MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	ROMIKIN S.A

Registered Office :	Paraguay 1535, C1061ABC- Buenos Aires

Country :	Argentina

Date of Incorporation :	10.10.1986

Legal Form :	Sociedad Anónima

Line of Business :	Commerce of pharmaceutical and Veterinary products

No. of Employees :	55

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Argentina

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

ARGENTINA - ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club

Source : CIA

Location facts

Government	Republic
Currency	100.00 USD = 828.072 ARS
Economic Risk	Medium

STATUTORY INFORMATION

Order:	Romikin S.A
Address in the order:	AV.Del Libertador 1068 - 14,C1112ABN,Buenos Aires, ARGENTINA
Comments	The address provided corresponds to one branch. It is not the main office.
Legal Name:	Romikin S.A
Trade Name:	ROMIKIN
CUIT:	30611163629
Date Created:	1986
Date Incorporated:	Octubre 10th 1986
Legal Address:	Paraguay 1535, C1061ABC- Buenos Aires Argentina
Operative Address:	Paraguay 1535, C1061ABC- Buenos Aires Argentina
Telephone:	(+54) 4312-5523 / (011) 4872-1200/1201
Fax:	(+54) 4312-5523
Legal Form:	Sociedad Anónima (Public Company)
Email:	romikin@chemogroup.com
Registered in:	AGENCY N° 11 CARLOS PELLEGRINI N° 685 1° PISO 1009 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.romikin.com.ar
Manager:	Mr. Hugo Sigman
Staff:	55
Activity:	Commerce of pharmaceutical and Veterinary products
SIC Codes:	2833
NAICS Codes:	325411

BANKS

Name of the Bank:	BANCO PATAGONIA S.A
	The company currently maintains an open credit of ARS 9.715,8 0 with this institution.

Name of the Bank:	BANCO DE GALICIA Y BUENOS AIRES S.A.
	The company currently maintains an open credit of ARS 6.150,20 with this institution.

Name of the Bank:	BANCO CREDICOOP COOPERATIVO LIMITADO
	The company currently maintains an open credit of ARS 6.007,20 with this institution.

Name of the Bank:	AMERICAN EXPRESS ARGENTINA S.A.
	The company currently maintains an open credit of ARS 158,70 with this institution.

Name of the Bank:	INDUSTRIAL AND COMMERCIAL BANK OF CHINA
	The company currently maintains an open credit of ARS 33,20 with this institution.

	According to the classification of banking relations of Argentina, the company operates with the following level: 1. This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.

	There are no of rejected checks for this client

HISTORY

	ROMIKIN SA was established in Argentina in 1986. Romikin S.A. is part of the CHEMO Group. The first sales office in Spain was created by Silvia Gold and Hugo Sigman in 1977 in Barcelona. Since 2006, CHEMO begins a process of internationalization in the chemical industry, settling in Asia and Latin America: the birth of Gold Pharma (China) and taking participation in local companies Nexchem (China), Nosch (India) and Maprimed (Argentina).

