MIRA INFORM REPORT

Report No. :	344262
Report Date :	07.10.2015

IDENTIFICATION DETAILS

Name :	SM PHARMA CA
Formerly Known As :	LABORATORIOS FARMACÉUTICOS SM C.A.
Registered Office :	Avenida 59A No. 99L-20 Barrio Bolivar al Lado MTC, Circunvalación N°2, Maracaibo, Estado Zulia
Country :	Venezuela
Date of Incorporation :	15.07.1977
Legal Form :	Capital Anónimo
Line of Business :	Subject is enagged in manufacturing, packaging, marketing, importation and exportation of pharmaceuticals chemicals
No. of Employee :	60

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
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)
Venezuela	C2	C2

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

VENEZUELA - ECONOMIC OVERVIEW

Venezuela remains highly dependent on oil revenues, which account for roughly 96% of export earnings, about 40% of government revenues, and 11% of GDP. The country ended 2014 with an estimated 4% contraction in its GDP, 68.4% inflation, widespread shortages of consumer goods, and declining central bank international reserves. The International Monetary Fund forecasts that the GDP will shrink another 7% in 2015 and inflation may reach 80%. Under President Nicolas MADURO, the Venezuelan government’s response to the economic crisis has been to increase state control over the economy and blame the private sector for the shortages. The Venezuelan government has maintained strict currency controls since 2003. Currently, three official currency exchange mechanisms are in place for the sale of dollars to private sector firms and individuals, with rates based on the government's import priorities. These currency controls present significant obstacles to trade with Venezuela because importers cannot obtain sufficient dollars to purchase goods needed to maintain their operations. MADURO has used decree powers to enact legislation to deepen the state’s role as the primary buyer and marketer of imports, further tighten currency controls, cap business profits, and extend price controls. Falling oil prices since 2014 have aggravated Venezuela’s economic crisis. Insufficient access to dollars, price controls, and rigid labor regulations have led some US and multinational firms to reduce or shut down their Venezuelan operations. High costs for oil production and state oil company PDVSA’s poor cash flow have slowed investment in the petroleum sector, resulting in a decline in oil production.

