MIRA INFORM REPORT

Report Date :

01.06.2013

IDENTIFICATION DETAILS

Name :	GLAXOSMITHKLINE COSTA RICA S.A.
Registered Office :	Rotonda De La Bandera 300 metros Este Carretera a Sabanilla 10196-1000 San José
Country :	Costa Rica
Year of Incorporation :	1966
Legal Form :	Joint-Stock Company
Line of Business :	Development and marketing of pharmaceutical products for human consumption: Vitamins, analgesics, gastrointestinal salts, skin creams, among others.
No. of Employees :	420

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^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Costa Rica	B1	B1

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

COSTA RICA - ECONOMIC OVERVIEW

Prior to the global economic crisis, Costa Rica enjoyed stable economic growth. The economy contracted 1.3% in 2009 but resumed growth at about 4.5% per year in 2010-12. While the traditional agricultural exports of bananas, coffee, sugar, and beef are still the backbone of commodity export trade, a variety of industrial and specialized agricultural products have broadened export trade in recent years. High value added goods and services, including microchips, have further bolstered exports. Tourism continues to bring in foreign exchange, as Costa Rica's impressive biodiversity makes it a key destination for ecotourism. Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the incentives offered in the free-trade zones; and Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. However, many business impediments remain such as high levels of bureaucracy, legal uncertainty due to overlapping and at times conflicting responsibilities between agencies, difficulty of enforcing contracts, and weak investor protection. Poverty has remained around 20-25% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Unlike the rest of Central America, Costa Rica is not highly dependent on remittances as they only represent about 2% of GDP. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans in Costa Rica legally and illegally are an important source of mostly unskilled labor but also place heavy demands on the social welfare system. The US-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) entered into force on 1 January 2009 after significant delays within the Costa Rican legislature. CAFTA-DR has increased foreign direct investment in key sectors of the economy, including the insurance and telecommunications sectors recently opened to private investors. President CHINCHILLA was not able to gain legislative approval for fiscal reform, her top priority, though she continued to pursue fiscal reform in 2012. President CHINCHILLA and the PLN were successful in passing a tax on corporations to fund an increase for security services.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME

GLAXOSMITHKLINE COSTA RICA S.A.

TRADE NAME

GSK COSTA RICA SA

TAXPAYER REGISTRATION

CJ 3101003539

MAIN ADDRESS

Rotonda De La Bandera 300 metros Este Carretera a Sabanilla

POSTAL CODE

10196-1000

DEPT/PROV/REGION/STATE

San José

COUNTRY

COSTA RICA

TELEPHONE

(506) 22066141 - 22066130 - 22535380

CORPORATE E-MAIL

wilmer.g.garcia@gsk.com

WEB

www.gsk.com

COMMENTS

Other email address: nelson.j.johnson@gsk.com

EXECUTIVE SUMMARY
Date of foundation	1966
Capital stock	No specified
permanent employees	420
Chief Executive	JOHNSON DE JESUS, NELSON
Disposition	REPORT PREPARED FROM OUTSIDE SOURCES.
Payments policy	Without rating (No payment experience traced)
Number of times that this company was required: 10

LEGAL STRUCTURE
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	1966
PLACE OF REGISTRY	San José
REGISTRATION	Volume 0027, Page 414, Entry 10035
INITIAL CAPITAL	C/.1,000.= Colones
CURRENT PAID-IN CAPITAL	No specified
CURRENT EXCHANGE RATE (US$)	C/.488.22 per USD1.00

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
JOHNSON DE JESUS, NELSON	Director/ Finance Manager
GASTELL, SERGIO	Production Manager
HIDALGO, PAULA	Human Resources Manager
CABRERA, NELSON	Consumer Manager
AMAYA GONZALEZ, LUZ	Plant Manager
VARGAS, MANUEL	Accountant
SERFIST LTD.	Shareholder / Member	100%

WHO IS WHO?

SERFIST LTD.

BUSINESS BACKGROUND

Company based in UK.

BUSINESS HISTORY

GSK is the result of the merger of Glaxo Wellcome and SmithKline Beecham.
 
Until 1999 the company was known as Smitkline Beecham Costa Rica SA
 
Glaxosmithkline Costa Rica SA is part of GlaxoSmithKline Group (GSK) of British origin, specializing in pharmaceuticals, dental care and health care.
 
It is also engaged in biochemical research and its products cover a large part in the field of pharmacy, but some focus on CNS, oncology, antibiotics, respiratory and endocrinology.
 
