MIRA INFORM REPORT

Report Date :

21.05.2013

IDENTIFICATION DETAILS

Name :	REFASA S.A.C.
Formerly Known as:	REPRESENTACIONES FARMACEUTICAS S.A.,
Registered Office :	Enrique Villanueva 105, Urb. Juan Pablo de Monterrico, Surco, Post code Lima, 33
Country :	Peru
Financials (as on) :	31.12.2010
Date of Incorporation :	09.10.1956
Com. Reg. No.:	Record 03019753, Index Card 164, Folio 255 (1956)
Legal Form :	Closely-held Corporation
Line of Business :	Import, marketing, distribution and representation of pharmaceuticals and toiletries
No. of Employees :	70

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)
Peru	A2	A2

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

peru ECONOMIC OVERVIEW

Peru's economy reflects its varied geography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%. Growth has been in the 6-9% range for the last three years, due partly to a leap in private investment, especially in the extractive sector, which accounts for more than 60% of Peru's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs subjects the economy to fluctuations in world prices. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 23 percentage points since 2002, but inequality persists and continues to pose a challenge for the new Ollanta HUMALA administration, which has championed a policy of social inclusion and a more equitable distribution of income. Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade. The US-Peru Trade Promotion Agreement entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME	REFASA S.A.C.
TRADE NAME	REFASA
TAXPAYER REGISTRATION	RUC 20100151970
MAIN ADDRESS	Enrique Villanueva 105, Urb. Juan Pablo de Monterrico, Surco,
POSTAL CODE	Lima, 33
DEPT/PROV/REGION/STATE	Lima / Lima
COUNTRY	PERU
TELEPHONE	(511) 6103100 - 2755100 - 2754111
CORPORATE E-MAIL	lvera@refasa.com.pe
WEB	www.refasa.com.pe
COMMENTS
The correct legal name is as stated in the identification field. It might be recalled that the order was forwarded without phone number to expedite the investigation. Another e-mail: fgonzales@refasa.com.pe

EXECUTIVE SUMMARY
Date of foundation	1956
Capital stock	S/.20,000,000.= Nuevos Soles
Shareholders' equity	23,037,000.00 Nuevos Soles (31DEC2010)
Annual revenues	US$ 48,221,484.38 Nuevos Soles (31DEC2012)
Profits (loss)	2,296,000.00 Nuevos Soles (31DEC2010)
permanent employees	70
Chief Executive	PORTUGAL SIGNORI, RAUL EDUARDO
Disposition	Moderate. Some data and figures were confirmed.
Payments policy	Without rating (No payment experience traced)
Number of times that this company was required: 8

LEGAL STRUCTURE
LEGAL STATUS	Closely-held Corporation
DATE OF INCORPORATION	09OCT1956	STARTING DATE	09/10/1956
PLACE OF REGISTRY	Lima
NOTARY OFFICE	Guillermo Ureta	DURATION	Indefinite
REGISTRATION	Record 03019753, Index Card 164, Folio 255 (1956)
INITIAL CAPITAL	S/.12,000,000.= Nuevos Soles
CURRENT PAID-IN CAPITAL	S/.20,000,000.= Nuevos Soles	LAST CAPITAL INCREASE	12/03/2013
SHAREHOLDERS EQUITY	23,037,000.00 Nuevos Soles (31DEC2012)
CURRENT EXCHANGE RATE (US$)	S/.2.61 per US$1.00
COMMENTS
According to SUNAT (Tax Authority), REFASA was incorporated into the scheme of tax withholding agents (R.S. 037-2002) since June 1, 2002.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
PORTUGAL SIGNORI, RAUL EDUARDO	Executive President/Rep.	60%	03/11/98
DEL RIO JIMENEZ, GUSTAVO EDUARDO	Adm. & Finance Manager
VERA CASTAÑEDA, LUIS HUMBERTO	General Accountant		07/05/03
MALDONADO AQUIJE, ZOILA GIOVANA	Representative	20%	31/08/09
PORTUGAL SIGNORI, LUIS ENRIQUE	Shareholder	20%

WHO IS WHO?

PORTUGAL SIGNORI, RAUL EDUARDO

TITLE

Executive President/Rep.

