MIRA INFORM REPORT

 

 

Report Date :

30.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

CHEMSTAR PAINTS INDUSTRY (NIG) LIMITED

 

 

Registered Office :

KM 32, Lagos-Abeokuta Expressway Fine Coat Bus Stop

 

 

Country :

Nigeria

 

 

Date of Incorporation :

23.05.1995

 

 

Com. Reg. No.:

RC 272314

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Manufacture and supply of paint and allied products

 

 

No. of Employees :

210

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

NIGERIA - ECONOMIC OVERVIEW

 

Following an April 2014 statistical "rebasing" exercise, Nigeria has emerged as Africa's largest economy, with 2013 GDP estimated at US$ 502 billion. Oil has been a dominant source of government revenues since the 1970s. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria's oil production contracted in 2012 and 2013. Nevertheless, the Nigerian economy has continued to grow at a rapid 6-8% per annum (pre-rebasing), driven by growth in agriculture, telecommunications, and services, and the medium-term outlook for Nigeria is good, assuming oil output stabilizes and oil prices remain strong. Fiscal authorities pursued countercyclical policies in 2011-2013, significantly reducing the budget deficit. Monetary policy has also been responsive and effective. Following the 2008-9 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Despite its strong fundamentals, oil-rich Nigeria has been hobbled by inadequate power supply, lack of infrastructure, delays in the passage of legislative reforms, an inefficient property registration system, restrictive trade policies, an inconsistent regulatory environment, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, insecurity, and pervasive corruption. Economic diversification and strong growth have not translated into a significant decline in poverty levels - over 62% of Nigeria's 170 million people live in extreme poverty. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, continue to diversify production, and further improve fiscal management. The government is working to develop stronger public-private partnerships for roads, agriculture, and power

Source : CIA

 

 

 


SUBJECT'S NAME

         

Registered Name:

CHEMSTAR PAINTS INDUSTRY (NIG) LIMITED

Requested Name:

CHEMSTAR PAINTS INDUSTRY (NIG) LIMITED

Other Names:

None

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

KM 32, Lagos-Abeokuta Expressway Fine Coat Bus Stop

 

Lagos

Country:

Nigeria

Phone:

234-8050399007/17744066

Fax:

234-17744066

Email:

Finecontpaints@yahoo.com/

info@chemstargroup.com

Website:

www.chemstargroup.com

 

LEGAL

                                                      

Legal Form:

Limited Corporation 

Date Incorporated:

23-May-1995

Reg. Number:

RC 272314

Nominal Capital

NGN. 1,000,000

Subscribed Capital

NGN. 1,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Emmanuel Aderemi Awode

MD/CEO

 

Mr. Adedayo Olusesan Paseda

Deputy MD

 

Mr. Adetunji Adesope

Finance Director

 

Mr. Olufola Laguda

Manager

 

Mr. Lateef Taiwo Olawale

Manager

 

CHEMSTAR GROUP

Holding Co.

100%

 

RELATED COMPANIES 

 

CHEMSTAR GROUP

Parent company.

None

Subsidiary company.

None

Affiliated company.

None

Shareholder of subject firm.

Various in Nigeria

Branches of the firm

 

OPERATIONS

 

Registered to operate manufacture and supply of paint and allied products

Imports:

Asia, Africa

Exports:

None

Trademarks:

None

Terms of sale:

Cash (40%) and 25-90 days (60%), invoices.

 

 

Main Customers:

firms and organizations  

Employees:

210 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Nigeria

Location:

Owned premises, 10,000 square feet,

 

AUDITORS AND INSURANCE  

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

FINANCE

                                                      

Currency Reported:

Nigerian Naira (NGN.)

Approx. Ex. Rate:

1 US Dollar = 162.38 Nigerian Naira

Fiscal Year End:

December 31, 2013

Inflation:

According to information given by independent sources, the inflation at December 31st, 2013 was of 13%.

 

Financial Information not Submitted

 

 

 

 

 

Profit and Loss (expressed in NGN.)

 

2012

2013

Sales

895,000,000 

1,200,000,000

BANK

                                                      

Bank Name:

BARCLAYS BANK

Branch:

Nigeria

Comments:

None

 

TRADE REFERENCES

                                                      

Experiences:

Good

 

 

 

NOTARIAL BONDS

None

_______________________________________________________________________

 

COMMENTS / ADDITIONAL INFORMATION   

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.84

UK Pound

1

Rs.98.40

Euro

1

Rs.80.03

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.