MIRA INFORM REPORT

Report No. :	344251
Report Date :	15.10.2015

IDENTIFICATION DETAILS

Name :	LABORATORIO INTERNACIONAL ARGENTINO SA
Registered Office :	Avenida 12 De Octubre Nº 4444, Quilmes Oeste, Buenos Aires, 1879
Country :	Argentina
Date of Incorporation :	1939
Legal Form :	Sociedad Anónima
Line of Business :	· Develops, produces, and supplies hospital medication in Latin America, Europe, Asia, and internationally. · The company produces injectable fluids in the form of powder and solutions for injection, antiseptic liquids, oral solids in tablets, pills and capsules, syrups, drops, powders for oral suspension, and parentheral medication; and therapeutic products, such as antibiotics, anaesthetics, vitamins, oligoelements, and cardiologic drugs. Laboratorio Internacional Argentino S.A. offers anesthesiology, cardiology, infections, and general hospitalization products for institutions; and cardiology, inflammation and pain, general, infections, uso tópico, psiquiatría, diabetes, gastroenterología, alergia/corticoides, and invierno products for pharmacies.
No. of Employees :	359

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 :	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)
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. In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

In 2014, the government also took some 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 agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country’s 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government’s delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

Source : CIA

STATUTORY INFORMATION
Legal Name:	LABORATORIO INTERNACIONAL ARGENTINO SA
Trade Name:	LABORATORIO INTERNACIONAL ARGENTINO
CUIT:	30-50167689-2
Date Created:	1939
Date Incorporated:	25/10/1965
Legal Address:	12 DE OCTUBRE 4444 QUILMES OESTE 1879-BUENOS AIRES
Operative Address:	Avenida 12 De Octubre Nº 4444 Quilmes Oeste, Buenos Aires, 1879 Argentina
Telephone:	54 11 5355 9238
Fax:	54 11 5355 9238
Legal Form:	Sociedad Anónima
Email:	info@liargentino.com
Registered in:	DIV. REC. GRANDES CONTRIB. NACIONALES HIPOLITO YRIGOYEN N°370 PLANTA BAJA 1086 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.liargentino.com
Contact:	Gustavo Enrique Garrido, President
Staff:	359
Activity:	Pharmaceutical Manufacturing Industry
BANKS	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN AR$
BANCO DE GALICIA Y BUENOS AIRES S.A.	6023,6
BANCO DE LA PROVINCIA DE BUENOS AIRES	2187,7
AMERICAN EXPRESS ARGENTINA S.A.	790,7
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	455,4
BANCO COMAFI SOCIEDAD ANONIMA	53,1
	According to the classification of banking relations of Argentina, the company operates with level: 1. This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations.
	There are no rejected checks
History:
	Laboratorio Internacional Argentino S.A. was formerly known as Fada Pharma S.A. and changed its name to Laboratorio Internacional Argentino S.A. in July 2011. The company was founded in 1939 and is based in Buenos Aires, Argentina. As of 2006, Laboratorio Internacional Argentino S.A. operates as a subsidiary of CFR Pharmaceuticals S.A.
PRINCIPAL ACTIVITY
	Laboratorio Internacional Argentino S.A. develops, produces, and supplies hospital medication in Latin America, Europe, Asia, and internationally.
Products/Services description:	The company produces injectable fluids in the form of powder and solutions for injection, antiseptic liquids, oral solids in tablets, pills and capsules, syrups, drops, powders for oral suspension, and parentheral medication; and therapeutic products, such as antibiotics, anaesthetics, vitamins, oligoelements, and cardiologic drugs. Laboratorio Internacional Argentino S.A. offers anesthesiology, cardiology, infections, and general hospitalization products for institutions; and cardiology, inflammation and pain, general, infections, uso tópico, psiquiatría, diabetes, gastroenterología, alergia/corticoides, and invierno products for pharmacies.
