MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	LABORATORIOS COFAR S.A.
Registered Office :	Victor Eduardo 2293, Miraflores Bajo La Paz
Country :	Bolivia
Financials (as on) :	31.03.2011
Date of Incorporation :	20.09.1973
Legal Form :	Joint-Stock Company
Line of Business :	Manufacture, import, representation and trading of pharmaceutical products for human use.
No. of Employees :	314

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 :	Unknown
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Bolivia	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

IDENTIFICATION
CORRECT COMPANY NAME	LABORATORIOS COFAR S.A.
TRADE NAME	LABORATORIOS COFAR
TAXPAYER REGISTRATION	NIT 1020603028
MAIN ADDRESS	Victor Eduardo 2293, Miraflores Bajo
CITY / PROVINCE	La Paz
DEPARTAMENT / STATE	La Paz
COUNTRY	BOLIVIA
TELEPHONE	(5912) 2220352
E-MAIL	adm@cofar.com.bo
WEB	www.cofar.com.bo
COMMENTS	Another E-mail: cofar@cofar.com.bo
SUMMARY Date of foundation 1973 Capital stock Bs.3,602,200.= Bolivianos Shareholders' equity 47,053,635.00 Bolivianos (31MAR2011) Annual revenues US$ 5,655,707.91 Bolivianos (31MAR2011) Profits (loss) 9,913,165.00 Bolivianos (31MAR2011) permanent employees 314 Chief Executive GRANIER CARDONA, ALEX Disposition Excellent.- Full information and updated figures. Payments policy Without rating (No payment experience traced)

LEGAL BACKGROUNDS
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	20SEP1973
PLACE OF REGISTRY	La Paz
CURRENT PAID-IN CAPITAL	Bs.3,602,200.= Bolivianos
SHAREHOLDERS EQUITY	47,053,635.00 Bolivianos (31MAR2011)
CLASS OF SHARES	Registered
LISTED AT STOCK EXCHANGE	No
CURRENT EXCHANGE RATE (US$)	Bs.6.91 per 1 USD
COMMENTS	The General Manager is in charge of the company's legal representation.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
HANDAL KATINI, LEONARDO	President	90%
GRANIER CARDONA, ALEX	General Manager
ZEGARRA DEHEZA, OSCAR	Admin. & Finance Manager
RIVERA, JUAN ALBERTO	Industrial Manager
MARQUEZ, RAMIRO	General Accountant
ROJAS URQUIZO, LUIS FERNANDO	Costs & Budget Supervisor
HANDAL JAUREGUI, LEONARDO	Shareholder	05%
JAUREGUI DE HANDAL, CARMEN	Shareholder	05%

WHO IS WHO?

HANDAL KATINI, LEONARDO

NATIONALITY

Bolivian

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
NOVARA S.R.L.		1020295022	BOLIVIA

HANDAL JAUREGUI, LEONARDO

NATIONALITY

Bolivian

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
NOVARA S.R.L.		1020295022	BOLIVIA

JAUREGUI DE HANDAL, CARMEN

NATIONALITY

Bolivian

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
NOVARA S.R.L.		1020295022	BOLIVIA

BUSINESS HISTORY

Subject Company was founded on September 20, 1973. To date it is one of most prestigious industrial pharmaceutical companies in Bolivia. Its Industrial Plant is located in La Paz, and currently covers the manufacture and sale of medicines. 
It has three divisions: Industiral, Commercial and Administrative and Financial Division.
 
The production of LABORATORIOS COFAR is sold through its own agencies in all the capital cities of departments and some intermediate cities, currently reaching with all the range of products to drugstores, hospitals, clinics, institutions and other clients from the four cardinal points of the country. Subject's current growth is based on the consolidation of the established products and on aggresive policies introducing new molecules in the market and an efficient process administration and production systems; with a permanent selection, evaluation and training of its human resources.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
NOVARA S.R.L.	BOLIVIA	1020295022	Related

BUSINESS

SIC Classification
2 8 - CHEMICALS AND ALLIED PRODUCTS

Main activity

Manufacture, import, representation and trading of pharmaceutical products for human use.
 
