MIRA INFORM REPORT

Report Date :

06.12.2013

IDENTIFICATION DETAILS

Name :	B & B FARMACEUTICA LTDA.

Registered Office :	Parinacota 381, Galpón 5, Quilicura, Santiago / XIII Región Metropolitana

Country :	Chile

Date of Incorporation :	04.07.2002

Legal Form :	Limited Liability Company

Line of Business :	· Pharmaceutical laboratory Manufacturer of Pigments, Resins, Plastics, Serums, Perfums, Paints, Fertilizers, Explosives & Medicines.

No. of Employees :	25

RATING & COMMENTS

MIRA’s Rating :

RATING		TATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	---

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 30th, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Chile

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

Chile ECONOMIC OVERVIEW

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2012, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. In 2012, foreign direct investment inflows reached $28.2 billion, an increase of 63% over the previous record set in 2011. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD.

Source : CIA

IDENTIFICATION
CORRECT COMPANY NAME	B & B FARMACEUTICA LTDA.
TRADE NAME	B & B LTDA
TAXPAYER REGISTRATION	RUT 777873903
MAIN ADDRESS	Parinacota 381, Galpón 5, Quilicura,
DEPT/PROV/REGION/STATE	Santiago / XIII Región Metropolitana
COUNTRY	CHILE
TELEPHONE	(562) 27392372 - 27392409
CORPORATE E-MAIL	labnacional@labnacional.cl
COMMENTS
Other phone number: 569 992195148.

EXECUTIVE SUMMARY
Date of foundation	2002
Capital stock	Ps$10,000,000.= Pesos.
permanent employees	25
Chief Executive	BARRIOS VIEJO, LUIS ALBERTO
Disposition	Moderate. Some data and figures were confirmed.
Payments policy	Late, beyond sector norms
Credit ()**	UNDETERMINED RISK.(Insufficient or Non existent information).
Number of times that this company was required: 4
LEGAL STRUCTURE
LEGAL STATUS	Limited Liability Company
DATE OF INCORPORATION	04JUL2002
PLACE OF REGISTRY	Santiago de Chile.
NOTARY OFFICE	Elba Sanhueza Muñoz.	DURATION	5 years (renewable)
INITIAL CAPITAL	Ps$5,000,000.= Pesos.
CURRENT PAID-IN CAPITAL	Ps$10,000,000.= Pesos.	LAST CAPITAL INCREASE	07/01/2010
CURRENT EXCHANGE RATE (US$)	Ps$522.26 Pesos per 1 USD
COMMENTS
By Public Deed dated 06/12/2008, held before Notary Public, Maria Paz Valdez Vejar, a change of partners was performed: Rodrigo Andres Barrios Echeverría, owner of 99% of equity rights, sells, assigns and transfers the 39% of his shares to Luis Alberto Barrios Viejo. Consequently, Luis Alberto Barrios Viejo (with 40%) and Rodrigo Andrés Barrios Echeverría (with 60%) remain as only partners. At the same time, it was agreed to change the by-laws; both partners would indistinctively be in charge of the administration and the use of the corporate name. By Public Deed dated 01/07/2010, held before Notary Public, Ana Luis Birkner Moreira de Santiago, a change of partners was performed: Rodrigo Andres Barrios Echeverria, owner of 60% of equity rights, sells 19% to Luis Alberto Barrios Viejo. Consequently, Luis Alberto Barrios Viejo remains with 59% and Rodrigo Andres Barrios Echeverría with 41%. At the same time, it was agreed to increase the capital stock to Ps$10,000,000.= , invested by the partners as indicated. The two partners are in charge of signing on behalf of the company.

DIRECTORS

EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
BARRIOS VIEJO, LUIS ALBERTO	General Manager	41%
BARRIOS ECHEVARRIA, RODRIGO ANDRES	Partner	59%

WHO IS WHO?

BARRIOS VIEJO, LUIS ALBERTO

TITLE

General Manager

NATIONALITY

Chilean

D.O.B.

1942

CI 47113725

PROFESSION

Economist

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LABORATORIO Y DROGUERIA NACIONAL LTDA.		780519509	CHILE

BARRIOS ECHEVARRIA, RODRIGO ANDRES

TITLE

Partner

NATIONALITY

Chilean

D.O.B.

