MIRA INFORM REPORT

Report No. :	306114
Report Date :	09.02.2015

IDENTIFICATION DETAILS

Name :	CHEMOTECNICA S.A.
Registered Office :	Juan G. Gonzalez Y Aragon 207 Carlos Spegazzini 1812-Buenos Aires
Country :	Argentina
Date of Incorporation :	01.01.1943
Legal Form :	Sociedad Anónima
Line of Business :	Manufacture of Pharmaceutical Products.
No. of Employee :	180

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES :

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ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Argentina	C1	C1

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

Company name and address

Legal Name:	CHEMOTECNICA S.A.
Trade Name:	CHEMOTECNICA
CUIT:	30-52194421-4
Date Created:	1943
Date Incorporated:	01-01-1943
Legal Address:	JUAN G. GONZALEZ Y ARAGON 207 CARLOS SPEGAZZINI 1812-BUENOS AIRES
Operative Address:	González y Aragón nro. 207 Esq. Marconi Ruta 205 km 43.5 (B1812EIE) Carlos Spegazzini Provincia de Buenos Aires, Argentina
Telephone:	0227-4429000
Fax:	0800-3337670
Legal Form:	Sociedad Anónima
Email:	info@chemotecnica.com
Registered in:	AGENCY EXPORTADORES SAN MARTIN N° 444 1004 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.chemotecnica.com
Manager:	Alejandro Golfari
Staff:	180
Activity:	Phamraceutcal Products Manufacture Industry
BANKS	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN THOUSANDS AR$
HSBC BANK ARGENTINA S.A.	25489,3
BANCO SUPERVIELLE S.A.	18273,1
BANCO DE LA NACION ARGENTINA	11749,5
BANCO CREDICOOP COOPERATIVO LIMITADO	8225,5
BANCO INDUSTRIAL	7363,8
BANCO DE LA PROVINCIA DE BUENOS AIRES	5783,7
BANCO ITAU ARGENTINA S.A.	3799,9
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	3606,8
BANCO DE GALICIA Y BUENOS AIRES S.A.	3443,8
BANCO DE LA CIUDAD DE BUENOS AIRES	3395,6
BANCO MARIVA S.A.	2921,5
BANCO PATAGONIA S.A.	2035
BBVA BANCO FRANCES S.A.	1562,7
BANCO SANTANDER RIO S.A.	1324,8
AMERICAN EXPRESS ARGENTINA S.A.	591,5
BANCO COMAFI SOCIEDAD ANONIMA	77
YPF S.A.	46,2
	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 rejected checks for the company.
HISTORY
	In 1943 CHEMOTECNICA was founded, its main objective was the manufacture of foodstuffs for human health and products for agriculture. Years later it incorporated adhesives products to its portfolio. In 1988 Chemotécnica creates its international division. The company was acquired by Monsanto Company in 1997.
PRINCIPAL ACTIVITY	The company is dedicated to the import of raw material and manufacture of pharmaceutical products, adhesives and items for the agricultutal industry.
Products/Services description:	Synthesis of active ingredients for Animal Health, Crop Protection and Environmental Health. Formulation of insecticides, herbicides and fungicides for crop protection. Formulation of antiparasitic for Animal Health. Formulation of insecticides for Environmental Health. Preparation of vinyl adhesives and contact. active ingredients fungicides insecticides acaricides Stored grain herbicides Adjuvants and ph Regulators Seed treatment Rodent Control Control birds Light Traps Equipments you mosquicidas stored grain larvicides pheromones Linea Home & Garden Rural hygiene
Brands:	Some of their various trademarks: 440 CHEMOTECNICA ACADEMIX ADI-R AFLUS AGUTRIN AJOBAR ALERTA ALFACIP ALGODINE ARBOLITO ASI MAX ASI PEXIN ASIFIN ASIMETRIN 5
Sales are:	Wholesale
Clients:
Suppliers:
Operations area:	National and International
The company imports from
The company exports to	20 countries
The subject employs	180 Employees
Payments:	Regular-made on a 35 day basis-monitored over the last 6 months
LOCATION
Headquarters :	González y Aragón nro. 207 Esq. Marconi Ruta 205 km 43.5 (B1812EIE) Carlos Spegazzini Provincia de Buenos Aires, Argentina
Branches:	The company does not have branches
Industry:	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. Small companies can compete effectively by specializing in drugs that target one or two specific ailments and by partnering with larger drugmakers. 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:	$ 1.000.000
Shareholders %:	This is a private company, Monsanto Compnay acquired most shares in 1997. It used to be 100% owned by the Gold family.
	Monsanto, an agricultural and biotechnology company based in St. Louis, said Chemotecnica Sintyal has total billings of $110 million in veterinary, agrochemicals and adhesives sectors and annual pharmaceutical sales of about $60 million. Terms of the transaction weren't disclosed.
Management:	Alejandro Golfari, General Manager Silvio Ces, Manager Alejandro Sanchez Perez, Sales Manager
Related Companies	No subsidiary companies
FINANCIAL INFORMATION
	This is a private comapny which does not make its financial figures public.
USD
Turnover	40 000 000
The cash flow is	Normal
Exports Annual FOB USD
2014	1.542.162
2013	4.483.460
2012	4.122.869
2011	6.523.444
2010	8.127.288
LEGAL FILINGS
	There are no legal connected to the subject
SUMMARY
	This is a pharmaceutical products and agricultural chemicals manufacturer. The company has more than 60 years of experience in the market with a medium sized structure. It was acquired i 1997 by Monsanto, a huge chemical company manufacturer worldwide. The company is active with no negative and high revenues. However, the companys exports have been decreasing in the last years and the companys credit lines with local banks are quite high. We suggest working with medium credit line.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	SLOW BUT CORRECT
CASH FLOW	Normal
STATUS	Active
ENTERVIEW
NAME	Susana
POSITION	Administrative
COMMENTS	She confirmed address, managers and employees.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.74
UK Pound	1	Rs.94.65
Euro	1	Rs.70.79

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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