NATIONALITY

Peruvian

D.O.B.

18FEB1944

ID

DNI 09179043

CIVIL STATUS

Married to Frances de Portugal

DOMICILE

Gondomar 158-170, Urb. La Estancia, La Molina, Lima ,Lima

TELEPHONE

4359767 - 4791128

PROFESSION

Pharmaceutical Chemist

TAX ID

10091790438

FATHER'S NAME

Raul Portugal Valdivia (deceased)

BACKGROUND INFORMATION

His Tax ID No. (RUC) 10091790438 has been CANCELLED since 06.09.1998.
 
Social Health Insurance:
Insured Type: Holder
Type of Insurance: Regular
Self-Generated: 4402181PTSNR009.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
PROVEEDORES HOSPITALARIOS S.A.	Shareholder	20100157153	PERU
LABORATORIOS DANIEL A. CARRION S.A.C.	Executive President	20100284937	PERU
PUBLIMEDIC S.A.C.	Executive President	20101144462	PERU
ABBA S.A.C.	President	20172899260	PERU
LOANDRE S.A.	General Manager	20101645160	PERU

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
HERPOR REPRESENTACIONES SRL (BAJA DEFINITIVA)	Manager		1998

DEL RIO JIMENEZ, GUSTAVO EDUARDO

TITLE

Adm. & Finance Manager

NATIONALITY

Peruvian

D.O.B.

15OCT1961

ID

DNI 08804919

BACKGROUND INFORMATION

He has no Tax ID, according to SUNAT.
 
Social Health Insurance:
Insured Type: Holder
Type of Insurance: Regular
Self-Generated: 6110151ROJEG004

VERA CASTAÑEDA, LUIS HUMBERTO

TITLE

General Accountant

NATIONALITY

Peruvian

D.O.B.

17AUG1958

ID

DNI 06175312

DOMICILE

Buen Retiro 232, Urb. Monterrico Chico (Casa 7 Alt. cuadras 10 y 11 Av. El Polo) Surco, Lima

PROFESSION

Public Accountant

TAX ID

10061753121

BACKGROUND INFORMATION

His RUC (Tax ID) is in effect, was issued on 14/06/1994 to devote as Natural Person Without Business to accounting activities.
 
Social Health Insurance:
Insured Type: Holder
Type of Insurance: Regular
Self-Generated: 5808171VACTL003.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
PUBLIMEDIC S.A.C.	Representative	20101144462	PERU
LABORATORIOS DANIEL A. CARRION S.A.C.	General Manager	20100284937	PERU

MALDONADO AQUIJE, ZOILA GIOVANA

TITLE

Representative

NATIONALITY

Peruvian

D.O.B.

02FEB1961

ID

DNI 06744049

TAX ID

10067440493

BACKGROUND INFORMATION

Social Health Insurance:
Insured Type: Holder
Type of Insurance: Regular
Self-Generated: 6102020MDAIZ001.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LABORATORIOS DANIEL A. CARRION S.A.C.	Representative	20100284937	PERU

PORTUGAL SIGNORI, LUIS ENRIQUE

TITLE

Shareholder

NATIONALITY

Peruvian

D.O.B.

14JUL1946

ID

DNI 08859534

TAX ID

10088595349

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
LABORATORIOS DANIEL A. CARRION S.A.C.		20100284937	PERU

PARTICIPATED IN

COMPANY	TITLE	COUNTRY	YEAR / REF
HERPOR REPRESENTACIONES SRL (BAJA DEFINITIVA)
REFASA S.A.C.		PERU	2011

BUSINESS HISTORY

It was formed on 09.10.1956 under the name REPRESENTACIONES FARMACEUTICAS S.A., and later, in June 1998, it adopted the current name REFASA S.A.C., before Anibal Corvetto, Notary Public.
 
It was founded by Raul Portugal Valdivia, who died recently on 21/07/2011, who was the founder of all the group companies.
 
This Company was established as an importer of medicines, representing initially important Japanese and European laboratories.
Over the years and due to changes in industrial legislation, it was forced to acquire an industrial plant to manufacture products that were imported. For that reason, in 1968, it acquired Laboratorios D.A. Carrión S.A., which is a national laboratory where several pharmaceuticals sold by Refasa S.A.C. are produced today.
 
