MIRA INFORM REPORT

Report Date :

04.07.2013

IDENTIFICATION DETAILS

Name :	C.I. FARMACAPSULAS S.A.

Registered Office :	Calle 79b N° 78c-21 Apartado 52486 Barranquilla

Country :	Colombia

Financials (as on) :	31.12.2012

Date of Incorporation :	12.05.1975

Legal Form :	Stock Company

Line of Business :	Subject is engaged in the manufacture, trade, importation, and exportation of hard capsules (empty), oral pharmaceutical products (capsules, tablets, suspensions, etc)

No. of Employees :	730

RATING & COMMENTS

MIRA’s Rating :

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^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Colombia

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

COLOMBIA - ECONOMIC OVERVIEW

Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years have bolstered its ability to face external shocks. Real GDP has grown more than 4% per year for the past three years, continuing almost a decade of strong economic performance. All three major ratings agencies have upgraded Colombia's government debt to investment grade. Nevertheless, Colombia depends heavily on oil exports, making it vulnerable to a drop in oil prices. Economic development is stymied by inadequate infrastructure, weakened further by recent flooding. Moreover, the unemployment rate of 10.3% in 2012 is still one of Latin America's highest. The SANTOS Administration's foreign policy has focused on bolstering Colombia's commercial ties and boosting investment at home. The US-Colombia Free Trade Agreement (FTA) was ratified by the US Congress in October 2011 and implemented in 2012. Colombia has signed or is negotiating FTAs with a number of other countries, including Canada, Chile, Mexico, Switzerland, the EU, Venezuela, South Korea, Turkey, Japan, China, Costa Rica, Panama, and Israel. Foreign direct investment - notably in the oil and gas sectors - reached a record $10 billion in 2008 but dropped to $7.2 billion in 2009, before beginning to recover in 2010, and reached a record high of nearly $16 billion in 2012. Colombia is the third largest Latin American exporter of oil to the United States, and the United States' largest source of imported coal. Inequality, underemployment, and narcotrafficking remain significant challenges, and Colombia's infrastructure requires major improvements to sustain economic expansion.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

IDENTIFICATION
COMPANY NAME	C.I. FARMACAPSULAS S.A.
TRADE NAME	FARMACAPS S.A.
TAX ID TYPE	NIT
TAX ID NUMBER	890105927-3
CURRENT STATUS	Active
MAIN ADDRESS	Calle 79b N° 78c-21
CITY/PROVINCE/STATE	Apartado 52486 Barranquilla
PHONE NUMBER(S)	(57-5)330.4100 / 330.4101
FAX NUMBER	(57-5)330.4197
E-MAIL	info@farmacapsulas.com
WEB SITE	www.farmacapsulas.com
COMMENTS OF IDENTIFICATION.-	Other e-mail addresses: - lledesma@farmacapsulas.com - ghenao@farmacapsulas.com This report was ordered with address: C I Framacapsulas S.A. Y Con Direccion Calle 79b No. 78c - 21, Barranquilla Colombia; which is incorrect. Please notice that the correct address of subject is as shown in caption.

DIRECTORS/MANAGEMENT

BOARD OF DIRECTORS-EXECUTIVES-SHAREHOLDERS
NAME	JOB TITLE	% STAKE
GILINSKI, MAX	Director
DE GILINSKI PERLA, GROSMAN	Deputy Director
GILINSKI DE AZOUT, GILDA	Deputy Director
AZOUT PAPU, JACOBO	Deputy Director
GILINSKI, SAUL	Director/Legal Representative
MENDAL DE GILINSKI, FLORETTE	Deputy Director/Deputy Leg. Rep.
HENAO JINETE, GLORIA EUGENIA	Deputy Legal Rep.
LEMUS LONDOÑO, ALVARO LUIS	Tax Inspector
PEREZ VILLANUEVA, MANUEL	Deputy Tax Inspector
LEDESMA ANGULO, LUIS ALBERTO	Accountant

