MIRA INFORM REPORT

Report No. :	343515
Report Date :	07.10.2015

IDENTIFICATION DETAILS

Name :	PROCAPS S.A.S.
Registered Office :	Calle 80 78 B 201 Barranquilla, Atlantico
Country :	Colombia
Date of Incorporation :	1977
Legal Form :	Simplified Joint Stock Company
Line of Business :	Manufacturing and commercializing company of specialized pharmaceutical forms
No. of Employee :	2 200

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

Maximum Credit Limit :	USD 250 000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Colombia	A2	A2

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

COLOMBIA ECONOMIC OVERVIEW

Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years have bolstered its ability to weather external shocks. Real GDP has grown more than 4% per year for the past four years, continuing almost a decade of strong economic performance. All three major ratings agencies have upgraded Colombia's government debt to investment grade, which helped to attract record levels of investment in 2013 and 2014, mostly in the hydrocarbons sector. Colombia depends heavily on energy and mining exports, making it vulnerable to a drop in commodity prices. Colombia is the world's fourth largest coal exporter and Latin America's fourth largest oil producer. Economic development is stymied by inadequate infrastructure, inequality, poverty, narco-trafficking and an uncertain security situation. Moreover, the unemployment rate of 9.2% in 2014 is still one of Latin America's highest. The SANTOS Administration's foreign policy has focused on bolstering Colombia's commercial ties and boosting investment at home. Colombia has signed or is negotiating Free Trade Agreements (FTA) with more than a dozen countries; the US-Colombia FTA went into force on May 2012. Colombia is also a founding member of the Pacific Alliance - a regional grouping formed in 2012 by Chile, Colombia, Mexico, and Peru to promote regional trade and economic integration. In 2013, Colombia began its ascension process to the OECD. In 2014, Colombia passed a tax reform bill to offset the lost revenue from the global drop in oil prices. The SANTOS administration is also using tax reform to help finance implementation of a peace deal, in the event FARC and the government reach an agreement in 2015. Colombian officials estimate a peace deal may bolster economic growth by almost 2%.

Source : CIA

STATUTORY INFORMATION
Legal Name:	PROCAPS S.A.S.
Trade Name:	PROCAPS
NIT:	890106527
Date Created:	1977
Date Incorporated:	1977
Legal Address:	Calle 80 78 B 201 Barranquilla, Atlantico, Colombia
Operative Address:	Calle 80 78 B 201 Barranquilla, Atlantico, Colombia
Telephone:	57 5 371 9900
Fax:	57 5 355 8422
Legal Form:	Simplified Joint Stock Company
Email:	info@procapslaboratorios.com
Registered in:	Colombia
Website:	www.procapslaboratorios.com
Contact:	RUBEN MINSKI GONTOVNIK, President
Staff:	2 200
Activity:	Pharmaceutical Manufacturing Industry
BANKS	BANCOLOMBIA
	The company does not disclose its banking information
History
	PROCAPS (Capsules Producers) was founded in the year 1977 in Barranquilla, Colombia. Press News: Colombian Procaps acquired Laboratorios Lopez Friday, May 29, 2015 Colombian Procaps Laboratories, originally from Barranquilla, acquired Laboratorios Lopez of El Salvador. The purchase was made last year, but not transcended until yesterday when the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in its report published on Investment. Through this acquisition, the Colombian took control of a company that makes a series of drugs known not only in his country but also in Central America, as Dolofín, Bacaolinita and Cerebrofós. However, the cosmetics division called Lopez Davidson always continue in Salvadoran hands.
PRINCIPAL ACTIVITY
	PROCAPS is a Colombian based manufacturing and commercializing company of specialized pharmaceutical forms, located in the city of Barranquilla.
Products/Services description:	t produces and distributes medical prescription pharmaceutical products, cosmetics, and recreational products, as well as over-the-counter mass consumption pharmaceutical products. The company provides hospital medical supplies, soft gel capsules, syrups, tablets, hard capsules, suspensions, disposable syringes and needles, injectable medicine, and creams. It also provides packing design, marketing outline for medical sales representatives, training for product managers and sales teams, and dossiers for stability reports and product samples.
Brands:	Bayer, Roche, Wyeth, Merck, Bagó, Glaxo-Smithkline and Sanofi-Aventis.
Sales are:	Wholesale
Clients:	The company serves pharmaceutical, cosmetic, and nutritional supplement industries. AKORN INC. USA UNIMED DEL PERU SA Peru PRODUCTOS FARMACEUTICOS MEDIPHARM LTDA Chile FARMINDUSTRIA SA Peru
Suppliers:	RODDOME PHARMACEUTICAL SA Ecuador
Operations area:	National and International
The company imports from	Ecuador
The company exports to	North, Central and South America
The subject employs	2 200 employees
Payments:	Regular
Partners:	Silanes S.A. Laboratories of CV,
LOCATION
Headquarters :	Calle 80 78 B 201 Barranquilla, Atlantico, Colombia
Branches:	The company has additional offices in Bogota, Bucaramanga, Cali, Medellin, and Pereira in Colombia.
Related Companies:	It has locations in the United States, Bolivia, Guatemala, Peru, the Dominican Republic, Venezuela, and Ecuador.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Shareholders:	This is a provate company. Major holders are: Ruben Minski Gontovnik Jose Minski Gontovnik Meyer Minski Gontovnik
Management:	Ruben Minski Gontovnik, President Jose Minski Gontovnik, Director Meyer Minski Gontovnik, Director Javier Ernesto Otero Arteaga, Manager Maria Isabel Meza
FINANCIAL INFORMATION
	This is a private company which does not make its financials public. The following information has been provided by our private sources:
2014 USD
Revenue	210 137 000
Net Income	427 000
Total Equity	64 232 500
LEGAL FILINGS
	There are no legal for the subject
SUMMARY
	PROCAPS is a Colombian based manufacturing and commercializing company of specialized pharmaceutical forms, located in the city of Barranquilla. The company has 38 years of experience in the market with a large sized structure. It has locations in Latin America and major clients in USA and Central America. The company's profitability is positive without negative. Procaps has recently acquired a new comapny in El Salvador.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
SUGGESTED CREDIT LINE	USD 250 000
STATUS	Active
INTERVIEW
NAME	Hector
POSITION	Administrative
COMMENTS	He confirmed address, locations, managers and ownership.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.39
UK Pound	1	Rs.99.05
Euro	1	Rs.73.19

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%)

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.