MIRA INFORM REPORT

Report No. :	306146
Report Date :	09.02.2015

IDENTIFICATION DETAILS

Name :	FARMCHEM SA
Registered Office :	Av. Belgrano 258 Piso 6, Capital Federal. CP: (1092).
Country :	Argentina
Date of Incorporation :	05.07.1996
Legal Form :	Sociedad Anónima
Line of Business :	Manufacturing of Agricultural Chemical
No. of Employee :	11

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 – 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:	FARMCHEM SA
Trade Name:	FARMCHEM
CUIT:	30-68899750-6
Date Created:	1996
Date Incorporated:	05-07-1996
Legal Address:	Av. Belgrano 258 Piso 6, Capital Federal. CP: (1092). Argentina
Operative Address:	Av. Belgrano 258 Piso 6, Capital Federal. CP: (1092). Argentina
Telephone:	0236-4402007 / 0236-4402041
Fax:	0236-4402007
Legal Form:	Sociedad Anónima
Email:	info@farmchemsa.com.ar
Registered in:	AGENCY NRO 8 H. YRIGOYEN N° 2251 PB Y 2° PISO 1089 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.farmchemsa.com.ar
Manager:	Orlando Henrique Gouveia De Souza, General Manager
Staff:	11
Activity:	Agricultural Chemical Manufacturing
BANKS	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN THOUSANDS AR$
BANCO DE GALICIA Y BUENOS AIRES S.A.	1760,2
BANCO CREDICOOP COOPERATIVO LIMITADO	1654,7
BANCO PATAGONIA S.A.	1158,4
BANCO DE LA PROVINCIA DE BUENOS AIRES	625,5
	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
	The company started business in 1996.
PRINCIPAL ACTIVITY	The company is dedicated to the manufacture and wholesale of chemical items for the agricultural industry.
Products/Services description:	Insecticides, seed treatments, inoculants, fungicides and herbicides.
Brands:	ALLGRAM DEVAP FENIDEL FENOTRINA SILOKEEP SOWER
Sales are:	Wholesale
Clients:	Farms mainly
Suppliers:	NA
Operations area:	National and International
The company imports from	China
The company exports to	Latin America
The subject employs	11 employees
Payments:	Regular-made on a 35 day basis-monitored over the last 6 months
LOCATION
Headquarters :	Av. Belgrano 258 Piso 6, Capital Federal. CP: (1092). Argentina
Branches:	Parque Industrial Junín B. Cisaro s/n, Parque industrial Junín 6000, Junín, Provincia de Buenos Aires, Argentina
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:	$ 12.000
Shareholders %:	Enrique de Sousa Marcelo Hernán Martínez
Management:	Rodrigo De Souza, Director Orlando Henrique Gouveia De Sousa, President
Related Companies	No subsidiary companies
FINANCIAL INFORMATION
	This is a private comapny which does not make its financial figures public. The following information has been provided by our private sources.
USD 2013
Turnover	2 789 000
Net Income	139 000
Total Equity	894 400
LEGAL FILINGS
	There are no legal connected to the subject
SUMMARY
	FARMCHEM is an Argentinian company dedicated to the manufacture of chemical products. The company has 18 years of experience in the market with a smalll sized structure. It has a manufacture plant in an industrial park. The companys profitability is positive without negative.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
SUGGESTED CREDIT LINE	USD 60 000
STATUS
INTERVIEW
NAME	NA
POSITION	Receotionist
COMMENTS	We contacted the administrative offices, she confirmed address, plant and manager. She refused to provide more information.

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