Brands:	Some brands: ALGIOPIRET AMINOXIDIN AMOXIGRAND ANETRUM ANOTUL ANSIOBUTINA ANTIBIOCILINA ANTISPASMINA ARLAMINE ARTRIFOSAN ATENOPHARMA ATERNOMINE BESUBIAL BIABLAN BIOTIFLOX BLACNEROL BRANOLEINA BRUNAL CALMOPIRIN CARDIOPINA CEFAGRAND CIAPAR CICATRINA CIPROGRAND CIPROZITRON
Sales are:	Wholesale
Clients:	The company provides its products to medical and health care centers, clinics, hospitals, and drugstores.
	FARMINDUSTRIA SA Chile FADA PHARMA PARAGUAY SA Paraguay FADAPHARMA DEL ECUADOR SA Ecuador
Suppliers:	NA
Operations area:	National and International
The company imports from	No imports
The company exports to	Latin America
The subject employs	359 employees
Payments:	Slow but correct
LOCATION
Headquarters :	Avenida 12 De Octubre Nº 4444 Quilmes Oeste, Buenos Aires, 1879 Argentina
Branches:	Plant Pompeya Manufacture of injectable liquid; General and segregated sterile powders plant sterile powders beta-lactams. Annual production: Blisters: 55,000,000 units Prefilled syringes: 1,100,000 units Sterile Powder Carbapenems: 2,000,000 units Sterile Powder lactam No: 4,500,000 Premises surface: 2.700 m2 Semi-covered / Case: 6,300 m2 INAME and INVIMA Certification Quilmes Plant General manufacturing solid oral not sterile liquids, injectable liquids, lyophilized and creams. Annual production: Solid Oral: 140,000,000 units Sterile liquids: 2,500,000 units Injectable vials: 3,500,000 units Lyophilized Injection: 3,100,000 units Creams: 2,500,000 units Premises area: 50,000m2. Floor Area / semi covered: 21.000 m2 INAME certification Plant La Plata Suspensions and extemporaneous manufacturing Tablets lactams. Annual production: Betalactamics 55,000 and extemporaneous oral suspension solids 2,600,000 units Premises surface: 11,200 m2 Semi-covered / Case: 2700 m2 INAME certification Plant Liniers Injectable manufacturing solid beta-lactams, with annual production of 15,600,000 units Premises surface: 630 m2 Semi-covered / covered: 2,570 m2 INAME certification Pilar Plant Manufacture of injectable liquids, lyophilized injectable oncology Injectable oncology: lyophilized vials 200,000 units and 50,000 units Premises surface: 17.000 m2 Semi-covered / covered: 3,600 m2 INAME and INVIMA certification
Related Companies:
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	$ 52.494.952
Shareholders:	As of 2006, Laboratorio Internacional Argentino S.A. operates as a subsidiary of CFR Pharmaceuticals S.A. CFR Pharmaceuticals S.A. Chile
Management:	Víctor Julio Chunco, Director Agustín Eguiguren Correa, Vicepresident Gustavo Enrique Garrido, President
FINANCIAL INFORMATION
	This is a private company which does not make its financials public.
USD 2014
Sales	78 475 000
Net Income	(5 943 000)
Total Equity	45 288 600
Exports FOB DOLLAR
2014	17.894.147
2013	21.719.234
2012	19.523.585
2011	15.165.452
LEGAL FILINGS
	There are no legal for the subject
SUMMARY
	Laboratorio Internacional Argentino S.A. develops, produces, and supplies hospital medication in Latin America, Europe, Asia, and internationally. The company has a large sized structure with several plants and more than 50 years of experience in the market. According to the central bank, it shows regular payment behaviour and various open credit lines with national banks. It has been acquired by a large company headquartered in Chile, CFR Pharmaceuticals S.A. Negative fact: The company's net income for its last period is negative.  Positve Fact: It has increased twice its capital in the last 2 years.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Slow but correct
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Sofia
POSITION	Administrative
COMMENTS	She confirmed staff, managers, activity and plants.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.11
UK Pound	1	Rs.99.50
Euro	1	Rs.74.24

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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.