Trademark: "COFAR".

Import

Yes

Country

(From Germany, Chile and Switzerland)

Export

Yes

COUNTRY

(To Honduras)

% CASH SALES / METHOD

70%

% Credit SALES / Terms

30% (30-day terms)

% Ventas exterior (Paises)

03%

% DOMESTIC PURCHASES

30%

% FOREIGN PURCHASES

70%

SELLING TerritorY

Domestic and international market

EMPLOYEES

314

LOCATION
PREMISES	Own
OTHER PREMISES	The company's Headquarters operate at the address shown in the identification heading. Subject has 12 sales branches; 3 in La Paz and 9 throughout the following cities: El Alto, Cochabamba, Quillacollo, Santa Cruz, Potosí, Sucre, Tarija and Trinidad (Rented Premises).

Comments

It ihas the Exclusive Representative of BRESKOT PHARMA and VIDILINE.
 

FINANCIAL INFORMATION

Interviewee(s)

Ramiro Márquez

Position(s)

General Accountant

Disposition

Excellent.- Full information and updated figures.

Information provided

First, we spoke with the Secretary who did not want to tell us her name. She suggested us to supplement our request by sending a presentation letter addressed to Oscar Zegarra (Administrative and Financial Manager). We immediately did it.
 
After several days insisting, Ramiro Márquez (General Accountant) finally replied our request. He confirmed operating data and provided other information of interest. Besides, he provided the main accounts of the last Balance Sheet as of 31/03/2011 (12 months and fiscal year-end).
 
We had no access to figures from the 03/2010 fiscal year.
 
From previous investigations, we have the main accounts of the Balance Sheet as of 31/03/2009 (12 months), expresseda in Bolivianos.

BALANCE SHEET
Balance sheet date	31MAR2011	31MAR2009
Type of balance sheet	Annual	Annual
Period	12 months	12 months
Currency	Bolivianos	Bolivianos
Exchange rate per US$	6.95	7.02
A S S E T S
Current Assetsd	56,056,840.00	37,134,188.00
Fixed	12,331,542.00	11,469,120.00
Total Assets	68,388,382.00	48,603,308.00
L I A B I L I T I E S
Current liabilities	18,207,213.00	9,131,088.00
Long term	3,127,534.00	2,193,496.00
TOTAL LIABILITIES	21,334,747.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	47,053,635.00	37,278,724.00
Total Liab. / Sh. equity	68,388,382.00	48,603,308.00
Sales	39,307,170.00	49,488,512.00
Profit (Loss)	9,913,165.00	8,976,303.00

RATIO
Liquidity ratio	3.08	Current assets ÷ Current liabilities
Debt-to-equity ratio	258.43 %	(Shareholders' equity ÷ Current liabilities %)
Profitability margin	25.22 %	(Profits ÷ Sales %)
Working capital	37,849,627.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

SATISFACTORY
According to the last Financial Statement, the company's Financial Standing is considered to be Satisfactory as it has an adequate higher-than-average liquidity ratio. Working capital is positive and allows it an orderly fulfillment of payments. Debt-to-equity ratio is acceptable. Economic results have been satisfactory.
 
No adverse have been found during our investigation made in several sources.

INSURANCE

COMPANY	AGAINST	EXPIRATION	AMOUNT
ALIANZA COMPAÑÍA DE SEGUROS Y REASEGUROS	All risk

PAYMENTS RECORD: TRADE REFERENCES

(Confidential Information)

Supplier	Telephone	Country	Comment
Campo Iris Imprenta	(5912) 2223168	BOLIVIA
Select - Chemie		SWITZERLAND
Helmuth		GERMANY
Favima Ltda.		CHILE
A. Sander y Cía.		GERMANY
Matriplast S.A.	(5912) 2120521	BOLIVIA

BANKING INFORMATION

Bank

CREDITO

NACIONAL DE BOLIVIA

Subject is client of the above mentioned banks which when being consulted told us that according to the current legal regulations they cannot provide any information on Subject's operations under bank secrecy.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.81

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.