MIRA INFORM REPORT

Report Date :

01.10.2011

IDENTIFICATION DETAILS

Name :	UPM RAFLATAC PTY LTD
Registered Office :	41-45 Mills Road, Braeside, Victoria, Zip/postal code 3195
Country :	Australia
Financials (as on) :	31.12.2009
Date of Incorporation :	08.05.1985
Com. Reg. No.:	006406435
Legal Form :	Australian Proprietary Company
Line of Business :	manufacturing and distribution of paper products

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 2,000,000
Status :	Satisfactory
Payment Behaviour :	Regular
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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Australia	a1	a1

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

Bottom of Form

Identification details Bottom of Form

Verified Address

Subject name : UPM RAFLATAC PTY LTD

Business address : 41-45 Mills Road

Town : Braeside

Province : Victoria

Zip/postal code : 3195

Country : Australia

Tel : +61 3 85861700

Fax : +61 3 85861770

Website : www.upmraflatac.com

Registered address : 41-45 Mills Road

Town : Braeside

Province : Victoria

Zip/postal code : 3195

_{Country : Australia}

Summary details

Executive Summary

Date founded or registered : 08/05/1985

Legal form : Australian Proprietary Company

Chief executive : Jouni Komulainen

Issued & paid up capital : AUD 17,000,000

Sales turnover : AUD 61,449,758 (Non-consolidated 12 months, 31/12/2009)

Net income : AUD 2,440,584 (Non-consolidated 12 months, 31/12/2009)

Total fixed assets : AUD 38,194,178 (Non-consolidated 12 months, 31/12/2009)

Line of business : Manufacturing and distribution of paper products.

_{Staff employed : 95 (Subject); 21,831 (UPM Group)}

Credit risk opinion

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is booming

Management experience : Management is adequately experienced

Financial performance : Financial performance is good

Organization structure : Organizational structure is stable

Detrimental : No detrimental records found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 2,000,000}

Credit amount asked : USD 1,200,000

Comments : Larger credit can still be granted.

The Subject is well positioned in the market and the financial stability of the group is positive.

Statutory details

Registry Data

Registration date : 08/05/1985

Legal form : Australian Proprietary Company

Registration no Australian Company Number: 006406435

Registered authority : Australian Securities & Investments Commission

Fiscal/ Tax no : Australian Business Number: 93006406435

Registry status : Live/Active

Previous name RAFLATAC OCEANIA PTY LTD RAFLATAC (AUSTRALIA) PTY. LTD. ADHESIVE PAPER SUPPLIES PTY. LTD. SHEFTOLL PTY. LTD.

Management / directors

Key Management

Name : Jouni Komulainen

_{Designation : Managing Director}

Board of directors / other appointments

Appointments

Name : Raul Kristian Ikonen

Designation : Director

Appointment date : 07/04/09

Address : 999 Jianhe Lu, House 301

200336 Shanghai

China

Biography : Born on 10-06-1969 in Helsinki, Finland.

Name : Jouni Komulainen

Designation : Director

Appointment date : 07/04/09

Address : 452B Beach Road

Beaumaris, VIC 3193

Australia

Biography : Born on 10-04-1969 in Kajaani, Finland.

Name : Weng Hairong

Designation : Director

Appointment date : 07/04/09

Address : Apartment 301, No.15 Mei Long Shi Yi Cun

Xu Hui District, Shanghai 200327

China

Biography : Born on 29-07-1977 in Shanghai, China.

Name : Cathy Peng

Designation : Director

Appointment date : 31/01/10

Address : Shanghai, China

Biography : Born on 26-10-1979 in Shanghai, China.

