MIRA INFORM REPORT

Report Date :

13.09.2014

IDENTIFICATION DETAILS

Name :	FORTBENTON CO LABORATORIES S.A.

Registered Office :	Escalada Av 133, Capital Federal (1407), Capital Federal

Country :	Argentina

Date of Incorporation :	31.10.1957

Legal Form :	Sociedad Anónima

Line of Business :	Manufacturing of Pharmaceutical/ Medicine

No of Employees :	90

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

INFORMACION LEGAL

Order:	FORTBENTON CO LABORATORIES S.A.
Address in the order:	ESCALADA 133 C1407LDC CDAD, AUT. BUENOS AIRES BUENOS AIREES ARGENTINA.
Legal Name:	FORTBENTON CO LABORATORIES S A
Trade Name:	FORTBENTON
ID:	30-50411342-2
Date Created:	1957
Date Incorporated:	October 31, 1957
Legal Address:	Escalada Av 133, Capital Federal (1407), Capital Federal, Argentina
Operative Address:	Escalada Av 133, Capital Federal (1407), Capital Federal, Argentina
Telephone:	011 4635-3019
Fax:	011 4682-3098
Legal Form:	Sociedad Anónima
Email:	informacion@fortbenton.com.ar
Registered in:	Agency no. 4 AV. RIVADAVIA N° 10910 1408 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.fortbentonlab.com.ar
Manager:	Alfredo Oscar Gómez
Staff:	90
Activity:	Pharmaceutical/Medicine Manufacturing
SIC Codes:	2833
	325411

BANKS

Name of the Bank:	AMERICAN EXPRESS ARGENTINA S.A.
	The company currently maintains an open credit of ARS 33, 00 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

The company started business in 1957.

The company was fined 3 years ago for throwing toxic waste into the river from Buenos Aires.

MAIN ACTIVITY

	Fortbenton is a pharmaceutical company dedicated to the import, production and distribution of drugs in the following branches: Dermatology Medical Clinic Pediatrics Urology Otolaryngology Andrology
Products/Services:	Aloebel Cream Aloebel Emulsion Aloebel Shampoo Altus Andropel Antifungal Cream Antifungal Polvo Antifungal Spray Basebel Bioqueratin Cistalgina Cistefort Duo Cistefort Jarabe 4% Cistimax Comprimidos Cistimax Gel Ungueal Cistimax Loción Cuta Desaler Desaler cort Doxasin Dronat Fertilix Fertilix Plus Fortcinolona Fortcinolona 40 Hekabetol I.U. 400 Cápsulas I.U. 400 Comprimidos I.U. 400 Jarabe I.U. 800 Cápsulas I.U. 800 Comprimidos Kitacne Lisaler Lisaler Beta Lisaler Beta Jarabe Lisaler Jarabe Lorabrox Lukasma Medrocil 1% - 2% Meniex 8 - 16 - 24 Metason Crema Metason Nasal - Spray Metason Nasal Mini - Spray Miotonachol Mupirox Nasal Mupirox Unguento Neobitiol pie Neobitiol Spray Neoblanc Crema Orobiotic Otopreven Paracetamol FB Pentavir Pentavir Crema Perclin Perfracort Prootocipro FB PruriGel Quadion Crema Quadion Shampoo Solenil 65/100 Plus Solenil Cool Gel Solenil FPS 15 Solenil Pantalla Física Solenil Post Solar Sorial Sorsis Beta Sorsis Crema Sorsis Shampoo Teraquin Teraquin Dolo Urototal Ylox Ylox 5 %
Trademarks:	Some of their registered trademarks: ACETASOL ACITRETINA DIET 25 FORTBENTON ACNESAN ACUTIS ANACNHIL L FB FORTBENTON APOFORT APOX ASMASIN AVARIC BENTOPHITO BENTOPKITO BIFENA BILOVIT BRAINPLUS BROXOLOR CAEBIOTIC CALFIX CERHI CLOPIFORT CLOVEDERM COCODIEZ CONDILOX CORTIFORT CORTISIL CORTIXIL CUTA FB DESALER DESALER B DESQUAMEX DETERNOIL DIBESTROL DILOSYN BETOL FERTILIX FERTIMAX FLEBOTRIN
Sales:	Wholesale
Clients:	Clinical Instituions Pharmacies Health Institutions Drugstores Public Hospitals Some of their foreign clients: JOSE RUOTI Y CIA. S.A., Paraguay
Competitors:	Baliarda Sa Quimica Montpellier Ivax Argentina Sa
Suppliers:	C.I. FARMACAPSULAS S.A., Colombia WITECO COMERCIAL INDUSTRIAL Carlos Pellegrini 858, 2°G (B1708DWL) Morón, Buenos Aires Epsilon Staff Consulting Marañon 2450 (B1714NHD) Ituzaingó, Buenos Aires, Argentina Ttolumec Grinovero SRL Crisologo Larralde 4654 Villa Dominico – Avellaneda - Buenos Aires - Argentina
Operations area:	National & International
The company imports from:	Colombia
The company exports to:	Paraguay, Latin America
The company employs:	90 employees
Payments:	Regular-made on a 30-45 day basis-monitored over the last 6 months
Trade References:	WITECO COMERCIAL INDUSTRIAL Carlos Pellegrini 858, 2°G (B1708DWL) Morón, Buenos Aires CONTACT: Daniel Padua POSITION: Owner of the company COMMENTS: The person contacted confirmed that Fortbenton Co. Laboratoties S.A is a client and they provide good comments about them. They work with payment terms of 30 days and issue invoices for AR$2.000-3.000 monthly. They confirmed they have never had any problems with them.