Source : CIA

STATUTORY INFORMATION
Legal Name:	SM PHARMA CA
Trade Name:	SM PHARMA
RNC:	3.01017E+14
RIF:	J-07013139-0
Date Created:	1977
Date Incorporated:	15/07/1977
Legal Address:	Avenida 59A No. 99L-20 Barrio Bolivar al Lado MTC, Circunvalación N°2, Maracaibo, Estado Zulia, Venezuela
Operative Address:	Avenida 59A No. 99L-20 Barrio Bolivar al Lado MTC, Circunvalación N°2, Maracaibo, Estado Zulia, Venezuela
Telephone:	0261-7871511
Fax:	0261-7869226
Legal Form:	Capital Anónimo
Email:	corporsm@cantv.net
Registered in:	VENEZUELA
Website:	www.sm.com.ve
Contact:	Raimundo Jose Santamarta Devis, President
Staff:	60
Activity:	Manufacturing, Packaging, Marketing, Importation and Exportation of Pharmaceuticals Chemicals
BANKS
Banco Central de Venezuela
The company does not make its banking data public
HISTORY
SM Pharma CA was founded in 1977 under the name "LABORATORIOS FARMACÉUTICOS SM C.A." as a small manufacturer of OTC products, is today one of the most important laboratories in Venezuela.
Recent News:
12/05/2015
Sundde officials inspected the laboratory facilities of Pharma CA, located in Barrio Bolivar, Zulia state and could verify a batch of up and hoarded for months medication.
Among the expired medicines were vitamin B12, Fluxet, Glimepiride, Cinarizina, Diclofenac, Ketonolac, Valpresan and amikacin, among others. 1200 units of vitamin C, due ampicillins 20,000 plus medications for diabetes, hypertension and numerous bundles of medical supplies.
The company received a fine of 50 thousand tax units to the company, for violating Article 59 (hoarding) and 60 (boycott) and restricting supply, referred to in the Organic Law of Fair Prices (OLJ).
PRINCIPAL ACTIVITY
The company's main object is Manufacturing, Packaging, Marketing, Importation and Exportation of Pharmaceuticals Chemicals, Alcohols; as well as any lawful business activity that is related or not to the principal object .
Products/Services description:
Brands:	AMBROX ® SM
	AMBROX ® SM
	ALBEZOL ® SM
	AMPISOD ® SM
	AMBROX COMPUESTO ®
	AMLIP ® SM
	ASPICOR ® SM
	AZITROM ® SM
	BACIDERM ® SM
	BEDENA ® SM
	BETACORT® SM
	BENZALCOR ® SM
	BROMASED ® SM
	BRADOL ® SM
	CALCIMONIO ® SM
	CARVEL ® SM
	CLARITIC ® SM
	CITRALAMINA ® SM
	DESLORT ® SM
	DIAZEM ® SM
	DICLOFEN P ® SM
	DEXTROX ® SM
	DICLOFEN-S ® SM
	FERROLIVER ® SM
	DOMPIDOM ® SM
	FLUXET ® SM
	GLIBENIL® SM
	GLIMEPIR ® SM
	GYNO TRIZOL®
	HIDROZONA ®
	KETOPROF ®
	LEVOFLOX ®
	KETOLAC®
	LIPRESAN ®
	LORAPSED ®
	METORMIN ®
	OPRAZOL ®
	PAROXIL ®
	PIPERAZIL ®
	QUIPRESAN ®
	TERYSOL ®
	VALPRESAN ®
	TRADOL ®
	VIASIL ®
	VITNATAL ®
	VITONAL ®
Sales are:	Wholesale
Clients:	All Suply
	Drofuentes, C.A.
	Drogueria Drolanca
	Hospital Jesus GArcia Coello
	I.V.S.S.
	Sefarla, C.A.
	Sefar-Sumed
	Sufarca, C.A.
Suppliers:	TMCI PADOVAN SPA, Reserch Pharmaceutical Ltd
Operations area:	National and Internaional
The company imports from	USA, ITALY
The company exports to	North of Africa, East of Europe, South America and USA
The subject employs	60 employees (the company would have approximately 200 in whole branches).
Payments:	Unknown
LOCATION
Headquarters :	Avenida 59A No. 99L-20 Barrio Bolivar al Lado MTC, Circunvalación N°2, Maracaibo, Estado Zulia, Venezuela
Size:	15.000 mt
Branches:	The company does not have branches
Industry:	Companies in this industry manufacture and process pharmaceutical products. Major companies include Bristol-Myers Squibb, Eli Lilly, Johnson & Johnson, Merck & Co, and Pfizer (all based in the US), as well as AstraZeneca (UK), Bayer (Germany), GlaxoSmithKline (UK), Novartis (Switzerland), Roche Holding (Switzerland), and Sanofi (France).
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	N/A
Capital:	BsF. 10,000,000.00
Shareholders %:	This is a private company. Major holders are:
	Santamarta Devis, Raimundo Jose 92.72 %
	Corporacion SM, C.A. 5.97 %
	Grupo Ray, C.A. 1.31 %
Management:	German Perez, Manager
	Raimundo Jose Santamarta Devis, President
	Reinaldo Esteban Santamarta Ortega, Vicepresident
Related Companies:	No subsidiary companies
FINANCIAL INFORMATION
This is a private company which does not make its financial statements public. The following information has been provided by our private sources.
Closing Financial Analysis	2013
Company Decapitalization Process:	NO
Solvency:	1.837
Acid:	0.666
Return on Assets (ROA):	-0.021
Accounts Receivable Turnover:	174.797
Indebtedness:	0.265
Yield:	-0.027
Performance Factor:	1.276
Estimated Rate Financial Contracting:	C
Financial Capacity Estimated Contract:	3,673,575,786.80
Estimated Financial Hiring Level:	NIVEL XXXIX
LEGAL FILINGS
There are no legal found for the subject
In 2006, the government closed Flupal laboratories located in Guarico state, which was also of Raimundo Santa Marta.
SUMMARY
SM Pharma CA was founded in 1978 as a small manufacturer of OTC products , and is today a large laboratory in the country.
The company operates with well known brands and have received from the Venezuelan governement U$$ 4 million of available amount for imports with preferenced prices.
In May 2015, it was investigated from the official department for fair prices and it was found that it had several expired and accummulated medicines.
The company received a fine of 50 thousand tax units to the company, for violating Article 59 (hoarding) and 60 (boycott) and restricting supply, referred to in the Organic Law of Fair Prices (OLJ).
Considering the negative and the current situation of Venezuela concerning import taxes and blockade, we suggest working with a low Credit line.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Unknown
CASH FLOW	Normal
STATUS	Active
ENTERVIEW
NAME	Gabriel
POSITION	NA
COMMENTS	We contacted the company who confirmed address, clients and imports.

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 :	ASH

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.