_{Staff employed : 95 (Subject); 21,831 (UPM Group)}

Key Advisors

Auditors : PRICEWATERHOUSECOOPERS

2 Southbank Boulevard

Southbank, VIC 3006

_Australia

Share capital

Composition

Authorized Capital : AUD 17,000,000

No of shares : 17,000,000 Ordinary Shares

Share par value : AUD 1

Issued capital : AUD 17,000,000

_{Paid up capital : AUD 17,000,000}

ownership / shareholders

How listed : Full List

Composition

Shareholder name : UPM RAFLATAC OY

Address : Tesomankatu 31

33310 Tampere

Finland

No. of shares : 17,000,000 Ordinary Shares

_{% of shares : 100%}

Related companies & corporate Affiliations

Structure

Name UPM KYMMENE OYJ

Affiliation type Ultimate Holding

Company Address Eteläesplanadi 2

P.O. Box 380

FI-00101 Helsinki

Finland

Comments The company is listed on the NASDAQ OMX Helsinki stock exchange. (“UPM” or“the Group”) is a global paper and forest products group, mainly engaged in theproduction of paper, with an emphasis on the manufacture and sale of printingand writing papers. The Group consists of three Business Groups, which areEnergy and pulp, Paper, and Engineered materials. The Group’s activities arecentred in European Union countries, North and South America and Asia withproduction facilities in 15 countries.

Name UPM RAFLATAC OY

Affiliation type Parent Company

Address Tesomankatu 31

33310 Tampere

Finland

Comments The company is 100% owned by UPM Kymmene Oyj.

Name UPM-KYMMENE ASIA PACIFIC PTE. LTD.

Affiliation type Sister Company

Address 350 Orchard Road

#15-05/06 Shaw House

238868 Singapore

Singapore

Name PT. UPM RAFLATAC INDONESIA

Affiliation type Sister Company

Address Delta Silicon 1, Jalan Meranti Blok, L-2-8

Lippo Cikarang, Bekasi

Jakarta

Indonesia

Name UPM-KYMMENE INDIA PVT. LTD.

Affiliation type Sister Company

Address C-45/1, T.T.C. Industrial Area, Pawane

Off Thane-Belapur Road, Turbhe

400705 Navi Mumbai

India

Name UPM-KYMMENE JAPAN K.K.

Affiliation type Sister Company

Address Mar's Minami-Aoyama 6F

5-9-19 Minami Aoyama

Minato-ku, Tokyo 107-0062

Japan

Name UPM RAFLATAC (CHANGSHU) CO., LTD.

Affiliation type Sister Company

Address Shanghai Branch, 23rd Floor

Grand Gateway Tower 2

200030 Shanghai

China

Name UPM RAFLATAC CO., LTD.

Affiliation type Sister Company

Address 470 Moo 5 T. Phraeksamai

10280 Bangkok

Thailand

Name UPM RAFLATAC NZ LIMITED

Affiliation type Sister Company

Address 77D Carbine Road, Mt Wellington 1060

PO Box 12-125 Penrose

1064 Auckland

New Zealand

Name UPM RAFLATAC (S) PTE. LTD.

Affiliation type Sister Company

Related companies and corporate affiliations comments

Other companies of the UPM Kymmene Group are considered sister companies of the Subject.

Bank & mortgages

Bank Details

Name of bank : Australia And New Zealand Banking Group Limited

Address : Australia

Account details : Current Account

Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages : Satisfied Charges:

ASIC Charge Number: 306757

Date Registered: 07-10-1986

Charge type: Both Fixed & Floating

Date Created: 23-09-1986

Chargees Name: WESTPAC BANKING CORPORATION

ASIC Charge Number: 691982

Date Registered: 21-04-1999

Charge type: Fixed

Date Created: 18-03-1999

Chargees Name: AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

financials

Description

Source of financial statement : Commercial Registry Filings

Financial statement date : 31/12/09

Type of accounts : Full audited

Currency : Australia Dollar (AUD)

Exchange rate : 1 USD = AUD 1.02 as of 29-09-2011

Summarized Financial Information

^{Consolidation type :} Non Consolidated Non Consolidated Group Consolidated

^{Currency :} Australia Dollar (AUD) Australia Dollar (AUD) Euro (EUR)

^{Denomination :} (x1) One (x1) One (x1) One

Date of financial year end :	31/12/09	31/12/08	31/12/10
Length of accounts :	12 months	12 months	12 months
Sale turnover / Income :	61,449,758	53,667,771	8,924,000,000
Operating profit :			755,000,000
Profit before tax :	3,212,308	-720,375	635,000,000
Net income :	2,440,584	-355,871	561,000,000
Non current assets :	4,873,849	5,775,690	10,557,000,000
Current assets :	33,320,329	35,798,649	3,255,000,000
Inventories :	14,599,078	15,935,851	1,299,000,000
Total assets :	38,194,178	41,574,339	13,812,000,000
Current liabilities :	15,372,462	21,089,603	1,781,000,000
Non current liabilities :	437,966	541,570	4,922,000,000
Total liabilities :	15,810,428	21,631,173	6,703,000,000
Share equity :	22,383,750	19,943,166	7,109,000,000
Retained earning :	4,332,250	1,891,666	4,913,000,000

Operation details

Main activities : The Subject is principally engaged in manufacturing and distribution of paper products.