NEGATIVE INFORMATION

No negative information found

SHARE & SHARE CAPITAL INFORMATION

PAID-UP CAPITAL

Ps$ 2,000,000,000.00 Pesos

PAYMENT INFORMATION

PAYMENT HISTORY

EP. E: WITHOUT CREDIT EXPERIENCE

% CASH SALES/PAYMENT METHOD	40%
% CREDIT SALES/TERMS	60% (Terms at 15,30 days)
TERRITORY OF SALES	National and International markets
Subject imports from USA, Germany, Mexico, Turkey, Chile, Canada, Peru, Argentina, Honduras, and Ecuador. Likewise, it exports to India, USA, Germany, China, France, Malaysia, and Romania.

IMPORTS
YEAR	2013 (January - June)
AMOUNT	US$ 120,366.56

YEAR	2012
AMOUNT	US$ 2,318,368.31

YEAR	2011
AMOUNT	US$ 7,244,605.76

YEAR	2010
AMOUNT	US$ 2,801,865.87

EXPORTS
YEAR	2012 (January - July)
AMOUNT	US$ 5,856,929.35

YEAR	2011
AMOUNT	US$ 39,933,651.15

YEAR	2010
AMOUNT	US$ 37,688,513.80

YEAR	2009
AMOUNT	US$ 32,252,770.15

LOCAL SUPPLIERS
Name	Contact	Telephone
AVIANCA S A
CIA TRANSPORTADORA S A

FOREIGN SUPPLIERS
Name	Contact	Telephone/fax	Country
SELECT CHEMIE A G			SWITZERLAND
CHEMO S A			SWITZERLAND
DOW CHEMICAL COMPANY			U.S.A.
OSMOPHARM S A			SWITZERLAND
KIN MASTER PRODUTOS QUIMICOS LTDA			BRAZIL

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

CONTENT.-

Since subject's main executives refused to provide any information on the subject; this report was entirely elaborated with the information provided by outside sources. And in accordance with such information, we herein include subject's General Balance Sheets as of 31/12/2012 and 31/12/2011 (12 months each) both expressed in Colombian Pesos; which figures read as follows:

GENERAL BALANCE SHEET
Balance Date	31/12/2012	31/12/2011
Currency	Peso	Peso
Exchange Rate	1,774.50	1,941.50
.Current Total	66,192,698,000.00	63,463,334,000.00	4.30
.Net Fixed	108,737,992,000.00	113,936,809,000.00	-4.56
.Total Assets	174,930,690,000.00	177,400,143,000.00	-1.39
.Total Current Liabilities	82,925,147,000.00	84,118,172,000.00	-1.42
.Long Term Accounts	6,662,009,000.00	10,813,128,000.00	-38.39
Total Liabilities	89,587,156,000.00	94,931,300,000.00	-5.63
Total Equity	85,343,534,000.00	82,468,843,000.00	3.49
Total Liabilities and Equity	174,930,690,000.00	177,400,143,000.00	-1.39

PROFIT AND LOSS ACCOUNT
Balance Date	31/12/2012	31/12/2011
Currency	Peso	Peso
Exchange Rate	1,774.50	1,941.50
Net Sales	104,308,387,000.00	93,147,133,000.00	11.98
Profit(loss)	3,242,498,000.00	3,530,992,000.00	-8.17