PRINCIPAL ACTIVITY
	Romikin is CHEMO sales office in Argentina.It also involves Uruguay, Paraguay and Bolivia. A wholly-owned subsidiary distributes various pharmaceutical and veterinary products locally. Romikin has been carrying out a research program in oncology, together in collaboration with universities and Genetics and Biotechnology Engineering Centers in Argentina and Cuba.
Products/Services description:	Chemistry Manufacture of Genetics, IBP, steroids, and among others. Pharmaceutical Finished product: Generic and brand Develop of complete finished products. Also they offer: antiulcerosos, antivirals, antibiotics y THR insomnio, asma y EPOC. Through their corporative links, CHEMO extend their portafolio of products with the line of products biotecnologics.
Brands:	RK ROMIKIN TECNOSUMA VP VETPHARMA
Sales are:	Wholesale
Clients:	Pharmaceutical, Chemistry, Veterinary and other companies related to the company's business.
Competitors:	Drogueria Libertad S.A. Chemilab Pharmadevelop
Suppliers:	FERSINSA GB S.A DE C.V. CARRETERA SALTILLO MONTERREY KM 12.RAMOS ARIZPE COAHUILA ATN: KARINA NARRO GIL TEL FAX: 0184TEL FAX: 018444381211 FERSINSA GB S.A DE C.V CARRETERA SALTILLO MONTERREY KM 12.5 S/N MEX C.P 25900 RAMOS ARIZPE COAHUILA. R.F.C. FGB910808FU9 ATN. KARINA NARRO GIL TEL. 01844438121 Fersinsa Gb SA De Cv Carr Saltillo Mty Km 12 5 Mx 25900 Mercer Argentina (Consultancy Agency) L.N. Alem 855 Piso 12, Torre Alem Plaza CABA (C1001AAD), Argentina
Operations area:	National, Local
The company imports from	Mexico
The company does not export	Drogueria Libertad S.A. Chemilab Pharmadevelop
The subject employs	55 people
Payments:	Regular- Made on a 30 days basis- Monitored over the last 12 months
Trade References:	Mercer Argentina (Consultancy Agency) L.N. Alem 855 Piso 12, Torre Alem Plaza CABA (C1001AAD), Argentina The person contacted confirmed that Romikin S.A make payments regularly with a 30 day basis payment term and they consider them as a good client.
LOCATION
Headquarters :	Paraguay 1535, C1061ABC- Buenos Aires Argentina
Size	7,100 m²
Property:	Owned
Branches:	The company does not have subsidiaries
Business Overview:	Companies in this industry manufacture and process pharmaceutical products. Demand for pharmaceuticals is driven by the desire to cure illness and disease. The profitability of individual companies depends on their ability to discover and market new drugs. Large companies benefit from their economies of scale in research, manufacturing, and marketing. Drugs are chemicals with beneficial biological activity. Modern drug development is an outgrowth of recent research into the specific causes of illness and disease, coupled with advances in chemistry and industrial technology that allow scientists to manufacture chemicals to improve these conditions.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	No
Capital:	255,618,484.00 ARS = 30,853,159.59 USD
Shareholders %:	ROMIKIN SA is a subsidiary of Chemo S.A. Chemo Group Chemo is a Spanish-based integrated healthcare multinational, involved in different fields of the pharmaceutical business, comprising thus, all industry value chain: trading, generics (API, FDF) and branded pharmaceuticals. C/ Caleruega, 102 6ºth floor. 28033 Madrid, Spain. Tel: +34 91 302 15 60 Fax: + 34 91 766 89 63 madrid@chemogroup.com rrhh@chemogroup.com
Management:	Hugo Daniel Valerio, Director and President Jorge Rubén Castro, Director Manuel Alberto Sobrado, Director Emilio Daniel Papariello, Alternate Director
Related companies:	Chemo Ibérica Madrid Edificio Nectar c/ Quintanapalla, 2 4ºth floor. 28050 Madrid, Spain. Phone: +34 91 302 15 60 Fax: + 34 91 766 89 63 madrid@chemogroup.com rrhh@chemogroup.com Chemo Ibérica Barcelona Gran Vía Carlos III, 98 – 7ºth floor. 08028 Barcelona, Spain. Phone: +34 93 330 62 12 Fax: +34 93 330 27 62 barcelona@chemogroup.com rrhh@chemogroup.com Chemo Lugano Branch via F. Pelli, 17 6901 – Lugano, Switzerland. Phone: +41 91 973 21 01 Fax: +41-91 973 21 06 lugano@chemogroup.com Chem - East Lajos V. 48-66 Bldg "E" 5th floor 1036 Budapest, Hungary. Phone: +36-1-2 750336/37/38 Fax: +36- 1-2 753219 chemeast@chemogroup.com Chemo Indian Branch 602, 6th Floor, Mahavir Chambers Liberty Road Hyderabad - 500 029 Andhra Pradesh, India Phone/fax: + 91 40 23223605/08/09/10 Indian@chemogroup.com Chemo Asia Hua Du building, 28th floor, C left Zhang Yang road, 828-838 Shanghai R.P. of China Phone: + 86 21 50 81 23 58 + 86 21 50 81 23 68 Fax: + 86 21 50 81 22 28 asia@chemogroup.com Chemway Hua Du Mansion, 9th Floor Zhang Yang road, 828-838 Shanghai R.P. of China Phone: + 86 21 50 81 32 28 Fax:+ 86 21 50 81 22 28 asia@chemogroup.com Chemessentia Via Bovio 6 28100, Novara, Italy. Phone: + 39 0321 650255 Fax: + 39 0321 479200 info@chemessentia.it Chemo Brasil Rua Sampaio Viana Nº 253 –conj.14 and 15 São Pablo, Brasil Phone: + 55 11 3052 1063 Fax: + 55 11 3052 1064 administracao@chemodobrasil.com.br Química Sintética C/ Dulcinea, s/n 28805 Alcalá de Henares Madrid, Spain. Phone: + 34 91 889 05 77 Fax: + 34 91 880 20 86 qsintetica@chemogroup.com rrhh@chemogroup.com Industriale Chimica Via Grieg, 13 21047 Saronno (VA) – Saronno, Italy. Phone: + 39-02-964.26.411 Fax: + 39-02-962.19.97 ichimica@chemogroup.com Gold Pharma Fang Lu Cun, Hai You Zhen San Men Xian Zhe Jiang Province - P.R. China Phone: +86 576 3310686 Fax: +86 576 3310699 goldpharma@chemogroup.com Laboratorios León Farma, S.A. Polígono Industrial Navatejera C/La Vallina, s/n 24008 Navatejera. León, Spain. Phone: + 34 987 278 719 Fax: +34 987 278 524 Leonfarma@chemogroup.com rrhh@chemogroup.com Laboratorios Liconsa, S.A. Av. Miralcampo 7 Polígono Ind. de Miralcampo 19200 Azuqueca de Henares Guadalajara, Spain. Phone: + 34 949 34 97 00 Fax: + 34 949 26 68 37 + 34 949 26 97 90 liconsa@chemogroup.com rrhh@chemogroup.com Vetpharma Animal Health, S.L. Les Corts, 23 08028 Bar