Its production plant, Laboratorios D.A. Carrión S.A.C., currently has International Certifications ISO 9001:2008 and ISO 1400:2004
 
REAFASA has a stake in LABORATORIOS DANIEL A. CARRION S.A.C. and has invested for S/.5,475,000.= Nuevos Soles.

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
ABBA S.A.C.	PERU	(AC) 20172899260	Related
LABORATORIOS DANIEL A. CARRION S.A.C.	PERU	(AC) 20100284937	Related
PUBLIMEDIC S.A.C.	PERU	20101144462	Related

BUSINESS

SIC Classification
5 1 - WHOLESALE TRADE-NON-DURABLE GOODS. (Papers, Perfumes, drugs, hardware, Groceries, apparel, food, dairy products, beverages.)

Main activity

Import, marketing, distribution and representation of pharmaceuticals and toiletries.
Manufacture of pharmaceutical products through third parties.

O P E R A T I O N S

Import

Yes

Country

Argentina, Austria, Belgium, Brazil, China, Colombia, France, Germany, India, Italy, Japan, Korea, Mexico, Spain, Switzerland, USA

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	511,504.00
2012	2,179,753.00
2011	2,169,164.00
2010	1,543,007.00
2009	1,622,946.00
2008	1,840,802.00

Export

Yes

COUNTRY

Argentina, Colombia and Venezuela.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2013	12,150.00
2012	2,850.00
2011	197,834.00
2010	32,100.00
2008	100,439.00

% CASH SALES / METHOD

25%

% Credit SALES / Terms

75% (Terms 30,40,45 days)

% Ventas exterior (Paises)

25%

% DOMESTIC PURCHASES

5%

% FOREIGN PURCHASES

95%

SELLING TerritorY

Domestic market - 75%

EMPLOYEES

70

LOCATION
PREMISES	Rented
AREA	800 m2
OTHER PREMISES	Headquarters, administrative and commercial offices are located at the above address. Premises are owned by the Company C.E.O Formerly, they were located at Callee Uno y Morro Solar A, Int.7, Urb. Juan Pablo, San Borja, Lima. No other facilities have been found.

FINANCIAL INFORMATION

Disposition

B: Moderate. Some data and figures were confirmed.

Interviewee(s)

Mr. Francis Gonzales

Position(s)

Accounting Assistant

Information provided

He very kindly provided general and operational data of the company.
He stated that the company is undergoing a transition phase, as it has been acquired by the multinational EUROPHARMA.
Stated their approximate sales revenue during the year 2012 amounted to S/.123,447,000. = Nuevos Soles. He added that sales are increasing every year as there is better marketing of product lines and greater market share.
With regards to our request for more financial figures , he stated that information can only be delivered by the general accountant, to whom we sent a letter but no reply was received to date.
 
From previous research we have a summary of their Balance Sheet at 31/12/2010, expressed in Nuevos Soles, which we include in report for your reference.

BALANCE SHEET
Balance sheet date	31DEC2010
Type of balance sheet	Annual
Period	12 months
Currency	Nuevos Soles
Exchange rate per US$	2.8
A S S E T S
Current Assetsd	22,327,000.00
Others	8,970,000.00
Total Assets	31,297,000.00
L I A B I L I T I E S
Current liabilities	8,215,000.00
Long term	45,000.00
TOTAL LIABILITIES	8,260,000.00
S H A R E H O L D E R S'  E Q U I T Y
Total shareholders equity	23,037,000.00
Total Liab. / Sh. equity	31,297,000.00
Sales	33,807,000.00
Profit (Loss)	2,296,000.00

R A T I O
Liquidity ratio	2.72	Current assets / Current liabilities
Debt-to-equity ratio	280.43 %	(Shareholders' equity / Current liabilities %)
Profitability margin	6.79 %	(Profits / Sales %)
Working capital	14,112,000.00	(Current assets - Current liabilities)

FINANCIAL SITUATION

B: FAIR
Although we have no more updated balance sheets to enable us to give an accurate opinion of their results, it is important to mention that according to specialized sources no negative backgrounds against this company are found.
 