Some of the companies in the group are:

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
GLAXOSMITHKLINE ARGENTINA S.A.	ARGENTINA	(AC) 30517130032	Related
GLAXOSMITHKLINE BRASIL LTDA.	BRAZIL	(AC) 33247743/000110	Related
GLAXOSMITHKLINE CHILE FARMACEUTICA LTDA.	CHILE	(AC) 850257000	Related
GLAXOSMITHKLINE CORP	U.S.A.		Related
GLAXOSMITHKLINE ECUADOR S.A.	ECUADOR	(AC) 1790717658001	Related
GLAXOSMITHKLINE EXPORT PANAMA S.A.	PANAMA	(AC) 4946733315138DV	Related
GLAXOSMITHKLINE HONDURAS S.A.	HONDURAS	8019003253865	Related
GLAXOSMITHKLINE MEXICO S.A. DE C.V.	MEXICO	(AC) GME970702SP5	Related
GLAXOSMITHKLINE PARAGUAY S.A.	PARAGUAY	(AC) 800243510	Related
GLAXOSMITHKLINE PUERTO RICO INC.	PUERTO RICO		Related
GLAXOSMITHKLINE UK LTD.	UNITED KINGDOM		Related
GLAXOSMITHKLINE URUGUAY S.A.	URUGUAY	(AC) 210002780011	Related
LABORATORIOS PHOENIX S.A.	ARGENTINA	(AC) 30544640212	Related

BUSINESS

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

Main activity

Development and marketing of pharmaceutical products for human consumption: Vitamins, analgesics, gastrointestinal salts, skin creams, among others.
 
Brands sold: "PANADOL", "AQUAFRESH", "ECOTIN", "ENO", "GAVISCOR", "HINDS", "SAL DE ANDREWS"

O P E R A T I O N S

Import

Yes

Country

Germany, Belgium, Panama, UK, France and Italy.

Export

Yes

COUNTRY

Central America, South America and the Caribbean

% Credit SALES / Terms

100% Invoices at 30 days

% Ventas exterior (Paises)

80%

SELLING TerritorY

20% National market

EMPLOYEES

420

LOCATION
PREMISES	Own Settled
AREA	3,836 m2
OTHER PREMISES	The heading address corresponds to the Registered Office, Administrative Offices, Commercial Offices and Pharmaceutical Laboratory. Besides, there is a commercial office and warehouse in San Jose - Tibas. Precise addresses could not be learnt.

Comments

Subject Company sells over 300 brands, among own brands and thrid-party ones.
 
It operates in three shifts of eight hours each.
 
Within its portfolio of customers include the Caja Costarricense del Seguro Social. Social Security Fund.

FINANCIAL INFORMATION

Disposition

TF: REPORT PREPARED FROM OUTSIDE SOURCES.

Interviewee(s)

Diliana Esquivel

Position(s)

Human Resources Assistant (Authorized)

Information provided

The interviewed person confirmed and revised general information , however, indicated no financials are provided by company policy.
 
It is noteworthy that before talked with Mr. Nelson Johnson (Director - CFO) who claiming to be burdened with work , apologized and referred us to the human resources department, where as indicated by him currently are in charge of everything.
 
Some additional data contained in this report was obtained from reliable third party sources, where it was not possible to obtain independent balance sheets of the company.

INSURANCE

COMPANY	AGAINST	AMOUNT	EXPIRATION
INSTITUTO NACIONAL DE SEGUROS SA	All risk	US$150,000.=	Yearly

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

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

Supplier	Country
DHL	COSTA RICA
IMPORTADORA DELTA SA	COSTA RICA
DR. POUL LOHMAN	GERMANY
SEAQUISST	MEXICO
IMS	GUATEMALA
BRUNNER MOND	U.S.A.
ETIQUETAS MODERNAS	MEXICO
MODERNOBLE	COSTA RICA
GRAFO PRINT	COSTA RICA
SERVICE QUALITY SERVICES	EL SALVADOR
SUPER COLOR	COSTA RICA
MASTER LITHO	COSTA RICA
RUMBO AL TRIUNFO	COSTA RICA
CORRUGADOS DEL GUARCO S.A.	COSTA RICA
RODRIGO & ALTMAN ASOCIADOS S.A.	COSTA RICA
LABORATORIO QUÍMICO LAMBDA S.A.	COSTA RICA
ACCESOS AUTOMATICOS	COSTA RICA
TEBAG INTERNACIONAL S.A.	COSTA RICA

CREDIT BUREAU COMMENTS

No negative found.

Comments :

Banking is with: BANCO DAVIVIENDA The Company is a client of the above banks. Further information was not given under bank secrecy.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

Explanation about commercial reputation

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.49
UK Pound	1	Rs.86.01
Euro	1	Rs.73.68

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.