1976

CI 171771129

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LABORATORIO Y DROGUERIA NACIONAL LTDA.	Legal Representative	780519509	CHILE

BUSINESS HISTORY

B & B FARMACEUTICA LTDA. is related with common partners with the firm: LABORATORIO Y DROGUERIA NACIONAL LTDA. dated 03/05/2009 which suffered fire causing the total loss of its assets, the company that is currently operating with foreign trade movement is B & B FARMACEUTICA LTDA. who was paralyzed legally since inception in 2002, then reactivated to date.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
LABORATORIO Y DROGUERIA NACIONAL LTDA.	CHILE	(AC) 780519509	Related

BUSINESS

SIC Classification
2 8 - CHEMICALS, PHARMACEUTICALS INDUSTRY AND ALLIED PRODUCTS. (Manuf.Pigments, Resins, Plastics, Serums, Perfums, Paints, Fertilizers, Explosives. Medicines.)

Main activity

Pharmaceutical laboratory.

operations

Import

Yes

Country

China, India and Peru

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	953,490.35
2012	1,198,371.34
2011	357,481.01
2010	145,716.04

Export

% DOMESTIC PURCHASES

20%

% FOREIGN PURCHASES

80%

SELLING TerritorY

100% Domestic market

EMPLOYEES

LOCATION

OTHER PREMISES

The Headquarters operates at the heading address.

No branches were reported.

Comments

100% Wholesaler.

Some of its main clients are drugstores and distributors of its line.

FINANCIAL INFORMATION

Disposition

Moderate. Some data and figures were confirmed.

Interviewee(s)

Luis Alberto Barrios Viejo.

Position(s)

General Manager

Information provided

After several steps we were attended by the general manager of the company, who briefly merely confirmed general data arguing that they have not suffered greater variation, also gave us an estimate of sales at the end of fiscal year 2012.

Some interesting data were obtained from reliable third party sources, where it was not possible to achieve balance and greater numbers.

SALES

US$ 0.00 ()

FINANCIAL SITUATION

NN: UNDETERMINED

We do not have financial statements that allow an accurate analysis of its results in its last financial year, however, we can state that its revenues during fiscal year 2012 totaled US$4,500,000.= Dollars.

Although we have higher numbers for better evaluation, we note that the recent references provided by their suppliers constants reveal weaknesses in their payments, which indicates the presumption that the company would be facing liquidity problems.

Sales History in US$ (of Balance Sheet, statement of third parties)

Date	Sales (US$)
31/12/2012	4,500,000.00

Property of company comments

Neither real estate nor vehicles are registered under the company's name.

Subject's assets are represented by used equipment, office facilities.

Main fixed assets of the company (general detail)

No information about insurances was obtained.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: LABORATORIOS PRATER SA	Tel.: 562 2 8707500	Country: CHILE
Goods/Services? : sweeteners and preservatives
Highest credit? : DC Not specified		Current
Client since? : 2011	Terms? : 60 days	Performance? : Always delayed
Comments : Does not stop paying its debt but takes between 1-2 weeks.
Supplier: LABORATORIO VALMA LTDA	Tel.: 562 2 7739572	Country: CHILE
Goods/Services? : Vitamins
Highest credit? : DC Not specified		Outstanding
Client since? : 2002	Terms? : 75 days	Performance? : Always delayed
Comments : It delays approx. one week in payments

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country
AG AD HERNAN TELLERIRA LTDA	CHILE
INSTITUTO BIOQUIMICO BETA SA	CHILE
LABORATORIO ANDROMACO SA	CHILE
SOCOFAR SA	CHILE

Comments :

BANCO SANTANDER BANCO CREDITO E INVERSIONES It performs financial transactions through the aforementioned banks, which refused to give information about the development of their bank accounts under reserve policy.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.69
UK Pound	1	Rs.101.08
Euro	1	Rs.84.07

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%)

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.

MIRA INFORM REPORT

IDENTIFICATION

EXECUTIVE SUMMARY

LEGAL STRUCTURE