bottles per month/120 million bottles per year.
Every bottle is subjected to three quality tests by state-of-the-art inspection machines as they pass down the production line. No other bottling plant in Nigeria has the technology available to Glassforce. The Aba plant's warehouses have a storage capacity of 6-7 million bottles. They supply about 90% of their products to one of the leading breweries in Nigeria owned by Heineken, distillers, pharmaceuticals, food/beverages outfits etc. The following products, among others, use Glassforce bottles: Gulder Beer, Star Beer, Heineken, Maltina. Glassforce has also branched out into producing pharmaceutical bottles for the local pharmaceutical industry.
Most of Glassforce's output is sold in Nigeria but there have been steadily expanding exports to Ghana. The company is strategically located within easy reach of Port Harcourt to take advantage of export opportunities.
The workforce enjoy generous healthcare and other benefits - including a clinic retained in Aba for provision of medical care to all staff. The Company operates a pension scheme for all employees following the Chagoury Group's commitment to raise the standards of employee benefits throughout the Group with particular focus on Africa. Glassforce is a member of the Glass Manufacturers' Association of Nigeria.
During our visit to the company, we were denied access into the offices by the security officers of the company. According to them, the security situation in the state made the management to give strict instruction that any visitor without prior appointment and clearance should not be allowed into the premises. All efforts to speak with the personnel of the company proved abortive as we could not have access to any of them.
We later spoke with Mr. George Uba (Operations Manager) who confirmed the company’s line of business but later insisted on knowing the source of enquiry before he could disclose further information. All efforts to persuade him proved abortive.
Conclusion: Based on our visit and brief discussion
held with the Manager, Operations we are of the opinion that the company is a
legal entity. As such, any business
relationship with the company should be mutually beneficial.
Wall Linings
Hardware & Fittings
Slashbacks
Glass Showers
Structural Walls
Mirrors
Glass floors
Glass Canopies
Structural Fittings
Cavity Sliding Glass doors
Glass doors
Pool Fencing
Latest projects
Glass stair
Balustrades
General Public
Private Hospitals
Individuals
Corporate Organisations
Hotels etc
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
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 This opinion is as a result of the sector the company is into in Nigeria.
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FGSL RISK RATING ASSESSMENT: |
Apparently healthy, with adequate working capital to meet normal Commitments |
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CREDIT LINE AMOUNT: |
Normal |
Subject is operating in an industry with very great potentials. This sector in Nigeria has a lot to explore when it comes to the need for expansion, improvement of product quality, work force development and general technical expertise. Mainly, private individuals dominate this sector. Despite the huge capital required for setting up this investment, it has grown in its leaps and bounds over the decades in the nation, although, the efforts of the Federal Government cannot be ruled out. The government has put in place different policies that support private individuals to secure loans/ mortgages from banks and other financial institutions. However, to record a groundbreaking in this sector, foreign investors are inevitable.
This sector of the economy has great potentials for intending investors.
(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.
Having carried out all necessary verifications on the
company, our investigations revealed that Glassforce
Limited is duly registered in Nigeria with a registered address located at
4A, Sapara Williams Close, Victoria Island, Lagos Nigeria, while its operational
address is located at Osusu Umeme, Ogbor Hill, Aba, North, Abia State, Nigeria.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.66 |
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1 |
Rs.100.46 |
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Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.