The Subject is part of UPM Kymmene Oyj (UPM) which is a global paper and forest products company. The Company operates in three business segments. The Energy and Pulp segment includes business areas Energy,which generates low-emission energy for the Nordic and Central European energy markets; Pulp, which produces chemical pulp for the global market,and Forest and Timber, producing sawn timber products. The Paper segment offers a range of papers, including magazine papers and newsprint as well as fine and specialty papers. The Engineered materials segment includes business areas Label, which provides

self-adhesive label materials for product and information labeling, and Plywood, which offers WISA plywood and veneer, mainly for construction and transport equipment. UPM’s activities are centered in the European Union countries and North and South America, and Asia with production facilities in 15 countries.

Brand UPM Raflatac

Purchases

International : Mainly from associated companies located in China, Malaysia,

Thailand

Sales

Local : Yes

International : Inter company export to Asia.

Property & Assets

Premises : The Subject operates from premises located at the verified heading address consisting of production facilities, administrative office and warehouse.

Branches : In addition, the Subject operates from branch offices located at:

Level 13, 124 Walker Street

2060 North Sydney, New South Wales

Australia

Tel: +61 (03) 8586 1700

3 White Avenue

5012 Athol Park, South Australia

Australia

Tel: +61-8-8447 1377

98 Ingleston Rd.

4154 Wakerley, Queensland

Australia

_{Tel: +61-7-3890 5040}

Summarized country risk

Gross Domestic Products (GDP) & Economic Overview

Central bank : Monetary Authority of Singapore

Reserve of foreign exchange & gold : US$ 233.37 billion

Gross domestic product - GDP : US$ 217.377 billion

GPP (Purchasing power parity) : 291.712 billion of International dollars

GDP per capita - current prices : US$ 42,653

GDP - composition by sector : agriculture: 0% industry: 27.6% services: 72.4%

Inflation 2008: 6.6%

2009: 0.6%

2010: 2.8%

Unemployment rate 2008 3.3%

2009 3.6%

2010 3.3%

Public debt

(General Government gross

debt as a % GDP) 2008: 42.8 %

2009: 55.4%

_{2010: 55.2%}

Government bond ratings Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

Market value of publicly traded shares US$ Billion

Largest companies in the country Wilmar International (Food, Drink & Tobacco), DBS Group

(Banking), Singapore Telecom (Telecommunications Services),

United Overseas Bank (Banking), Oversea-Chinese Banking

(Banking), Singapore Airlines (Transportation)

Trade & Competitiveness Overview

Total exports US$235.8 billion

Exports commodities machinery and equipment (including electronics), consumer

goods,pharmaceuticals and other chemicals, mineral fuels

Total imports US$219.5 billion

Imports commodities machinery and equipment, mineral fuels, chemicals, foodstuffs, consumer goods

Export - major partners Malaysia 12.9%, Hong Kong 10.5%, Indonesia 9.8%, China 9.7%, US8.9%, Japan 4.8%, Thailand 4.1%

Import - major partners Malaysia 13.1%, US 12.5%, China 12.1%, Japan 8.2%, Taiwan

5.9%,Indonesia 5.6%, South Korea 4.9%

FDI Inflows 2007: US$35,778 million

2008: US$10,912 million

_{2009: US$16,809 million}

FDI Outflows 2007: US$27,645 million

2008: US$-8,478 million

2009: US$5,979 million

Best countries for doing business : 1 out of 183 countries

Global competitiveness ranking : 3 (ranking by country on a basis of 133, the first is the best)

Country and Population Overview

Total population : 5.08 million

Total area : 699 km2

Capital : Singapore

Internet users as % of total population : 77.23%

Payment history

Purchase Term

International : L/C, Telegraphic transfer, Credit up to 180 days

Sales Term

Local : Prepayment, Cash against document, Credit up to 120 days

International : Credit 60-90 days, L/C

Trade Reference/ Payment Behaviour

Comments : As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources : Interviews and material provided by the Subject

: Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.18
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

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.