LOCATION

Headquarters:

Escalada Av 133, Capital Federal (1407), Capital Federal, Argentina

Branches:

The company does not have branches

Industry:

The structure and composition of the Argentina national accounts show that the pharmaceutical industry and pharmaceutical and chemical industry account for about 7% of the total value added of the industry, and 4.4% on a gross value of production.

Overall employment of personnel in the industry both in direct labor and indirect labor is around 27,000 and 100,000 people, respectively. The proportion of technicians and university graduates from different professions is relatively higher than in other areas, prompting the industry to consider implementing corporate policies that encourage the repatriation of Argentine scientists. This action, which already has several backgrounds, would provide high training and experience of human resources, and emigrated gained experience in countries of the developed world.

Most of the local market is supplied by national laboratories. These account for 57% of domestic sales.

However, there is an important difference between local and international relative to the share of imports in total sales of each segment to the domestic market laboratories.

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:	NO
Capital:	AR$ 1 210 000
Value:	AR$ 100
Shareholders %:	This is a private company. Despite our long search, we could not confirm the main shareholders.
Management:	Alfredo Oscar Gómez Grito, President Laura Elena Palisa Mujica, Vicepresident Ezequiel Gomez, Director Jorge Carabajal, Alternate Director Luis Alfredo Ortega, Alternate Director Dra Paula Delgado, Technician
Related companies:	The company does not have subsidiaries.

FINANCIAL INFORMATION

This is a private company which does not make its financial figures public. The information mentioned below has been provided by our outside sources.

Currency	DATE
USD	2013
Turnover	12 000 000
The cash flow is	Normal

Currency	DATE
USD	2012
Turnover	15 000 000
The cash flow is	Normal

LEGAL FILINGS

Mansilla, Carlos Eugenio c/Fortbenton Co. Laboratories SA y otros s/despido
06/03/2014
Matter: Labour

The above mentioned legal record has not had any incfluence on the company's financials.

FINAL REVIEW

Fortbenton is a pharmaceutical company with 57 years of experience in the national market.

The company has a medium sized structure with the support of 90 employees.

It is active in the National Registry of Companies and presents no negative.

According to the Argentinian Central Bank, the total debt of the company is of AR$ 33,00 and shows a good payment behaviour, with the highest banking classification.

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.
Debtedness	Controlled
Cash Flow	Normal

INTERVIEW

NAME	Karina
POSITION	Marketing
COMMENTS	The person contacted confirmed address. She refused to provide us with any other detail about the company for private reasons.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.84
UK Pound	1	Rs.98.73
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	DIV/ SUB

Report Prepared by :	NIT

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.