FINANCIAL INFORMATION

	Chemo Group
Currency	DATE
USD	2013
Turnover	400,000,000
The cash flow is	Normal

	Romikin S.A.
Currency	DATE
USD	2013
Turnover	13,000,000
The cash flow is	Normal

	EXPORTS
	Annual FOB USD
2008	511.045
2009	184.038
2010	130.510
2011	317.652
2012	244.019
2013	6.766

LEGAL FILINGS
	The sources consulted record no detrimental legal or labor court information.

RISKMA REVIEW

RISK:

Low

SUMMARY

	ROMIKIN S.A., has 28 years of experience in the market from their offices in Argentina. There are no negative information or legal against the company. It has a small sized with the support of 55 employees and is wll established in the local market. It is part of a big Group of companies consolidated in the pharmaceutical business.
RISK INFORMATION
	Since July 30th, Argentina entered into a Selective Default. The country failed to accomplish payment to the holdouts but continues to meet other payment obligations. The country is not following the considerations made by the US Supreme Court to pay the holdouts of its debt restructuration process (2005 and 2010). The parts had the opportunity to settle an agreement with the help of a facilitator appointed by the NY Count in which the case was handled in the first place. The period of grace began in June 30th, and was accomplished in July 30th, with no positive results. The country expects to achieve an agreement with the holdouts after December 2014. That is when the RUFO clause is expired. The expiration of Rights Upon Future Offers (RUFO) will exclude the bondholders from the preceding restructuring processes (2005-2010), from claiming a better agreement, should the country had accomplished with the holdouts.
	Restriction systems for the purchase of foreign currency and restrainement of international trade. Inflation. Possible economic recession for the second half of the year.
Payments	Regular
Cash	Normal
ADVISED CREDIT	USD 300 000
Indebtedness	Low
CALL
INTERVIEWEE	NA
POSITION	Receptionist
COMMENTS	The person contacted refused to provide information. She transferred our call to the Human Resources Department but we did not receive any answer.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.43
UK Pound	1	Rs.100.23
Euro	1	Rs.80.35

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	PDT

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.