RATIOS FINANCIAL
PERIOD	2,012.00	2,011.00	0.00
.NET WORKING CAPITAL	-16,732,449,000.00	-20,654,838,000.00	-0.19
.CREDIT RATING	0.80	0.75	0.07
.CONTENTS OF THE ACID TEST	0.00	0.00
.INDEBTEDNESS	1.95	1.87	0.04
.LIABILITIES, CAPITAL	0.00	0.00
.TOTAL ASSET TURNOVER	0.60	0.53	0.13
.RETURN ON EQUITY	0.00	0.00
.NET RETURN ON SALES	0.00	0.00
FINANCIAL COMMENTS.-
COUNTRY CONTEXT - COLOMBIA: The below Country comments were obtained from a highly regarded public source that issues economic comments on all of World's countries. Taxes: - Colombian income tax: 38.5% on the net profit-business:. - Tax agreements with the Andean Community and Spain which allow residents in this countries to have a special tax treatment. - Alphabetic currency code for every country, established by the International Organization for Standardization (ISO) 4217: Colombian Peso (COP) Main economic indicators: - External debt: US $73.41 billion (31 December 2012 est.) - International reserves: US$34.74 billion (31 December 2012 est.) - Inflation rate forecasted: 3.2% (2012 est.) - GDP growth rate: 4.3% (2012 est.) - Annual GDP per capita: US$10,700 (2012 est.) - GDP - composition by sector: agriculture: 6.8% industry: 38.1% services: 55.1% (2012 est.) - Labour force of 23.08 million people divided by: agriculture: 18% industry: 13% services: 68% - Unemployment rate: 10.3% (2012 est.) Productive sectors: - Agriculture - products: coffee, cut flowers, bananas, rice, tobacco, corn, sugarcane, cocoa beans, oilseed, vegetables; shrimp; forest products - Industrial- products: textiles, food processing, oil, clothing and footwear, beverages, chemicals, cement; gold, coal, emeralds Foreign trade: - Exports: US$59.96 billion (2012 est.) country comparison to the world: 55 Exports - commodities: petroleum, coal, emeralds, coffee, nickel, cut flowers, bananas, apparel Exports - partners: US 42%, Netherlands 4.7%, China 4.2% (2011) - Imports: US$55.49 billion (2012 est.) country comparison to the world: 54 Imports - commodities: industrial equipment, transportation equipment, consumer goods, chemicals, paper products, fuels, electricity Imports - partners: US 29.2%, China 11.9%, Mexico 11.5%, Brazil 5.3% (2011) Final brief: Commercial Country Risk: MEDIUM Political Country Risk: LOW

FOREIGN EXCHANGE RATES

RATE OF EXCHANGE

US$1.00 = Ps$1922.80, as of report date

ADDITIONAL INFORMATION

LEGAL ASPECTS
LEGAL STATUS	Stock Company
INCORPORATION DATE	12/05/1975
REGISTERED IN	Barranquilla
DURATION	26/09/2084
REGISTRATION	Registration No.21097, File No.23314
NET WORTH	Ps$ 85,343,534,000.00 Pesos (as of 31/12/2012)
LISTED AT STOCK EXCHANGE	NO

OPERATIONS
SECTOR	1.-INDUSTRY
ACTIVITY	PHARMACEUTICAL PRODUCTS
ISIC CATEGORY	D-MANUFACTURING INDUSTRIES (ELABORATION, MANUFACTURING, PRODUCTION, PUBLISHING, CASTING, CONSTRUCTION)
MAIN ACTIVITY	Subject is engaged in the manufacture, trade, importation, and exportation of hard capsules (empty), oral pharmaceutical products (capsules, tablets, suspensions, etc)
N. OF EMPLOYEES	730

LOCATION

ADMINISTRATIVE OFFICES, and BUSINESS PREMISES: Located at the address shown in caption, in a commercial zone of the city with easy access routes. Premise kept in good repair.

COMMENTS OF OPERATIONS.-

Nowadays, subject distributes its products to Peru, Bolivia, Chile, Argentina, Paraguay, Brazil, Venezuela, Central America, and USA.

BANKERS / REFERENCE
Bank Name	Account Number	Account Officer	Telephone	Country
BANCO DE BOGOTA				COLOMBIA
BANCO DE OCCIDENTE				COLOMBIA
BANCO DAVIVIENDA				COLOMBIA
BANK COMENTS
Consulted banks did not provide any information on their clients as per bank secrecy.

NOTES & COMMENTS

COMMENT: Subject is a company which operations seem to have been conducted normally and with no inconveniences. Besides, broad experience in the business.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.91.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Report Prepared by :

PRL

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.