Further their credit experience with financial sector entities is rated as Normal, as reported by the Superintendency of Banking and Insurance.

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

Date	Sales (US$)
31/12/2012	48,221,484.38

INSURANCE

COMPANY	AGAINST	EXPIRATION
RIMAC INTERNACIONAL CIA.DE SEG.Y REASEG.	All risk	2011

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

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

Supplier	Country
DESPACHOS ADUANALES SA	PERU
AG AD QUELOPANA Y CABALLERO SAC	PERU
TERMOENCOGIBLES DEL PERÚ S.A.	PERU
UNIGRAF S.A.C.	PERU
ANDENEX CHEMIE	GERMANY
ARCO PHARMA	FRANCE
BRACCO INDUSTRIA QUIMICA	ITALY
TMP TECHOILOGIES MACHINES PRODUCTS	ITALY
TAKEDA CHEMICAL INDUSTRIES	JAPAN
RHENOCHEM	SWITZERLAND

CREDIT BUREAU COMMENTS

So far, no protested documents, NSF checks, cancelled accounts or lawsuits have been reported. Found neither compulsory collection debts, nor payment failures against the State. Consulted suppliers have not responded to our request for references.

SUPERINTENDENCY OF BANK & INSURANCE (SBS)

Debt structure for bank. SBS Latest Consolidated Credit Report as of : 30/03/2013

Bank	Debt Rating (*) See caption	Current Debt
		DOMESTIC CURRENCY	FOREIGN CURRENCY
SCOTIABANK	NORMAL	2,478,423.00
INTERBANK	NORMAL	1,601,193.00
CONTINENTAL	NORMAL	133,190.00
Total		4,212,806.00
Guarantees		4,031,095.00

CONSOLIDATED DEBT (ALL BANKS)                              ENTITIES NUMBER : 3                           30/03/2013

		Domestic Currency	Foreign Currency
FINANCIAL LEASING	:	76,367.00
CREDIT CARDS	:	2,228.00
OTHER INDIRECT CONTINGENT DEBTS	:	4,134,211.00
		--------------------------------------------	--------------------------------------------
TOTAL DEBT	:	4,212,806.00
		=========================	=========================

Comments :

The SBS has rated the Company 100% NORMAL since 31/12/2010.

RATING DESCRIPTION ACCORDING TO THE SBS (Caption)
Normal	Good Finantial Situation, Prompt payments, Consistent information. Increasing Trend, Creditworthy.
Potential Problem	Satisfactory Finantial Situation but cash flow can be weak. Irregular payments. Irregular Trend.
Deficient	Fair Finantial Situation, cash problems, profits shortage, delayed and overdue payments.
Doubtful	Heavy Finantial Situation, liquidity shotage, notorious delayed payments, Judicial Collection, Bad Management.
Loss	Bad Finantial Situation, Insufficient funds, declared bankruptcy, debt default.

GENERAL INFORMATION

REPUTATION

NOTHING AGAINST COMPANY

Explanation about commercial reputation

PRESS RELEASES

PRESS RELEASE - 15-03-2012
 
Eurofarma buys Refasa
 
The Brazilian lab Eurofarma continues to expand in Latin America.
 
After acquiring the laboratory Quesada in Argentina, now it was Peru's turn, where it is landing through Refasa buying.
 
This was made by a payment that was around US$ 25 million, according to Pharmabiz, which publishes this exclusive scoop.
 
Eurofarma has advanced aggressively by the continent. It arrived in Colombia in May 2012 through the purchase of a plant to U.S. lab Merck.
 
Also installed in Chile in December 2010 as a partner of Farmaindustria and Volta.
 
While in Uruguay acquired 90% of the laboratory Gaultier, later completed 100%.
 
Speaking to the magazine "América Economía" the Eurofarma export director, Wesley Pontes said "In Latin America there are a large number of family businesses with succession issues and would be good acquisition opportunities."
 
This strategy used for dealing with the Argentine lab Quesada in 2009. In this country is raising its own plant that will be finished between this year and the next.
 
According to market audits, Refasa ranks 20th in Peru and with revenues of about U.S. $ 12 million a year

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.04
UK Pound	1	Rs.83.61
Euro	1	Rs.70.68

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.